Fannie Mae Houses a Better Future with Integrated, Event-driven Operations

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While the subprime mortgage crisis affected many Americans, it also affected the heart of the country’s housing industry: Fannie Mae. Fannie Mae is the leading source of financing for mortgage lenders, providing access to affordable mortgage financing in all markets at all times. In the thick of the housing crisis with the timing of the essence, the federal government asked the company to react to the crisis at a faster pace than anticipated. Because of its legacy architecture, Fannie Mae was unable to react to the fast-changing business landscape.

Their outdated architecture provided limited visibility into the end-to-end business flow, which inhibited resilient and hybrid deployment models. With custom point-to-point interfaces that were brittle and costly, Fannie Mae needed a new solution to keep up with the demands of its clients and the federal government.

So the company turned to TIBCO. In 2008, Fannie Mae implemented TIBCO BusinessWorks for integration and TIBCO Messaging to enable event-driven operations. The new system allows Fannie Mae to handle several hundred billion dollars’ worth of business, which has a real impact on the company. Now, the enterprise data infrastructure serves as a single source of truth, incorporating over 90 upstream systems that feed more than 250 downstream systems.

The integration and messaging solutions offer a number of benefits for both lending institutions and homebuyers. For its clients, TIBCO helps Fannie Mae to provide real-time information, such as when they made their mortgage payment. Before TIBCO, a mortgage payment took two to five day to process, whereas today, it’s instantaneous.

In addition to improving its internal operations, the TIBCO solution gives Fannie Mae the ability to help its lending institutions provide better service to its clients. Fannie Mae helps lenders expose rules so that when a mortgage application is submitted, the lender can analyze it to better understand the quality of the loan.

TIBCO provides Fannie Mae with the mission-critical sustainability they need for their endpoint applications and messages. With more than 125 major application endpoints connected, exchanging almost 20 million messages per day, the new infrastructure enables Fannie Mae to deliver billions of dollars to the housing market, helping experienced and first-time home buyers achieve their dreams of homeownership.

As for the future, Fannie Mae is looking toward the cloud. It is evaluating their operations processes to determine what should migrate to the cloud, possibly implementing a hybrid cloud strategy. The company is also looking into experimenting with Apache Kafka, which is now supported by TIBCO’s messaging platform.