August 08, 2013

Fannie Mae

2013 Second Quarter Credit Supplement
1

 This presentation includes information about Fannie Mae, including information 

contained in Fannie Mae’s Quarterly Report on Form 10-Q for the quarter ended 

June 30, 2013, the “2013 Q2 Form 10-Q.” Some of the terms used in these 

materials are defined and discussed more fully in the 2013 Q2 Form 10-Q and in 

the Fannie Mae’s Form 10-K for the year ended December 31, 2012, the “2012 

Form 10-K.” These materials should be reviewed together with the 2013 Q2 Form 

10-Q, and the 2012 Form 10-K, copies of which are available on the “SEC Filings” 

page in the “Investor Relations” section of Fannie Mae’s web site at 

www.fanniemae.com. 

 Some of the information in this presentation is based upon information that we 

received from third-party sources such as sellers and servicers of mortgage 

loans. Although we generally consider this information reliable, we do not 

independently verify all reported information. 

 Due to rounding, amounts reported in this presentation may not add to totals 

indicated (or 100%). A zero indicates less than one half of one percent. A dash 

indicates a null value.

 Unless otherwise indicated data labeled as “YTD 2013” is as of June 30, 2013 or 

for the first six months of 2013.
2

Home Prices

Home Price Growth/Decline Rates in the U.S. 3

One Year Home Price Change as of 2013 Q2 4

Home Price Change Peak-to-Current as of 2013 Q2 5

Credit Profile of Fannie Mae Single-Family Loans

Credit Characteristics of Single-Family Business Acquisitions 6

Credit Characteristics of Single-Family Business Acquisitions under the Refi PlusTM Initiative 7

Credit Characteristics of Single-Family Conventional Guaranty Book of Business by Key Product Features 8

Credit Characteristics of Single-Family Conventional Guaranty Book of Business by Origination Year 9

Credit Characteristics of Single-Family Conventional Guaranty Book of Business by Select States 10

Credit Characteristics of Alt-A Loans in the Single-Family Conventional Guaranty Book of Business 11

Credit Characteristics of Refi Plus Loans in the Single-Family Conventional Guaranty Book of Business 12

Serious Delinquency Rates by Select States and Region of Single-Family Conventional Guaranty Book of Business 13

Workouts of Fannie Mae Single-Family Loans

Single-Family Completed Workouts by Type 14

Re-performance Rates of Modified Single-Family Loans 15

Additional Credit Information for Fannie Mae Single-Family Loans

Cumulative Default Rates of Single-Family Conventional Guaranty Book of Business by Origination Year 16

Single-Family Real Estate Owned (REO) in Select States 17

Single-Family Short Sales and REO Sales Price / UPB of Mortgage Loans 18

Credit Profile of Fannie Mae Multifamily Loans

Multifamily Credit Profile by Loan Attributes 19

Multifamily Credit Profile by Acquisition Year 20

Multifamily Credit Profile 21

Multifamily YTD 2013 Credit Losses by State 22

Table of Contents
3

7.5% 7.6%

10.6%

11.4%

2.8%

-3.4%

-9.1%

-4.8% -4.3%

-3.7%

4.3%

5.9%

-15%

-10%

-5%

0%

5%

10%

15%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

10.6% 10.7% 14.6% 14.7% -0.3% -8.4% -18.4% -2.5% -3.8% -3.7% 7.3% 1.2%**

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

Fannie Mae Home Price Index

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

*Year-to-date as of Q2-2013. Estimate based on purchase transactions in Fannie-Freddie acquisition and public deed data available through the 

end of June 2013. Including subsequent data may lead to materially different results. 

**Year-to-date as of Q1-2013. As comparison, Fannie Mae’s index for the same period is 1.8%.

S&P/Case-Shiller Index

*

Based on our home price index, we estimate that home prices on a national basis increased by 5.9% in the first half of 2013 and 

by 7.4% from the second quarter of 2012 to the second quarter of 2013. Despite the recent increases in home prices, we 

estimate that, through the second quarter of 2013, home prices on a national basis remained 15.6% below their peak in the third 

quarter of 2006.
4

T X

4 . 7 %

5 . 3 %

M T

5 . 3 %

0 . 3 %

N M

2 . 1 %

0 . 5 %

C O

8 . 5 %

2 . 6 %

W Y

3 . 2 %

0 . 2 %

M N

7 . 1 %

1 . 9 %

K S

2 . 6 %

0 . 5 %

N E

2 . 5 %

0 . 4 %

S D

3 . 1 %

0 . 2 %

N D

8 . 5 %

0 . 1 %

O K

3 . 4 %

0 . 6 %

M O

2 . 2 %

1 . 4 %

W A

8 . 2 %

3 . 5 %

I L

3 . 6 %

4 . 2 %

I A

3 . 3 %

0 . 7 %

W I

3 . 0 %

1 . 8 %

A R

2 . 9 %

0 . 5 %

A L

1 . 6 %

1 . 0 %

N C

2 . 6 %

2 . 5 %

M S

2 . 7 %

0 . 4 %

N Y

3 . 0 %

5 . 6 %

L A

2 . 6 %

0 . 9 %

P A

2 . 5 %

3 . 1 %

T N

3 . 0 %

1 . 3 %

O H

3 . 9 %

2 . 2 %

K Y

2 . 9 %

0 . 6 %

V A

5 . 2 %

3 . 5 %

I N

3 . 3 %

1 . 2 %

M E

2 . 4 %

0 . 3 %

S C

3 . 2 %

1 . 2 %

W V

2 . 1 %

0 . 2 %

M D

5 . 2 %

2 . 8 %

V T

1 . 8 %

0 . 2 %

N H

2 . 7 %

0 . 5 %

M A

5 . 3 %

3 . 1 %

N J

3 . 4 %

4 . 0 %

C T

1 . 9 %

1 . 4 %

D E

1 . 4 %

0 . 4 %

C A

2 1 . 6 %

1 9 . 3 %

A Z

2 2 . 1 %

2 . 4 %

N V

2 7 . 7 %

1 . 0 %

O R

1 0 . 1 %

1 . 7 %

U T

1 0 . 9 %

1 . 0 %

I D

1 0 . 5 %

0 . 5 %

G A

1 1 . 6 %

2 . 7 %

M I

1 0 . 5 %

2 . 4 %

F L

1 3 . 7 %

5 . 8 %

R I

2 . 8 %

0 . 4 %

D C

1 4 . 4 %

0 . 4 %

H I

1 1 . 0 %

0 . 8 %

A K

2 . 2 %

0 . 2 %

0% to 5%

5% to 10%

10% and above

State Growth Rate

One Year Home Price Change as of 2013 Q2*

United States 7.4%

*Source: Fannie Mae. Estimates based on purchase transactions in Fannie-Freddie acquisition and public deed data available through the end of June 2013. Including 

