2010-09-21 fannie mae counsel letter to the fcic

8/7/2019 2010-09-21 Fannie Mae Counsel letter to the FCIC

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BEIJINGBRUSSELSCENTURY CITYHONG KONGLONDONLOS ANGELESNEWPORT BEACH

September 21, 2010BY ELECTRONIC MAILMr. Gary Cohen

oO'MELVENY & MYERS LLP

1625 Eye Street, NWWashington, D.C. 20006-4001TELEPHONE (202) 383-5300FACSIMILE (202) 383-5414

www.omm.com

Financial Crisis Inquiry Commission1717 Pennsylvania Avenue, N.W.Suite 800Washington, DC 20006-4614

Re: Responses to Requests {or DataDear Gary:

NEW YORKSAN FRANCISCO

SHANGHAISILICON VALLEY

SINGAPORETOKYO

()IIR FlI.L :\! ' \IIlI


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O'MELVENY & MYERS LLPMr. Gary Cohen, September 21, 2010 2

the Credit Supplements that existed at that time. Those Credit Supplements contain datacovering the period of 2005-2008 and can be found at FM-FCIC_00025866-00025953. We haveenclosed duplicate copies for your convenience. We have also enclosed copies of Fannie Mae'sCredit Supplements tiled for the period covering year-end 2009 to the second quarter of 2010,which is the most recent Credit Supplement that has been filed. Those documents have beennumbered FM-FCIC-2 00004700-00004756. The specific relevant tigures are set forth below.1. Dollar Volume (UPB) of Single Family Loan Acquisitions (in billions), byAcquisition Year2005 $524.22006 - $515.82007 $643.82008 $557.22. Percent of Single Family Loans that Ever Went 90-Day Delinquent, byOrigination Year2005 9.97%2006 15.88%2007 - 18.2%2008 5.94%Please note that the percentages above are higher than the SDQ rates set forth in FannieMae's Credit Supplements because certain loans that became delinquent were later cured.3. Cumulative Default Rates as of June 30, 2010 by Origination Year2005 2.91%2006 4.78%2007 4.34%2008 -0.86%The percentage is expressed as a percentage of credit losses for the single-familyguaranty book of business. For a detailed explanation of these figures, please see Fannie Mae'sCredit Supplement for the Second Quarter of2010, dated August 5, 2010 at pages 7-8 (FM

FCIC-2 00004745-4746) and notes thereto.September 15,2010 email- Request 4

Request 4 in your September 15, 2010 email to me seeks information regarding thepercentage of single family loans that Fannie Mae purchased that went into foreclosure. Thisinformation, broken out by acquisition year, can be found in the chart below.


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Q'MnVENY & MYERS LLPMr. Gary Cohen, September 21, 2010 - Page 3

Aqsn Total LoansYear uired Ever FCL 0/0 Ever FCL 0/02005 3,051,692 183,698 6% 524.2 $ 32.3 6%2006

279825 10% $ 515.8 $ 55.3 11%2007

381 302 12% $ 643.8 $ 81.3 13%2008 472 4% $ 557.2 $ 22.0 4%

September 15,2010 email- Reguest 5Request 5 in your September 15, 2010 email to me seeks information regarding thepercent of the dollar value of loans that Fannie Mae sampled for violations that may give rise to arepurchase right. This information, broken out by acquisition year, can be found in the enclosedchart, which has been numbered FM-FCIC-2 00004760.Request 5(a) in your September 15,2010 email to me seeks information regarding thepercentage of the loans that were sampled where a significant finding was made and a repurchaserequest was issued. This information, broken out by acquisition year, can be found in theenclosed chart, which has been numbered FM-FCIC-2_00004761. Due to limitations withrespect to how Fannie Mae maintains its data and given the timeframes provided by the FCIC,the information in the attached chart is the best available information that Fannie Mae can submit

at this time.September 15,2010 email- Request 6

Request 6 in your September 15, 2010 email to me asks for "the total estimated annualcost of the quality control office direction" for 2009 and 2010. Fannie Mae's NationalUnderwriting Center ("NUC"), which is located in Dallas, Texas, is responsible for the postpurchase review of loans and ensuring that loans purchased by Fannie Mae do not violate repsand warranties made by sellers. The NU C had actual expenses of $58.5 million in 2009 and aprojected budget of$124.3 million in 2010. In addition, as we have explained, Fannie Mae hasnumerous processes and procedures to ensure quality control embedded in each of its businesscenters throughout the country. The costs associated with these quality control functions as wellas efforts undertaken at corporate headquarters in supervising the NUC are not included in thesefigures.


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O'MELVENY & MYERS LLPMr. Gary Cohen, September 21, 2010 4

September 15, 2010 email - Request 7Request 7 in your September 15, 2010 email to me asks for certain data regarding FannieMae's recoveries in connection with repurchase requests. That data, broken out by calendar

year, can be found in the enclosed chart, which has been numbered FM-FCIC-2_00004672.September 15,2010 email- Request 8

Request 8 in your September 15,2010 email to be seeks information about Fannie Mae'ssampling methodology. Sampling pursuant to methodologies (A) through (E) set forth below allrelate to potential violations of reps and warranties.

A. PFR (Post-Foreclosure Reviews): Reviews which take place at the time a property isacquired by Fannie Mae as a Real-Estate Owned (REO) - these properties have alreadyprocessed through foreclosure. The selection methodology is based around a modelwhich takes into account both the likelihood of a significant finding given review and theamount ofloss (expected or realized) for the property.

B. PFS (Pre-Foreclosure Reviews): Reviews which take place at the time a property has aclosed Short-Sale transaction. The selection methodology is identical to PFR reviews,with the exception that since these are final transaction, Fannie Mae evaluates using anactual loss.

C. SDQ (Seriously Delinquent Loan Reviews): Reviews based on selections out of a subsample of our outstanding seriously delinquent loan population. Fannie Mae filters theSDQ population down to a group which has a near-zero chance of curing and whereFannie Mae is likely to take a loss. Early payment default (less than 18 or 24 paymentsmade before default) loans are given priority in these selections.

D. D-PPR (Discretionary Post-Purchase Reviews): This category is a catch-all reviewgroup for targeted non-defaulted loans selected for a variety of reasons: Anti-PredatoryReviews, Fraud Cases, MI Rescissions, Counterparty Risk, Product Performance, Smalllender targeting and self-reported issues by lenders. Selections in this category can bemade at anytime over the life of a loan, but generally prior to default. Some of theselection reasons are based on models (Anti-Predatory), others are based on acombination ofmodels and research (Fraud and Small-lender targeting), while others aremore ad hoc in nature and are generally selected to gather robust information based onthe targeted selection populations.

E. R-PPR (Random Post-Purchase Reviews): This category is used to randomly sampleincoming acquisitions in order to make statistical statements about loan quality for recentacquisitions. No loan-level targeting is used, but Fannie Mae does perform lendersampling for its largest customers.


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0 'MnVENY &. MYERS l lPMr. Gary Cohen, September 21, 20 I 0 - Page 5

Another category is denominated RV, or Recourse Violations. This category tracks loansthat Fannie Mae acquired with some level of recourse that have since violated that recourse.These loans generally do not receive full reviews and typically result in automatic repurchases.An example of a recourse violation would be the loan becoming seriously delinquent within thefirst 12 months of acquisition.* * *

We wish to stress that the documents and information we have provided with this letterdid not previously exist in this form at Fannie Mae. Fannie Mae used various technology andmanual resources to generate the data for production in response to your requests. While FannieMae believes that the information is reasonably accurate, Fannie Mae cannot make an absoluterepresentation that it is complete or that there were not some inadvertent errors in its preparation,especially given the expedited timeframe within which it was generated and produced. We willprovide further updates or corrections if we discover missing information or errors.

The documents and information provided by Fannie Mae to the FCIC containconfidential, proprietary, and/or non-public information regarding the Company. Fannie Maerequests confidential treatment of these materials by the FCIC.

Should you have any questions, please do not hesitate to contact me. I can be available atyour convenience to discuss any of this.

cc: Mr. Thomas Stanton (via email)Ms. Wendy Edelberg (via email)Mr. Greg Feldberg (via email)

encl

Mr. Christopher Seefer (via email)Mr. Tom Krebs (via email)Mr. Tom Borgers (via email)Ms. Clara Morain (via email)Mr. Alfred Pollard (via email)Ms. Charlotte Reid (via email)Ms. Julie Katzman (via email)Mr. Jonathan Griffith (via email)Mr. Evan Stolove (via email)Mr. Michael Spence (via email)Mr. Michael Walsh (via email)

Jeffrey KilduffofO'MELVENY & LLP


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NONPUBLICINFORMATIONOutstandingPrincipalBalanceAmountsbyCorporateFamilyandLenderOutstandingRepurchasesRequestasat8/31/2010

$inMillions

CorporateFamily/Lender # PrincipalBalance$BANKOFAMERICACORPORATION 17,408 3,860.29

BACHOMELOANSSERVICING,LP(formerlyknownas

CountrywideHomeLoansServicingLP,primaryservicer

forloanssoldbyCountrywideHomeLoansInc.) 12,775 2,834.06

BANKOFAMERICA,FSB 1 0.09

BANKOFAMERICA,N.A. 4,428 984.68

COUNTRYWIDEKBHOMELOANS,ASERIESOF 1 0.23

HOMELOANSERVICES,INC. 194 39.25

MERRILLLYNCHCREDITCORPORATION 2 0.52

NEXSTARFINANCIALCORPORATION 1 0.12

WILSHIRECREDITCORPORATION 6 1.35

WELLSFARGO&COMPANY 3,742 846.61AMERICANMORTGAGENETWORK,INC. 465 114.68

SOUTHTRUSTMORTGAGECORPORATION 2 0.07

WELLSFARGOBANKN A. 17 2.55

WELLSFARGOBANK,N.A. 3,258 729.30

CITIGROUPINC 2,974 650.55CITIMORTGAGEASSETMANAGEMENT,INC. 4 0.97

CITIMORTGAGE,INC. 2,969 649.47

PRINCIPALRESIDENTIALMORTGAGECAPITAL 1 0.11

JPMORGANCHASE&CO. 2,349 507.97CHASEHOMEFINANCE,LLC 104 17.34

EMCMORTGAGECORPORATION 72 14.80

JPMORGANCHASEBANK,NA 1,457 328.53

WASHINGTONMUTUALBANK 707 145.71

WASHINGTONMUTUALBANK ALTA 3 0.39

WASHINGTONMUTUALBANK(DEDICATEDCHANN 1 0.06

WASHINGTONMUTUALMORTGAGESECURITIESC 5 1.14

AMTRUSTFINANCIALCORPORATION 983 211.53AMTRUSTBANK 983 211.53

SUNTRUSTBANKS,INC. 808 168.39SUNTRUSTMORTGAGEINC. 808 168.39

ALLYFINANCIALINC. 776 159.19ALLYBANK 109 24.82

GMACMORTGAGE,LLC 666 134.19

RESIDENTIALFUNDING,LLC 1 0.19

FLAGSTARBANCORP,INC 580 123.46FLAGSTARBANK,FSB 19 2.95

FLAGSTARCAPITALMARKETSCORPORATION 561 120.50

FIRSTHORIZONNATIONALCORPORATION 373 76.56FIRSTTENNESSEEBANKNATIONALASSOCIATI 34 7.71

FIRSTTENNESSEEBANK,NATIONALASSOCIAT 339 68.85

HSBCHOLDINGSPLC 336 71.70HSBCMORTGAGECORPORATION(USA) 336 71.70

30,332 6,673.4088% 90%

ALLOtherLenders 4,011 722.66GrandTotal 34,340 7,398.91Notes:

