November 8, 2011

Fannie Mae

2011 Third-Quarter Credit S
 This presentation includes information about Fannie 

information contained in Fannie Mae’s Quarterly Repthe quarter ended September 30, 2011, the “2011 Q3 F

of the terms used in these materials are defined and dfully in the 2011 Q3 Form 10-Q and in Fannie Mae’s Foyear ended December 31, 2010, the “2010 Form 10-K.

should be reviewed together with the 2011 Q3 Form 1Form 10-K, copies of which are available on the “SEC 

the “Investors” section of Fannie Mae’s Web site at w

 Some of the information in this presentation is based 

that we received from third-party sources such as seof mortgage loans. Although we generally consider threliable, we do not independently verify all reported in

 This presentation includes forward-looking statemen

home price changes. These statements are based on analyses, estimates, forecasts and other views on a vand other information, and changes in the assumptioinformation underlying these views could produce mresults. The impact of future home price changes on 

results or financial condition will depend on many oth

 Due to rounding, amounts reported in this presentatio

totals indicated (or 100%). A zero indicates less than percent. A dash indicates a null value.
Table of Contents

Slide

Home Price Growth/Decline Rates in the U.S. Home Price Change Peak-to-Current as of 2011 Q3 Fannie Mae Acquisition Profile by Key Product Features Fannie Mae Credit Profile by Key Product Features 

Fannie Mae Credit Profile by Origination Year and Key Product Features Fannie Mae Credit Profile by State Fannie Mae Alt-A Credit Profile by Key Product Features Fannie Mae Single-Family Serious Delinquency Rates by State and Region Fannie Mae Single-Family Completed Workouts by Type Home Affordable Modification Program (HAMP) Fannie Mae Single-Family Loan Modifications by Monthly Payment Change and TPerformance of Fannie Mae Modified Loans Fannie Mae Single-Family Cumulative Default Rates Fannie Mae Single-Family Real Estate Owned (REO) in Selected States Fannie Mae Multifamily Credit Profile by Loan Attributes Fannie Mae Multifamily Credit Profile by Acquisition Year Fannie Mae Multifamily Credit Profile Fannie Mae Multifamily 2011 YTD Credit Losses by State 
7.0% 6.3% 7.5% 7.7%

10.6% 11.3%

2.9%

-3.3%

-8.9%

-4

-10%

-5%

0%5%

10%15%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2

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

Note: Our estimates differ from the S&P/Case-Shiller index in two principal ways: (1) our estimates weight expectations by number of prexpectations based on property value, causing home price declines on higher priced homes to have a greater effect on the overall resulof foreclosed homes while our estimates attempt to exclude foreclosed homes sales, because we believe that differing maintenance praforeclosed home prices less representative of market values. We believe, however, that the impact of sales of foreclosed homes is reflecpricing of non-distressed sales. We recently enhanced our home price estimates to identify and exclude a greater portion of foreclosed hcomparisons of home prices differ from those indicated by our prior estimates. We calculate the S&P/Case-Shiller comparison numbers account for weighting based on property value and the impact of foreclosed property sales. In addition to these differences, our estimatecombined with publicly available data, and are therefore based on data collected nationwide, whereas the S&P/Case-Shiller index is bas

certain geographic areas of the country. Our comparative calculations to the S&P/Case-Shiller index provided above are not modified to 

S&P/Case-Shiller Index 9.8% 7.7% 10.6% 10.7% 14.6% 14.7% -0.3% -8.4% -18.4% 

Fannie Mae Home Price Index

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

We expect peak-to-trough declines in home prices to be in the 22% to 28% range (comparable to a decline in S&P/Case-Shiller index method).

*Year-to-date as of Q3 2011. Initial estimate based on purchase transactions in Fannie-Freddie acquisition and public deed data availablsupplemented by preliminary data available for October and November 2011. Including subsequent data may lead to materially different ** Year-to-date as of Q2 2011.
Top %: State/Region Home Price Decline Rate percentage from applicable peak in that state/region through September 30, 2011.Bottom %: Percent of Fannie Mae single-family conventional guaranty book of business by unpaid principal balance as of September 30, 20Note: Regional home price decline percentages are a housing stock unit-weighted average of home price decline percentages of states with* Source: Fannie Mae. Initial estimate based on purchase transactions in Fannie-Freddie acquisition and public deed data available through preliminary data available for October and November 2011. Including subsequent data may lead to materially different results.

