Environmental,
Social, and Governance
Report2022

ESG REPORT / TABLE OF CONTENTS

Table of Contents
Introduction
Letter From the CEO
At a Glance
About Fannie Mae
About This Report
Our Approach to ESG
Spotlight: Connecting Investors to Our Mission

2
2
3
5
7
8
9

GovernanceCorporate Governance & ESG Oversight
Risk Management
Business Ethics
Data Privacy & Security
Regulatory Engagement

AppendixSocialHousing Affordability
Housing Stability
Spotlight: Racial Equity in Housing FinanceCommunity Engagement
Human Capital Management

Environment
Climate Risk & Resilience
Green Homes

13
13
20
23
25
28

41

Additional Resources
Data Tables
Assurance Report
SASB Index
TCFD Index
Disclaimers

41
43
45
46
48

49
49
50
68
69
75
76

32
32
39

Published June 30, 2023

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TABLE OF CONTENTSINTRODUCTION / LETTER FROM THE CEO

2022 ESG Report

Introduction
Letter From the CEO
On behalf of all my Fannie Mae colleagues, I am excited
to present our second annual Environmental, Social, andGovernance (ESG) report.
For Fannie Mae, ESG is more than a priority as a leading financial
company. It is a framework that helps us manage our businessand prioritize our actions, powered by our mission: to facilitate
equitable and sustainable access to homeownership and quality,
affordable rental housing across America.
You will see our social responsibility come to life in the many ways
we serve renters, homebuyers, and homeowners.
Housing affects all aspects of society — from where we growup and live our lives, to the stability of our communities andour financial well-being. Fannie Mae is passionate about serving
people across the country, including by knocking down barriers
to affordable rental housing and homeownership for historicallyunderserved populations.
To that end, Fannie Mae is pursuing new ways to informand educate homebuyers and new solutions to lower down
payments and closing costs. We believe our breakthroughinitiatives to help renters build credit to potentially become
homeowners hold incredible promise. World 50, a global
community of business leaders, honored Fannie Mae for“innovation in creating scalable solutions and systemic change
in diversity, equity, and inclusion.” It shows how Fannie Mae’s
workforce helps us better see and serve a diverse nation.
Our housing mission also drives our environmental actions.

working to understand our climate risk exposures and promoteresiliency strategies to mitigate the impact of climate change forthe people whose homes we finance. This helps to protect ourcompany and the housing finance system.
Also, our pioneering Green Bond issuances are helping to meetthe demand for more efficient and sustainable homes. We arepleased that the U.S. Environmental Protection Agency and U.S.
Department of Energy awarded Fannie Mae their 2023 ENERGYSTAR® Sustained Excellence designation for being “Partner of theYear” for nine years running.
Finally, we recognize that Fannie Mae cannot achieve our housing
mission and ESG goals without the strong corporate governance
we describe in this report. Our governance structure reinforces thefoundation of our enterprise and helps ensure that we achieve our
housing mission with safety, soundness, and sustainability.
All in all, this report is a tribute to our talented and dedicatedcolleagues across Fannie Mae who keep driving our business,housing mission, and ESG performance forward. I am proudof their work and inspired by their relentless commitment to
America’s housing.
Priscilla Almodovar, Chief Executive Officer

Among the credit, market, and other risks we monitor andmanage in our business operations, Fannie Mae is actively© 20 2 3 Fan n i e M ae

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INTRODUCTION / AT A GLANCETABLE OF CONTENTS

At a Glance
Fannie Mae at a glance

In 2022, Fannie Mae acquired mortgages supporting:

1.2M

598K

single-family
home purchasesof which nearly half were
for first-time homebuyers

886K

multifamily unitsof which a significant
majority reported rents
affordable to low-to-moderateincome households1

Fostering an engaged
and inclusive workforce

Supporting the transition
to greener buildings

single-family refinancings

Our financing can be used to improve thesustainability of single-family and multifamily
properties by increasing energy and water efficiency
and reducing greenhouse gas emissions.

As of Dec. 31, 2022, Fannie Mae owned or
guaranteed approximately:

27%

21%

of U.S. single-family
mortgage debt outstanding2of U.S. multifamily
mortgage debt outstanding2$10.5Bin Green Bonds issued in 2022

backed by loans that were estimated to achieve:

59K
more energy- and water-efficienthousing units financed in 2022

through our Green Rewards and Green Building
Certification multifamily financing products andmortgages backing our Single-Family Green Bonds.
Read more on Sustainable Bonds,
Green Financing, and Their Impacts >

888M

41K

116M

of projected sourceenergy savings3

of projected
greenhouse gas
emissions prevented3

of projected watersavings3,4

mtCO2ekBtu

We value a diverse workforce and an inclusive
workplace, and we leverage Fannie Mae’s position in
the marketplace to promote diversity and inclusionin the housing finance industry.
Racial or
ethnic minorities
as of December 2022

Women
as of December 2022

58%

28%

44%

39%

of ourworkforceof officer-level
employees5of ourworkforceof officer-level
employees5

gallons

Increased our paid
parental leave benefit to

9 in 10

12 weeks

would recommend Fannie
Mae to friends and family
as a great place to work.
as of October 2022

and added a caregiver benefit
with the same amount to takecare of a seriously ill family
member(s).

Read more >Read more >employeesof paid leave

1 Based on rents reported at loan origination. Rents may change following loan origination.
2 Based on internal estimates using data from the Federal Reserve Board of Governors’ “Financial Accounts of the United States” (Z.1) release, Q4 2022.
3 Sum of single-year projected savings for each loan. Savings are likely to continue beyond one year. kBtu is one thousand British thermal units, a unit of energy measurement. MtCO2e is metrictons of carbon dioxide equivalent.
4 Multifamily Green Bonds only.
5 Officers are employees with job titles that include Fellow, Vice President, Senior Vice President, Executive Vice President, President, and CEO.
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INTRODUCTION / AT A GLANCETABLE OF CONTENTS

We help make access to housing in the United States more attainable, affordable,
and stable for low- and moderate-income borrowers and renters.
Enabling access to affordable housing
In 2022, we acquired loans
enabling home purchases6 for$10.3B

539K

in financing

single-family mortgage
applications

provided in 2022 for Multifamily
Affordable Housing properties
with restrictions that limit
rents or impose income limits
on renters.

first-time homebuyers

and

276K

low- and very low-income households

Helping homeowners, homebuyers, and renters

2.9K

benefited in 2022 from ourinnovative new program enabling
lenders to consider timely rent
payments as a positive factor inmortgage underwriting.

Read more >Read more >Read more >Building financial and credit confidence

179K

people completed the HomeView®
homeownership education course in 2022

105K

rental units onboarded

which Fannie Mae developed to help equip aspiring
homebuyers with information to become successful
and confident homeowners.

into our Multifamily Positive Rent Payment Reporting
Pilot program in the last four months of 2022, enablingthese households to make their on-time rent payments
count toward building their credit.

Read more >Read more >Advancing equity in housing finance$32.7B
single-family
mortgages acquiredin 2022from minority- and/or
women-owned firms.
Read more >330

Released ourEquitable Housing
Finance Plan

Launched theSingle-FamilySocial Index
Framework

scholarships provided

which outlines a range of
specific actions we aretaking to help knock down
housing barriers faced byhistorically underserved
communities.

to aspiring appraisal
professionals in 2022 through theAppraisal Diversity Initiative, which
is designed to help make a housing
appraisal career accessible to adiverse pool of talent.

aimed at providing
insights into sociallyoriented activities in theresidential real estate
financing market.

Read more >Read more >Read more >6 First-time homebuyer and low- and very low-income homebuyer categories are not mutually exclusive. If applicable, a loan may be included in both categories.
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TABLE OF CONTENTSINTRODUCTION / ABOUT FANNIE MAE

About Fannie Mae
Who we are
The Federal National Mortgage Association, better known as
Fannie Mae, is a purpose-driven company by charter and bychoice. Our business supports mortgage lenders by providing
mortgage financing to help people buy or rent a home. We help
make the popular 30-year fixed-rate mortgage possible, enabling
predictable mortgage payments over the life of the loan andgiving homeowners stability and peace of mind.
Our charter, an act of Congress, establishes our purposes:
to provide liquidity and stability to the residential mortgage
market and to promote access to mortgage credit. This mandate
includes facilitating mortgages on housing for low- andmoderate-income families involving a reasonable economic
return that may be less than the return earned on otheractivities. Congress declared that our operations should be
financed by private capital to the maximum extent feasible. With
these Congressional intentions in mind, we have, principallyusing private capital, provided liquidity in the secondary market
and expanded housing opportunities throughout the U.S. Fannie
Mae is committed to maintaining safety and soundness as wework to fulfill this mission.
We do not originate mortgage loans or lend money directly toborrowers. Rather, we work primarily with lenders who originateloans to borrowers. We acquire and securitize those loans into
mortgage-backed securities that we guarantee (which we referto as Fannie Mae MBS or our MBS). Our revenues are primarily
driven by guaranty fees we receive for assuming the credit risk onloans underlying our MBS. As of December 31, 2022, we owned
or guaranteed mortgage assets representing an estimated
27% of single-family mortgage debt outstanding and 21% of
multifamily mortgage debt outstanding in the U.S.7

7 Based on internal estimates using data from the Federal Reserve Board of Governors’ “Financial Accounts of the United States” (Z.1) release, Q4 2022.

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INTRODUCTION / ABOUT FANNIE MAE

TABLE OF CONTENTS

Our business segments

supply also decreased the volume of loans for home purchase.
Most outstanding mortgage borrowers as of late 2022 hadmortgage loans with rates well below prevailing market rates,
which creates a strong disincentive to refinance.

We have two reportable business segments: Single-Family
and Multifamily.

Of the single-family mortgages we acquired in 2022, over a third
financed primary residences affordable to low-to-moderateincome households.9 Approximately 539,000 of the mortgages
we acquired in 2022 were to first-time homebuyers.

Single-Family
Our Single-Family Business acquires mortgage loans secured
by properties containing one to four residential dwelling units,delivered by over a thousand lenders across the U.S. in 2022.
Fannie Mae’s position in the housing finance value chain meansthat we help set standards that apply nationally to conventionalmortgage financing.8 Those standards include lender business
requirements, credit and underwriting guidelines for loans weacquire, eligibility requirements for properties underlying theloans, servicer requirements for ongoing administration of theloans, and standards for borrower assistance and loss mitigation.

Multifamily
Our Multifamily Business provides mortgage market liquidity
primarily for properties with five or more residential units, which
may be apartment communities, cooperative properties, seniors
housing, dedicated student housing, or manufactured housing
communities. Multifamily housing is an essential part of the U.S.
housing supply: there are 44 million renter households in the
U.S., and 46% of those households live in multifamily units.10

Our Single-Family Business provided $615 billion in liquidity
to the mortgage market in 2022, enabling the financingof 1.2 million home purchases and 886,000 refinancings.
Macroeconomic trends pushed mortgage interest rates higher
in 2022, leading to a decrease in the volume of refinance loanacquisitions. Housing affordability constraints plus limited

Overall, our Multifamily Business provided $69 billion in
multifamily mortgage market liquidity in 2022. A significant
majority of units financed were affordable to low-to-moderateincome households.11

MORTGAGE LOANS ACQUIRED DURING THE YEAR BY UNPAID PRINCIPAL BALANCE AT ACQUISITION(Dollars in billions)$1,358.9$1,354.8$947.8$903.4Single-family
refinance loans$596.0$614.9Single-family homepurchase loans$283.3$236.9Multifamily loans$312.7

$70.2

2019

$411.1

$76.0

2020

$451.4

$69.5

2021

$378.0

$69.2

2022

8 Our acquisitions of single-family conventional mortgage loans are subject to maximum original principal balance limits, known as “conforming loan limits,” which are adjusted
each year based on the Federal Housing Finance Agency’s (FHFA) housing price index. In most of the U.S., the conforming loan limit for mortgages secured by one-family
residences was set at $647,200 for 2022.
9 Low-income borrowers are those with incomes of 80% of Area Median Income (AMI) or below; low-to-moderate-income borrowers are those with incomes of 100% of AMI or
below. Percentages are based on number of loans and not unpaid principal balance.
10 U.S. Census Bureau, 2021 American Community Survey 1-Year Estimates.
11 Based on rents reported at loan origination. Rents may change following loan origination. For additional information on multifamily affordable housing acquisitions, see Table 3.
Multifamily Housing Mortgage Acquisitions by Year, by Select Characteristics in the Data Tables section of the Appendix.
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INTRODUCTION / ABOUT THIS REPORTTABLE OF CONTENTS

About This Report
This annual Environmental, Social, and Governance (ESG)
report provides information on Fannie Mae’s business andoperations with a focus on social impact, sustainability, andresponsible governance.
Some of the information included in this report has beenpreviously disclosed in other voluntary and mandated reporting,including on our website, in our annual reports on Form 10-K
filed with the Securities and Exchange Commission (SEC), andin previous ESG reporting. Additional details may be available inthose and other complementary disclosures. Please see the listof Additional Resources in the Appendix to this report.

Our approaches to the disclosures included in this report
may be different from those included in mandatory
regulatory reporting, including under SEC regulations,and we can provide no representation or assurance that
our internal approach is consistent with other investment
criteria, taxonomies, standards, or guidelines. Any goalspresented in this report are aspirational; as such, we makeno guaranty or promise that these goals will be met. While
this report describes events, including potential future
events, and priorities that may be significant from an ESG
perspective, any significance does not necessarily equate
to the level of materiality of disclosures required under
U.S. federal securities laws.

Scope of the report
The information included in this report is as of and for theyear ended December 31, 2022, unless otherwise noted. This
report focuses on our priority ESG topics identified throughinternal and external stakeholder engagement and additional
topics relevant to investors, ESG reporting standards, and ESG
ratings organizations.

Alignment to independent
reporting standards
The report includes specified information prepared inaccordance with the SASB Standards for Mortgage Finance(our primary SASB industry), Commercial Banks, andInvestment Banking and Brokerage as set forth in Note 1:
Basis of Presentation in the SASB Index of this report.12
In addition, we refer to the Task Force on Climate-related
Financial Disclosures (TCFD) framework to inform this report’s
preparation. Please see the SASB and TCFD indexes in the
Appendix for more information.

Portions of this report that are aligned to the SASB Standards
are denoted by banners indicating the associated metric.
SASB Example

Text responsive to SASB Standards appears within the SASB tags.
SASB Example

Limited assurance
Fannie Mae engaged Deloitte & Touche LLP (Deloitte) toperform a review engagement on management’s assertion
related to the specified information referenced in the SASB Index
as of and for the years ended December 31, 2022, 2021, and 2020.
Deloitte’s report can be found on p. 68 of this ESG Report.

12 We have modified certain metrics to reflect Fannie Mae’s position in the secondary mortgage market. The SASB Index in the Appendix of this report explains these modifications
as well as changes from our 2021 ESG Report. See our 2021 ESG Report for an explanation of changes from our 2020 SASB Report.

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INTRODUCTION / OUR APPROACH TO ESGTABLE OF CONTENTS

Our Approach to ESG
Fannie Mae exists to make affordable housing a reality for
millions in the U.S. by providing stability and liquidity in the
housing market. Fannie Mae’s strategy builds on this mission,
set forth in our charter, while keeping the safety and soundnessof the housing market at the forefront. Our strategic plan isdesigned around two core objectives — improving accessto equitable and sustainable housing and enhancing ourfinancial and risk positions.13 Our corporate strategy integrates
our environmental, social, and governance priorities, which
are informed by market analysis and internal and external
stakeholder engagement.

below that emerged from that assessment guide and focus ourwork to realize our mission and positively impact the lives of
millions of borrowers and renters in the U.S.
Realizing scalable, positive impact while mitigating risk
requires thoughtful integration of our ESG priorities
throughout our business. Our ESG team works to deepen
our understanding of our ESG priorities and solutions tothe challenges they present, benefiting from enterprisewide connectivity and visibility, engagement with external
stakeholders, and Board-level oversight.

Since 2018, we have conducted assessments periodicallyto deepen our understanding of the overall housing financelandscape, prioritize the topics that are most relevant to ourbusiness and stakeholders from an ESG perspective, and adapt
our ESG strategy and disclosures accordingly. The 14 priorities

13 For more information on our strategic plan, see our 2022 Form 10-K, p. 4.

Fannie Mae’s priority ESG topics (in alphabetical order):14• Business ethics• Green homes• Climate resilience• Housing affordability• Climate risk

• Housing stability• Community engagement• Human capital management• Data privacy & security• Racial equity in housing finance• Diversity & inclusion• Regulatory engagement• ESG integration• Risk management

14 Topics were identified based on their relevance to our business from an ESG perspective, their impact on society, and our capacity to impact theissue at scale, among other factors.

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INTRODUCTION / CONNECTING INVESTORS TO OUR MISSIONTABLE OF CONTENTSSPOTLIGHT

Connecting Investors to Our Mission
Fannie Mae’s mission has long been to facilitate equitable andsustainable access to homeownership and quality, affordable
rental housing across the U.S.

Green and Social Bonds
Fannie Mae issues labeled Green Bonds backed by single-familyloans and labeled Green and Social Bonds backed by multifamilyloans. These securities abide by our Sustainable Bond Framework,
which is aligned to global standards set forth in the International
Capital Markets Association (ICMA) Green Bond Principles and 27.8
Social Bond Principles.

Our Sustainable Bond Framework also incorporates ourMultifamily and Single-Family Green Bond Frameworks, which
received Light Green and Good Governance Second Opinionsfrom CICERO Shades of Green.15 In addition, CICERO gave ourmultifamily Green Rewards Mortgage Loan product (see below)
a Light to Medium Green rating.

ANNUAL GREEN AND SOCIAL MBS ISSUANCE(UPB at issuance, Dollars in billions)$0.5

Our Sustainable Bond Framework
Our Sustainable Bond Framework, first published in 2020and updated in 2022, details the processes and criteria we
use to distinguish our Social and Green Bond offerings. The
$27.8
13.9
Sustainable Bond Framework received a second-party opinion$22.8
from Sustainalytics. Fannie Mae’s sustainable bonds finance$20.2
assets that we believe align to the following United Nations
Sustainable Development Goals: Goal 1 (No Poverty), Goal 7(Affordable and Clean Energy), Goal 10 (Reduced Inequalities),and Goal 11 (Sustainable Cities and Communities). Under our$3.9
Sustainable Bond Framework, eligible categories for use ofproceeds of social bonds include Access to Essential Services, 0.0
2012-16 2017 2018 2019
Socio-Economic Advancement and Empowerment, andMF Green
MF Green and Social
Affordable Housing, per the ICMA Social Bond Principles 2020.

$1.4
$9.8
$0.1

$0.6

$11.2

$0.6
$13.0

$12.9
$8.5

2020

2021

MF Social

2022
SF Green

15 Please see the CICERO Shades of Green second opinions for multifamily and single-family frameworks.

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TABLE OF CONTENTS

The Social and Green Bond designations are not mutually
exclusive. In the chart above, the “MF Green” category represents
MBS that only met the criteria for Multifamily Green Bonds; the“MF Social” category represents MBS that only met the criteriafor Multifamily Social Bonds; and the “MF Green and Social”
category represents MBS that met the criteria for both Multifamily
Green Bonds and Multifamily Social Bonds.

Green Bonds
Fannie Mae began issuing Green Bonds in 2012, and through2022 we cumulatively issued $112.1 billion in Green MBS.
The balance of Fannie Mae Green MBS outstanding as ofDecember 31, 2022 was $93.8 billion. According to the Climate
Bonds Initiative, as of December 2022, Fannie Mae was thelargest cumulative issuer of green bonds in the world.

Multifamily Green Bonds
We issue Multifamily Green Bonds through two types of
securities: Multifamily Green MBS and Green Fannie Mae
Guaranteed Mortgage Structures (GeMS™). To be included in
Fannie Mae Multifamily Green MBS, the underlying loan mustbe either a Green Rewards Mortgage Loan or a Green Building
Certification Mortgage Loan.
Multifamily Green MBS are generally backed by one loan and
one property. These bonds benefit from the same features
as our other Multifamily MBS, including certain prepayment
protections, credit policies, and Fannie Mae’s guaranty of timely
principal and interest payments. The underlying mortgage
loans must also conform to Fannie Mae’s Multifamily GreenINTRODUCTION / CONNECTING INVESTORS TO OUR MISSION

Bond Framework, which outlines our requirements andcommitment to accountability, transparency, and impact
reporting in green financing. In 2022, Fannie Mae issued$9.1 billion in Multifamily Green MBS.
Green GeMS are pools of Multifamily Green MBS that areresecuritized in a real estate mortgage investment conduit(REMIC). Green GeMS offer investors geographic or propertytype diversity, larger-size investments, and customized cash
flows to fit investor preferences. GeMS deals are backed by
the same Fannie Mae guaranty of timely payment of principal
and interest as the underlying MBS pools. In 2022, Fannie Maeissued $781 million in Green resecuritizations.

Single-Family Green Bonds
Single-Family Green MBS are backed by pools of mortgage
loans secured exclusively by newly constructed single-family
homes with green building certifications.16 To be eligible,
these homes must meet or exceed the national program
requirements for ENERGY STAR® Certified Homes, Version 3.0.17
Fannie Mae’s Single-Family Green Bond program relies on green
building certifications that have stringent requirements as towhat constitutes an energy-efficient residence and requires
independent validation of the certifications. In 2022, Fannie
Mae issued $1.4 billion in Single-Family Green MBS.
For more information on our financing energy- and waterefficiency improvements in multifamily and single-family
housing, see the Green Homes chapter, Table 11. Green Bond
Issuance, and Table 12. Projected Green Bond Impacts in the
Data Tables section of the Appendix.

16 More information can be found on our website’s Single-Family Green MBS page.
17 “About the ENERGY STAR Residential New Construction Program,” 2019. Energystar.gov.

Supporting greater diversity in the investor community
Fannie Mae developed the ACCESS® program in 1992 to promote diversity within the capital markets. ACCESS provides
opportunities for diverse-owned broker-dealer firms to distribute Fannie Mae’s fixed-income securities to the investor
community. We include ACCESS dealers in our debt issuance transactions, single-family and multifamily MBS trading,and credit risk transfer transactions. Please see our Community Engagement chapter for more information.

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TABLE OF CONTENTSINTRODUCTION / CONNECTING INVESTORS TO OUR MISSION

Multifamily Social Bonds

Security-Level Reporting

Fannie Mae issued its first Multifamily Social Bonds in 2021 tobetter connect interested investors to our loans financing thecreation and preservation of affordable housing. Securities
eligible for our Multifamily Social MBS designation include
those composed of loans financing affordable housing
units with and without rent and/or income restrictions,manufactured housing communities, and Healthy Housing
Rewards™ properties.

Because many fixed-income investors are interested inenvironmental and social metrics related to their specificinvestments, Fannie Mae provides a variety of ESG information
at the security level:

As with our Multifamily Green MBS, our Multifamily Social MBS
are generally backed by one loan and one property and benefit
from the same features as our other Multifamily MBS. We
also resecuritize Multifamily Social MBS for investors seeking
geographic or property-type diversity, larger-size investments,
and customized cash flows to fit investor preferences.

• Projected impacts of Green and Social Bonds are available
on our website, published each year to include theprevious year’s issuance.

See Table 4. Multifamily Social Bond Issuance in the Data
Tables section of the Appendix.
The Social and Green Bond designations are not mutually
exclusive — in 2022, $587 million of the multifamily bonds
we issued met our criteria for both Social and Green labels.
A substantial majority of the units at the properties backing
these securities were affordable (at the time of issuance) totenants with incomes of 60% of Area Median Income (AMI)or less. The owners’ commitment to install energy-efficient
improvements with Green Rewards or secure a Green Building
Certification with energy-efficiency prerequisites resulted in
the creation of sustainable housing alternatives for low- andvery low-income households.

• At-issuance and ongoing annual metrics on whole
multifamily property energy and water performance,
including ENERGY STAR Score and EPA’s Water Score, areavailable in DUS Disclose®.

• Single-Family Social Index scores are available in PoolTalk®
and Data Dynamics®.
• Multifamily Restricted and Rent-based Affordability (as ofloan acquisition) are available in DUS Disclose.
For more details about Fannie Mae’s existing Green Bond
disclosures, please see our Green Bond Disclosures At a Glance
guide on our website.

Social Index
In 2022, Fannie Mae introduced the Single-Family Social Index
as a flexible and scalable solution to provide investors withinsights into our mission-oriented activities in the residential
real estate financing market, while also being designed to help
preserve the confidentiality of mortgage consumers’ personal
information.18 We designed the index so that it can be refinedover time to suit the needs of investors and evolving market
practices and standards.

