In 1938, Congress created Fannie Mae during the Great Depression as part of the New Deal to address a critical gap in American life: the lack of reliable, affordable mortgage financing. Before Fannie Mae, home loans were expensive, unpredictable, and often out of reach for most Americans. The organization transformed this landscape by introducing and popularizing the 30-year, fixed-rate mortgage - a revolutionary product that gave families stable monthly payments and the predictability needed to build wealth through homeownership. This innovation became what's now known as the 'American Mortgage,' turning homeownership from a privilege into an achievable dream for millions.
Today, Fannie Mae stands as a foundational pillar of the U.S. housing finance system, facilitating access to affordable housing across the country. The organization purchases mortgages from lenders, bundles them into mortgage-backed securities, and sells them to investors - creating a continuous flow of capital that enables lenders to offer more loans. In 2025 alone, Fannie Mae provided $409 billion in funding to support the U.S. housing market, helping approximately 1.5 million households buy, refinance, or rent homes. Beyond single-family mortgages, Fannie Mae's Multifamily business finances quality, affordable rental housing through innovative programs like the Delegated Underwriting and Servicing (DUS) model and Low-Income Housing Tax Credit investments, ensuring that rental housing remains accessible in every market, every day.
