2016CreditSupplement

February17,2017

©2017FannieMae.TrademarksofFannieMae.
ThispresentationincludesinformationaboutFannieMae,includinginformationcontainedin

FannieMae’sAnnualReportonForm10-KfortheyearendedDecember31,2016,the“2016

Form10-K.”Someofthetermsusedinthesematerialsaredefinedanddiscussedmorefully

inthe2016Form10-K.Thesematerialsshouldbereviewedtogetherwiththe2016Form10-K,

copiesofwhichareavailablethroughthe“SECFilings”pageinthe

“AboutUs/InvestorRelations”sectionofFannieMae’swebsiteatwww.fanniemae.com.

Someoftheinformationinthispresentationisbaseduponinformationthatwereceivedfrom

third-partysourcessuchassellersandservicersofmortgageloans.Althoughwegenerally

considerthisinformationreliable,wedonotindependentlyverifyallreportedinformation.

Duetorounding,amountsreportedinthispresentationmaynotaddtototalsindicated(or

100%).

Unlessotherwiseindicateddatalabeledas“2016”isasofDecember31,2016orforthefull

yearof2016.

§

§

.

§

§

©2017FannieMae.TrademarksofFannieMae.
©2017FannieMae.TrademarksofFannieMae. 2

TableofContents

HomePriceGrowth/DeclineRatesintheU.S.

OneYearHomePriceChangeasof2016Q4

HomePriceChangeFrom2006Q3Through2016Q4 5

4

3

HomePrices

CreditCharacteristicsofSingle-FamilyBusinessAcquisitions

CreditRiskProfileSummaryofSingle-FamilyBusinessAcquisitions

CertainCreditCharacteristicsofSingle-FamilyBusinessAcquisitions:2005-2016

Single-FamilyBusinessAcquisitionsbyLoanPurpose

CreditCharacteristicsofSingle-FamilyConventionalGuarantyBookofBusinessbyOriginationYear

CreditCharacteristicsofSingle-FamilyConventionalGuarantyBookofBusinessbyCertainProductFeatures 11

10

9

8

7

6

CreditProfileofFannieMaeSingle-FamilyLoans

CreditCharacteristicsofSingle-FamilyConventionalGuarantyBookofBusinessandSingle-FamilyRealEstateOwned(REO)inSelectStates

SeriouslyDelinquentLoanandREOEndingInventorySharebySelectStates

Single-FamilyShortSalesandREOSalesPricestoUnpaidPrincipalBalance(UPB)ofMortgageLoans 14

13

12

GeographicCreditProfileofFannieMaeSingle-FamilyLoansandForeclosedProperties(REO)

Single-FamilyLoanWorkouts

Re-performanceRatesofModifiedSingle-FamilyLoans 16

15

WorkoutsofFannieMaeSingle-FamilyLoans

CreditLossConcentrationofSingle-FamilyConventionalGuarantyBookofBusiness

CumulativeDefaultRatesofSingle-FamilyConventionalGuarantyBookofBusinessbyOriginationYear 18

17

AdditionalCreditInformationforFannieMaeSingle-FamilyLoans

MultifamilyCreditProfilebyLoanAttributes

SeriousDelinquencyRatesofMultifamilyBookofBusiness

CumulativeCreditLossRatesofMultifamilyGuarantyBookofBusinessByAcquisitionYear 22

21

19-20

CreditProfileofFannieMaeMultifamilyLoans
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

11.3%

-3.6%

-9.1%

-4.8%

-4.2%

-3.5%

2.6%

4.0%

7.7%

4.3% 4.7%

5.9%

FannieMaeHomePriceIndex

*Year-to-dateasofJanuary2017.

*Year-to-dateasofQ32016.Ascomparison,FannieMae’sindexforthesameperiodis5.6%.

Basedonourhomepriceindex,weestimatethathomepricesonanationalbasisincreasedby5.9%in2016,followingincreasesof4.7%in2015and4.3%in

2014.Despitetherecentincreasesinhomeprices,weestimatethat,throughDecember31,2016,homepricesonanationalbasisremained1.0%belowtheirpeak

inthethirdquarterof2006.Ourhomepriceestimatesarebasedonpreliminarydataandaresubjecttochangeasadditionaldatabecomeavailable.

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

13.5% 1.7% -5.4% -12.0% -3.8% -4.1% -3.9% 6.5% 10.7% 4.5% 5.3% 5.3%

S&P/Case-ShillerIndex

HomePriceGrowth/DeclineRatesintheU.S.

Note:EstimatebasedonpurchasetransactionsinFannie-FreddieacquisitionandpublicdeeddataavailablethroughtheendofJanuary2017.Includingsubsequentdatamayleadtomateriallydifferentresults.

©2017FannieMae.TrademarksofFannieMae. 3

*
OneYearHomePriceChangeasof2016Q4*

MI

8.3%

2.4%

SC

4.7%

1.2%

NC

4.8%

2.5%

LA

3.2%

0.9%

WA

10.3%

3.6%

OR

10.2%

1.7%

CA

7.9%

19.6%

WY

-0.7%

0.2%

AL

2.5%

1.0%

AR

3.5%

0.5%

IA

3.5%

0.7%

IL

3.9%

3.9%

KY

4.5%

0.6%

ME

4.4%

0.3%

MO

5.0%

1.3%

MS

4.1%

0.4%

ND

1.4%

0.2%

NE

4.4%

0.5%

NM

2.8%

0.5%

OH

4.9%

2.0%

OK

1.5%

0.7%

PA

4.0%

3.0%

AZ

8.6%

2.5%

VA

3.7%

3.5%

CO

9.7%

2.9%

FL

9.7%

5.6%

GA

6.9%

2.7%

ID

7.0%

0.6%

IN

5.2%

1.2% KS

5.6%

0.5%

MN

5.1%

2.1%

MT

6.4%

0.3%

NV

7.4%

1.0%

NY

6.5%

5.2%

TN

8.6%

1.3%

TX

5.1%

6.1%

UT

7.7%

1.2%

WI

5.1%

1.8%

SD

4.2%

0.2%

WV

1.7%

0.2%

State:FL

GrowthRate:9.7%

UPB%**:5.6%

UnitedStates:5.9%

*Source:FannieMae.HomepriceestimatesarebasedonpurchasetransactionsinFannie-FreddieacquisitionandpublicdeeddataavailablethroughtheendofJanuary2017.UPBestimatesarebasedondata

availablethroughtheendofDecember2016.Includingsubsequentdatamayleadtomateriallydifferentresults.

**“UPB%”referstounpaidprincipalbalanceofloansonpropertiesintheapplicablestateasapercentageofunpaidprincipalbalanceofsingle-familyconventionalguarantybookofbusinessforwhichFannieMae

hasaccesstoloan-levelinformation.

©2017FannieMae.TrademarksofFannieMae. 4

AK

-0.3%

0.2%

Growth

Rate

UPB%**

CT

DC

DE

MA

MD

NH

NJ

RI

VT 0.2%

0.3%

3.8%

0.5%

2.7%

2.9%

0.4%

0.4%

1.3%

6.1%

7.4%

3.1%

4.3%

3.2%

6.1%

1.6%

6.0%

2.5%

HI

5.5%

0.7%

StateGrowthRate

Below0%

0%to5%

5%to10%

10%andAbove
LA

16.1%

0.9%

SC

2.2%

1.2%

NC

4.2%

2.5%

MI

-5.8%

2.4%

AZ

-22.1%

2.5%

FL

-22.6%

5.6%

NV

-28.6%

1.0%

CA

-10.7%

19.6%

IL

-12.5%

3.9%

WY

13.5%

0.2%

CO

30.8%

2.9%

IA

14.2%

0.7%

KS

13.4%

0.5%

MT

18.0%

0.3%

ND

53.5%

0.2%

NE

16.1%

0.5%

OK

15.0%

0.7%

SD

24.3%

0.2%

TN

11.8%

1.3%

TX

30.2%

6.1%

UT

15.6%

1.2%

NM

-5.5%

0.5%

VA

-8.9%

3.5%

AL

-0.6%

1.0%

GA

-3.2%

2.7%

ID

-0.7%

0.6%

ME

-0.7%

0.3%

MN

-2.8%

2.1%

OH

-0.8%

2.0%

AR

4.7%

0.5%

MO

2.8%

1.3%

MS

1.4%

0.4%

NY

1.1%

5.2%

WA

7.5%

3.6%

WI

0.4%

1.8%

WV

5.0%

0.2%

IN

9.1%

1.2%

KY

9.8%

0.6%

OR

8.5%

1.7%

PA

4.0%

3.0%

State:FL

GrowthRate:-22.6%

UPB%**:5.6%

UnitedStates:-1.0%

HomePriceChangeFrom 2006Q3Through2016Q4*

*Source:FannieMae.HomepriceestimatesarebasedonpurchasetransactionsinFannie-FreddieacquisitionandpublicdeeddataavailablethroughtheendofJanuary2017.UPBestimatesarebasedondataavailablethroughthe

endofDecember2016.Includingsubsequentdatamayleadtomateriallydifferentresults.