18 As of the date of this report’s publication, Fannie Mae has not labeled any Single-Family MBS issuances as “social” bonds. In February 2023, FHFA issued a Request for Input on
Fannie Mae’s and Freddie Mac’s Single-Family social bond policies and program design. Feedback from investors, second-party opinion providers, and other market participants
will inform how to approach potential social-labeled issuance. For more discussion about privacy and disclosure, see Fannie Mae’s “Disclosure and Privacy: A Delicate Balance,”
published in August 2022.

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INTRODUCTION / CONNECTING INVESTORS TO OUR MISSIONTABLE OF CONTENTS

We provide Social Index scores on our single-family MBS pools
based on a pool’s concentration of loans meeting certain
criteria that reflect lending in service of Fannie Mae’s mission.19
The Social Index currently evaluates loans against eight social
criteria, grouped under three dimensions. We do not disclose
individual loan scores. We evaluate loans at time of acquisition,
and we calculate pool-level metrics based on the compositionof pools when they are issued.

ELEMENTS OF SOCIAL INDEX METHODOLOGY

Dimension Current Criteria20
Income

Low-income borrowers (household income is
80% of Area Median Income (AMI) or below)

Borrower

Minority borrowers (at least one borrower
identifies as a racial or ethnic minority)
First-time homebuyers (at least one borrower isa first-time homebuyer and household income
is 120% of AMI or below)

We score MBS pools on two pool-level metrics:• Social Criteria ShareTM (SCS) is the percentage of loans in apool that meet at least one of our eight social criteria.
• Social Density ScoreTM (SDS) reflects the layering of social
attributes. Each loan is scored on a zero-to-three scale
based on the number of dimensions its criteria matches
fall in. The SDS is the average score of the loans in the pool.
Pool-level SDS is capped at 2.5.

Property

HISTORICAL SHARE OF FANNIE MAE ACQUISITIONSMEETING CURRENT SOCIAL INDEX CRITERIA
65%

Low-income area (home located in designatedlow-income area and household income is120% of AMI or below)
Minority tract (home located in designatedminority tract and household income is 120%of AMI or below)
High-needs rural (home located in designatedhigh-needs rural area and household income is120% of AMI or below)
Designated disaster area (home located indesignated disaster area and householdincome is 120% of AMI or below)

60%
55%

Manufactured housing (home is manufactured
housing and household income is 120% of AMI
or below)

50%
45%
40%
35%
30%

14
20
15
20
16
20
17
20
18
20
19
20
20
20
21
20
22

13

20

12

20

11

20

20

20

10

25%

% of Loans% of UPB

19 We provide Social Index scores for most active and inactive pools issued since January 2010.
20 Loans on second homes are not eligible for any criteria. Households with income greater than 120% of Area Median Income are not eligible for most social criteria, with the
exception of the “minority borrower” criterion, reflecting the homeownership gap between minority consumers and non-Hispanic white consumers that is persistent acrosshousehold income levels.

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SOCIAL / HOUSING AFFORDABILITY

2022 ESG ReportSocialNUMBER AND SHARE OF OWNER-OCCUPIED HOME-PURCHASE
MORTGAGES ACQUIRED, BY LTV RATIO AT ORIGINATION(in thousands)

Population: single-family loans on the consolidated balance sheet

Housing Affordability
Fannie Mae supports the U.S. housing market by acquiring 1200
and guaranteeing mortgage loans made by lenders andissuing MBS backed by those mortgage loans. Our business
900
model helps to bring housing affordability to renters andborrowers around the country.

Single-family housing affordability

600

Fannie Mae acquires single-family mortgage loans from lenders
who originate those loans to borrowers. Single-family mortgage
300
loans finance properties with one to four residential units.
We are working to enable aspiring homeowners to overcome
barriers to affordable homeownership. The mortgage loans we
0acquire include options for low down payment financing andconsumers with limited or no credit history.

Easing the burden of upfront costs
For low-income and first-time homebuyers, covering the upfront
costs for down payment and closing can be a major barrier.21
Fannie Mae eases this burden by allowing low down payments
and down payment assistance.
Loans with as little as 3% down are eligible for financing
under Fannie Mae’s guidelines. HomeReady® is a Fannie Maeloan product designed to help our lender partners serve
creditworthy low-income borrowers.22 In 2022, Fannie Mae
acquired over 79,000 HomeReady loans.

1,279

1,235
98 (8%)
62 (5%)

112 (9%)67 (5%)

370 (30%)397 (31%)

192 (16%)191 (15%)1,002
108 (11%)60 (6%)
303 (30%)
158 (16%)362 (29%)354 (28%)259 (26%)151 (12%)158 (12%)113 (11%)

2020

2021

2022

≤ 60% LTV Ratio> 80% to 90%> 60% to 70%> 90% to 95%> 70% to 80%> 95%

Fannie Mae also allows funds for part or all of down payment
and closing costs to come from a variety of sources, including
gifts, grants, Community Seconds®, or sweat equity. Our
Community Seconds program makes it possible for borrowers
to get conventional mortgage financing while also receiving
home purchase assistance through certain secondary mortgage
financing programs that meet Fannie Mae’s responsible lending
requirements. In 2022, we acquired over 26,000 loans that hadreceived Community Seconds assistance.

21 For more information on closing costs as an obstacle to homeownership, see Nuno Mota and Mark Palim, “Barriers to Entry: Closing Costs for First-Time and Low-Income
Homebuyers,” Fannie Mae Working Paper, 2021.
22 The income limit for HomeReady eligibility is 80% of Area Median Income (AMI). Both first-time and repeat homebuyers are eligible. Eligibility requirements for HomeReady also
apply to our related product HFA PreferredTM.

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Overcoming credit history barriers

Payment History program — borrowers were deemed eligible for
Fannie Mae financing when they otherwise might not have been.

The vast majority of Fannie Mae’s single-family loan acquisitions
are mortgages for which borrower credit score information is
NUMBER AND SHARE OF OWNER-OCCUPIED
available. However, historically underserved consumers are
MORTGAGES ACQUIRED, BY FICO SCORE AT ORIGINATION(in thousands)
underrepresented by traditional methods of credit scoring, which
can reinforce racial disparities in access to credit. Fannie Mae is 5000
Population: single-family loans on the consolidated balance sheet
focused on enabling the assessment of borrower creditworthiness
4,272
4,193
in an inclusive, equitable, and responsible manner.
321 (8%)222 (5%)4000594 (14%)
Fannie Mae has a solution for homebuyers with a history of
650 (15%)
on-time rent payments — even if their credit profiles have not
436 (10%)426 (10%)previously captured such payments. Beginning in 2021, we
3000
enabled mortgage lenders to incorporate a borrower’s positive
rent payment history in the mortgage credit evaluation process
through our proprietary automated underwriting system,
Desktop Underwriter® (DU®). With permission from mortgage
applicants, lenders can electronically pull and submit a reportwith 12 months of bank account data to the underwriting
platform, and DU identifies rental payments appearing inthe statement data. Only on-time monthly rent payments
are considered to improve eligibility; any records of missed
or inconsistent rent payments do not negatively affect theapplicant’s ability to qualify for a loan eligible for sale to Fannie
Mae. In 2022, approximately 2,900 single-family mortgage
applications benefited from the Single-Family Positive Rent

2000

1000

0

580 (14%)568 (13%)742 (18%)723 (17%)

1,618 (39%)

1,583 (37%)

1,787
190 (11%)330 (18%)210 (12%)261 (15%)290 (16%)505 (28%)

2020
< 680

2021
680 – 719
780 – 850

720 – 739

2022
740 – 759

760 – 779

FICO Not Available

23

23 From 2020 to 2022, there were about 1,000 mortgage acquisitions without FICO
scores per year, which were less than 0.1% of total owner-occupied single-family
mortgage acquisitions for any individual year.

Making rent payments countRental payments can be one of the largest recurring monthly expenses for most households, but they are notcurrently widely reported to credit bureaus. We are helping more renters demonstrate their creditworthinessby making rental payments count toward their credit scores. Individuals with stronger credit scores may havean easier time qualifying for rental housing or mortgage financing, have lower security deposit requirements,
and be offered lower costs for auto, small business, or education financing.
Our Multifamily Positive Rent Payment Reporting pilot program, launched in 2022, connects participating
multifamily property owners with three fintech companies that enable rent payment reporting to credit
bureaus. By facilitating this connection, Fannie Mae aims to accelerate the adoption of rent payment reporting
throughout the multifamily industry. The program is designed to impact participants’ credit profiles in apositive direction only. Participants may opt out of the program if they prefer, and those who miss a payment
are automatically unenrolled to preserve their credit standing. Between September and December 2022,
105,000 rental units were onboarded under our Multifamily Positive Rent Payment Reporting pilot. Over 7,000
renters established credit scores during that period.

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In 2022, Fannie Mae also made enhancements to its automatedunderwriting system to enable an evaluation of a borrower’s
monthly cash flow to responsibly expand access for homebuyers
who do not have a credit score. The improvements simplify theevaluation of a borrower’s monthly cash flow in the credit risk
assessment and automate the documentation of nontraditionalsources of credit.

Putting quality housing within reach
The supply of housing influences home prices and affordability.
Fannie Mae is committed to unlocking the potential of properties
in need of repair and enabling financing for affordable options
like manufactured housing.
The cost of renovation and repair may limit the attractivenessof otherwise affordable properties. Fannie Mae’s HomeStyle®
Renovation loans improve affordability and flexibility by allowing
financing based on the value of the home after improvements are
made, enabling homeowners to access additional upfront funds tofinance improvements as part of a home purchase or refinancing.
To help preserve housing supply, Fannie Mae also invests
directly in improvements to our real estate owned (REO)
properties, conducting repairs on a majority of the properties
we acquire.24 We invested approximately $65 million in the
repair and rehabilitation of the REO properties we sold in 2022.
Improvements, which may include installation of energyand water-efficient products and remediation to addressenvironmental or health issues, help make the homes moresustainable and support sales to owner-occupant buyers.
Our First Look™ program provides homebuyers and nonprofit
organizations access to properties on HomePath®, our online
platform for REO sales, without competition from investors
for the first 30 days a property is listed for sale. To support
opportunities for affordable homeownership, in 2022 we alsobegan marketing a closing cost concession of up to 3% of the
HomePath property sales price to owner-occupant buyers witha household income equal to or less than the Area Median
Income. In 2022, 76% of our single-family REO property sales
were to owner-occupant homebuyers.

24 REO refers to residential properties owned by Fannie Mae as a result of servicer-completed foreclosures or deeds-in-lieu of foreclosure.

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We also partner with other organizations who are investing intheir communities. Community First by Fannie Mae™ provides
approved public entities and community-minded organizations
that leverage REO properties to support their housing-related
missions exclusive purchase access for a limited time prior to
Fannie Mae pursuing repairs or listing the property for sale.

purchasing MH more difficult, including difficulty obtaining
financing.25 Fannie Mae markets MH loan products as a suite ofoptions (MH Advantage®, standard MH, and single-wide MH). In
2022, Fannie Mae provided $4.4 billion in liquidity to the singlefamily manufactured housing market.26

Manufactured homes (MH) also serve as a significant sourceof affordable housing available for low- and moderate-income
borrowers. The cost to purchase or rent MH tends to be lower
than for site-built homes. However, certain factors can make

25 For more information on the manufactured housing market in the U.S., see Fannie Mae’s Duty to Serve Underserved Markets Plan, 2022 – 2024.
26 This figure includes loans eligible under Fannie Mae’s Duty to Serve program and those financed outside of Duty to Serve eligibility.

Understanding affordability
We use the term “affordable” in multiple contexts in this report. In general, it describes housing costs at a levelthat typically should not strain the budget of a given household.
For single-family mortgages, we use the mortgage borrower’s household income as an indicatorof affordability. For renters, we consider either rental cost or rent restrictions reported at mortgage
origination. To account for variations in regional costs of living and incomes, we categorize householdincomes relative to Area Median Income (AMI).
Some of the multifamily properties we finance have restrictions that limit the rents that can be charged
to renters and/or impose income limits on the individuals or households who reside in the units. These
restrictions may be part of a federal, state, or local policy or program that encourages the production orpreservation of affordable housing. In some cases, preferential financing terms or availability of financing arecontingent on an owner maintaining a certain number of rental units at a certain rent or income-eligibility level.
Affordable housing is not limited to rent- or income-restricted units or properties; units that are within budgetof low- or moderate-income residents even without rent or income limits or subsidy-related restrictions inplace are sometimes referred to as “naturally occurring affordable,” “unrestricted affordable,” or “market-rateaffordable.” Properties without rent or income restrictions that are affordable at the prevailing market rate area vital component of the overall supply of affordable housing.
We measure unit affordability based on restrictions and rent rolls reported at loan origination. Rent-based
measures of affordability also include rents for any restricted-affordable units.27 Rents may change subsequent
to origination, and restrictions may expire.
27 We evaluate affordability of reported rents according to FHFA guidance (12 CFR part 1282).

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Multifamily housing affordability
Scarce supply of affordable rental units is one of the primarybarriers to housing affordability for renters, resulting in competition
for available units. Fannie Mae is focused on supporting thepreservation, rehabilitation, and creation of more affordable rental
homes for renters. Of the approximately 598,000 multifamily units
we financed in 2022, a significant majority were affordable to
low-to-moderate-income households.28
We also support the development and preservation of housing
in the underserved manufactured housing and rural markets,and our products and programs reflect our commitment to thesemarkets. We are innovating with programs that make it easier forhouseholds to afford and maintain suitable rental housing.

600

NUMBER OF MULTIFAMILY UNITS WITH REPORTEDRENTS AFFORDABLE AT OR BELOW 120% AMI

NUMBER OF MULTIFAMILY UNITS WITH RENT ORINCOME RESTRICTIONS AT OR BELOW 120% AMI(in thousands)(in thousands)

576
516

504

500
400
300
200
100
0

2020

2021

2022

66

71

77

2020

2021

2022

> 80% to 100% AMI> 100% to 120% AMI

Income≤ 50% AMI

> 50% to 60% AMI> 60% to 80% AMI

28 Unit count reflects new multifamily units financed by first liens; excludes second liens on multifamily units for which we had financed the first lien, as well as manufactured
housing rentals. Affordability is based on rents reported at origination. Rents may change following loan origination. For additional information on affordable housing
acquisitions, see Table 3. Multifamily Housing Mortgage Acquisitions by Year, by Select Characteristics in the Data Tables section of the Appendix.

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Programs to produce and preserve
affordable units
Fannie Mae takes an active role in preserving and improving
affordable housing for low-income renters. We work to make iteasier for lenders to finance the production and preservation ofrental housing by providing standardized, consistent, and scalable
multifamily financing products. We also provide innovative
products to meet market needs that help preserve affordability.
Housing with rent- or income-based restrictions remains anessential source of affordable housing for many. Fannie Mae’s
financing for Multifamily Affordable Housing, which includes
loans on properties with a minimum level of rent- and incomerestricted units and properties receiving other federal and statesubsidies, totaled $10.3 billion in 2022.
The Low-Income Housing Tax Credit (LIHTC) program is afederal program incentivizing equity investments in affordable
rental housing for low- and very low-income households. The
program awards tax credits to affordable housing developers,
who then exchange the tax credits for equity contributions
from investors, including corporate investors like Fannie Mae,to create and preserve affordable housing. The LIHTC programprovides a reliable source of capital for affordable rental housing
and underserved markets nationwide.
From our reentry into LIHTC equity investment in 2018
through 2022, Fannie Mae has provided approximately $3.2
billion in LIHTC equity investments, supporting the creation orpreservation of nearly 80,000 rental units at over 1,000 properties
in 49 of 50 states, Guam, Puerto Rico, the U.S. Virgin Islands,
and Washington, D.C. We specifically target our investment
activities toward underserved markets and underserved tenant
populations. More than 370 of these properties were in ruralcommunities, including over 90 properties in high-needs rural
regions. Tenants served through our investments include
Native American tribal members, people who have experienced
homelessness, youth aging out of foster care, LGBTQ seniors,and people who have experienced domestic violence. Properties
focusing on these tenants may include supportive services
such as counseling, after-school programs, and job training in
addition to providing high-quality, affordable housing.

SOCIAL / HOUSING AFFORDABILITY

Fannie Mae also provides debt financing for properties whose
affordability stems from others’ LIHTC equity investments. Overthe past four years, we have increased our loan purchase targets
on LIHTC properties and focused efforts on the innovative
MBS as Tax-Exempt Bond Collateral (MTEB) mortgage loansolution. This offering allows Fannie Mae-issued multifamily MBS
to support new issuance or refunding of municipal tax-exempt
bonds, which helps to subsidize LIHTC affordable properties.
Our Sponsor-Initiated Affordability (SIA) program, launched in
2021, offers pricing and underwriting incentives for multifamilyborrowers and lenders to voluntarily set aside at least 20% ofunits for households with income less than 80% of AMI throughthe life of the Fannie Mae loan. The SIA program protected theaffordability of nearly 2,300 rental units, out of over 4,900 total
rental units financed under the program, in 2022.

Expanding choices for voucher recipients
The Housing Choice Voucher (HCV) Program, run by the U.S.
Department of Housing and Urban Development (HUD),
is a key resource for providing direct affordable housing
subsidies to very low-income households, seniors, historicallyunderserved populations, and people with disabilities.
Vouchers predominantly serve households of color andwomen-led households.29 Accessing quality rental housing
can be challenging for households that use HCVs. While somejurisdictions prohibit landlords from denying applicants basedon the source of income, this is not universally the case.
In 2022, Fannie Mae launched the Expanded Housing Choice
Initiative, a pilot program aiming to enlarge the pool ofmultifamily units that accept HCVs. The pilot allows multifamily
property owners in two states, North Carolina and Texas, toaccess lower-priced financing terms as an incentive for theircommitment to accept HCVs. We believe the program can be
mutually beneficial for property owners, who unlock a newmarket of potential renters, and for low-income renters, whogain more choice in where they can use their voucher.

29 HUD, “Assisted Housing: National and Local” dataset, 2021

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Fair lending and fair housing
SASB FN-MF-270b.3

Fannie Mae is committed to complying with both the letter and spirit of applicable laws and regulations related tofair housing and lending (“Fair Lending Laws”). The Fair Lending Laws include the Equal Credit Opportunity Act, theFair Housing Act, and the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended,and their implementing regulations, as well as similar state and local laws. These laws prohibit discrimination in
housing and lending on the basis of certain characteristics.30
Fannie Mae operates in the secondary mortgage market and does not originate mortgage loans or lend money
directly to borrowers. However, we require our lender partners, who lend money directly to single-family or
multifamily borrowers, to comply with:• Our Selling Guides, which prescribe the requirements lenders must follow in order to sell loans to us.
• All federal, state, and local laws and regulations that apply to their origination practices, including the Fair
Housing Act and the anti-discrimination provisions of the Equal Credit Opportunity Act.
• All other related state and federal regulations.
When delivering loans to Fannie Mae, lenders provide representations and warranties that assert their compliancewith our Selling Guide and all applicable laws, including anti-discrimination laws and regulations. Thereafter,
lenders must attest to us on an annual basis that they have policies and procedures in place, including regulartraining for employees and contractors, to facilitate and monitor compliance with these laws. Those who service
loans for Fannie Mae are also required to abide by applicable laws and regulations dealing with loan servicing, as
well as the provisions of our Servicing Guides.
In addition to the lender and servicer requirements related to compliance with Fair Lending Laws, Fannie Mae
has developed a Fair Lending Program designed to prevent, identify, measure, mitigate, and manage enterprisewide fair lending risks. The program promotes fair and responsible housing practices on an enterprise-wide level
covering both Fannie Mae’s Single-Family and Multifamily Businesses, including underwriting standards, businesspractices, pricing policies, fee structures, and procedures. The Fair Lending Program is administered by Fannie
Mae’s Fair Lending Group under the direction of the Fair Lending Officer. The Fair Lending Group reviews new andongoing policies and initiatives, such as policies that impact the eligibility of loans sold to Fannie Mae, mortgage
servicing policies, appraisal guidelines, and marketing materials, not only for compliance with the Fair LendingLaws, but also with a view toward increasing equity in the home lending and rental markets. The group also
conducts enterprise monitoring of fair lending risk as well as periodic testing and targeted reviews to evaluate fairlending compliance. The Fair Lending Group develops and delivers fair lending training to employees, taking into
consideration their job responsibilities and Fannie Mae’s fair lending risks. Fair lending is also covered as part of ourenterprise-wide training provided to all employees.
SASB FN-MF-270b.3

In February 2022, Fannie Mae settled a lawsuit brought by the National Fair Housing Alliance and otherorganizations alleging that from 2011 to 2015 Fannie Mae’s foreclosed properties were maintained and marketed ina discriminatory manner. Fannie Mae denied the plaintiffs’ allegations but agreed to pay $53 million to resolve thecase, of which more than $35 million was designated for investment in Black and Latino communities to address
homeownership, access to credit, property rehabilitation, and residential development.
30 Characteristics include, but are not limited to, race, color, national origin, sex, religion, marital status, age (provided the applicant has the capacity tocontract), receipt of public assistance, familial status (children under the age of 18 living with parents or legal custodians, pregnant women, people
securing custody of children under the age of 18), disability, sexual orientation/gender identity, or military status.

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Housing Stability
Our funding helps preserve the 30-year fixed-rate mortgage, anindustry standard for many homebuyers in the U.S. This popularmortgage loan helps enable homeownership by offering stable,
predictable mortgage payments over the life of the loan.

Promoting sustainablehomeownership
Fannie Mae creates underwriting, eligibility, and risk
management standards to help protect borrowers and maintainour safety and soundness. We also invest in homeownershipand financial education and work to prevent displacement andinsecurity — and market disruption — when disasters strike.

Responsible underwriting
We believe that Fannie Mae’s rigorous underwriting standards
help ensure that borrowers are prepared to meet the
obligations of homeownership. Fannie Mae’s Single-Family
Selling and Servicing Guides set out the current eligibility andongoing administration requirements for loans we can acquire.
We built and support the automated underwriting system, DU,
that lenders can use to determine whether a specific loan iseligible for sale to Fannie Mae. DU performs a comprehensive
evaluation of the primary and contributory risk factors of amortgage. The substantial majority of single-family loans weacquire are assessed by DU.
In 2022, Fannie Mae made several enhancements to oureligibility, underwriting, and pricing guidelines, which we believe
will enable greater access to credit for mortgage borrowers
from historically underserved populations. For example, we
introduced a cash-flow assessment feature within DU that uses aborrower’s bank account statements to provide a comprehensive
picture of their financial health when none of the borrowers
applying for the loan has a credit score. By updating our eligibility
criteria for borrowers with no credit score and delivering lenders
the tools to perform a cash-flow analysis as part of the overall
credit assessment with DU, we are enabling access to mortgage
financing for creditworthy borrowers in a safe and sound manner.

Homeownership education
SASB FN-CB-240a.4

Fannie Mae aims to facilitate a continuum of educational andcounseling resources, where multiple approaches at distinct
points in an individual’s renting or homeownership journey canbuild upon each other for cumulative effect.
To address knowledge gaps for aspiring homeowners, inJanuary 2022 we launched Fannie Mae HomeView®, a free
online consumer-facing homeownership education course thataligns with National Industry Standards for Homeownership
Education and Counseling.31 The award-winning course,
available in both English and Spanish, was designed to address
misperceptions or a lack of knowledge about homebuying
and the mortgage qualification process that discourages somerenters from pursuing homeownership. In its first year, 179,000
people completed the HomeView course.32

31 For more information on National Industry Standards for Homeownership Education and Counseling, see: https://www.homeownershipstandards.org/Home/Home.aspx.
32 The number of HomeView completions was not subject to Deloitte & Touche LLP’s review and, accordingly, Deloitte & Touche LLP does not express a conclusion or any form ofassurance on such information.

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To ensure households taking steps toward purchasing ahome are armed with the right information when it is most
relevant, Fannie Mae requires certain borrowers to complete
homeownership education prior to loan closing.33
For more information see Table 7. Education & Counseling in the
Data Tables section of the Appendix.
SASB FN-CB-240a.4

Post-purchase counseling
For borrowers and renters who experience a financial hardshipor find their lives upended by a natural disaster, Fannie Maepartners with housing counseling agencies to offer services tohelp them understand their options and pursue a path that
reduces disruption to their housing and finances. In 2022,
Fannie Mae supported over 11,000 housing counseling sessions
for borrowers and renters.
Our Here to Help program, accessible at 1-855-HERE2HELP,
provides support for Fannie Mae borrowers experiencing financial
distress and any borrower or renter experiencing the effects ofa natural disaster.34 Homeowners whose loans are owned by
Fannie Mae and who are experiencing financial distress may
access free foreclosure prevention assistance, whereby borrowers
work directly with a HUD-approved counselor who reviews theirsituation and explains their options in one-on-one sessions.

