FANNIE MAE

2012 ANNUAL HOUSING ACTIVITIES REPORT

and

ANNUAL MORTGAGE REPORT

SUBMITTED TO: 

THE FEDERAL HOUSING FINANCE AGENCY (FHFA) 

THE COMMITTEE ON FINANCIAL SERVICES

OF THE

UNITED STATES HOUSE OF REPRESENTATIVES

THE COMMITTEE ON BANKING, HOUSING AND URBAN AFFAIRS 

OF THE

UNITED STATES SENATE

PURSUANT TO 

The Federal National Mortgage Association 

Charter Act 

MARCH 15, 2013
 

1 

 

INTRODUCTION

Under Section 309(n) of the Federal National Mortgage Association Charter Act (“Charter Act”),1

 Fannie 

Mae is required to submit a report on its annual housing activities to the Director of the Federal Housing 

Finance Agency (“FHFA”) and to its oversight committees in the United States House of Representatives 

and the United States Senate. This report responds to this requirement and is made available to the public. 

Since 1993, Fannie Mae has been subject by statute and regulation to the achievement of certain housing 

goals. The structure of our housing goals changed in 2010 as a result of the passage of the Housing and 

Economic Recovery Act of 20082

 and goals for 2010 and 2011 were set at that time.3 In 2012, FHFA 

issued a rule revising our housing goals.4

 The new rule established single family and multifamily goals 

for 2012-2014. 

The following single family home purchase and refinance housing goal benchmarks were established for 

2012–2014. A home purchase mortgage may be counted towards more than one home purchase 

benchmark. 

• Low-Income Families Home Purchase Benchmark: At least 23% of our acquisitions of single family 

owner occupied mortgage loans financing home purchases must be affordable to low-income 

families (defined as families with income no higher than 80% of area median income). 

• Very Low-Income Families Home Purchase Benchmark: At least 7% of our acquisitions of single 

family owner occupied mortgage loans financing home purchases must be affordable to very lowincome families (defined as families with income no higher than 50% of area median income). 

• Low-Income Areas Home Purchase Benchmarks: At least 20% of our acquisitions of single family 

owner occupied mortgage loans financing home purchases must be for families in low-income 

census tracts, for moderate-income families (defined as families with income no higher than 100% of 

area median income) in designated disaster areas, or for moderate-income families in minority 

census tracts. In addition, at least 11% of our acquisitions of single family owner occupied purchase 

money mortgage loans must be for families in low-income census tracts or for moderate-income 

families in minority census tracts. 

• Low-Income Families Refinancing Benchmark: At least 20% of our acquisitions of single family 

owner occupied refinance mortgage loans must be affordable to low-income families, which may 

include qualifying permanent modifications of mortgages under the Home Affordable Modification 

Program completed during the year. 

If we do not meet these benchmarks, we may still meet our goals. Our single family housing goals 

performance will be measured against these benchmarks and against goals-qualifying originations in the 

primary mortgage market. We will be in compliance with the housing goals if we meet either the 

benchmarks or market share measures. If our performance against any of our 2012 single-family housing 

goals was below benchmark levels, Fannie Mae and FHFA will have to compare our performance with 

that of goals-qualifying originations in the primary mortgage market after the release of data reported 

 

1

 12 U.S.C. §1716 et seq. 

2

 12 U.S.C. §4501 et seq. 

3

 12 CFR Part 1282 

4

 2012-2014 Enterprise Housing Goals. 77 Fed. Reg. 67535 (Nov. 13, 2012).. 
 

2 

 

under the Home Mortgage Disclosure Act (“HMDA”).5 This release will be made in the fall of 2013. At 

that time it will be determined whether Fannie Mae met any additional goals based on the HMDA market 

data. 

FHFA also established multifamily goals and subgoals for 2012-2014 as follows. For 2012, we must 

finance at least 285,000 units affordable to low-income families and 80,000 units affordable to very lowincome families. For 2013, we must finance at least 265,000 units affordable to low-income families and 

70,000 units affordable to very-low income families. Finally, for 2014 we must finance at least 250,000 

units affordable to low-income families and 60,000 units affordable to very low-income families. There is 

no market-based alternative measurement for the multifamily goals. 

In adopting the rule establishing our housing goals in 2010, FHFA stated, “FHFA does not intend for 

[Fannie Mae] to undertake uneconomic or high-risk activities in support of the [housing] goals. However, 

the fact that [Fannie Mae is] in conservatorship should not be a justification for withdrawing support from 

these market segments.”6

 If our efforts to meet our goals prove to be insufficient, FHFA determines 

whether the goals were feasible. If FHFA finds that our goals were feasible, we may become subject to a 

housing plan that could require us to take additional steps including describing the actions we would take 

to meet the goal in the next calendar year and the additional steps would have to be approved by FHFA. 

The potential penalties for failure to comply with housing plan requirements include a cease-and-desist 

order and civil money penalties. 

For 2011, FHFA determined that we met our single family low-income areas home purchase goal and 

subgoal, our single family refinance goal, and our multifamily goal and subgoal. FHFA determined that 

we did not meet our single family low-income home purchase goal or our single family very low-income 

home purchase goal. Although FHFA determined that we did not meet these two goals and that their 

achievement was feasible, FHFA is not requiring us to submit a housing plan. FHFA stated that a housing 

plan is not required because the two goals were missed by a very small amount and because Fannie Mae 

continues to operate under conservatorship. 

 

 

5

 12 U.S.C. §2801 et seq.

6

 2010-2011 Enterprise Housing Goals; Enterprise Book-entry Procedures, 75 Fed. Reg. 55892, 55896-55897 (Sept. 14, 2010). 
 

3 

 

The following table sets forth Fannie Mae's housing goals performance against our 2012 single family 

housing benchmarks and multifamily housing goals, as calculated by Fannie Mae.7

 We believe we met all 

of our single family benchmarks for 2012, as well as our 2012 multifamily goals. Final performance 

results will be calculated and published by FHFA.8

 

7

 Our single family results and benchmarks are expressed as a percentage of the total number of eligible mortgages 

acquired during the period.

8

 Our 2012 results have not been validated by FHFA. After validation they may differ from the results reported above. Loans 

financed through the Housing Finance Agency Initiative are not included. We estimate the inclusion of such loans increases our 

results to 25.64%, 7.34%, and 22.30% for the Low-Income Home Purchase Goal, Very Low-Income Home Purchase Goal, and 

the Low-Income Areas Home Purchase Goal, respectively. 

Goal Summary 2012 Benchmark 2012 Result 

Single Family Purchase Money

Low-Income 23% 25.62% 

Very Low-Income 7% 7.33% 

Low-Income Areas 

(with disaster areas) 

20% 22.29% 

Low-Income Areas 

(without disaster areas) 

11% 13.13% 

Single Family Refinance

Low-Income 20% 21.82% 

Goal Summary 2012 Goal 2012 Result 

Multifamily

Low-Income 285,000 Units 375,924 Units 

Very Low-Income Subgoal 80,000 Units 108,878 Units 
 

4 

 

CHARTER ACT REQUIREMENTS

Fannie Mae’s Charter Act9

 specifies the information that must be included in the Annual Housing 

Activities Report. Each statutory requirement is set forth below, followed by Fannie Mae’s response for 

2012.10

1. Include, in aggregate form and by appropriate category, statements of the dollar volume 

and number of mortgages on owner occupied and rental properties purchased which relate 

to each of the annual housing goals [established under subpart B of part 2 of subtitle A of 

the Federal Housing Enterprises Financial Safety and Soundness Act of 1992]. 

The dollar volume and number of mortgages on owner occupied properties, which relate to each of the 

housing goals, are set forth on Table 1A of the Annual Mortgage Report (“AMR”) attached hereto. 

The dollar volume and number of mortgages on rental properties, which relate to each of the housing 

goals are set forth on AMR Table 1A (Single Family Owner Occupied 2-4 Unit Properties/Mortgages) 

and AMR Table 1B (Multifamily) attached hereto. In 2012, Fannie Mae mortgage purchases financed 

22,055 units affordable to families earning 80% or less of the area median income living in owner 

occupied 2-4 unit properties.11 

2. Include, in aggregate form and by appropriate category, statements of the number of 

families served by the corporation, the income class, race, and gender of homebuyers 

served, the income class of tenants of rental housing (to the extent such information is 

available), the characteristics of the census tracts, and the geographic distribution of the 

housing financed. 

 

In 2012, Fannie Mae’s purchases of mortgages served 4,524,901 families, as measured by the number of 

units financed. The income class, race, and gender of homebuyers served, the characteristics of the census 

tracts, and the geographic distribution of the housing financed are set forth on AMR Tables 2, 3, 4, 5A, 6, 

7, 8, 9, 10A, and 10B attached hereto. 

3. Include a statement of the extent to which the mortgages purchased by the corporation have 

been used in conjunction with public subsidy programs under Federal law. 

Fannie Mae purchased 7,857 single family mortgages and 408 multifamily mortgages with an aggregate 

unpaid principal balance (“UPB”) of approximately $1.02 billion and $3.8 billion, respectively, that were 

originated in conjunction with public subsidy programs in 2012.12 

 

9

 Charter Act, § 309(n)(2)(A-L). 

10 Section 309(n)(2)(L) of the Charter Act also requires Fannie Mae to include in its report “any other information that the 

Director of the Federal Housing Finance Agency considers appropriate.” At this time, Fannie Mae has not been asked by the 

Director to provide any such additional information in this report. 