Home Price Change Peak-to-Current as 
Fannie Mae Acquisition Profile by Key Produc

Credit Characteristics of Single-Family Business Vo

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

our mortgage portfolio and single-family mortgage loans we guaranty into Fannie Mae MBS. Beginning with the third quarter of 2term standby commitments in the period in which the commitment was established, rather than at the time of actual delivery.

(2) The increase for 2010 and 2011 is the result of our Refi PlusTM initiative, which involves the refinance of existing Fannie Mae loa

(3) Refi Plus and Home Affordable Refinance Program (HARP) started in April 2009.(4) FICO credit scores as reported by the seller of the mortgage loan at the time of delivery.(5) Newly originated Alt-A loans acquired in 2009, 2010, and 2011 consist of the refinance of existing Alt-A loans under our Refi Plu

Acquisition Year 2011 Q3 2011 Q2 2011 Q1 2010 2009 2

Unpaid Principal Balance (billions) $ 116.5 $ 93.3 $ 162.2 $ 595.0 $ 684.7 $ 

Weighted Average Origination Note Rate 4.45% 4.75% 4.40% 4.64% 4.93% Origination Loan-to-Value Ratio

 <= 60% 26.5% 27.3% 30.3% 30.3% 32.6%  >60% and <= 70% 14.4% 14.4% 15.7% 15.9% 17.0%  >70% and <= 80% 37.7% 36.6% 37.5% 38.5% 39.9%  >80% and <= 90% 10.1% 10.2% 8.5% 8.6% 6.9%  >90% and <= 100% (2) 8.5% 8.1% 5.8% 5.2% 3.3% 

 > 100% (2) 2.9% 3.4% 2.2% 1.6% 0.4% 

Weighted Average Origination Loan-to-Value Ratio 70.9% 70.6% 68.5% 68.4% 66.8% Weighted Average Origination Loan-to-Value Ratio Excluding HARP (3) 68.4% 67.6% 66.0% 66.0% 65.8% 

FICO Credit Scores (4)

 0 to < 620 0.7% 0.7% 0.4% 0.4% 0.4%  >= 620 and < 660 2.3% 2.7% 1.5% 1.6% 1.5%  >=660 and < 700 7.8% 9.1% 6.8% 6.6% 6.5%  >=700 and < 740 16.7% 18.1% 16.9% 16.1% 17.2%  >=740 72.4% 69.2% 74.4% 75.1% 74.4%  Missing 0.1% 0.1% 0.1% 0.1% 0.1% 

Weighted Average FICO Credit Score (4) 759 756 762 762 761 

 

Product Distribution

Fixed-rate 91.9% 91.5% 93.5% 93.7% 96.6% Adjustable-rate 8.1% 8.5% 6.5% 6.3% 3.4% 

Alt-A (5) 1.3% 1.8% 1.0% 0.9% 0.2% 

Subprime









 

Interest Only 0.8% 0.7% 0.7% 1.3% 1.0% Negative Amortizing









 

Refinance 67.9% 68.9% 81.9% 77.4% 79.9%  Total Refi Plus (3) 27.1% 31.2% 24.4% 23.4% 10.6% 

 HARP (3) 9.6% 11.1% 9.1% 9.0% 3.8% 

 HARP Weighted Average Origination Loan-to-Value Ratio (3) 94.6% 94.5% 93.7% 92.1% 90.7% 

Investor 7.4% 9.0% 5.7% 4.6% 2.5% Condo/Co-op 9.1% 10.5% 9.0% 8.6% 8.2% 
Fannie Mae Credit Profile by Key Product Feat

Credit Characteristics of Single-Family Conventional Guaranty 

(1) Loans with multiple product features are included in all applicable categories. The subtotal is calculated by counting a loan only on

(2) Excludes non-Fannie Mae securities held in portfolio and those Alt-A and subprime wraps for which Fannie Mae does not have loa

detailed loan-level information for over 99% of its single-family conventional guaranty book of business as of September 30, 2011.

(3) FICO credit scores as reported by the seller of the mortgage loan at the time of delivery.(4) Unpaid principal balance of all loans with credit enhancement as a percentage of unpaid principal balance of single-family convent

Mae had access to loan level information. Includes primary mortgage insurance, pool insurance, lender recourse and other credit e

(5) Expressed as a percentage of credit losses for the single-family guaranty book of business. For information on total credit losses, r(6) Credit losses are negative for some loan categories due to make-whole receivables which result in recoveries to credit losses.