For renters and borrowers who face disasters, a dedicatedcounselor can help them complete a needs assessment, createa personalized recovery plan, and request financial relief
from the Federal Emergency Management Agency (FEMA), theSmall Business Administration, insurance providers, and othersources. Counselors continue to check in with clients for up to
18 months. Anyone experiencing the impacts of a disaster canreceive support; Fannie Mae facilitates services for renters andborrowers whether we own their mortgages or not.
We also offer post-modification counseling, whereinborrowers receiving a Fannie Mae modification are offeredcomprehensive financial coaching to aid them in sustaining themodification. For more information on loan workout options,
including modifications, see below.

Single-family loss mitigation andloan workouts
Fannie Mae’s single-family loss mitigation strategy sets
standards for timely resolution when borrowers experiencefinancial distress. Servicers are responsible for following ourdelinquency management and loss mitigation protocols
throughout the loan life cycle, in accordance with our Servicing
Guide requirements and applicable law. Our standards
are designed to help promote housing stability and create
consistent and equitable standards for servicers to follow.

33 For certain Fannie Mae loans, at least one borrower on a loan must complete homeownership education prior to loan closing: if all borrowers on the loan are relying solely on
nontraditional credit to qualify, regardless of loan product or first-time homebuyer status; with HomeReady and HFA Preferred purchase transactions when all occupying borrowers
are first-time homebuyers; or for purchase transactions with loan-to-value (LTV), combined LTV, or home equity combined LTV ratios greater than 95% when all borrowers are first-time
homebuyers. Qualified providers must be independent of the lender, with homeownership education content that is aligned with National Industry Standards for Homeownership
Education and Counseling or offered by a housing counseling agency approved by HUD. HomeView can be used to satisfy these homeownership education requirements.
34 Here to Help consolidates the services of what were formerly known as the Mortgage Help Network and the Disaster Response Network.

Support for homeowners, renters, and the market during the
COVID-19 pandemic
As the COVID-19 pandemic unfolded, Fannie Mae took action to help people maintain their housing. Our
response included halting foreclosures, providing forbearance plans to homeowners struggling to makemortgage payments as a result of the pandemic, and prohibiting evictions for nonpayment of rent in
multifamily properties that received loan forbearance. Many homeowners and renters received one-on-one
support from housing counselors to navigate the unprecedented events. For more details on our COVID-19
response and outcomes, please see our Annual Housing Activities Report (AHAR).

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We maintain and enforce specific standards and requirementsthat servicers must follow regarding outreach timelines when amortgage becomes delinquent. Our policies require the servicer
to intervene early to address mortgage loan delinquency andprovide alternatives to foreclosure. First and foremost, theservicer is required to attempt to establish contact with theborrower to discuss workout options that may be available
to bring the mortgage loan current and allow the borrower toavoid foreclosure.
The servicer is required to determine whether a borrower
qualifies for a home retention workout option before consideringliquidation alternatives (unless the borrower requests
otherwise). If the borrower needs time to resolve their hardship,
they may be eligible for a forbearance plan, which allows themto make a reduced mortgage payment or no mortgage payment
during the forbearance plan term. Once the borrower’s hardshipis resolved, if the servicer has determined that the borrower does
not have the ability to bring the mortgage loan current througha reinstatement, then the servicer must evaluate the borrower
for a workout option in accordance with Fannie Mae’s Servicing
Guide’s workout option evaluation hierarchy.
A borrower may be eligible for a repayment plan if their hardshiphas been resolved but they are unable to bring the mortgage
loan current through a reinstatement. A repayment plan is anagreement that provides the borrower with an opportunity
to repay past due amounts on the mortgage loan by making
additional monthly payments along with the regular monthly
mortgage payments.
Alternatively, if the borrower does not have the ability to afford
a repayment plan, and if certain eligibility parameters are met, apayment deferral allows a borrower who can afford to resume theirmonthly mortgage payment to bring the mortgage loan current bydeferring certain delinquent amounts into a non-interest-bearingbalance due at loan maturity or payoff, whichever is earlier.
If a borrower needs payment relief, they may be eligible for a
Fannie Mae Flex Modification, which is an agreement to change
terms of the loan such as payment amount, length of loan,interest rate, etc. in order to create a more affordable payment.

SOCIAL / HOUSING STABILITY

Protecting manufactured housing
community tenants
Residents in MH communities often own their homes
but rent the land (known as the pad or site) on which
their homes sit. For properties with Fannie Mae
multifamily financing, Tenant Site Lease Protections(TSLPs) contribute to more stable housing, whether MH
community residents own or rent their dwelling. TSLPs
address site lease terms, minimum grace periods for rent
payments, unit sale and associated site lease assignment
rights, advance notice of rent increases, and advancenotice of a planned sale or closure of the MH community.
For MH community loans committed in and after 2022,
we require that TSLPs be implemented on 100% of siteleases — both owner-occupied and renter-occupied.

foreclosure sale) or a Fannie Mae Mortgage Release (Deed-inLieu of Foreclosure), each of which allows the borrower to leave
the home while avoiding foreclosure.
To promote consistency across servicers and improved outcomesfor borrowers, Fannie Mae offers Servicing Management Default
Underwriter™ (SMDU™), an application that incorporates therequirements within Fannie Mae’s workout option hierarchy andautomates loss mitigation workout option evaluations.
For borrowers struggling with mortgage payments, Fannie Maealso offers free housing counseling through partnerships with
nonprofit housing counseling organizations. In addition, we
provide a consumer website with resources for consumers tounderstand the options that may be available for resolving loandelinquencies.
See Table 6. Single-Family Loan Modifications, Foreclosure
Alternatives, and Foreclosures in the Data Tables section of the
Appendix. See also Table 7. Education & Counseling for informationon counseling sessions provided to borrowers and renters.

Upon the borrower’s request or when the borrower is not eligible
for a retention workout option, the servicer must evaluate theborrower for a liquidation workout option. These liquidation
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SOCIAL / RACIAL EQUITY IN HOUSING FINANCESPOTLIGHT

Racial Equity in Housing FinanceConsistent with the public purposes set forth in our charter,
Fannie Mae is committed to doing what is in our power tobuild a more equitable housing finance system that yields
better outcomes for future generations. Unfortunately, theU.S. housing finance system is marked by a history of racial
discrimination and persistent racial disparities, and barriers
still endure for historically underserved groups. For example,
lower rates of homeownership lead to less accumulationof wealth, leading to lower levels of homeownership for
subsequent generations and other disparate economic
outcomes that accumulate over time.

Identifying and knocking down
barriers
Our approach is first to acknowledge the obstacles toaffordable and stable housing that consumers face, including
those that disproportionately affect people of historicallyunderserved groups due to race or ethnicity, and thenidentify appropriate interventions where we can leverage our
products, policies, practices, and influence to support more
equitable outcomes.

This framework enables us to identify areas of opportunity
for Fannie Mae to help more consumers become successful
renters and homeowners. Our first use case of the Consumer
Housing Journey was to document the obstacles that Blackrenters and homeowners face as they secure and maintainhousing. We expanded the research to focus on Latino rentersand homeowners in 2023.

Equitable Housing Finance Plan
Fannie Mae’s first-ever Equitable Housing Finance Plan,published in 2022, outlined specific steps we are taking tofurther our commitment to advancing racial equity in housing
finance. We updated the Plan in 2023 to add new actions andalso released a performance report detailing our actions andoutcomes in the first year of implementation.
We are developing actions to help address the enduring
effects of systemic discrimination against Black and Latino
homeowners and renters. Our Equitable Housing Finance
Plan represents a deeper level of strategic coordination andprogram maturity, but it builds upon established programs
Fannie Mae has fostered over decades.

We developed a framework we call the Consumer Housing
Journey to capture insights from our research into theexperience of renters, homebuyers, and homeowners.35

35 For more information, see Fannie Mae’s “Knocking Down Barriers: A people-centered approach to advancing equity in housing,” 2022.

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Our Equitable Housing Finance Plan focuses on three areas
where we believe we can make the most impact:• Housing Preparation: helping consumers prepare early forsustainable homeownership and access to quality rental
housing through establishing strong financial and credit
foundations.
• Renting or Buying: removing unnecessary obstacles in
shopping for, acquiring, renting, or financing the purchaseof a home.
• Moving In and Maintaining: improving the services that
help sustain homeownership so that homeowners andrenters can withstand disruptions or crises and remain
stably housed.

SOCIAL / RACIAL EQUITY IN HOUSING FINANCE

While our solutions seek to address the key obstacles facedby Black and Latino homeowners and renters as they secure
housing, we expect our actions will benefit borrowers andrenters in all populations. Some more narrowly targeted
programs include working to increase the number of loans wepurchase from lenders implementing Special Purpose Credit
Programs specifically intended to benefit borrowers in areas
with a legacy of redlining.
We expect to continue to update our Equitable Housing
Finance Plan as housing and economic factors evolve and toaddress additional populations historically underserved due totheir race, ethnicity, geographic location, or other attributes.

Combating appraisal bias
Fannie Mae believes inequity in home value appraisals based on race or ethnicity is unacceptable, and this issue canlimit opportunity for homeowners from underserved populations to build equity and wealth.36 Our goal is for theappraisal process and outcomes to be fair, reliable, and efficient. Our strategy includes researching the origins andimpacts of appraisal inequities, using our quality control and monitoring functions to detect potential bias within ourloan pipeline, developing technology solutions that lead to more equitable outcomes, and working with the appraisal
profession directly to accelerate improvements.
In 2021 and 2022, we stepped up our monitoring of appraisal practices that are susceptible to bias and took steps
to eliminate these practices. In each of these years, we performed a large-scale appraisal text scanning review todetect subjective terminology in home appraisals, including terms prohibited by our Selling Guide, such as “goodneighborhood” or “pride of ownership.” This practice has already generated fairer outcomes for homeowners; ofthe appraisers notified of the use of subjective terminology in their reports in 2021, 79% had no new text findings on
appraisals submitted after the letter date through end of June 2022. Our commitment to eradicating appraisal bias also
resulted in 16 case referrals to state regulators in 2022.
To learn more about our work to make the appraisal profession more accessible to a diverse pool of aspiring
professionals, see the Appraisers section of the Community Engagement chapter.

36 Learn more about the appraisal gap in this Fannie Mae research publication examining unequal appraisal valuation outcomes for Black consumers:“Appraising the Appraisal.”© 20 2 3 Fan n i e M ae

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Community
Engagement
Fannie Mae operates at a crucial position within the broader
housing finance system. Our external stakeholders include
borrowers and renters; mortgage lenders; mortgage servicers;
investors in our securities; government entities at federal,state, local, and tribal levels; insurers; housing policymakers;
homeownership educators and counselors; researchers andeconomic observers; home builders and manufacturers;
industry trade organizations and collectives; suppliers andcontractors; technology providers; and the many diverse
communities across the U.S. We engage stakeholders via
multiple channels and venues to learn from them, share
relevant information, and advance shared interests.

Evolving and diversifying the industry
We seek to leverage Fannie Mae’s position as an industry
leader to drive positive change throughout the housing financeindustry. Our strategies support industry best practices in
ethics, sustainability, inclusion, and equity — including growing
representation of historically underrepresented groups within
the housing industry broadly.

Lenders
Fannie Mae maintains business relationships with over 1,600
single-family primary market lenders. We created the Lender
Diversity Council to support diversity within the single-family
housing finance system by providing tools, training, and otherresources to minority- and women-owned lenders. Our hopeis that our engagement with these lenders better equips themto scale their businesses and expand access to financing within
their communities. In 2022, Fannie Mae acquired $32.7 billion insingle-family mortgage volume from minority- and/or womenowned firms.
We also maintain a robust network of multifamily lenderpartners. This includes Delegated Underwriting and Servicing(DUS®) lenders who underwrite, close, and deliver loans on ourbehalf, and other specialty multifamily lenders. We continuously
seek new opportunities to ensure liquidity and foster economic
inclusion in the multifamily market. In 2022, we added Basis
Multifamily Finance, a subsidiary of Basis Investment Group, LLC,

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as our 24th DUS lender, expanding the suite of products that thecompany can offer to the market. Basis Investment Group is acertified minority- and women-owned business.

Capital markets
Fannie Mae’s ACCESS program, which celebrated its 30-year
anniversary in 2022, provides opportunities for diverse-owned
broker-dealer firms to distribute our fixed-income securities
to the investor community. As of year-end 2022, the ACCESS
program included 20 firms classified as women-, minority-,or service-disabled veteran-owned, or a combination of
those classifications.

Appraisers
We created the Appraiser Diversity Initiative in 2018 to help
promote diversity in the real estate appraisal field. We havepartnered with the National Urban League, the Appraisal Institute,and Freddie Mac on this initiative to attract new entrants to theresidential appraisal field and foster increased diversity throughoutreach, scholarships, and mentoring. In 2022, Fannie Mae
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the National Urban League’s affiliate Entrepreneurship Centers,
hosting 7 workshops and 8 higher education outreach events —including 5 at Historically Black Colleges and Universities (HBCUs).
The Appraiser Diversity Initiative awarded 330 scholarships andsecured 11 new industry sponsors in 2022, exceeding our goal
and bringing the total number of sponsors to 20. This initiativecomplements our work to combat appraisal bias. (See “Combating
Appraisal Bias” in Spotlight: Racial Equity in Housing Finance.)

Housing finance
Widening access to housing finance industry education isa key tool to close the workforce diversity gap and build anindustry that better reflects the diversity of our country. In
2018, we created Future Housing Leaders (FHL) to help
create a pipeline of diverse talent and to provide experiential
and professional development opportunities at a formative
time in participants’ early careers. FHL connects college
students from historically underrepresented groups toopportunities for paid summer internships and early career
opportunities in the housing industry. Fannie Mae and 86
participating employers enrolled over 1,000 Future Housing
Leaders in 2022. Future Housing Leaders program participant
eligibility is not limited by race or ethnicity.

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SOCIAL / COMMUNITY ENGAGEMENTBusiness partners and suppliers
We are committed to the principles of equal opportunity incontracting and the inclusion and utilization of diverse suppliers,
vendors, and business partners in Fannie Mae’s procurementof goods and services, as outlined in our Equal Opportunity
in Employment and Contracting statement. For a discussionof our expectations of our business partners set forth in our
Business Partner Code of Conduct, see “Business Partner Codeof Conduct” in the Business Ethics chapter.
Fannie Mae’s Supplier Diversity program is designed to promote
the consideration, inclusion, and utilization of diverse suppliers,
vendors, and business partners in relevant business activities
and contracting opportunities. Efforts to support this objective
are primarily focused on contracts where Fannie Mae has a direct
influence on supplier selection and the population of bidding
suppliers, where appropriate.
In 2022, Fannie Mae performed various outreach activities toinform such suppliers of our contracting process and to solicit oradvertise for proposals or bids to enter into business with Fannie
Mae. Outreach included a diverse supplier summit aiming tocreate connections between internal stakeholders and suppliers
that have capabilities we may be able to leverage in the future.

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SOCIAL / COMMUNITY ENGAGEMENT

Building connections and advancing
shared understanding
Fannie Mae benefits from engagement with our stakeholders,just as borrowers, renters, and industry participants can benefit
from the collaboration and innovation that such engagement
can generate. Partnerships can help amplify our impact.

Sustainable Communities Innovation
Challenge
We recognize that stable, affordable housing has benefits that
extend to all aspects of life. Our Sustainable Communities
Innovation Challenge forges partnerships in sectors adjacent
to housing — such as employment, education, and health — toexplore and launch innovative ways to support sustainable andaffordable housing for households with low-to-moderate incomes.
Building on the foundation laid by our first challenge round, in
2022 Fannie Mae launched Sustainable Communities Innovation
Challenge 2022: Advancing Racial Equity in Housing. With thisfocus, we aim to help support innovative, scalable initiatives
that remove barriers that currently prevent many households,
including Black households, from purchasing or renting ahome — barriers like the insufficient supply of quality, affordable
housing options, insufficient funds for upfront and unexpectedhousing costs, and consumer credit challenges, including low
credit scores and credit invisibility. The impacts enabled by
Innovation Challenge 2022 awardees will help support the goalsof Fannie Mae’s Equitable Housing Finance Plan.

expert mentorship and participate in virtual learning sessions
to support implementation and ongoing project management,
as well as technical assistance to increase capacity to scale
their projects. For more information on the project proposals
received as part of the Innovation Challenge, view the
searchable database we maintain to promote learning, sharing,
and advancement of the goals of these initiatives.

Employee volunteerism and giving
At Fannie Mae, serving is a part of our culture. Our policies andprograms encourage volunteerism at many levels. We regularlyorganize a broad range of hands-on community volunteer
opportunities for our employees. These experiences enable
Fannie Mae to forge partnerships with organizations making an
impact at the local level, and they give employees greater insight
into community challenges, while providing tangible benefit to
our neighbors.
We also support employees’ self-led giving and volunteering.
Fannie Mae matches up to $5,000 per year in charitable gifts toeligible U.S.-based nonprofit organizations and offers employees
up to 10 hours of paid volunteer leave per month to give theirtime and talents to causes they support individually. Throughthe company’s Matching Gifts program, employees, Board
members, and the company collectively donated $4.1 million toeligible nonprofits in 2022.

With Innovation Challenge 2022, Fannie Mae committed
a total of $5 million to five organizations that are tacklingchallenges related to the historic inequities in housing thatmany homebuyers and renters face today. Awardees receive© 20 2 3 Fan n i e M ae

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SOCIAL / HUMAN CAPITAL MANAGEMENT

Human CapitalManagement
Our employees are key to ensuring our long-term success andmeeting our strategic objectives. We had approximately 8,000
employees as of December 31, 2022. We believe a motivatedand inclusive workforce generates more creative ideas, betterbusiness decisions, and better products that serve the mission
embedded in our charter and the needs of our diverse country.
To that end, we are focused on three key areas: attracting andrewarding a talented workforce, engaging and developing our
employees, and fostering an inclusive workplace.

Attracting and rewarding
a talented workforce
We believe many current and prospective employees are
attracted by our mission and the compelling nature of ourwork. We seek to foster and develop talent and create an
employee base that feels empowered to speak up, explore newopportunities, and embrace challenges.

Compensation and employee benefits
We offer a competitive total rewards package, which delivers
a variety of cash and non-cash rewards designed to motivate
employees and improve company performance. We utilize
a “Live Well” framework to provide choices for employees tothrive. These programs are organized into five areas: Health,Finances, Career, Work-Life Fit, and Community. All regularFannie Mae employees are eligible for benefits.
In January 2023, we implemented enhancements to many ofour benefit offerings to meet employees’ needs and attract thebest talent. One highlight was expanding our paid parental leave
policy to 12 weeks.37
Health: Fannie Mae provides quality physical and mental healthbenefits and emotional health resources for employees and theireligible dependents. Eligibility for our health insurance plans
and certain other benefits includes qualified domestic partnersof any gender and their children. Beyond the robust mental
health benefits embedded in our medical insurance plans, our

Employee Assistance Program provides confidential counseling,
relationship support, and other resources.
Finances: We provide opportunities for employees to achieve
future financial goals and benefits that allow employees to invest
in their financial and personal well-being. Eligible employees areautomatically enrolled in a 401(k) plan. Fannie Mae automaticallycontributes 2% of eligible earnings to employees’ 401(k) planaccounts and matches employee contributions up to an additional
6% of eligible earnings, for a total of 8% of eligible earnings.
To align with our mission and support employee homeownership,
we provide eligible employees with a one-time grant of $10,000
to assist with the purchase of a primary residence. We maintaina scholarship program for eligible employees’ dependents andprovide tuition assistance for eligible employees furthering theirown educational goals. We also provide financial support for
adoption and surrogacy of up to $10,000.
Fannie Mae is committed to pay equity. We regularly review ourpay practices and compensation structure for any potential
pay disparities across gender or race. We analyze whether pay
disparities may exist for comparable work (after controllingfor objective factors that determine pay, such as job level andfunction, time in job, location, and performance) and how suchdisparities can be addressed.
Career: Employees can advance their career and support Fannie
Mae’s mission and be recognized for their work. We offer a
dedicated virtual training platform, development programs, andreimbursements for educational expenses. See the Engaging anddeveloping our employees section below for more information.

37 In addition to paid parental leave, employees may be eligible for fully paid short-term disability leave relating to the birth of a child.

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SOCIAL / HUMAN CAPITAL MANAGEMENT

Work-life fit: Fannie Mae provides several options to help
employees balance work and life. Most employees are able
to decide when they work on-site or remotely. We also offer
a variety of leave options, Half-Day Flexible Fridays, and Flex
Hours, so employees can adjust their normal work schedule toallow more flexibility for their personal needs outside of work.
Community: Employees have opportunities to maintain andstrengthen connections to people and community causes thatmatter to them. For more information, see the Community
Engagement chapter and the Fostering an inclusive workplace
section below.

Engaging and developing our
employees
We believe that investing in our employees is key to our successas a business and our value proposition as an employer.
Fannie Mae University (FMU), our platform for employee
development, supports employees in building knowledge andskills by offering thousands of web-based courses, videos, andother resources. FMU is organized by several education tracks,
including the School of Housing, School of Leadership andCulture, School of Analytics, School of Digital, and School ofContinuing and Professional Development.
For employees who seek out higher education, our Assistancefor Collegiate Education program may reimburse a maximum of$10,000 per calendar year of an eligible employee’s education
expenses. Degree programs must relate to either Fannie Mae’s
business and/or an employee’s current position.
Performance reviews are a fundamental part of our employees’
development. Employees receive annual performance
reviews, and the results are factored into compensation
decisions. We also set the expectation for managers to haveregular development discussions with their team members
to ensure that growth is a continual priority, and we support© 20 2 3 Fan n i e M ae

our employees in advancing their career growth throughinternal mobility with career navigation training and internal
recruitment support.
We regularly seek employee feedback through surveys that
demonstrate our commitment to the value of listening andprovide an entry point for managers and leaders of all levels
to engage their teams in meaningful discussion. We believe a
workforce that feels valued, engaged, respected, and part of abigger purpose is more likely to stay and invest in our work andshared mission. We survey our workforce multiple times a year
to monitor engagement and as one method to identify ways toimprove our programs and work culture. In 2022, we conducted
three employee engagement surveys. As of the final survey of2022, nine in ten employee respondents would recommend
Fannie Mae to friends and family as a great place to work.

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SOCIAL / HUMAN CAPITAL MANAGEMENT

Fostering an inclusive workplace
SASB FN-IB-330a.1

We seek to foster an environment in which all employees aretreated with dignity and respect and have the opportunity
to contribute to meaningful work and grow their careersin an inclusive environment, free from discrimination,harassment, and retaliation. We support these critical concepts
by establishing and promoting policies that articulate theimportance of, and the value we place on, diversity andinclusion, by establishing a comprehensive diversity andinclusion strategy, by providing training to help our employeesinternalize the concepts in our policies, and by facilitating
opportunities for engagement and partnership.

Policies, statements, and othergoverning documents
Fannie Mae’s D&I policies, statements, and other governing
documents are accessible to employees on our intranet.
Our Equal Opportunity in Employment and Contracting
statement and our Employment Policy outline our prohibition
against discrimination, harassment, and retaliation in
the workplace and our commitment to the principles of
equal opportunity for all employees. They articulate ourcommitment to providing reasonable accommodations
to individuals with disabilities and to those who require
workplace accommodations due to their sincerely held
religious beliefs, observances, or practices. They prohibit
workplace discrimination on any basis protected by federal,state, or local law, including race, color, religion, sex, national
origin, disability or disability status, genetic information, age,sexual orientation, gender identity/gender expression, maritalor parental status, family responsibilities, political affiliation,
personal appearance, veteran status, or matriculation. They
also prohibit discrimination on characteristics not covered
under the law, such as bullying and systems of social
stratification (including caste or class-based discrimination).
These principles are also embedded in our Employee Code of
Conduct, which all employees must commit to upon hire andannually thereafter. (See our chapter on Business Ethics for
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Structures
In 2022, to ensure a continued strong leadership focus
on diversity and inclusion, we appointed a Chief Diversity& Inclusion Officer who reports to the President and is amember of our management committee. The Chief Diversity& Inclusion Officer leads our Office of Minority and Women
Inclusion (OMWI), which is responsible for driving thedevelopment of our diversity and inclusion strategic plan inpartnership with leaders across the company and reportingon our progress against the plan.
Our annually updated D&I Strategic Plan includes outlines
of key actions to cultivate an inclusive environment inwhich all employees have the opportunity to realize theirfull potential and receive support for their professional
development goals. Key actions focus on inclusive leadershipprinciples, talent development, enterprise-wide accessibility,
and a transparent communications strategy that reinforces
the practices of driving inclusion to achieve innovative
solutions. Examples of actions include developing andimplementing tools and resources to mitigate potential
biases in employment decisions and creating targeted
development actions for identified talent through succession
plans and talent discussions. We also sponsor programs
and activities to cultivate a diverse and inclusive work
environment by focusing on inclusive leadership principles,
talent development, enterprise accessibility, team andgroup dynamics, and a consistent communications strategy
that reinforces the practice of driving inclusion to achieve
innovative solutions. Our Diversity Advisory Council,
Employee Inclusive Culture Council, and Employee Resource
Groups also support our D&I commitments and broader
enterprise culture initiatives.
Our Diversity Advisory Council is an advisory working groupof officers whose mission is to aid in the successful deliveryof the company’s D&I Strategic Plan at the divisional andenterprise levels through the identification of opportunities
and corresponding actions. The Diversity Advisory Council

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assists in monitoring and advising on the progress of thecompany’s D&I Strategic Plan and associated practices andinitiatives, shares learnings among business areas, and works
to disseminate D&I information.
Our Employee Inclusive Culture Council is comprised of across-section of employees who focus on defining behaviors
that support our mission and values, reviewing and helping
to align corporate initiatives and programs to the desired
culture, and developing culture communication andsustainability strategies.
Our Employee Resource Groups — grassroots organizationsof employees aligned around a dimension of identity — are
instrumental in creating a culture of inclusion and supporting
the business on key initiatives. These voluntary groups areopen to all employees and provide a forum for members tocome together for professional growth and development,
cultural awareness, education, community service, andnetworking across the organization.

