Connecticut Avenue Securities Investor Presentation
Our Credit Risk Management Approach
Lender quality
■Lenders undergo a
rigorous approval
process prior to doing
business with Fannie
Mae and must meet
ongoing net worth and
business operational
requirements.
■Lenders are subject to
ongoing oversight
through comprehensive
operational reviews to
assess the effectiveness
of their quality control
procedures.
Loan quality
Loans must be
underwritten in
accordance with Fannie
Mae guidelines.
90% (1) of loans that we
acquire are evaluated
through Desktop
Underwriter (DU), the
industry's most widely
used automated
underwriting system.
■100% of Fannie Mae's
single family and
condominium
appraisals are assessed
through Collateral
Underwriter (CU), our
proprietary appraisal
risk assessment tool.
Servicing quality
■Fannie Mae sets loan
servicing standards, acts
as Master Servicer, and
provides oversight of
loan servicers.
■We set standards for loss
mitigation and borrower
workout options. Our
proprietary servicing
tool, Servicing
Management Default
UnderwriterTM (SMDU™),
automates our servicing
policies.
Property
management
■ We manage all property
management and
disposition in house,
managing one of the
industry's largest real-
estate owned portfolios -
disposing of over 1.8
million homes since
2009.
■ Our strategy is to sell
non-distressed homes to
owner-occupants,
helping to maximize
sales proceeds, stabilize
neighborhoods, and
preserve the value of our
guaranty book.
(1)
Approximate
8 2021 Fannie Mae.View entire presentation