Fannie Mae’s Malloy Evans on Innovation, Inclusion, and the Future of Homeownership

As the EVP and Head of Single-Family at Fannie Mae, Malloy Evans leads one of the most influential divisions in the U.S. housing finance system. Responsible for managing a $3.6 trillion mortgage portfolio, his role touches nearly every aspect of the mortgage journey from access and affordability to underwriting and innovation.

With decades of experience at Fannie Mae including as its former Chief Credit Officer Evans has been at the helm through both stable times and market turbulence. Today, his focus remains firmly fixed on expanding access to homeownership, especially for those historically left behind.

Addressing the Real Obstacles to Homeownership

Evans believes the biggest hurdle for many aspiring buyers isn’t necessarily about whether they can afford a mortgage long-term it’s about navigating the front-end barriers that keep them out of the market in the first place.

“Affordability remains the number one challenge, especially for first-time buyers,” he explains. “But while we can’t control macroeconomic forces like inflation, interest rates, or housing supply, we can remove friction in the areas where we do have influence like credit access and upfront costs.”

According to Fannie Mae’s research, two major hurdles stand out: credit invisibility and insufficient savings for closing costs. Many would-be homeowners simply don’t have a traditional credit footprint, or they fall short of down payment and closing cost requirements even if they can easily handle a monthly mortgage payment.

To close that gap, Evans says Fannie Mae is working to develop smarter, more inclusive tools that expand access while maintaining responsible risk standards.

Reimagining the Mortgage Process Through Technology

Innovation isn’t just a buzzword at Fannie Mae it’s part of the institution’s DNA. From rethinking underwriting models to digitizing complex loan evaluations, the company is leaning into technology to simplify and streamline the mortgage process.

One key example? Fannie Mae’s Desktop Underwriter® (DU®) system, which just celebrated its 30th anniversary. Since its launch, DU has enabled over $11 trillion in mortgage funding and has helped nearly 8 million first-time buyers become homeowners. It processes about two-thirds of all conventional loans, making it a foundational tool for lenders nationwide.

In 2025, the release of DU Version 12.0 brought new capabilities designed to better assess risk and approve a wider range of applicants including those with non-traditional credit profiles. Positive rent payment history and cash flow data can now be factored into credit decisions, unlocking opportunities for buyers who would previously be overlooked.

“The goal,” Evans says, “is to say ‘yes’ more often but only when it’s smart and sustainable to do so.”

Fannie Mae’s efforts are already showing results: since the rollout of DU 12.0, approval rates have increased by over three percentage points, offering new pathways to qualified borrowers who may have been shut out under older models.

Supporting Self-Employed Borrowers With Smarter Tools

Another major breakthrough: Fannie Mae’s Income Calculator, which simplifies income evaluations for self-employed borrowers a notoriously complex and time-consuming segment of the market. Introduced in 2023 and significantly enhanced in 2024, the tool helps lenders accurately assess income for business owners, freelancers, and investors who rely on rental properties.

Roughly 10% of the U.S. workforce is self-employed, and these borrowers account for about 12% of Fannie Mae loan deliveries. By eliminating manual processes and standardizing assessments, the Income Calculator not only saves time but increases loan certainty and improves borrower experience.

To date, more than 630 lenders have used the tool to generate over 160,000 income evaluations.

Cutting Costs to Help More Buyers Reach the Finish Line

Beyond underwriting improvements, Fannie Mae is also focused on reducing the total cost of buying a home especially for lower-income borrowers.

Programs like HomeReady® have been instrumental. With just a 3% down payment requirement, reduced mortgage insurance costs, and a new $2,500 credit for very-low-income borrowers, HomeReady aims to make closing costs more manageable and help more renters become homeowners.

“Borrowers don’t need to be first-time buyers to qualify,” Evans notes. “And we’ve made sure this benefit is available through all of our approved lenders.”

But the savings don’t stop there. Fannie Mae’s valuation modernization initiatives including alternatives to full appraisals have saved buyers an estimated $2.9 billion since 2020. Similarly, efforts to modernize the title process have cut another $12 million in costs.

“These may seem like small numbers individually, but they add up quickly,” Evans adds. “In today’s tight market, every dollar saved can mean the difference between buying now or waiting another year.”

Listening to Lenders, Supporting Borrowers

Evans emphasizes that Fannie Mae’s approach isn’t just about rolling out new tools it’s about collaboration. “We’re constantly listening to our lender partners,” he says. “They’re closest to the consumer, and they help us understand where we need to evolve.”

That evolution is ongoing. Fannie Mae continues to refine its platforms and policies in real-time, using market feedback and data analytics to guide decision-making. The company is also investing in new innovations many still under wraps that aim to further reduce barriers and modernize the mortgage experience.

For Evans, the mission is clear: make homeownership more inclusive, more affordable, and more achievable.

“This is not about lowering standards,” he says. “It’s about updating our systems to reflect how people really live, work, and manage their money today.”

As affordability challenges persist and the housing market continues to shift, one thing remains constant: Fannie Mae’s commitment to creating sustainable pathways to homeownership one innovation at a time. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.