Training and other programs
Fannie Mae’s D&I training program provides comprehensive
learning opportunities for employees to build important skills
and competencies to promote inclusion. Employees haveaccess to courses, toolkits, and reference material to support
their learning journeys. Virtual and in-person professional
development and training opportunities are available.
SASB FN-IB-330a.1

RACIAL OR ETHNIC MINORITIESWOMENAs of December 31, 2022

As of December 31, 2022

58%

28%

44%

39%

of ourworkforceof officer-level
employees38

of ourworkforceof officer-level
employees38

38 Officers are employees with job titles that include Fellow, Vice President, Senior Vice President, Executive Vice President, President, and CEO.
Note: See Table 9 in the Data Tables section of the Appendix for more information.

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TABLE OF CONTENTSENVIRONMENT / CLIMATE RISK & RESILIENCE

2022 ESG Report

Environment
Climate Risk
& Resilience
Climate change presents both immediate and long-term risks
to Fannie Mae and other stakeholders in the housing system,
including borrowers, renters, lenders, investors, and insurers.
We believe the frequency and intensity of major weatherrelated events in recent years are indicative of climate change,
the impacts of which are expected to persist and worsen in
the future. The Intergovernmental Panel on Climate Change,
the United Nations’ climate science research group, statesin its recent Synthesis Report: Climate Change 2023 that it isunequivocal that human activities have warmed the climate.39
Fannie Mae is focused on understanding and addressing
the physical and transition risks of climate change to ourbusiness. We are also focused on how climate change andresponses to climate change could affect the homeowners
and renters we serve.

Climate strategy
Our climate strategy is designed to help us understand andaddress our financial and business exposure to climate-relatedrisks and opportunities as we respond to the impacts of climatechange. To meet this need, our climate strategy is built aroundthree pillars:

Task Force on Climate-related
Financial Disclosures (TCFD)
Our approach to identifying, assessing, mitigating, and reporting on
climate-related risks is informed by the recommendations of the
TCFD. Additionally, we are building our capabilities to comply
with the SEC’s anticipated rule relating to the enhancement andstandardization of climate-related disclosures for investors. See
the Corporate Governance & ESG Oversight and Risk Management
chapters and our TCFD Index in the Appendix for more information.

Exposure: quantify and continue to refine methods forquantifying our financial and business exposure to climaterelated risks and opportunities.
Mitigation: develop mitigation capabilities to address theserisks and leverage opportunities.
Awareness: communicate with our employees and stakeholders(e.g., regulators, lenders, investors, and consumers) about theseimportant issues to enable more informed decision-making.

39 See Intergovernmental Panel on Climate Change, “Synthesis Report of the IPCC Sixth Assessment Report (AR6) Summary for Policymakers,” 2023.

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As we execute and evolve our strategy, we emphasize a few key
immediate challenges and gaps, including resiliency, insurance,
and awareness. We are working to enhance the resiliency of
current and future U.S. housing stock, with a long-term aim ofmaking properties better able to either withstand or recoverquickly from climate-related events. Additionally, we aim to raiseawareness so that homeowners, renters, and property owners
are adequately insured and prepared for climate-related risks,
especially for flooding, to reduce the likelihood of significant
financial loss or housing instability.

Identifying and assessing
climate-related risks

We are also mindful of the intersection of climate risk withissues of housing affordability and racial equity.40 The costs of
insurance, resiliency and retrofit measures, and rebuilding could
put quality housing out of reach for many more people. As partof our mission, we aim to promote and facilitate responses toclimate change that preserve and enhance affordability andequity. These perspectives inform both our understanding ofclimate-related risks and our approach to mitigating them.

A major disruptive event that damages or destroys real estate
securing mortgage loans or negatively impacts the abilityof borrowers to make principal and interest payments on
mortgage loans could increase the delinquency rates, default
rates, and average loan loss severity in the affected region or
regions. Further, a major disruptive event or a long-lasting
increase in the vulnerability of an area to disasters could affectborrowers’ ability to make payments on their mortgages or

We align our classification of climate risks impacting ourbusiness and the broader housing finance system with TCFD’s
categorization of physical and transition risks. Physical risks
resulting from climate change are those arising from eventdriven (acute) disasters and longer-term (chronic) shifts inclimate patterns. Transition risks are those resulting from apotential transition to a lower-carbon economy.

40 See Enterprise Community Partners, Inc., “The Link Between Historic Redlining and Current Climate Risks,” 2021.

CLIMATE-RELATED PHYSICAL AND TRANSITION RISKS
Risk typePhysical risk

Transition risk

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Description
Acute

Event-driven risks related to shorter-term extreme weather events, such as from flooding (coastal,
fluvial, and pluvial), wildfires, and major storms (e.g., hurricanes, tornadoes).

Chronic

Risks resulting from longer-term shifts in climate patterns and related effects, such as sea level rise(which may contribute to nuisance flooding), sustained higher temperatures (resulting in more
severe and/or extended droughts, heat waves, etc.), as well as related effects such as decreased
arability of farmland, decreased habitability of land, and decreased availability of fresh water.

Policy & legal risks

Risks of new or evolving requirements at the international, national, and/or state level (e.g., changing
federal/state regulations, home and flood insurance, litigation).

Technology risks

Risks of new technologies and investments related to the transition to a lower-carbon economy(which may include disruption to existing industries, organizations, etc.).

Market risks

Risks of policies to encourage a shift to a lower-carbon economy (resulting in, e.g., changes in
consumer perceptions of value on home location, price, and other characteristics).

Reputational risks

Risks of changing customer or community perceptions of an organization’s contribution to or
detraction from the transition to a lower-carbon economy.

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insurance policies, discourage homebuilding or homebuying,or cause a deterioration in housing conditions or the general
economy in the affected region. This in turn could lower thevolume of originations in the mortgage market, influence homeprices and property values in the affected region or in adjacentregions, and increase delinquency and default rates.
Recent years have seen frequent and severe natural disasters
in the U.S., including hurricanes, wildfires, and floods. An
increase in people living in high-risk areas, such as coastal areas
vulnerable to severe storms and flooding, have worsened thepotential impact of these events. Low- and moderate-income
and minority households in particular are disproportionately
exposed to risks from severe weather events, due in largepart to historical under-investment in infrastructure in theircommunities.41 The continuation or increase in the severity and/or frequency of weather trends could have a material impact on
the results of our operations and financial condition. In addition,
the unpredictability of natural disasters and the complexity offorecasting long-term climate change negatively affect our ability
to predict the potential impacts from such events, particularly
over the long term.
In addition to the impact of these acute physical risks, longerterm shifts in climate patterns could result in chronic risks suchas sustained higher temperatures, sea level rise, water scarcity,and increased wildfires that negatively affect certain regions,which could negatively affect home prices and multifamily
property values in those regions, as well as the ability ofborrowers in those regions to pay their mortgage loans.
Regarding transition risks, legal or regulatory responses toconcerns about global climate change may impact the housing
market and, as a result, our business. Steps to mitigate therisks of climate change could result in a potentially disruptive
transition away from carbon-intense industries. Such a transition
could negatively impact certain industries and regional
economies, affecting the ability of borrowers in those industries
or regions to pay their mortgage loans. Transition risks also could
include a change in borrower and renter preferences for certain
areas of the country or certain types of housing. The migrationof communities and individuals due to climate-related risk andeconomic factors could lead to changes in home prices andmultifamily property values in affected regions or an increasein lower-income households living in high-risk areas. Transition
risks of climate change also include potential additional
regulatory and legislative requirements that could increase our
expenses or the cost of housing.

Physical and transition risk analysis
Given the long-term nature of both climate change andhousing finance, it is important that we continually develop
our thinking on how the risks discussed in the previous
section could impact our business and financial results overthe short, medium, and long term. We are working to improve
our physical and transition risk analysis in order to better
inform business decisions, while also reviewing the landscapeof modeling approaches and data needs to improve predictive
results. We continue to develop our climate scenario
methodologies and assess the addition of third-party climate
models. Together with our regulator and conservator, the41 EPA. 2021. Climate Change and Social Vulnerability in the United States: A Focus on Six Impacts. U.S. Environmental Protection Agency, EPA 430-R-21-003.

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Federal Housing Finance Agency (FHFA), we are working tounderstand the impact that climate change may have on U.S.
housing.
In the future, we aim to leverage scenarios from the Network
for Greening the Financial System (NGFS) to provide acommon reference point for understanding how climatechange and climate policy and technology trends could
evolve in different future scenarios across both physicaland transition risks.42

Mitigating climate-related risk
to Fannie Mae
Climate-related activity and other natural disasters expose
us to risks (e.g., credit risk) in a variety of ways. For example,
3.3% of single-family loans and 6.8% of multifamily loans
Fannie Mae owned or guaranteed were located in a FEMAdefined Special Flood Hazard Area, as of December 31, 2022.43
The amount of losses we incur as a result of a major weather
event or natural disaster depends significantly on the extent towhich the resulting property damage is covered by hazard orflood insurance and whether borrowers are able and willing tocontinue making payments on their mortgages. The amount oflosses we incur can also be affected by the extent that a disaster
impacts the region, especially if it depresses the local economy,
and by the availability of federal, state, or local assistance toborrowers affected by a disaster. To date, our losses from natural
disasters have been limited by geographic diversity in our bookof business; the availability of insurance coverage for damages
sustained; the availability of federal, state, or local disasterassistance; and borrowers with equity in their homes continuing
to pay their mortgages.
As a congressionally chartered entity, Fannie Mae is obligatedto support residential mortgage liquidity nationwide. With veryrare exceptions,44 Fannie Mae does not currently disqualify
any single-family or multifamily property on the basis of its

ENVIRONMENT / CLIMATE RISK & RESILIENCE

geographic location in the U.S. (including Puerto Rico, the U.S.
Virgin Islands, and Guam).

Mitigating potential future climate-related
financial losses
SASB FN-MF-450a.3

For physical hazards, insurance is our most important buffer
and mitigation measure.45 Currently, for single-family loans,
Fannie Mae requires coverage for the following hazards: flood,windstorm, hurricane, hail damages, or any other perils that
normally are included under an extended coverage policyendorsement.
For single-family borrowers, protection against flood damage istypically only covered via a separate policy through a program
called the National Flood Insurance Program (NFIP). This
program requires extension and reauthorization by Congress
and was most recently extended through September 30, 2023. If
Congress fails to extend or re-authorize the program upon future
expirations, the Federal Emergency Management Agency (FEMA)
may not have sufficient funds to pay claims for flood damage,and borrowers may not be able to renew their flood insurance
coverage or obtain new policies through the NFIP. In addition,
NFIP insurance does not cover temporary living expenses,
and the maximum limit of coverage available under NFIP for asingle-family residential property is $250,000, which may not be
sufficient to cover all losses.
We require flood insurance only for loans in a FEMA-designatedSpecial Flood Hazard Area, coastal barrier resources system,or otherwise protected area. Loan originators are responsiblefor determining whether flood insurance is required and must
provide representations and warranties to us that all insurance
is in compliance with our guidelines at loan delivery. In addition,loan servicers are required to monitor the FEMA maps for the lifeof the loans to identify instances where flood insurance was notneeded at origination but is later required because of a mapping

42 For further information, see the NGFS Scenarios Portal.
43 The percentage of multifamily loans that we own or guarantee located in a Special Flood Hazard Area cited here is based on updated flood maps to provide an estimate of
exposure as of December 31, 2022, as disclosed in our 2022 Form 10-K. The multifamily data in Table 13. Single-Family and Multifamily Loans Requiring Flood Insurance in the
Data Tables section of the Appendix of this report uses Special Feature Codes as reported by lenders at origination to compute the percentage of multifamily loans we own orguarantee that were located in a Special Flood Hazard Area, to use a consistent methodology over the three years reported in that table.
44 For example, at-risk properties in communities not participating in the National Flood Insurance Program, and homes in Hawaii in lava zones 3 – 9.
45 Fannie Mae’s single-family guidelines for general property insurance coverage and flood insurance can be found in the Single-Family Selling and Servicing Guides. Multifamily
insurance requirements and guidance related to individual exposures are outlined in the Multifamily Selling and Servicing Guide. To protect both Fannie Mae and consumers, we
permit only insurance companies meeting specified Fannie Mae requirements.

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change. Conversely, in instances where flood insurance is nolonger required due to a FEMA map change or amendment,
loan servicers are required to release coverage requirements.
Following our acquisition of single-family loans, we checklenders’ determinations of flood insurance requirements against
FEMA-sourced data. We also perform reviews of servicers toassess compliance on an ongoing basis. However, a significant
number of homes outside areas where we require flood
insurance are also at risk of flooding. We are working to increaseawareness of flood and other climate-related risks and available
mitigation measures for these risks, such as insurance.
For our Multifamily Business, each property must be coveredby compliant property insurance and liability insurance for theterm of the mortgage loan, including for windstorms and floods(if the property is located in a FEMA-designated Special Flood
Hazard Area, coastal barrier resources system, or otherwise
protected area) and earthquakes (where applicable). If theborrower fails to maintain required insurance on a property, thelender must obtain the required coverage and may do so at theborrower’s expense. Should a lender fail to satisfy any servicing
requirements, Fannie Mae may take steps allowed in the lender’scontract to mitigate the risk of loss from the failure. Fannie Maetypically assesses each lender’s insurance compliance on abiennial basis and requires lenders to remedy deficient findings.

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ENVIRONMENT / CLIMATE RISK & RESILIENCE

Although not a climate-related risk, earthquakes are alsoa known hazard, and we are reevaluating our approach toinsurance requirements as we work to mitigate the effects ofthis risk in housing nationwide.
Another important means of risk mitigation to Fannie Mae isthrough risk sharing or credit risk transfers. Our multifamily
lenders typically retain approximately one-third of the credit
risk through our DUS program. For single-family and multifamilyloans covered in credit risk transfer transactions executed
after we acquire a loan, we retain a portion of the risk of future
losses, including all or a portion of the first loss position in mosttransactions. To the extent weather- and disaster-related losses
on loans covered by these transactions exceed the amount of
first loss we retain, a portion of those losses would be covered by
the transactions.
An additional risk mitigant is Fannie Mae’s Incident Management
Center, which sits within our Enterprise Resiliency & Security
team and assesses Fannie Mae assets for potential impacts
from natural disasters. When a disaster occurs, the IncidentManagement Center works with governmental agencies to map
the impacted geographical area, identifying potentially impacted
assets in real time to assist servicers with disaster relief and riskmitigation efforts.
SASB FN-MF-450a.3

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Increases in the intensity or frequency of weather-related
disasters could strain the mitigants we currently employ. For
example, in some areas, some insurers have ceased writing new
coverage or have significantly increased insurance premiums
for flood insurance and homeowners insurance. As coveragefor certain perils (e.g., wind, wildfire) becomes unavailable orprohibitively expensive in an area, home prices or multifamily
property values may be negatively impacted, borrowers may
face increased financial strain, and fewer loans in the area
may be eligible for acquisition by Fannie Mae. Ultimately, thedesirability of areas that frequently experience hurricanes,
wildfires, or other natural disasters and face chronic physicalrisks may diminish over time, which can depress property values,
adversely affect the region’s economy, and negatively impact our
financial results. In addition, investors may place greater weighton climate-related risks when making investment decisions,which could increase our cost or ability to transfer credit risk.

Increasing awareness of climate-related risks

For more information on insurance against natural disasters,
including the NFIP and information on FEMA’s update to the
NFIP called Risk Rating 2.0, see “Risk Factors — Credit Risk” and“Management’s Discussion and Analysis of Financial Condition
and Results of Operations (“MD&A”) — Risk Management —Climate and Natural Disaster Risk Management — ClimateRelated Risk Exposure and Risk Mitigation” in our 2022 Form 10K. For more information on our single-family credit risk transfer
transactions, see “MD&A — Single-Family Business — SingleFamily Mortgage Credit Risk Management — Single-Family Credit
Enhancement and Transfer of Mortgage Credit Risk — Credit
Risk Transfer Transactions” in our 2022 Form 10-K, and for more
information on our multifamily credit risk transfer transactions
and our DUS program, see “MD&A — Multifamily Business —Multifamily Mortgage Credit Risk Management — Transfer ofMultifamily Mortgage Credit Risk” in our 2022 Form 10-K.

• Worked on updates to the disclosure process anddocuments for our REO sales to increase transparency on
and access to flood-related information. Under current
residential real estate disclosure rules, which vary from state
to state, potential homebuyers rarely receive information
related to historical flooding and flood risk during thehomebuying process. To help reduce this information gap,
Fannie Mae requires property listing agents to disclose
known flood events to prospective purchasers of our REO
properties where a listing agent has knowledge or reports ofprior flooding events.

Fostering resilience in households
and communities
Fannie Mae is committed to helping homeowners, renters,
and their communities prepare for and respond to natural
disasters and other climate-related risks. This includes
working to increase awareness of climate-related risks,
protecting current and future housing stock, and supporting
disaster recovery and rebuild efforts.

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We see value in making homebuyers and renters more aware ofrisks due to natural hazards. In 2022, we continued to prioritize
raising awareness on issues related to climate risk, including
taking the following actions:• Assisted select communities with climate analytics as apart of our Equitable Housing Finance Plan, with the goalof trying to understand how climate information could be
beneficial for potential future action.
• Launched a flood risk awareness campaign in selectmarkets, focused on educating homeowners both insideand outside FEMA-designated Special Flood Hazard
Areas about the risks of flooding. We hope to increase
homeowners’ understanding of flood risk and hazards, aswell as to educate them on the importance of taking floodrisk mitigation measures.

• Initiated a new nationwide flood survey and aim to share
our insights and analysis with external stakeholders in 2023.

Protecting current and future housing stock
One important way to mitigate climate-related risk is to ensurethat more properties are built or renovated to withstand extreme
weather and other effects of climate change. We are working
to support these efforts in several ways, including throughspecialized loan products and collaboration to strengthenbuilding standards.
Fannie Mae’s HomeStyle® Energy loans provide homeowners
with affordable options for financing upgrades that can
improve the sustainability and resiliency of their homes.

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In addition to energy upgrades such as new insulation or
renewable energy systems, the loans can be used to financeresiliency improvements such as storm surge barriers,
upgraded roofing, or wildfire home hardening. We arealso working to help expand the construction of certified
green homes. (For additional information, see the Green
Homes chapter.)
Improving building standards helps to ensure that climate
risks are taken into account during construction and that bestpractices are shared across communities and the housing
industry. As such, we are focused on external outreach to help
protect current and future housing stock. For example, we
are working with organizations such as the National Instituteof Building Sciences and the Insurance Institute for Businessand Home Safety to develop a roadmap on risk mitigation andresilience investment to help prepare for and better respond to
the effects of climate change.

Supporting disaster recovery andrebuild efforts
When disasters occur, it is vital for individuals and communities
to have the tools they need to recover. In the event of a naturalor other disaster, our servicers work with affected borrowers
to develop a plan that addresses the borrower’s specificsituation. In addition to coordinating with insurance companies
for administration of insurance proceeds, when appropriate,
servicers provide a variety of options to help borrowers return
their loans to current status.
In addition, Fannie Mae, through its partners, offers renters andsingle-family borrowers free financial counseling from HUDapproved housing counselors, including help in developing a
recovery assessment and action plan, filing claims, working withmortgage servicers, and identifying and navigating sources offederal, state, and local assistance.
We also have a dedicated team at Fannie Mae focused on
coordinating company-wide efforts to support communities
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ENVIRONMENT / CLIMATE RISK & RESILIENCE

Operations and sustainability
Although the environmental impacts of our corporate
operations are small in comparison to those of
the broader housing system, managing them is an
important element of our overall ESG strategy. Our
physical offices are the primary sources of our directenvironmental impacts, including their energy use andthe resources used to build and operate them. Our
facilities decisions also have indirect environmental
impacts, such as via employee commutes.
In recent years, we have consolidated our physicalfootprint in the Washington, D.C., and Dallas, Texas,
areas and transitioned the majority of our office spaceto certified green buildings, which employ leading-edge
design, technology, and building practices to reduceenergy and water use and minimize other negativeenvironmental impacts.
Since most of our offices are leased, we often do nothave direct control over many aspects of their operation.
However, where possible, we prioritize the use of energyand resource-efficient technologies and practices
beyond those incorporated into base building design. For
example, at our three largest facilities, we have installedbuilding monitoring and control systems that track realtime usage of spaces and adjust light usage accordingly.

designed to assist renters and borrowers affected by disasters
and also help reduce our losses, and we continue to evaluate
their impact and seek new options and resources to deploy inresponse to disasters.
See the Housing Stability chapter for more information on how
Fannie Mae supports borrowers and renters when disasters strike.

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Green Homes

We align our Green Bonds and eligibility requirementswith industry standards and bodies, such as ENERGY STAR,
WaterSense, the American Society of Heating, Refrigeratingand Air-Conditioning Engineers (ASHRAE), and others.
We annually reassess our Single-Family and Multifamily
Green products and their eligibility criteria to evaluate
opportunities to increase our impact.

Fannie Mae is leveraging our leading role in the mortgage
finance market to encourage property owners and developers
to make environmentally beneficial improvements to theirproperties. At the core of our approach is our support for
single-family and multifamily green financing to improve thesustainability of properties by increasing energy and water
efficiency and reducing greenhouse gas emissions.

Green mortgage financing
We offer financing to lenders for loans that help property owners
and developers invest in greener technologies and building
practices. This includes properties where owners are making
energy and water efficiency improvements, installing renewableenergy generation systems, or have received one of the thirdparty green building certifications recognized by Fannie Mae.

Multifamily green financing
Since 2012, Fannie Mae’s Green Financing program has
supported multifamily owners as they increase the energy andwater efficiency of multifamily housing by integrating green
mortgage loan products into the standard financing process. We
currently offer two Multifamily Green Financing products: Green
Rewards Mortgage Loans and Green Building Certification
Mortgage Loans. These products offer financial incentives forowners to improve the environmental performance of theirproperties. In addition, reduced utility costs improve net cash
flow for property owners and/or increase affordability for renters.
Green Rewards Mortgage Loans encourage investments inefficiency improvements or renewable energy generation forexisting multifamily properties. Owners commit to installing
improvements — within 12 months of loan origination — thatare projected to achieve specified reductions in the property’s
energy usage and water usage that sum to at least 30%, of whicha minimum of 15% must be projected energy savings. Fannie
Mae supports owners in navigating the process of efficiency
upgrades by paying for an energy and water audit, as well as aTechnical Solar Assessment for owners committing to install asolar photovoltaic system. These reports, prepared by qualified
third-party consultants, identify and quantify specific efficiency

and renewable energy improvements owners can make toqualify for a Green Rewards Mortgage Loan. Fannie Mae requiresthat all products, fixtures, and appliances be ENERGY STAR® or
WaterSense® certified, if available.46 In 2022, Fannie Mae financed
over 11,600 rental units with Green Rewards Mortgage Loans.
Green Building Certification Mortgage Loans are loans on
properties that have been built, retrofitted, or operated to highstandards of efficiency and received a third-party green building
certification recognized by Fannie Mae. We conduct an annual
market analysis and a technical evaluation of green building
certifications to determine which certifications are eligible forinclusion in the Green Building Certification program. For more
information on the certifications we currently recognize andother requirements, see Fannie Mae Form 4250. In 2022, Fannie
Mae financed over 43,600 rental units with Green Building
Certification Mortgage Loans.
Our Multifamily Green Bonds are backed by both Green Rewards
Mortgage Loans and Green Building Certification Mortgage
Loans. For more information on these, see Connecting Investors
to Our Mission above.

