Ä 2019 Fannie Mae. Trademarks of Fannie Mae. 

Quarterly Financial Supplement 

Q1 2019

MayÅ1, 2019
Ä 2019 Fannie Mae. Trademarks of Fannie Mae. Q1 2019 Financial Supplement 1

Ç Some of the terms and other information in this presentation are defined and discussed more fully in Fannie MaeÉs Form 10-Q for the quarter ended March

31, 2019 (ÑQ1 2019 Form 10-QÖ) and Form 10-K for the year ended December 31, 2018 (Ñ2018 Form 10-KÖ). This presentation should be reviewed together

with the Q1 2019 Form 10-Q and the 2018 Form 10-K, which are available at www.fanniemae.com in the ÑAbout UsÜInvestor RelationsÜSEC FilingsÖ

section. Information on or available through the company's website is not part of this supplement.

Ç Some of the information in this presentation is based upon information 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. 

Ç Due to rounding, amounts reported in this presentation may not add to totals indicated (or 100%). 

Ç Unless otherwise indicated, data labeled as "YTD 2019" is as of March 31, 2019 or for the first three months of 2019. Data for prior years is as of December 31

or for the full year indicated. 

Ç Note references are to endnotes, appearing on pages 22 to 25. 

Ç Terms used in presentation 

Amortized OLTV ratio: amortized origination loan-to-value ratio, which refers to the current unpaid principal balance of a loan at period end, divided by

the home price at origination of the loan

CAS: Connecticut Avenue Securitiesá

CIRTÄ: Credit Insurance Risk Transferà

CRT: credit risk transfer 

DSCR: debt service coverage ratio

DTI ratio: Debt-to-income ratio

DUSÅ: Fannie MaeÉs Delegated Underwriting and Servicing program

GDP: U.S. gross domestic product

HARPÅ: Home Affordable Refinance Program, which allowed eligible Fannie Mae borrowers with high LTV ratio loans to refinance into more sustainable

loans

HomeReadyÅ: Low down payment mortgage designed for creditworthy low- to moderate-income borrowers, with expanded eligibility for financing homes

in low-income communities. For additional information, see https://www.fanniemae.com/singlefamily/homeready.

LTV ratio: loan-to-value ratio

MSA: metropolitan statistical area

MTMLTV ratio: mark-to-market loan-to-value ratio, which refers to the current unpaid principal balance of a loan at period end, divided by the estimated

current home price at period end

OLTV ratio: origination loan-to-value ratio, which refers to the unpaid principal balance of a loan at the time of origination of the loan, divided by the

home price at origination of the loan

Refi PlusÄ: our Refi Plus initiative, which offered refinancing flexibility to eligible Fannie Mae borrowers

REO: real estate owned 

TCCA: Temporary Payroll Tax Cut Continuation Act of 2011

UPB: unpaid principal balance
Ä 2019 Fannie Mae. Trademarks of Fannie Mae. Q1 2019 Financial Supplement 2

Table of Contents

Financial Overview

Corporate Financial Highlights 4

Market Liquidity 5

Key Market Economic Indicators 6

Treasury Draws and Dividend Payments 7

Single-Family Business

Single-Family Highlights 9

Certain Credit Characteristics of Single-Family Loan Acquisitions 10

Certain Credit Characteristics of Single-Family Conventional Guaranty Book of Business 11

Single-Family Credit Risk Transfer 12

Single-Family Problem Loan Statistics 13

Credit Loss Concentration of Single-Family Conventional Guaranty Book of Business 14

Single-Family Cumulative Default Rates 15

Multifamily Business

Multifamily Highlights 17

Certain Credit Characteristics of Multifamily Loan Acquisitions 18

Certain Credit Characteristics of Multifamily Guaranty Book of Business 19

Multifamily Serious Delinquency Rates and Credit Losses 20

Endnotes

Financial Overview Endnotes 22

Single-Family Business Endnotes 23

Multifamily Business Endnotes 25
Ä 2019 Fannie Mae. Trademarks of Fannie Mae. Q1 2019 Financial Supplement 3

Financial Overview
Ä 2019 Fannie Mae. Trademarks of Fannie Mae. Q1 2019 Financial Supplement 4

Sources of Net Interest Income and Retained Mortgage 

Portfolio Balance

Ç Fannie Mae reported net income of $2.4 billion for Q1 2019,

reflecting the strength of the companyÉs underlying business

fundamentals. 