**“UPB%”referstounpaidprincipalbalanceofloansonpropertiesintheapplicablestateasapercentageofunpaidprincipalbalanceofsingle-familyconventionalguarantybookofbusinessforwhichFannieMaehasaccessto

loan-levelinformation.

Note:Homepricesonanationalbasisreachedapeakinthethirdquarterof2006.

©2017FannieMae.TrademarksofFannieMae. 5

AK

10.3%

0.2%

HI

6.3%

0.7%

Growth

Rate

UPB%**

CT

DC

DE

MA

MD

NH

NJ

RI

VT 0.2%

0.3%

3.8%

0.5%

2.7%

2.9%

0.4%

0.4%

1.3%

-1.1%

-16.2%

-17.7%

-7.4%

-17.2%

1.6%

-12.6%

36.5%

-18.0%

StateGrowthRate

Below-15%

-15%to-5%

-5%to0%

0%to5%

5%to10%

10%andAbove
FullYear2016

Single-Family

Acquisitions

Excl.

RefiPlus

Q42016

Single-Family

Acquisitions

Excl.

RefiPlus

Q32016

Single-Family

Acquisitions

Excl.

RefiPlus

Q22016

Single-Family

Acquisitions

Excl.

RefiPlus

Q12016

Single-Family

Acquisitions

Excl.

RefiPlus

FullYear2015

Single-Family

Acquisitions

Excl.

RefiPlus

UnpaidPrincipalBalance(UPB)($B)

WeightedAverageOriginationNoteRate 3.73%

$558.9

3.74%

$581.0

3.57%

$173.1

3.58%

$178.2

3.66%

$160.2

3.66%

$165.6

3.82%

$129.2

3.83%

$135.0

4.01%

$96.4

4.02%

$102.2

3.97%

$441.0

3.98%

$471.4

<=60%

60.01%to70%

70.01%to80%

80.01%to90%

90.01%to100%

>100%

WeightedAverageOriginationLTVRatio 73.6%

0.0%

14.8%

11.5%

38.8%

14.5%

20.4%

73.6%

0.4%

14.6%

11.6%

38.1%

14.5%

20.7%

72.0%

0.0%

12.8%

10.6%

37.5%

15.6%

23.5%

71.9%

0.2%

12.7%

10.7%

37.1%

15.6%

23.8%

73.9%

0.0%

15.5%

11.7%

38.4%

14.2%

20.2%

73.8%

0.3%

15.3%

11.8%

37.8%

14.3%

20.6%

74.8%

0.0%

16.3%

12.2%

39.7%

13.8%

18.0%

74.7%

0.4%

16.0%

12.3%

38.9%

13.9%

18.5%

74.6%

0.0%

15.3%

12.0%

40.8%

13.8%

18.1%

74.5%

0.6%

15.0%

12.2%

39.6%

13.9%

18.7%

74.8%

0.0%

15.2%

12.3%

41.3%

13.6%

17.5%

74.8%

0.8%

14.9%

12.5%

40.0%

13.7%

18.2%

OriginationLoan-to-Value(LTV)Ratio

<620

620to<660

660to<700

700to<740

>=740

WeightedAverageFICOCreditScore 752

64.9%

20.4%

10.9%

3.8%

0.0%

750

63.9%

20.4%

11.3%

4.1%

0.3%

754

66.9%

19.8%

10.0%

3.3%

0.0%

753

66.1%

19.8%

10.3%

3.6%

0.2%

753

66.1%

19.9%

10.4%

3.6%

0.0%

752

65.2%

19.9%

10.7%

3.9%

0.3%

751

63.6%

21.1%

11.4%

3.8%

0.0%

749

62.5%

21.0%

11.8%

4.2%

0.4%

748

61.2%

21.5%

12.6%

4.7%

0.0%

746

59.8%

21.4%

13.0%

5.2%

0.5%

750

63.5%

20.5%

11.7%

4.2%

0.0%

748

62.1%

20.4%

12.1%

4.7%

0.6%

FICOCreditScores

CreditCharacteristicsofSingle-FamilyBusinessAcquisitions

Fixed-rate

Adjustable-rate

Alt-A

InterestOnly

Investor

Condo/Co-op

Refinance 54.0%

9.6%

5.6%

0.0%

0.0%

1.6%

98.4%

55.7%

9.6%

6.0%

0.0%

0.3%

1.5%

98.5%

60.1%

9.4%

5.5%

0.0%

0.0%

1.1%

98.9%

61.2%

9.4%

5.7%

0.0%

0.2%

1.1%

98.9%

51.5%

9.5%

5.2%

0.0%

0.0%

1.6%

98.4%

53.0%

9.5%

5.4%

0.0%

0.2%

1.6%

98.4%

51.3%

10.0%

5.7%

0.0%

0.0%

1.5%

98.5%

53.4%

9.9%

6.1%

0.0%

0.3%

1.5%

98.5%

50.9%

9.7%

6.6%

0.0%

0.0%

2.4%

97.6%

53.7%

9.7%

7.1%

0.0%

0.4%

2.3%

97.7%

51.6%

10.0%

7.2%

0.0%

0.0%

2.6%

97.4%

54.7%

10.0%

7.8%

0.0%

0.4%

2.5%

97.5%

CertainCharacteristics

Purchase

Cash-outrefinance

Otherrefinance 33.9%

20.1%

46.0%

36.4%

19.3%

44.3%

38.6%

21.5%

39.9%

40.3%

20.9%

38.8%

33.0%

18.4%

48.5%

35.2%

17.8%

47.0%

32.1%

19.2%

48.7%

35.0%

18.4%

46.6%

29.4%

21.6%

49.1%

33.4%

20.4%

46.3%

31.7%

19.9%

48.4%

36.1%

18.6%

45.3%

LoanPurpose

Percentagecalculatedbasedonunpaidprincipalbalanceofloansattimeofacquisition.Single-familybusinessacquisitionsrefertosingle-familymortgageloansweacquirethroughpurchaseorsecuritizationtransactions.

Single-familybusinessacquisitionsfortheapplicableperiodexcludingloansacquiredunderourRefiPlusinitiative,whichincludestheHomeAffordableRefinanceProgram®(“HARP®”).OurRefiPlusinitiativeprovidesexpandedrefinance

opportunitiesforeligibleFannieMaeborrowers,andmayinvolvetherefinanceofexistingFannieMaeloanswithhighloan-to-valueratios,includingloanswithloan-to-valueratiosinexcessof100%.

FICOcreditscoreisasofloanorigination,asreportedbythesellerofthemortgageloan.

NewlyoriginatedAlt-AloansfortheapplicableperiodsconsistoftherefinanceofexistingloansunderourRefiPlusinitiative.ForadescriptionofourAlt-Aloanclassificationcriteria,refertoFannieMae’s2016Form10-K.

Single-FamilyAcquisitions

5.0%

7.2%

23.0%

(1)

(2)

(3)

(4)

Single-FamilyAcquisitions

5.4%

7.1%

23.0%

Single-FamilyAcquisitions

4.9%

6.9%

22.8%

Single-FamilyAcquisitions

California

Texas

Florida 5.1%

6.9%

22.9%

Single-FamilyAcquisitions

5.8%

7.6%

21.7%

Single-FamilyAcquisitions

4.6%

6.3%

23.7%

©2017FannieMae.TrademarksofFannieMae. 6

AcquisitionPeriod

(4)

(2) (2) (2) (2) (2) (2)

(3)

(1)

Top3GeographicConcentrations
Percentagecalculatedbasedonunpaidprincipalbalanceofloansattimeofacquisition.Single-familybusinessacquisitionsrefertosingle-familymortgageloansweacquirethroughpurchaseorsecuritization

transactions.

FICOcreditscoreisasofloanorigination,asreportedbythesellerofthemortgageloan.FICOcreditscoresatoriginationbelow620primarilyconsistoftherefinanceofexistingloansunderourRefiPlus

initiative,whichincludestheHomeAffordableRefinanceProgram(“HARP”).OurRefiPlusinitiativeprovidesexpandedrefinanceopportunitiesforeligibleFannieMaeborrowers,andmayinvolvetherefinance

ofexistingFannieMaeloanswithhighloan-to-valueratios,includingloanswithloan-to-valueratiosinexcessof100%.

