Fannie Mae 2010 Annual Report Download - page 53

• Creating, making available and managing the process for servicers to report modification activity and
program performance;
• Calculating incentive compensation consistent with program guidelines;
• Acting as record-keeper for executed loan modifications and program administration;
• Coordinating with Treasury and other parties toward achievement of the program’s goals, including
assisting with development and implementation of updates to the program and initiatives expanding the
program’s reach; and
• Performing other tasks as directed by Treasury from time to time.
In our capacity as program administrator for the program, we support over 100 servicers that have signed up
to participate with respect to non-agency loans under the program. To help servicers implement the program,
we have provided information and resources through a Web site dedicated to servicers under the program. We
have also communicated information about the program to servicers and helped servicers implement and
integrate the program with new systems and processes. As program administrator, we have taken the following
steps to help servicers implement the program:
• dedicated Fannie Mae personnel to work closely with participating servicers;
• established a servicer support call center;
• conducted ongoing conference calls with the leadership of participating servicers;
• provided training through live Web seminars and recorded tutorials; and
• made checklists and job aids available on the program Web site.
OUR CUSTOMERS
Our principal customers are lenders that operate within the primary mortgage market where mortgage loans
are originated and funds are loaned to borrowers. Our customers include mortgage banking companies, savings
and loan associations, savings banks, commercial banks, credit unions, community banks, insurance
companies, and state and local housing finance agencies. Lenders originating mortgages in the primary
mortgage market often sell them in the secondary mortgage market in the form of whole loans or in the form
of mortgage-related securities.
During 2010, approximately 1,100 lenders delivered single-family mortgage loans to us, either for
securitization or for purchase. We acquire a significant portion of our single-family mortgage loans from
several large mortgage lenders. During both 2010 and 2009, our top five lender customers, in the aggregate,
accounted for approximately 62% of our single-family business volume. Three lender customers, Wells
Fargo & Company, Bank of America Corporation, and JPMorgan Chase & Co., including their respective
affiliates, in the aggregate accounted for more than 52% of our single-family business volume for 2010.
Due to ongoing consolidation within the mortgage industry, as well as the number of mortgage lenders that
have gone out of business since late 2006, we, as well as our competitors, seek business from a decreasing
number of large mortgage lenders. To the extent we become more reliant on a smaller number of lender
customers, our negotiating leverage with these customers decreases, which could diminish our ability to price
our products and services optimally. In addition, many of our lender customers are experiencing financial and
liquidity problems that may affect the volume of business they are able to generate. We discuss these and
other risks that this customer concentration poses to our business in “Risk Factors.”
COMPETITION
Historically, our competitors have included Freddie Mac, FHA, Ginnie Mae (which primarily guarantees
securities backed by FHA-insured loans), the 12 Federal Home Loan Banks (“FHLBs”), financial institutions,
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