Single-family green financing
Fannie Mae’s Single-Family Business offers products that support
both improvements of existing buildings and development of
more efficient new homes.
Recognizing that enhancing environmental performance ofexisting homes often requires significant investments, Fannie
Mae’s HomeStyle Energy® mortgage loan improves affordability

46 ENERGY STAR and WaterSense are registered trademarks of the U.S. Environmental Protection Agency.

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TABLE OF CONTENTSENVIRONMENT / GREEN HOMES

and flexibility by allowing financing based on the value of thehome after improvements are made, enabling homeowners toaccess additional upfront funds while potentially decreasing
utility and repair costs in the future. In 2022, Fannie Mae acquired$128.1 million in HomeStyle Energy mortgage loans.
Our Single-Family Green Bonds are backed by loans on newly built
homes with green building certifications. For more informationon these, see Connecting Investors to Our Mission above.

Projected impacts of our green bonds
Based on third-party projections, we estimate the loans on
properties underlying Fannie Mae’s 2022 Green Bond issuances willsave approximately 888 million kilo British thermal units (kBtu) ofenergy. As a result, we estimate the loans on properties underlying
our 2022 Green Bonds will prevent approximately 41,000 metrictons of carbon dioxide equivalent (mtCO2e) in greenhouse gas
emissions. In addition, based on third-party projections, weestimate the loans on properties underlying our 2022 Multifamily
Green Bonds will save approximately 116 million gallons of water.
Our estimates of the positive environmental impacts of the loansbacking the Green Bonds that we issue are based on a projected
one-year impact, even though many of the environmental benefitsof these loans may continue to be realized for more than one year.47
We believe the loans backing the Green Bonds we issue also
generate positive social impact, including by reducing the energy
costs faced by households. Based on third-party estimates, we
project that our 2022 Green Bonds could result in average annual
utility cost savings of approximately $219 for households in singlefamily housing and $205 for households in multifamily housing.48
See Table 12. Projected Green Bond Impacts in the Data
Tables section of the Appendix, Connecting Investors to Our
Mission above, and our Bond Impact Reporting webpage formore information.

47 For a description of our methodology for estimating the positive environmental impact of the loans backing our Green Bonds, see the impact methodology on our Green Bonds webpage.
48 Multifamily estimates based on Green Rewards loans only. See the impact methodology on our Green Bonds webpage for more details.

Evolving the industry’s approach
Fannie Mae works to expand knowledge about electrification and decarbonization for the multifamily
industry.49 Electrification is the process of reducing or eliminating the need for fossil fuel-based systems inbuildings and can also include on-site renewable energy generation and battery storage. Properties thatelectrify switch from fossil fuel-based systems to all-electric systems. The electric grid that powers thosesystems is becoming cleaner as more power is generated from renewable sources.50
Through active engagement in conferences, trainings, and roundtables, as well as published reports, we
continue to invest in educating the market about the benefits of efficiency improvements, electrification,and decarbonization, and Fannie Mae’s Multifamily Green Financing program has created tools to support
stakeholders pursuing these opportunities.
For example, Fannie Mae’s energy and water audit — the High Performance Building Assessment — was
updated in 2022 to include a new electrification assessment and accompanying guide, intended to educate
multifamily property owners, our DUS lenders, and the energy audit industry about the opportunities
and barriers to electrification at the property level. Our goal in developing resources like this is to facilitate
multifamily industry awareness of, and stimulate progress toward, a lower-carbon future.
49 For more information, see “Developing the Fannie Mae Multifamily Electrification and Decarbonization Roadmap,” 2023.
50 U.S. Department of Energy, “Reimagining and rebuilding America’s energy grid,” 2021.

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GOVERNANCE / CORPORATE GOVERNANCE & ESG OVERSIGHT

2022 ESG Report

GovernanceCorporate Governance& ESG OversightFannie Mae maintains a corporate governance structure
focused on upholding high standards of corporate conductand compliance. Our Corporate Governance Guidelines andbylaws establish the structure, roles, and responsibilitiesof our Board of Directors and leadership team, along withother key governance policies and practices. Our governanceframework also provides for oversight of our ESG strategy andperformance.
Because Fannie Mae is currently in conservatorship, its Boardof Directors serves on behalf of Fannie Mae’s conservator,
FHFA, and exercises its authority as directed by and with theapproval of, where required, the conservator. See our 2022
Form 10-K for more information on our Board of Directors andexecutive officers, including the composition of our Board andspecified corporate governance matters, as of the 2022 Form
10-K filing date.

ESG and climate oversight
The Senior Vice President (SVP) of ESG reports to the Chief
Administrative Officer and is responsible for the overall
direction of our ESG strategy as well as oversight of our work
to integrate ESG priorities throughout our business. The ESG
team partners with internal and external stakeholders todevelop and implement our ESG strategy in accordance withthe policies and priorities set by our senior management andBoard of Directors.

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Climate risk management and oversight
Our SVP Chief Climate Officer is responsible for developing ourcapabilities for managing risks and opportunities associatedwith the impact of climate change on housing and on ourbusiness. The Chief Climate Officer, who reports to the Chief
Financial Officer, sets strategic direction, drives first-line
integration and risk management, and develops the people,
processes, and technology to identify, assess, manage, andmonitor climate-related risks in alignment with our Enterprise
Risk Management (ERM) framework.
The Climate Impact team, led by the Chief Climate Officer, isthe centralized group responsible for understanding the risks
climate change poses for Fannie Mae and coordinating Fannie
Mae’s efforts to mitigate those risks. The team works closely with
our first-line Single-Family and Multifamily Business teams andsecond-line ERM function.
ERM develops and leads the enterprise integration of climaterelated risk into Fannie Mae’s risk management frameworkand supporting processes. ERM also provides oversight on andeffective challenge to the Climate Impact team and first-line riskowners. Additionally, several management-level committees,
including the Enterprise Risk Committee, oversee the company’s
climate-related risk activities.
The table below provides more information on oversight andmanagement of ESG and climate matters by our Board of
Directors, senior management, selected corporate functions,and specialist teams.

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GOVERNANCE / CORPORATE GOVERNANCE & ESG OVERSIGHTOVERSIGHT OF ESG ACTIVITIES AT FANNIE MAE

ESG strategy

Board oversightManagement oversight and accountability

The Community Responsibility and Sustainability
Committee oversees development andimplementation of strategy related to ESG andclimate, including access to credit, affordable housing,climate risk and resilience, racial equity in housing
finance, fair lending, and sustainability, including ourgreen financing activities.

The Management Committee oversees the development andimplementation of the company’s ESG strategy and goals. The
Management Committee recommends annual management performancegoals to the Board, including goals relating to ESG, and oversees
management’s progress in achieving those goals. ESG strategy is led by the
SVP of ESG, within our Chief Administrative Office. Climate strategy is led
by our Chief Climate Officer, within the office of the Chief Financial Officer.
The ESG Advisory Council is a cross-functional senior management
council whose primary roles are to promote transparency of ESG efforts
across Fannie Mae, enable effective prioritization and resource allocation
across ESG efforts, and inform decision-making for high-priority ESG issues.

Riskmanagement

The Risk Policy and Capital Committee oversees
the company’s risk management framework, which
includes climate-related risks.

The Enterprise Risk Committee oversees enterprise-wide risk
management activities, including for strategic, reputational, compliance,
credit (including counterparty), market, funding and liquidity, andoperational (including model) risks. Fannie Mae has several othermanagement-level committees that escalate to the Enterprise Risk
Committee and cover specific areas of risk applicable to the company.
The Enterprise Risk Management (ERM) division is responsible fordeveloping and maintaining the company’s integrated risk management
program, including establishing appropriate policies and frameworks
and cultivating a proactive corporate risk culture. ERM, Compliance &Ethics, and support functions such as Finance and Human Resources arecharged with independent monitoring and oversight of risk associatedwith their areas of expertise.

ESG reporting& disclosures

The Audit Committee provides oversight of
ESG-related reporting and disclosures, including
approval of the company’s ESG Report, as well as
any external assurance over that reporting.
The Nominating and Corporate GovernanceCommittee oversees engagement with investors
and ESG ratings agencies regarding ESG mattersand related communications.

Human Capitaland D&I51

The Compensation and Human CapitalCommittee approves our Compensation Policy,
oversees our diversity and inclusion program
and related policies and practices, oversees
other elements of the company’s human capitalmanagement, and assists the Board in its oversightof ESG-related compensation metrics. The
Compensation and Human Capital Committee andthe Board of Directors annually assess performanceagainst the Board of Directors’ goals. In 2022, theBoard of Directors’ goals included goals related to
ESG and Housing Access strategic objectives.
The Board of Directors, upon the recommendationof the Compensation and Human CapitalCommittee, annually approves the company’s
Diversity & Inclusion Strategic Plan and thecompany’s Diversity & Inclusion Policy, which
together set the framework, goals, and targets forour diversity and inclusion program. The Board andthe Compensation and Human Capital Committee
also receive regular reporting from Fannie Mae’s
Office of Minority and Women Inclusion.

The Disclosure Committee reviews our annual ESG Report and evaluates
the effectiveness of our controls relating to such report.
Development of the ESG Report is coordinated by the ESG team, in close
partnership with the Climate Impact team and other relevant teams
throughout our business.
Members of the ESG team, alongside Fannie Mae’s Investor Relations
and Marketing team, engage with key stakeholders in a variety of venues.
The Management Committee reviews and recommends to the Board’sCompensation and Human Capital Committee the annual Board
Goals and periodically monitors status toward achieving the goals.
The Management Committee also oversees Fannie Mae’s diversity andinclusion program and activities.
Human Resources manages the development and implementation ofpolicies concerning employee compensation and benefits, recruitment,
training, and well-being.
Our Office of Minority and Women Inclusion, which is led by Fannie
Mae’s SVP and Chief Diversity & Inclusion Officer, coordinates our D&I
Strategic Plan in close partnership with key stakeholders across ourbusiness.

51 For more information on ESG-related compensation metrics, see our 2022 Form 10-K, pp. 189 – 194.
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GOVERNANCE / RISK MANAGEMENT

Risk Management
Effective risk management is essential to Fannie Mae’s ability
to provide liquidity, stability, and access to credit to the U.S.
housing market and to fulfill our mission to facilitate equitable
and sustainable access to homeownership and quality,
affordable rental housing across America. To ensure the safety
and soundness necessary to advance our mission through all
market cycles, we undertake activities that support integrated
risk management across our business, promoting risk
awareness and ensuring a consistent and disciplined approachto operating within an appropriate risk tolerance.

Risk culture and capabilities
Risk management is a responsibility shared by every Fannie Mae
employee. That’s why we work to build and maintain a proactive
risk culture and to provide employees with the knowledge
and resources they need to recognize and respond to risks
that arise in our business. This includes policies, procedures,
tools, trainings, and other resources we use to embed risk
management across the company, such as our enterprise-wide
digital Governance, Risk, and Compliance platform for enabling
efficient and effective management of risk and compliance.
For more information on Fannie Mae’s risk management,
including a description of our ERM program and our primaryareas of risk exposure, see the “MD&A — Risk Management”
section of our 2022 Form 10-K.

Climate risk management
We are actively taking steps to integrate climate risk considerations into our ERM framework as the risks
associated with climate change become an increasing focus for our business. This section outlines ourapproach to climate risk management within our broader risk management framework.
Notably, the timing and severity of climate change events and societal changes in reaction to them aredifficult to predict. As a result, while we are taking steps to integrate climate risk considerations into our ERM
framework, our risk management strategies may not be effective in mitigating our climate risk exposure.
As regulators begin to mandate additional disclosure of climate-related information by companies acrosssectors, there may continue to be a lack of information needed for more robust climate-related risk analyses.
Third-party exposures to climate-related risks and other data generally are limited in availability and variable
in quality. Modeling capabilities to analyze climate-related risks and interconnections are improving but
remain incomplete. We believe these limitations will affect our ability to manage climate-related risks.
For additional information on how we measure and respond to climate risks associated with our business, see
the Climate Risk & Resilience chapter. For additional information on climate risk governance, see the Corporate
Governance & ESG Oversight chapter.

Risk definition and taxonomy
Fannie Mae maintains a corporate risk taxonomy that aligns with our seven primary risk categories.52
We view climate risk as a transverse risk driver that can manifest through a variety of the existing risk
categories across our risk taxonomy.

52 For more information on our primary risk categories, see our 2022 Form 10-K, p. 136.

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GOVERNANCE / RISK MANAGEMENT

We are leveraging the TCFD categorization of physical and transition climate risks (see the Climate Risk &Resilience chapter). We have begun integrating physical and transition climate risks into our corporate risktaxonomy, building a foundation to inform more granular risk identification and assessment across the company.

Establishing our climate-related risk management framework
Our ERM and Climate Impact teams continue to evolve Fannie Mae’s approach to climate-related risk
management as the risks associated with climate change become an increasing focus for our business.
We are integrating climate risk considerations into our ERM framework. We are focused on developing andimplementing a comprehensive, integrated approach to the identification, assessment, and managementof climate-related risks. In furtherance of this goal, during 2022 we took steps including establishing annual
cadence guidelines for climate-related discussions at relevant management-level risk committees
and incorporating climate-related considerations into our key business decision review process.
Our focus for 2023 is to continue integration of climate-related risks into our ERM framework through:• Establishing a management-level committee to govern and facilitate climate risk management.
• Continuing to pilot processes for climate-related risk identification, assessment, and monitoring.

Internal climate training and support
Our strong risk management and governance depends upon employees being well-informed and awareof the risks facing our business and the housing industry. Led by the Climate Impact team, several climate
management and awareness-building initiatives are in place to help increase understanding of climate-related
matters and ensure business units are integrating climate-related risks into their day-to-day considerations
and actions. This includes the development of a climate-related risk e-learning course and a growing Climate
Action Working Group comprised of leaders across the enterprise.

© 20 2 3 Fan n i e M ae

2022 ES G Re p o r t | 44

TABLE OF CONTENTS

GOVERNANCE / BUSINESS ETHICS

Business Ethics
SASB FN-IB-510b.4

Earning and maintaining stakeholders’ trust is essential to our
mission. We maintain high standards for ethical conduct for our
employees, our Board, and those with whom we do business.

Employees are required to take annual Employee Code of
Conduct training and, as part of that training, certify that they
have read and understand the Employee Code.

Employee Code of Conduct

Director Code of Conduct

The Fannie Mae Employee Code of Conduct (the “Employee
Code”) outlines the standards and behaviors we expect of all
employees and is firmly rooted in our mission and values. In
addition to guiding principles, the Employee Code establishes
specific expectations for issues, including legal and regulatorycompliance, non-discrimination, non-retaliation, workplace safety,
anti-fraud, antitrust, conflicts of interest, and more. The Employee
Code is supplemented by related internal policies, standards,
and procedures, as well as the Employee Handbook, which
together provide detailed guidance for identifying and managing
compliance, legal, and ethical issues across our business.

Fannie Mae’s Code of Conduct for the Board of Directors (the“Director Code”) outlines duties and responsibilities of membersof the Board, provides guidance to help them recognize and deal
with ethical issues, provides mechanisms to report unethicalconduct, and helps foster a culture of honesty and accountability.
Each member of the Board must annually certify their compliancewith the Director Code. The Nominating and Corporate
Governance Committee of the Board of Directors is charged with
the implementation and regulation of the Director Code.

SASB FN-IB-510a.2

Business Partner Code of Conduct

Each employee is responsible for understanding and upholding
the Employee Code in their day-to-day work, including acting toprevent and/or immediately report inappropriate conduct. The
Employee Code outlines several avenues by which employees
may report suspicions of misconduct:a. Employees may report questions or concerns to any
member of their management team, Human Resources,
and/or to our Compliance and Ethics team via the Fannie
Mae Ethics hotline or webline.
b. Employees may report their concerns anonymously throughour internal reporting hotline, webline, email, or regular mail.
c. Employees have the option to confidentially report potential
wrongdoing directly to the Audit Committee of Fannie
Mae’s Board of Directors. Employees are also informed thatthey may raise potential violations or other inappropriate
conduct externally to FHFA’s Office of Inspector General.
Fannie Mae does not tolerate retaliation against any individual
or company that raises a compliance and ethics concern in goodfaith or participates in an investigation.
SASB FN-IB-510a.2© 20 2 3 Fan n i e M ae

SASB FN-IB-510b.4

Our partners — from lenders and servicers who connect our
financing with borrowers and renters, to those providing goods
and services that support our employees — all play a vital role inhelping us achieve our mission. For this reason, Fannie Mae has
worked to develop a Business Partner Code of Conduct, which
formally launched in April 2023. The code outlines Fannie Mae’s
expectations for our business partners, setting out 23 principles
across four pillars: business ethics, diversity and inclusion,
environmental sustainability, and equitable housing. It contains
both required and aspirational practices and encompasses ourpartners’ interactions with their customers and next-tier suppliers.
We also maintain Service Requirements for Contractors andConsultants (SRCC), which require workers employed byour vendor partners to demonstrate ethical behavior in theperformance of services for Fannie Mae. The SRCC further
outlines expected behaviors and guidance for supplierpersonnel, such as valuing and respecting others, avoiding
conflicts of interest, supporting a productive and safe workplace,and raising compliance and ethics concerns. Supplier personnel
are informed of the various channels through which they may
contact our Compliance and Ethics team and/or our vendor
partners to report any concerns.
2022 ES G Re p o r t | 45

TABLE OF CONTENTS

Data Privacy & Security
Breaches in data and information security can lead to major
disruptions that have the potential to cause significant businessharm. Information security risks for large institutions like Fannie
Mae have significantly increased in recent years, and from time
to time Fannie Mae has been, and we expect will continue tobe, the target of attempted cyber attacks and other information
security threats. In addition, factors such as the evolving natureof these threats, our migration to cloud-based systems, and theinterconnectivity and interdependence of third parties to oursystems heighten these risks. As of publication of this reporton June 30, 2023, we had not experienced any material losses
relating to cyberattacks.

GOVERNANCE / DATA PRIVACY & SECURITY

Fannie Mae’s Information Security team is responsible fordetecting, investigating, and responding to information security
threats and incidents that have a potential impact on Fannie
Mae’s information and technology environment.
Cybersecurity risk is overseen by the Board of Directors and
its Risk Policy and Capital Committee. The Board has alsodelegated oversight authority for specified cybersecurity
risk matters to certain management-level committees. The
Board and the Risk Policy and Capital Committee engage indiscussions with management on cybersecurity risk matters andreceive periodic reports from the company’s Chief Information
Security Officer and other officers. Management also discusses
cybersecurity developments with the Chair of the Risk Policy andCapital Committee and other Board members between Boardand committee meetings, as appropriate.

Cybersecurity risk management
SASB FN-CB-230a.2

Data privacy

Fannie Mae continually works to secure and protect the financial
information of millions of borrowers, as well as information
related to lenders, servicers, employees, investors, and website
visitors. We have developed and continue to enhance ourcybersecurity risk management program to protect the security of
our computer systems, software, networks, and other technology
assets against unauthorized attempts to access confidential
information or to disrupt or degrade business operations. Our
cybersecurity risk management program aligns with the National
Institute of Standards and Technology (NIST) Framework for
Improving Critical Infrastructure Cybersecurity and has evolved
based on the changing needs of our business, the evolving threat
environment, and FHFA regulatory guidance. Our cybersecurity
risk management program extends to oversight of third parties
that could be a source of cybersecurity risk, including lenders thatuse our systems and third-party service providers.

Everyone at Fannie Mae shares the responsibility to protect
data and information. Our Employee Code and related
policies — including our Confidential Information and Privacy
Policy, Information Security Policy, Technology Use Standard,and Cyber Risk Policy — establish clear expectations,procedures, and other requirements for how we help protect
and manage information.

We examine the effectiveness and maturity of our cyberdefenses through various means, including internal audits,targeted testing, incident response exercises, maturity
assessments, and industry benchmarking. We continue tostrengthen our partnerships with the appropriate government
and law enforcement agencies and with other businesses andcybersecurity services in order to understand the full spectrumof cybersecurity risks in the environment, enhance our defenses,
and improve our resiliency against cybersecurity threats. We also
maintain insurance coverage relating to cybersecurity risks.

© 20 2 3 Fan n i e M ae

Our data privacy program, including our policies andprocedures, is governed by our Compliance & Operational
Risk Committee and Enterprise Risk Committee. The
dedicated Privacy Office manages policy development andimplementation, develops and provides training throughout
the enterprise, performs privacy risk assessments and tests,
and owns monitoring and incident management functions.
Employees recertify their adherence to the data privacy policies
and best practices annually.
The Privacy Office initiates the Privacy Event Response Team(PERT) in the case of a privacy threat or incident that could
have a significant impact on Fannie Mae. PERT is a crossfunctional team charged with leading, analyzing, escalating,and communicating to help ensure that clients, regulators,
and/or other parties are appropriately notified of privacyrelated security incidents, where required by applicable law,
contract, or regulation.

2022 ES G Re p o r t | 46

TABLE OF CONTENTS

Consumer data
Fannie Mae’s business inherently relies on confidential
information, including data related to individual consumers,
collected directly by Fannie Mae or by a third party on ourbehalf. Our Employee Code is the basis for our employees’
understanding of their important responsibility to help
safeguard the confidentiality, security, and integrity of all
personal information and respect the privacy of others. Our
procedures to implement this include using non-public personal
information only for legitimate business purposes, using theminimum amount of data needed, and implementing robustaccess controls on this material.
As reflected in our Online Privacy Notice, Fannie Mae enables
individuals to request information regarding their personal data.
Requests may include: to know what information the company
possesses; to access that information; to correct or delete it; andto opt out of collection, sale, and sharing of that information.

Borrower privacy
We are dedicated to both the needs of our investor community
and the protection of the borrowers of our mortgage loans
and, as such, strive to develop creative solutions to provide
the market with relevant, mortgage-related information
while managing the delicate balance between privacy andtransparency.

© 20 2 3 Fan n i e M ae

GOVERNANCE / DATA PRIVACY & SECURITY

Fannie Mae is required by law to disclose to potential investors
information related to the mortgage securities that it issues tothe public. As we contemplate any new disclosures, we evaluate
the potential implications for borrower privacy and look for ways
to reduce the possibility of borrower identification by modifying,masking, or not disclosing certain data points. In addition, we
periodically review our disclosures holistically to evaluate thepotential of borrower deanonymization.

Employee training
Our staff is required to take annual training regarding the useof technology. This training covers protecting Fannie Mae
confidential information and data, policy and standard controls,
information security best practices, and identifying and reporting
potential cyber threats.
For more information on risks related to cybersecurity andFannie Mae’s management of these risks, see the cybersecurityrelated risk factor in “Risk Factors” and the “MD&A — Risk
Management — Operational Risk Management — Cybersecurity
Risk Management” and “Corporate Governance — Risk
Management Oversight — Board’s Role in Cybersecurity Risk
Oversight” sections of our 2022 Form 10-K (pp. 47 – 49, 154 – 155,176), 2021 Form 10-K (pp. 46 – 47, 161, 184 – 185), and 2020 Form
10-K (pp. 49 – 50, 164 – 165, 183 – 184).
SASB FN-CB-230a.2

2022 ES G Re p o r t | 47

TABLE OF CONTENTS

GOVERNANCE / REGULATORY ENGAGEMENT

Regulatory Engagement
As a federally chartered corporation and as a financial
institution, Fannie Mae is subject to government regulation andoversight. FHFA, our primary regulator, regulates our safety andsoundness and our fulfillment of our mission. FHFA also acts
as our conservator. See our 2022 Form 10-K for a discussion ofmatters related to regulation, legislation, and conservatorship.
As a government-sponsored enterprise, Fannie Mae is subject
to special regulatory requirements to fulfill annual goals forsupporting affordable housing and to set and achieve goals
related to mortgage financing in underserved markets. The
Financial Safety and Soundness Act of 1992, as amended (“theAct”), requires that FHFA establish affordable housing goals
for Fannie Mae that a specified amount of mortgage loans
we acquire meet standards relating to affordability, primarily
measured by household income, or location. The Act alsoestablishes Duty to Serve requirements for Fannie Mae tofacilitate a secondary market for mortgages on housing forvery low-, low-, and moderate-income households in three
underserved markets: manufactured housing, affordable
housing preservation, and rural housing.53
Fannie Mae, in conservatorship, does not engage any registeredlobbyists. The company also does not make political contributions.