Ç The decrease in net income in Q1 2019 compared with Q4 2018

was driven primarily by lower credit-related income, an increase in

fair value losses, and lower net interest income during the quarter.

100%

80%

60%

40%

20%

0%

%

Net Interest Income

$600

$500

$400

$300

$200

$100

$0

Retained Mortgage Portfolio ($) Billions

2015 2016 2017 2018 YTD 2019

$345.1

$272.4

$230.8

$179.2 $176.4

Summary of Q1 2019 Financial Results

Corporate Financial Highlights

Key Highlights

($) in millions Q1 2019 Q4 2018 Variance

Net interest income $4,733 $4,973 $(240)

Fee and other income 227 149 78

Net revenues 4,960 5,122 (162)

Investment gains, net 133 259 (126)

Fair value losses, net (831) (539) (292)

Administrative expenses (744) (814) 70

Credit-related income

Benefit for credit losses 650 1,080 (430)

Foreclosed property expense (140) (157) 17

Total credit-related income 510 923 (413)

Temporary Payroll Tax Cut Continuation

Act of 2011 (TCCA) fees (593) (586) (7)

Other expenses, net (408) (307) (101)

Income before federal income taxes 3,027 4,058 (1,031)

Provision for federal income taxes (627) (828) 201

Net income $2,400 $3,230 $(830)

Other comprehensive income (loss) (39) 9 (48)

Total comprehensive income $2,361 $3,239 $(878)

% Net interest income from guaranty fees and other consolidated trust income(1)

Retained mortgage portfolio, at end of period

% Net interest income from portfolios
Ä 2019 Fannie Mae. Trademarks of Fannie Mae. Q1 2019 Financial Supplement 5

3.5M

3.0M

2.5M

2.0M

1.5M

1.0M

0.5M

0.0M

2015 2016 2017 2018 YTD 2019

1.2M

1.4M

1.0M

0.7M

0.1M

1.0M

1.1M

1.2M

1.2M

0.2M

0.6M

0.7M

0.8M

0.8M

0.2M

Market Liquidity

Key Highlights:

Liquidity Provided Providing Liquidity to the Mortgage Market

Fannie Mae provided $102 billion in liquidity to the mortgage market in the first

quarter of 2019, through its purchases of loans and guarantees of loans and

securities, which enabled the financing of approximately 527,000 single-family

home purchases, single-family refinancings, or multifamily rental units.

$16.9B

Rental UPB

$56.3B

Home Purchase UPB

$28.8B

Refinance UPB

Refinancings Home Purchases Rental Units

171K

Rental Units

229K 

Home Purchases

127K 

Refinancings
Ä 2019 Fannie Mae. Trademarks of Fannie Mae. Q1 2019 Financial Supplement 6

7%

6%

5%

4%

3%

2%

1%

0%

Rate (as of period end)

2015 2016 2017 2018 YTD 2019

5.0%

4.7%

4.1% 3.9% 3.8%

2.9%

1.6%

2.2%

2.9%

3.2%

Benchmark Interest Rates U.S. GDP Growth Rate and

 Unemployment Rate(3)

Key Market Economic Indicators

One Year Home Price Change as of Q1 2019(4)

United States 4.5%

5%

4%

3%

2%

1%

0%

Rate (as of period end)

3/31/2016 3/31/2017 3/31/2018 3/31/2019

2.40%

2.74%

2.41%

3.13%

3.46%

3.11%

4.14%

4.44%

4.06%

30-year FRM rate(2) 10-year Treasury rate 30-year Fannie Mae MBS par coupon rate U.S. Unemployment rate Annualized U.S. GDP Growth Rate

Top 10 States by UPB(4)

State

State Home Price 

Growth Rate

Share of Single-Family

Conventional Guaranty

Book

CA 3.76% 19.2%

TX 3.10% 6.4%

FL 5.79% 5.8%

NY 5.28% 4.9%

WA 5.78% 3.7%

IL 3.48% 3.6%

NJ 1.66% 3.5%

VA 2.95% 3.4%

CO 5.65% 3.1%

PA 4.47% 3.0%

State Growth (Decline) Rate: (4.9) to (0.1%) 0.0 to 4.9% 5.0 to 9.9% 10% and above

Single-Family Home Price Growth Rate(4)

8%

6%

4%

2%

0%

Home Price Growth

2015 2016 2017 2018 YTD 2019

4.5%

5.6% 5.6% 5.6%

0.4%
Ä 2019 Fannie Mae. Trademarks of Fannie Mae. Q1 2019 Financial Supplement 7

Treasury Draws and Dividend Payments: 2008 - Q1 2019(5)

