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This total amount of risk-based capital equates to a combined 3.2% capital requirement (3.43% for Fannie Mae and 2.96% for Freddie Mac). Approximately three quarters of this risk-based requirement would be associated with the risk of single-family loans, guarantees and securities.
Depending on the number of units, Fannie Maes Standard Eligibility Requirements for an investment property is: 1 unit requires a minimum down payment of 15%. 2 to 4 units require a minimum of 25% down.
Fannie Mae is a leading provider of mortgage financing in the U.S. We purchase mortgages from lenders to free up the money they need to make other mortgage loans, therefore ensuring the ongoing availability of affordable mortgages.
A prospectus is used for public markets while an offering memorandum is used for private markets. The offering memorandum document can also be referred to as an offering circular if it requires registration with the stock exchange commission.
An offering memorandum is a legal document that states the objectives, risks, and terms of an investment involved with a private placement. This document includes items such as a companys financial statements, management biographies, a detailed description of the business operations, and more.
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Note that Fannie Maes guarantee is based on its own corporate health and is not backed by the government. Freddie Mac (the Federal Home Loan Mortgage Corporation) is similar to Fannie Mae in that it is also sponsored by the U.S. government and is owned by stockholders.
Key Takeaways. Capital requirements are regulatory standards for banks that determine how much liquid capital (easily sold assets) they must keep on hand, concerning their overall holdings. Expressed as ratios, the capital requirements are based on the weighted risk of the banks different assets.
An offering circular allows investors to access information regarding a new issue. It provides them with very important information about the security such as financial information about the issuer, the objective of the fund or purpose of the funds being raised, and other terms of the security issuance.
Fannie Mae was first chartered by the U.S. government in 1938 to help ensure a reliable and affordable supply of mortgage funds throughout the country. Today it is a shareholder-owned company that operates under a congressional charter.
The Federal National Mortgage Association (Fannie Mae) is a Govern- ment-sponsored enterprise (GSE) in the housing finance market.

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