Single-familybusinessacquisitionsfortheapplicableperiodexcludingloansacquiredunderourRefiPlusinitiative,whichincludesHARP.

<=60%

60.01%

to80%

80.01%

to100% >100% Total

>=740

660to<740

620to<660

<620

Total 100.0%

0.3%

4.1%

31.6%

63.9%

0.4%

0.0%

0.1%

0.2%

0.1%

26.2%

0.1%

1.0%

10.0%

15.2%

52.7%

0.1%

2.2%

16.5%

33.8%

20.7%

0.1%

0.8%

5.0%

14.8%

<=60%

60.01%

to80%

80.01%

to100% >100% Total

>=740

660to<740

620to<660

<620

Total 100.0%

0.6%

4.7%

32.5%

62.1%

0.8%

0.1%

0.1%

0.3%

0.2%

27.4%

0.2%

1.2%

10.4%

15.6%

53.7%

0.2%

2.6%

17.1%

33.6%

18.2%

0.1%

0.8%

4.6%

12.6%

<=60%

60.01%

to80%

80.01%

to95% >95% Total

>=740

660to<740

620to<660

Total 100.0%

3.8%

31.3%

64.9%

2.4%

0.1%

1.1%

1.2%

23.9%

0.8%

8.8%

14.3%

53.3%

2.1%

16.6%

34.6%

20.4%

0.7%

4.8%

14.9%

<=60%

60.01%

to80%

80.01%

to95% >95% Total

>=740

660to<740

620to<660

Total 100.0%

4.2%

32.2%

63.5%

1.6%

0.1%

0.8%

0.7%

25.9%

0.9%

9.6%

15.4%

54.9%

2.5%

17.5%

34.9%

17.5%

0.7%

4.3%

12.5%

CreditProfileforSingle-FamilyAcquisitions(ExcludingRefiPlus)

FICOCreditScoreFICOCreditScoreFICOCreditScore

FICOCreditScoreFICOCreditScoreFICOCreditScore

(1)

(2)

(3)

©2017FannieMae.TrademarksofFannieMae. 7

<=60%

60.01%

to80%

80.01%

to100% >100% Total

>=740

660to<740

620to<660

<620

Total 0.0%

-0.3%

-0.6%

-0.9%

1.8%

-0.4%

0.0%

-0.1%

-0.2%

-0.1%

-1.1%

-0.1%

-0.2%

-0.4%

-0.5%

-1.0%

-0.1%

-0.4%

-0.7%

0.2%

2.5%

0.0%

0.0%

0.4%

2.2%

<=60%

60.01%

to80%

80.01%

to95% >95% Total

>=740

660to<740

620to<660

Total 0.0%

-0.5%

-0.9%

1.4%

0.8%

0.0%

0.3%

0.4%

-2.0%

-0.1%

-0.8%

-1.1%

-1.6%

-0.4%

-0.9%

-0.3%

2.8%

0.0%

0.4%

2.4%

CreditProfileforSingle-FamilyAcquisitions

CreditRiskProfileSummaryofSingle-FamilyBusinessAcquisitions

2016

2016 2015

2015

Changein

Acquisitions

Profile

Changein

Acquisitions

Profile

OriginationLTVRatio OriginationLTVRatio OriginationLTVRatio

OriginationLTVRatio OriginationLTVRatio OriginationLTVRatio

(2)(2)(2)

(2)(2)(2)

(3)

(1)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

40%

60%

80%

100%

OriginationLTV

Ratio

0%

5%

10%

15%

20%

%ofSingle-FamilyBusinessAcquisitions

OriginationLoan-to-Value(OLTV)Ratio

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

660

680

700

720

740

760

780

FIC

O

CreditScore

0%

5%

10%

15%

20%

%ofSingle-FamilyBusinessAcquisitions

FICOCreditScore

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

0%

20%

40%

60%

80%

100%

%ofSingle-FamilyBusinessAcquisitions

ShareofSingle-FamilyBusinessAcquisitions:

Fixed-rateProduct

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

0%

20%

40%

60%

80%

100%

%ofSingle-FamilyBusinessAcquisitions

ShareofSingle-FamilyBusinessAcquisitions:

LoanPurpose-Purchase

ProductFeature

WeightedAverageOriginationLTVRatio OriginationLTV>90% WeightedAverageFICOCreditScore FICOCreditScore<620

Percentagecalculatedbasedonunpaidprincipalbalanceofloansattimeofacquisition.Single-familybusinessacquisitionsrefertosingle-familymortgageloansweacquirethroughpurchaseorsecuritization

transactions.

FICOcreditscoreisasofloanorigination,asreportedbythesellerofthemortgageloan.Loansacquiredafter2009withFICOcreditscoresatoriginationbelow620primarilyconsistoftherefinanceofexisting

loansunderourRefiPlusinitiative,whichincludesHARP.

CertainCreditCharacteristicsofSingle-FamilyBusinessAcquisitions:2005-2016

(1)

(2)

.

©2017FannieMae.TrademarksofFannieMae. 8

*Year-to-datethrough2016.

(2)

(1)

* *

* *
2009 2010 2011 2012 2013 2014 2015 2016

0%

20%

40%

60%

80%

100%

%ofSingle-FamilyBusinessAcquisitions

2% 1%

4% 3%

6%

16% 14% 10% 10% 4%

6%

9%

9%

14% 14%

7%

36% 48% 52%

48%

54% 52% 55%

69%

45% 44%

52%

30%

20% 23% 24% 21%

Single-FamilyBusinessAcquisitionsbyLoanPurpose

HARP RefiPlusAcquisitions(ExcludingHARP) RefinanceAcquisitions(ExcludingRefiPlus) PurchaseAcquisitions

2009

HARP

RefiPlus

(Excl.

HARP)

2010

HARP

RefiPlus

(Excl.

HARP)

2011

HARP

RefiPlus

(Excl.

HARP)

2012

HARP

RefiPlus

(Excl.

HARP)

2013

HARP

RefiPlus

(Excl.

HARP)

2014

HARP

RefiPlus

(Excl.

HARP)

2015

HARP

RefiPlus

(Excl.

HARP)

2016

HARP

RefiPlus

(Excl.

HARP)

UnpaidPrincipalBalance(UPB)($B)

WeightedAverageOriginationNoteRate 4.85%

$44.7

5.05%

$27.9

4.68%

$80.5

5.00%

$59.0

4.44%

$81.2

4.78%

$55.6

3.89%

$73.8

4.14%

$129.9

3.80%

$64.4

4.04%

$99.5

4.39%

$23.5

4.62%

$21.5

4.08%

$19.2

4.23%

$11.2

3.89%

$14.7

4.05%

$7.4

CreditCharacteristicsofSingle-FamilyBusinessAcquisitionsUndertheRefiPlusInitiative

OurRefiPlusinitiative,whichstartedinApril2009,includestheHomeAffordableRefinanceProgram(“HARP”).OurRefiPlusinitiativeprovidesexpandedrefinanceopportunitiesforeligibleFannieMae

borrowers,andmayinvolvetherefinanceofexistingFannieMaeloanswithhighloan-to-valueratios,includingloanswithloan-to-valueratiosinexcessof100%.

FICOcreditscoreisasofloanorigination,asreportedbythesellerofthemortgageloan.

©2017FannieMae.TrademarksofFannieMae. 9

<=80%

80.01%to105%

105.01%to125%

>125%

WeightedAverageOriginationLTVRatio 63.3%

0.0%

0.0%

0.0%

100.0%

90.7%

0.0%

0.9%

99.1%

0.0%

62.3%

0.0%

0.0%

0.0%

100.0%

92.2%

0.0%

5.6%

94.4%

0.0%

60.2%

0.0%

0.0%

0.0%

100.0%

94.3%

0.0%

11.9%

88.1%

0.0%

61.1%

0.0%

0.0%

0.0%

100.0%

111.0%

20.7%

22.1%

57.2%

0.0%

60.2%

0.0%

0.0%

0.0%

100.0%

109.8%

20.1%

21.5%

58.4%

0.0%

61.3%

0.0%

0.0%

0.0%

100.0%

101.5%

9.9%

16.9%

73.3%

0.0%

60.4%

0.0%

0.0%

0.0%

100.0%

98.4%

7.0%

15.0%

78.0%

0.0%

60.0%

0.0%

0.0%

0.0%

100.0%

96.9%

5.4%

13.5%

81.1%

0.0%

OriginationLTVRatio

<620

620to<660

660to<740

>=740

WeightedAverageFICOCreditScore 762

74.5%

23.0%

1.7%

0.8%

749

64.4%

31.9%

2.5%

1.2%

760

72.3%

23.9%

2.4%

1.4%

746

61.2%

33.1%

3.6%

2.0%

758

70.0%

25.6%

2.8%

1.7%

746

61.5%

32.6%

3.8%

2.1%

753

66.9%

26.0%

4.2%

2.9%

738

56.6%

33.8%

6.0%

3.7%

737

55.8%

31.9%

6.9%

5.3%

722

45.1%

38.7%

9.5%

6.7%

717

43.0%

36.5%

11.2%

9.3%

704

33.9%

41.0%

14.5%

10.6%

722

46.3%

34.4%

10.5%

8.8%

706

34.8%

41.1%

14.6%

9.5%

717

41.6%

37.5%

11.6%

9.2%

703

30.8%

44.9%

15.3%

9.1%

FICOCreditScores

(1)

(2)

*Year-to-datethrough2016.