As of September 30, 2011

Negative 

Amortizing 

Loans

Interest Only 

Loans 

Loans with FICO

< 620(3)

Loans with FICO 

≥ 620 and < 660(3)

Loans with 

Origination LTV 

Ratio 

> 90%

Loans with FICO 

620 and 

Origination LTV 

Ratio > 90%(3)

Unpaid Principal Balance (billions) (2) $9.5 $135.6 $90.2 $190.0 $271.3 $19

Share of Single-Family Conventional Guaranty Book 0.3% 4.9% 3.3% 6.9% 9.8% 0.7

Average Unpaid Principal Balance (2) $113,443 $242,160 $120,980 $133,977 $152,993 $118,36

Serious Delinquency Rate 7.79% 15.70% 13.56% 10.27% 8.42% 18.99Origination Years 2005-2008 55.8% 82.9% 60.4% 56.8% 47.9% 66.0Weighted Average Origination Loan-to-Value Ratio 70.7% 74.9% 76.7% 77.1% 97.5% 98.2Origination Loan-to-Value Ratio > 90% 0.3% 8.9% 21.7% 20.3% 100.0% 100.0Weighted Average Mark-to-Market Loan-to-Value Ratio 99.4% 115.3% 89.1% 89.9% 108.9% 112.4

Mark-to-Market Loan-to-Value Ratio > 100% and <= 125% 12.9% 24.2% 17.2% 16.5% 33.6% 33.5Mark-to-Market Loan-to-Value Ratio > 125% 34.1% 34.0% 13.4% 14.3% 18.3% 24.3Weighted Average FICO (3) 707 725 588 641 711 59

FICO < 620 (3) 6.8% 1.4% 100.0%

 7.2% 100.0

Fixed-rate 0.7% 31.5% 80.9% 83.3% 88.4% 78.1

Primary Residence 68.7% 85.3% 96.6% 94.1% 95.7% 99.1

Condo/Co-op 13.6% 16.1% 4.8% 6.5% 10.1% 5.9

Credit Enhanced (4) 56.4% 18.5% 29.6% 28.1% 73.7% 86.6

% of 2007 Credit Losses (5) 0.9% 15.0% 18.8% 21.9% 17.4% 6.4

% of 2008 Credit Losses (5) 2.9% 34.2% 11.8% 17.4% 21.3% 5.4% of 2009 Credit Losses (5) 2.0% 32.6% 8.8% 15.5% 19.2% 3.4% of 2010 Credit Losses (5) 1.9% 28.6% 8.0% 15.1% 15.9% 2.7% of Q1 2011 Credit Losses (5) 1.9% 27.9% 7.8% 14.9% 16.5% 2.3% of Q2 2011 Credit Losses (5) (6) 2.2% 27.5% 6.7% 14.1% 6.2% 1.0

% of Q3 2011 Credit Losses (5) (6) -0.7% 24.5% 8.9% 14.5% 18.2% 3.0

Categories Not Mutually Exclusive (1)
Fannie Mae Credit Profile by Origination Year and K

Credit Characteristics of Single-Family Conventional Guaranty Book of B

(1) Excludes non-Fannie Mae securities held in portfolio and those Alt-A and subprime wraps for which Fannie Mae does not have loan-l

level information for over 99% of its single-family conventional guaranty book of business as of September 30, 2011.

(2) The increase for 2010 and 2011 is the result of our Refi Plus loans, which started in April 2009, and involve the refinance of existing F

(3) FICO credit scores as reported by the seller of the mortgage loan at the time of delivery.(4) Unpaid principal balance of all loans with credit enhancement as a percentage of unpaid principal balance of single-family convention

access to loan-level information. Includes primary mortgage insurance, pool insurance, lender recourse and other credit enhanceme

(5) Expressed as a percentage of credit losses for the single-family guaranty book of business. For information on total credit losses, refe(6) Defaults include loan liquidations other than through voluntary pay-off or repurchase by lenders and include loan foreclosures, prefore

foreclosure. Cumulative Default Rate is the total number of single-family conventional loans in the guaranty book of business originattotal number of single-family conventional loans in the guaranty book of business originated in the identified year. For 2000 to 2004 c

As of September 30, 2011 Overall Book 2011 2010 2009 2008 

Unpaid Principal Balance (billions) (1) $2,763.0 $274.3 $554.0 $507.7 $209.5 

Share of Single-Family Conventional Guaranty Book 100.0% 9.9% 20.0% 18.4% 7.6% 

Average Unpaid Principal Balance(1) $155,769 $196,836 $207,871 $199,062 $176,559 

Serious Delinquency Rate 4.00% 0.02% 0.16% 0.45% 5.34% Weighted Average Origination Loan-to-Value Ratio 71.3% 70.6% 69.0% 67.9% 74.8% Origination Loan-to-Value Ratio > 90% (2) 9.8% 11.1% 7.4% 4.6% 12.7% 