1)DataSources:QASandRDW

*QASisanoperationalsystemwhichissubjecttochangebasedondataupdatesfromfinancialsystems

*RDWUPBvaluesexcludedelinquentinterest

2)OutstandingRepurchasesareevertodateandincludeRecourseViolationsandexclude:

*Lehman(2,092Requests=$514MUPB)

3)BANKOFAMERICACORPORATIONincludesCountrywideloansunderthenameofBACHOMELOANSSERVICING,LP

Top10Total

*RepurchaserequestsforLender'snoncomplianceforborrowerfiledeliveryorincompletedocument

records(3,860Requests=$856MUPB)

NFIDENTIAL AND PROPRIETARY BUSINESS INFORMATION

NFIDENTIAL TREATMENT REQUESTED

FM-FCIC-2_000


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N O " E ! m ~ e r S ' , 2 0 0 7 '

C..red ...i.t .......S..u... ~ ' . p ..I..e..rl1l ..e..n.tDENTIAL AND PR:OPRIETARY BUSINESS INFOIRIVIATION


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Shl!9heFamily Gonventional Mortgage Credit Book, of BusinessWeighted Average FiGOWeighted Aver.!!ge Original LTVWei'ghted Average MTM LTV

lOfi'9IerrnanidIntE'rmediateIerm.Eiixed.Rate(excluding 10), Data as of September :lO, 2007

Negan!5% 10 ARM

~ . "

Othe,r ARMs

Primaryf(esidence

Certain crata contained jl1i'IJis presentiltilini iirebased UponinformatioJl toot Fannie W t i / e r e c e j l ~ I I 5 ' from third,paITysoorces. Althcihisif,ltoi'miltfOiiiefilibfE!, ii does iiOtguarfllll'eetHiJtiiisaClru,-ateorsuitabfetol iJi'i'lparl:icular jillrpesii FaiiiiteWtiliJh8saccessappro)(imately95 percent i ~ f o u r CQnventfomli sirr,gifl"familJrmortgage critbOQkofblJ$iness.DENTIAL AND PR:OPRIETARY BUSINESS INFOIRIVIATION

AL TREATMENT REQUESTED


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Total Exposur,e lof $55.9 Billion

Guam lOEms

pImmstment

, Data


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Credit C h a r a c t e r i ~ ; t i c s of Single-Family Conventional M o r t g i a ~ l e Credit,",.,"","".,""'''.',",,, ,',""'""',""'"'.",,,.,.,"",, """'-'""" ''''''''"'''1'"'-'''""'''"" '"'''''

BOilk ProfileBalance (UPB $billlic1n)Shiam of SF Conv Credit BOok (1,A V I ~ r ~ l g e UPBSDIQRateOrig Yr 2005-2007WtdAvgOLTV'%()LTV> 90%Wid ""Vg MTMLTIl'wtd Jltvg FICO% F : I C i O ~ 6 2 ( ) %Fixed Rate%' P . r i l ~ e i p a l R ~ i d e n e e %With Credit Enhancement

Overall BblOk$2,427.:r1 0 0 . a l J i ~

$140,78110:.78%50.3%11.2%9.3%

590 0 '. . .Yoo72'1

4,9'%88.0%89.9:%20.0%

t.legAm$24.71,Q%

$154,8010.86%61.6%70.7%0.3%

61.0%693

12.&0/00.1%

73 ..00/073.3%

-".'","0,.,"","0, .. , , , , _ , " , " " , . , " " , " , , , , , , , , _ , " , " ' , , , " " , " ' , " ' ' ' ' _ ' " ' " " " " " ' " : ' ' ' ' ' ' ' ' ' " ' " " ' ' ' ' " ' " " ' ' ' ' ' ' ' ' ' " ' " " ' ' ' ' ~ ' " " _ ' ' ' ' ' ' ' ' "

InterestOnly$194.8IW%

::

FIICO


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Data.as of September 30, 200T

I lB,alance (UPB $billicln)L,.:."",,,,,,,,,,,,,.:.,,,,,,,,,,,,,,,,,,.:.,,,,,,,,,,,,,,,,,,.:.,,,,,,,,,,,,"""'":"""""""""':"""''''''''''''''.''''''''''''''''''''':I ' :Slhare of Tc)iaiSF C r e d j t B o ~ ) J ( I%AAA!1:jYoAAorbE!low'

SubprimeSecurities (1) (2) I Wrap!) (2)

42.4'[6%99%1%

; ; , ; , ; " , ~ " . ; ; ; ; ,

6.2O'2(P. .7092%8%

S ~

(1) In October 2007, the eredit ratings of nine private-label securities held in our porsubprime mortgage loans, with an aggregate unpaid princiipal balance of $2632007, were downgraded by Standard &Poor's. During October 2007' and throu9of our AAA-rated subprime-backecl private"label s e c u r i t i ~ ~ s , with an ag'gregate u$1.3 billion, have been put under review for possible credit rating downgrade or

(2) Weighted average subordination is 32% for subprime securities and 47% for s u b p r j m l

DENTIAL AND PR:OPRIETARY BUSINESS INFOIRIVIATION


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['..""'"''''''''''''''''''''''''''''''''''''''''''''''''''''''''''" .."",,,,,.,,,,,,,,,,,,,,,,.,,,,, .. ,,,.,,,,,.,,,,,.. ,,,.,,,,,,,,,,,..,,"'"''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''"""""""'''''''''''''''''''''' .'''''''''''''''''''''''''''i Single-family serious delinquency rates ! 2 0 0 ~ """ """ """ """ """ """ '"'' '"'' "" " '"'' '"'' '"' ' '"'' '"'' """ """ '"'' "" "" " '"'' '"'' "" , . '"'' '"'' "

L,

Midwest 1Northeast 0Southeast 0Southwest 0

Single-family serious delinquency ratesArizonaCaliforniaflorida

'0200

a00Nevada 0

Total Portfolio I 0'. I" ~ m w N l t : L L ; l ! : :.:Lt JA'1:.:.:L.W:1:.t::,!: :.:Lt J,?)'1:,Jd: : , : t ~ : :Lt: :LtP: Jd: : , : 1 1 ; , - : : ~ t . : , : ! , L P : Jd: :,:1,LU: :,:liWWh&)A, Jd:::"LLl: : , : L t ~ L t Jd: ::"LLl: : , : L L L , ; ~ , : L l : ::"LLl: :,:LLL&,:iA

Data as of September 30, 2006 an':] 2007


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REO and HP St,at.istics fClr Selected States

"" , M " M"" .M "' " .M M"" .M "' " M: .M . M" .M ' " . , . M" M' . M '" . , ," M' M . M". M' M . 'M . HPGr: ' As of I as of 2: State : 2005 : 2006 2007 Q1-Q3 9/30/07 [priorl, . . . . . .. . . . . .. . . . . .. .... . . .... . . .. .....I Michigan 3,633 5,691 5,921 6,944 I - 7I Ohio . 3;11:3 :. 4;041 3;21:8 2,784 1 ~ 1 : 2Indiana 2,099 2,572 1,896 1,014' 1Florida 334 282 1,061 918 -10California 18 93 920 824 -11I Massad hm;etts 81: 188 506 .3 9 T ~ 3 : 5Arizona 146 56 436 342 -5~ I e v a d a 27 62 313 266 -9, Other ?3,103 23,587 :20,684 16.135 Ir Total 3:2,554 316,572 3 : ~ , ' ~ ~ , ~ " , J 29,624 1 -2L 1 * ~ . bLo;; 1S Mr,:;" ; ; ; ~ . _ . : ; ; 1S Mr,:;" ; ; ~ J 1S Mr,:;,; ;;;; ;,; ...:WID, ....... ".1 .......n ....... %'Wl i l . ' .n . ' ~ b & M; :;n;;;;; 1,& d ; ~ ~ M; :;n;;;;; 1,& d ; ~ b1 Based on FM Internal HP IndexOna nationall basis, RE:O sales priGelunpaid principal balance has declreased from2006 to 86% in Q1-Q3 20()7, driving an i n c r e a s E ~ in loss sev1eriity.* All data as of S,eptember 30, 21107



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Fanllnie ~ ~ a e ' 20lt18 CJl3 1!O-Q C;rec:iit SIJpp

Noven11ber 110, 200e:

DENTIAL AND PR:OPRIETARY BUSINESS INFOIRIVIATIONAL TREATMENT REQUESTED


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!m Thesle materialls present t a b 1 E ~ s a n d other informationMae, includingl information cc:mtainecl iin Fannile Mae'on Form 10-C1 'for the quarter ended SE!ptember 30,20Form 110-Q. Some of the terms used in these materialdiscussed more fully in the 20108 Q3 Form 10(l and FAnnual Report on Form 10-K for the ~ ' E ! a r ended DeCE2007 Form 1CI-IK. T h e ~ : m materials sho,uld be r,eviewed2008 et3 Form 10-Q and the 2007 Form 10-K, copies cavailable on Fcinnie Mae's

W E ~ b site at

w w w ~ f ~ l l l n i e m a "Investor Relations" slection of the VVe,b site.1m This presentcltion includes fOlrward-lc)c)king stcitemen

f u t u r c ~ home price decllines. These statements are b a ~opinions, ancll:vses, estimates, forecalsts and other viof economic and o t h ' ~ r information, a.nd changles in thand other information underl:viing thesle views could materi.ally dif'fE!rent rE!sults. The impclct of future hOmon our b l l S i n 4 ~ s s , results or financial clondition will dEother factors"



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Tcible of ContentsSlideHome Price Growth Rates in the L1.S.Home Price Growttl 2006 02- L ~ 0 0 8 03 and Percentage ofFannie Mae's Single-Family Conventional Mortl;jage CreditBook of BusinessFanniE! Mae Credit Profile by Key Product FeaturesFannie Mae Credit Profile by Vintage and Key ProductFeaturesOverall Cumulative Default Rates - Overall O r i ~ J i n a t i o n s from2000 through 2008 03Fannie Mae Credit Profile by StateSingle-Family Serious Delinquency Rates by State and RegionHome Price GrowthIDecline and Fannie Mae Real EstateOwned (REO) in K E ~ Y StatesFanniE! Mae Alt-A Credit Profile by Key Product FeaturesFannie Mae All-A Loans Versus Loans Underlying PrivateLabel All-A Securiti,ssWorkouts by Type

Nonperform ing S i n l ~ I E ~ - F am iIyand Mu Itifam ily Assets



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H C ~ l 1 n e Priice Gro"vth R.ates in the U.S.__----'Fu a"'lInie Mae HOmE! Price Index

15%11.9%10.9%

10% 8.7%7.2% 7.9%

5.9%5%

0%

-5%

-10%LOOo L001 2002 2003 :2004 :2005

S ~ , P I C a s e Shiller Index 9.8% 7.7% 10.&% 1().7% 14.6% 14.7%Growth rates are from period-end to period-end.