Contributions to government
and taxation
Fannie Mae contributes funding to the federal government in a
number of ways, including:• Treasury Capital Magnet Fund and HUD Housing TrustFund. We are required by federal legislation to set aside
in each fiscal year an amount equal to 4.2 basis points foreach dollar of the unpaid principal balance of our total new
business purchases and to pay this amount to the following
funds: the U.S. Department of the Treasury’s Capital Magnet
Fund, which finances affordable housing, economic
development activities, and community service facilities, and
HUD’s Housing Trust Fund, which finances the production orpreservation of affordable housing through the acquisition,
new construction, reconstruction, and/or rehabilitation of
non-luxury housing. We paid $598 million to these funds in
2022, based on our new business purchases in 2021.
• Federal income taxes. Fannie Mae’s effective tax rateof 20.4% for 2022 is very close to the statutory federal
corporate income tax rate of 21%. Fannie Mae is exempt byfederal statute from state and local income taxes. For more
information about Fannie Mae’s federal income taxes, refer
to Note 9 — Income Taxes in the notes to consolidated
financial statements in our 2022 Form 10-K.
• Dividend payments to Treasury. Fannie Mae has
made $181.4 billion in cumulative dividend payments
to Treasury since entering conservatorship in 2008. This
exceeds the $119.8 billion in cumulative amounts Fannie
Mae has drawn from Treasury. Under the terms of thesenior preferred stock purchase agreement with Treasury,
dividend payments we make to Treasury do not offset
our draws of funds from Treasury. Under the current
dividend provisions of the senior preferred stock, weare not required to pay further dividends on the seniorpreferred stock until our net worth exceeds the amount ofadjusted total capital necessary for us to meet the capitalrequirements and buffers under the Enterprise Regulatory
Capital Framework issued by FHFA.
• TCCA fees. Pursuant to the Temporary Payroll Tax Cut
Continuation Act of 2011, as amended by the Infrastructure
Investment and Jobs Act of 2021 (“TCCA”), since April 2012
we have collected 10 basis points in guaranty fees on the
single-family residential mortgages delivered to us andremitted these fees to Treasury. In 2022, our TCCA fees
accrued amounted to $3.4 billion.54• FHFA expenses. Under federal legislation, FHFA
establishes an annual assessment to Fannie Mae for FHFA’s
costs and expenses. In 2022, Fannie Mae recorded anannual assessment of $132 million for FHFA expenses.

53 For more information and to read our most recent Underserved Markets Plan document, please visit our website.
54 In our 2021 ESG Report, we included the amount of TCCA fees paid. In this publication, we report the fees accrued to align with our financial reporting. Payments lag
accruals by one quarter.

© 20 2 3 Fan n i e M ae

2022 ES G Re p o r t | 48

TABLE OF CONTENTSAPPENDIX / ADDITIONAL RESOURCES

2022 ESG Report

Appendix
Additional Resources
The resources provided below are included for readers seeking
to learn more about some of the reports, policies, procedures,and practices referenced throughout this report. For more
information on our environmental, social, and governanceefforts, please visit Fannie Mae’s ESG website.

Policies, practices, and plans
Single-Family Selling Guide
Single-Family Servicing Guide
Multifamily Selling and Servicing Guide
Sustainable Bond Framework

Reporting and data

Single-Family Green Bond Framework

Fannie Mae 2022 Form 10-K

Multifamily Green Bond Framework

Fannie Mae 2021 Form 10-K

Employee Code of Conduct

Fannie Mae 2020 Form 10-K

Code of Conduct for the Board of Directors

Annual Housing Activities Report (AHAR)
and Annual Mortgage Report (AMR)

Business Partner Code of Conduct

Equitable Housing Finance Plan Performance Report
Green Bond Impact Reporting
Data Dynamics
DUS Disclose

Service Requirements for Contractors and Consultants
Equal Opportunity in Employment and Contracting
Online Privacy Notice for Fannie Mae
Duty to Serve Underserved Markets Plan
Equitable Housing Finance Plan

PoolTalkMortgage product information
Single-Family Mortgage Products
Multifamily Mortgage Products and Specialty Financing
Pilot Activities© 20 2 3 Fan n i e M ae

2022 ES G Re p o r t | 49

TABLE OF CONTENTSAPPENDIX / DATA TABLES

Data Tables
Contents

Relevant SASB
Indicator

1

Single-Family and Multifamily Loan Acquisitions

FN-MF-000.B

2Single-Family Housing Mortgage Acquisitions by Year, by Select Characteristics†

3

Multifamily Housing Mortgage Acquisitions by Year, by Select Characteristics†

4

Multifamily Social Bond Issuance

FN-IB-410a.2

5

Certain Characteristics of Outstanding Single-Family Mortgage Loans

FN-MF-270a.1

6Single-Family Loan Modifications, Foreclosure Alternatives, and Foreclosures

FN-MF-270a.2

7

Education & Counseling

FN-CB-240a.4

8Single-Family Mortgage Loan Acquisitions by Race or Ethnicity of Borrowers

FN-MF-270b.1

9Representation by Racial or Ethnic Group and Gender as a Percentage of Job Category

FN-IB-330a.1

10

Board of Directors Representation by Racial or Ethnic Group and Gender†

11

Green Bond Issuance

12

Projected Green Bond Impacts†

13

Single-Family and Multifamily Loans Requiring Flood Insurance

Table

†

FN-IB-410a.2

FN-MF-450a.1

This table was not subject to Deloitte & Touche LLP’s review, and accordingly Deloitte & Touche LLP does not express a conclusion or any form of assurance on such information.

Note on loan-related metrics
Loan-related metrics in this report’s data tables are based
primarily on mortgage loans on Fannie Mae’s consolidatedbalance sheet, unless otherwise noted. References in this report
to mortgage loans on Fannie Mae’s consolidated balance sheetrefer to those in Fannie Mae consolidated trusts and those in
Fannie Mae’s retained mortgage portfolio that are reported as
Held for Investment or Held for Sale. The loan-related metrics
exclude certain loan populations for which we do not haverelevant data, amounting to $9.6 billion in unpaid principalbalance (UPB) as of December 31, 2022; the largest of these isreverse mortgages, with $9.3 billion in UPB (less than 0.3% of
the total UPB of single-family mortgage loans on Fannie Mae’s
consolidated balance sheet as of December 31, 2022).

© 20 2 3 Fan n i e M ae

Data tables in this report related to our Multifamily Businessgenerally include a small population of off-balance sheet credit
enhancements Fannie Mae has provided. Our climate-related
data tables also include small off-balance sheet populations oflong-term standby commitments, credit enhancements, andgovernment-insured mortgage loans.
Within this document, we report loan value in terms of unpaid
principal balance, with no adjustments for fair value, cost basis
adjustments, expected credit losses, or charge-offs.

2022 ES G Re p o r t | 50

TABLE OF CONTENTSAPPENDIX / DATA TABLESTABLE 1. SINGLE-FAMILY AND MULTIFAMILY LOAN ACQUISITIONSSASB FN-MF-000.B

Number of Loans & Units

Unpaid Principal Balance at Acquisition

For the Year Ended December 31,

For the Year Ended December 31,

2022

2022

2021

2020

(Loans & units in thousands)

2021

2020

(Dollars in millions)Single-Family:

2,036.9

4,812.3

4,856.6$

614,861$ 1,354,758$ 1,358,851

Home purchase loans

1,150.9

1,486.9

1,481.3$

377,981$451,392$

411,055

Refinance loans

885.9

3,325.4

3,375.3$

236,880$

903,366$

947,796

3.6

4.2

5.1

$

69,215$69,460$76,022

597.9

622.5

744.2

Multifamily:
Loans
Units financed55

55 Reflects new multifamily units financed by first liens; excludes second liens on multifamily units for which we had financed the first lien, as well as manufactured housing rentals.
Numbers of units financed in 2021 and 2020 have been updated in this report from the numbers reported in the company’s 2021 and 2020 Form 10-K filings to exclude previously
included second liens and manufactured housing rentals. Second liens and manufactured housing rentals are included in loan count and unpaid principal balance. Numbers intable may not sum due to rounding.

© 20 2 3 Fan n i e M ae

2022 ES G Re p o r t | 51

TABLE OF CONTENTSAPPENDIX / DATA TABLESTABLE 2. SINGLE-FAMILY HOUSING MORTGAGE ACQUISITIONS BY YEAR, BY SELECT CHARACTERISTICS †Number of Loans

Unpaid Principal Balance at Acquisition

For the Year Ended December 31,

For the Year Ended December 31,

2022

2022

2021

2020

(Loans in thousands)

2020(Dollars in millions)Single-Family Owner-Occupied Loans(1 – 4 housing units)56

1,786.6

4,272.0

4,192.6$

548,445$ 1,212,242$ 1,172,685

Home Purchase Loans

1,001.7

1,279.2

1,235.2$

337,253$

396,665$

347,644

69.1

96.0

92.5

$

10,795$

14,713$

13,151

6.9 %

7.5 %

7.5 %

59.8

80.3

81.1

6.0 %

6.3 %

6.6 %

Income ≤ 50% of Area Median Income (AMI)% of owner-occupied home purchase loans
Income > 50% to 60% AMI% of owner-occupied home purchase loans
Income > 60% to 80% AMI% of owner-occupied home purchase loans
Income > 80% to 100% AMI% of owner-occupied home purchase loans
Income > 100% to 120% AMI% of owner-occupied home purchase loans
Income >120% AMI% of owner-occupied home purchase loans
First-time homebuyers% of owner-occupied home purchase loans
†

2021

146.6

194.0

192.5

14.6 %

15.2 %

15.6 %

150.7

189.0

180.7

15.0 %

14.8 %

14.6 %

134.5

165.2

156.9

13.4 %

12.9 %

12.7 %

441.0

554.8

531.4

44.0 %

43.4 %

43.0 %

539.2

703.4

639.9

53.8 %

55.0 %

51.8 %

3.2 %$12,289

3.7 %
$

3.6 %
$

37,24745,895$46,454$

184,572$

176,065
52.2 %

53,53352,718$213,391$

211,668
53.4 %

45,952
13.2 %$

44,91712.9 %$

53.8 %$

41,72812.0 %

13.3 %

54.7 %$$

13.5 %

13.8 %$

46,436

14,737
4.2 %

11.7 %

13.6 %$$

4.0 %

11.0 %$

15,873

3.8 %

187,15953.8 %$

172,42049.6 %

This table was not subject to Deloitte & Touche LLP’s review, and accordingly Deloitte & Touche LLP does not express a conclusion or any form of assurance on such information.

56 Household income as a percentage of AMI in this table is as of loan origination.

© 20 2 3 Fan n i e M ae

2022 ES G Re p o r t | 52

TABLE OF CONTENTSAPPENDIX / DATA TABLESTABLE 3. MULTIFAMILY HOUSING MORTGAGE ACQUISITIONS BY YEAR, BY SELECT CHARACTERISTICS 57 †For the Year Ended December 31,58
2022

2021

2020

0.5

0.6

0.6

Multifamily Affordable Housing59
Number of loans for Multifamily Affordable Housing (thousands)
Value of loans for Multifamily Affordable Housing (UPB at acquisition, $ millions)$

10,269

$

9,585

$

7,946

Number of units with rent and income restrictions considered affordable (thousands)60
Income ≤ 50% AMI

22.5

24.1

20.9

Income > 50% to 60% AMI

39.6

36.3

34.0

Income > 60% to 80% AMI

14.5

10.3

11.0

Income > 80% to 100% AMI

0.1

0.1

0.2

Income > 100% to 120% AMI

0.5

0.4

0.3

Income > 120% AMI

0.3

*

0.1

Income ≤ 50% AMI

123.0

80.4

91.5

Income > 50% to 60% AMI

116.7

103.5

129.0

Income > 60% to 80% AMI

169.9

193.9

211.9

Income > 80% to 100% AMI

70.6

100.5

104.0

Income > 100% to 120% AMI

24.1

37.7

39.4

0.3

0.3

0.4

Number of units with reported rents considered affordable (thousands)61

Manufactured Housing (MH) Communities
Number of loans for MH Communities (thousands)62
Value of loans for MH Communities (UPB at acquisition, $ millions)
Number of MH pads financed (thousands)

$

2,363
55.6

$

3,157
66.2

$

5,243
106.5

* Represents value less than 50 units.
†

This table was not subject to Deloitte & Touche LLP’s review, and accordingly Deloitte & Touche LLP does not express a conclusion or any form of assurance on such information.

57 Multifamily figures in this table include both mortgage loans on our consolidated balance sheet and a small population of off-balance sheet credit enhancements provided by
Fannie Mae.
58 Based on the date of loan acquisition by Fannie Mae.
59 Financing for rent-restricted properties and properties receiving other federal and local subsidies. Affordable housing acquisitions reported here include loans with properties
for which 20% or more of the units financed are restricted to be affordable at or below 80% AMI.
60 Affordable as defined by the individual program, e.g., LIHTC or HUD Section 8, based on rent and income restrictions reported at origination. This metric counts any units thatare reported as restricted, with no excluded property types.
61 Affordable as defined by FHFA in CFR 1282.19, based on rents reported at loan origination. Rents may change following loan origination. Reported rents are prior to any use oftenant-based vouchers. This metric excludes manufactured, seniors, student, and co-op housing. Seniors, student, and co-op property types are included in FHFA housing goals
calculations, as reported in our Annual Housing Activities Report.
62 In cases where multiple loans for MH communities are grouped into one structured transaction, they are counted here as a single loan.

© 20 2 3 Fan n i e M ae

2022 ES G Re p o r t | 53

TABLE OF CONTENTSAPPENDIX / DATA TABLESTABLE 4. MULTIFAMILY SOCIAL BOND ISSUANCE 63
For the Year Ended December 31,

SASB FN-IB-410a.2

2022

2021

2020

Number of Social Bonds issued

925

829

—

Number of loans (thousands)64

1.0

0.9

—

Value of Social Bonds issued (UPB at issuance, $ millions)
Total number of housing units financed by loans that back Social Bonds (thousands)†$

11,821$

10,456

$

—

167.1

134.6

—

Households ≤ 50% AMI†

47.5

24.1

—

Households > 50% to 60% AMI†

48.4

35.4

—

Households > 60% to 80% AMI†

8.1

15.5

—

Number of social bond resecuritizations

2

2

—

773

955

—

Number of units financed by loans that back Social Bonds with restricted and unrestrictedaffordability (thousands)65 †Value of social bond resecuritizations (UPB at issuance, $ millions)†

Numbers of units financed, including the affordability breakdown by income levels, were not subject to Deloitte & Touche LLP’s review, and accordingly Deloitte & Touche LLP
does not express a conclusion or any form of assurance on such information.

63 Fannie Mae released its first labeled Social Bonds in 2021.
64 Within this table, loans are classified by the year in which they were securitized into a Social Bond, rather than the year Fannie Mae acquired them.
65 Unit counts include the number of rent restricted units, as defined by the individual program, for Social Bonds financing Restricted Affordable Housing and the number of rent-based
affordable units, as defined by FHFA in CFR 1282.19, for Social Bonds financing Unrestricted Affordable Housing. See our Sustainable Bond Framework for more information.

© 20 2 3 Fan n i e M ae

2022 ES G Re p o r t | 54

TABLE OF CONTENTSAPPENDIX / DATA TABLESTABLE 5. CERTAIN CHARACTERISTICS OF OUTSTANDING SINGLE-FAMILY MORTGAGE LOANS 66
MGMT FN-MF-270a.167

Number of Loans

Unpaid Principal Balance

As of December 31,
2022

2021

As of December 31,
2020

2022

(Loans in thousands)
Hybrid or Option ARM68

2021

2020

(Dollars in millions)

39.4

48.2

62.0

$

4,047

$

5,366

$

7,549

4.4

5.2

6.5

$

365

$

463

$

636

*

*

*

FICO > 660

33.2

40.7

52.5

As a % of total outstanding single-family
mortgage loans

0.2 %

0.2 %

0.3 %

FICO not available69

1.8

2.3

2.9

*

*

*

Higher Rate70

410.1

403.0

437.5

$

73,002$

68,072$

66,633

FICO ≤ 660

79.6

82.5

100.1

$

12,107$

11,733$

14,288As a % of total outstanding single-family
mortgage loans

0.5 %

0.5 %

FICO ≤ 660
As a % of total outstanding single-family
mortgage loans

As a % of total outstanding single-family
mortgage loans

FICO > 660

330.0

320.0

$

336.8

1.9 %

1.8 %

2.0 %

FICO not available

0.5

0.5

0.6

*

*

*

3,630

*
$

0.1 %
$

51

$

60,832

63
*

6,821

68

0.2 %
$

92
*

0.3 %
$

1.7 %
$

$

*

0.3 %
$

4,834

*

0.1 %

*

0.6 %

As a % of total outstanding single-family
mortgage loans

As a % of total outstanding single-family
mortgage loans*

56,2880.5 %$52,285

1.6 %
$

52

1.6 %
$

*

60
*

* Represents a value of less than 0.05%

66 Loans are classified according to “classic FICO® Score” determined at the time of loan origination and reported to Fannie Mae by lenders. FICO is based upon the FICO associatedwith the loan origination and not attributed to individual borrowers in cases where there is more than one borrower. Numbers in table may not sum due to rounding.
67 Fannie Mae has defined management criteria responsive to SASB FN-MF-270a.1. For more information, please see Note 1: Basis of Presentation in the SASB Index of the
Appendix.
68 Hybrid ARMs are defined per the SASB Standards as mortgages with interest rate resets, or initial fixed-rate periods, of less than five years. Option ARMs, as defined by the SASB
Standards, are any ARM loan with terms that allow for negative amortization or interest-only payments. Fannie Mae no longer acquires loans with negative amortization orinterest-only payment options. ARMs with a negative amortization feature have not been acquired since 2007. ARMs with interest-only payment options have not been acquiredsince 2014.
69 The FICO Not Available category includes loans eligible for sale to Fannie Mae without a credit score attributable to the borrower(s), as permitted by the Selling Guide.
Additionally, this category includes loans acquired under negotiated exceptions for nonprofit entity borrowers who may rent the property on affordable rental terms toindividuals, as only individual borrowers have FICO scores. Finally, this category may also include loans with data outside the expected range of FICO scores, attributable to data
entry issues.
70 We define “higher rate” consistent with the meaning of higher-priced mortgage loan as defined by Regulation Z (12 CFR 1026), implementing the Truth in Lending Act, as
amended, and as reported by lenders as of origination. For loan applications taken on or after October 1, 2009, and for loans closed on or after January 1, 2010 (regardless ofapplication date), loans with a spread between annual percentage rate (APR) and average prime offer rate (APOR) at rate lock-in date greater than or equal to 150 bps for first-lienloans or 350 bps for junior-lien loans are classified as higher rate. Prior to these dates, mortgages with a spread between APR and comparable U.S. Treasury yields at rate lock-in
date greater than or equal to 300 bps for first-lien loans or 500 bps for junior-lien loans are classified as higher rate. Loans are classified based on their original terms. Subsequent
modifications may have changed the APR or adjusted other relevant terms of the loans, which are not reflected in this table. As of year-end 2022, 2021, and 2020, Fannie Mae had
modified 41,227; 41,584; and 39,796, respectively, of the loans classified here as higher rate (figures not subject to Deloitte & Touche LLP’s review). These loans may not be higher
rate as of the periods displayed, based on modified terms.

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TABLE OF CONTENTSAPPENDIX / DATA TABLESTABLE 5. CERTAIN CHARACTERISTICS OF OUTSTANDING SINGLE-FAMILY MORTGAGE LOANS (CONT’D)
MGMT FN-MF-270a.171

Number of Loans

Unpaid Principal Balance

As of December 31,
2022

As of December 31,

2021

2020

2022

(Loans in thousands)
Total Outstanding Single-Family
Mortgage Loans
FICO ≤ 660
As a % of total outstanding single-family
mortgage loans
FICO > 660

17,512.1

17,293.5

1,055.9

1,100.8

1,233.0

16,557.3

6.3 %
16,379.6

2020(Dollars in millions)

17,638.1

6.0 %

2021

$ 3,635,051$ 3,482,509$ 3,200,140

$

$

$

7.1 %
16,019.4

As a % of total outstanding single-family
mortgage loans

93.9 %

93.5 %

92.6 %

FICO not available

25.0

31.7

41.2

As a % of total outstanding single-family
mortgage loans

0.1 %

0.2 %

0.2 %

158,904
4.4 %$ 3,474,667

1,480
*

167,251

4.5 %$ 3,323,827

95.6 %$

157,123

5.2 %$ 3,030,934

95.4 %$

1,559

94.7 %
$

1,956

*

0.1 %

Prepayment penalty:
Prior to 2013, we purchased a small population of loans with prepayment penalties as part of negotiated transactions. In 2013, we announced that loans
with prepayment penalties are no longer eligible for purchase in connection with the Ability-to-Repay/Qualified Mortgage Rule provisions published by theConsumer Financial Protection Bureau. Any loan previously acquired with a prepayment penalty has seasoned beyond the effective date of the penalty. As aresult, we exclude these loans from our reporting of this metric.

* Represents a value of less than 0.05%

71 Fannie Mae has defined management criteria responsive to SASB FN-MF-270a.1. For more information, please see Note 1: Basis of Presentation in the SASB Index of the
Appendix.

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TABLE OF CONTENTSAPPENDIX / DATA TABLESTABLE 6. SINGLE-FAMILY LOAN MODIFICATIONS, FORECLOSURE ALTERNATIVES, AND FORECLOSURES 72
Number of Loans

Unpaid Principal Balance

For the Year Ended December 31,

For the Year Ended December 31,

2022

2022

SASB FN-MF-270a.2

2021

2020

(Loans in thousands)

2021

2020

(Dollars in millions)

Non-Liquidation Workouts
Repayment Plans

1.4

3.5

6.6

FICO ≤ 660

0.5

0.7

2.0

59

96

253

FICO > 660

1.0

2.8

4.6

157

502

846

FICO not available73

*

*

*

*

1

3

Payment Deferrals74

88.9

297.4

259.1

18,40962,06055,988

FICO ≤ 660

20.2

56.8

37.2

3,315

9,434

6,471

FICO > 660

68.5

239.9

221.5

15,08052,57749,482

FICO not available

0.2

0.7

0.4

15

49

34

Modifications

76.4

40.3

30.8

16,559

8,432

5,347

FICO ≤ 660

18.3

10.8

11.4

3,314

1,881

1,777

FICO > 660

57.9

29.4

19.3

13,231

6,544

3,560

FICO not available

0.2

0.1

0.1

14

7

9

166.8

341.2

296.6

Total Modifications, Deferrals,
and Repayment Plans

$

$

217

35,184$$599

71,091

$

$

1,102

62,436* Represents a value of less than 50 loans or less than $500,000 in UPB.
** Data not available.

72 Loans are classified according to Classic FICO scores determined at the time of loan origination and reported to Fannie Mae by lenders. FICO is based upon the FICO associatedwith the loan origination and not attributed to individual borrowers in cases where there is more than one borrower. FICO score at loan origination does not impact borrower
eligibility determinations for loss mitigation or foreclosure outcomes. Rather, these events are assessed in accordance with our Servicing Guide and applicable law. Numbers intable may not sum due to rounding.
73 The FICO Not Available category includes loans eligible for sale to Fannie Mae without a credit score attributable to the borrower(s), as permitted by the Selling Guide.
Additionally, this category includes loans acquired under negotiated exceptions for nonprofit entity borrowers who may rent the property on affordable rental terms toindividuals, as only individual borrowers have FICO scores. Finally, this category may also include loans with data outside the expected range of FICO scores, attributable to data
entry issues.
74 The payment deferral workout option allows the borrower to defer past-due payments, without interest, to the maturity date or earlier payoff of the mortgage.

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TABLE OF CONTENTSAPPENDIX / DATA TABLESTABLE 6. SINGLE-FAMILY LOAN MODIFICATIONS, FORECLOSURE ALTERNATIVES, AND FORECLOSURES (CONT’D)
Number of Loans

Unpaid Principal Balance

For the Year Ended December 31,

For the Year Ended December 31,

2022

2022

SASB FN-MF-270a.2

2021

2020

(Loans in thousands)

2021

2020

(Dollars in millions)

Settled Liquidation Workouts
Pre-Foreclosure Sales

0.4

1.2

2.1

FICO ≤ 660

0.1

0.3

0.6

21

62

117

FICO > 660

0.3

0.8

1.5

61

156

296

*

*

**

*

*

**

0.1

0.4

0.6

14

48

83

FICO ≤ 660

0.0

0.1

0.1

4

11

17

FICO > 660

0.1

0.3

0.5

9

38

66

FICO not available

—

*

**

—

*

**

Total Pre-Foreclosure Sales andDeeds-in-Lieu of Foreclosure

0.6

1.5

2.7

Foreclosures75

8.1

6.2

7.2

889

641

837

FICO ≤ 660

2.3

2.0

2.3

223

195

258

FICO > 660

5.8

4.1

4.8

662

444

576

FICO not available

0.1

0.1

0.1

4

2

4

FICO not available
Deed-in-Lieu of Foreclosure

$

$

83

97

$

$

218

267

$

$

413

496

* Represents a value of less than 50 loans or less than $500,000 in UPB.
** Data not available.