11 In addition, Fannie Mae purchased 1884 units where affordability data was not provided by the seller. Because that data was 

not provided, we have not included these units in our calculation. However, we estimate that 58.7% of those units would be 

affordable to those earning 80% or less of the area median income.

12 For purposes of this AHAR, Fannie Mae defined programs originated in conjunction with public subsidy programs to include: 

certain single family and multifamily HUD-related and Rural Housing Service-related programs and other government insured 

and/or related programs; Fannie Mae’s Multifamily Affordable Housing execution; mortgage purchases from housing finance 

agencies that benefit from Federal tax exemption; bond credit enhancements; and mortgages that benefit from low-income 

housing tax credits. Because some loans may have been made in conjunction with more than one public subsidy program, there 

may be a small amount of overlap.
 

5 

 

4. Include statements of the proportion of mortgages on housing consisting of 1 to 4 dwelling 

units purchased by the corporation that have been made to first-time homebuyers, as soon 

as providing such data is practicable, and identifying any special programs (or revisions to 

conventional practices) facilitating homeownership opportunities for first-time homebuyers. 

In 2012, 40.56%13 of single family owner occupied home purchase mortgages acquired by Fannie Mae 

financed mortgage loans to first-time homebuyers.14 Set forth in the following table are certain Fannie 

Mae products that assist first-time homebuyers and the proportion of first-time homebuyers that utilized 

the program in 2012 as compared to all homebuyers that utilized the program. 

5. Include, in aggregate form and by appropriate category, the data provided to the [Director] 

under subsection (m)(1)(B); [the loan-to-value ratios of purchased mortgages at the time of 

origination]. 

AMR Table 11 provides the loan-to-value (“LTV”) ratio of single family owner occupied mortgages 

purchased by Fannie Mae. 

6. Compare the level of securitization versus portfolio activity. 

In 2012, Fannie Mae securitized $865.5 billion in mortgages and its portfolio decreased $75.4 billion. 

Included in our portfolio purchases is approximately $45.8 billion of delinquent loans purchased from our 

single family MBS trusts.

7. Assess underwriting standards, business practices, repurchase requirements, pricing, fees, 

and procedures, that affect the purchase of mortgages for low- and moderate-income 

families, or that may yield disparate results based on the race of the borrower, including 

revisions thereto to promote affordable housing or fair lending. 

Fannie Mae has an ongoing comprehensive fair lending risk assessment program that is designed to 

ensure that its underwriting standards, business practices, repurchase requirements, pricing policies, fee 

structures, and procedures comply with the fair lending laws and promote fair and responsible lending. 

Fannie Mae considers service to low- and moderate-income families to be an important part of its 

mission. Fannie Mae designs its underwriting standards, business practices, repurchase requirements, and 

 

13 Exclusions from this calculation include: loans exempt from housing goals reporting (for example including loan restructures, 

convertible adjustable rate mortgages, real estate owned properties, etc.), long-term standby commitments, refinance mortgages,

home equity conversion mortgages, government loans and Making Home Affordable modifications.

14 Fannie Mae relied on information provided by its customers to identify units occupied by first-time homebuyers. Fannie Mae’s 

Single Family Selling Guide defines a first-time homebuyer as “an individual who: (1) is purchasing the security property; (2) 

will reside in the security property as a principal residence; and (3) had no ownership interest (sole or joint) in a residential 

property during the three-year period preceding the date of the purchase of the security property. In addition, an individual who is 

a displaced homemaker or single parent also will be considered a first-time homebuyer if he or she had no ownership interest in a 

principal residence (other than a joint ownership interest with a spouse) during the preceding three-year time period.” 

Products and Initiatives Percentage of Mortgages Made 

to First-Time Homebuyers 

MyCommunityMortgage 90.37% 

HFA Preferred Risk SharingTM 85.92% 

HomePath 59.23% 
 

6 

 

procedures to balance the company’s multiple objectives of serving low- and moderate-income families, 

meeting its liquidity mission, and appropriately addressing credit risk. 

2012 Changes

Fannie Mae implemented certain changes to its single family mortgage underwriting and business 

practices in 2012, including the following: 

 Fannie Mae implemented Desktop Underwriter (“DU”) Version 9.0 to support updates to the 

credit risk assessment, align DU requirements with policies that apply to manually underwritten 

loans, and incorporate other changes to DU eligibility guidelines. 

Fannie Mae continues to provide refinance opportunities for existing Fannie Mae borrowers through the 

DU Refi PlusTM and Refi PlusTM initiatives, including the Home Affordable Refinance Program 

(“HARP”) which were originally implemented in 2009. In November 2011, changes to HARP were 

announced in order to help more borrowers reduce their mortgage payments or obtain a more stable 

mortgage loan product or both. Key changes included: 

 Eliminating LTV ratio maximums of 125 percent. 

 Increasing the access and use of appraisal waivers. 

 Reducing the maximum amount of loan-level adjustments that apply to HARP loans. 

Since November 2011, Fannie Mae has worked to implement the announced changes. A milestone was 

reached in June of 2012 with the implementation of an MBS execution for loans with LTV ratios greater 

than 125 percent – the last enhancement that needed to be made under the changes announced. 

At the direction of FHFA, Fannie Mae implemented additional enhancements to DU Refi Plus and Refi 

Plus in 2012. Key enhancements included: 

 Updating DU with the following: 

o modifying the credit risk assessment in order to give more borrowers the ability to 

refinance using DU Refi Plus; 

o updating the property risk assessment that determines eligibility for the DU Refi Plus 

property fieldwork waiver to further increase the number of loans that are considered for 

the DU Refi Plus property fieldwork waiver; and 

o providing lenders with the estimated property values on DU Refi Plus loans in order to 

provide transparency into Fannie Mae’s view of the value of the property that was used to 

determine eligibility for the DU Refi Plus property fieldwork waiver offer. 

 Allowing the simultaneous refinance of an existing subordinate lien. 

 Allowing grant-like unsecured financing through a Housing Finance Agency (“HFA”) Hardest 

Hit Funds program for the purpose of paying down the outstanding mortgage balance of the 

existing mortgage at the time of closing or for paying closing costs (see related section below); 

 Allowing additional flexibility for removing borrowers from the loan; 

 Implementing a new representation and warranty framework to help clarify lenders’ repurchase 

exposure and liability on loan deliveries. Under this framework, HARP loans sold to Fannie Mae 
 

7 

 

beginning January 1, 2013, will be eligible for rep and warranty relief after an acceptable 

payment history of only 12 months following the acquisition date. 

 Eliminating representation and warranties for value, condition, and marketability when an 

appraisal is required. 

 Streamlining minimum required levels for income and asset documentation when required. 

 Continuing to work with external and internal stakeholders to reach as many borrowers as 

possible to refinance under the HARP program which expires at the end of 2013. 

Fannie Mae continues to implement various policy, process and technology enhancements aimed at 

improving a lender’s ability to deliver mortgage loans that meet Fannie Mae’s underwriting and eligibility 

guidelines, thereby mitigating repurchase risk of ineligible loans. At the direction of FHFA, Fannie Mae 

and Freddie Mac jointly developed the Uniform Appraisal Dataset (“UAD”) and the Uniform Loan 

Delivery Dataset (“ULDD”) to improve the quality and consistency of data on loans delivered to the 

Government Sponsored Enterprises (“GSEs”). The UAD defines all data points required for an appraisal 

report and standardizes key data points. The ULDD provides a common dataset acceptable for loan 

delivery to both GSEs. As of July 23, 2012, lenders are required to deliver loans in conformity with the 

ULDD requirements. 

 

8. Describe trends in both the primary and secondary multifamily housing mortgage markets, 

including a description of the progress made, and any factors impeding progress toward 

standardization and securitization of mortgage products for multifamily housing. 

Primary and Secondary Market Trends

The primary multifamily housing market is influenced by a variety of economic and demographic 

conditions. These conditions impact the demand for, and absorption of, additional units. National 

multifamily fundamentals (e.g., vacancy levels, rent growth, and apartment housing demand) remained 

positive during 2012, but began to show signs of slowing down to a more normalized pace during the 

fourth quarter of 2012. Although the multifamily sector saw its improvement slow, rents continued to 

increase and vacancy levels remained low. This normalizing trend is expected to remain in place 

throughout 2013. Set forth below are charts illustrating trends that impact the market for multifamily 

mortgage originations. 
 

8 

 

 

Source: Fannie Mae Economics and Multifamily Market Research 

 *4Q2012 

Based on third-party data for the fourth quarter of 2012, the vacancy rate for institutional investment-type 

apartment properties was likely to remain at the same estimated level as it was during the third quarter of 

2012. However, asking rents rose again, as they have for nearly three years. Vacancy rates and rents are 

important to loan performance because multifamily loans are generally repaid from the cash flows 

generated by the underlying property. 

In the fourth quarter of 2012 the estimated vacancy rate of 5.5% was at the low end of historical norms as 

seen in the chart above. Estimated asking rents rose by 0.5% quarter-over-quarter in the fourth quarter of 

2012. It appears that the national average for the full year rent growth slightly exceeded our initial 

expectation of about +3.0%, with a result of +3.25%, with effective rents having seen similar annualized 

growth. 