We I ~ x p e c t 2008 IiOme price declines to be in thE! upper end of our estimated 7% to 90;., range .

2.3%f"'llUi:!!!!1

:20060.2%

-4.0%

20D-8.9%

We expect peak-to-trou9h d e c l i m ~ s in home prices Ito be in the upper end Of our estimated 15% to 19% range.Note: Using the S&P/Case-Shiller weighting method. but excluding the increased impact offoreclosurE> sales on that index. our 2008exp(vs. i -9%); our expected peak-lo-trough decline would be 20-25% (vs. 15-19%). If we included foreclosed property sales in the index, thMae Home Price Index would be 12-16% for 2008 and 27-32% peak-Io-trough. The S&PICass-Shiller Index is value-wei(lhted, whereasthe S&F'ICas8-Shilier index places greater weight on higher cost metropolitan areas. In addition, the S&PfCase Shiller index includes foexcluded from the Fanni.e Mae index and from this forecast. Foreclosure sales tend to depress the SBHCase Shiller ind'lx relative to th



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Home Price Growth ~ m 0 6 Q2 - 2008 Q3 and Percentage of IFannie Convention,al Mortgage Credi1t Book of E l u s i n e s ~ s "

w

~ ~ % : v ~

-24.6%21.6%

State wth"" ."" ."" ."..... " .. Eielow -15%

-15% to -10%-10% to -5%-5% to 0%0% to 5%Above 5%

'" ,

"',HI ' \-10.1% ,.0.,8% .....

United S t a t G ~ s -9" 7%West North Central-2.7%

West South Central14.7%S t a t e / R ~ ~ i o n Growth R2lte % .,. 0% of S i n n l e ~ F a m i l y Conventional Mortgage ' ~ r e d i t Book 1.0%of Businl!ss-by Unpaid Principal Balance

East North Ce-7.5%

2.'S%3.,'1%

13.1%

S o u r c , ~ : Fannie Mae. Based on ava!ilable data as of September :10, 2008_PR:OPRIETARY BUSINESS INFOIRIVIATION

Including subsequE!nt data may p


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Overall Cumulative Delfault Rates - Overall Originations from .2000 thro'1.'10%

'1.20% ~ ~ ~ ~ ~ ; ~ ~ ~ ~ ~ i ~ ~ ~ ~ i ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

'1.00%

0:.:: ()80%:::>.eCIl> 0.60%:::>E:::>( )

(J40%

il.20%

(100%'" '" " '" 0 ) " '" :: >:: >:: $: >:: >:: >:: >:: >:: >:: >:: >:: >:: >:: ,- >:: >:: ::;: >:: >:: >::,"

T i m ~ ~ Since Origi nationNote: Cumulative default rates include loans that have been liquidailld o1:her than II1rough v o l l J n ~ l r y pay-off or repurchase by lenders apreforeclosur's sales, sales to third parties and deeds in lieu of foreclosure,Consistent with industry trends, 2006 and 20.07 vintages pelrforming poorly, Defaults for the 2008 v i ne!Jli!JibJe,

as ofSeptember 30, 20009 is not necessarify indicative otthe uitimate performanc'l al1d are likely to Change, perhaps materially, in future PR:OPRIETARY BUSINESS INFOIRIVIATION

IAL TREATMENT REQUESTED


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Sin!9Ie-Fcunily S e ~ r i o u s Delinquency IRates by StcSeriQus Delinquency Flates byState S,eptember 30, 2007 December 31, 2007 March 31, 2008--Arizona 0.42% 0.7!i% 1.12%

California 0.30% 0.5CJ% 0.76%Florida 0.99% 1.59% 2.32%Miiciligan 1.22% 1.43% 1.46%Nevada 0.74% 1.20% 1.69%Ohio 1.60% 1.78% 1.87%

Total conventional single.-0.78% 0.98% 1.15%family I()ans

SeriQus Delinquency Rates byRegion ~ 1 ) --Midwest 1.14% 1.3!i% 1.44%

Northeast 0.79% 0.94% 105%Southeast 0.88% 1.18% 1.44%Southwest 0.69% O.8EI% 0.94%West 0.33% 0.50% 0.72%

Total conventional :single- 0.78% 0.98% 115%family loans(1) For information on which states are contained within each region, please seE' the 2008 Q3 IOorm 10'Q


June1131211

11110


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Home Price Growth/Decline ;and Fannie Mae R f ~ a l Estatle Owne(1)

S i n ! ~ I , e - F a m i l y REO and Home Pric,e Statistics for S e l e ( ; t I ~ d States

State

Arizc>mlCaliforniaFlonejaMichiganNevadaOhioO t h ~ ~ t i ~ 1 t : : : : : : _ _ ' : ~ " ; ' __=_==,=I= ' = ~ , , ' '_;":,,,'",,,= __='='ON I __ ,__ _(,I) Based on Fannie Mae Home Price Inde)(.

On a national basis, REO net sales prices compared with unpaid principal balances of mdecreased as follows, driving increases in loss severities ..'" 93% in 200S, 8'9% in 200Ei7;8% in 2007''" 74% in 200B C! 1" 74% in 200B C!2};- 70% in 200E! Q3



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Fannie Mae Alt-A Loans Versus Loans Underllying Private-Lab

L:>en Chl'lrac.-teriffilCs:FICOOriginal LOOI1-tc>-V"IUe RatioD..tmulauve l.oan--to-ValueatOrigination I I

TypeFixed RllteAdjustable Rat!

InWeslOnl'lNegafively flruortizlng

l


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WOlrikouts by TypeWorkolut Composition

40,0003 ~ i , O O O 30,D>OO

'"Ii 2!;,OOOo-120000....'o'" ' 1!i,000

10,000!i,Q,OO

2007 Q4 2001;1 Ql 20QEI Q2III Modif,ications (1) o HOlTeSaver Advance (2)III Repayment plans and forbearancescorrvleted (3) III R'eforeclosure sales (4)EJ Deeds in lieu of foreclosure (5) --

(1) Modifications involve adding past due interest amounts to the loan principal amount anel recovering theloan or through an extension of the term., and other loan adjustments.(2) HomeSaver Advance involves providing unsecured, personal loans to h'i)lp borrowers after a temporar

their delinquent mortgage loans current.(3) Repayment plans involve plans to repay past due principal and interest 'Over a reasonable period of timmonthly payments. Loans with repayment plans are included for loans that were at least ElO days delinreported loans with repayment plans only for loans that were at least 90 days delinquent. Forbearancesuspend or reduce borrower payments for a period oHime.(4) In a preforeclosure sale, the borrower, work.ing with the servicer, sells the home and pays off all or paraccrued intel"est and other expenses from tile sale proceeds.(5) Deeds in lieu of foreclosure involve the borrower signing over title to the property without the added exproceedin9.

PR:OPRIETARY BUSINESS INFOIRIVIATION


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Nonperforrniing Singlle-Family and Multifamilly ASSE!ts

On-baI2,nce sheet Single-Family and Multifamily nonperforming loansOff-balance sheef Single-Family and Multifamily nonperforming loans 11)

Carrying value of Single-Family foreclosed properties I' )Carrying value o f Multifamily foreclosed properties (2)

No>nperforming Ass,ets

of l\lonperforming l_oans to GUaraF'ty Book of Businessof Nonperforming !\ssets to Guaranty Book of Business plus Foreclosed Properties

Septemuer 30,2008

14,26149,387ei3,648

7,23790

7,327$ 7'0,975

$ 2,948,4432.2%2.4%

Repr-esE!ntEI unpaid principal balance of nonperiomling loans in our outstanding and unwnsolidated FanniE' Mae MBS held by third parties.

$$

E x c l u d e ~ s foreclosed property claims r e c e i v a b l e l ~ \ Which are reporte1j in our condensed consolidated balanc.e sheets as a c O r i l ~ , o n o r i t of "Acquired



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Fanllnie ~ ~ a e ' 2()08 ~ : : r e d l i i t S I U l p p l l ~ ~ m E ~

FebrUtary 2Ei, 2009


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!m Thesle materialls present t a b 1 E ~ s a n d other informationMae, includingl information contained iin Fanni,e Maeon Form 1O-t( for the year e n d ~ ~ d December 31, 2008,10-K." Some of the temms USE!dI in thesle materials arediscussed more fully in the 20108 Form 10-K. These mbe reviiewed together with t h E ~ 2008 FlOrm 10-1{!1 a copavailable on Fannie Mcle's W E ~ b site at w w w J ~ ; m n i e m a -"Investor Relations" slection of the VVe,b site.1m This presentcltion includes fo,rwardlc)oking stcltemenf u t u n ~ home price decllines. These statements are b a sopinilQns, anc:ll:vses, estimates, forecarsts and olther viof economic and othm' infornlCltion, and changles in tand other infl:>rmation underlyiing thesle views could materi.ally d i f f E ~ r e n t r E ~ s j u l t s . The impclc:t of future hOmon our b u s i n l ~ ! i s , results or financial condition will d E

other factors"



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Tcible of ContentsSI.ide "----Home PriGe Growth/Decline Rates in the U.S.

Home PriGe Declines Peak-la-Current (by State) as of 200804

Fannie Mae Credit Profile by Key Product FeaturesFannie Mae Credit Profile by Vinti;lge :,md Key Product FeaturesSingle-Family Cumuleltive Default R a t l ~ Fannie Mae Credit Profile by StateSingle-FalTlily Serinus Delinquency Rates by State and RegionHome PriGe Growth/[lec:iine and Fannie Mae Real Estate Owned (REO)in Selec:ted StatesFannie Mae AltcA Credit Profile by Key Product F E ~ a l : u r e s Fannie Mae Alt-A Loans. Versus Loans Underlyin(l Private-Label Alt-ASecurities

....................................