Weighted Average Mark-to-Market Loan-to-Value Ratio 77.8% 70.4% 69.3% 70.6% 89.5% 

Mark-to-Market Loan-to-Value Ratio > 100% and <= 125% 9.7% 3.4% 3.3% 4.2% 21.2% 

Mark-to-Market Loan-to-Value Ratio > 125% 7.1% 0.2% 0.2% 0.3% 9.0% Weighted Average FICO(3) 737 758 762 760 730 

FICO < 620 (3) 3.3% 0.6% 0.4% 0.4% 3.3% 

Interest Only 4.9% 0.7% 1.1% 0.9% 6.0% 

Negative Amortizing 0.3%   

Fixed-rate 89.3% 92.3% 94.7% 97.3% 87.5% 

Primary Residence 89.5% 87.1% 90.8% 92.2% 87.3% 

Condo/Co-op 9.4% 9.5% 8.6% 8.5% 12.0% Credit Enhanced (4) 14.2% 10.0% 7.0% 7.0% 27.4% 

% of 2007 Credit Losses (5) 100.0%   

% of 2008 Credit Losses (5) 100.0%   0.5% 

% of 2009 Credit Losses (5) 100.0%   4.8% % of 2010 Credit Losses (5) 100.0%   0.4% 7.0% 

% of Q1 2011 Credit Losses (5) 100.0%

 0.2% 1.0% 7.5% 

% of Q2 2011 Credit Losses (5) 100.0%

 0.7% 1.6% 0.1% 

% of Q3 2011 Credit Losses (5) 100.0%

 1.0% 2.0% 7.4% 

Cumulative Default Rate (6)

 0.0% 0.03% 0.13% 2.25% 

Origination Yea
Fannie Mae Credit Profile by State

Credit Characteristics of Single-Family Conventional Guaranty Bo

(1) Excludes non-Fannie Mae securities held in portfolio and those Alt-A and subprime wraps for which Fannie Mae does not have lo

detailed loan-level information for over 99% of its single-family conventional guaranty book of business as of September 30, 201

(2) FICO credit scores as reported by the seller of the mortgage loan at the time of delivery.(3) Unpaid principal balance of all loans with credit enhancement as a percentage of unpaid principal balance of single-family conve

Mae has access to loan-level information. Includes primary mortgage insurance, pool insurance, lender recourse and other credit 

(4) Expressed as a percentage of credit losses for the single-family guaranty book of business. For information on total credit losses

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

As of September 30, 2011 Overall Book AZ CA FL 

Unpaid Principal Balance (billions) (1) $2,763.0 $67.6 $510.2 $

Share of Single-Family Conventional Guaranty Book 100.0% 2.4% 18.5% Average Unpaid Principal Balance (1) $155,769 $150,960 $220,819 $14

Serious Delinquency Rate 4.00% 3.78% 2.70% 11Origination Years 2005-2008 32.3% 47.1% 27.2% 5Weighted Average Origination Loan-to-Value Ratio 71.3% 74.5% 64.8% 7Origination Loan-to-Value Ratio > 90% 9.8% 11.8% 4.5% 1Weighted Average Mark-to-Market Loan-to-Value Ratio 77.8% 110.3% 79.1% 10Mark-to-Market Loan-to-Value Ratio >100% and <=125% 9.7% 18.7% 10.0% 1Mark-to-Market Loan-to-Value Ratio >125% 7.1% 31.1% 11.3% 3Weighted Average FICO (2) 737 738 747 

FICO < 620 (2) 3.3% 2.7% 1.8% 

Interest Only 4.9% 9.9% 7.4% Negative Amortizing 0.3% 0.4% 1.0% Fixed-rate 89.3% 83.7% 85.9% 8Primary Residence 89.5% 81.7% 87.8% 8Condo/Co-op 9.4% 4.7% 12.0% 1Credit Enhanced (3) 14.2% 13.9% 6.2% 1

% of 2007 Credit Losses (4) 100.0% 1.8% 7.2% 

% of 2008 Credit Losses (4) 100.0% 8.0% 25.2% 1% of 2009 Credit Losses (4) 100.0% 10.8% 24.4% 1% of 2010 Credit Losses (4) 100.0% 10.0% 22.6% 1% of Q1 2011 Credit Losses (4) 100.0% 13.0% 29.2% 1% of Q2 2011 Credit Losses (4) 100.0% 17.5% 33.0% % of Q3 2011 Credit Losses (4) 100.0% 9.3% 25.2% 1
Fannie Mae Alt-A Credit Profile by Key Produc