subsequent data may lead to materially different results

State 

Growth Rate

UPB %
5

D C

0 .0 %

0 .4 %

R I

- 3 1 . 0 %

0 . 4 %

T X

0 . 0 %

5 . 3 %

M T

- 4 . 0 %

0 . 3 %

C O

- 0 . 9 %

2 . 6 %

N M

- 1 4 . 1 %

0 . 5 %

W Y

- 2 . 0 %

0 . 2 %

S D

0 . 0 %

0 . 2 %

N D

0 . 0 %

0 . 1 %

O K

0 . 0 %

0 . 6 %

K S

- 0 . 8 %

0 . 5 %

N E

- 2 . 3 %

0 . 4 %

M O

- 8 . 8 %

1 . 4 %

U T

- 1 2 . 6 %

1 . 0 %

I A

0 . 0 %

0 . 7 %

L A

0 . 0 %

0 . 9 %

A R

- 2 . 7 %

0 . 5 %

A L

- 9 . 3 %

1 . 0 %

N C

- 9 . 1 %

2 . 5 %

M S

- 6 . 8 %

0 . 4 %

N Y

- 9 . 9 %

5 . 6 %

W I

- 1 0 . 1 %

1 . 8 %

P A

- 5 . 1 %

3 . 1 %

T N

- 6 . 4 %

1 . 3 %

K Y

- 0 . 5 %

0 . 6 %

I N

- 2 . 6 %

1 . 2 %

O H

- 1 0 . 0 %

2 . 2 %

S C

- 1 1 . 2 %

1 . 2 %

M E

- 1 1 . 6 %

0 . 3 %

W V

- 0 . 9 %

0 . 2 %

V T

- 8 . 2 %

0 . 2 %

M D

- 2 4 . 4 %

2 . 8 %

N H

- 2 0 . 3 %

0 . 5 %

M A

- 1 4 . 8 %

3 . 1 %

N J

- 2 4 . 4 %

4 . 0 %

C T

- 1 9 . 5 %

1 . 4 %

D E

- 2 0 . 3 %

0 . 4 %

C A

- 3 4 . 0 %

1 9 . 3 %

A Z

- 3 7 . 0 %

2 . 4 %

N V

- 4 9 . 7 %

1 . 0 %

O R

- 1 9 . 9 %

1 . 7 %

M N

- 1 5 . 6 %

1 . 9 % I D

- 1 9 . 5 %

0 . 5 %

W A

- 2 0 . 3 %

3 . 5 %

G A

- 2 1 . 5 %

2 . 7 %

I L

- 2 1 . 8 %

4 . 2 %

M I

- 2 4 . 2 %

2 . 4 %

V A

- 1 5 . 5 %

3 . 5 %

F L

- 4 2 . 6 %

5 . 8 %

H I

- 1 3 . 9 %

0 . 8 %

A K

0 . 0 %

0 . 2 %

Home Price Change Peak-to-Current as of 2013 Q2*

United States -15.6%

*Source: Fannie Mae. Estimates based on purchase transactions in Fannie-Freddie acquisition and public deed data available through the end of June 2013. Including 

subsequent data may lead to materially different results.

State 

Growth Rate 

UPB %

Below -30%

-30% to -15%

-15% to -5%

-5% to 0%

0%

State Growth Rate

Note: Date of peak is determined for each state individually. States currently at peak prices show 0.0% change.
6

Acquisition Year YTD 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

Unpaid Principal Balance (billions) $429.7 $832.2 $562.3 $595.0 $684.7 $557.2 $643.8 $515.8 $524.2 $568.8

Weighted Average Origination Note Rate 3.55% 3.78% 4.35% 4.64% 4.93% 6.00% 6.51% 6.45% 5.73% 5.63%

Origination Loan-to-Value Ratio

 <= 60% 24.3% 25.3% 29.1% 30.3% 32.6% 22.7% 16.7% 18.6% 21.4% 23.1%

 >60% and <= 70% 14.8% 14.4% 15.5% 15.9% 17.0% 16.1% 13.5% 15.1% 16.3% 16.2%

 >70% and <= 80% 33.5% 34.4% 37.3% 38.5% 39.9% 39.5% 44.7% 49.6% 46.2% 43.1%

 >80% and <= 90% 9.7% 9.1% 8.9% 8.6% 6.9% 11.7% 9.1% 6.8% 7.4% 8.2%

 >90% and <= 100% (2) 9.4% 8.4% 6.8% 5.2% 3.3% 10.0% 15.8% 9.7% 8.5% 9.3%

 > 100% (2) 8.3% 8.3% 2.3% 1.6% 0.4% 0.1% 0.1% 0.2% 0.2% 0.2%

Weighted Average Origination Loan-to-Value Ratio 74.9% 74.5% 69.3% 68.4% 66.8% 72.0% 75.5% 73.4% 72.0% 71.4%

Weighted Average Origination Loan-to-Value Ratio Excluding HARP (3) 68.4% 67.8% 66.6% 65.8% 65.8%

FICO Credit Scores (4)

 0 to < 620 1.3% 0.8% 0.5% 0.4% 0.4% 2.8% 6.4% 6.2% 5.4% 5.6%

 >= 620 and < 660 3.0% 2.2% 1.8% 1.6% 1.5% 5.7% 11.5% 11.2% 10.7% 11.5%

 >=660 and < 700 8.6% 7.2% 7.0% 6.6% 6.5% 13.9% 19.2% 19.6% 18.9% 19.4%

 >=700 and < 740 17.1% 15.6% 16.2% 16.1% 17.2% 21.7% 22.6% 23.0% 23.2% 23.9%

 >=740 70.1% 74.1% 74.5% 75.1% 74.4% 55.8% 40.1% 39.7% 41.5% 39.2%

 Missing 0.0% 0.0% 0.1% 0.1% 0.1% 0.1% 0.1% 0.2% 0.3% 0.4%

Weighted Average FICO Credit Score 756 761 762 762 761 738 716 716 719 715

Product Distribution

Fixed-rate 98.1% 96.7% 93.5% 93.7% 96.6% 91.7% 90.1% 83.4% 78.7% 78.8%

Adjustable-rate 1.9% 3.3% 6.5% 6.3% 3.4% 8.3% 9.9% 16.6% 21.3% 21.2%

Alt-A (5) 1.3% 0.8% 1.2% 0.9% 0.2% 3.1% 16.7% 21.8% 16.1% 11.9%

Subprime 0.3% 0.7% 0.7% 0.0%

Interest Only 0.2% 0.3% 0.7% 1.3% 1.0% 5.6% 15.2% 15.2% 10.1% 5.0%

Negative Amortizing 0.0% 0.3% 3.1% 3.2% 1.9%

Investor 9.0% 7.2% 6.5% 4.6% 2.5% 5.6% 6.5% 7.0% 6.4% 5.4%

Condo/Co-op 10.3% 9.1% 8.8% 8.6% 8.2% 10.3% 10.4% 10.5% 9.8% 8.8%

Refinance 78.8% 79.4% 76.5% 77.4% 79.9% 58.6% 50.4% 48.3% 53.1% 57.3%

Total Refi Plus Initiative (3) 24.6% 24.5% 24.3% 23.4% 10.6%

HARP 15.1% 15.6% 9.9% 9.8% 4.1%

Origination Loan-to-Value Ratio: 

>80% and <=105% 55.4% 57.2% 88.1% 94.4% 99.1%

>105% and <=125% 22.2% 22.1% 11.9% 5.6% 0.9%

>125% 22.4% 20.7%

HARP Weighted Average Origination Loan-to-Value Ratio 111.6% 111.0% 94.3% 92.2% 90.7%

Credit Characteristics of Single-Family Business Acquisitions(1)

(1) Percentage calculated based on unpaid principal balance of loans at time of acquisition. Single-family business acquisitions refer to single-family mortgage loans we acquire through 

purchase or securitization transactions. Beginning with the third quarter of 2011, we prospectively report loans underlying long-term standby commitments in the period in which the 

commitment was established, rather than at the time of actual delivery. 