W o r k o ~ l t s by TypeLoan Modifications by Type



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H C ~ l 1 n e Priice Grovtlth/O.;!cline Rates in the LJ"S.Fannie Mae HOmE! Price Index1S{}/o

11.3%

10%

~ 5 k

IJ%

-5%

-10% ..2000 2001 2002 2003 2004 2005 2006 2

S&P/C:as;e-ShilJer Index 1.7% 10.6% 14.6% l4.7% -0.'3'% -8Growth,rates are-from perio,d...gnd to p e r i o d ~ l i m d . *Initial estimate based on purchase transactions in Fannie-Freddie a ,cqulsition and public deed data availabllEi through the end ,of DecE:mber 2008, SUppfor January and Febmary 2009. Including ~ ; u b ! ; . e q u e n t data may Ilead! to materially different results . We expect 200g horne price declines to be in the 7% to 12% range, based upon the Fannie Mae Horne Price Indecomparable to a12% to 18% range using the S&PJCase-Shilier index method.

We expect peak-to-trough dec.lines in horne prices to be in the 20% to 30% range (33'% to 46% using the S&P/Car \ l o t ~ : OUf l;1stirnates differ from the SgPICase-Shiller 'ind'x in two principal \ ~ i a y s : (1) our . e ~ t i m a t s w>;!'ighj expecjations for each individual property by number of p r o p e r t i e ~ , Whome pnce declines based on properb( value, such that d,,*clines In home prices on higher priced homes will have a greater effect on the overall result; and (2) OlIr estimates dthat differing rraintenance pr8cticE!s alld the forced n ~ t u r E ' of 1.he s a ' e ~ make then less representative of malket vall,les, - w h e r e a : ~ t h ~ ~ S&PJCase-Shi!IE!r index includes foreclosnumbers sjlown above are,calculated uSing our models andassumptions, but mcdiflEid 10. use these two facl:lrs (wveightlllg of expecations based on propertj value and the indifferenc,es, our estimates are based on our own internaliy available data c o m b i n l ~ d with publicly available data, and are therefore bclsed on data collected nationwide, w h e r e a ~available- data, which may be l i m i h ~ d In certain g e o g r a p h ! E ~ S Our comparative calculations to the S&PtCasB-Shilier index provid2d 2bove are not modified to account for thiS


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Horme Price IDleclines Peak-ta-Current (by State) as af 2008 Q4Percentage of Fannie Mae's Single-Family Conventional Mortgane Credit Book of B u s i n l

Mountain19,6%9 ~ 3 ~ f t

United Stcli4es -13.0%.

Pacific-29.2%22.1%

State Home Price DeclineBelow -15%-15% to -10%-10% to -5%- ~ ) % to 0%

"Iw

HI-14.4%0.8%

!jt

,"" West South Central-1.7%----1 7.0%

- Top %: StitelFt89ion Home Price Deciln"e Rate % from applical:lle peak. In thatstate through December 31, 2008- Bottom %: % of Single-Family COIW8,ltio'lal M o r t g a g ~ Gmdit Book, ofBusiness by Ullpaid Principal Balance as of December 31, 20013._---

West North CentralEast North-11.7

13.0%

East South Centra2.7%3.7%

are a housing stock unit-wE'ighted average of home price growth percentages of s t a t ~ ~ s within each regio. Initial estimate based on p U r C h a $ 4 ~ transactions in Fannie-Freddie ac,quisitiion and public deed data available t h r o U ~ l h the end of DeJanuary and February 2009. Including subsequent data m"IY IE!ad to materially ( U f f t ~ r e n t results.DENTIAL AND PR:OPRIETARY BUSINESS INFOIRIVIATION


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1.60%

1.40%

1.20%

.S! 1.00%

".l!!0.80% ~ m m ; ; ! r i l i :e I"

'""'":; Q,6C%E::>IJ

0.40% ~ ~ ~ ~ ~ ~ m r ~ ~ ~ i m r ~ 1 i l l j 0.20%

').00%- N - >-

S i l n ~ J l e - F a m i l y Cumulative Default I ~ a t e Qriginations from 200() through 2008

'


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S i n ~ g l e - F c l l n i l y S E ~ r i o u s l D e l i n q u e n c ~ r Rates, by StcDel:ember 31, .:00,7 March 31, 2008 June 30., .2008 Septe

--Ari;wna 0.75% 1.12% 1.51% California 0.50% 0.715% 1.05% Florida 1.59% 2.32% 3.21% Michigan 1.43% 1.4(3% 1.57% Nevada 1.20% 1.6!9% 2.25% Ohio 1.78% 1.87% 1.95%

Total conventional single- 0.98% 1.1!5% 1.36% familly loansSeric.Ul; Delinquenc:y IRates byRe.gion (1)--Midwest 1.35% 1.44% 1.57%

NOliheast 0.94% 1.0!5% 1.21% Southeast 1.18% 1.44% 1.80%Southwest 0.86% 0.94% 1.08%VIlE'S! 0.50% 0.72% 0.97%

Total conventional single- 0.98% 1.1!5% 1.36%familly loans(1) For information on which states are contained within each region, please 8ee the 200B Form 10-K Regional $DQ rate is the region divided by the total num ber of loalls in our conventiJn111 single-family book in that region.

INFOIRIVIATION


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Home Price Growth/Decline and Falnnie Mae Single-Familly Real Estate Ownl

State

CaliforniaMichiganNevadaOhioOtherTotal

20m;

145183M3,633'273,11325,28932,560

RI:O Acquisitions (Number of Properties)

"'''p ''''' I '"" Q' '" '" ' ' I , "M '"5G! 751 5,532 532 1,315 1,88793 1,681 10,624 1,477 2,918 4,399282 1,714 6,159 966 1,404 1,874

5,6911 8,067 11,749 3,259 3,035 3,4186"" 530 2,906 403 .686 1,0054,041 4,433 5,28H 1,239 1,424 1,48526,355 , 31,945 52,393 12,132 13,181 '15 ..515

36,5S([1 49,121 94,652 20,10S 23,963 I 29,583

j " 0I n v e n t o r yof Decem200;B CI4 31, 20Q

1,6H8 3,91,830 7,41,9'15 4,22,037 10,08'12 2,01,141 3,311,5fl5 32,31

20,9118 63,5 Initial estimate based on purchase transactions. in Fannie-Freddie acquisition and public deed data available through the end Clf December 20

data available for January and February 2009. I n c l u d i ~ l subsequent data may lead to materially different results.

On a national basis, REO net sales prices compared with unpaid principal balances of mdecreased as follows, driving increases in loss severities:.'" 93% in 200S,. 8'9% in 200Ei7;8% in 2007''" 74% in 200B C! 1" 74% in 200B C!2};- 70% in 200E! Q3};;- 61 % in 200e C!4



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Fannie Mae Alt-A Loans Versus Loans Underllying Private-LabI-----:F...;


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WOlrikouts by TypeWorkout Com position (Num ber of Loam;)

~ i , O O O

40,000 +3E"OIXl +1 - - - - -2{1,OCO

2:i,Ooo

:2\:),oro

"",000 i - - - - IIC!,Oro

e:.OCQ

200704 2008Q1 200802 2008Q3

1m Modifications (1) D I-b rr:eSaver Advance (2)I. Repayment plans and forbearances completed (3) .. Pre1'o rE!closure sales (4)1:1 Deeds in lieu of foreclosure (5)

200804

Medific.tions: involve changes to the original mortgage terms, that may include a c ~ l a n g e to the product type, interest rate" amortization tIncludes modifications of conventional ancl government (FHAiVA) loans.HqmeSav1r Adva nceTIV : an-unsecured, perso nal loan provided to qualified borrowers to cure a payment defaul t on a m o r t , J ~ a g e loan that wthe ability to resume r e ! ~ u l a r monthly payments on their mortgage.Repayment plans: borrowers repay past clue principal and inie,-.,st over a reasonable perioQ of time through tempor.rily higl1er monthly pfor IDans that were at lesst 60 days delinquent. OUf 2008 Form '1 O-K reports lOans with repayment 1:Jlans only for loans that were at leastsuspend (H reduce borrower payments for a period of time,Preforeclosure sales: borrowers, working with servicers, selltheir homes prior to foreclosure and payoff all or part of the outstanding Joaproceeds.Deeds in lieu of foreclo:3un::: borrowers voluntarily sign over title of their property to servicers to satisfy the first lien mortga:ge obligation an


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Loan Modifications by Typ1eModificBltion Type's (Percentolf Modified L.oans)

'100%90%80%70%60%50% -40%30%20% ---10%0%

200801 200802 200803 :

III Term Extension I I Term Extension and RateCI Capitalization of Missed Payments [I Rate Reduction1111 ARM to Fixed Rate C h a n ! ~ e

DENTIAL AND PR:OPRIETARY BUSINESS INFOIRlVlATIONAL TREATMENT REQUESTED


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Fanllnie ~ ~ a e ' : ~ 0 0 9 ' F i r ~ ; t I U l a r t ~ e ! r C l r e d i t S U I ~

Miay 8,21009



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!m Thesle materialls present t a b 1 E ~ s a n d other informationMae, includingl information cc:mtainecl iin Fannile Mae'on Form 10-C1 'for the quarter ended March 31, 2009, t1O-Q." Some of the t E ~ r m s USE!cI in thes,e materials arediscussed more fully in the 20109 Q1 Form 10(l and FAnnual Report on Form 1O-K for the ~ ' E ! a r ended DeCE"2008 Form 10-Kll, ThE!Se ma1te!rials s l h ~ : : > u l d b E ~ reviewlthe 21009 Q1 Form 10..Cl and 2008 Form 10-K, copies cavailable on Fcinnie Mae's

W E ~ b site at

w w w ~ f ~ l l l n i e m a "Investor Relations" slection of the VVe,b site.1m This presentcliion includes fOlrward-lc)c)king stcitemen

f u t u r c ~ home price decllines. These statements are b a ~opinions, ancll:vses, estimates, forecalsts and other vof economic and o t h ' ~ r information, a.nd changles in tand other information underl:yiing thesle views couldmateri.ally d i f ' f E ~ r e n t rE!sults. The impclct of future hOmon our b u s i n 4 ~ s s , results or financial cl::>ndition will dEother factors"



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Tcible of ContentsSlideHome Price GrowthlDecline Rates in the U.S.Home Price Declines Peak-to-Current (tty State) as of 2009 Q1

Fannie Mae Credit Profih, by Key Pro.juct FeaturesFllnni.e Mae Credit P r o f i l , ~ by Vintage .and Key ProduGt FellturesSingle-Family Cumulative Default Rate

Fannie Mae Credit Profile by StateSingle-Family Serious DelinquenGY Rates by State and RegionHome Price Growth/Decline and Fannie Mae Real Estate Owned (REO) in Selected StatesFannie Mae Alt-A Credit Profile by Key Product FeaturesFannie Mae Alt-A LOll118 Vers,ls Loans Underlying Private-Label Alt-A Securities

Workoluts by TypeFannie Mae Multifamily Credit Profile



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H C ~ l 1 n e Priice Grovtlth/O.;!cline Rates in the LJ"S.Fannie Mae HOmE! Price Index'15%

10.5% 11.4%10%

5%

00/0 i L::::: ;,,1 ______ r ::: ::' ':I - - - - - , - - - - - J ~ . . a ____-r ____ I:;::' 'i' "----1 ___ 1::


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Percentage of Fannie Mae's Single-Family Conventional 1 M 0 r t g a g l ~ Credit BoUnitled StatE!Si -16.5%

Pacific33,3%2;2.3%

...