75 Foreclosures include properties that are sold to third parties at foreclosure and those that Fannie Mae acquires as REO. Foreclosures reported here include only completed
foreclosures and do not include loans referred to foreclosure or in the process of foreclosure. There were approximately 28,000 loans in the foreclosure process as ofDecember 31, 2022 (figure not subject to Deloitte & Touche LLP’s review).

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TABLE OF CONTENTSAPPENDIX / DATA TABLESTABLE 7. EDUCATION & COUNSELING 76
SASB FN-CB-240a.4

For the Year Ended December 31,
2022

2021

2020

(Thousands)†

Number of loans acquired for which Fannie Mae required pre-purchase homebuyer education77

151.7

211.5

199.0

Number of participants that completed Fannie Mae’s HomeView homeownership education
course78 †

178.9

—

—

Number of sessions of housing counseling provided to Fannie Mae borrowers and renters via
nonprofit partners79 †

11.1

23.0

15.0

Number of HomeView participants and number of sessions of housing counseling were not subject to Deloitte & Touche LLP’s review, and accordingly Deloitte & Touche LLP
does not express a conclusion or any form of assurance on such information.

76 Fannie Mae requires homebuyer education curricula that are aligned with National Industry Standards for Homeownership Education and Counseling or the HUD Counseling
Program, or provided by a HUD-approved counseling agency. Fannie Mae’s HomeView course is also acceptable. For more information, see Fannie Mae’s Single-Family Selling
Guide, section B2-2-06.
77 For certain Fannie Mae loans, at least one borrower on a loan must complete homeownership education prior to loan closing: if all borrowers on the loan are relying solely
on nontraditional credit to qualify, regardless of loan product or first-time homebuyer status; HomeReady and HFA Preferred purchase transactions when all occupying
borrowers are first-time homebuyers; or purchase transactions with loan-to-value (LTV), combined LTV, or home equity combined LTV ratios greater than 95% when all
borrowers are first-time homebuyers. Qualified providers must be independent of the lender, with homeownership education content that is aligned with National Industry
Standards for Homeownership Education and Counseling or is provided by a HUD-approved housing counseling agency. Fannie Mae’s HomeView course can be used to satisfy
homeownership education requirements.
78 HomeView launched in 2022. Some borrowers of loans for which Fannie Mae required pre-purchase homebuyer education fulfilled that requirement by completing HomeView,
and as a result, the totals of the figures are not mutually exclusive. HomeView has no eligibility restrictions for participants; the course is open to anyone.
79 Counseling sessions reported are for loans held by Fannie Mae or one of its consolidated trusts for which Fannie Mae paid for the session. Sessions include those provided
through Disaster Response Network and additional partners for borrowers and, beginning in March 2020, renters experiencing hardship. Individual borrowers and renters may
account for more than one session.

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TABLE OF CONTENTSAPPENDIX / DATA TABLESTABLE 8. SINGLE-FAMILY MORTGAGE LOAN ACQUISITIONS BY RACE OR ETHNICITY OF BORROWER(S) 80
Number of Loans

Unpaid Principal Balance at
Acquisition

Weighted Average Original
LTV Ratio81

For the Year Ended December 31,

For the Year Ended December 31,

For the Year Ended December 31,

2022

2022

SASB FN-MF-270b.1

2021

2020

(Loans in thousands)

2021

2020

2022

2021

2020

7,751

76.8 %

71.9 %

73.7 %(Dollars in millions)

Borrower Race or Ethnicity:
American Indian or
Alaskan Native

17.8

34.6

29.1

FICO ≤ 660

1.3

1.9

1.2

330

461

261

70.6

70.9

73.0

FICO > 660

16.5

32.7

28.0

4,782

8,831

7,489

77.2

72.0

73.7

*

*

*

3

1

*

73.8

77.1

70.7

178.4

451.5

438.5

69,148

162,516

153,845

75.8

66.9

67.7

FICO ≤ 660

4.9

7.7

5.3

1,720

2,501

1,601

72.0

70.4

71.5

FICO > 660

173.4

443.8

433.1

67,405160,002152,234

75.9

66.8

67.6

0.1

*

*

23

13

10

74.7

76.7

74.1

125.2

218.2

172.5

35,85357,67945,280

78.7

76.0

78.0

FICO ≤ 660

11.9

16.3

9.7

3,032

3,951

2,287

71.4

73.1

76.1

FICO > 660

113.3

201.8

162.8

32,81253,721

42,986

79.4

76.2

78.0

FICO not available

*

*

*

9

7

7

77.1

78.7

78.0

Hispanic or Latino

269.0

541.8

481.9

82,468153,216

134,201

77.8

73.4

74.6

FICO ≤ 660

18.5

28.9

19.1

5,062

7,466

4,612

70.5

71.0

73.3

FICO > 660

250.4

512.8

462.7

77,375

145,724

129,566

78.3

73.5

74.7

0.1

0.1

0.1

31

26

23

73.9

76.7

78.0

FICO not available
Asian

FICO not available
Black or African American

FICO not available

$

5,115

$

9,293

$

* Represents a value of less than 50 loans or less than $500,000 in UPB.

80 We operate in the secondary mortgage market, primarily working with lenders and servicers. We do not originate mortgage loans or lend money directly to consumers in the
primary mortgage market. Fannie Mae requires lenders and servicers of loans to comply with applicable laws and regulations, including the Fair Housing Act, Equal Credit
Opportunity Act, and related anti-discrimination regulations. Fannie Mae conducts its underwriting analysis uniformly and without regard to race, gender, or other prohibited
factors in our automated underwriting system, Desktop Underwriter (DU). Numbers in table may not sum due to rounding.
Borrowers are asked to report both race and ethnicity on their loan application. Borrower categories for applications are based on whether any of the four possible borrowers
identify as Hispanic or Latino, or a race other than white. Individual race and ethnicity categories are not mutually exclusive and do not sum to 100%. For example, if there are
two borrowers on a mortgage, one of whom identifies as Black and one as Asian, the loan information would be counted as part of both Black and Asian categories. Similarly, if
a borrower identifies with more than one race or ethnicity, the borrower will be included in each group, with the exception of borrowers who identify as non-Hispanic white.
Loans are classified in this table according to Classic FICO scores determined at the time of loan origination and reported to Fannie Mae by lenders. FICO is based upon the FICO
associated with the loan origination and not attributed to individual borrowers in cases where there is more than one borrower. The FICO Not Available category includes loans
eligible for sale to Fannie Mae without a credit score attributable to the borrower(s), as permitted by the Selling Guide. Additionally, this category includes loans acquired undernegotiated exceptions for nonprofit entity borrowers who may rent the property on affordable rental terms to individuals, as only individual borrowers have FICO scores. Finally,
this category may also include loans with data outside the expected range of FICO scores, attributable to data entry issues.
81 The weighted average original loan-to-value ratio is calculated based upon the race and ethnicity category for each borrower for the applicable loan, so data for a single loan
may appear in multiple rows.

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TABLE OF CONTENTSAPPENDIX / DATA TABLESTABLE 8. SINGLE-FAMILY MORTGAGE LOAN ACQUISITIONS BY RACE OR ETHNICITY OF BORROWER(S) (CONT’D)
Number of Loans

Unpaid Principal Balance at
Acquisition

Weighted Average Original
LTV Ratio81

For the Year Ended December 31,

For the Year Ended December 31,

For the Year Ended December 31,

2022

2022

SASB FN-MF-270b.1

2021

2020

(Loans in thousands)
Native Hawaiian or
Other Pacific Islander

2021

2020

2022

2021

2020

6,249

75.3 %

70.3 %

71.4 %(Dollars in millions)

7.9

18.6

19.2

FICO ≤ 660

0.6

1.0

0.6

187

312

187

68.9

69.9

69.6

FICO > 660

7.3

17.6

18.6

2,622

5,838

6,061

75.8

70.3

71.5

FICO not available

—

*

*

—

1

1

—

70.9

75.9

1,180.2

2,949.6

3,157.8

339,972

791,086

848,658

73.8

69.2

71.5

FICO ≤ 660

57.0

97.6

70.3

13,927

22,63815,709

68.8

70.1

72.2

FICO > 660

1122.52,851.1

3,086.7

325,879

768,262

832,803

74.0

69.2

71.5

0.7

0.9

0.8

165

186

146

72.3

75.1

75.9

All Minority
Borrowers82

566.9

1,203.6

1,089.5

184,782369,614331,191

77.1

70.9

71.8

FICO ≤ 660

34.9

52.5

33.9

9,668

13,769

8,442

70.9

71.3

73.6

FICO > 660

531.7

1,150.8

1,055.4

175,053355,798

322,709

77.5

70.9

71.8

0.2

0.2

0.2

62

48

40

74.5

76.9

76.8

Information Not
Provided83

258.5

659.1

609.3

80,132

194,060

179,009

72.1

66.9

69.4

FICO ≤ 660

15.8

24.2

15.0

4,186

6,119

3,665

66.8

67.8

69.5

FICO > 660

242.6

634.8

594.2

75,920187,913

175,327

72.4

66.9

69.4

0.1

0.1

0.1

25

29

17

73.0

70.8

70.9

White — Non-Hispanic
or Latino

FICO not available

FICO not available

FICO not available

$

2,809

$

6,151

$

* Represents a value of less than 50 loans or less than $500,000 in UPB.

82 This category consists of borrowers who are not non-Hispanic white. It may not equal the total of the relevant categories in this table since borrowers who fall under multiple
racial/ethnic categories would only appear once in this subtotal.
83 This category consists of mortgages where borrower race and/or ethnicity information was not provided at loan origination.

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TABLE OF CONTENTSAPPENDIX / DATA TABLESTABLE 9. REPRESENTATION BY RACIAL OR ETHNIC GROUPS AND GENDER AS A PERCENTAGE OF JOB CATEGORY 84
Executive
Management

Non-Executive
Management

Professionals

All Other
Employees

All Job
Categories

As of the Final Pay
Period of:

As of the Final Pay
Period of:

As of the Final Pay
Period of:

As of the Final Pay
Period of:

As of the Final Pay
Period of:

2022

2021

2020

2022

2021

2020

2022

2021

2020

2022

2021

2020

2022

2021

2020

—%

—%

—%

0.3 %

0.2 %

0.3 %

0.2 %

0.2 %

0.2 %

—%

—%

—%

0.2 %

0.2 %

0.2 %

Women

—

—

—

0.1

0.1

0.1

0.1

0.1

*

—

—

—

0.1

0.1

0.1

Men

—

—

—

0.2

0.1

0.2

0.1

0.1

0.2

—

—

—

0.1

0.1

0.2

Asian

7.0

5.6

2.9

31.1

30.1

28.9

39.2

38.7

38.0

4.0

3.5

9.0

37.1

36.5

35.7

Women

4.7

2.8

2.9

9.8

9.7

8.9

16.7

16.4

16.3

1.3

1.2

6.0

15.2

14.8

14.7

Men

2.3

2.8

—

21.3

20.4

20.0

22.4

22.3

21.7

2.7

2.4

3.0

21.9

21.6

21.0

Black or African
American

11.6

13.9

14.7

8.7

8.2

8.5

13.0

12.9

13.6

57.3

54.1

56.0

12.6

12.5

13.2

Women

4.7

5.6

5.9

5.4

4.5

5.0

7.6

7.7

8.0

50.7

50.6

52.0

7.5

7.6

8.0

Men

7.0

8.3

8.8

3.3

3.7

3.5

5.4

5.2

5.6

6.7

3.5

4.0

5.0

4.9

5.2

2.3

2.8

—

4.4

3.9

4.3

6.3

6.1

5.7

10.7

14.1

10.0

5.9

5.8

5.5

Women

2.3

2.8

—

1.8

1.7

1.9

2.6

2.5

2.4

10.7

12.9

9.0

2.5

2.5

2.4

Men

—

—

—

2.6

2.2

2.4

3.7

3.6

3.3

—

1.2

1.0

3.4

3.3

3.1

—

—

—

0.3

0.3

0.3

0.2

0.2

0.2

1.3

—

—

0.2

0.2

0.2

Women

—

—

—

0.1

0.1

0.1

*

*

*

—

—

—

*

*

0.1

Men

—

—

—

0.2

0.2

0.2

0.2

0.2

0.2

1.3

—

—

0.2

0.2

0.2

SASB FN-IB-330a.1

Racial or
Ethnic Group:
American Indian or
Alaskan Native

Hispanic or Latino

Native Hawaiian orPacific Islander* Represents less than 0.05% of employees by job category.

84 This table counts employees as of the last day of the last pay period of the calendar year: December 31 in 2022, December 18 in 2021, and December 31 in 2020. Data may berounded up or down by up to 0.1 percentage point to ensure column totals equal 100% for each job category by year. Where an employee has chosen not to self-identify theirrace/ethnicity, Fannie Mae determines this information by visual survey and/or other available information to complete certain mandatory government reports, such as EEO-1.
Fannie Mae aligns its workforce to EEO-1 job categories as defined by the EEO-1 Component 1 Job Classification Guide. Those included in the Executive Management category
include those aligned with the EEO-1 category Executive/Senior Level Officials & Managers and are Fannie Mae leaders in SVP, EVP, President, or CEO roles (historically ~30-40
employees). As a result, this group is affected more significantly by small fluctuations in workforce demographics (i.e., individuals who leave and join within specific racial/ethnic groups). Those included in the Non-Executive Management category include those aligned with the EEO-1 category First/Mid-Level Officials & Managers; those in theProfessionals category include those aligned with the EEO-1 category Professionals; and those in the All Other Employees category include those aligned with the EEO-1
categories Technicians, Sales Workers, Administrative Support, Craft Workers, Operatives, Laborers & Helpers, and Service Workers. Demographic shifts across job categories
may be attributed to changes in business initiatives and demand for specific roles and skills (i.e., technical, cloud, digital) and their requisite supply in the talent market. Fannie
Mae has no employees outside the U.S.

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TABLE OF CONTENTSAPPENDIX / DATA TABLESTABLE 9. REPRESENTATION BY RACIAL OR ETHNIC GROUPS AND GENDER AS A PERCENTAGE OF JOB CATEGORY (CONT’D)
Executive
Management

Non-Executive
Management

Professionals

All Other
Employees

All Job
Categories

As of the Final Pay
Period of:

As of the Final Pay
Period of:

As of the Final Pay
Period of:

As of the Final Pay
Period of:

As of the Final Pay
Period of:

2022

2022

2022

2022

2022

SASB FN-IB-330a.1

2021

2020

2021

2020

2021

2020

2021

2020

2021

2020

Racial or
Ethnic Group:
White NonHispanic or Latino

79.1 % 77.8 % 79.5 % 53.1 % 55.2 % 56.1 % 39.0 % 39.3 % 40.4 % 24.0 % 25.9 % 23.0 % 41.8 % 42.5 % 43.3 %

Women

18.6

16.7

20.6

21.2

22.7

22.4

16.2

16.7

17.0

17.3

21.2

20.0

17.2

17.9

18.0

Men

60.5

61.1

58.9

31.9

32.5

33.7

22.7

22.7

23.4

6.7

4.7

3.0

24.6

24.6

25.3

—

—

2.9

2.1

2.0

1.6

2.3

2.5

1.9

2.7

2.4

2.0

2.2

2.4

1.9

Women

—

—

—

1.0

0.9

0.7

1.1

1.2

0.9

2.7

2.4

2.0

1.1

1.2

0.9

Men

—

—

2.9

1.1

1.1

0.9

1.2

1.3

1.0

—

—

—

1.2

1.3

1.0

Total Numberof Employees

43

36

34

1,556

1,444

1,443

6,353

5,844

6,074

75

85

100

8,027

7,409

7,651

Women

13

10

10

612

574

564

2,809

2,605

2,715

62

75

89

3,496

3,264

3,378

Men

30

26

24

944

870

879

3,544

3,239

3,359

13

10

11

4,531

4,145

4,273

Two or More Races© 20 2 3 Fan n i e M ae

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TABLE OF CONTENTSAPPENDIX / DATA TABLESTABLE 10. BOARD OF DIRECTORS REPRESENTATION BY RACIAL OR ETHNIC GROUP AND GENDER 85 †As of the Form 10-K Filing Datefor Reporting Covering
2022

2021

2020

10

12

11

American Indian or Alaskan Native

—

—

—

Asian

—

—

—

Black or African American

3

3

2

Hispanic or Latino

2

1

1

Native Hawaiian or Pacific Islander

—

—

—

White

5

8

8

Women

5

5

5

Men

5

7

6

Number of Board Members
By Racial or Ethnic Group:

By Gender†This table was not subject to Deloitte & Touche LLP’s review, and accordingly Deloitte & Touche LLP does not express a conclusion or any form of assurance on such information.

85 Data for each year is provided as of the filing date of the company’s Form 10-K for the applicable year, which was February 14, 2023 for the 2022 Form 10-K, February 15, 2022 forthe 2021 Form 10-K, and February 12, 2021 for the 2020 Form 10-K.

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TABLE OF CONTENTSAPPENDIX / DATA TABLESTABLE 11. GREEN BOND ISSUANCE 86
For the Year Ended December 31,

SASB FN-IB-410a.2
2022

2021

2020

271

550

569

Multifamily Green Bonds

226

515

557

Single-Family Green Bonds

45

35

12

Number of Loans (thousands)87

3.9

2.1

0.9

Multifamily Green Bonds

0.2

0.5

0.6

Single-Family Green Bonds

3.7

1.5

0.3

$ 10,495$ 13,980$ 13,093

Multifamily Green Bonds

9,089

13,467

12,999Single-Family Green Bonds

1,405

513

94

Number of Units (thousands)†

59.0

97.2

102.6

Multifamily Green Bonds†

55.3

95.6

102.3

Single-Family Green Bonds†

3.7

1.5

0.3

1

3

4

Number of Green Bonds

Value of Green Bonds Issued (UPB at Issuance, $ millions)Green Bond Resecuritizations
Number of Multifamily Green GeMS
Value of Multifamily Green GeMS (UPB at issuance, $ millions)
†

$

781

$

2,391

$

1,938

The number of units financed by Green Bonds was not subject to Deloitte & Touche LLP’s review, and accordingly Deloitte & Touche LLP does not express a conclusion or any formof assurance on such information.

86 Total rows do not count Multifamily Green GeMS, since these are resecuritizations. Numbers in table may not sum due to rounding. One GeMS transaction in 2020 was a second
resecuritization, which is not included in the UPB figure.
87 Within this table, loans are classified by the year in which they are securitized into a Green Bond, rather than the year Fannie Mae acquired them.

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TABLE OF CONTENTSAPPENDIX / DATA TABLESTABLE 12. PROJECTED GREEN BOND IMPACTS 88 †For the Year Ended December 31,
2022

2021

2020

888

1,459

1,639

Multifamily Green Bonds

814

1,422

1,631

Single-Family Green Bonds

74

37

8

Projected Water Saved (Gallons in millions)89

116

473

807

Projected Greenhouse Gas Emissions Prevented (mtCO2e in thousands)

41.4

84.0

105.0

Multifamily Green Bonds

37.9

82.3

104.6

Single-Family Green Bonds

3.5

1.7

0.4

Multifamily tenants91

$ 205

$ 219

$ 235

Single-family homeowners92

$ 219

$ 264

$ 269

Projected Energy Saved (kBtu in millions)

Projected Utility Cost Savings per Household90†

This table was not subject to Deloitte & Touche LLP’s review, and accordingly Deloitte & Touche LLP does not express a conclusion or any form of assurance on such information.

88 This table presents single-year projected impacts for the loans underlying Green Bonds issued in the years indicated. For a description of our methodology for estimating thepositive environmental impact of the loans backing our Green Bonds, see the impact methodology on our Green Bonds webpage. kBtu is one thousand British thermal units, aunit of energy measurement. MtCO2e is metric tons of carbon dioxide equivalent.
89 Multifamily Green Bonds only.
90 Estimated cost savings for a one-year period.
91 Multifamily Green Rewards loans only.
92 Single-Family Green Bonds only.

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TABLE OF CONTENTSAPPENDIX / DATA TABLESTABLE 13. SINGLE-FAMILY AND MULTIFAMILY LOANS REQUIRING FLOOD INSURANCE 93
Number of Loans

SASB FN-MF-450a.1

Unpaid Principal Balance

As of December 31,
2022

As of December 31,

2021

2020

2022

(Loans in thousands)

2021

2020

(Dollars in millions)Single-Family Loans
Flood-insured loans
Total single-family loans
Flood insured as % of single-family total

575.1

578.1

582.9

17,657.8

17,534.4

17,320.0

3.3 %

3.3 %

3.4 %

Flood-insured loans

2.0

2.0

2.0

Total multifamily loans

28.0

28.9

28.7

Flood insured as % of multifamily total

7.2 %

6.8 %

6.9 %

$

120,707$3,636,597

116,533$

3,484,276

3.3 %

108,688
3,202,619

3.3 %

3.4 %

Multifamily Loans94$

36,448$440,447

34,927$413,171

8.3 %

384,656

8.5 %

8.9 %

Number of Properties

Carrying Value

As of December 31,

As of December 31,

2022

2021

2020

2022

(Properties in thousands)

34,2052021

2020(Dollars in millions)Single-Family REO95
Properties in flood zones

0.5

0.4

0.5

$

70

$

Total single-family REO properties

8.8

7.2

8.0

In flood zones as % of single-family REO total

5.4 %

5.8 %

5.8 %

Properties in flood zones

*

*

*

Total multifamily REO properties

*

*

*

278

302

114

7.1 %

6.5 %

14.3 %

11.1 %

4.3 %

12.6 %

1,293

61

$

959

5.4 %

66
1,148

6.4 %

5.7 %

Multifamily REO

In flood zones as % of multifamily REO total

$

31

$

13

$

14

* Represents a value of less than 50 properties. There were 2, 2, and 2 multifamily REO properties in flood zones in 2022, 2021, and 2020, respectively. There were 28, 31, and 14 total
multifamily REO properties in 2022, 2021, and 2020, respectively.