(2) The increase after 2009 is the result of the Home Affordable Refinance Program (“HARP”), which involves the refinance of existing Fannie Mae loans with high loan-to-value ratios, 

including loans with loan-to-value ratios in excess of 100%.

(3) Our Refi Plus initiative, which includes 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 after 2008 consist of the refinance of existing loans under our Refi Plus initiative. Our Refi Plus initiative provides expanded refinance 

opportunities for eligible Fannie Mae borrowers.
7

YTD 2013 2012 2011 2010 2009 YTD 2013 2012 2011 2010 2009

Unpaid Principal Balance (billions) $64.9 $129.9 $55.6 $59.0 $27.9 $40.7 $73.8 $81.2 $80.5 $44.7

Weighted Average Origination Note Rate 3.89% 4.14% 4.78% 5.00% 5.05% 3.64% 3.89% 4.44% 4.68% 4.85%

Origination Loan-to-Value Ratio

 <= 80% 100.00% 100.00% 100.00% 100.00% 100.00%

 >80% and <= 105% 55.4% 57.2% 88.1% 94.4% 99.1%

 >105% and <= 125% 22.2% 22.1% 11.9% 5.6% 0.9%

 >125% 22.4% 20.7%

Weighted Average Origination Loan-to-Value Ratio 111.6% 111.0% 94.3% 92.2% 90.7% 60.0% 61.1% 60.2% 62.3% 63.3%

FICO Credit Scores (2)

 0 to < 620 5.8% 3.7% 2.1% 2.0% 1.2% 4.5% 2.9% 1.7% 1.4% 0.8%

 >= 620 and < 660 8.6% 6.0% 3.8% 3.6% 2.5% 6.0% 4.2% 2.8% 2.4% 1.7%

 >=660 and < 700 16.7% 13.4% 11.6% 11.6% 9.6% 12.3% 9.8% 8.8% 8.0% 6.7%

 >=700 and < 740 21.2% 20.3% 21.0% 21.4% 22.3% 17.9% 16.2% 16.7% 15.9% 16.3%

 >=740 47.7% 56.6% 61.5% 61.2% 64.4% 59.4% 66.9% 70.0% 72.3% 74.5%

Weighted Average FICO Credit Score 726 738 746 746 749 742 753 758 760 762

Product Distribution

Fixed-rate 99.7% 99.3% 96.8% 97.2% 97.9% 99.4% 98.9% 97.6% 97.3% 98.1%

Adjustable-rate 0.3% 0.7% 3.2% 2.8% 2.1% 0.6% 1.1% 2.4% 2.7% 1.9%

Owner Occupied 79.5% 85.7% 86.3% 91.1% 95.2% 83.1% 87.2% 89.2% 91.8% 93.5%

Second/Vacation Home 3.1% 2.8% 3.6% 3.5% 3.3% 3.5% 3.2% 3.6% 3.5% 4.2%

Investor 17.4% 11.5% 10.1% 5.4% 1.6% 13.4% 9.6% 7.3% 4.7% 2.3%

Condo/Co-op 13.2% 10.9% 10.5% 10.1% 8.3% 9.1% 7.6% 5.8% 6.0% 6.8%

HARP (1) Other Refi Plus (1)

Acquisition Year

Credit Characteristics of Single-Family Business Acquisitions under the Refi 

Plus Initiative

(1) Our Refi Plus initiative, under which we acquire HARP loans, started in April 2009. HARP loans have LTV ratios at origination in excess of 80%, while Other Refi Plus loans have LTV 

ratios at origination of up to 80%. 

(2) FICO credit scores as reported by the seller of the mortgage loan at the time of delivery. 
8

As of June 30, 2013

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)

Alt-A Loans Subprime 

Loans

Sub-total of 

Key Product 

Features (1)

Overall

Book

Unpaid Principal Balance (billions) (2) $6.9 $89.6 $76.4 $158.0 $393.4 $20.5 $141.7 $4.6 $728.4 $2,768.9

Share of Single-Family Conventional Guaranty Book 0.3% 3.2% 2.8% 5.7% 14.2% 0.7% 5.1% 0.2% 26.3% 100.0%

Average Unpaid Principal Balance (2) $102,461 $235,734 $119,376 $130,754 $169,931 $128,777 $153,382 $143,369 $154,859 $158,952

Serious Delinquency Rate 5.74% 13.09% 10.66% 8.08% 4.17% 12.02% 10.19% 18.33% 6.55% 2.77%

Origination Years 2005-2008 54.5% 79.2% 49.7% 44.3% 18.2% 42.2% 63.7% 85.3% 35.8% 17.5%

Weighted Average Origination Loan-to-Value Ratio 70.5% 74.1% 79.9% 78.9% 105.2% 105.5% 76.3% 76.9% 89.5% 73.7%

Origination Loan-to-Value Ratio > 90% 0.3% 8.1% 26.8% 22.9% 100.0% 100.0% 11.6% 6.6% 54.0% 14.2%

Weighted Average Mark-to-Market Loan-to-Value Ratio 78.6% 99.1% 83.2% 81.2% 100.1% 107.3% 88.5% 99.6% 90.4% 69.8%

Mark-to-Market Loan-to-Value Ratio > 100% and <= 125% 15.8% 25.2% 15.6% 13.8% 22.3% 29.8% 18.6% 23.0% 18.3% 6.2%

Mark-to-Market Loan-to-Value Ratio > 125% 18.8% 20.5% 9.8% 9.0% 12.6% 21.4% 14.5% 20.3% 10.8% 3.4%

Weighted Average FICO (3) 707 724 585 642 727 586 714 618 702 743

FICO < 620 (3) 6.7% 1.5% 100.0% 5.2% 100.0% 1.6% 51.2% 10.5% 2.8%

Fixed-rate 3.1% 25.7% 80.8% 82.9% 93.2% 83.8% 65.4% 63.2% 81.2% 90.9%

Primary Residence 68.6% 85.1% 95.7% 93.4% 91.3% 96.3% 77.0% 96.9% 89.2% 88.4%

Condo/Co-op 13.0% 15.5% 4.8% 6.3% 10.6% 5.9% 10.2% 4.0% 9.6% 9.4%

Credit Enhanced (4) 46.9% 14.6% 26.0% 23.3% 56.8% 66.2% 13.8% 56.5% 35.4% 14.3%

% of 2009 Credit Losses (5) 2.0% 32.6% 8.8% 15.5% 19.2% 3.4% 39.6% 1.5% 75.0% 100.0%

% of 2010 Credit Losses (5) 1.9% 28.6% 8.0% 15.1% 15.9% 2.7% 33.2% 1.1% 68.4% 100.0%

% of 2011 Credit Losses (5) 1.2% 25.8% 7.9% 14.7% 14.0% 2.2% 27.3% 0.6% 63.4% 100.0%

% of 2012 Credit Losses (5) 0.5% 21.8% 7.8% 14.2% 16.8% 2.3% 23.7% 1.1% 61.2% 100.0%

% of YTD 2013 Credit Losses (5) 0.2% 20.8% 6.8% 16.2% 19.3% 1.8% 27.7% 0.4% 64.9% 100.0%

Categories Not Mutually Exclusive (1)

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

(2) 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. Fannie Mae had access to 

detailed loan-level information for approximately 99% of its single-family conventional guaranty book of business as of June 30, 2013.