State Home Price DeclineBelow -15%-"15% to -10%-'10% to -5%- ~ ) % to 0%

HI-21) .2%Q,8%

III\A

Mountain24.7%9.2%

West South Central%: S t a t e l R e ~ l i o n Home Price Dedi ne Rate % from applicabie peak in that

tom %: % of single-family convel1tional mortgage credit boc,k of,by unpaid principal balance asof ,March 3'1, 2009

-.:.7%7.0%

West North Central8.8%5.3%

East North Ce-15.8%13.0%

East South Centra-4.7%3.7%Note: R e ~ i ( l n a l home priCE! d . ~ c l i n e percentage's are a housing stock unit-weighted average of horne price decline percentages of sta

Fannie _Mae, Initial estimate based on purchase trans6J:::ticms in Fannie-Fredldie acquisition and public deed datil available thmto be settled in April and M ~ I Y l ~ 0 0 9 , Including sulbsequent data may lead to mate

INFOIRIVIATIONREQUESTED


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200%1.80%1.60%

QI 1.40%:!::!::J 1.20%0 1.00%1; 0.80%"5E 0.60%::JU

0.40%0.20%0.00%

N co '" " ( ') '"a 0 0 a 0 0, , , , , N-Note: Cumulative d ~ f a u l t rates incl'Jde loans that have been liquidated Q t h ~ r than through volunliory pay-off or repurchilse by lenders apreforeciosurE! sales, sales to third parbes and deeds in lieu of foreciosurH_

Data as of March 31, 2009 is not necessan'ly indicative of thE! ul,'imate performance and are likely to change, perhaps maten'ally, in futum



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S i n ~ g l e - F c l l n i l y S E ~ r i o u s l D e l i n q u e n c ~ r Rates, by Stc$I,rious Delinquency Rates byStatE> March 31, 200a; JunE13'O. 2008 September 30, :W08

Arizona 1.12% 11.51% 2.14%Califomia 0.76% 11.05% 1.44%f'lorida 2.32% a.21% 4.:37%Michigan 1.46% 11.57% 1.86%r ~ e v a d a 1.69% 2.25% 3.08%Ohio 1.87% 11.95% 2.19%

Total conventional single- 1.15% 11.36% 1.72%family loansSI,rious Delinquency Rates byRegion 11)

Midwest 1.44% 11.57% 1.86%Northeast 1.05% 1.21% 1.47%Southeast 1.44% 11.80% 2.34%Southwest 0.94% 11.08% 1.35%West 0.72% 0.97% 1.33%

Total convenlionalsingle- 1.15% 11.36% 1.72%family loans(1) For information on which states are contained within e ~ l c h region, referto F ~ m n i e Mae!s 2009 Q1 Form to-O.


Decem3262422

213122


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H o r m ~ Price Growth/Diecline and Fannie' Mae Reali Estate Owned (R

Ar iCaIPIC!Mi.lNeOhAll

REO Acquisitions (Number of Properties)State

2007 2

zona ! ..... .75.1 ..lifornia 1,681 11rida . 1,714 1:higan 8,067 1\1M3 1 530io 4,433:other States 31,.945 5:

IJO

)0,5),6i,1,7,,9),2~ , 8

Total 49,121 I 941,6

200801

32 63224 1,47759 96649 3,25906 40339 1,239'93 1.2,13252 20,108

200802 200

t315 12,918 4104043,035 3

686 11,424 1

13,181 1523,963 29

iH 13

8e713S19

48I55

8741OC4B5156

200804

1.6981.8304,9152,037. 8121,141

11,56520,998

REO REOI n y e n t ' ~ r y Inventa ~ > o'f as o

21009Q1 I March 31, March200B 20092,5215 f19Q 4,83.719 2 , ~ ; 7 5 8,21;680 t,ml? 3,82,415 9:125 9,51,210 /,11 2,4

713 3,084 2,51.3,111 24,.795 30,9:25,374 43:167 62,3

"'Initial estimate based on purchase tlransactions in F a n n i ~ ~ - F r e : d d i e acquiisitiion and public d e E ~ d data available tlhrough the-enpreliminary data available for home salE,S scheduled to be, settled in April and May 2009. Including subsequenil data may lea

Foreclosure IE!vels in the fourth quarter of 2008 and the first quarter of 2009 were below would have been due to the suspension of foreclosul"8 acquisitions on occupied single-fathe periods November 2B, 2008 through January 31, 2009 and February 17, 2009 througDna national baSiS, REO net sales prices compared with unpalld principal b , ~ l a n c e s of mdecreased as follows, driving increases in loss severities:

74% in 2008 Q1> 74% in 2008 Q2> 70% in 2008 Q3> 61 % in 2008 Q457% in 2009 Q1


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Fannie Mae Alt-A Loans Versus Loans Underllying Private-LabI

Fanniol Mae Alt-AVersus Private-LabE,1 SecurityConfol'ming Alt-A CUMuiati.., De'raul Rat


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WOlrikouts by Type:50,000

(/ )cco0...J-0LQ).0E::JZ

45,000 +--40,000 +-- -----135 ,000

:30,000:25,00020 ,000

15,00010,0005,000

0200801 2 P O i ~ 02 200.803 ; ~ 0 0 8 04

E l ~ Moditlcatiol1'" III HomeSavel" Adval1ceTl'!l 0 Repayment P l a 1 1 ~ Comple ted 0 Forbearance;;.: C0111pieted l1li1 )ee 'ds(1) Modifications involve changes to the original mortgage loan terms, that may include a change to the proamortization term, maturity date and/or unpaid principal balance,(2) HomeSaver AdvanceT" are unsecured, persOnal loans to help qualified bQrrowers bring th",ir d",linquentemporary financial difficulty.(3i) Repayment plans involve plans to repay past due principal and interest over a reasonablle period aftimmonthly payments. Loans wiith repayment plans are included for loans that were at leas1t 60 days delinq(4) Forbearanc;eo;involve an agreement to Sllsp'3nd or reducI, borrower payments for a period of lime. Loaincluded for loans that were at least 90 days delinquent.( ~ i J In a preforE1closure sale, the Iborrower, working with the servicer, sells the home and pays off all or partaccrued interest and other expenses from the sale p r o c e E ~ d s . (6) Deeds in lieu of foreclosure involve the borrower voluntarily signing over title to the property without theforeclosure proceeding.



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Fannie M a E ~ Multifamily C r e ~ d i t ProfiileMultifamilv Guaranty Book of BusinessAs of Ma",h :11,2009

Multi!,ByAc

: ~ m i l y Guaranty Bacik af Business {1 l (2)quisition Year:

2009200820072006200520"04 md EarlierQriginatilng loan-to-value ratio:._---Less tl11an or equal to 80%Greate'r than 80%Loan!$iZJe Distribution:Less tlI1an or equal to $75DK._---Greate r ttlan $750K or less than or equal to $ 3 ~ , GreateGreat,GreateMatu"LoansLoansLoansLO_8nsLoans

---------

'r than $3M or less t h ~ n or equal to $5M'r than $5M or less than or equal to $25M,r $25MIty Dates:mEltur-ihg ,in 2009ffi2lturing in 201 an",turing in 2011marturing in 2012maturing in 2013

Unpa;c, PI"incipal Balanclei I ) ; l I i o n ~ ) $172.57

$10.14$31.36$43.52$19.45$17.57$50.53

$164.70$7.87

$5.48$23.59$17.10$69.08$57.32

$10.88$4.31$8,79$16.24$19.55

Share of MGUaranty B,jQI,ullifamilyII pf B u s i n ~ s s '100%

6C}1'"1825+----1110'+----29

95

I{,Ib

I{,I{,

I(,

5 ~ : !J

"3 ~ ' I{,14tl

1040(133 I(,

6 ~ ' "3 ~ ' !J

5 ~ : "9 ~ ' .,11 Ib

----------------(1) Excludes loans that have been defeased. DefElaSance is prepayment of -a loan through substi1ution.of collateral, such as Treasury securities.(2) R e p r e s e n t ~ the portl'O)" fo r Which Fanl1ie Mae ha's' aedess to t:letalied 1 6 a l l ~ J e v e l informallotl. Certain' data: are b a ~ e ' d upon 'infonl'l


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Fanllnie ~ ~ a e ' 2 ~ U ~ 9 ~ ) e c c . l n d ~ : l u a l r t e r

(:re(jitS l

A U ~ l u s t 6, 2:009



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!m Thesle materialls present t a b 1 E ~ s a n d other informationMae, includingl information cc:mtainecl iin Fannile Mae'on Form 10-C1 'for the quarter ended Jlune 30, 2009, th1O-Q." Some of the t E ~ r m s USE!cI in thes,e materials arediscUissed more fully in the 20109 Q2 Form 10(l and FAnnual Report on Form 1O-K for the ~ ' E ! a r ended DeCE"2008 Form 10-K." ThE!Se ma1te!rials s l h ~ : : > u l d b E ~ reviewlthe 21009 Q2 Form 10..Cl and 2008 Form 10-K, copies cavailable on Fcinnie Mae's

W E ~ b site at

w w w ~ f a n n i e m a e . ~ ~ = - -"Investor Relations" slection of the VVe,b site.1m This presentcliion includes fOlrward-lc)c)king stcitemen

f u t u r c ~ home price decllines. These stai:ements are b a ~opinions, ancll:vses, estimates, forecalsts and other vof economic and o t h ' ~ r information, a.nd changles in tand other information underl:yiing thesle views couldmateri.ally d i f ' f E ~ r e n t rE!sults. The impclct of future hOmon our b u s i n 4 ~ s s , results or financial cl::>ndition will dEother factors"



63/139

Tclble of ContentsS l i d E ~

Hom" Price G r o w t h / D , ~ c I i n e Rates in the U.S.Hum', Price Declines Peak-to-Current (by State) as of 200,102Fannie Mae Credit PmfilEl by Key P r o d ~ J c t FeaturesFannie Mae Credit Profile by Vintage and Key Product Features

.....................................