Estimated National Rent Level and Vacancy Rate

$920

$940

$960

$980

$1,000

$1,020

$1,040

$1,060

$1,080

2005Q1

2005Q2

2005Q3

2005Q4

2006Q1

2006Q2

2006Q3

2006Q4

2007Q1

2007Q2

2007Q3

2007Q4

2008Q1

2008Q2

2008Q3

2008Q4

20091Q

20092Q

2009Q3

2009Q4

2010Q1

2010Q2

2010Q3

2010Q4

2011Q1

2011Q2

2011Q3

2011Q4

2012Q1

2012Q2

2012Q3

2012Q4p*

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

Rent Level

Vacancy Rate

$1,078

5.5% 
 

9 

 

Source: Real Capital Analytics (www.rcanalytics.com) (Used by permission); 2005-present based on 

properties and portfolios $2.5 million and greater. 

Sales of apartment properties valued at $2.5 million or greater were $84.6 billion in 2012, increasing 47% 

from 2011, according to data from Real Capital Analytics. More than 5,200 apartment properties changed 

ownership in 2012, which is an increase of 38% from 2011’s activity level. 

Apartment sales in the fourth quarter of 2012 totaled $26.3 billion, which is more than a 40% increase 

over the $18.3 billion that occurred in the fourth quarter of 2011. About half of the fourth quarter’s 

property sales occurred in December, making it the most active month for sales since October of 2007, 

according to Real Capital Analytics. Apartment sales last year consisted primarily of individual property 

sales and just a few portfolio sales. In 2012, Multifamily portfolio sales totaled $13.2 billion, compared to 

$61.0 billion in individual sales and $10.3 billion in entity sales. 

In addition, the average reported capitalization rate15 remained fairly steady all year at approximately 

6.2%. However, in some of the nation’s largest metropolitan areas capitalization rates remained at belowaverage levels, according to Real Capital Analytics. 

Standardization and Securitization

Securitization of mortgages relies on standardization. Over the past two decades, standardization of 

multifamily mortgages has been advanced by a number of factors: (1) the market for commercial 

mortgage-backed securities (“CMBS”), including those backed by multifamily mortgage loans; (2) the 

introduction of Fannie Mae’s risk-sharing Delegated Underwriting and Servicing program in 1988 and 

subsequent enhancements; (3) efforts to standardize commercial securitization and offering documents, 

spearheaded by the Commercial Real Estate Finance Council; (4) the issuance by the Securities and 

Exchange Commission (“SEC”) of Regulation AB in 2005, which established uniform disclosure 

 

15 The capitalization rate is an indication of a property’s value and its expected income. Capitalization rates are used by investors 

to determine a return on investment. 

National Apartment Sales Volume and Cap Rates

$0

$5

$10

$15

$20

$25

$30

$35

$40

2005Q12005Q2

2005Q32005Q4

2006Q1

2006Q22006Q32006Q4

2007Q1

2007Q22007Q32007Q4

2008Q12008Q22008Q32008Q420091Q20092Q2009Q32009Q42010Q1

2010Q2

2010Q32010Q42011Q12011Q22011Q32011Q4

2012Q12012Q22012Q32012Q4

Billions

5.5%

5.7%

5.9%

6.1%

6.3%

6.5%

6.7%

6.9%

7.1%

7.3%

7.5%

 Sales 

Cap Rate
 

10 

 

requirements for all publicly registered CMBS transactions; and (5) the most recent changes to Regulation 

AB proposed by the SEC that are anticipated to be finalized in 2013. 

In 2012, Fannie Mae continued to rely on its securitization activities for new production, using MBS as 

the primary execution to further its mission to provide liquidity and stability to the multifamily market. 

This occurred through three primary activities: 

 Fannie Mae issued $33.1 billion in multifamily MBS securities in 2012, which accounted for 98% 

of its multifamily production. 

 In an effort to improve the market acceptance of multifamily MBS, in 2012 Fannie Mae issued 

$10 billion of MBS structured securities backed by multifamily MBS previously purchased by 

Fannie Mae. In 2013, Fannie Mae will continue to market its MBS structured product offerings. 

 The company continued to securitize approximately $4 billion of whole loans held in portfolio 

into multifamily MBS securities in 2012 in order to increase liquidity and meet regulatory limits 

established for Fannie Mae's portfolio. Approximately $2.2 billion of these securitized seasoned 

loans were sold through four REMIC transactions as part of Fannie Mae’s GeMSTM program. 

In 2010, proposals for new and enhanced securities disclosure were circulated by the SEC and industry 

groups. In 2011, several rules were proposed by regulatory agencies. In some cases rules were finalized 

and issued; in other cases final rules have not yet been issued. All are intended to require issuers of asset 

and mortgage-backed securities to provide greater transparency about the securities they are issuing. The 

SEC has also stated that it is considering whether to require issuers of privately placed asset and 

mortgage-backed securities to provide the same disclosures that are required of issuers of publicly 

registered securities, although no such requirement has yet been formally proposed. This change could 

bring greater uniformity of disclosure practices to all asset and mortgage-backed securities. In addition, 

the concept of risk retention in securitization structures was introduced by the Dodd-Frank legislation and 

rules were proposed and circulated for comment in 2011, however they have not been finalized.16 Fannie 

Mae believes that all of these activities could lead to further standardization of disclosure practices for 

securitizations. 

9. Describe trends in the delinquency and default rates of mortgages secured by housing for 

low- and moderate-income families that have been purchased by the corporation, including 

a comparison of such trends with delinquency and default information for mortgage 

products serving households with incomes above the median level that have been purchased 

by the corporation, and evaluate the impact of such trends on the standards and levels of 

risk of mortgage products serving low- and moderate-income families. 

Delinquency and Default Trends Based on 2011 Performance Data17

An analysis of the performance of single family mortgage loans serving low- and moderate-income 

borrowers18 shows that these loans consistently perform below the performance of loans serving 

 

16 Fannie Mae has always retained credit risk on virtually all its mortgage-backed securities, pursuant to its guaranty of such 

securities.

17 Serious delinquency performance information is based on acquisitions through November 2011. Default performance is based 

on acquisitions through December 2011. Performance is observed through November 2012. 

18 Since 2010, Fannie Mae no longer tracks unit-level affordability data. To ensure consistency comparing loans from 2000 to 

2011, this analysis is based upon the borrowers’ income relative to the area median income. Additionally, this analysis only 

pertains to owner occupied principal residences. 
 

11 

 

borrowers with incomes above the median level. The chart below compares 90-day delinquencies19 and 

defaults20 by acquisition year on loans made to low- and moderate-income borrowers as compared to 

loans made to borrowers with incomes above the median level by acquisition year. For example, in 2011, 

loans made to low- and moderate-income families were 137% more likely to become 90-days delinquent 

and 80% more likely to default than loans made to families with incomes above the median level. This 

analysis is based on income relative to area median income and does not control for other risk 

dimensions, such as LTV or credit history. 

Relative 90-Day Delinquency and Default Rates between Single Family Loans Serving Low- and 

Moderate-Income Families and Loans Serving Households with Incomes above the Median 

Level by Year21

Acquisition 

Year 

Increased 

Likelihood of 90-

Day Delinquency 

Increased 

Likelihood of 

Default 

2001 99% 156%

2002 129% 195%

2003 157% 175%

2004 160% 113%

2005 122% 38%

2006 119% 18%

2007 50% 24%

2008 46% 45%

2009 108% 95%

2010 121% 91%

2011 137% 80% 

Sample Used: Unseasoned, conforming, conventional, owner occupied, first liens, non-reverse mortgages, excluding 

Growing-Equity Mortgages, Graduated Payment Mortgages and loans missing affordability data 

10. Describe in the aggregate the seller and servicer network of the corporation, including the 

volume of mortgages purchased from minority-owned, women-owned, and communityoriented lenders, and any efforts to facilitate relationships with such lenders. 

Fannie Mae has selling and servicing relationships with 2,482 single family and 115 multifamily primary 

market lenders through which the company both purchases loans for its portfolio and issues MBS. The 

following table sets forth the volume of mortgages purchased in 2012 from single family and multifamily 

lenders identified as minority- or women-owned lenders, women-owned lenders and community-oriented 

lenders. 

 

19 This means 90-day delinquencies occurring within the first 12 months of acquisition. 

20 Default for these purposes is defined as a foreclosure sale, deed-in-lieu of foreclosure, pre-foreclosure sale, or third party sale, 

at any time during the life of the loan. 

21 During the period 2006 through and including 2008, acquisitions of mortgage loans to borrowers of all income categories had a 

higher risk of delinquency and default. 
 

12 

 

Seller/Servicer Type Volume of Mortgages 

Minority- or women-owned $4.9 billion 

Women-owned22 $2.1 billion 

Community-oriented lenders23 $165.5 billion 

 

Efforts to facilitate relationships with single family lenders include formal business alliances or affinity 

agreements in which lenders receive benefits designed to reduce the cost of doing business with Fannie 

Mae.24

11. Describe the activities undertaken by the corporation with nonprofit and for-profit 

organizations [and] with State and local governments and housing finance agencies, 

including how the corporation’s activities support the objectives of comprehensive housing 

affordability strategies under section 105 of the Cranston-Gonzalez National Affordable 

Housing Act.25 

Activities undertaken by the corporation in 2012 with nonprofit and for-profit organizations, State and 

local governments, and HFAs include: 

 The Department of the Treasury (“Treasury”), the Department of Housing and Urban 

Development, and FHFA announced an initiative on October 19, 2009 to provide $23.4 billion of 

liquidity for HFAs. This initiative was designed in collaboration with the GSEs, and consisted of 

two primary programs: a temporary credit and liquidity facilities (“TCLF”) program and the new 

issue bond program (“NIBP”). 

o Fannie Mae worked with Treasury to extend NIBP for an additional year through 

December 31, 2012. 

o As of December 31, 2012, $10.4 billion of the original $12.4 billion of single 

family NIBP bonds were converted and utilized to finance single family mortgage loans. 