(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 conventional guaranty book of business for which 

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

(5) Expressed as a percentage of credit losses for the single-family guaranty book of business. Does not reflect the impact of recoveries that have not been allocated to specific 

loans. For information on total credit losses, refer to Fannie Mae’s 2013 Q2 Form 10-Q.

Credit Characteristics of Single-Family Conventional Guaranty Book of 

Business by Key Product Features 
9

As of June 30, 2013 Overall

Book 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 andEarlier

Unpaid Principal Balance (billions) (1) $2,768.9 $327.4 $761.5 $349.1 $310.8 $237.2 $96.1 $159.4 $114.3 $115.1 $298.0

Share of Single-Family Conventional Guaranty Book 100.0% 11.8% 27.5% 12.6% 11.2% 8.6% 3.5% 5.8% 4.1% 4.2% 10.8%

Average Unpaid Principal Balance (1) $158,952 $204,499 $203,263 $176,198 $175,332 $169,005 $155,721 $164,628 $149,617 $132,709 $80,580

Serious Delinquency Rate 2.77% 0.01% 0.09% 0.29% 0.54% 0.98% 6.77% 12.59% 11.79% 7.62% 3.54%

Weighted Average Origination Loan-to-Value Ratio 73.7% 75.4% 75.8% 71.2% 71.1% 69.7% 74.8% 78.3% 75.3% 73.5% 71.5%

Origination Loan-to-Value Ratio > 90% (2) 14.2% 18.4% 18.5% 12.5% 10.2% 6.5% 12.8% 21.0% 12.7% 9.8% 10.3%

Weighted Average Mark-to-Market Loan-to-Value Ratio 69.8% 72.7% 68.1% 62.5% 63.9% 65.7% 81.6% 99.3% 97.3% 82.8% 53.8%

Mark-to-Market Loan-to-Value Ratio > 100% and <= 125% 6.2% 4.7% 4.3% 1.4% 1.9% 2.3% 15.5% 25.4% 22.8% 15.5% 3.1%

Mark-to-Market Loan-to-Value Ratio > 125% 3.4% 2.9% 2.3% 0.1% 0.1% 0.2% 4.4% 17.9% 18.2% 8.6% 1.2%

Weighted Average FICO (3) 743 755 759 758 758 754 720 696 700 709 710

FICO < 620 (3) 2.8% 1.4% 1.0% 0.6% 0.6% 0.7% 5.0% 10.3% 8.3% 6.3% 6.9%

Interest Only 3.2% 0.2% 0.3% 0.6% 1.0% 1.1% 7.1% 17.4% 19.3% 12.5% 2.7%

Negative Amortizing 0.3% 0.1% 1.5% 1.7% 1.1%

Fixed-rate 90.9% 98.2% 97.2% 94.1% 95.0% 97.0% 80.1% 70.4% 69.1% 72.2% 83.7%

Primary Residence 88.4% 86.8% 88.6% 87.3% 89.4% 90.8% 86.6% 88.6% 86.6% 86.4% 90.0%

Condo/Co-op 9.4% 10.3% 9.2% 9.0% 8.8% 9.2% 11.7% 10.4% 11.2% 11.0% 8.0%

Credit Enhanced (4) 14.3% 16.7% 14.6% 10.5% 7.6% 7.2% 26.9% 31.2% 20.6% 15.7% 11.8%

% of 2009 Credit Losses (5) 100.0% 4.8% 36.0% 30.9% 16.4% 11.9%

% of 2010 Credit Losses (5) 100.0% 0.4% 7.0% 35.8% 29.2% 15.9% 11.7%

% of 2011 Credit Losses (5) 100.0% 0.7% 1.6% 5.7% 30.3% 27.7% 19.2% 14.8%

% of 2012 Credit Losses (5) 100.0% 0.1% 0.6% 1.9% 2.5% 7.7% 31.5% 26.3% 16.3% 13.1%

% of YTD 2013 Credit Losses (5) 100.0% 0.0% 1.0% 1.3% 2.4% 2.7% 6.8% 31.5% 25.7% 15.9% 12.6%

Cumulative Default Rate (6) 0.0% 0.1% 0.3% 0.4% 3.7% 11.8% 10.9% 6.6%

Origination Year

Credit Characteristics of Single-Family Conventional Guaranty Book of 

Business by Origination Year 

(1) 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. Fannie Mae had access to 

detailed loan-level information for approximately 99% of its single-family conventional guaranty book of business as of June 30, 2013.

(2) The increase after 2009 is the result of the Home Affordable Refinance Program (“HARP”), which involves the refinance of existing Fannie Mae loans with high loan-to-value 

ratios, including loans with loan-to-value ratios in excess of 100%.

(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 conventional guaranty book of business for which 

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

(5) Expressed as a percentage of credit losses for the single-family guaranty book of business. Does not reflect the impact of recoveries that have not been allocated to specific 

loans. For information on total credit losses, refer to Fannie Mae’s 2013 Q2 Form 10-Q.

(6) Defaults include loan liquidations other than through voluntary pay-off or repurchase by lenders and include loan foreclosures, short sales, sales to third parties 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. For 2003 and 2004 cumulative default 

rates, refer to slide 16.
10

As of June 30, 2013 Overall

Book AZ CA FL NV

Select Midwest 

States (1)

Unpaid Principal Balance (billions) (2) $2,768.9 $65.9 $533.4 $161.3 $26.7 $276.2

Share of Single-Family Conventional Guaranty Book 100.0% 2.4% 19.3% 5.8% 1.0% 10.0%

Average Unpaid Principal Balance (2) $158,952 $148,892 $224,520 $138,409 $154,808 $123,639

Serious Delinquency Rate 2.77% 1.49% 1.29% 8.47% 5.35% 2.88%

Origination Years 2005-2008 17.5% 22.1% 13.7% 34.6% 30.0% 16.7%

Weighted Average Origination Loan-to-Value Ratio 73.7% 82.8% 68.3% 79.9% 87.7% 77.8%

Origination Loan-to-Value Ratio > 90% 14.2% 24.7% 9.7% 20.6% 25.6% 19.2%

Weighted Average Mark-to-Market Loan-to-Value Ratio 69.8% 77.6% 63.4% 87.0% 99.4% 76.9%

Mark-to-Market Loan-to-Value Ratio >100% and <=125% 6.2% 13.1% 5.5% 14.8% 14.3% 9.2%