93 Single-Family and Multifamily categories encompass properties requiring flood insurance, per Fannie Mae Selling Guides and federal law (National Flood Insurance Act of 1968,
as amended). Furthermore, federal law creates a special category of land located in coastal areas. Irrespective of whether such areas are also in the 100-year flood plain, Fannie
Mae requires flood insurance for residences located in these areas. Please see the Mitigating potential future climate-related financial losses section of our Climate Risk &Resilience chapter for more information on our flood insurance requirements.
Flood maps may change over time. Servicers are responsible for ensuring borrowers remain in compliance with flood insurance requirements. Single-family loan and REO
data in this table reflect FEMA flood maps and letters of map amendments (LOMA) as of the respective reporting period. This is a change from our previous ESG Report, whichclassified loans and REO based on flood zone data reported by lenders at loan origination. Multifamily loan and REO data in this table continue to reflect flood zones reported bylenders at loan origination.
Loan data in this table includes Fannie Mae’s retained mortgage portfolio (including loans held for sale), loans underlying MBS in consolidated trusts, and some off-balance
sheet items, such as long-term standby commitments, credit enhancements, and government-insured mortgages. Numbers in table may not sum due to rounding.
94 For multifamily loans, one loan can cover multiple properties. If one property under that loan requires flood insurance, the unpaid principal balance value in this table reflects
only the value allocated to the affected property, not the entire loan.
95 Single-Family REO totals reported for 2020 – 2022 in this report include a population of securitized reverse mortgages (a total of 300 loans in 2022) that was not included in the
population in previous reporting.
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TABLE OF CONTENTSAPPENDIX / ASSURANCE REPORTAssurance Report

INDEPENDENT ACCOUNTANT’S REVIEW REPORT
We have reviewed management of Fannie Mae’s (inconservatorship) (the “Company”) assertion that the specified
information included in Note 1: Basis of Presentation of the
Sustainability Accounting Standards Board (SASB) Index (“Note1”) within the accompanying Fannie Mae 2022 Enterprise
Environmental, Social and Governance (ESG) Report (“ESG
Report”) as of or for the years ended December 31, 2022,
December 31, 2021 and December 31, 2020 are presented inaccordance with the criteria set forth in Note 1 (the “criteria”).
The Company’s management is responsible for its assertion.
Our responsibility is to express a conclusion on management’s
assertion based on our review.
Our review was conducted in accordance with attestation
standards established by the American Institute of Certified Public
Accountants (AICPA) in AT-C section 105, Concepts Common
to All Attestation Engagements, and AT-C section 210, Review
Engagements. Those standards require that we plan and performthe review to obtain limited assurance about whether any material
modifications should be made to management’s assertion inorder for it to be fairly stated. The procedures performed in areview vary in nature and timing from, and are substantially lessin extent than, an examination, the objective of which is to obtainreasonable assurance about whether management’s assertionis fairly stated, in all material respects, in order to express an
opinion. Accordingly, we do not express such an opinion. Becauseof the limited nature of the engagement, the level of assurance
obtained in a review is substantially lower than the assurance thatwould have been obtained had an examination been performed.
We believe that the review evidence obtained is sufficient andappropriate to provide a reasonable basis for our conclusion.
We are required to be independent and to meet our other ethicalresponsibilities in accordance with the Code of Professional
Conduct issued by the AICPA. We applied the Statementson Quality Control Standards established by the AICPA and,accordingly, maintain a comprehensive system of quality control.
The procedures we performed were based on our professional
judgment. In performing our review, we conducted inquiries© 20 2 3 Fan n i e M ae

Deloitte & Touche LLP
7900 Tysons One Place
Suite 800
McLean, VA 22102
www.deloitte.com

and performed analytical procedures. For a selection of thespecified information, we performed tests of mathematicalaccuracy of computations, compared the specified information
to underlying records, or observed the data collection process inregard to the accuracy of the data in the specified information.
The preparation of the specified information referenced in Note
1 requires management to establish and interpret the criteria,
make determinations as to the relevancy of information to be
included, and make estimates and assumptions that affect thereported information. Measurement of certain metrics could
include estimates and assumptions that are subject to inherent
measurement uncertainty. Obtaining sufficient, appropriate
review evidence to support our conclusion does not reduce theinherent uncertainty in the amounts and metrics. The selection by
management of different but acceptable measurement methods,
input data, or assumptions, may have resulted in materiallydifferent amounts or specified information being reported.
Our review was limited to the specified information in Note 1
as of or for the years ended December 31, 2022, 2021 and 2020.
All other information including information relating to forward
looking statements, goals, and progress against goals, was not
subject to our review and, accordingly, we do not express a
conclusion or any form of assurance on such information.
As discussed in Note 1, in 2022, Fannie Mae has changed thereporting from the 2021 ESG Report related to FN-MF-270b.3,
FN-MF-450a.1 and FN-IB-410a.2 metrics.
Based on our review, we are not aware of any material
modifications that should be made to management of Fannie
Mae’s assertion that the specified information included in Note 1
as of or for the years ended December 31, 2022, December 31,
2021, and December 31, 2020 are presented in accordance withthe criteria set forth in Note 1, in order for it to be fairly stated.

June 30, 2023

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TABLE OF CONTENTSAPPENDIX / SASB INDEXSASB Index
SASB Standards are independent standards for ESG
disclosures maintained by the International Sustainability
Standards Board (ISSB). The SASB reporting standards areindustry-specific, covering ESG reporting criteria for 77
industries. Fannie Mae’s position in the secondary mortgage
market makes some of the risks and opportunities in ourbusiness model different compared to companies thatoriginate loans or lend money directly to borrowers in the
primary mortgage market. To provide transparency on topics
representative of other important facets of our business,
we identified the following relevant SASB industry-specificstandards for inclusion within this report: Mortgage Finance(“FN-MF”; our primary SASB industry), Commercial Banks(“FN-CB”), and Investment Banking and Brokerage (“FN-IB”).
The index in Note 1: Basis of Presentation (“Note 1”) below
provides a consolidated list of metrics (the “specified
information”) and the related criteria used to measure andevaluate the specified information. The criteria are basedon the SASB Standards. Where applicable, Fannie Mae has
made certain modifications to SASB Mortgage Finance metrics
to align with our operations in the secondary mortgage
market. Furthermore, Fannie Mae has omitted certain SASB
Mortgage Finance metrics. The nature and rationale for each
modified or omitted metric is described within the tablebelow. One of the metrics is not fully covered by the SASB
Standards; accordingly, Fannie Mae has reported this metricin accordance with management’s defined criteria, which isinformed by the SASB Standards.

© 20 2 3 Fan n i e M ae

Management’s assertion
Management of Fannie Mae is responsible for the completeness,accuracy, and validity of the specified information included
below in Note 1. Management is also responsible for thecollection, quantification, and presentation of the specified
information and for the selection or development of the criteria,
which management believes provide an objective basis formeasuring and reporting on the specified metrics. Managementof Fannie Mae asserts that the specified information as of or forthe years ended December 31, 2022, December 31, 2021, andDecember 31, 2020, is presented in accordance with the criteria
set forth in Note 1.

Changes from our 2021 SASB-aligned
reporting
For transparency, we note changes from reporting in Fannie
Mae’s 2021 ESG Report. Unless otherwise noted, thesemethodological changes are reflected in the 2022, 2021, and2020 data included in this report.

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TABLE OF CONTENTSAPPENDIX / SASB INDEXNOTE 1: BASIS OF PRESENTATIONSASB Criteria
SASB Code and MetricSpecified Information
Modified or Omitted

MetricResponse / Location

Changes from 2021
ESG Report

FN-MF-270a.2 — (1)Number and (2) value of(a) residential mortgage
modifications, (b)foreclosures, and (c) shortsales or deeds-in-lieu
of foreclosure, by FICO
scores above and below
660.

Modified to clarify terms,
replacing “residential”
with “single-family” and“short sales” with “preforeclosure sales.”(1) Number and (2)value of (a) single-family
mortgage modifications,(b) foreclosures, and (c)pre-foreclosure sales, ordeeds-in-lieu of foreclosure,by FICO scores above andbelow 660.

Data Tables < Table 6. Single-Family
Loan Modifications, Foreclosure
Alternatives, and Foreclosures

n/a

FN-MF-270a.3 — Totalamount of monetarylosses as a result of legal
proceedings associatedwith communications
to customers or
remuneration of loan
originators.

Omitted; metric is notapplicable, as Fannie
Mae does not originateloans or lend directly toborrowers.

Total amount of monetarylosses as a result of legal
proceedings associatedwith communications tocustomers or remunerationof loan originators.

n/a

n/a

FN-MF-270a.4 —Description of
remuneration structureof loan originators.

—

Description of
remuneration structureof loan originators.

Fannie Mae does not provide
compensation to loan originators.
The discussion below summarizes
Fannie Mae’s guidance and minimum
standards for lenders/sellers.

n/aLending practices

Single-Family
Sellers are required to comply withall federal, state, and local laws that
apply to any of its origination, selling,or servicing practices. This includes
ensuring that their loan originatorcompensation practices comply withthe loan originator compensation
provisions of the Truth in Lending
Act and Regulation Z and thatloan originators comply with theserequirements when presenting
loan options to consumers. (SeeSingle-Family Selling Guide A3-2-01,
Compliance With Laws and A3-2-02,
Responsible Lending Practices.)
Multifamily
Lenders delivering multifamily loans
to Fannie Mae are required to charge
a minimum origination fee based on
the size of the loan being delivered.
Lenders must collect the minimum
origination fee and retain at least 50%of the fee. Any portion of the origination
fee in excess of the Retained Portion
may be used by the lender to pay
correspondent or broker fees for theorigination of the mortgage loan.

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TABLE OF CONTENTSAPPENDIX / SASB INDEXNOTE 1: BASIS OF PRESENTATION (CONT’D)SASB Criteria
SASB Code and MetricSpecified Information
Modified or Omitted

MetricResponse / Location

Changes from 2021
ESG Report

FN-MF-270b.1 — (1)Number, (2) value, and(3) weighted average
Loan-to-Value (LTV) ratioof mortgages issued to (a)minority and (b) all otherborrowers, by FICO scores
above and below 660.

Modified to specify“single-family”
mortgages and replace“issued” with “acquired,”
as Fannie Mae does
not lend directly toborrowers.

(1) Number, (2) value,and (3) weighted average
Loan-to-Value (LTV) ratioof single-family mortgages
acquired by Fannie Maerelated to (a) minority and(b) all other borrowers,
by FICO scores above andbelow 660.

Data Tables < Table 8. Single-Family
Mortgage Loan Acquisitions by Race or
Ethnicity of Borrower(s)n/aFN-MF-270b.2 — Totalamount of monetarylosses as a result of legal
proceedings associatedwith discriminatory
mortgage lending.

Modified to replace“lending” with“practices,” as Fannie
Mae does not originateloans or lend directly
to borrowers. Includes
individual resolutions ofmore than $100,000.

Total amount of monetarylosses as a result of legal
proceedings associatedwith discriminatory
mortgage practices.

Fannie Mae tracks our settlements or
judgments exceeding $100,000 (notincluding attorneys’ fees) in cases
involving allegations of discriminatory
mortgage practices. Between 2020 and
2022, there were no monetary losses
meeting these criteria.96

n/a

FN-MF-270b.3 —Description of policies
and proceduresfor ensuring
nondiscriminatory
mortgage origination.

—

Description of policies andprocedures for ensuring
nondiscriminatory
single-family mortgage
origination.

Housing Affordability < Fair lending andfair housing

We have added information
related to our Multifamilybusiness.

(1) Number and (2)value of mortgage loans
requiring flood insuranceby (a) single-family and (b)multifamily properties.

Data Tables < Table 13. Single-Family
and Multifamily Loans Requiring Flood
Insurance

We have updated the three
years of single-family loan and
REO data reported to reflect
flood maps current as of theperiod reported rather than asof origination. Multifamily floodzone status remains as reported
at loan origination. Additionally,in the single-family REO
population, we have included
a population of securitized
reverse mortgages in ourreporting that was previously
excluded.

Discriminatory lending

Environmental risk to mortgaged properties
FN-MF-450a.1 — (1)Number and (2) value ofmortgage loans in 100year flood zones.

Modified to specify“loans requiring flood
insurance,” which may
also include somecoastal areas not within
a 100-year flood plain.
Also modified to add
REO properties in floodzones.

96 Our response to SASB FN-MF-270b.2 does not include our 2022 settlement related to foreclosed property maintenance, which is described on page 19, because we do not consider such
maintenance to be a “mortgage practice” within the definition of this SASB metric. Information related to the aforementioned settlement was not subject to Deloitte & Touche LLP’s review
and, accordingly, Deloitte & Touche LLP does not express a conclusion or any form of assurance on such information.

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TABLE OF CONTENTSAPPENDIX / SASB INDEXNOTE 1: BASIS OF PRESENTATION (CONT’D)SASB Criteria
SASB Code and MetricSpecified Information
Modified or Omitted

MetricResponse / Location

Changes from 2021
ESG Report

Environmental risk to mortgaged properties (cont’d)
FN-MF-450a.2 — (1)Total expected loss and(2) Loss Given Default(LGD) attributable tomortgage loan default
and delinquency due
to weather-related
natural catastrophes, bygeographic region.

Omitted; see metricsection for additional
details.

(1) Total expected lossand (2) Loss Given Default(LGD) attributable tomortgage loan default
and delinquency due
to weather-related
natural catastrophes, bygeographic region.

Total expected losses and LGD are notdisclosed in this year’s report, as we
continue to work toward producing
projected loss estimates specific toweather-related events. Estimating
expected losses and LGD attributable
to weather-related factors is complex,
evolving in nature, and requires anumber of key assumptions related
to drivers of credit performance.
We understand the importance ofevaluating the risk of potential loss
attributable to weather-related natural
catastrophes to our business. We are
exploring the ability to estimate andcommunicate our exposure across avariety of natural catastrophes in a waythat is both reasonable and consistent
with industry best practices.

n/a

FN-MF-450a.3 —Description of how
climate change and otherenvironmental risks
are incorporated into
mortgage origination andunderwriting.

—Description of how
climate change and otherenvironmental risks
are incorporated into
mortgage origination andunderwriting.

Climate Risk & Resilience < Mitigating
potential future climate-related financial
lossesn/a

FN-MF-000.A — (1)Number and (2) value ofmortgages originated bycategory: (a) residentialand (b) commercial.

Omitted; metric is notapplicable, as Fannie
Mae does not originateloans or lend directly toborrowers.

(1) Number and (2) valueof mortgages originated bycategory: (a) residential and(b) commercial.

n/a

n/a

FN-MF-000.B — (1)Number and (2) value ofmortgages purchased bycategory: (a) residentialand (b) commercial.

Modified to clarify terms,
replacing “residential”
with “single-family”
and “commercial” with“multifamily.”(1) Number and (2) value ofmortgages purchased bycategory: (a) single-familyand (b) multifamily.

Data Tables < Table 1. Single-Family andMultifamily Loan Acquisitions

n/a—Description of approach toidentifying and addressing
data security risks.

Data Privacy & Security

n/aActivity metric

Data security
FN-CB-230a.2 —Description of approach
to identifying andaddressing data security
risks.

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TABLE OF CONTENTSAPPENDIX / SASB INDEXNOTE 1: BASIS OF PRESENTATION (CONT’D)SASB Criteria
SASB Code and MetricSpecified Information
Modified or Omitted

MetricResponse / Location

Changes from 2021
ESG Report

Financial inclusion & capacity building
FN-CB-240a.4 — Numberof participants in financial
literacy initiatives forunbanked, underbanked,
or underserved
customers.

Modified to measureparticipants in termsof loans requiring
homebuyer educationand clarify that theunderserved groups
being served include firsttime homebuyers in loan
products targeted at lowincome borrowers or with
LTVs higher than 95%
and borrowers with nontraditional credit. This
metric does not include
homebuyer educationthat was provided but
not required.

Number of loans acquired
for which Fannie Mae
required pre-purchasehomebuyer education.

Data Tables < Table 7. Education &Counselingn/a—Description of approach toincorporation of results ofmandatory and voluntarystress tests into capital
adequacy planning, longterm corporate strategy,
and other businessactivities.

2022 Form 10-K < Stress Testing (p.19) and n/a
Regulatory Capital Requirements (p.F-60).
Updated 2022 stress test results were
published on June 12, 2023.

Housing Stability < Homeownershipeducation

Systemic risk management
FN-CB-550a.2 —Description of approach
to incorporation of
results of mandatory andvoluntary stress tests
into capital adequacy
planning, long-term
corporate strategy, andother business activities.

2021 Form 10-K < Stress Testing (p.20) andEnterprise Regulatory Capital Framework(p.F-63)2020 Form 10-K < Stress Testing (p. 24) andEnterprise Regulatory Capital Framework(p. F-63)
Our climate-related stress testing is
nascent, and we are working to improve it
to better inform our strategy. Together with
our regulator and conservator, FHFA, we
are working to understand the impact thatclimate change may have on U.S. housing.

Employee diversity and inclusion
FN-IB-330a.1 —Percentage of genderand racial/ethnic grouprepresentation for (1)executive management,(2) non-executive
management, (3)professionals, and(4) all other employees.

—

Percentage of genderand racial/ethnic grouprepresentation for(1) executive management,(2) non-executive
management,(3) professionals, and(4) all other employees.

Data Tables < Table 9. Representation by
Racial or Ethnic Groups and Gender as a
Percentage of Job Categoryn/aHuman Capital < Fostering an inclusive
workplace

Incorporation of environmental, social, and governance factors in investment banking & brokerage activities
FN-IB-410a.2 — (1)Number and (2) total valueof investments and loans
incorporating integrationof environmental, social,and governance (ESG)
factors, by loan type.

© 20 2 3 Fan n i e M ae

Modified to clarify
the metric used to
track loans explicitly
integrating ESG factors.

(1) Number and (2) value ofmortgage loans underlying(a) green- and (b) sociallabeled bonds.

Data Tables < Table 4. Multifamily Social
Bond Issuance

We have added social bondresecuritizations in Table 4.

Data Tables < Table 11. Green Bond
Issuance

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TABLE OF CONTENTSAPPENDIX / SASB INDEXNOTE 1: BASIS OF PRESENTATION (CONT’D)SASB Criteria
SASB Code and MetricSpecified Information
Modified or Omitted

MetricResponse / Location

Changes from 2021
ESG Report

Business ethics
FN-IB-510a.2 —Description ofwhistleblower policies
and procedures.

—

Description ofwhistleblower policies andprocedures.

Business Ethics < Employee code of
conductn/a—Description of approachto ensuring professional
integrity, including dutyof care.

Business Ethics

n/aProfessional integrity
FN-IB-510b.4 —Description of approachto ensuring professional
integrity, including dutyof care.

Management’s Criteria

Specified Information

Defined Criteria

Management Defined MetricResponse / Location(1) Number and (2) value of single-family
mortgages of the following types: (a) Hybrid
or Option Adjustable-rate Mortgages (ARM),(b) Prepayment Penalty, (c) Higher Rate, (d)Total, by FICO scores above or below 660.
Management considered SASB FN-MF-270a.1
when determining the criteria for this metric.

(1) Number and (2) value of
single-family mortgages of thefollowing types: (a) Hybrid or Option
Adjustable-rate Mortgages (ARM),(b) Prepayment Penalty, (c) Higher
Rate, (d) Total, by FICO scores above
or below 660.

Data Tables < Table 5. Certain
Characteristics of Outstanding SingleFamily Mortgage Loans

Changes from 2021
ESG Reportn/aa) Hybrid or option adjustable-rate
mortgages (ARMs) are defined as ARMs
with initial interest rate resets of lessthan five years or including negative
amortization or interest-only payment
schedules.
b) Prepayment penalties are defined as
mortgage contracts that include a clausethat assesses a penalty if the mortgage ispaid in full within a certain time period.
c) Higher-rate mortgages are defined
as higher-priced mortgage loans
per Regulation Z (12 CFR 1026),
implementing the Truth in Lending Act.
d) Total loans comprises single-family
mortgage loans on Fannie Mae’s
consolidated balance sheet.

© 20 2 3 Fan n i e M ae

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TABLE OF CONTENTSAPPENDIX / TCFD INDEXTCFD Index
TCFD Disclosure

Response / Location

Governancea) Describe the Board’s oversight of climate-related risks and opportunities.

Corporate Governance & ESG Oversight < ESG and climate oversightb) Describe management’s role in assessing and managing climate-related risks
and opportunities.

Corporate Governance & ESG Oversight < ESG and climate oversight

Strategya) Describe the climate-related risks and opportunities the organization has
identified over the short, medium, and long term.

Climate Risk & Resilience < Identifying and assessing climaterelated risksb) Describe the impact of climate-related risks and opportunities on theorganization’s businesses, strategy, and financial planning.

Climate Risk & Resilience < Mitigating climate-related risk to Fannie
Maec) Describe the resilience of the organization’s strategy, taking into considerationdifferent climate-related scenarios, including a 2°C or lower scenario.

Not disclosed

Risk managementa) Describe the organization’s processes for identifying and assessing climaterelated risks.

Climate Risk & Resilience < Identifying and assessing climaterelated risks
Risk Management < Climate risk managementb) Describe the organization’s processes for managing climate-related risks.

Risk Management < Climate risk managementc) Describe how processes for identifying, assessing, and managing climaterelated risks are integrated into the organization’s overall risk management.

Risk Management < Climate risk management

Metrics and targetsa) Disclose the metrics used by the organization to assess climate-relatedrisks and opportunities in line with its strategy and risk management process.

Data Tables < Single-Family and Multifamily Loans Requiring Flood
Insuranceb) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG)
emissions, and the related risks.

Not disclosedc) Describe the targets used by the organization to manage climate-related risks
and opportunities and performance against targets.

Not disclosed© 20 2 3 Fan n i e M ae

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TABLE OF CONTENTSAPPENDIX / DISCLAIMERS

Disclaimers
The information provided in this report reflects ourapproach to ESG at the date of this report and is subject
to change without notice. We do not undertake to update
any information in this report. There currently is no clear
legal, regulatory, or other definition or market consensus
as to what constitutes a “green,” “social,” “sustainable,” orsimilarly labeled project or investment, and any references
to “sustainable bonds,” “green bonds,” “social bonds,” “ESG,”or similar terms in this report are intended as references
to the internally defined criteria of our businesses only, as
applicable, and not to any jurisdiction-specific regulatory
definition. Our approaches to the disclosures included in thisreport may be different from those included in mandatory
regulatory reporting, including under SEC regulations, andwe can provide no representation or assurance that ourinternal approach is consistent with other investment criteria,
taxonomies, standards, or guidelines. Any goals presented inthis report are aspirational; as such, we make no guarantee
or promise that these goals will be met. Some statistics andmetrics in these disclosures are based on assumptions.
Additionally, many of the figures in this report are unaudited.
While this report describes events, including potential future
events, and topics that may be significant from an ESG
perspective, any significance does not necessarily equate
to the level of materiality of disclosures required under U.S.
federal securities laws. No reports, documents, websites,or third-party publications that are cited or referred to inthis document shall be deemed to form part of this report,
including but not limited to references to information on our
website, www.fanniemae.com. Fannie Mae is not responsible
for the information contained on third-party websites, nor
do we guaranty their accuracy and completeness. The
information and data provided by a link to a website or
publication is being referenced as of the date of this report,
may be superseded by a later website or publication, and issubject to change without notice.
Forward-looking statements. This report contains a numberof forward-looking statements, including statements regarding
future economic and housing conditions; climate change
and its impact; Fannie Mae’s future business plans, strategies,
objectives, programs, products, and activities; the impact
and benefits of Fannie Mae’s plans, strategies, programs,© 20 2 3 Fan n i e M ae

products, and activities; and the risks to Fannie Mae’s businessand the factors that will impact them. These forward-looking
statements are based on the company’s current assumptions
regarding numerous factors and are subject to change.
Actual outcomes may differ materially from those reflected inthese forward-looking statements due to a variety of factors,
including, but not limited to, those described in “ForwardLooking Statements” and “Risk Factors” in our annual reporton Form 10-K for the year ended December 31, 2022, and in“Forward-Looking Statements” in our quarterly report on Form
10-Q for the quarter ended March 31, 2023. Any forward-looking
statements made by Fannie Mae speak only as of the dateon which they were made. Fannie Mae is under no obligation
to, and expressly disclaims any obligation to, update or alter
its forward-looking statements, whether as a result of new
information, subsequent events, or otherwise.
No offer or solicitation regarding securities. This document
is for general information purposes only and does notconstitute, or form part of, an offer to sell nor a solicitationof an offer to buy any Fannie Mae security mentioned hereinor any other Fannie Mae security. Fannie Mae securities areoffered only in jurisdictions where permissible by offering
documents available through qualified securities dealers
or banks, and no part of this document is incorporated byreference into, or part of, any offering documents.
No warranties; opinions subject to change; not advice.
This document is based upon information and assumptions(including financial, statistical, or historical data andcomputations based upon such data) that we consider
reliable and reasonable, but we do not represent that suchinformation and assumptions are accurate or complete, orappropriate or useful in any particular context, including thecontext of any investment decision, and it should not be relied
upon as such. No liability whatsoever is or will be acceptedby Fannie Mae for any loss or damage howsoever arisingout of or in connection with the use of, or reliance upon, theinformation contained in this document.
Opinions and estimates expressed herein constitute Fannie
Mae’s judgment as of the date indicated and are subject
to change without notice. They should not be construed

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TABLE OF CONTENTS

as either projections or predictions of value, performance,or results, nor as legal, tax, financial, or accounting advice.
No representation is made that any strategy, performance,or result illustrated herein can or will be achieved or
duplicated. The effect of factors other than those assumed,
including factors not mentioned, considered, or foreseen,by themselves or in conjunction with other factors,
could produce dramatically different performance or
results. We do not undertake to update any information,
data, or computations contained in this document or
to communicate any change in the opinions, limits,requirements, and estimates expressed herein. Investors
considering purchasing a Fannie Mae security should consult
their own financial and legal advisors for information aboutsuch security, the risks and investment considerations
arising from an investment in such security, the appropriate
tools to analyze such investment, and the suitability of suchinvestment in each investor’s particular circumstances.

© 20 2 3 Fan n i e M ae

APPENDIX / DISCLAIMERS

Projected energy, emissions, and water usage savingsare Fannie Mae’s estimates of the potential savings at therelated mortgaged properties that may result from theimplementation of the efficiency improvements requiredby the indicated green financing programs. There can be
no assurance that any particular savings will be achievedat any given mortgaged property. Fannie Mae disclaims any
liability for the failure of any mortgaged property to achieve
any particular energy, emissions, or water usage savings. The
estimates are solely as of the date hereof, and Fannie Maeshall have no obligation to provide updated estimated or
actual savings information.
Fannie Mae securities, together with interest thereon, are
not guaranteed by the United States and do not constitutea debt or obligation of the United States or of any agency or
instrumentality thereof other than Fannie Mae.

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