The remaining $2 billion was redeemed (as required at program expiration) and the funds 

returned to Treasury. 

o Treasury purchased $2.82 billion in multifamily bonds from State and local HFAs in 

December 2009 to finance multifamily housing. These funds were held in escrow until 

the agencies were able to draw upon the funds to finance multifamily loans. As of 

December 31, 2012, $2.69 billion of these bonds converted and were utilized to finance 

long term multifamily mortgage loans. In addition, Treasury allowed for unused single 

family funds to be utilized for multifamily loans through the expiration of the program on 

December 31, 2012. State and local agencies utilized $75 million of unused single family 

 

22 Some of these women-owned lenders also identified as another minority group such as African-American, Hispanic, AsianPacific or Indian-Alaskan. 

23 For these purposes, a “community-oriented lender” is defined as a financial institution with total assets of less than $1.186 

billion. This definition is consistent with the definition of “small bank” under the Community Reinvestment Act implementing 

regulations at 12 C.F.R. § 228.12, as in effect during 2012.

24 These agreements do not preclude members from doing business through other secondary market channels. 

25 Under Section 105, comprehensive housing affordability strategies include, among other things: (1) efforts to address 

homelessness and meet the needs of homeless persons; (2) the provision of housing for different categories of residents, such as 

very low-income, low-income, and moderate-income families, the elderly, single persons, large families, residents of nonmetropolitan areas, families who are participating in an organized program to achieve economic independence and selfsufficiency, and other categories of persons; (3) combined efforts with private industry, nonprofit organizations and public 

institutions to deliver safe and adequate housing; (4) encouraging public housing residents to become homeowners; and (5) 

efforts to provide affordable housing through the production of new units, rehabilitation, or acquisition of existing units. 
 

13 

 

funds to finance multifamily projects as part of this initiative. The total funds utilized for 

multifamily loans as of the expiration of the program in December 31, 2012, was 

approximately $2.8 billion. 

o Due to continued weak economic conditions and limited financing options for some 

housing finance agencies, Fannie Mae worked with Treasury to establish criteria for 

HFAs to remain in the TCLP for an additional three years through December 31, 

2015. HFAs interested in extension submitted plans to reduce their TCLP exposure by 

12/31/15. These plans were reviewed by the GSEs and approved by Treasury prior to 

granting any extensions. Six of the original thirteen TCLP participants were granted 

extensions. As of November 30, 2012 the total outstanding principal balance under the 

TCLF program was $3.6 billion.

 Fannie Mae purchased 9,199 loans from HFAs in 2012, with a UPB of $1,622,380,000. 

 Fannie Mae invested $14.8 million nationwide in support of housing recovery efforts. Our funds 

are being leveraged by nonprofit partners focused on foreclosure prevention, sustainable 

homeownership, neighborhood stabilization, affordable housing and the prevention of 

homelessness. 

 Fannie Mae facilitated the sale of approximately 38 multifamily real estate owned properties 

comprised of approximately 2,500 units to nonprofits, public entities, and affordable housing 

developers. It is our understanding that over 160 of the units will be used for permanent 

supportive housing for people who have been homeless. 

 One hundred foreclosed Multifamily properties were marketed to 70 nonprofit, public entity, and 

affordable housing developer organizations for potential purchase to convert into affordable 

housing. 

 Fannie Mae helped provide financing for over 18,000 Low-Income Housing Tax Credit 

(“LIHTC”) units of affordable housing by providing almost $715 million for debt financing on 

LIHTC projects via our lending partners. 

 Fannie Mae supported its ongoing investment in 4,700 affordable housing LIHTC projects 

(328,001 LIHTC Units), through approximately 300 investment funds. Almost 2,000 of those 

projects were developed, and are managed, by local non-for-profit developers. In 2012, Fannie 

Mae funded over $28 million in deferred capital contributions to its LIHTC partners for the 

benefit of the projects. 

One of the purposes of the Cranston-Gonzalez National Affordable Housing Act is to extend and 

strengthen partnerships among all levels of government and the private sector in the production and 

operation of housing that is affordable to low- and moderate-income families. Fannie Mae believes that 

the activities listed above support the objectives of the Cranston-Gonzalez National Affordable Housing 

Act. 
Total Total Total Qualifying Low- 

Mortgages Qualifying Mortgages Qualifying Very Mortgages Qualifying Low- Income Area 

Eligible To Low-Income Eligible To Low-Income Eligible To Income Area Purchase 

Qualify As Purchase Qualify As Very Purchase Qualify As Low- Purchase Money 

Low-Income Money Low-Income Money Income Area Money Goal Subgoal 

Purchase Mortgages Purchase Mortgages Purchase Mortgages Mortgages 

Money Money Money

Purchase of Single-Family Mortgages Owner-Occupied 1-Unit Properties/Mortgages: UPB ($ Millions) $141,900 $21,570 $141,900 $4,621 $141,900 $22,963 $13,76 Number of Mortgages 629,158 160,905 629,158 46,111 629,158 138,660 81,14

 Owner-Occupied 2-4 Unit Properties/Mortgages: UPB ($ Millions) $1,239 $246 $1,239 $35 $1,239 $658 $54 Number of Mortgages 4,244 1,394 4,244 329 4,244 2,493 1,99

Missing Affordability Data Adjustments Owner-Occupied Mortgages in 1-4 Unit Properties: Number of Mortgages With Missing Data 1,072 1,072 12 

 Mortgages Where Income Estimation is Possible Not subject to the Cap 0 0 0 0 0 0 

 Subject to the Cap 1,015 6 1,015 1 11 3 

 Market Determined Cap 5,580 5,580 5,580 

 Missing Data Adjustment for Affordability Estimation 6 1 3 

Total Single Family Owner-Occupied Mortgages in 1-4 Unit Properties: UPB ($ Millions) $143,139 $21,816 $143,139 $4,656 $143,139 $23,621 $14,30 Number of Mortgages 633,402 162,299 633,402 46,440 633,402 141,153 83,14

 Number of Mortgages (Adjusted) 633,402 162,305 633,402 46,441 633,402 141,156 83,14

Goals Performance Fannie Mae's Single-Family Goals 23% 7% 20%  Goals Performance Percentage 25.62% 7.33% 22.29% 

 Fannie Mae's Single-Family Subgoal 11% Subgoal Performance Percentage 13.13%

Table 1A

Fannie Mae's Mortgage Purchases by Mortgage Type and Housing Goal Status

Summary Table on Single-Family Housing Goal Performance

1MHA Modification loans are included in all Single-Family tables where applicable. An Enterprise's modification of a loan in accordance with the Make Home Affordable program announced on March 4, 2009, that is held in the Ent

in a pool backing a security guaranteed by the Enterprise, shall be treated as a purchase of a refinance mortgage for the purposes of the housing goals.

For Calendar Year 2012

Mortgages may count toward more than one goal. On certain tables, sum of entries may not equal totals due to rounding.
All Mortgage 

Purchases

Purchases of Multifamily Mortgages

Multifamily 5-50 Unit Properties: 

UPB ($ Million) $971 $287 $1,970 

Number of Mortgages 536 166 951

Number of Properties 850 850 978

Number of Units 16,801 5,732 26,579

Multifamily > 50 Unit Properties:

UPB ($ Million) $17,350 $3,859 $30,942 

Number of Mortgages 1,788 542 2,474

Number of Properties 2,250 2,250 2,488

Number of Units 346,409 96,935 474,677

Missing Affordability Data Adjustments

Rental Unit Affordability Estimation 

Eligible Units Qualifying Units Eligible Units Qualifying Units

Units in Multifamily Properties:

Number of Units with Missing Data 32,360 32,360 N/A

Units Where Rent Estimation is Not Possible 1,096 1,096 N/A

Units Where Rent Estimation is Possible 31,264 31,264 N/A

Not Subject to Cap 30,969 12,525 30,969 6,131 N/A

Subject to Cap 295 190 295 80 N/A

10% Cap 50,126 50,126 N/A

Adjustments to Number of Units for:

Missing Data 12,714 6,211 N/A

Total Multifamily:

UPB ($ Million) $18,321 $4,146 $32,912 

Number of Mortgages 2,324 707 3,425

Number of Properties 3,100 3,100 3,466

Number of Units 363,210 102,667 501,256

Number of Units (Adjusted) 375,924 108,878 501,256

Goals Performance

Fannie Mae's Multifamily Goals (units) 285,000 80,000

Goal Performance (units) 375,924 108,878

Units may count toward more than one goal. On certain tables, sum of entries may not equal totals, due to rounding.

Qualifying Low-Income Purchases Qualifying Very Low-Income 

Purchases

Table 1B

Fannie Mae's Mortgage Purchases by Property Size and Housing Goal Status

Summary Table on Multifamily Housing Goal Performance

For Calendar Year 2012
Total Mortgages Eligible Qualifying Low-Income

To Qualify as Refinance Mortgages1 All Mo

Low-Income Refinance1

Purchase of Loan Modifications of AtRisk Mortgages Owner-Occupied 1-Unit Properties/Mortgages: UPB ($ Millions) $6,145 $3,907  Number of Mortgages 29,762 22,114  Owner-Occupied 2-4 Unit Properties/Mortgages: UPB ($ Millions) $361 $154 

 Number of Mortgages 1,160 632  Total Loan Modifications of At-Risk Mortgages: UPB ($ Millions) $6,506 $4,061 

 Number of Mortgages 30,922 22,746 that is held in the Enterprise's portfolio or that is in a pool backing a security guaranteed by the Enterprise, shall be treated asa mortgage purchase for the purposes of the housing goals.

