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Introduction to Fannie Mae Debt Securities
For more than 40 years, Fannie Mae's mission has been to provide products and services that increase the availability and the affordability of housing for low-, moderate-, and middle-income Americans. The corporation accomplishes this mission by operating in the secondary rather than the primary mortgage market. Fannie Mae purchases mortgage loans from mortgage lenders such as mortgage companies, savings institutions, credit unions, and commercial banks, thereby replenishing those institutions' supply of mortgage funds. Fannie Mae either packages these loans into Mortgage-Backed Securities (MBS), which it guarantees for full and timely payment of principal and interest, or purchases these loans for cash and retains the mortgages in its portfolio.
Fannie Mae obtains the funds to finance its mortgage purchases and other business activities by selling debt securities in the international capital markets. Fannie Mae is one of the world's largest issuers of debt securities. As Fannie Mae's funding needs are so significant and constant, it is important for the corporation to consistently deliver value to its investors by creating securities that meet investors' needs and adapting its funding approaches to meet the evolving demands of the marketplace. Fannie Mae puts considerable effort into maintaining the integrity of the markets in which its debt is traded.
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Last Revised: June 16, 2009
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This document is for information purposes
only. It is neither an offer to sell nor a
solicitation of an offer to buy any Fannie
Mae security. Fannie Mae securities are offered
only in jurisdictions where permissible by
offering documents available through qualified
dealers. Securities issued by Fannie Mae are
not guaranteed by the United States and do
not constitute a debt or obligation of the
Unites States or of any agency or instrumentality
thereof other than Fannie Mae. All statements
made herein are qualified in their entirety
by reference in the applicable offering documents.
Securities discussed herein may not be eligible
for sale in certain jurisdictions or to certain
persons and may not be suitable for all types
of investors. An offering only may be made
through delivery of the Offering Document.
Investors considering purchasing a Fannie
Mae security should consult their own financial
and legal advisors for information about such
security, the risks and investment considerations
arising from an investment in such security,
the appropriate tools to analyze such investment,
and the suitability of such investment in
each investor's particular circumstances.
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