Credit risk management is a cornerstone of our Single-Family business. As one of the largest guarantors of U.S. mortgages, we play a major role in setting standards for the housing finance market. We actively manage credit risk throughout the loan lifecycle, from underwriting to disposition. Read More: Single-Family Credit Risk Management Overview Lender quality Lenders undergo a rigorous approval process prior to doing business with Fannie Mae and must meet ongoing net worth and operational requirements. Lenders are subject to ongoing oversight through comprehensive reviews to assess the effectiveness of their quality control procedures. Loan quality Loans must be underwritten in accordance with Fannie Mae guidelines. The majority of loans that we acquire are evaluated through Desktop Underwriter® (DU®), the industry's most widely used automated underwriting system. All 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 Underwriter™ (SMDU™), automates our servicing policies. Property management We conduct all property management and disposition in-house, managing one of the industry's largest real estate-owned portfolios. 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. Credit Risk Transfer Single-Family Credit Risk Transfer Credit Risk Management Due Diligence Connecticut Avenue Securities Credit Insurance Risk Transfer Seller/Servicer Risk Share Mortgage Insurance Risk Share Fannie Mae Single-Family Loan Performance Data Multifamily Credit Risk Transfer Single-Family Credit Risk Transfer Credit Risk Management Due Diligence Connecticut Avenue Securities Credit Insurance Risk Transfer Seller/Servicer Risk Share Mortgage Insurance Risk Share Fannie Mae Single-Family Loan Performance Data Credit Risk Management Due Diligence Connecticut Avenue Securities Credit Insurance Risk Transfer Seller/Servicer Risk Share Mortgage Insurance Risk Share

Fannie Mae Single-Family Loan Performance Data Multifamily Credit Risk Transfer Advanced technology Our proprietary digital solutions support comprehensive credit risk management. Desktop Underwriter® (DU®) Automated underwriting system that performs a risk assessment and deploys underwriting guidelines and credit policies to the market. Helps lenders establish a loan's eligibility for sale and delivery to Fannie Mae. Collateral Underwriter® (CU®) Platform for collateral risk assessment, providing sellers greater certainty on property values. Provides robust analytics and confidence in collateral valuation - a key indicator of loan performance. Servicing Management Default Underwriter™ (SMDU™) Platform for delivering real-time loss mitigation workout findings and recommendations. Streamlines the loss mitigation process enabling servicers to save time, reduce risk, and enhance their service to homeowners. Gain confidence in our approach Data Dynamics ® is our free data analytics web tool, designed to allow users to interact with and analyze the historical loan performance data, deal issuance data, and ongoing disclosure data that Fannie Mae makes available. In addition to our own internal quality control reviews, Fannie Mae engages third-party due diligence providers to conduct additional reviews for a portion of the loans that we acquire. Learn more about third-party due diligence below. Third-party due diligence