AcquisitionYear

(1)

(2)

*

*

Acquisitions
OverallBook

OriginationYear

2016 2015 2014 2013 2012 2011 2010 2009 2008

2007and

Earlier

UnpaidPrincipalBalance(UPB)($B)

ShareofSingle-FamilyConventionalGuarantyBook

AverageUnpaidPrincipalBalance

SeriousDelinquencyRate

WeightedAverageOriginationLTVRatio

OriginationLTVRatio>90%

WeightedAverageMark-to-MarketLTVRatio

Mark-to-MarketLTVRatio>100%and<=125%

Mark-to-MarketLTVRatio>125%

WeightedAverageFICOCreditScore

FICO<620

InterestOnly

NegativeAmortizing

Fixed-rate

PrimaryResidence

Condo/Co-op

CreditEnhanced

CumulativeDefaultRate n/a

33.0%

9.3%

88.3%

94.1%

0.1%

1.7%

2.0%

745

0.4%

1.5%

60.0%

16.4%

74.8%

1.20%

$163,200

100.0%

$2,799.5

n/a

15.9%

9.2%

89.4%

69.8%

1.1%

12.2%

9.5%

698

2.3%

6.7%

61.9%

14.5%

75.2%

4.43%

$96,798

11.2%

$312.3

5.0%

23.0%

10.5%

88.1%

72.1%

0.0%

8.6%

6.6%

712

0.9%

4.2%

64.4%

12.5%

74.8%

5.05%

$137,522

1.5%

$40.7

0.8%

4.2%

8.7%

90.5%

97.3%

0.0%

1.1%

0.9%

751

0.0%

0.3%

50.6%

6.4%

69.5%

0.96%

$138,154

3.6%

$99.8

0.6%

5.2%

8.2%

89.0%

96.4%

0.0%

0.9%

0.8%

756

0.0%

0.2%

48.7%

10.1%

71.0%

0.60%

$141,054

5.2%

$144.2

0.4%

7.2%

8.4%

86.9%

95.9%

0.0%

0.5%

0.8%

757

0.0%

0.1%

47.2%

12.3%

71.1%

0.46%

$142,241

6.3%

$175.5

0.3%

23.4%

8.8%

88.6%

98.0%

0.0%

0.3%

1.1%

759

0.3%

1.4%

51.4%

19.0%

76.5%

0.33%

$173,967

17.1%

$479.4

0.3%

46.3%

10.0%

85.9%

97.9%

0.0%

0.2%

1.8%

750

0.5%

1.7%

56.6%

20.6%

76.7%

0.43%

$171,355

14.9%

$417.3

0.1%

61.2%

9.8%

85.9%

96.0%

0.0%

0.0%

1.5%

742

0.2%

0.7%

64.0%

19.9%

76.9%

0.47%

$175,527

8.4%

$235.2

0.0%

64.0%

9.8%

88.1%

97.7%

0.0%

0.0%

0.6%

748

0.1%

0.3%

67.0%

16.6%

75.1%

0.19%

$204,186

13.7%

$382.5

0.0%

28.5%

9.5%

90.5%

98.8%

0.0%

0.0%

0.3%

750

0.1%

0.3%

71.4%

15.2%

73.6%

0.03%

$227,980

18.3%

$512.6

Excludesnon-FannieMaesecuritiesheldinportfolioandthoseAlt-AandsubprimewrapsforwhichFannieMaedoesnothaveloan-levelinformation.FannieMaehadaccesstodetailedloan-levelinformation

forapproximately99%ofitssingle-familyconventionalguarantybookofbusinessasofDecember31,2016.

FICOcreditscoreisasofloanorigination,asreportedbythesellerofthemortgageloan.Loansacquiredafter2009withFICOcreditscoresatoriginationbelow620primarilyconsistoftherefinanceofexisting

loansunderourRefiPlusinitiative,whichincludesHARP.

Percentageofloansinoursingle-familyconventionalguarantybookofbusiness,measuredbyunpaidprincipalbalance,includedinanagreementusedtoreducecreditriskbyrequiringcollateral,lettersof

credit,mortgageinsurance,corporateguarantees,inclusioninacreditrisktransfertransactionreferencepool,orotheragreementthatprovidesforourcompensationtosomedegreeintheeventofafinancial

lossrelatingtotheloan.BecauseweincludeloansinreferencepoolsforourConnecticutAvenueSecuritiesTM andCreditInsuranceRiskTransferTM creditrisktransfertransactionsonalaggedbasis(typically

aboutsixmonthstooneyearafterweinitiallyacquiretheloans),weexpectthepercentageofour2016single-familyloanacquisitionswithcreditenhancementwillincreaseinthefuture.

Defaultsincludeloanforeclosures,shortsales,salestothirdpartiesatthetimeofforeclosureanddeeds-in-lieuofforeclosure.CumulativeDefaultRateisthetotalnumberofsingle-familyconventionalloansin

theguarantybookofbusinessoriginatedintheidentifiedyearthathavedefaulted,dividedbythetotalnumberofsingle-familyconventionalloansintheguarantybookofbusinessoriginatedintheidentified

year.For2007andearliercumulativedefaultrates,refertoslide18.

©2017FannieMae.TrademarksofFannieMae. 10

(1)

(2)

(3)

(4)

.

CreditCharacteristicsofSingle-FamilyConventionalGuarantyBookofBusinessbyOriginationYear

(1)

(1)

(2)

(2)

(3)

(4)

AsofDecember31,2016
CategoriesNotMutuallyExclusive

InterestOnly

Loans

Loanswith

FICO<620

LoanswithFICO≥

620and<660

Loanswith

OriginationLTV

Ratio>90%

LoanswithFICO

<620 and

OriginationLTV

Ratio>90%

Alt-ALoans

RefiPlus

IncludingHARP

UnpaidPrincipalBalance(UPB)($B)

ShareofSingle-FamilyConventionalGuarantyBook

AverageUnpaidPrincipalBalance

SeriousDelinquencyRate

AcquisitionYears2005-2008

WeightedAverageOriginationLTVRatio

OriginationLTVRatio>90%

WeightedAverageMark-to-MarketLTVRatio

Mark-to-MarketLTVRatio>100%and<=125%

Mark-to-MarketLTVRatio>125%

WeightedAverageFICOCreditScore

FICO<620

Fixed-rate

PrimaryResidence

Condo/Co-op

CreditEnhanced 11.9%

9.4%

84.3%

99.0%

5.5%

732

1.0%

4.3%

62.4%

39.1%

86.4%

0.0%

0.78%

$146,034

15.4%

$430.1

9.7%

9.6%

76.9%

66.5%

3.1%

710

3.1%

9.3%

69.4%

16.8%

78.9%

57.7%

4.99%

$144,277

3.1%

$86.8

51.8%

5.9%

94.0%

89.6%

100.0%

583

6.8%

16.6%

87.7%

100.0%

108.6%

29.1%

8.44%

$131,078

0.6%

$17.2

67.6%

9.6%

93.2%

96.7%

3.8%

730

1.8%

5.9%

82.5%

100.0%

102.7%

7.8%

1.98%

$172,113

16.4%

$457.8

30.3%

6.1%

93.2%

88.8%

0.0%

642

1.6%

4.7%

66.5%

22.6%

78.9%

25.6%

4.13%

$135,767

5.3%

$149.1

21.5%

4.7%

94.3%

84.8%

100.0%

583

2.8%

7.5%

68.4%

30.6%

82.0%

39.1%

7.03%

$116,029

2.0%

$56.4

13.6%

14.5%

85.8%

24.2%

1.6%

721

4.0%

12.6%

76.1%

8.4%

74.4%

82.0%

6.42%

$225,423

1.7%

$47.0

Loanswithmultipleproductfeaturesareincludedinallapplicablecategories.Thesubtotaliscalculatedbycountingaloanonlyonceevenifitisincludedinmultiplecategories.