Credit Characteristics of Alt-A Single-Family Conventional Guaranty Book o

(1) “Alt-A mortgage loan” generally refers to a mortgage loan that can be underwritten with reduced or alternative documentation than that required for a 

alternative product features. In reporting our Alt-A exposure, we have classified mortgage loans as Alt-A if the lenders that deliver the mortgage loandocumentation or other product features. We have classified private-label mortgage-related securities held in our investment portfolio as Alt-A if the s

(2) Newly originated Alt-A loans acquired in 2009, 2010, and 2011 consist of the refinance of Alt-A existing loans under our Refi Plus initiative.(3) Excludes non-Fannie Mae securities held in portfolio and those Alt-A and subprime wraps for which Fannie Mae does not have loan-level information

for over 99% of its single-family conventional guaranty book of business as of September 30, 2011.

(4) The increase for 2009, 2010, and 2011 is the result of Refi Plus loans, which started in April 2009 and can have loan-to-value ratios up to 125%.

(5) FICO credit scores as reported by the seller of the mortgage loan at the time of delivery.

(6) Defined as unpaid principal balance of Alt-A loans with credit enhancement as a percentage of unpaid principal balance of all Alt-A loans. At Septem

loans carried only primary mortgage insurance (no deductible), 6.1% had only pool insurance (which is generally subject to a deductible), 1.2% had carried other credit enhancement such as lender recourse. 

(7) Expressed as a percentage of credit losses for the single-family guaranty book of business. For information on total credit losses, refer to Fannie Ma

(8) Q3 credit losses are negative (gain) for some loan categories due to a change in our estimates relating to make whole receivables. The increase in m

(9) Defaults include loan liquidations other than through voluntary pay-off or repurchase by lenders and includes loan foreclosures, preforeclosure sales

Cumulative Default Rate is the total number of single-family conventional loans in the guaranty book of business originated in the identified year that 

conventional loans in the guaranty book of business originated in the identified year.

As of September 30, 2011 Alt-A (1) 2011 (2) 2010 (2) 2009 (2) 2008 

Unpaid principal balance (billions) (3) $188.4 $4.4 $4.1 $1.5 $4.6 

Share of Alt-A 100.0% 2.3% 2.2% 0.8% 2.4% Weighted Average Origination Loan-to-Value Ratio 73.3% 73.4% 79.0% 74.6% 68.1% 

Origination Loan-to-Value Ratio > 90% (4) 6.5% 22.9% 28.3% 20.0% 2.6% 

Weighted Average Mark-to-Market Loan-to-Value Ratio 99.1% 73.5% 81.3% 79.5% 86.0% 

Mark-to-Market Loan-to-Value Ratio > 100% and <=125% 18.1% 10.8% 15.8% 15.5% 17.2% 

Mark-to-Market Loan-to-Value Ratio > 125% 22.4% 0.4% 0.5% 1.2% 9.6% 

Weighted Average FICO (5) 717 744 734 736 724 

FICO < 620 (5) 0.9% 2.5% 3.2% 3.5% 0.2% 

Adjustable-rate 33.2% 2.3% 4.4% 3.7% 20.8% 

Interest Only 27.6%   0.1% 7.2% 

Negative Amortizing 2.6% 

Investor 17.6% 16.6% 11.9% 5.4% 18.6% 

Condo/Co-op 10.4% 6.0% 9.6% 8.8% 6.7% 

California 21.1% 22.2% 19.8% 16.3% 20.3% 

Florida 11.9% 4.4% 3.5% 3.3% 9.7% 

Credit Enhanced (6) 17.8% 2.1% 2.3% 1.6% 14.1% 

2010 Serious Delinquent Rate 13.87%

 0.44% 2.24% 10.29% 

2011 Serious Delinquent Rate 12.71% 0.09% 1.60% 3.92% 10.57% % of 2007 Credit Losses (7) 27.8%  % of 2008 Credit Losses (7) 45.6%  0.0% % of 2009 Credit Losses (7) 39.6%  0.4% % of 2010 Credit Losses (7) 33.2%

 0.0% 0.0% 0.5% 

% of Q1 2011 Credit Losses (7) 29.7%  0.4% 

% of Q2 2011 Credit Losses (7) (8) 28.4%

 0.1% 0.1% -0.2% 

% of Q3 2011 Credit Losses (7) (8) 24.6%

 0.1% 0.1% 0.4% 

Cumulative Default Rate (9)   0.34% 1.27% 6.68% 
Serious Delinquency Rate by Region (3)