Mark-to-Market Loan-to-Value Ratio >125% 3.4% 7.6% 3.9% 16.7% 27.5% 4.8%

Weighted Average FICO (3) 743 745 752 729 739 738

FICO < 620 (3) 2.8% 2.4% 1.5% 4.6% 2.5% 3.6%

Interest Only 3.2% 6.0% 4.6% 6.6% 9.5% 2.1%

Negative Amortizing 0.3% 0.3% 0.7% 0.6% 0.9% 0.1%

Fixed-rate 90.9% 87.2% 89.2% 85.0% 81.4% 90.5%

Primary Residence 88.4% 79.2% 85.3% 81.5% 75.9% 92.6%

Condo/Co-op 9.4% 4.3% 12.5% 13.5% 5.4% 11.3%

Credit Enhanced (4) 14.3% 13.9% 6.7% 14.0% 13.3% 18.1%

% of 2009 Credit Losses (5) 100.0% 10.8% 24.4% 15.5% 6.5% 14.8%

% of 2010 Credit Losses (5) 100.0% 10.0% 22.6% 17.5% 6.1% 13.6%

% of 2011 Credit Losses (5) 100.0% 11.7% 27.0% 11.0% 7.9% 12.0%

% of 2012 Credit Losses (5) 100.0% 6.3% 18.4% 21.4% 4.8% 18.7%

% of YTD 2013 Credit Losses (5) 100.0% 1.8% 7.0% 28.8% 4.3% 22.1%

Credit Characteristics of Single-Family Conventional Guaranty Book of 

Business by Select States 

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

(2) 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. Fannie Mae had 

access to detailed loan-level information for approximately 99% of its single-family conventional guaranty book of business as of June 30, 2013.

(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 conventional guaranty book of business for which 

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

(5) Expressed as a percentage of credit losses for the single-family guaranty book of business. Does not reflect the impact of recoveries that have not been allocated to specific 

loans. For information on total credit losses, refer to Fannie Mae’s 2013 Q2 Form 10-Q.
11

As of June 30, 2013 Alt-A (1) 2013(2) 2012(2) 2011 (2) 2010 (2) 2009 (2) 2008 2007 2006 2005 2004 and

Earlier

Unpaid principal balance (billions) (3) $141.7 $4.5 $7.8 $6.1 $3.0 $1.2 $3.0 $30.8 $33.1 $23.3 $28.9

Share of Alt-A 100.0% 3.2% 5.5% 4.3% 2.1% 0.8% 2.1% 21.8% 23.3% 16.5% 20.4%

Weighted Average Origination Loan-to-Value Ratio 76.3% 101.5% 103.4% 75.0% 81.1% 76.4% 68.7% 75.1% 74.2% 73.0% 71.7%

Origination Loan-to-Value Ratio > 90% (4) 11.6% 57.7% 57.5% 26.1% 31.4% 22.6% 2.4% 8.6% 4.8% 3.3% 5.2%

Weighted Average Mark-to-Market Loan-to-Value Ratio 88.5% 97.5% 92.1% 66.6% 76.3% 75.0% 78.9% 102.6% 102.8% 90.1% 60.9%

Mark-to-Market Loan-to-Value Ratio > 100% and <=125% 18.6% 22.5% 19.6% 4.6% 7.7% 9.9% 14.2% 26.6% 25.2% 19.7% 5.3%

Mark-to-Market Loan-to-Value Ratio > 125% 14.5% 19.3% 16.7% 0.2% 0.5% 0.7% 4.6% 21.7% 23.2% 13.4% 2.2%

Weighted Average FICO (5) 714 713 721 741 728 730 720 706 709 719 715

FICO < 620 (5) 1.6% 8.9% 7.4% 3.0% 3.9% 4.2% 0.3% 0.6% 0.6% 0.5% 1.7%

Adjustable-rate 34.6% 0.3% 0.8% 2.6% 4.1% 3.9% 26.6% 39.4% 44.0% 48.8% 33.9%

Interest Only 25.9% 0.1% 7.6% 37.9% 38.7% 31.8% 15.8%

Negative Amortizing 2.6% 4.2% 6.5% 2.7%

Investor 18.7% 34.6% 29.5% 24.9% 12.9% 5.6% 18.0% 17.8% 15.8% 19.3% 16.8%

Condo/Co-op 10.2% 13.3% 11.1% 7.2% 9.0% 8.7% 6.3% 8.5% 10.7% 12.7% 9.7%

California 20.9% 25.2% 24.8% 25.7% 15.0% 14.0% 19.2% 20.6% 18.4% 19.4% 23.4%

Florida 11.6% 10.8% 11.4% 4.0% 3.2% 3.5% 9.8% 13.0% 13.8% 13.5% 9.4%

Credit Enhanced (6) 13.8% 7.8% 7.9% 2.1% 2.3% 1.4% 14.1% 16.5% 14.0% 11.8% 19.1%

Serious Delinquency Rate at December 31, 2012 11.36% 0.21% 1.05% 3.30% 4.89% 10.71% 17.41% 16.59% 11.76% 6.74%

Serious Delinquency Rate at June 30, 2013 10.19% 0.05% 0.44% 1.32% 3.56% 4.96% 10.50% 16.36% 15.56% 10.98% 6.35%

% of 2009 Credit Losses (7) 39.6% 0.4% 13.4% 15.8% 7.3% 2.6%

% of 2010 Credit Losses (7) 33.2% 0.0% 0.0% 0.5% 11.8% 12.8% 5.7% 2.3%

% of 2011 Credit Losses (7) 27.3% 0.1% 0.1% 0.3% 8.5% 10.1% 5.9% 2.5%

% of 2012 Credit Losses (7) 23.7% 0.0% 0.0% 0.1% 0.1% 0.3% 7.9% 8.9% 4.3% 1.9%

% of YTD 2013 Credit Losses (7) 27.7% 0.0% 0.1% 0.1% 0.2% 0.1% 0.1% 10.2% 10.2% 4.8% 1.9%

Cumulative Default Rate (8) 0.1% 0.4% 2.3% 3.5% 9.4% 21.4% 19.9% 12.8%

Credit Characteristics of Alt-A Loans in the Single-Family Conventional 

Guaranty Book of Business

(1) In reporting our Alt-A exposure, we have classified mortgage loans as Alt-A if and only if the lenders that deliver the mortgage loans to us have classified the loans as Alt-A based 

on documentation or other product features. We have loans with some features that are similar to Alt-A mortgage loans that we have not classified as Alt-A because they do not 

meet our classification criteria. 

(2) Newly originated Alt-A loans acquired after 2008 consist of the refinance of 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. Fannie Mae had access to 

detailed loan-level information for approximately 99% of its single-family conventional guaranty book of business as of June 30, 2013. 

(4) The increase after 2008 is the result of our Refi Plus loans, which we began acquiring in April 2009 and which involve the refinance of existing Fannie Mae loans that can have 

loan-to-value ratios in excess of 100%.

(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 June 30, 2013, 9.2% of unpaid 

principal balance of Alt-A loans carried only primary mortgage insurance (no deductible), 3.5% had only pool insurance (which is generally subject to a deductible), 0.8% had 

primary mortgage insurance and pool insurance, and 0.4% carried other credit enhancement such as lender recourse. 