FICOcreditscoreisasofloanorigination,asreportedbythesellerofthemortgageloan.

ForadescriptionofourAlt-Aloanclassificationcriteria,refertoFannieMae’s2016Form10-K.

OurRefiPlusinitiative,whichstartedinApril2009,includestheHomeAffordableRefinanceProgram(“HARP”).OurRefiPlusinitiativeprovidesexpandedrefinanceopportunitiesforeligibleFannieMae

borrowers,andmayinvolvetherefinanceofexistingFannieMaeloanswithhighloan-to-valueratios,includingloanswithloan-to-valueratiosinexcessof100%.

Excludesnon-FannieMaesecuritiesheldinportfolioandthoseAlt-AandsubprimewrapsforwhichFannieMaedoesnothaveloan-levelinformation.FannieMaehadaccesstodetailedloan-levelinformation

forapproximately99%ofitssingle-familyconventionalguarantybookofbusinessasofDecember31,2016.

Percentageofloansinoursingle-familyconventionalguarantybookofbusiness,measuredbyunpaidprincipalbalance,includedinanagreementusedtoreducecreditriskbyrequiringcollateral,lettersof

credit,mortgageinsurance,corporateguarantees,inclusioninacreditrisktransfertransactionreferencepool,orotheragreementthatprovidesforourcompensationtosomedegreeintheeventofafinancial

lossrelatingtotheloan.

©2017FannieMae.TrademarksofFannieMae. 11

Subtotalof

CertainProduct

Features

37.8%

8.7%

90.2%

91.3%

6.2%

718

1.2%

4.1%

69.3%

50.0%

86.1%

15.1%

2.29%

$150,657

32.7%

$914.8

CreditCharacteristicsofSingle-FamilyConventionalGuarantyBookofBusinessbyCertainProductFeatures

(1)

(2)

(3)

(4)

(5)

(6)

.

(1)

(2)

(3)

(2)

(2)

(4)

(5)

(5)

(6)

AsofDecember31,2016

(2)

(2)

(1)
Midwest

Northeast

Southeast

Southwest

West 5.1%

6.1%

21.1%

48.4%

19.3%

932

647

945

1,417

667

3,930

4,090

10,327

10,692

9,054

1,443

1,717

4,685

3,479

3,292

992

1,566

3,172

2,492

2,514

0.61%

0.82%

1.40%

2.20%

1.11%

10.9%

12.8%

27.7%

31.3%

17.4%

1.2%

0.9%

3.0%

2.5%

2.1%

53.5%

60.9%

63.7%

60.7%

64.7%

28.0%

17.0%

22.0%

18.2%

14.8%

$784.1

$474.8

$617.2

$509.0

$414.4

Regions

Basedontheunpaidprincipalbalance(UPB)ofthesingle-familyconventionalguarantybookofbusinessasofDecember31,2016.Excludesnon-FannieMaesecuritiesheldinportfolioandthoseAlt-Aand

subprimewrapsforwhichFannieMaedoesnothaveloan-levelinformation.FannieMaehadaccesstodetailedloan-levelinformationforapproximately99%ofitssingle-familyconventionalguarantybookof

businessasofDecember31,2016.

“Seriouslydelinquentloans”referstosingle-familyconventionalloansthatare90daysormorepastdueorintheforeclosureprocess.“Seriouslydelinquentloanshare”referstothepercentageofoursinglefamilyseriouslydelinquentloanpopulationintheapplicablestateorregion.“Seriousdelinquencyrate”referstothenumberofsingle-familyconventionalloansthatwereseriouslydelinquentintheapplicable

stateorregion,dividedbythenumberofloansinoursingle-familyconventionalguarantybookofbusinessinthatstateorregion.

Measuredfromtheborrowers’lastpaidinstallmentontheirmortgagestowhentherelatedpropertieswereaddedtoourREOinventoryforforeclosurescompletedin2016.HomeEquityConversionMortgages

(HECMs)insuredbyHUDareexcludedfromthiscalculation.

Expressedasapercentageofcreditlossesforthesingle-familyguarantybookofbusiness.Creditlossesconsistof(a)charge-offs,netofrecoveriesand(b)foreclosedpropertyexpense(income),adjustedto

excludetheimpactoffairvaluelossesresultingfromcredit-impairedloansacquiredfromMBStrusts.Forinformationontotalcreditlosses,refertoFannieMae’s2016Form10-K.

SelectstatesrepresentthetoptenstatesinUPBofthesingle-familyconventionalguarantybookofbusinessasofDecember31,2016.

Forinformationonwhichstatesareincludedineachregion,refertothesingle-familymortgagecreditriskmanagementdiscussioninFannieMae’s2016Form10-K.

©2017FannieMae.TrademarksofFannieMae. 12

CreditCharacteristicsofSingle-FamilyConventionalGuarantyBookofBusinessandSingle-FamilyRealEstate

Owned(REO)inSelectStates

SFConventionalGuarantyBookofBusiness

asofDecember31,2016

SeriouslyDelinquentLoans

asofDecember31,2016

RealEstateOwned(REO) CreditLoss

(1)

(2)

(3)

(4)

(5)

(6)

AllStates $2,799.5 100.0% 60.0% 1.9% 100.0% 1.20% 10,736 14,616 38,093 952 100.0%

UnpaidPrincipal

Balance(UPB)

($B)

Shareof

Single-Family

Conventional

GuarantyBook

Weighted

Average

Mark-to-Market

LTVRatio

Mark-to-Market

LTV>100%

Seriously

DelinquentLoan

Share

Serious

Delinquency

Rate

Q42016

Acquisitions

(#ofproperties)

Q42016

Dispositions

(#ofproperties)

REOEnding

Inventory

asof12/31/16

AverageDaysto

Foreclosure

%of2016Credit

Losses

California

Texas

Florida

NewYork

Illinois

NewJersey

Washington

Virginia

Pennsylvania

Massachusetts 2.0%

5.0%

1.7%

0.7%

16.5%

8.7%

18.3%

7.9%

0.7%

2.1%

1,296

911

549

1,058

1,770

873

1,777

1,394

707

643

1,052

1,666

885

699

3,545

2,868

2,200

3,766

880

1,575

342

678

359

278

1,117

970

661

2,092

333

601

196

527

278

146

783

619

395

1,159

335

485

1.39%

1.67%

0.81%

0.70%

3.07%

1.47%

2.65%

1.89%

0.70%

0.50%

2.8%

4.9%

2.0%

1.8%

8.0%

5.4%

9.9%

10.0%

4.0%

5.7%

0.6%

1.6%

1.6%

0.4%

5.0%

5.0%

2.1%

6.2%

0.1%

1.0%

56.6%

64.2%

62.9%

56.6%

64.7%

66.9%

55.3%

64.1%

59.2%

51.3%

2.9%

3.0%

3.5%

3.6%

3.8%

3.9%

5.2%

5.6%

6.1%

19.6%

$82.0

$83.9

$97.4

$99.9

$105.9

$108.4

$146.6

$156.9

$169.6

$548.6

(1) (2)

(3) (4)

(6)

SelectStates

(5) (2) (2)

Total
Based on states with the largest volume of seriously delinquent loans in our single-family conventional guaranty book of business as of December 31, 2016.

“Seriously delinquent loan share” refers to the percentage of our single-family seriously delinquent loan population in the applicable state.

Share of REO ending inventory calculated as the number of properties in the single-family REO ending inventory for the state divided by the total number of single-family properties in the REO ending inventory

for the specified time period.

2014

Q3

2014

Q4

2015

Q1

2015

Q2

2015

Q3

2015

Q4

2016

Q1

2016

Q2

2016

Q3

2016

Q4

0K

50K

100K

150K

200K

250K

300K

350K

SDQ Volume

0%

5%

10%

15%

20%

207K

341K

10.0%

9.7% 9.9%

8.0%

5.6%

5.4%

16.1%

10.0%

5.1%

5.7%

Seriously Delinquent Loan Share by Select States

California

Florida

Illinois

New Jersey

New York

SDQ Volume

2014

Q3

2014

Q4

2015

Q1

2015

Q2

2015

Q3

2015

Q4

2016

Q1

2016

Q2

2016

Q3

2016

Q4

0K

20K

40K

60K

80K

100K

REO Ending Inventory

0%

5%

10%

15%

20%

25%

38K

92K

5.8%

22.3%

4.1%

2.0%

3.0%

9.3%

10.8%

7.5%

9.9%

4.2%

REO Ending Inventory Share by Select States

California

Florida

Illinois

New Jersey

New York

REO Ending Inventory

(1)

(2)

(3)

.