For Calendar Year 2012

1An Enterprise's modification of a loan in accordance with the Make Home Affordable program announced on March 4, 2009,

Table 1C

Fannie Mae's Mortgage Purchases by Mortgage Type and Housing Goal Status

Mortgages from At-Risk Loans that were Modified
Qualifying Qualifying Very Qualifying Low- Qualifying Total Purchase Total Ref

Low-Income Low-Income Income Area Low-Income Money Mortga

Purchase Money Purchase Money Purchase Money Refinance Mortgages Acqui

Mortgages Mortgages Mortgages Mortgages Acquired

Income No More Than 50% of Median Income $UPB(Millions) $4,656 $4,656 $2,566 $21,149 $4,791 

 Number of Mortgages 46,440 46,440 25,232 176,346 48,150 

Portion of Qualifying or Total Mortgages Acquired 28.61% 100.00% 17.88% 29.13% 6.78% 

Income More Than 50% But No More Than 60% of Median Income $UPB(Millions) $4,569 $0 $2,353 $16,702 $4,718 

 Number of Mortgages 35,121 0 17,594 121,210 36,614 

Portion of Qualifying or Total Mortgages Acquired 21.64% 0.00% 12.46% 20.02% 5.15% 

Income More Than 60% But No More Than 80% of Median Income $UPB(Millions) $12,591 $0 $6,264 $48,375 $13,035 

 Number of Mortgages 80,738 0 39,094 307,245 84,678 

Portion of Qualifying or Total Mortgages Acquired 49.74% 0.00% 27.70% 50.76% 11.92% 

Income More Than 80% But No More Than 100% of Median Income $UPB(Millions) $0 $0 $6,975 $0 $15,598  Number of Mortgages 0 0 36,250 0 84,403 

Portion of Qualifying or Total Mortgages Acquired 0.00% 0.00% 25.68% 0.00% 11.88% 

Income More Than 100% But No More Than 120% of Median Income $UPB(Millions) $0 $0 $1,328 $0 $16,610  Number of Mortgages 0 0 6,565 0 79,238 

Portion of Qualifying or Total Mortgages Acquired 0.00% 0.00% 4.65% 0.00% 11.15% 

Income More Than 120% of Median Income $UPB(Millions) $0 $0 $4,134 $0 $102,126  Number of Mortgages 0 0 16,416 0 375,755 

Portion of Qualifying or Total Mortgages Acquired 0.00% 0.00% 11.63% 0.00% 52.90% 

Missing $UPB(Millions) $0 $0 $0 $0 $290 

 Number of Mortgages 6 1 5 510 1,499 

Portion of Qualifying or Total Mortgages Acquired 0.00% 0.00% 0.00% 0.08% 0.21% 

All Income Levels2

 $UPB(Millions) $21,816 $4,656 $23,621 $86,226 $157,167 

 Number of Mortgages 162,305 46,441 141,156 605,311 710,337 

Portion of Qualifying or Total Mortgages Acquired 100.00% 100.00% 100.00% 100.00% 100.00% 

1Based on actual Borrower Incomes before affordability estimation. Mortgage where affordability was estimated are included in "Missing".2Includes Missing.

By Income Class of Mortgagor(s)1

For Calendar Year 2012

Table 2

Distribution of Single-Family Owner-Occupied Mortgages

Purchased by Fannie Mae
Qualifying Low-Income 

Purchases

Qualifying Very LowIncome PurchasesTotal Units Financed

Affordable At No More Than 30% Of Median Income

$UPB(MILLIONS) $1,396 $1,396 $1,396 

Number of Units 25,292 25,292 25,292

Affordable At More Than 30% but No More than 50% Of Median Income

$UPB(MILLIONS) $2,750 $2,750 $2,750 

Number of Units 77,375 77,375 77,395

Affordable At More Than 50% but No More than 60% Of Median Income

$UPB(MILLIONS) $5,205 $5,205 

Number of Units 116,934 116,946

Affordable At More Than 60% but No More than 80% Of Median Income

$UPB(MILLIONS) $8,970 $8,970 

Number of Units 143,609 143,609

Affordable At More Than 80% but No More than 100% Of Median Income

$UPB(MILLIONS) $5,864 

Number of Units 63,776

Affordable At More Than 100% but No More than 120% Of Median Income

$UPB(MILLIONS) $2,561 

Number of Units 22,537

Affordable At More Than 120% Of Median Income

$UPB(MILLIONS) $4,070 

Number of Units 19,341

Tenant Rent Missing

$UPB(MILLIONS) $2,095 

Number of Units 32,360

All Income Levels2

$UPB(MILLIONS) $18,321 $4,146 $32,912 

Number of Units 363,210 102,667 501,256

Portion of Qualifying or Total Units Financed 100.00% 100.00% 100.00%

Table 3

Distribution of Rental Units

Financed by Multifamily Mortgages Purchased by Fannie Mae

By Affordability of Rent1

For Calendar Year 2012

Portion of Qualifying or Total Units Financed 6.96% 24.63% 5.05%

Portion of Qualifying or Total Units Financed 21.30% 75.37% 15.44%

Portion of Qualifying or Total Units Financed 32.19% 23.33%

Portion of Qualifying or Total Units Financed 39.54% 28.65%

Portion of Qualifying or Total Units Financed 12.72%

Portion of Qualifying or Total Units Financed 4.50%

Portion of Qualifying or Total Units Financed 3.86%

1

Based on actual rents before affordability estimation. Units where affordability was estimated, including all units in senior housing facilities and cooperatives, are 

included in "Tenant Rent Missing."

2

Includes Missing.

Portion of Qualifying or Total Units Financed 6.46%
Family Income <= 

100% of Area 

Median1

Family Income > 

100% of Area 

Median1

Family Income <= 

100% of Area 

 Median1

Family Income > 

100% of Area 

 Median1

Tract Income <= 80% of Area Median $UPB(Millions) $1,658 $1,738 $3,632 $3,724 

 Number of Mortgages 11,644 7,158 26,308 15,823  Percentage of Eligible 19.13% 11.76% 43.17% 25.92% 

80% < Tract Income < 100% of Area Median and Tract >= 30% Minority $UPB(Millions) $1,002 $0 $2,554 $0 

 Number of Mortgages 6,426 0 15,782 0  Percentage of Eligible 15.71% 0.00% 38.58% 0.00% 

80% < Tract Income < 100% of Area Median and Tract < 30% Minority $UPB(Millions) $1,469 $0 $0 $0 

 Number of Mortgages 10,789 0 0 0 

 Percentage of Eligible 17.17% 0.00% 0.00% 0.00% 

Tract Income >= 100% of Area Median 2

 $UPB(Millions) $7,844 $0 $0 $0 

 Number of Mortgages 47,227 0 0 0 

 Percentage of Eligible 10.07% 0.00% 0.00% 0.00% 

Total $UPB(Millions) $11,972 $1,738 $6,186 $3,725  Number of Mortgages 76,086 7,158 42,090 15,823 

 Percentage of Eligible 12.01% 1.13% 6.65% 2.50% 

Table 4

Fannie Mae Single-Family Owner-Occupied Mortgage Purchases

Qualifying for the Low-Income Area Purchase Goal

by Method of Qualification

For Calendar Year 2012

Tract is in a Designated Disaster Area Tract is not in a Designated Disaster Area

2Includes tracts with missing median incomes or missing percent minority.1Includes mortgages where affordability was estimated.
Qualifying Qualifying Very Qualifying Low- Qualifying Total Purchase Total Refinance Total Mortgages

Low-Income Low-Income Income Area Low-Income Money Mortgages Acquired

Purchase Money Purchase Money Purchase Money Refinance Mortgages Acquired

Mortgages Mortgages Mortgages Mortgages Acquired

American Indian or Alaskan Native2

 $UPB(Millions) $89 $23 $100 $358 $424 $1,370 $1,794 

 Number of Mortgages 618 212 575 2,525 1,955 7,128 9,083

 

 Portion of Qualifying or Total 

Mortgages Acquired

0.38% 0.46% 0.41% 0.42% 0.28% 0.25% 0.25%

 

Asian2

 $UPB(Millions) $2,420 $539 $3,023 $6,426 $15,216 $56,697 $71,913 

 Number of Mortgages 13,806 4,246 14,207 32,525 54,611 193,718 248,329

 

 Portion of Qualifying or Total 

Mortgages Acquired

8.51% 9.14% 10.06% 5.37% 7.69% 6.74% 6.92%

 

Black or African American2

 $UPB(Millions) $566 $138 $741 $3,734 $3,246 $14,319 $17,565 

 Number of Mortgages 4,361 1,381 4,838 26,348 15,904 76,171 92,075

 

 Portion of Qualifying or Total 

Mortgages Acquired

2.69% 2.97% 3.43% 4.35% 2.24% 2.65% 2.57%

 

Native Hawaiian or Other Pacific 

Islander

2

 $UPB(Millions) $81 $19 $93 $319 $403 $1,629 $2,033 

 Number of Mortgages 517 164 484 1,835 1,725 6,714 8,439

 

 Portion of Qualifying or Total 

Mortgages Acquired

0.32% 0.35% 0.34% 0.30% 0.24% 0.23% 0.24%

 