Fannie IllIae Single-Family CUmulative l J e l ' " u ~ Rate.Fannie Mae Credit Pmfil" by StateFannie l\lIaeSingle-Family Serious Delinquency Rates by State and RegicnHome Price Growth/D,aciine and Fannie Mae Real EstatE, Owned (REO) in Selected State,;Fannie Mae Alt-A Credit I ~ r o f i l e by Key Product Features

.....................................

Fannie IllIae Alt-A Loans Versus Loans Underlying Private-Label Alt-A SecuritiesFannie Mae Workouts by TypeMaking Home Affordable Program (HAMP)Fannie Mae Modifications of Single-Family Delinquent L"ansFannie Mae Multifamily Credit Profile by Loan Attributes

.....................................

Fannie Mae Multifamily Credit Pr()file by Acquisition ' lear



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Percentage of Fannie Mae's Single-Family Conventional 1 M 0 r t g a g l ~ Credit BoUnitled StatE!Si -16.1%-,',

Pacific 3 4 . ~ % 2;2.7%

,.- *,Home, Price Declin,.

Below -15%-15%to -10%-10% to -5%

HI-21.0%(1.8%

lIII \.

MountainWest North Central

-6.3%

5% to 0%West South Central - ! ! I I I I I I I I I I , l v i W ' ~ / %: S t a t e l R e ~ l i o n Home Price Dedine Rate % from apPlicabie-p'e""';'O"h""-' -1.0o/q \:June 30, 2009%: % of Fannie Mae s i n g l e - f < l m l l ~ r conventional m O ~ J - a g E f credit book:bU,siness.tJy uilpaid principal palance_tlSofJune-3D, 2009 7.0%

Eelst North Ce-14.3%12.9%

South Central3.6.%

Note: R e ~ i ( l n a l home priCE! d ~ ~ c l i n e percentages are a housing stock unit-weighted average of horne price decline-percentages of staFann ie .Mae, Initial estimate based on purchase transilJ:::ticms in Fannie-Fredldie acquisition and public deed datil available thmdata may I ~ a d 110 materially diffe,'enll results.

INFOIRIVIATIONREQUESTED


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Fannie Mae Credit Pro,fiile by t(ey PJr(lduct F : e a t U I "Credit Characteristics of Single-Family C o n v l ~ n t i o n a l Mortgage Credit Book

0) Loan\,- witt"! r'n1J,lfiple p r o ~ l u c 1 f ~ a t u r ( f S ,are includ1';:!d in ,all ~ p p ' l i ~ a t J ! e Q ~ I , 1 e : g o r l e s . Thl7 su):rlqt,al is ca1c:uJate:r,I bY,cou-,nting a loan only o r i , ~ 1 : ? even if i,1 ,i$ i t J c ; I , \ J q e(2) Excludes n o n - F a n n i l ~ Mae securities held in portfolio dnd Ali-A and subpn


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Male S i n g l [ e ~ - F a m i l y CUl1nulative' Default RatOveralll Originations from 200() tllrough 201)9 02

2.20%2.00%1.80%

1.60%140%:!::"i1 1.20%0

l1J 1.00%>" 0.80%E"U 0.60%

040% iiii:ii:ii':i:ii:i!ii!iii:i:ii:i:iii:ii:i!ii!ii)0.20%0.00%

'" (' 0 " e, '" " N '" ., - N '" ". ",f ' ) " N '" " . '" , t ...-- C'" (Y') .,,-C;,-!q a 0 0 a aaaaa a a a CI oaaaaoa o a a ooaao a ,..!. 0J . c ' ~ N N r0 f'1 M ,,)- ,,)- ,,)- .+ (1) ..n th L0 r.b ,cO W r!. r,L " ' ~ ob cO cO cb;; >= >= >= >=: >: >= >= >= >= >= >= >= >= >= >=: >: >= >= >= >= >= >= >= >= >= >: :t: >= >= >= >=Time Since E!elginning of Origination Year

Note: Defau lts include loan Ii'quidations other than through voluntary pay-off or r e p u r c ~ l a s e by lenders ami in.:lude loan foresales,_ sales to third parties and deeds in lieu of'foreclosure. Cumulative Default Rate is-the total humber () f defaulted loans total originated loans.Data as of June 30, 2009 is not necessarily indicative of the ultimate performance anel are likely to chan(ls, perhaps materi



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Fannie M a E ~ SingleFamily S 4 ~ r i o u s Delinquency R a t E ~ s by SSeriOllS Oelinquency Rates b)'State June 30, 21)08 Sepllember 30, 2008 Dece m be r3'1, :!O08

Arizona 1.51% Z.14% 3.41%California 1.05% 1.44% 2,30%FIQlida 3.21% 4,37% 6,14'%Michigan 1.57% 1.86% 2,64'%Nevada 2.25% :3.08% 4.74%Ohio 1.95% :2.19% 2.68%

Total convEentional sing IEe- 1.36% 1.72% 2.42%family loansSerious Delinquency Rates b),Region (1)

Midwest 1.57% 1.86% 2.44%Northeasl 1.21% 1.47% 1.97%Soultleasl 1.80% :2,34% 3,27%SouthwEest 1.08% 1,35% 1,98:%West 0.97% 1,33% 2,10%

Total conventional single- 1.36% 1.72% 2.42%family loans(1) For informatimi on which stat,es are included in eacll re.gion, refer to FSlnnie Mae's 2 0 0 ~ 3 Q2 Form 10-Q.

REQUEsTED

Marc5383733

324233


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H o r m ~ Price Growth/Diecline and Fannie' Mae Reali Estate Owned (RRIEO Acquisitic.m: (Number of Properties) REO REO

20M 03 1200804(1)12009 Q1 11 )Inventory InvenState Ias of ,June as of J2007 200B 2009 Q2 i1) 30 2008 30,20,

Arizona 751 5,532 1,8:"7 1/$98 2,526 2,879 1,97'6 4,California 1,681 10,624 4,399 1,830 3,719 4,444 4,814 8F:I()rida 1,714 6 , 1 5 ~ 1,874 1,915 1.1380 2,876 2,681 . 4,Michigan 8,067 11,749 3,418 2,037 2,415 3,306 10.263 9,Nevada 530 2,906 1,.005 812 ,210 1,.337 1,205 2,Ohiio 4,433 5,289 1,485 1,141 713 1,349 3.402 2,All uther States ;, 1,945 52,39:0 1(i,of5 11,565 13.111 1 5 , ~ O 4 ;29830 :01TQtal 49,121 94,652 2 f i , ~ i ~ 3 2Q,998 25,374 32.,.095 54,173 62,

(1) FOf!closure I!vels were lE;!sS than they othE;!rwise-wQufd hqve been because of Fannie Mae's foreclosure mOf21torium on Qccuper,iods November 26, 2008 through January 31,2009 and February 17., 2009 throLi9h iVlarch 6, 2Dq9. al)d its directive to delhas exhausted all other foreclosure prevention alternatives.(2) Initial estimate based on purchase transactions in Falnnie.,.Freddie acquisition and public; deed data available through the endmay lead to materially different results.On a national basis, REO net sales prices compamd with unpaid principal balances of modElcreased as follows, drilling increases in loss sevE3rities:

j r i'4% in 2008 02> 1'0% in 2008 Q ~ l > 61 %in 2008 04j r 57% in 2009 (,)'1> b4'Yo in 2009 02



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Fannie Mae Alt-A Loans Versus Loans Underllying Private-LabF a ~ , " i " Mae Alt-A Versus Private-label Security Conf,orn1ing Alt-A

FICO

Qrigi,naf l . o a n - ~ o - V a l u e RatiqCombined Loan-to-ValueRatio :at Origination ('1)GeographyCali1forniaFloriida

Product TypeFixed R a t ~ Adjustable-Rate

I ( l t l ~ r e s t - O n l y Negative-AmortizingInvestor

Fannie Mae Alt-AOutstanding hlt.A loanJ3.in Fannie Mae's SingleM

Family Guaranty. l:look,ofBusiness as of M,:lY 2009

718

Gl%77%

2ZA:,H%

72%28%20A:,3%18A:,

Private ..Label Alt-AOutstal1ding loans

backing non-agencyConfq.rming Alt-A MBS

as of May 2009

710

75%

81%

27%13%

sq%50%25%20%21%


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Fannie M a E ~ 1WorkolUlts by Type

(/ )Cco0....I-0LQ).0E::JZ

50 , 000

4S , 0 0 0 + - -40 , 000

3!:;,OOO

3 0 , 0 0 0

2.E;,OOO

20 . 000

1[:>,000

10 , 0 0 0

n,ooo + - - -o+---

200802 200803 20013 04 200[ Em . t v l o d i f i c a t i o l l ~ : . H 0 1 1 1 e S a v ' ~ r Ad",--,.'ulce CIRepaynlent plans Coulp l eted o l : " o r b e ~ u - a 1 ; l c , ; , s '_'orupleted

(1) Modifications involve change'; to the original mortgage loan terms, which may include a change to the product typmaturity date andlor unpaid principal balance.(2) HameSaver Aclvance are unsecured, personal loans to help qualified borrowers bring their delinquent mortgagefinancial difficulty.(3) Repayment plans involve plans to repay past dUE! principal and interest over a reasonable period afl ime through tpayments. Loans with repayment plans "re included for loans that were at least 60 days delin,!uE,n!.(4) ForbearancHs involve an agmernent to suspend or reduce borrower payments for a period of time. Loans with foloans that were at least 90 days delinquent.(5) Deeds in lieu of foreclosurH involve the borrower voluntarily signin9 over title to tile property without the added exp(6) In a prefQreciosure sale, the I,arrower, workin>! with the servicel', sells the horne and pays off all or part of the outsother expenses from the sale proceeds.fJo\E1: Modification data through 2009 Q2 does not refiect the impact of the Administration's Making Home Affordable Program, whichIlnfol'mation on Home Affordable Modific:ation Program is provided on Slide 14.



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Hc.rne A f f ( ) r d a b I I E ~ Modificatiolrl Pro'll"am ( t i J ~ M P ) HI Details first announoed in March 2009.I I Applies to loans owned or guaranteed by Fannie MMac, and non-agency loans m e e t i n ~ 1 the HAMP elig

r e q u i r E ~ m e n t s . HI Aimed at helping borrowers either currently d e l i n q u ~imminent risk of default.I I Borrowers who are at risk of foreclosure must be eveligibiliity under the HAMP before any other workouconsidered.01 As reported by s e r v i G E ~ r S as part of tlhle Making HomProgram, there have been approximately 8 ~ ) , 0 0 0 triastartecl on Fannie Mae loans througlh July 30, 2009I I Borrowers must satisfy the terms of a trial modificatperiocl of three! or four months before a modificationprogram becomes effective.