Seriously Delinquent Loan and REO Ending Inventory Share by Select States

© 2017 Fannie Mae. Trademarks of Fannie Mae. 13

(1)

(2) (3)
Single-Family Short Sales and REO Sales Prices to Unpaid Principal Balance (UPB) of Mortgage Loans

2014

Q3

2014

Q4

2015

Q1

2015

Q2

2015

Q3

2015

Q4

2016

Q1

2016

Q2

2016

Q3

2016

Q4

60%

70%

80%

90%

68.6%

69.8%

72.4% 72.6% 73.1%

75.0% 73.9% 73.6% 72.5%

69.3%

75.2%

76.3%

79.3% 79.9%

81.9% 80.9% 80.3%

79.3% 79.7%

75.9%

REO Direct Sale Dispositions: Sales Prices to UPB

Net Sales Prices to UPB Trends for Top 10 States

REO Gross Sales/UPB REO Net Sales/UPB

2014

Q3

2014

Q4

2015

Q1

2015

Q2

2015

Q3

2015

Q4

2016

Q1

2016

Q2

2016

Q3

2016

Q4

60%

70%

80%

90%

72.2% 72.6%

73.8% 73.5% 73.3% 73.6% 74.6% 73.7%

72.2%

74.1%

80.4% 80.7% 82.0% 81.7%

83.2%

82.0% 82.4%

80.4%

82.7% 82.4%

Short Sales: Sales Prices to UPB

Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016

Florida

Illinois

New Jersey

Ohio

Pennsylvania

Michigan

Maryland

New York

California

Georgia 79.1%

87.2%

66.9%

70.4%

60.9%

64.9%

58.1%

63.0%

63.3%

79.7%

79.0%

88.1%

68.2%

69.3%

62.7%

65.0%

59.2%

59.9%

64.3%

80.1%

81.3%

86.6%

64.5%

73.8%

65.7%

66.6%

62.4%

61.0%

63.2%

79.5%

79.4%

82.6%

61.4%

71.4%

66.0%

61.0%

62.6%

59.6%

63.9%

78.3%

78.0%

84.3%

67.8%

69.5%

66.8%

62.8%

62.9%

58.5%

60.9%

77.5%

Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016

Florida

Illinois

New Jersey

California

New York

Maryland

Nevada

Arizona

Pennsylvania

Virginia 78.2%

73.7%

79.4%

73.3%

73.0%

74.8%

81.4%

65.1%

69.1%

73.4%

78.6%

75.3%

79.0%

74.3%

70.8%

72.9%

80.8%

65.8%

70.9%

73.1%

80.3%

73.6%

79.1%

74.4%

70.8%

71.6%

81.2%

64.9%

65.8%

71.8%

77.5%

75.1%

74.8%

71.2%

71.2%

72.1%

79.4%

66.0%

66.1%

73.9%

77.2%

72.1%

78.8%

69.5%

69.1%

74.1%

81.3%

66.6%

66.3%

72.3%

Short Sales Gross Sales/UPB Short Sales Net Sales/UPB

Includes REO properties that have been sold to a third party (excluding properties that have been repurchased by the seller/servicer, acquired by a mortgage insurance company, or redeemed by a borrower).

Sales Prices to UPB are calculated as the sum of sales proceeds received divided by the aggregate unpaid principal balance (UPB) of the related loans. Gross sales price represents the contract sale price. Net

sales price represents the contract sale price less charges/credits paid by or due to the seller or other parties at closing.

The states shown had the greatest volume of properties sold in 2016 in each respective category.

© 2017 Fannie Mae. Trademarks of Fannie Mae. 14

(1)

(2)

(3)

(1) (2) (2)

(2)(3)

REO Net Sales

Prices to UPB

Short Sales

Net Sales

Prices to UPB
Foreclosure Alternatives

Consists of (a) modifications, which do not include trial modifications, loans to certain borrowers who have received bankruptcy relief that are accounted for as troubled debt restructurings, or repayment plans

or forbearances that have been initiated but not completed and (b) repayment plans and forbearances completed.

Consists of (a) short sales, in which the borrower, working with the servicer and Fannie Mae, sells the home prior to foreclosure for less than the amount owed to pay off the loan, accrued interest and other

expenses from the sale proceeds and (b) deeds-in-lieu of foreclosure, which involve the borrower’s voluntarily signing over title to the property.

2014

Q3

2014

Q4

2015

Q1

2015

Q2

2015

Q3

2015

Q4

2016

Q1

2016

Q2

2016

Q3

2016

Q4

0K

5K

10K

15K

20K

25K

30K

35K

# of Loans

3K

2K

2K 2K 2K

5K

2K 2K 2K 1K 1K

4K 4K 4K 4K 3K 3K 3K 3K 2K

8K

7K

6K 6K 6K

5K 5K 4K 4K 4K

© 2017 Fannie Mae. Trademarks of Fannie Mae. 15

Short Sales

Deeds-in-Lieu

2014

Q3

2014

Q4

2015

Q1

2015

Q2

2015

Q3

2015

Q4

2016

Q1

2016

Q2

2016

Q3

2016

Q4

0K

5K

10K

15K

20K

25K

30K

35K

# of Loans

17K

21K 21K 21K

19K

22K

26K 27K 26K

29K

2K

2K 2K 1K

1K

1K

2K 2K

2K

2K

31K

28K

29K

28K

24K

20K

22K 23K 22K

19K

Modifications

Repayment Plans and Forbearances Completed

(1)

(2)

.

Home Retention Solutions

Single-Family Loan Workouts

(1) (2)
Modifications reflect permanent modifications which does not include loans currently in trial modifications.

Defined as total number of completed modifications for the time periods noted.

2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3

Modifications 36,044 32,010 28,861 25,908 26,700 26,214 22,199 19,099 20,899 21,278 20,802

Re-performance Rates of Modified Single-Family Loans

© 2017 Fannie Mae. Trademarks of Fannie Mae. 16

(1)

(2)

3 Months Post Modification

6 Months Post Modification

9 Months Post Modification

12 Months Post Modification

15 Months Post Modification

18 Months Post Modification

21 Months Post Modification

24 Months Post Modification n/a

n/a

n/a

n/a

n/a

n/a

n/a

75%

n/a

n/a

n/a

n/a

n/a

n/a

68%

77%

n/a

n/a

n/a

n/a

n/a

65%

70%

79%

n/a

n/a

n/a

n/a

64%

67%

72%

78%

n/a

n/a

n/a

62%

64%

67%

69%

76%

n/a

n/a

64%

64%

67%

67%

69%

77%

n/a

65%

65%

66%

67%

68%

72%

79%

67%

66%

67%

66%

67%

70%

74%

80%

68%

68%

67%

67%

69%

71%

74%

79%

69%

68%

66%

67%

70%

71%

72%

79%

70%

69%

70%

71%

72%

72%

76%

83%

% Current or Paid Off

(1)

(2)
Based on the unpaid principal balance (UPB) of the single-family conventional guaranty book of business as of December 31 for the time periods noted.

Based on the single-family credit losses for the year ended December 31 for the time periods noted. Credit losses consist of (a) charge-offs, net of recoveries and (b) foreclosed property expense (income), adjusted to exclude

the impact of fair value losses resulting from credit-impaired loans acquired from MBS trusts. Does not reflect the impact of recoveries that have not been allocated to specific loans. Negative values are the result of recoveries

on previously recognized credit losses. Beginning in 2015, includes the impact of credit losses associated with our redesignation from held for investment to held for sale of certain nonperforming single-family loans expected to

be sold in the foreseeable future. Also, 2015 credit losses include the impact of our approach to adopting the charge-off provisions of the Federal Housing Finance Agency’s Advisory Bulletin AB 2012-02, “Framework for

Adversely Classifying Loans, Other Real Estate Owned, and Other Assets and Listing Assets for Special Mention” on January 1, 2015.

Loans with multiple product features are included in all applicable categories. Categories are not mutually exclusive.

FICO credit score is as of loan origination, as reported by the seller of the mortgage loan.

Newly originated Alt-A loans acquired after 2008 consist of the refinance of existing loans under our Refi Plus Initiative. For a description of our Alt-A loan classification criteria, refer to Fannie Mae’s 2016 Form 10-K.

For a description of our subprime loan classification criteria, refer to Fannie Mae’s 2016 Form 10-K.

Select states represent the top ten states with the highest percentage of single-family credit losses for the year ended December 31, 2016.