White - Hispanic or Latino3

 $UPB(Millions) $1,431 $380 $1,641 $6,056 $7,766 $29,614 $37,379 

 Number of Mortgages 11,036 3,795 10,853 39,504 38,502 144,894 183,396

 

 Portion of Qualifying or Total 

Mortgages Acquired

6.80% 8.17% 7.69% 6.53% 5.42% 5.04% 5.11%

 

White - Non Hispanic or Latino

 $UPB(Millions) $15,586 $3,258 $15,846 $59,166 $113,501 $441,173 $554,673 

 Number of Mortgages 120,729 33,797 98,586 437,028 531,441 2,109,631 2,641,072

 

 Portion of Qualifying or Total 

Mortgages Acquired

74.38% 72.77% 69.84% 72.20% 74.82% 73.35% 73.64%

 

Two or More Minority Races4

 $UPB(Millions) $9 $2 $11 $54 $48 $281 $329 

 Number of Mortgages 54 16 56 332 196 1,225 1,421

 

 Portion of Qualifying or Total 

Mortgages Acquired

0.03% 0.03% 0.04% 0.05% 0.03% 0.04% 0.04%

 

Joint - either Borrower or Co-Borrower 

are of a Minority Group5

 $UPB(Millions) $148 $18 $316 $796 $3,000 $11,876 $14,876 

 Number of Mortgages 935 163 1,472 4,844 10,787 45,893 56,680

 

 Portion of Qualifying or Total 

Mortgages Acquired

0.58% 0.35% 1.04% 0.80% 1.52% 1.60% 1.58%

 

Information not Provided by Borrower or 

Co-Borrower6

 $UPB(Millions) $1,486 $278 $1,850 $8,794 $13,562 $66,805 $80,367 

 Number of Mortgages 10,248 2,667 10,086 56,168 55,206 282,971 338,177

 

 Portion of Qualifying or Total 

Mortgages Acquired

6.31% 5.74% 7.15% 9.28% 7.77% 9.84% 9.43%

 

Not Applicable

 $UPB(Millions) $0 $0 $0 $21 $1 $60 $61 

 Number of Mortgages 1 0 0 128 5 294 299

 

 Portion of Qualifying or Total 

Mortgages Acquired

0.00% 0.00% 0.00% 0.02% 0.00% 0.01% 0.01%

 

Data not Provided by Loan Seller

 $UPB(Millions) $0 $0 $0 $502 $1 $1,055 $1,056 

 Number of Mortgages 0 0 0 4,074 5 7,574 7,579

 

 Portion of Qualifying or Total 

Mortgages Acquired

0.00% 0.00% 0.00% 0.67% 0.00% 0.26% 0.21%

 

Total

 $UPB(Millions) $21,816 $4,656 $23,621 $86,226 $157,167 $624,880 $782,047 

 Number of Mortgages 162,305 46,441 141,156 605,311 710,337 2,876,213 3,586,550

 

 Portion of Qualifying or Total 

Mortgages Acquired

100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

 

4

The loan is classified as "Two or More Minority Races" where: the borrower is identified as two or more minority races and either there is no co-borrower or the co-borrower is identified as one or more

minority races, or one borrower's race is missing and the other borrower is identified as two or more minority races.

5

If either the borrower or co-borrower is identified as one or more minority race(s) and the other borrower is identified as White, the loan is classified as "Joint."

6

This category consists of mortgages where borrower and co-borrower race information is not provided in mail, internet, or telephone application, even if ethnicity data are reported.

Hispanic or Latino. In this table, the White race category is further categorized as either "Hispanic or Latino," or "Not Hispanic or Latino." Table 5B shows the ethnicity distribution of all loans acquired.

2

If the borrower and co-borrower are both identified as the same minority race or different minority races, the loan is classified as the race of the borrower.

3

If the loan is classified as White (see footnote 1) and if either borrower or co-borrower is identified as Hispanic or Latino, the loan is classified as "White - Hispanic or Latino." The category "White - NonHispanic or Latino" includes loans where borrower and co-borrower are both identified as "Not Hispanic or Latino" or when the ethnicity is missing for both borrowers.

combination of, and up to, 5 race categories: (1) American Indian or Alaska Native, (2) Asian, (3) Black or African American, (4) Native Hawaiian or Other Pacific Islander, and (5) White. A borrower or coborrower identified as both White and one minority race is classified as the minority race. If race is known for one borrower but not the other borrower, the loan is classified according to the known race. A

loan where one borrower is identified as White and the race of the other borrower is missing, or where both the borrower and co-borrower are identified as White, is categorized in one of the two White

categories. Separately, ethnicity associated with a loan also is based on data for the borrower and, if any, co-borrower. Borrower and co-borrower may choose either (1) Hispanic or Latino or (2) Not

For Calendar Year 2012

1

Borrowers are asked to report both Race and Ethnicity. Race associated with the loan is based on data for the borrower and, if any, co-borrower. Borrower and co-borrower may be identified with any

Table 5A

Distribution of Single-Family Owner-Occupied Mortgage Purchases

By Race of Borrower(s) on Loan Application1
Qualifying Qualifying Very Qualifying Low- Qualifying Total Purchase 

Low-Income Low-Income Income Area Low-Income Money 

Purchase Money Purchase Money Purchase Money Refinance Mortgages 

Mortgages Mortgages Mortgages Mortgages Acquired

Borrower and Co-Borrower are Hispanic or Latino: $UPB(Millions) $1,448 $399 $1,577 $6,329 $6,0 Number of Mortgages 11,202 3,996 10,700 41,365 32,2

Portion of Qualifying or Total Mortgages Acquired 6.90% 8.60% 7.58% 6.83% 4.53

Borrower and Co-Borrower are not Hispanic or Latino: $UPB(Millions) $18,807 $3,982 $20,021 $70,442 $135,3 Number of Mortgages 140,364 39,818 119,533 502,307 614,4

Portion of Qualifying or Total Mortgages Acquired 86.48% 85.74% 84.68% 82.98% 86.50

Joint - Either Borrower or Co-Borrower are Hispanic or Latino:2

 $UPB(Millions) $139 $17 $258 $861 $2,5 Number of Mortgages 925 151 1,289 5,310 10,2

Portion of Qualifying or Total Mortgages Acquired 0.57% 0.33% 0.91% 0.88% 1.44

Information not Provided by Borrower or Co-Borrower:3

 $UPB(Millions) $1,422 $256 $1,764 $8,040 $13,1 Number of Mortgages 9,811 2,475 9,629 51,920 53,4

Portion of Qualifying or Total Mortgages Acquired 6.04% 5.33% 6.82% 8.58% 7.53

Not Applicable: $UPB(Millions) $0 $0 $0 $39 

 Number of Mortgages 1 0 0 238 

Portion of Qualifying or Total Mortgages Acquired 0.00% 0.00% 0.00% 0.04% 0.00

Data Not Provided by Loan Seller: $UPB(Millions) $0 $0 $1 $514  Number of Mortgages 2 1 5 4,170 

Portion of Qualifying or Total Mortgages Acquired 0.00% 0.00% 0.00% 0.69% 0.00

Total: $UPB(Millions) $21,816 $4,656 $23,621 $86,226 $157,1 Number of Mortgages 162,305 46,441 141,156 605,311 710,3

Portion of Qualifying or Total Mortgages Acquired 100.00% 100.00% 100.00% 100.00% 100.00

2Joint means one Borrower is of Hispanic or Latino ethnicity and the other is not, in any order.3This category consists of mortgages where borrower and co-borrower ethnicity (as Hispanic/Latino or not) information is not provided in mail, internet, or telephone application, even if race data are reported.

For Calendar Year 2012

1If ethnicity is known for one borrower but not the other, loan is classified according to the known ethnicity.

Table 5B

Distribution of Single-Family Owner-Occupied Mortgage Purchases

By Ethnicity of Borrower(s) on Loan Application1
Qualifying Low-Income 

Purchase Money 

Mortgages

Qualifying Very LowIncome Purchase 

Money Mortgages

Qualifying Low-Income 

Area Purchase Money 

Mortgages

Qualifying Low-Income 

Refinance Mortgages

Total Purchase Money 

Mortgages Acquired

M

All Male:  $UPB(Millions) $7,898 $1,734 $8,408 $23,854 $43,776  Number of Mortgages 58,965 17,304 50,801 167,035 205,762 

Portion of Qualifying or Total 

Mortgages Acquired

36.33% 37.26% 35.99% 27.59% 28.97% 

All Female:  $UPB(Millions) $8,451 $2,138 $7,239 $28,797 $27,301  Number of Mortgages 64,923 21,753 47,196 213,467 149,101 

Portion of Qualifying or Total 

Mortgages Acquired

40.00% 46.84% 33.44% 35.27% 20.99% 

Male and Female:  $UPB(Millions) $4,771 $658 $7,115 $29,009 $79,308  Number of Mortgages 33,395 6,127 38,286 194,189 327,135 

Portion of Qualifying or Total 

Mortgages Acquired

20.58% 13.19% 27.12% 32.08% 46.05% 

Not Applicable:  $UPB(Millions) $0 $0 $0 $17 $1 

 Number of Mortgages 0 0 0 93 2 

Portion of Qualifying or Total 

Mortgages Acquired

0.00% 0.00% 0.00% 0.02% 0.00% 

Not Provided:  $UPB(Millions) $695 $125 $860 $4,540 $6,782  Number of Mortgages 5,021 1,257 4,873 30,436 28,337 

Portion of Qualifying or Total 

Mortgages Acquired

3.09% 2.71% 3.45% 5.03% 3.99% 

Missing:  $UPB(Millions) $0 $0 $0 $9 $0 

 Number of Mortgages 0 0 0 92 0 

Portion of Qualifying or Total 

Mortgages Acquired

0.00% 0.00% 0.00% 0.02% 0.00% 

Total:  $UPB(Millions) $21,816 $4,656 $23,621 $86,226 $157,167 

 Number of Mortgages 162,305 46,441 141,156 605,311 710,337 

Portion of Qualifying or Total 

Mortgages Acquired

100.00% 100.00% 100.00% 100.00% 100.00% 

For Calendar Year 2012

1Borrower and Co-Borrower with a Not Provided or Not Applicable are placed in the specific gender of the Borrower or Co-Borrower.