(7) Expressed as a percentage of credit losses for the single-family guaranty book of business. Does not reflect the impact of recoveries that have not been allocated to specific 

loans. For information on total credit losses, refer to Fannie Mae’s 2013 Q2 Form 10-Q.

(8) Defaults include loan liquidations other than through voluntary pay-off or repurchase by lenders and includes loan foreclosures, short sales, sales to third parties 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.
12

2013 2012 2011 2010 2009 2013 2012 2011 2010 2009

Unpaid Principal Balance (billions) $51.5 $129.3 $47.6 $45.2 $21.3 $31.9 $68.7 $57.5 $47.5 $21.2

Share of Single-Family Conventional Guaranty Book 1.9% 4.7% 1.7% 1.6% 0.8% 1.2% 2.5% 2.1% 1.7% 0.8%

Average Unpaid Principal Balance $182,493 $196,190 $205,044 $217,752 $224,875 $136,895 $145,233 $149,267 $160,217 $164,126

Share of Total Refinances 2.5% 6.4% 2.3% 2.2% 1.1% 1.6% 3.4% 2.8% 2.3% 1.0%

Weighted Average Origination Loan-to-Value Ratio 111.3% 112.5% 94.9% 93.0% 91.5% 60.0% 61.2% 60.6% 62.9% 65.0%

Origination Loan-to-Value Ratio > 90% 76.7% 77.8% 58.5% 53.4% 48.6%

Weighted Average Mark-to-Market Loan-to-Value Ratio 107.1% 100.1% 84.5% 86.3% 89.1% 58.0% 55.2% 53.0% 56.4% 61.0%

Weighted Average FICO (2) 725 737 744 743 744 741 750 755 755 753

FICO < 620 (2) 6.0% 4.0% 2.3% 2.3% 1.7% 4.7% 3.2% 2.0% 1.8% 1.6%

Fixed-rate 99.7% 99.4% 97.1% 97.4% 97.7% 99.5% 99.0% 97.7% 97.5% 97.9%

Primary Residence 79.0% 85.0% 85.9% 90.3% 94.5% 82.5% 86.7% 88.1% 90.5% 92.0%

Second/Vacation Home 3.1% 2.8% 3.5% 3.5% 3.3% 3.6% 3.2% 3.6% 3.7% 4.6%

Investor 17.9% 12.2% 10.7% 6.2% 2.2% 13.9% 10.2% 8.3% 5.8% 3.4%

Condo/Co-op 13.3% 11.1% 10.5% 10.0% 8.4% 9.4% 7.8% 5.9% 6.3% 7.4%

Serious Delinquency Rate

 Overall Serious Delinquency Rate 0.02% 0.37% 1.16% 2.04% 2.98% 0.00% 0.09% 0.30% 0.59% 1.04%

 Serious Delinquency Rate by MTMLTV Ratio:

 <=80% 0.02% 0.14% 0.51% 0.69% 1.01% 0.00% 0.09% 0.29% 0.52% 0.81%

 80% and <=105% 0.01% 0.30% 1.41% 2.34% 3.02% 0.30% 2.14% 3.04% 3.44%

 105% and <=125% 0.03% 0.49% 3.10% 5.62% 7.21% 4.35% 2.80% 3.29%

 >125% 0.06% 0.79% 4.14% 7.28% 9.66% 9.09% 6.25%

Mark-to-Market Loan-to-Value Ratio

 <=80% 5.5% 17.8% 38.2% 31.8% 23.2% 99.9% 99.8% 99.4% 96.7% 89.5%

 80% and <=105% 55.0% 51.0% 56.3% 61.2% 67.0% 0.1% 0.2% 0.6% 3.3% 10.3%

 105% and <=125% 20.8% 17.8% 5.1% 6.3% 8.7% 0.0% 0.0% 0.1%

 >125% 18.7% 13.3% 0.4% 0.8% 1.1% 0.0% 0.0% 0.0%

HARP (1) Other Refi Plus (1)

As of June 30, 2013

Origination Year

Credit Characteristics of Refi Plus Loans in the Single-Family Conventional 

Guaranty Book of Business

(1) Our Refi Plus initiative, under which we acquire HARP loans, started in April 2009. HARP loans have LTV ratios at origination in excess of 80%, while Other Refi Plus loans have 

LTV ratios at origination of up to 80%. 

(2) FICO credit scores as reported by the seller of the mortgage loan at the time of delivery.
13

0%

1%

2%

3%

4%

5%

6%

7%

8%

2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 Q1 2013 Q2 2013

Serious Delinquency Rate by Region (3)

Midwest Northeast Southeast Southwest West

0%

2%

4%

6%

8%

10%

12%

14%

2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 Q1 2013 Q2 2013

Serious Delinquency Rate by Select States 

A Z CA FL NV Select Midwest States All

Serious Delinquency Rates by Select States and Region of Single-Family 

Conventional Guaranty Book of Business(1)

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

(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 30 in Fannie Mae’s 2013 Q2 Form 10-Q.

(2)
14

65,239

69,258

63,228 63,761 61,492

0

25,000

50,000

75,000

2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 Number of Loans

Modifications Repayment Plans and Forbearances Completed Short Sales and Deeds-i n-Lieu

Single-Family Completed Workouts by Type 

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

term, maturity date and/or unpaid principal balance. Modifications include both completed modifications under the Administration’s Home 

Affordable Modification Program (HAMP) and completed non-HAMP modifications, and do not reflect loans currently in trial modifications.

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

payments. Loans with 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 forbearance plans are included 

for loans that were 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 short sale, the borrower, working with the servicer, sells the home prior to foreclosure to pay off all or part of the outstanding loan, accrued 

interest and other expenses from the sale proceeds.
15

2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

3 Months post modification 79% 78% 81% 84% 84% 83% 84% 85% 84% 84% 85% 86%

6 months post modification 73% 75% 77% 78% 79% 79% 79% 78% 77% 80% 82% n/a

9 months post modification 71% 73% 72% 75% 77% 76% 74% 73% 76% 78% n/a n/a

12 Months post modification 70% 70% 69% 74% 75% 72% 71% 73% 75% n/a n/a n/a

15 months post modification 66% 67% 68% 73% 72% 70% 71% 73% n/a n/a n/a n/a

18 Months post modification 65% 67% 68% 71% 71% 70% 71% n/a n/a n/a n/a n/a

21 Months post modification 65% 67% 66% 70% 72% 71% n/a n/a n/a n/a n/a n/a

24 Months post modification 65% 65% 65% 71% 73% n/a n/a n/a n/a n/a n/a n/a

% Current or Paid Off

Re-performance Rates of Modified Single-Family Loans(1)

(1) Excludes loans that were classified as subprime adjustable rate mortgages that were modified into fixed rate mortgages. Modifications include permanent modifications, but 

do not reflect loans currently in trial modifications. 
16

2003

2004

2005

2006

2007

2008

2009 2010 2011 2012

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

11.0%

12.0%

Yr1-Q1 Yr2-Q1 Yr3-Q1 Yr4-Q1 Yr5-Q1 Yr6-Q1 Yr7-Q1 Yr8-Q1 Yr9-Q1 Yr10-Q1 Yr11-Q1 Cumulative Default Rate 

Time Since Beginning of Origination Year

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Note: Defaults consist of loan liquidations other than through voluntary pay-off or repurchase by lenders and include loan foreclosures, short sales, sales to third parties 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 June 30, 2013 is not necessarily indicative of the ultimate performance of the loans and performance is likely to change, perhaps materially, in future periods.