© 2017 Fannie Mae. Trademarks of Fannie Mae. 17

Credit Loss Concentration of Single-Family Conventional Guaranty Book of Business

(1)

(2)

(3)

(4)

(5)

(6)

(7)

New York

New Jersey

Illinois

Florida

Pennsylvania

Ohio

Maryland

Connecticut

Michigan

California

All Other States 48.9%

18.7%

2.5%

1.4%

2.9%

2.3%

3.0%

6.3%

4.3%

4.0%

5.6%

49.2%

19.0%

2.5%

1.4%

2.8%

2.2%

3.1%

6.0%

4.2%

4.0%

5.6%

49.3%

19.6%

2.4%

1.4%

2.8%

2.1%

3.1%

5.7%

4.1%

4.0%

5.6%

49.6%

19.6%

2.4%

1.3%

2.7%

2.1%

3.0%

5.6%

4.1%

4.0%

5.5%

50.0%

19.7%

2.4%

1.3%

2.7%

2.0%

3.0%

5.6%

4.0%

3.9%

5.4%

50.6%

19.6%

2.4%

1.3%

2.7%

2.0%

3.0%

5.6%

3.9%

3.8%

5.2%

47.4%

27.0%

5.8%

0.3%

0.6%

2.1%

0.8%

11.0%

3.5%

0.8%

0.6%

35.8%

18.4%

4.5%

0.9%

1.8%

3.3%

1.6%

21.4%

9.6%

2.0%

0.9%

32.7%

5.1%

3.2%

1.4%

3.1%

4.1%

3.0%

28.9%

12.9%

3.7%

1.9%

26.4%

-0.8%

1.7%

2.8%

5.9%

4.2%

4.2%

32.6%

10.9%

7.2%

4.8%

19.0%

1.4%

1.5%

2.3%

3.8%

2.2%

3.4%

20.8%

7.8%

21.6%

16.4%

28.3%

2.1%

2.3%

2.7%

3.9%

4.3%

5.0%

7.9%

8.7%

16.5%

18.3%

Select State

% of Single-Family Conventional Guaranty Book of Business

2016 2015 2014 2013 2012 2011

% of Single-Family Credit Losses

2016 2015 2014 2013 2012 2011

Negative Amortizing

Interest Only

FICO < 620

FICO 620 to < 660

Origination LTV Ratio > 90%

FICO < 620 and Origination LTV Ratio > 90%

Alt-A

Subprime

Refi Plus including HARP 11.2%

0.2%

6.6%

0.7%

10.0%

6.7%

3.2%

4.7%

0.3%

16.5%

0.2%

5.6%

0.7%

12.8%

6.0%

2.9%

3.7%

0.3%

19.5%

0.1%

4.7%

0.7%

15.1%

5.5%

2.6%

2.9%

0.2%

19.1%

0.1%

4.2%

0.7%

15.9%

5.5%

2.5%

2.5%

0.2%

17.6%

0.1%

3.7%

0.7%

16.3%

5.5%

2.3%

2.1%

0.1%

15.4%

0.1%

3.1%

0.6%

16.4%

5.3%

2.0%

1.7%

0.1%

1.4%

0.6%

27.3%

2.2%

14.0%

14.7%

7.9%

25.8%

1.2%

3.5%

1.1%

23.7%

2.3%

16.8%

14.2%

7.8%

21.8%

0.5%

7.4%

-0.2%

26.0%

2.0%

20.8%

15.7%

7.0%

18.7%

0.8%

10.4%

1.3%

17.4%

2.9%

15.3%

17.6%

12.1%

10.2%

0.9%

7.8%

1.6%

29.3%

2.7%

16.4%

18.3%

11.1%

18.0%

1.2%

14.0%

1.3%

24.9%

3.9%

21.9%

21.3%

14.5%

12.2%

0.3%

2009 - 2016

2005 - 2008

2004 & Prior 18.0%

30.4%

51.6%

13.1%

21.7%

65.3%

9.1%

14.7%

76.2%

7.3%

12.2%

80.5%

5.8%

10.1%

84.1%

4.5%

8.1%

87.4%

14.8%

82.9%

2.4%

13.1%

81.8%

5.1%

12.4%

77.6%

10.0%

12.0%

74.7%

13.3%

12.1%

77.6%

10.3%

16.4%

64.7%

19.0%

Vintage

(1) (2)

(3)

(4)

(4)

(4)

(5)

(6)

(7)

Certain Product Features
© 2017 Fannie Mae. Trademarks of Fannie Mae. 18

Note: Defaults include loan foreclosures, short sales, sales to third parties at the time of foreclosure and deeds-in-lieu of foreclosure. Cumulative Default Rate is the total number of single-family conventional loans in

the guaranty book of business originated in the identified year that have defaulted, divided by the total number of single-family conventional loans in the guaranty book of business originated in the identified year.

Data as of December 31, 2016 is not necessarily indicative of the ultimate performance of the loans and performance is likely to change, perhaps materially, in future periods. Yr1-Q1 Yr1-Q2 Yr1-Q3 Yr1-Q4 Yr2-Q1 Yr2-Q2 Yr2-Q3 Yr2-Q4 Yr3-Q1 Yr3-Q2 Yr3-Q3 Yr3-Q4 Yr4-Q1 Yr4-Q2 Yr4-Q3 Yr4-Q4 Yr5-Q1 Yr5-Q2 Yr5-Q3 Yr5-Q4 Yr6-Q1 Yr6-Q2 Yr6-Q3 Yr6-Q4 Yr7-Q1 Yr7-Q2 Yr7-Q3 Yr7-Q4 Yr8-Q1 Yr8-Q2 Yr8-Q3 Yr8-Q4 Yr9-Q1 Yr9-Q2 Yr9-Q3

Yr9-Q4

Yr10-Q1

Yr10-Q2

Yr10-Q3

Yr10-Q4

Yr11-Q1

Yr11-Q2

Yr11-Q3

Yr11-Q4

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

Cumulative Default Rate

2007

2006

2005

2008

2004

2003

2002

2013 2012 2011 2010 2009 2015 2014 2016

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Cumulative Default Rates of Single-Family Conventional Guaranty Book of Business by Origination Year

Time Since Beginning of Origination Year
Loan Count UPB ($B)

% of Multifamily

Guaranty Book of

Business

% DUS ® Loans % Seriously

Delinquent

2016 Multifamily

Credit Losses ($M)

2015 Multifamily

Credit Losses ($M)

2014 Multifamily

Credit Losses ($M)

Total Multifamily Guaranty Book of Business 29,044 $242.8 100% 97% 0.05% ($4) ($56) ($46)

Multifamily Credit Profile by Loan Attributes

Loans maturing in 2017

Loans maturing in 2018

Loans maturing in 2019

Loans maturing in 2020

Loans maturing in 2021

Other maturities ($26)

$0

$2

$1

($4)

($19)

($40)

$2

($1)

($2)

$0

($15)

($9)

$1

$5

$0

$4

($3)

0.03%

0.02%

0.16%

0.31%

0.02%

0.10%

97%

97%

97%

98%

96%

71%

72%

8%

6%

7%

5%

3%

$174.8

$18.3

$15.5

$16.4

$11.3

$6.6

18,456

2,498

2,425

2,100

2,025

1,540

Maturity Dates

Less than or equal to 70%

Greater than 70% and less than or equal to 80%

Greater than 80% $3

($38)

($11)

$2

($34)

($24)

$0

$3

($7)

0.22%

0.05%

0.05%

93%

99%

95%

2%

44%

54%

$4.9

$107.6

$130.3

1,336

9,738

17,970

Origination LTV Ratio

Less than or equal to $750K

Greater than $750K and less than or equal to $3M

Greater than $3M and less than or equal to $5M

Greater than $5M and less than or equal to $25M

Greater than $25M ($9)

($53)

($9)

$19

$5

($15)

($60)

$9

$9

$1

$0

($15)

$6

$5

$0

0.03%

0.04%

0.13%

0.25%

0.16%

98%

98%

92%

82%

23%

48%

40%

6%

6%

1%

$115.6

$98.2

$14.3

$13.4

$1.3

2,259

9,124

3,928

8,613

5,120

Loan Size Distribution

(1)

(2)

(3)

(4)

(5)

(6)

Represents the percentage of loans for a given category (row) comprised of DUS loans, measured by unpaid principal balance.

Multifamily loans are classified as seriously delinquent when payment is 60 days or more past due.

Dollar amount of multifamily credit-related losses/(gains) for the applicable period and category. Total credit losses for each period may not tie to sum of all categories due to rounding. The 2014 and 2015 multifamily credit losses for Fixed and

Variable interest rate type loans have been corrected from the amounts previously reported.