Table 6

Distribution of Single-Family Owner-Occupied Mortgage Purchases

By Gender of Borrower(s)1
Qualifying Low-Income 

Purchase Money 

Mortgages

Qualifying Very LowIncome Purchase 

Money Mortgages

Qualifying Low-Income 

Area Purchase Money 

Mortgages

Qualifying Low-Income 

Refinance Mortgages

Total Purchase Money 

Mortgages Acquired

M

Minority < 10% 36,086 9,875 21,507 148,366 171,866 10% <= Minority < 20% 39,788 10,938 26,350 138,781 190,190 

20% <= Minority < 30% 25,372 7,124 18,208 86,985 118,041 30% <= Minority < 50% 30,237 8,754 31,783 103,330 130,520 50% <= Minority < 80% 21,157 6,611 28,297 79,218 73,238 80% <= Minority <= 100% 9,664 3,138 14,973 48,627 24,972 

Tract Missing / Unable to Classify 1 0 38 5 1,510 

Total: 162,305 46,441 141,156 605,311 710,337 

For Calendar Year 2012

Table 7

Distribution of Single-Family Owner-Occupied Mortgage Purchases

By Minority Concentration of Census Tract
Qualifying Low- Qualifying Very LowIncome Units Income Units Total Units Financed

Minority < 10% 15,128 4,407 19,688

10% <= Minority < 20% 44,625 9,664 65,985

20% <= Minority < 30% 52,955 10,425 75,176

30% <= Minority < 50% 86,003 20,299 128,028

50% <= Minority < 80% 106,030 30,258 142,466

80% <= Minority <= 100% 58,469 27,614 69,387

Tract Missing / Unable to Classify 0 0 525

Total: 363,210 102,667 501,256

Table 8

Distribution of Fannie Mae's Multifamily Mortgage Purchases

By Minority Concentration of Census Tract

For Calendar Year 2012
Qualifying LowIncome Purchase 

Money Mortgages

Qualifying Very Low

Income Purchase 

Money Mortgages

- Qualifying LowIncome Area 

Purchase Money 

Mortgages

Qualifying LowIncome Refinance 

Mortgages

Total Purchase 

Money Mortgages 

Acquired

Total Refinance 

Mortgages Acquired

Total Mortgages 

Acquired

Income <=50% of Median Income

 Minority < 10% 9,875 9,875 3,517 39,566 10,562 41,037 51,599

 10% <= Minority < 30% 18,062 18,062 7,455 63,242 18,577 65,314 83,891

 30% <= Minority < 50% 8,754 8,754 6,142 30,629 8,996 31,677 40,673

 50% <= Minority < 80% 6,611 6,611 5,244 25,299 6,808 26,320 33,128

 80% <= Minority <= 100% 3,138 3,138 2,874 17,609 3,207 18,503 21,710

 Tract Missing / Unable to Classify 0 0 0 1 0 2 2

 Subtotal 46,440 46,440 25,232 176,346 48,150 182,853 231,003

50% < Income <=60% of MSA Median Income

 Minority < 10% 7,915 0 2,809 30,344 8,503 31,025 39,528

 10% <= Minority < 30% 14,096 0 5,677 44,920 14,615 45,906 60,521

 30% <= Minority < 50% 6,507 0 4,122 20,528 6,715 21,089 27,804

 50% <= Minority < 80% 4,477 0 3,143 15,728 4,604 16,244 20,848

 80% <= Minority <= 100% 2,126 0 1,843 9,690 2,177 10,133 12,310

 Tract Missing / Unable to Classify 0 0 0 0 0 0 0

 Subtotal 35,121 0 17,594 121,210 36,614 124,397 161,011

60% < Income <=80% of MSA Median Income

 Minority < 10% 18,296 0 6,677 78,386 19,643 80,025 99,668

 10% <= Minority < 30% 32,999 0 13,493 117,447 34,373 119,512 153,885

 30% <= Minority < 50% 14,974 0 8,639 52,088 15,635 53,179 68,814

 50% <= Minority < 80% 10,068 0 6,594 38,098 10,498 39,025 49,523

 80% <= Minority <= 100% 4,400 0 3,690 21,222 4,528 22,042 26,570

 Tract Missing / Unable to Classify 1 0 1 4 1 4 5

 Subtotal 80,738 0 39,094 307,245 84,678 313,787 398,465

80% < Income <=100% of MSA Median Income

 Minority < 10% 0 0 6,765 0 20,044 90,769 110,813

 10% <= Minority < 30% 0 0 13,214 0 35,086 135,715 170,801

 30% <= Minority < 50% 0 0 7,766 0 15,647 60,001 75,648

 50% <= Minority < 80% 0 0 5,646 0 9,911 41,193 51,104

 80% <= Minority <= 100% 0 0 2,857 0 3,713 19,831 23,544

 Tract Missing / Unable to Classify 0 0 2 0 2 7 9

 Subtotal 0 0 36,250 0 84,403 347,516 431,919

100% < Income <=120% of MSA Median Income

 Minority < 10% 0 0 493 0 19,001 88,985 107,986

 10% <= Minority < 30% 0 0 1,399 0 33,942 135,883 169,825

 30% <= Minority < 50% 0 0 1,506 0 14,866 60,234 75,100

 50% <= Minority < 80% 0 0 2,071 0 8,729 39,581 48,310

 80% <= Minority <= 100% 0 0 1,092 0 2,696 16,520 19,216

 Tract Missing / Unable to Classify 0 0 4 0 4 12 16

 Subtotal 0 0 6,565 0 79,238 341,215 420,453

120% MSA Median Income < Income

 Minority < 10% 0 0 1,246 0 94,100 393,156 487,256

 10% <= Minority < 30% 0 0 3,317 0 171,608 682,949 854,557

 30% <= Minority < 50% 0 0 3,607 0 68,651 281,537 350,188

 50% <= Minority < 80% 0 0 5,599 0 32,686 153,823 186,509

 80% <= Minority <= 100% 0 0 2,617 0 8,650 49,936 58,586

 Tract Missing / Unable to Classify 0 0 30 0 60 206 266

 Subtotal 0 0 16,416 0 375,755 1,561,607 1,937,362

Borrower Income Missing

 Minority < 10% 0 0 0 70 13 400 413

 10% <= Minority < 30% 3 1 3 156 30 1,038 1,068

 30% <= Minority < 50% 2 0 1 85 10 482 492

 50% <= Minority < 80% 1 0 0 93 2 408 410

 80% <= Minority <= 100% 0 0 0 106 1 314 315

 Tract Missing / Unable to Classify 0 0 1 0 1,443 2,196 3,639

 Subtotal 6 1 5 510 1,499 4,838 6,337

Total: 162,305 46,441 141,156 605,311 710,337 2,876,213 3,586,550

For Calendar Year 2012

Table 9

Distribution of Single-Family Owner-Occupied Mortgage Purchases

Minority Percentage of Census Tract by Income of Borrower
Qualifying LowIncome Purchase 

