Multifamily Credit Risk Transfer

Fannie Mae partners with private sources of capital to transfer mortgage credit risk, develop broad and liquid markets, and reduce taxpayer risk.

The Multifamily team uses an industry-leading framework to manage credit risk over the full loan lifecycle, from underwriting to maturity/disposition:

Underwriting Management
We set prudent underwriting standards and regularly reevaluate them to address credit tolerance relative to current market conditions.

Performance Management
We review credit decisions to confirm that credit risk is appropriately managed during loan underwriting, then monitor performance throughout the loan term.

Mitigation Strategies
Our loss mitigation teams aim to identify risks early and develop strategies to minimize potential losses.

0.56% of our multifamily book of business was seriously delinquent as of Q3 2024.

See Multifamily's industry-leading framework

Click here to view an overview of how Multifamily manages credit risk.

mf industry leading framework

 


Educational Videos

Click on the videos below to learn more about the segments of Fannie Mae's Multifamily business.

Multifamily's credit risk transfer vehicles