Fannie Mae is a government-sponsored enterprise that provides liquidity to the mortgage market by purchasing and securitizing mortgages. In recent years, Fannie Mae has been investing heavily in modern data warehousing, analytics, and machine learning technologies to improve its efficiency, effectiveness, and risk management capabilities.
One of the key initiatives at Fannie Mae has been the development of its Enterprise Data Platform (EDP), which is a cloud-based data platform that allows the company to store and analyze vast amounts of data from a variety of sources. The EDP is built on top of the Amazon Web Services (AWS) cloud platform and uses a combination of open-source and commercial tools to manage data, including Apache Hadoop, Apache Spark, and Amazon Redshift.
Fannie Mae has also been investing in machine learning and analytics capabilities to improve its risk management and loan servicing operations. For example, the company has developed a machine learning model to identify borrowers who are at risk of defaulting on their loans, allowing the company to take proactive measures to help those borrowers avoid foreclosure.
In addition, Fannie Mae has been using analytics to improve its loan servicing operations by identifying patterns in borrower behavior that can help the company better understand and anticipate the needs of its customers. For example, the company has developed a predictive analytics model that can help identify borrowers who are likely to refinance their mortgages, allowing the company to proactively reach out to those customers and offer them refinancing options.
Overall, Fannie Mae’s investments in modern data warehousing, analytics, and machine learning have been paying off, with the company reporting strong financial results in recent years. In 2020, the company reported net income of $11.8 billion, up from $14.2 billion in 2019. Fannie Mae has also been recognized for its use of advanced analytics and machine learning, winning a number of industry awards for its innovative use of data.
Sources:
- https://www.fanniemae.com/resources/file/aboutus/pdf/annual-report/2020-fannie-mae-10k.pdf
- https://www.bankingexchange.com/news-feed/item/8607-fannie-mae-s-cio-talks-data-migration-to-the-cloud-machine-learning-and-more
- https://www.businesswire.com/news/home/20190325005084/en/Fannie-Mae-Wins-Five-Model-Risk-Manager-Awards-for-Its-Innovative-Use-of-Data-and-Analytics