Treasury Draws and Dividend Payments

$180

$160

$140

$120

$100

$80

$60

$40

$20

$0

($) Billions

2008-2016 2017 2018 YTD 2019 Total

$116.1

$3.7

$0.0 $0.0

$119.8

$154.4

$12.0

$9.4

$3.2

$179.0

Draws from Treasury(6) Dividend payments to Treasury
Ä 2019 Fannie Mae. Trademarks of Fannie Mae. Q1 2019 Financial Supplement 8

Single-Family Business
Ä 2019 Fannie Mae. Trademarks of Fannie Mae. Q1 2019 Financial Supplement 9

$4,000

$3,000

$2,000

$1,000

$0

UPB ($) Billions

50

40

30

20

10

0

Basis Points

Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019

$2,868 $2,879 $2,889 $2,900 $2,904

42.3 42.5 42.8 43.0 43.3

$200

$150

$100

$50

$0

UPB ($) Billions

60

50

40

30

20

10

0

Basis Points

Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019

$60

$72

$88

$70

$56

$52

$39

$35

$31

$29

42.9

47.8

49.7 48.5

50.4

$112 $110

$122

$101

$85

$(887)M

Fair value 

losses, net Q1 2019 Market Share: New Single-Family

Mortgage-Related Securities Issuances

$1,825M

Net income

$518M 

Credit-related

income

Single-Family Conventional Loan Acquisitions(1)

Single-Family Highlights

SF Conventional Guaranty Book of Business Q1 2019 (1)

$4,039M

Net interest income

$94M

Investment gains,

net

Key Highlights

Average charged guaranty fee on SF conventional guaranty book, net of TCCA (bps)(2)

Average UPB outstanding of single-family conventional guaranty book

Refinance

Purchase

Average charged guaranty fee on new single-family acquisitions, net of TCCA (bps)(2)

Fannie Mae

36%

Freddie Mac

27%

Ginnie Mae

31%

Private-label securities

6%

Ç Single-Family net income was $1.8 billion in Q1 2019,

compared with $2.7 billion in Q4 2018. The decrease in net

income in Q1 2019 was driven primarily by a decrease in

credit-related income and larger fair value losses compared

with Q4 2018.

Ç The single-family conventional guaranty book of business

continued to grow in Q1 2019, while the average charged

guaranty fee (net of TCCA fees) on the single-family

conventional guaranty book increased slightly from the

prior quarter to 43.3 basis points.
Ä 2019 Fannie Mae. Trademarks of Fannie Mae. Q1 2019 Financial Supplement 10

100%

80%

60%

40%

20%

0%

Share of Acquisitions

2015 2016 2017 2018 YTD 2019

45% 44%

56%

65% 66%

30% 33%

20%

12% 14%

19% 19% 22% 22% 20%

800

600

400

200

0

Weighted Average FICO Credit Score

25%

20%

15%

10%

5%

0%

2015 2016 2017 2018 YTD 2019

10.1%

8.7%

10.6%

11.2% 10.8%

748 750 745 743 742

Certain Credit Characteristics of Single-Family Loan Acquisitions

Origination Loan-to-Value Ratio

Certain Credit Characteristics of Single-Family Conventional Loans 

by Acquisition Period

YTD 2019 Acquisition 

Credit Profile 

by Certain Loan Features

Categories are not mutually exclusive Q1 2018 Q2 2018 Q3 2018 Q4 2018

Full Year

2018 Q1 2019

OLTV Ratio

>95%

HomeReadyá(6)FICO Credit

Score < 680(4)

DTI Ratio 

> 45%(5)

Total Unpaid Principal Balance (UPB) ($B) $112.2 $110.5 $122.3 $101.1 $446.1 $85.0 $8.0 $7.8 $9.2 $20.8

Total UPB excluding Refi Plus(3) ($B) $110.3 $109.1 $121.4 $100.3 $441.1 $84.4 $8.0 $7.8 $9.0 $20.8

Weighted Average Origination LTV (OLTV) Ratio 75% 77% 78% 78% 77% 78% 97% 91% 76% 78%