2008 Q3 2008 Q4 2009 Q1 2009 Q2 2009 Q3 2009 Q4 2010 Q1 2010 Q2 2010 Q3 2010 Q4 

Midw est Northeast Southeast Southw e

Serious Delinquency Rate by States

2008 Q3 2008 Q4 2009 Q1 2009 Q2 2009 Q3 2009 Q4 2010 Q1 2010 Q2 2010 Q3 2010 Q4 

AZ CA FL NV Select Midw est 

Fannie Mae Single-Family Serious Delinquency Rates by 

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

(2) Select Midwest states are Illinois, Indiana, Michigan, and Ohio.(3) For information on which states are included in each region, refer to footnote 9 to Table 36 in Fannie Mae’s 2011 Q3 F

Select Midwe

Southw
134,285

105,323

78,079 

0

30,00060,00090,000

120,000150,000

2010 Q3 2010 Q4 2011 Q1 2

Number of Loans

Modifications Repayment Plans Completed Forbearances Completed HomeSaver Advance Pre

Fannie Mae Single-Family Completed Workout

 Modifications involve changes to the original mortgage loan terms, which may include a change to the product type, int

and/or unpaid principal balance. Modifications include completed modifications made under the Administration's Home which was implemented in March 2009, but do not reflect loans currently in trial modifications. Information on Fannie MModification Program is provided on Slide 12.

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

completed repayment plans are included for loans that were at least 60 days delinquent at initiation.

 Forbearances involve an agreement to suspend or reduce borrower payments for a period of time. Loans with forbeara

at least 90 days delinquent at initiation. 

 Deeds in lieu of foreclosure involve the borrower’s voluntarily signing over title to the property. In a preforeclosure sale, the borrower, working with the servicer, sells the home prior to foreclosure to pay off all or par

and other expenses from the sale proceeds.

 HomeSaver Advance TM are unsecured, personal loans designed to help qualified borrowers bring their delinquent mor

financial difficulty. The Program was retired on September 30, 2010.

TM
 Provides immediate payment relief to borrowers who are delinquent or in imminent risk o We require servicers to first evaluate all Fannie Mae problem loans for HAMP eligibility. 

HAMP, our servicers are required to exhaust all other workout alternatives before procee

Home Affordable Modification Program (HAMP

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

Fannie Mae Loans Under HAMP

(1) Active Permanent HAMP modifications exclude modifications on loans that subsequently canceled because the loans were 90

(2) Re-performance rates for modified single-family loans, including permanent HAMP modifications, are presented on Slide 14. 

As of September 30, 2011 reporting period Active HAMP TrialsTotal 26,348 Modification StructureRate Reduction 99% Term Extension 63% Forbearance 20% Median Monthly Principal and Interest Reduction% of September 30, 2011 SDQ Loans (2) 3%

$415 
Fannie Mae Single-Family Loan Modifications bChange and Type

Change in Monthly Principal and Interest Payment

of Modified Single-Family Loans(1)(2)

(1) Excludes loans that were classified as subprime adjustable rate mortgages that were modified into fixed rate mortgages and wer

include permanent modifications, but do not reflect loans currently in trial modifications. 

(2) Represents the change in the monthly principal and interest payment at the effective date of the modification. The monthly princ

vary, and may increase, during the remaining life of the loan.

Modification Type o

0%

20%40%60%80%

100%

Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011

Decrease of greater than 30% of Principal and Interest PaymentDecrease of greater than 20% but less than or equal to 30% of Principal and Interest PaymentDecrease of less than or equal to 20% of Principal and Interest PaymentNo Change in Principal and Interest PaymentIncrease in Principal and Interest Payment

0%

20%40%60%80%

100%

Q3 2010 Q4 2010 

Capitalization of Missed Extend Term, Reduce RaExtend Term and ReducExtend Term Only Reduce Rate Only 
Performance of Fannie Mae Modified Loans

Re-performance Rates of Modified Single-Family L

(1) Excludes loans that were classified as subprime adjustable rate mortgages that were modified into fixed rate mortgages and w

include permanent modifications, but do not reflect loans currently in trial modifications. 

(2) Includes loans that are paid off.

