Fannie Mae buys home loans from banks, bundles them into mortgage-backed securities, and sells those to investors—like a factory turning individual car loans into tradeable bond packages.
Money comes from fees on single-family and multifamily mortgage securitization, plus interest earned on loans it holds. Annual net income was USD 14.36B in 2025, with gross margins around 97%, though quarterly margins dipped oddly in Q2 2026.
Government sponsorship gives it near-exclusive access to cheaper capital and a dominant role in U.S. housing finance, hard for private players like Rocket Mortgage or PennyMac to replicate. But political pressure to return profits to taxpayers and potential pr
Key events, in time order
Net income $4.0B; EPS beats Zacks consensus, up from $0.57 year ago
Prominent investor discloses position and valuation view, corroborated by Bloomberg risk report
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