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Fannie M a E ~ lModificClltions of S i n g l e ~ - l F a m i l y Delinquent Loa

1O(J%

Change in Montlhly Principall .andInterest P:ayment(1H2)

R e - p E ~ r f o r m a n C I Single Fa% Gurrent and

gem !lerforming* Q2205()% Months postJ()% modification 46()%50%

4"'30%2()'%

10%!l%

Q21\S QWil '''''' Q l 0 ~ [] C:rc:Jase g-rootEf than '"1% ct Princi:lal 'and Interest PaymHl'to Decrease of less than cr Equal to 20Ya in Principal and Interest PaymentIII ~ ' - k : l C h a n ~ l e in Principal and IntelestD Inc'reas'e in PrincifE.1 arid Interest P-afriient

0209

Ej months postmodification 3H months postmodification 2

Includes loans Ilhal paid-off

(1.) Excl,Ljdes ! Q E m ~ ~ h a t were classjfied as ~ u p p r j r n e a d j J J ~ t a b l ~ ~ t e mortgages ~ h a , t were !noqified jnto fixed ra,t-e m Q r t g a g ~ s a:nd we(2) Represents the (;hange in the monthly principal and interest payment at the modification effect.ive Oate. The mOl1thly principal avary, and may increase, during the remaining life of the loan.Note' Modification data through 2009 02 do not reflect t[Hl! impact of the A d m i n i ~ ; t r a t i o n ' s Makin'fl Home Aff-ordable Program" which waHome Affordable Modification Program is provided on Slide' 14.



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Fannie I \ j ~ . a e Mulltifamlily C r t ~ d i t Pr'()file b ~ , LoaA ~ o f June , ~ ( I l i l l Totat Multifami y Guaranty Book of Business (1\(2)Originating 10an;toNalue- i'-atlo:Less than Of e!:1ual to 80%Greater than 80%loan Size Dis t r i b ~ t i o n : LesS,than or 8 (:lU.1 to $750KGreater than $Greater than $

7501< or less than .'qual to $3M3M or less than equai to $5M._---

Greater than $ 5M or less than equal to $25MGreater than $ 25MC red it E hnam:-ed Loans:'Credit EnhancE,dNon-Credit Enl'lanced

!j :Maturity Oat",Loans maturin!Loans rnaturinf

ain 2009 (4)in 2010(4)

La.ans maturin!,)in2011, - - -,) in 2012Loam, maturin\---

Lo.ems m a t w i n ~ ) in 2013._--Loans m a t u r i n ~ .J in 2IJ14 and Beyond._---

Unpaid II'rincipal Balanc.e( B i l i l i o n ~ ) ..................... ,

---$176.69

$167.10$9.59

$4.47$23.15$"16.94$71.42$(;0.71

$158.23$'18.46

$9.46$4.57$8.69$'16.15$:i946

$118.37

SbareoO............ E!oo, ~ u I 1 I i f a n i i l y Guara,qr , a ~ ~ h ) e s s ~ 100%

95%5%

3%13%10%40%34%

90%10%

5%3%5%9%11%67%

('l)Excludes loans that have been defease,d. Defeas ance is prepaymen1 of a loan -1hrDugh-slfbstitution of collateral, such as Treasur)i' securities.(2)Represents the portion for vvhich Fannie Mae has access to detailed loan-level information, which c o n s t ~ u t 8 " i approximately -a::1% of its total multifam2009. Certain daia are based upon information received from third-party source:s, and alihough Fannie Mae generally considers itlis information relfor any particul:;lJ P!JI"pose.p)lnciudes multifamily loans and securilies.lhai are_6_0 days or rnme p;ast due.(4)lncludes Joans backing Dis count Mortgage Backed Securities (DMBS), which are securities with maturities of between three alld nine months. Whiba:cking. the.m have. maturities:lyprcal of oth.er.muJlifarni.lv mortga';:Jes. Appro'J


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Fannie M C l E ~ Multifamily Credit Profile bY' Acquisition 1.20% 11.00%

Serious Dellinquency Rate,s by Acquisition Yearr 2oo72 0.80% j ~ 0 0 6 ro 0.60% 2008 / . .'0Ul Q.40%0.20%0.00% . ; ; : ; ; ? ! ~ ~ \ ;c:=..' ... ~ - ~ : : : I I I ~ ~ ~ $ p ~ ~ , --- , ,---- ,Yeara Year1 Year2

- 2002-2004

Year3

y ear Relative to Ac:quisinon- - 2 005 - - ; ~ 0 0 6 - - 2 0 0 7

Y

- , 2

I Unpa:id.Principal..BalauceiBillion$) . Shar.. Al'.l'IIultifamily . G 1 J ' 'A$ Of June 30, 21)09Total Multifamily Guaranty Book of B u s i n E ~ s s (1)(2)By Aequ'isition Year:200920082007200620052002 -- 2004Prior t ~ ) 2002

- - - - , - - -

I - - ~ - - - ' - . $'176.691--.,----,--$16.49

- ~ - - - - - $32.53- ~ - - - - $43.76-1-- - - - -$19_66

$1708

. 11---- $30.25$16.92

o f . l ~ u $ i n e $ $ 100%

1

9%18%25%11 %10%17%10%

(1) Excludes loans Jha'! have been defeased D t ~ f e a s a n c e is pre p;;ry rnent of a loan through ~ ~ u b s t i t u t j C ! n of collelteml, such lS Treasury securities.(2) F ~ e p r e . . s e n t s the pori ion fDr which Fannie IVlew has access tD delailed loan-level information, which consliiuiBs approximately 83% of its total m u l t i f a r n ~ . ~ 0 0 9 .. Certain data are. hase d upon infom1ation received "from thirdparty sources, and aUhoug"h Fannie Mae. generally considers this in"forma1ion reliabfor any particular purpose.(3) Il1cJudes m u l l i f a m i ~ 1 loans and securities that are 60 days or mQre past due.



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Fanllnie ~ ~ a e ' ~ ~ ~ ~ 0 9 'Thilr,d QlJartE!r C:I-edit: S U I

Novenlber ft, 2009



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February 26, 2010

Fannie Mae

2009 Credit Supplemen




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These materials present tables and other information aincluding information contained in Fannie Maes Annua

Form 10-K for the year ended December 31, 2009, the 2Some of the terms used in these materials are defined amore fully in the 2009 Form 10-K. These materials shoutogether with the 2009 Form 10-K, copies of which are aInvestor Information section of Fannie Maes Web sitwww.fanniemae.com.

Some of the information in this presentation is based u

that we received from third-party sources such as selleof mortgage loans. Although we generally consider thisreliable, we do not independently verify all reported info

This presentation includes forward-looking statementshome price declines. These statements are based on ouanalyses, estimates, forecasts and other views on a varand other information, and changes in the assumptions

information underlying these views could produce materesults. The impact of future home price declines on oresults or financial condition will depend on many othe




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Table of ContentsSlide

Home Price Growth/Decline Rates in the U.S.

Home Price Declines Peak-to-Current (by State) as of 2009 Q4

Fannie Mae Acquisition Profile by Key Product Features

Fannie Mae Credit Profile by Key Product Features

Fannie Mae Credit Profile by Origination Year and Key Product Features

Fannie Mae Single-Family Cumulative Default Rate

Fannie Mae Credit Profile by State

Fannie Mae Single-Family Serious Delinquency Rates by State and Region

Home Price Growth/Decline and Fannie Mae Real Estate Owned (REO) in Selected States

Fannie Mae Alt-A Credit Profile by Key Product Features

Fannie Mae Alt-A Loans Versus Loans Underlying Private-Label Alt-A Securities

Fannie Mae Workouts by Type

Home Affordable Modification Program (HAMP)

Fannie Mae Modifications of Single-Family Delinquent Loans

Fannie Mae Multifamily Credit Profile by Loan Attributes

Fannie Mae Multifamily Credit Profile by Acquisition Year




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Home Price Growth/Decline Rates in the U.S.

We expect peak-to-trough declines in home prices to be in the 17% to 24% range (comparable to a 32% to 40% range using thNote: Our estimates differ from the S&P/Case Shiller index in two principal ways: (1) our estimates weight expectations for each individual property by number of properties, w

expectations of home price declines based on property value, causing declines in home prices on higher priced homes to have a greater effect on the overall result; and (2) o

foreclosed homes because we believe that differing maintenance practices and the forced nature of the sales make foreclosed home prices less representative of market valu

sales of foreclosed homes. The S&P/Case Shiller comparison numbers shown above for the peak to trough forecast are calculated using our models and assumptions, but m

expectations based on property value and the inclusion of foreclosed property sales). In addition to these differences, our estimates are based on our own in ternally availa

therefore based on data collected nationwide, whereas the S&P/Case Shiller index is based only on publicly available data, which may be limited in certain geographic areas

S&P/Case Shiller index provided above are not modified to account for this data pool difference.

S&P/Case-Shiller Index 9.8% 7.7% 10.6% 10.7% 1

Fannie Mae Home Price Index

6.7%5.7%

8.1%7.4%

10.6%11.4%

2.6%

-4.0%

-10.1

-15%

-10%

-5%

0%

5%

10%

15%

2000 2001 2002 2003 2004 2005 2006 2007 200

* Initial estimate based on purchase transactions in Fannie Freddie acquisition and public deed data available through the end of December 2009, supplemented by prelim

2010. Including subsequent data may lead to materially different results.

Growth rates are from period-end to period-end.




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United States -16.4%

West North Central

-5.9%

5.2%

Mountain-25.6%

8.9%

West South Central

-1.0%

6.9%

East South Central

-3.8%

3.6%

East North Centra

-15.4%

12.6%

Pacific

-34.4%

23.5%

Initial estimate based on purchase transactions in Fannie Freddie acquisition and public deed data available through the end of December 2009, s

January and February 2010. Including subsequent data may lead to materially different results.

