Products and Services for the Mortgage and Reverse Mortgage Industry

Fannie Mae, originally the Federal National Mortgage Association, is a government chartered mortgage broker, technically termed a government-sponsored enterprise (GSE), which has become a cornerstone of the U.S. housing industry.

Fannie Mae Loans and the New Deal

In the late 1930s many Americans could not afford a home and many others were on the brink of foreclosure. Franklin Delano Roosevelt, of New Deal fame, was instrumental in creating Fannie Mae. At that time the new organization was a government subsidized agency entrusted with creating a financial backbone that could adequately support the housing industry. A core mission: to make homeownership possible and affordable for every American.

Since that time Fannie Mae has migrated from a government subsidized to a government chartered corporation supported by a hefty foundation of private shareholders.

Fannie Mae Reverse Mortgages

In the secondary mortgage market and specifically the reverse mortgage business Fannie Mae is a trusted name. The company serves as a clearinghouse for its proprietary reverse mortgage, the Fannie Mae Home Keeper and provides the financial support for the federally insured HECM.

The Home Keeper product is common in many lenders’ suites of products, and a reliable alternative to the HUD Home Equity Conversion Mortgage (HECM).

Features of the Home Keeper Reverse Mortgage

Fannie Mae’s Home Keeper reverse mortgage is similar in many ways to the HUD HECM, but with a few more flexible benefits.

In contrast to the HUD HECM the Home Keeper offers:

• Significantly higher borrowing limit—not based on the borrower’s county FHA limit.
• Allows a senior homeowner to leverage equity to purchase a new home (Home Keeper for Home Purchase).
• Available for single-family home and condo owners.

Because Fannie Mae is a secondary market lender borrowers do not apply to Fannie Mae for the Home Keeper, but to mortgage lenders that provide the product.

Other Fannie Mae Products and Services

But the Home Keeper reverse mortgage and the HECM constitute only a small fraction of the products and services provided by Fannie Mae. The corporation also provides:

• Single-family mortgage products, including jumbo-conforming mortgages, streamlined refinance mortgages, and a laundry list of fixed and ARM mortgages.
• Multi-family mortgage products and services
• Lender guidelines and educational materials
• Consumer informational materials
• Applications and loan documents for lenders

The Fannie Mae Home Keeper reverse mortgage is available from lenders across the nation.