What is the role of Fannie Mae in relation to private mortgage insurance (PMI)?

Fannie Mae plays a role in the mortgage industry by setting guidelines for lenders on when private mortgage insurance (PMI) is required for home loans. PMI is typically needed when a borrower puts down less than 20 of the home's purchase price. Fannie Mae's guidelines help ensure that lenders properly assess the need for PMI to protect against potential loan defaults.