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In 2019, Daniel Zimmerman of Monmouth Beach, New Jersey, concluded a 14-year tenure with Goldman Sachs. In his final position, the Monmouth Beach resident served as managing director in the company’s asset management division, where his responsibilities centered on co-managing the small/mid-cap growth fund. Earlier in his tenure, while working as an analyst in the global investment research division, Daniel Zimmerman authored leading-edge research on the mortgage giants Fannie Mae and Freddie Mac, and their struggles during the 2008 economic recession.

Fannie Mae and Freddie Mac were established by the government. They are known as government-sponsored entities (GSE), and perform a key role in the U.S. housing finance system. Fannie Mae is also known as the Federal National Mortgage Association, while Freddie Mac is the Federal Home Loan Mortgage Corporation.

The key function of both Fannie Mae and Freddie Mac is to provide liquidity the U.S. mortgage finance system. Fannie and Freddie buy home loans from private firms and package them into mortgage-backed securities. They also guarantee prompt payment of the principal and interest on those securities to their external investors. Both organizations also have their own home loans and mortgage securities. For a loan to be purchased by Fannie Mae and Freddie Mac, it has to meet specific credit and underwriting standards. Since mortgage lenders are not required on reflect these loans on their balance sheets, they’re left with extra capital to create more loans for other creditworthy borrowers.

Private lenders can also offer safe, long-term, and fixed-rate mortgages since they know Fannie Mae and Freddie Mac will most likely purchase them. Since Fannie and Freddie provide a guarantee of payment in case of a default, private mortgage lenders don’t have to worry about credit risk, which in turn makes mortgages more attractive and lucrative. Thanks to Fannie Mae and Freddie Mae, until the late 1990s, mortgages were given out under flexible and sustainable terms that enabled more Americans to realize the dream of homeownership.

Having worked at Goldman Sachs & Co. from 2003 until early 2019, Daniel Zimmerman of Monmouth Beach, New Jersey, brought his expertise in financial services, including portfolio management and investment analysis, to the firm. In 2015, Daniel Zimmerman held the title of managing director, and, among his responsibilities in the position, he managed portfolios as part of the Goldman Sachs Small/Mid Cap Growth Fund (GSMYX) for the Goldman Sachs Asset Management Division (GSAM) from 2014 to 2019. The fund consistently earned high Morningstar ratings under his direction, and he played an integral role in driving an active return on investments in the financial sector for GSAM during this period as well.

To better serve his clients, Mr. Zimmerman is a member of the CFA Society New York, a community for investment professionals. Additionally, he holds the chartered financial analyst (CFA) designation through the CFA Institute. In addition to his professional activities, he is an active member of the Monmouth Beach community. He is also an avid baseball and basketball fan who likes to spend time fishing and boating.