Money Mortgages

Qualifying Very 

Low-Income 

Purchase Money 

Mortgages

Qualifying LowIncome Area 

Purchase Money 

Mortgages

Qualifying LowIncome Refinance 

Mortgages

Total Purchase 

Money Mortgages 

Acquired

Total Refinance 

Mortgages 

Acquired

Total Mortgages 

Acquired

Alabama 1,553 423 2,287 6,545 8,233 33,037 41,270

Alaska 346 90 223 1,588 1,598 6,759 8,357

Arizona 4,949 1,640 2,316 16,650 23,398 69,256 92,654

Arkansas 767 213 1,149 3,325 4,455 17,315 21,770

California 20,484 5,507 18,510 94,780 92,421 518,730 611,151

Colorado 6,032 1,949 3,275 19,508 23,176 78,856 102,032

Connecticut 2,277 679 3,369 9,167 6,997 34,537 41,534

Delaware 594 209 277 2,436 2,597 9,610 12,207

District of Columbia 546 132 848 1,699 2,131 7,600 9,731

Florida 6,530 1,777 4,453 27,703 42,902 127,520 170,422

Georgia 3,571 1,085 4,596 16,287 18,295 75,240 93,535

Hawaii 584 125 922 2,702 2,633 12,099 14,732

Idaho 1,916 658 649 3,946 5,965 15,529 21,494

Illinois 8,445 2,534 8,133 29,333 30,184 145,786 175,970

Indiana 3,537 1,114 2,226 12,043 12,648 46,870 59,518

Iowa 2,786 872 2,399 8,715 8,463 34,810 43,273

Kansas 1,019 270 332 3,607 4,191 16,988 21,179

Kentucky 1,444 481 1,821 5,299 5,641 22,498 28,139

Louisiana 1,219 303 781 4,462 7,920 28,128 36,048

Maine 258 69 75 2,060 1,432 8,424 9,856

Maryland 3,052 966 1,742 18,453 11,118 68,644 79,762

Massachusetts 5,684 1,499 8,986 20,436 19,199 96,306 115,505

Michigan 5,555 1,776 1,287 23,971 22,616 106,049 128,665

Minnesota 5,154 1,873 1,783 17,031 15,838 63,345 79,183

Mississippi 552 131 572 2,589 3,494 16,293 19,787

Missouri 3,011 938 2,557 13,458 11,139 55,937 67,076

Montana 757 206 936 2,691 3,137 11,852 14,989

Nebraska 1,419 405 1,323 4,592 5,005 19,730 24,735

Nevada 1,976 761 818 5,454 7,854 20,971 28,825

New Hampshire 770 245 276 3,893 2,781 15,012 17,793

New Jersey 3,519 668 6,184 14,330 20,306 92,914 113,220

New Mexico 769 215 539 3,161 3,839 14,419 18,258

New York 5,294 983 9,460 16,856 27,769 104,393 132,162

North Carolina 3,445 996 3,478 14,364 18,383 70,037 88,420

North Dakota 478 103 783 1,099 2,043 5,360 7,403

Ohio 5,599 1,616 1,533 16,414 21,381 72,364 93,745

Oklahoma 1,537 400 1,824 3,429 8,009 18,676 26,685

Oregon 2,817 862 1,514 9,985 12,014 43,495 55,509

Pennsylvania 6,649 1,823 7,934 20,555 25,371 93,645 119,016

Rhode Island 529 141 814 2,522 1,839 10,045 11,884

South Carolina 1,825 495 936 6,782 10,012 32,667 42,679

South Dakota 722 232 210 2,241 2,851 10,113 12,964

Tennessee 2,504 701 3,825 9,221 12,318 41,131 53,449

Texas 8,904 1,972 7,692 20,018 61,973 147,461 209,434

Utah 2,832 812 942 8,418 9,272 32,270 41,542

Vermont 357 96 523 1,229 1,192 5,537 6,729

Virginia 4,675 1,370 2,829 21,623 18,114 90,846 108,960

Washington 6,011 1,806 8,153 20,951 22,897 88,296 111,193

West Virginia 283 76 209 1,248 1,453 6,344 7,797

Wisconsin 6,135 1,997 2,189 24,344 17,971 96,819 114,790

Wyoming 516 134 240 1,489 1,993 5,811 7,804

Guam 4 2 17 2 46 59 105

Puerto Rico 112 10 368 603 1,656 9,357 11,013

Virgin Islands 1 0 38 5 68 231 299

Unable to Geocode 0 0 0 0 106 192 298

Total 162,305 46,441 141,156 605,311 710,337 2,876,213 3,586,550

By State and Territory

For Calendar Year 2012

Table 10A

Distribution of Fannie Mae's

Single-Family Owner-Occupied Mortgage Purchases
Qualifying Low- Qualifying Very LowIncome Units Income Units Total Units Financed

Alabama 5,548 862 6,420

Alaska 112 23 112

Arizona 9,299 1,259 10,652

Arkansas 1,543 229 2,230

California 32,382 5,542 57,495

Colorado 11,540 4,858 13,854

Connecticut 1,688 342 1,995

Delaware 2,230 343 2,289

District of Columbia 2,937 1,571 4,229

Florida 18,078 2,914 32,233

Georgia 12,837 3,600 17,533

Hawaii 430 170 1,702

Idaho 947 296 1,280

Illinois 9,678 1,897 14,010

Indiana 6,679 1,315 7,907

Iowa 3,076 2,261 3,156

Kansas 3,166 887 3,371

Kentucky 3,454 585 3,655

Louisiana 2,241 597 3,408

Maine 56 56 60

Maryland 11,629 4,024 14,889

Massachusetts 3,350 796 6,572

Michigan 7,698 1,230 8,519

Minnesota 5,260 2,133 5,609

Mississippi 1,900 239 2,309

Missouri 8,315 5,194 8,657

Montana 407 33 501

Nebraska 1,966 850 2,102

Nevada 2,975 720 4,080

New Hampshire 2,273 686 2,388

New Jersey 2,922 961 5,052

New Mexico 3,844 201 4,175

New York 13,569 5,481 45,385

North Carolina 14,925 3,748 16,864

North Dakota 354 273 510

Ohio 6,789 2,034 8,130

Oklahoma 5,085 1,797 5,641

Oregon 6,393 1,692 7,067

Pennsylvania 7,826 1,817 11,141

Rhode Island 446 217 687

South Carolina 5,232 697 6,580

South Dakota 1,433 653 1,453

Tennessee 9,190 2,409 11,243

Texas 83,471 26,447 98,496

Utah 4,517 1,942 4,845

Virginia 8,770 2,007 13,418

Washington 8,499 2,505 10,399

West Virginia 412 130 413

Wisconsin 5,694 2,144 5,932

Wyoming 145 . 280

Unable to Geocode . . 328

Total 363,210 102,667 501,256

For Calendar Year 2012

Table 10B

Distribution of Fannie Mae's

Multifamily Mortgage Purchases

By State And Territory
Qualifying Low-Income 

Purchase Money 

Mortgages

Qualifying Very LowIncome Purchase Money 

Mortgages

Qualifying Low-Income 

Area Purchase Money 

Mortgages

Qualifying Low-Income 

Refinance Mortgages

Total Purchase Money 

Mortgages Acquired

M

0% < LTV <= 60% $UPB(Millions) $2,173 $647 $1,816 $24,108 $14,815  Number of Mortgages 19,938 7,538 13,780 197,162 73,709 

Portion of Total 12.28% 16.23% 9.76% 32.57% 10.38% 

60% < LTV <= 80% $UPB(Millions) $11,989 $2,745 $12,919 $33,567 $89,224 

 Number of Mortgages 87,510 26,599 75,445 229,141 390,568 

Portion of Total 53.92% 57.27% 53.45% 37.86% 54.98% 

80% < LTV <= 90% $UPB(Millions) $2,619 $454 $3,204 $8,449 $21,646 

 Number of Mortgages 18,293 4,333 17,634 56,066 93,970 

Portion of Total 11.27% 9.33% 12.49% 9.26% 13.23% 

90% < LTV <= 95% $UPB(Millions) $4,104 $657 $4,648 $4,157 $26,462 

 Number of Mortgages 29,761 6,476 28,011 26,846 124,940 

Portion of Total 18.34% 13.94% 19.84% 4.44% 17.59% 

95% < LTV <= 100% $UPB(Millions) $931 $153 $1,032 $2,951 $4,625 

 Number of Mortgages 6,802 1,495 6,286 18,761 23,737 

Portion of Total 4.19% 3.22% 4.45% 3.10% 3.34% 

100% < LTV $UPB(Millions) $0 $0 $0 $12,994 $159 

 Number of Mortgages 0 0 0 77,335 1,379 

Portion of Total 0.00% 0.00% 0.00% 12.78% 0.19% 

Missing LTV $UPB(Millions) $0 $0 $0 $0 $235 

 Number of Mortgages 0 0 0 0 2,034 

Portion of Total 0.00% 0.00% 0.00% 0.00% 0.29% 

Total $UPB(Millions) $21,816 $4,656 $23,621 $86,226 $157,167 

 Number of Mortgages 162,305 46,441 141,156 605,311 710,337 

Portion of Total 100.00% 100.00% 100.00% 100.00% 100.00% 

For Calendar Year 2012

1 Does not include second mortgages and non-applicable categories.

Table 11

Distribution of Single-Family Owner-Occupied Mortgage Purchases1

By LTV Category
Total Total Total Qualifying Low- Total

Mortgages Qualifying Mortgages Qualifying Very Mortgages Qualifying Low- Income Area Mortgages Eligible To Low-Income Eligible To Low-Income Eligible To Income Area Purchase Eligible To 

Qualify As Purchase Qualify As Very Purchase Qualify As Low- Purchase Money Qualify As 

Low-Income Money Low-Income Money Income Area Money Goal Subgoal Low-Income 

Purchase Mortgages Purchase Mortgages Purchase Mortgages Mortgages Refinance1

Money Money Money

HFA Initiative  Owner-Occupied Mortgages: UPB ($ Millions) $46.15 $35.17 $46.15 $11.90 $46.15 $28.27 $11.76  Number of Mortgages 450 362 450 155 450 262 122 

50% Allowable population of HFA Initiative  Owner-Occupied Mortgages: UPB ($ Millions) $23.07 $17.59 $23.07 $5.95 $23.07 $14.13 $5.88  Number of Mortgages 225 181 225 78 225 131 61 Goals Performance Fannie Mae's Single-Family Goals 23% 7% 20% Goals Performance Percentage 80.44% 34.44% 58.22% Fannie Mae's Single-Family Subgoal 11% Subgoal Performance Percentage 27.11%

1 All loans associated with the HFA Initiative are purchase money mortgages.

Note: When loans financed through the HFA Initiative are included in our scores Fannie Mae's Single-Family Purchase Money goals performance generally increases: Low-Income PMM - 25.64% vs. 25.62% , Very Low-In

Income Area Goal - 22.30% vs. 22.29%, and Low-Income Area Subgoal - 13.13% vs. 13.13%.

Supplemental AMR Table 

HFA Initiative Results

Summary Table on Single-Family Housing Goal Performance

For Calendar Year 2012