Cumulative Default Rates of Single-Family Conventional Guaranty Book of 

Business by Origination Year 
17

YTD 2013 2012 2011 2010 2009 2008

Beginning Balance N/A 105,666 118,528 162,489 86,155 63,538 33,729 N/A N/A 

Arizona 419 2,471 8,133 16,172 20,691 12,854 5,532 2,311 3,673

California 549 3,546 14,980 27,589 34,051 19,565 10,624 5,590 10,039

Florida 1,194 15,733 23,586 13,748 29,628 13,282 6,159 17,671 11,765

Nevada 604 1,180 3,014 8,406 9,418 6,075 2,906 1,163 1,512

Select Midwest States (1) 724 17,339 40,070 33,777 45,411 28,464 23,668 26,929 29,967

All other States 652 34,554 84,696 100,004 122,879 65,377 45,763 43,256 52,310

Total Acquisitions N/A 74,823 174,479 199,696 262,078 145,617 94,652 N/A N/A

Total Dispositions N/A (83,569) (187,341) (243,657) (185,744) (123,000) (64,843) N/A N/A

Ending Inventory N/A 96,920 105,666 118,528 162,489 86,155 63,538 N/A N/A

State

REO 

Inventory as 

of June 30, 

2013

REO 

Inventory as 

of June 30, 

2012

Average Days 

From Last Paid 

Installment to 

Foreclosure 

For YTD 2013 (2) 

(3) (4)

REO Acquisitions and Dispositions (Number of Properties)

Single-Family Real Estate Owned (REO) in Select States

(1) Select Midwest States are Illinois, Indiana, Michigan, and Ohio.

(2) Measured from the borrowers’ last paid installment on their mortgages to when the related properties were added to our REO inventory for foreclosures completed during the first half 

of 2013. 

(3) Fannie Mae incurs additional costs associated with property taxes, hazard insurance, and legal fees while a delinquent loan remains in the foreclosure process. Additionally, the 

longer a loan remains in the foreclosure process, the longer it remains in our guaranty book of business as a seriously delinquent loan. The average number of days from last paid 

installment to foreclosure for all states combined were 325, 407, 479, 529, and 655 in each of the years 2008 through 2012, respectively, and 772 in 2013 YTD.

(4) Home Equity Conversion Mortgages (HECMs) excluded from calculation.
18

Q2 Q3 Q4 Q1 Q2

FL 56.8% 59.6% 62.2% 64.5% 67.8%

CA 63.7% 68.5% 73.2% 78.0% 85.3%

IL 51.8% 53.1% 55.0% 57.2% 61.9%

MI 54.5% 57.2% 56.9% 59.9% 65.1%

OH 56.1% 60.1% 59.2% 61.7% 62.4%

Top 5 58.8% 61.8% 63.9% 66.9% 71.1%

All Others 69.4% 71.1% 72.2% 73.5% 77.6%

Total 65.0% 67.2% 68.5% 70.6% 74.6%

REO Gross Sales 2012 2013

Price/UPB Q2 Q3 Q4 Q1 Q2

FL 58.6% 61.6% 63.7% 65.8% 68.8%

CA 66.7% 68.4% 71.1% 72.2% 75.5%

NV 53.1% 55.4% 59.1% 63.0% 67.1%

IL 65.0% 64.4% 67.3% 66.7% 68.6%

AZ 63.1% 66.0% 69.9% 73.1% 76.5%

Top 5 62.2% 64.2% 67.0% 68.8% 71.7%

All Others 74.2% 74.8% 76.2% 76.7% 78.6%

Total 66.6% 68.1% 70.4% 71.7% 74.3%

Short Sales Gross 2013

Sales Price/UPB

2012

6 7%

6 8%

7 0%

7 2%

7 4%

6 0%

6 1%

6 3%

6 4% 6 7%

6 5%

6 7%

6 8%

7 1%

7 5%

5 9%

6 1%

6 2%

6 5%

6 8%

5 8%

6 2%

6 6%

7 0%

7 4%

Q2 Q3 Q4 Q1 Q2

2012 2013

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

REO Gross Sales/ UPB REO Net Sales/ UPB

Single-Family Short Sales and REO Sales Price / UPB of Mortgage Loans(1) (2)

Gross Sales Price/UPB Trends on Direct Sale Dispositions(1) and Short Sales(2) Top 5 States(3)

(1) Calculated as the sum of sale proceeds received on 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, redeemed by a borrower, or sold through the FHFA Rental Pilot) 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 selling costs for the property 

and adjusted for other charges/credits paid by or due to the seller at closing. Properties disposed of in the third and fourth quarters of 2012 through structured rental 

transactions have been excluded from the Net/Gross Proceeds to UPB calculations.

(2) Calculated as the sum of sales proceeds received on short sales 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 other parties at closing. 

(3) The states shown have the greatest volume of properties sold YTD 2013 in each respective category.
19

Total Multifamily Guaranty Book of Business (1) 37,781 $203.4 100% 0.28% 100% 100% 100% 100%

Credit Enhanced Loans: 

Credit Enhanced 33,941 $184.4 91% 0.16% 36% 73% 83% 68%

Non-Credit Enhanced 3,840 $19.1 9% 1.44% 64% 27% 17% 32%

Origination loan-to-value ratio: (4)

Less than or equal to 70% 24,309 $114.2 56% 0.14% 29% 14% 18% 8%

Greater than 70% and less than or equal to 80% 10,930 $82.0 40% 0.45% 67% 71% 70% 89%

Greater than 80% 2,542 $7.3 4% 0.41% 4% 15% 12% 3%

Delegated Underwriting and Servicing (DUS ®) Loans: (5)

DUS ® - Small Balance Loans(6) 8,710 $16.6 8% 0.25% -4% 7% 9% 7%

DUS ® - Non Small Balance Loans 12,499 $158.9 78% 0.26% 77% 71% 72% 61%

DUS ® - Total 21,209 $175.5 86% 0.26% 74% 78% 81% 68%

Non-DUS - Small Balance Loans(6) 15,609 $12.6 6% 0.62% 28% 16% 12% 10%

Non-DUS - Non Small Balance Loans 963 $15.4 8% 0.15% -1% 6% 7% 22%

Non-DUS - Total 16,572 $27.9 14% 0.36% 26% 22% 19% 32%

Maturity Dates:

Loans maturing in 2013 848 $3.9 2% 1.45% 7% 2% 7% 10%

Loans maturing in 2014 2,138 $12.2 6% 0.13% 3% 12% 5% 11%

Loans maturing in 2015 2,814 $14.2 7% 0.21% 15% 8% 6% 4%

Loans maturing in 2016 2,851 $14.9 7% 0.39% 21% 12% 8% 14%

Loans maturing in 2017 3,992 $20.3 10% 1.17% 31% 33% 21% 12%

Other maturities 25,138 $137.9 68% 0.30% 24% 34% 53% 49%

Loan Size Distribution:

Less than or equal to $750K 9,807 $2.9 1% 0.70% 6% 5% 5% 2%

Greater than $750K and less than or equal to $3M 13,243 $19.9 10% 0.46% 34% 17% 16% 16%

Greater than $3M and less than or equal to $5M 4,781 $17.5 9% 0.21% -7% 12% 11% 17%

Greater than $5M and less than or equal to $25M 8,645 $88.3 43% 0.36% 68% 55% 50% 48%

Greater than $25M 1,305 $74.8 37% 0.13% 0% 11% 18% 17%

% of 2010 

Multifamily Credit 

Losses

% of 2011 

Multifamily Credit 

Losses

% of 2012 

Multifamily Credit 

Losses

As of June 30, 2013 Unpaid Principal 

Balance (Billions)

% of Multifamily 

Guaranty Book of 

Business (UPB)

% Seriously 

Delinquent Loan Counts (2)

% of YTD 2013 

Multifamily Credit 

Losses (3)

Multifamily Credit Profile by Loan Attributes

(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) Negative values are the result of recoveries on previously charged-off amounts. 

(4) Weighted Average Origination loan-to-value ratio is 66% as of June 30, 2013.

(5) Under the Delegated Underwriting and Servicing, or DUS ®, product line, 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. 

(6) Multifamily loans under $3 million and up to $5 million in high cost-of-living areas.
20

As of June 30, 2013

Unpaid 

Principal 

Balance 

(Billions) 

% of Multifamily 

Guaranty Book 

of Business 

(UPB)

% Seriously 

Delinquent (2)

# of Seriously 

Delinquent 

loans (2)

% of YTD 2013 

Multifamily 

Credit Losses (3)

% of 2012 

Multifamily 

Credit Losses (3)

% of 2011 

Multifamily 

Credit Losses

% of 2010 

Multifamily 

Credit Losses

Total Multifamily Guaranty 

Book of Business (1) $203.4 100% 0.28% 167 100% 100% 100% 100%

By Acquisition Year:

2013 $15.9 8%

2012 $33.6 17% 0%

2011 $23.2 11% 0.22% 3 -1% 0%

2010 $16.4 8% 0.01% 1 1% 0%

2009 $16.7 8% 0.11% 2 -14% 7% 6% 2%

2008 $22.8 11% 0.45% 42 17% 23% 31% 17%

2007 $29.5 15% 0.77% 66 46% 48% 33% 38%

2006 $14.8 7% 0.47% 16 24% 10% 7% 17%

2005 $11.9 6% 0.08% 6 12% 17% 3% 2%

Prior to 2005 $18.7 9% 0.44% 31 15% -4% 20% 25%

2010

2009

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

Year1 Year2 Year3 Year4 Year5 Year6 Year7 Year8 Year9 Cumulative Default Rate 

2005 2006 2007 2008 2009 2010 2011 2012 2013

2005

2007 2008

2006

2013 2012 2011

2005

2006

2007

2008

2009

2011

2010

2012

0.00%

0.20%

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

Year

8

Year

9 SDQ (%) 

2005 2006 2007 2008 2009 2010 2011 2012 2013

2013

(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) Negative values are the result of recoveries on previously charged-off amounts. 

Multifamily Credit Profile by Acquisition Year

Multifamily SDQ Rate by Acquisition Year Cumulative Defaults by Acquisition Year
21

Total Multifamily Guaranty Book of Business (1) $203.4 100% 0.28% 100% 100% 100% 100%

Region: (4)

Midwest $17.6 9% 0.58% -13% 15% 23% 10%

Northeast $41.6 20% 0.16% -5% 10% 3% 5%

Southeast $42.8 21% 0.24% 48% 53% 42% 40%

Southwest $37.1 18% 0.20% 12% 8% 26% 40%

Western $64.2 32% 0.34% 58% 14% 6% 6%

Top Five States by UPB:

California $49.8 24% 0.08% 5% 1% 1% 2%

New York $24.9 12% 0.11% 2% 3% 0% 1%

Texas $18.8 9% 0.04% 8% 2% 19% 12%

Florida $10.8 5% 0.19% 25% 36% 10% 13%

Washington $7.3 4% 0.05% 0% 0% 0% 0%

Asset Class: (5)

Conventional/Co-op $180.4 89% 0.31% 100% 94% 96% 99%

Seniors Housing $14.6 7%

Manufactured Housing $5.4 3% -1% 3% 0% 0%

Student Housing $3.1 2% 0% 3% 4% 1%

Targeted Affordable Segment:

Privately Owned with Subsidy (6) $29.1 14% 0.18% 1% 3% 14% 6%

DUS & Non-DUS Lenders/Servicers:

DUS: Bank (Direct, Owned Entity, or Subsidiary) $73.3 36% 0.39% 20% 21% 29% 45%

DUS: Non-Bank Financial Institution $117.6 58% 0.19% 66% 70% 68% 50%

Non-DUS: Bank (Direct, Owned Entity, or Subsidiary) $11.2 5% 0.40% 9% 6% 1% 4%

Non-DUS: Non-Bank Financial Institution $1.2 1% 0.10% 5% 2% 1% 1%

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

% of 2010 

Multifamily 

Credit Losses

As of June 30, 2013

% of Multifamily 

Guaranty Book of 

Business (UPB)

% Seriously 

Delinquent (2)

% of 2011 

Multifamily 

Credit Losses

Unpaid Principal 

Balance (Billions)

% of 2012 

Multifamily 

Credit Losses

% of YTD 2013 

Multifamily 

Credit Losses (3)

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) Negative values are the result of recoveries on previously charged-off amounts. 

(4) For information on which states are included in each region, refer to footnote 9 to Table 30 in Fannie Mae’s 2013 Q2 Form 10-Q.

(5) Asset Class Definitions: Conventional/Co-Op Housing: Privately owned multifamily properties or multifamily properties in which the residents collectively own the property 

through their shares in the cooperative corporation. Seniors Housing: Multifamily rental properties for senior citizens. Manufactured Housing: A residential real estate 

development consisting of housing sites for manufactured homes, related amenities, utility services, landscaping, roads and other infrastructure. Student Housing: 

Multifamily rental properties in which 80% or more of the units are leased to undergraduate and/or graduate students. 

(6) The Multifamily Affordable Business Channel focuses on financing properties which are under a regulatory agreement that provides long-term affordability, such as 

properties with rent subsidies or income restrictions.
22

Example: 

UPB in NY is $24.9B 

and 2013 Credit 

Losses are $928K

Numbers: Represents YTD 2013 credit losses/(gains) for each state, which total $58M as of June 30, 2013. States with no numbers had less than $500K in credit losses or less 

than $500K in credit-related income in 2013.

Shading: Represent unpaid principal balance (UPB) for each state, which totals $203.4B as of June 30, 2013. 

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

Multifamily YTD 2013 Credit Losses by State ($ Millions)

Portfolio UPB(1)

Concentration by State 

as of 06/30/2013

Note: Negative values are the result of recoveries on previously charged-off amounts.