Weighted average origination loan-to-value ratio is 67% as of December 31, 2016.

Under the Delegated Underwriting and Servicing, or DUS, program, Fannie Mae acquires individual, newly originated mortgages from specially approved DUS lenders using DUS underwriting standards and/or DUS loan documents. Because DUS

lenders generally share the risk of loss with Fannie Mae, they are able to originate, underwrite, close and service most loans without our pre-review.

Multifamily loans with an original unpaid balance of up to $3 million nationwide or up to $5 million in high cost markets.

DUS - Small Balance Loans

DUS - Non Small Balance Loans

Total ($57)

($67)

$11

($54)

($57)

$3

($3)

($6)

$2

0.05%

0.04%

0.18%

100%

100%

100%

97%

91%

6%

$234.5

$220.8

$13.7

21,940

14,534

7,406

Delegated Underwriting and Servicing (DUS) Loans

Non-DUS - Small Balance Loans

Non-DUS - Non Small Balance Loans

Total $11

$0

$11

($2)

($5)

$2

($1)

($2)

$1

0.21%

0.19%

0.22%

0%

0%

0%

3%

2%

2%

$8.2

$3.9

$4.3

7,104

307

6,797

Non-Delegated Underwriting and Servicing (Non-DUS) Loans

Lender Risk-Sharing

No Recourse to the Lender ($20)

($26)

($32)

($24)

($14)

$10

0.07%

0.05%

70%

98%

6%

94%

$15.2

$227.6

2,197

26,847

Lender Risk-Sharing

Fixed

Variable $2

($49)

($22)

($34)

$2

($6)

0.03%

0.06%

97%

97%

20%

80%

$48.4

$194.4

7,004

22,040

Interest Rate Type

© 2017 Fannie Mae. Trademarks of Fannie Mae. 19

(1) (3) (3)

(4)

(5)

(6)

(6)

(2) (3)

As of December 31, 2016
UPB ($B)

% of Multifamily

Guaranty Book of

Business

% DUS Loans % Seriously

Delinquent

2016 Multifamily

Credit Losses ($M)

2015 Multifamily

Credit Losses ($M)

2014 Multifamily

Credit Losses ($M)

Total Multifamily Guaranty Book of Business $242.8 100% 97% 0.05% ($4) ($56) ($46)

Multifamily Credit Profile by Loan Attributes (cont.)

California

Texas

New York

Florida

Washington $0

($8)

$2

($33)

($2)

$1

($3)

$1

($6)

$0

$0

$0

$0

($5)

$0

0.00%

0.00%

0.02%

0.17%

0.02%

99%

99%

83%

100%

95%

4%

7%

10%

12%

20%

$9.3

$17.2

$23.9

$28.6

$49.7

Select States

Privately Owned with Subsidy $31.4 13% 96% 0.05% $2 ($4) ($4)

Targeted Affordable Segment

DUS: Bank (Direct, Owned Entity, or Subsidiary)

DUS: Non-Bank Financial Institution

Non-DUS: Bank (Direct, Owned Entity, or Subsidiary)

Non-DUS: Non-Bank Financial Institution

Non-DUS: Public Agency/Non Profit $0

$6

$2

($25)

($28)

$0

$0

$0

($12)

($45)

$0

($2)

$0

($5)

$3

0.00%

0.00%

0.37%

0.07%

0.02%

0%

0%

0%

100%

97%

0%

0%

2%

57%

41%

$0.1

$0.4

$4.0

$138.8

$99.6

DUS & Non-DUS Lenders/Servicers

Represents the percentage of loans for a given category (row) comprised of DUS loans, measured by unpaid principal balance.

Multifamily loans are classified as seriously delinquent when payment is 60 days or more past due.

Dollar amount of multifamily credit-related losses/(gains) for the applicable period and category. Total credit losses for each period will not tie to sum of all categories due to rounding.

The Multifamily Affordable Business Channel focuses on financing properties that are under an agreement that provides long-term affordability, such as properties with rent subsidies or income restrictions.

See https://www.fanniemae.com/multifamily/products for definitions.

© 2017 Fannie Mae. Trademarks of Fannie Mae. 20

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

Prior to 2007 ($25)

($17)

($4)

($3)

$2

$0

$0

$0

$0

$0

$0

($24)

($17)

($20)

$4

($1)

$2

$0

$0

$0

$0

$0

($7)

($3)

($1)

$0

$3

$0

$2

$0

$0

$0

$0

0.13%

0.26%

0.05%

0.07%

0.14%

0.03%

0.17%

0.03%

0.01%

0.01%

0.00%

95%

63%

93%

97%

96%

96%

97%

98%

99%

99%

99%

7%

3%

4%

4%

5%

7%

10%

10%

11%

17%

23%

$16.2

$7.9

$8.7

$10.8

$11.5

$16.5

$25.5

$23.3

$26.2

$41.0

$55.2

By Acquisition Year

Midwest

Northeast

Southeast

Southwest

West ($4)

($21)

($22)

$4

($3)

($31)

($11)

($19)

$4

$1

($7)

($7)

$6

$1

$3

0.02%

0.11%

0.03%

0.04%

0.13%

96%

99%

99%

89%

98%

28%

22%

25%

16%

9%

$67.6

$54.1

$60.4

$39.4

$21.2

Regions

Conventional/Co-op

Seniors Housing

Manufactured Housing

Student Housing ($4)

($2)

($3)

($37)

($7)

$0

$7

($56)

($5)

$0

$2

($1)

0.00%

0.00%

0.00%

0.06%

100%

100%

98%

96%

3%

3%

5%

89%

$6.7

$8.5

$12.5

$215.1

Asset Class

(1)

(2)

(3)

(4)

(5)

(2) (3) (3)

(4)

(3) (1) As of December 31, 2016

(5)
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

Serious Delinquency Rate

0.44%

0.55%

0.34%

0.15%

0.09%

1.36%

1.20%

0.24%

0.30%

0.71%

0.18%

0.21%

0.56%

0.24% 0.21%

0.63%

0.50%

0.10%

0.08%

0.08%

0.59%

0.07%

0.07% 0.06% 0.05%

0.09%

0.05%

0.92%

0.04% 0.05%

0.39%

0.05%

Multifamily Total Serious Delinquency Rate DUS Serious Delinquency Rate Non-DUS Serious Delinquency Rate

Serious Delinquency Rates of Multifamily Book of Business

Multifamily loans are classified as seriously delinquent when payment is 60 days or more past due. Serious delinquency rate represents the year-end percentage of unpaid principal balance that is seriously

delinquent as of December 31 for the time periods noted.

Under the Delegated Underwriting and Servicing, or DUS, program, Fannie Mae acquires individual, newly originated mortgages from specially approved DUS lenders using DUS underwriting standards and/or

DUS loan documents. Because DUS lenders generally share the risk of loss with Fannie Mae, they are able to originate, underwrite, close and service most loans without our pre-review.

© 2017 Fannie Mae. Trademarks of Fannie Mae. 21

(1)

(2)

.

(1)

(2)
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

0

20

40

60

UPB ($B)

$20 $19

$33

$19

$24 $22

$46

$34

$19

$17

$24

$33

$29 $29

$42

$55

DUS/Non-DUS Acquisition Unpaid Principal Balance ($B)

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

0.0%

0.5%

1.0%

1.5%

2.0%

Credit Loss Rate

0.3%

0.2%

0.3%

0.2%

0.0%

0.1%

0.2%

0.0%

0.1%

0.4%

0.0%

0.3%

0.5%

0.0%

0.3%

0.9%

0.2%

0.7%

1.3%

0.9%

1.1%

0.8%

1.4%

1.0%

0.3%

0.1%

0.2%

0.1%

0.0%

0.1%

0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

DUS/Non-DUS Cumulative Credit Loss Rates through December 31, 2016

DUS Credit Loss Rate Non-DUS Credit Loss Rate Multifamily Total Credit Loss Rate

Cumulative Credit Loss Rates of Multifamily Guaranty Book of Business by Acquisition Year

DUS Non-DUS

Acquisition Year

Cumulative credit loss rate is the cumulative credit losses (gains) through December 31, 2016 on the multifamily loans that were acquired in the applicable period, as a percentage of the total acquired unpaid

principal balance of multifamily loans in the applicable period.

Acquisition unpaid principal balance represents the total Multifamily volume acquired through purchase or securitization transactions for the applicable period.

© 2017 Fannie Mae. Trademarks of Fannie Mae. 22

(1)

(2)

(1)

(2)