Home Price Declines Peak-to-Current (by State) as o

- Top %: State/Region Home Price Decline Rate % from applicable peak in that

state through December 31, 2009

-Bottom %: % of Fannie Mae single-family conventional guaranty book

of business by unpaid principal balance as of December 31, 2009

State Home Price Change

In excess of -15%

-15% to -10%

-5% to 0%

-10% to -5%

Note: Regional home price decline percentages are a housing stock unit-weighted average of home price decline percentages of states w

ND

0.0%0.1%

WV-3.7%0.2%

OH-9.7%

2.6%

WI-7.4%1.7%

IN-4.6%

1.2%

SC-7.3%

1.3%MS

-5.3%0.5%

AL-3.5%1.1%

TN-4.9%

1.4%

KY-1.8%

0.6%

MO-6.6%1.5%

IA-0.5%0.6%

NE-2.5%

0.4%

KS-0.3%0.5%

LA-0.7%

0.9%

AR-2.7%

0.5%

OK-0.9%

0.6%

TX-1.1%4.9%

SD-1.4%0.2%WY

-7.3%

0.2%

NM-8.6%0.6%

CO-7.0%2.4%

MT-5.7%

0.3%

MI-31.0%

2.7%

AZ-44.1%2.7%

IL-16.6%4.3%

-1

3

FL-45.37.0

GA-14.2%2.9%

MN-16.2%

1.9%ID

-18.9%

0.5%

UT-15.8%1.0%

NV-54.1%1.2%

OR-18.3%1.7%

WA-16.4%3.4%

CA-41.3%17.3%

AK4.4%0.2%

HI22.0%

0.8%




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Fannie Mae Acquisition Profile by Key Product FeCredit Characteristics of Single-Family Business Volume (1)

(1) Percentage calculated based on unpaid principal balance of loans at time of acquisition. Single family business volume refers to both

purchase for our mortgage portfolio and single family mortgage loans we securitize into Fannie Mae MBS.(2) FICO Credit scores reported in the table are those provided by the sellers of the mortgage loans at time of delivery.

(3) Refinance under Home Affordable Refinance Program (HARP) represented 5.5% of total refinances from April 2009 to December 31

Acquisition Year 2009 2008 2007

Unpaid Principal Balance (billions) 684.7$ 557.2$ $ Weighted Average Origination Note Rate 4.93% 6.00% 6.51%

Original Loan-to-Value Ratio

60% and 70% and 80% and 90% and 100% 0.4% 0.1% 0.1%

Weighted Average Original Loan-to-Value Ratio 66.8% 72.0% 75.5%

FICO Scores(2)

0 to < 620 0.4% 2.8% 6.4%

>= 620 and < 660 1.5% 5.7% 11.5%

>=660 and < 700 6.5% 13.9% 19.2% >=700 and < 740 17.2% 21.7% 22.6%

>=740 74.4% 55.8% 40.1%

Missing 0.1% 0.1% 0.1%

Weighted Average FICO(2) 761 738 716

Product

Fixed-rate 96.6% 91.7% 90.1%

Adjustable-rate 3.4% 8.3% 9.9%

Alt-A 0.0% 3.1% 16.7%Subprime 0.0% 0.3% 0.7%Interest Only 1.0% 5.6% 15.2%

Negatively Amortizing 0.0% 0.0% 0.3%

Refinance(3)

79.9% 58.6% 50.4%

Investor 2.5% 5.6% 6.5%Condo/Coop 8.2% 10.3% 10.4%




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Data as of December 31, 2009 are not necessarily indicative of the ultimate performance of the loans and performance is likely to chang

Note: Defaults include loan liquidations other than through voluntary pay off or repurchase by lenders and include loan foreclosures, p

third parties and deeds in lieu of foreclosure. Cumulative Default Rate is the total number of single family conventional loans in the gu

originated in the identified year that have defaulted, divided by the total number of single family conventional loans in the guaranty bo

identified year.

Fannie Mae Single-Family Cumulative Default RaCumulative Default Rate of Single-Family Conventional Guaranty Book of Bu

Overall Originations from 2000 through 2009 Q4

2

2002

2003

2004

2005

2006

2007

2008

20090.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%1.6%

1.8%

2.0%

2.2%

2.4%

2.6%

2.8%

3.0%

3.2%

3.4%

Yr1-Q1

Yr1-Q2

Yr1-Q3

Yr1-Q4

Yr2-Q1

Yr2-Q2

Yr2-Q3

Yr2-Q4

Yr3-Q1

Yr3-Q2

Yr3-Q3

Yr3-Q4

Yr4-Q1

Yr4-Q2

Yr4-Q3

Yr4-Q4

Yr5-Q1

Yr5-Q2

Yr5-Q3

Yr5-Q4

Yr6-Q1

Yr6-Q2

Yr6-Q3

Yr6-Q4

Yr7-Q1

Yr7-Q2

Yr7-Q3

Yr7-Q4

Yr8-Q1

Yr8-Q2

Yr8-Q3

Yr8-Q4

Yr9-Q1

Yr9-Q2

Yr9-Q3

Yr9-Q4

Yr10Q1

Time Since Beginning of Origination Year

Cumulative

DefaultRate




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Fannie Mae Single-Family Serious Delinquency Rates by Sta

(1) Calculated based on the number of loans in Fannie Maes single-family conventional guaranty book of business within e

(2) Select Midwest states are Illinois, Indiana, Michigan and Ohio.

(3) For information on which states are included in each region, refer to Fannie Maes 2009 Form 10-K.

State December 31, 2008 March 31, 2009 June 30, 2009 September 30,

Arizona 3.41% 5.00% 6.54% 7.87%

California 2.30% 3.33% 4.23% 5.06%

Florida 6.14% 8.07% 9.71% 11.31%

Nevada 4.74% 7.05% 9.33% 11.16%

Select Midwest States(2) 2.70% 3.36% 4.16% 4.98%

All conventional single-familyloans

2.42% 3.15% 3.94% 4.72%

Region(3)

Midwest 2.44% 3.02% 3.71% 4.42%

Northeast 1.97% 2.53% 3.20% 3.91%

Southeast 3.27% 4.24% 5.21% 6.18%

Southwest 1.98% 2.45% 3.07% 3.71%

West 2.10% 3.06% 3.96% 4.77%

All conventional single-familyloans

2.42% 3.15% 3.94% 4.72%




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Home Price Growth/Decline and Fannie Mae Real Estate Owned (RE

(1) Fannie Maes REO acquisitions and REO reflect the impact of Fannie Maes foreclosure moratoriums in late 2008 and early 2009 and

delay foreclosure sales until the servicers have exhausted foreclosure prevention alternatives.

(2) Initial estimate based on purchase transactions in Fannie Freddie acquisition and public deed data available through the end of Decem

preliminary data available for January and February 2010. Including subsequent data may lead to materially different results.

(3) Select Midwest states are Illinois, Indiana, Michigan and Ohio.

2007 2008 2009 2009 Q1(1)

2009 Q2(1)

2009 Q3(1)

2009 Q4(1)

Arizona 751 5,532 12,854 2,526 2,879 3,172 4,277 3,929

California 1,681 10,624 19,565 3,719 4,444 5,304 6,098 7,454

Florida 1,714 6,159 13,282 1,680 2,876 4,053 4,673 4,227

Nevada 530 2,906 6,075 1,210 1,337 1,885 1,643 2,094

Select Midwest States(3) 16,678 23,668 28,464 4,643 6,930 7,834 9,057 17,476

All other States 27,767 45,763 65,377 11,596 13,629 18,711 21,441 28,358

Total 49,121 94,652 145,617 25,374 32,095 40,959 47,189 63,538

State

In

D

3

REO

Inventory

as of

December

31, 2008

REO Acquisitions (Number of Properties)

2008 Q4 2009 Q1 2009 Q2 2009 Q3 2009 Q4

61% 57% 54% 54% 56%

REO Net Sales Prices Compared With Unpaid Principal Balances of Mortgage Loans




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Fannie Mae Alt-A Loans Versus Loans Underlying Private-Label

Note: Private-label securities data source: First American CoreLogic, LoanPerformance data, which estimates it captures

(1) Includes first liens and any subordinate liens present at origination.

(2) Fannie Mae's cumulative default rates reflect the impact of Fannie Maes foreclosure moratoriums in late 2008 and eardelay foreclosure sales until the servicers have exhausted foreclosure prevention alternatives.

(3) The Cumulative Default Rate is based upon the number of months between the loan origination month/year and de

Data as of November 2009 are not necessarily indicative of the ultimate performance of the loans and performance is likely

periods.

Fannie Mae Alt-A Private-Label Alt-A

Outstanding Alt-A loans

in Fannie Mae's Single-

Family Guaranty Book of

Business as of November

2009

Outstanding loans

backing non-agency

Conforming Alt-A MBS

as of November 2009

FICO 718 709

Original Loan to Value Ratio 73% 76%

Combined Loan to ValueRatio at Origination (1) 77% 81%

Geography

California 22% 27%

Florida 12% 14%

Product Type

Fixed Rate 72% 51%

Adjustable Rate 28% 49%

Interest Only 20% 24%

Negative Amortizing 3% 20%

Investor 18% 21%

Fannie Mae Alt-A Versus Private-Label Security Conforming Alt-ACumulative Default Rates For Fannie M

For 2005, 2006 and 20

0%

2%

4%

6%

8%

10%

12%

14%

Months Sin

CumulativeDefaultRates

2005 PLS 2005 FNM 2006 PLS

2007




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Fannie Mae Workouts by Type

Modifications involve changes to the original mortgage loan terms, which may include a change to the product type, inmaturity date and/or unpaid principal balance. Modifications include completed modifications made under the Administ

Modification Program, which was implemented beginning in March 2009, but do not reflect loans currently in trial modif

program. Information on Fannie Mae loans under the Home Affordable Modification Program is provided on Slide 15.

Repayment plans involve plans to repay past due principal and interest over a reasonable period of time through temp

payments. Loans with completed repayment plans are included for loans that were at least 60 days delinquent at initia Forbearances involve an agreement to suspend or reduce borrower payments for a period of time. Loans with forbeara

loans that were at least 90 days delinquent at initiation.

Deeds in lieu of foreclosure involve the borrowers voluntarily signing over title to the property without the added expenproceeding.

In a preforeclosure sale, the borrower, working with the servicer, sells the home and pays off all or part of the outstandother expenses from the sale proceeds.

HomeSaver Advance TM are unsecured, personal loans designed to help qualified borrowers bring their delinquent mortemporary financial difficulty.

NumberofLoans

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2008 Q4 2009 Q1 2009Q2 2009Q3

Modifications Repayment Plans Completed Forbearances Completed Deeds-in-Lieu Preforeclosure Sales




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Provides immediate payment relief to borrowers who are delinquent or in imdefault.

We require servicers to first evaluate all Fannie Mae problem loans for HAborrower in default is not eligible for HAMP, our servicers are required to exh

alternatives before proceeding to foreclosure. The number of HAMP trials increased substantially in Q3 2009 and Q4 2009

permanent modifications to increase significantly as trial periods are comple

modification offers are extended. However, it is difficult to predict how many

completed.

Home Affordable Modification Program (HAMP)

(1) At the time a HAMP trial becomes a permanent modification, it is classified as current and not included in our SDQ figures.

Data Source: United States Treasury Department as reported by servicers to the system of record for th

2010-09-21 fannie mae counsel letter to the fcic

Documents