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Fannie Mae uses AWS to expand homeownership for first-time homebuyers

Fannie Mae uses AWS to expand homeownership for first-time homebuyers

Banking & FinanceCloudTop Stories

Leading source of financing for US mortgages uses AWS technology to enhance IT security and develop new ways to serve America’s homeowners and renters for decades to come.

Fannie Mae, a leading source of financing for mortgages in the US, is using AWS to help solve the biggest challenges in housing.

Fannie Mae uses the breadth and depth of AWS capabilities, including Machine Learning, analytics, and high performance and serverless computing to automate processes, enhance IT security, and innovate new services that facilitate equitable and sustainable access to homeownership and quality affordable rental housing across America.

Fannie Mae is migrating IT workloads from on-premises data centers to AWS to increase IT agility and resiliency, and accelerate the introduction of new services for lenders and homeowners.

By moving internal systems and customer-facing workloads to the cloud, Fannie Mae has the flexibility to quickly respond to external challenges like the COVID-19 pandemic and roll out new programs to help keep millions of borrowers and renters in their homes.

For instance, Fannie Mae was able to deploy its forbearance program into production faster using AWS, initiating 1.4 million single-family forbearance plans since March 2020.

With Amazon Kinesis (AWS’s real-time, fully managed and scalable platform for streaming data) and Amazon Aurora (AWS’s relational database built for the cloud) Fannie Mae can ingest, process and analyze a greater volume of data faster to accelerate the introduction of new services and scale to meet the unprecedented increase in borrower demand.

Fannie Mae uses AWS analytics services to process structured and unstructured data, including Amazon EMR (AWS’s cloud Big Data service for processing vast amounts of data using open-source tools), to deliver insights from data and take steps to responsibly expand access to mortgage credit.

Based on these insights, Fannie Mae launched a new feature in Desktop Underwriter, an industry-leading, automated underwriting engine that helps lenders efficiently complete credit risk assessments to establish home loan eligibility, to incorporate consumers’ timely rent payments in the mortgage underwriting process, which is helping more first-time homebuyers qualify for a mortgage.

Fannie Mae also built its enterprise data lake on Amazon Simple Storage Service (Amazon S3) to support more than 3,000 datasets and 100 applications, achieving faster time to market with innovative automated products. Now, using Amazon Redshift (AWS’s cloud data warehouse), Fannie Mae can quickly analyze external data from a variety of sources to understand key housing market indicators and trends, and scale insights across its operations.

“Fannie Mae is working to solve the biggest challenges in housing. We are accelerating the Digital Transformation of our business to make it safer, simpler and less expensive for lenders to originate a mortgage. Our ability to innovate directly improves our ability to meet our housing mission by making it more equitable and affordable to buy or rent a home,” said Kimberly H. Johnson, Executive Vice President and Chief Operating Officer, Fannie Mae.

“AWS enables Fannie Mae’s on-going Digital Transformation, and we rely on their innovative technology and cloud services to drive positive change in our industry.”

Matt Garman, Senior Vice President of Sales and Marketing at Amazon Web Services, said: “Fannie Mae’s Digital Transformation with AWS is reinventing housing finance and lowering the barriers to affordable home rental and ownership for people and families across the US.

“With AWS as a strategic cloud provider, Fannie Mae can drive resiliency in their operations, respond quickly to housing market dynamics and innovate new services to make the mortgage process easier.”

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