2009 2009 2010 2010 2010 

Q3 Q4 Q1 Q2 Q3 

3 months post modification 57% 78% 80% 79% 78% 6 months post modification 47% 69% 71% 73% 75% 9 months post modification 45% 62% 65% 71% 73% 12 months post modification 42% 58% 65% 70% 70% 15 months post modification 40% 60% 63% 66% n/a 18 months post modification 41% 58% 60% n/a n/a 21 months post modification 40% 56% n/a n/a n/a 

% Current and Performing (2)
20

2004

2005

2006

2007

2008

2009

2010

0.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%4.0%4.5%5.0%5.5%6.0%6.5%7.0%7.5%8.0%8.5%9.0%

Yr1-Q1 Yr2-Q1 Yr3-Q1 Yr4-Q1 Yr5-Q1 Yr6-Q1 Yr7-Q1 Yr8-Q1 Yr9-

Time Since Beginning of Origination Year

Cumulative Default Rate 

2000 2001 2002 2003 2004 2005 2006 2007 

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

lieu of foreclosure. Cumulative Default Rate is the total number of single-family conventional loans in the guaranty book of business origdivided by the total number of single-family conventional loans in the guaranty book of business originated in the identified year.

Data as of September 30, 2011 are not necessarily indicative of the ultimate performance of the loans and performance is periods.

Fannie Mae Single-Family Cumulative Default 

Cumulative Default Rates of Single-Family Conventional Guaranty Book o
(1) Select Midwest states are Illinois, Indiana, Michigan, and Ohio.

Fannie Mae Single-Family Real Estate Owned (States

2011 Q3 2011 Q2 2011 Q1 2010 2009 2008 2007 

56% 55% 54% 57% 55% 68% 78% 

REO Net Sales Prices Compared With Unpaid Principal Balances of Mortgag

Q3 2011 Q2 2011 Q1 2011 2010 2009 2008 

Beginning Balance 135,719 153,224 162,489 86,155 63,538 33,7Arizona 3,052 4,858 5,971 20,691 12,854 5,53

 

California 5,197 8,179 9,571 34,051 19,565 10,62

 

Florida 3,405 3,154 2,919 29,628 13,282 6,15

 

Nevada 1,467 3,099 2,678 9,418 6,075 2,90

 

Select Midwest States (1) 7,484 7,316 8,962 45,411 28,464 23,66

 

All other States 24,589 27,091 23,448 122,879 65,377 45,76

 

Total Acquisitions 45,194 53,697 53,549 262,078 145,617 94,65

 

Total Dispositions (58,297) (71,202) (62,814) (185,744) (123,000) (64,84

Ending Inventory 122,616 135,719 153,224 162,489 86,155 63,53

 

REO Acquisitions (Number of Properties)

State
Fannie Mae Multifamily Credit Profile by Loan 

( 1 ) Excludes loans that have been defeased. Defeasance is prepayment of a loan through substitution of collateral.( 2 ) We classify multifamily loans as seriously delinquent when payment is 60 days or more past due.( 3 ) Weighted Average Original loan-to-value ratio is 66% as of September 30, 2011.( 4 ) Under the Delegated Underwriting and Servicing, or DUS ®, product line, Fannie Mae purchases individual, newly originated 

using DUS underwriting standards and/or DUS loan documents. Because DUS lenders generally share the risk of loss with F

close and service most loans without our pre-review. 

( 5 ) Multifamily loans under $3 million and up to $5 million in high income areas.

Total Multifamily Guaranty Book of Business (1) 40,698 $191.0 100% 

Credit Enhanced Loans: Credit Enhanced 36,464 $171.0 90% Non-Credit Enhanced 4,234 $20.0 10% 

Originating loan-to-value ratio: (3)

Less than or equal to 70% 25,421 $100.8 53% Greater than 70% and less than or equal to 80% 12,011 $81.1 42% Greater than 80% 3,266 $9.1 5% Delegated Underwriting and Servicing (DUS ®) Loans: (4)

DUS ® - Small Balance Loans (5) 7,766 $14.9 8% 

DUS ® - Non Small Balance Loans 11,242 $137.0 72% DUS ® - Total 19,008 $151.8 79% 

Non-DUS - Small Balance Loans (5) 20,383 $17.4 9% 

Non-DUS - Non Small Balance Loans 1,307 $21.8 11% 

Non-DUS - Total 21,690 $39.2 21% 

Maturity Dates:Loans maturing in 2011 244 $1.1 1% Loans maturing in 2012 1,641 $11.0 6% 

Loans maturing in 2013 3,293 $18.9 10% Loans maturing in 2014 2,674 $15.0 8% Loans maturing in 2015 3,232 $16.7 9% 

Other maturities 29,614 $128.4 67% Loan Size Distribution:Less than or equal to $750K 12,131 $3.9 2% 

Greater than $750K and less than or equal to $3M 14,813 $21.8 11% Greater than $3M and less than or equal to $5M 4,742 $17.2 9% 

Greater than $5M and less than or equal to $25M 7,968 $79.8 42% Greater than $25M 1,044 $68.4 36% 

As of September 30, 2011 Unpaid Principal Balance (Billions) % of Multifamily Guaranty Book of Business (UPB) 

Loan Counts 
Fannie Mae Multifamily Credit Profile by Acqui

( 1 ) Excludes loans that have been defeased. Defeasance is prepayment of a loan through substitution of collateral.( 2 ) We classify multifamily loans as seriously delinquent when payment is 60 days or more past due.

