--- title: "A Look At Fannie Mae (OTCPK:FNMA) Valuation After The HomeReady Underwriting Change" type: "News" locale: "en" url: "https://longbridge.com/en/news/286754951.md" description: "Fannie Mae's recent HomeReady underwriting change allows borrowers to count roommate or partner rent as qualifying income, impacting its stock amid a high-rate market. The stock has seen a 5.39% decline over 30 days and a 29% drop year-to-date, despite a 13.52% total return over one year. Analysts suggest the stock is undervalued, with a target price of $12.08, while some estimates reach $20.00, indicating potential upside if credit costs remain stable." datetime: "2026-05-18T10:25:49.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286754951.md) - [en](https://longbridge.com/en/news/286754951.md) - [zh-HK](https://longbridge.com/zh-HK/news/286754951.md) --- # A Look At Fannie Mae (OTCPK:FNMA) Valuation After The HomeReady Underwriting Change ## HomeReady underwriting change puts program in focus A recent underwriting change to Federal National Mortgage Association (OTCPK:FNMA)'s HomeReady program now lets borrowers count documented roommate or partner rent as qualifying income, drawing fresh attention to the stock in a high-rate market. See our latest analysis for Federal National Mortgage Association. Against this backdrop, Federal National Mortgage Association’s share price has been under pressure in the short term, with the 30 day share price return down 5.39% and the year to date share price return down 29%. At the same time, the 1 year total shareholder return is 13.52% and the 3 year total shareholder return is very large, suggesting longer term momentum has been strong while shorter term sentiment has cooled around the recent HomeReady change. If this HomeReady update has you rethinking where housing and financing trends could lead next, it may be a good moment to broaden your search and check out 18 top founder-led companies So with Federal National Mortgage Association trading at US$7.81 against an analyst price target of about US$12.08 and a value score of 5, is the market overlooking upside here, or already pricing in any future growth? ## Most Popular Narrative: 61% Undervalued With Federal National Mortgage Association last closing at $7.81 against a narrative fair value of $20.00, the most followed thesis paints a very different picture from the market. > _The assumed bullish price target for Federal National Mortgage Association is $20.0, which represents up to two standard deviations above the consensus price target of $12.08. This valuation is based on what can be assumed as the expectations of Federal National Mortgage Association's future earnings growth, profit margins and other risk factors from analysts on the bullish end of the spectrum._ Read the complete narrative. Want to see what justifies a higher fair value even as forecasts point to weaker earnings and flat margins? The narrative leans on specific revenue growth assumptions, share count changes and a required future earnings multiple that many investors usually associate with faster growing sectors. **Result: Fair Value of $20 (UNDERVALUED)** Have a read of the narrative in full and understand what's behind the forecasts. However, this bullish setup still hinges on credit costs in the multifamily book remaining contained and on portfolio growth not triggering heavier capital or funding pressures. Find out about the key risks to this Federal National Mortgage Association narrative. ## Next Steps With sentiment clearly divided between risks and rewards, this is an appropriate moment to act promptly, review the underlying data directly, and evaluate both perspectives with 3 key rewards and 3 important warning signs ## Looking for more investment ideas? If you stop your research with one stock, you risk missing other opportunities that might fit your goals even better. Broaden your scope with targeted screeners. - Target stronger value candidates by checking out 51 high quality undervalued stocks that currently stand out on both quality and pricing. - Prioritise resilience by running through 66 resilient stocks with low risk scores that score well on stability and downside protection. - Get ahead of the crowd by scanning a screener containing 21 high quality undiscovered gems that most investors are not watching yet. _This article by Simply Wall St is general in nature. **We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.** It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._ ### **New:** AI Stock Screener & Alerts Our new AI Stock Screener scans the market every day to uncover opportunities. • Dividend Powerhouses (3%+ Yield) • Undervalued Small Caps with Insider Buying • High growth Tech and AI Companies Or build your own from over 50 metrics. 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