Multifamily SDQ Rate by Acquisition Year Cumulative 

0.00%0.20%0.40%0.60%0.80%1.00%1.20%1.40%1.60%

Year

1

Year

2

Ye

3

Cumulative Default Rate

2005 2006 

2005

2006

2007

2008 

2009

0.00% 20100.20%0.40%0.60%0.80%1.00%1.20%1.40%1.60%

Year

1

Year

2

Year

3

Year

4

Year

5

Year

6

Year

7

SDQ Rate

2005 2006 2007 2008 2009 2010

As of September 30, 2011 Unpaid Principal Balance (Billions) % of Multifamily Guaranty Book of Business (UPB) % Seriously Delinquent (2) # 

Total Multifamily Guaranty Book of Business (1) $191.0 100% 0.57% 

By Acquisition Year:

2011 $17.0 9%



2010 $17.2 9% 0.04% 2009 $18.2 10% 0.05%2008 $31.3 16% 1.05% 

2007 $39.6 21% 1.00% 

2006 $17.9 9% 0.40% 

2005 $15.1 8% 0.48% 

Prior to 2005 $34.6 18% 0.62% 
Fannie Mae Multifamily Credit Profile

(1) Excludes loans that have been defeased. Defeasance is prepayment of a loan through substitution of collateral.

(2) We classify multifamily loans as seriously delinquent when payment is 60 days or more past due.

(3) For information on which states are included in each region, refer to Fannie Mae’s 2011 Q3 Form 10-Q.(4) Asset Class Definitions: Conventional/Co-Op Housing: Privately owned multifamily properties or multifamily properties in which the residents 

cooperative corporation. Seniors Housing: Multifamily rental properties for senior citizens. Manufactured Housing: A residential real estate d

homes, related amenities, utility services, landscaping, roads and other infrastructure. Student Housing: Multifamily rental properties in which and/or graduate students. 

(5) The Multifamily Affordable Business Channel focuses on financing properties which are under a regulatory agreement that provides long-term 

income restrictions.

Total Multifamily Guaranty Book of Business (1) $191.0 100% 0

Region: (3)

Midwest $15.9 8% 1

Northeast $41.7 22% 0Southeast $37.7 20% 1

Southwest $30.7 16% 0

Western $64.9 34% 0

Top Five States by UPB:California $50.9 27% 0

New York $24.8 13% 0

Texas $15.0 8% 0

Florida $9.2 5% 2

Virginia $7.6 4%

Asset Class: (4)

Conventional/Co-op $169.7 89% 0Seniors Housing $14.4 8%Manufactured Housing $4.5 2% 0

Student Housing $2.4 1%

Targeted Affordable Segment:Privately Owned with Subsidy (5) $27.1 14% 0

DUS & Non-DUS Lenders:DUS Lender: Bank (Direct, Owned Entity, or Subsidiary) $78.8 41% 0

DUS Lender Non-Bank Financial Institution $95.7 50% 0Non-DUS Lender: Bank (Direct, Owned Entity, or Subsidiary) $15.1 8% 0

Non-DUS Lender: Non-Bank Financial Institution $1.2 1% 0

Non-DUS Lender: Public Agency/Non Profit $0.2 0% 0

As of September 30, 2011

% of Multifamily 

Guaranty Book of 

Business (UPB)

% S

Delin

Unpaid Principal 

Balance (Billions)
Fannie Mae Multifamily 2011 YTD Credit Losses by 

Numbers: Represent 2011 YTD credit losses for each state which total $299M(2) as of September 30, 2011. States with no numbers ha

Shading: Represent Unpaid Principal Balance (UPB) for each state. These amounts total $191 billion as of September 30, 2011. 

(1) Excludes loans that have been defeased. Defeasance is prepayment of a loan through substitution of collateral.

(2) Excludes $19M of credit related income from other Multifamily Mortgage Business investments.

Exam

Michig

2011 YT

hav