OLTV Ratio > 95% 6% 8% 8% 9% 8% 10% 100% 41% 10% 9%

Weighted Average FICOá Credit Score(4) 743 743 743 742 743 742 732 734 655 735

FICO Credit Score < 680(4) 11% 11% 11% 11% 11% 11% 11% 12% 100% 12%

DTI Ratio > 45%(5) 23% 26% 25% 26% 25% 25% 24% 34% 28% 100%

Fixed-rate 98% 98% 98% 99% 98% 98% 100% 100% 100% 99%

Owner Occupied 89% 89% 89% 89% 89% 90% 100% 100% 94% 90%

HomeReadyá(6) 6% 8% 8% 9% 7% 9% 40% 100% 10% 13%

100%

80%

60%

40%

20%

0%

Weighted Average OLTV

Ratio

25%

20%

15%

10%

5%

0%

2015 2016 2017 2018 YTD 2019

2.6% 2.8%

4.9%

7.5%

9.5%

75% 74% 75% 77% 78%

Weighted Average OLTV Ratio

% OLTV > 95%

Weighted Average FICO Credit Score

% FICO Credit Score < 680

% FICO Credit Score < 680

Cash-out Refinance

Refi Plus(3) including HARP Purchase

Other Refinance

FICO Credit Score(4) Acquisitions by Loan Purpose

% OLTV > 95%
Ä 2019 Fannie Mae. Trademarks of Fannie Mae. Q1 2019 Financial Supplement 11

8%

6%

4%

2%

0%

Serious Delinquency Rate

2015 2016 2017 2018 YTD 2019

1.55%

1.20% 1.24%

0.76% 0.74%

3.06%

2.82%

3.28%

2.69% 2.68%

7.60%

6.39%

6.55%

4.61% 4.50%

0.36% 0.36%

0.53%

0.33%

As of March 31, 2019

Categories are not mutually exclusive

Overall

Book

2004 &

Earlier

2005-

2008

2009-

2016 2017 2018 2019

OLTV 

Ratio > 95% HomeReadyá(6)

FICO Credit

Score < 680(4)

Refi Plus(3)

Including HARP

Total Unpaid Principal Balance (UPB) ($B) $2,904.6 $76.4 $131.5 $1,817.4 $421.8 $410.3 $47.2 $199.9 $64.1 $330.6 $320.7

Average UPB $170,309 $71,542 $122,855 $165,903 $214,982 $227,762 $237,273 $160,107 $184,245 $142,177 $132,660

Share of Single-Family Conventional Guaranty Book 100% 3% 5% 63% 15% 14% 2% 7% 2% 11% 11%

Share of Loans with Credit Enhancement(8) 48% 7% 18% 44% 71% 64% 39% 60% 91% 41% 10%

Serious Delinquency Rate(9) 0.74% 2.68% 4.50% 0.39% 0.26% 0.09% 0.00% 1.51% 0.29% 2.75% 0.69%

Weighted Average Origination LTV (OLTV) Ratio 76% 74% 76% 75% 76% 78% 78% 109% 90% 78% 86%

OLTV Ratio > 95% 7% 6% 10% 7% 5% 8% 9% 100% 42% 12% 30%

Amortized OLTV Ratio(10) 67% 51% 64% 64% 73% 76% 77% 97% 88% 70% 72%

Weighted Average Mark-to-Market LTV Ratio(11) 57% 37% 61% 51% 68% 75% 77% 78% 84% 60% 53%

Weighted Average FICO Credit Score(4) 745 700 695 752 744 742 742 723 736 646 730

FICO Credit Score < 680(4) 11% 36% 39% 9% 11% 11% 10% 21% 12% 100% 21%

Fixed-rate 98% 89% 93% 98% 98% 98% 99% 100% 100% 98% 99%

Certain Credit Characteristics of Single-Family Conventional Guaranty Book of Business

Certain Credit Characteristics of Single-Family Conventional Guaranty Book of Business by Origination Year and Loan Features(1)(7)

Origination Year Certain Loan Features

% MTMLTV > 100%

% FICO Credit Score < 680

Weighted Average MTMLTV

% MTMLTV > 100%

Weighted Average FICO Credit Score

% FICO Credit Score < 680

Total SF Conventional 

Guaranty Book of Business

2009-2019 2005-2008

2004 and Prior

Mark-to-Market Loan-to-Value

(MTMLTV) Ratio(11) Serious Delinquency Rate by Vintage FICO Credit Score(4) (9)

800

600

400

200

0

Weighted Average FICO Credit Score

25%

20%

15%

10%

5%

0%

2015 2016 2017 2018 YTD 2019

12.7% 12.2% 11.8% 11.4% 11.4%

744 745 745 746 745

70%

60%

50%

40%

30%

20%

10%

0%

Weighted Average MTMLTV

10%

8%

6%

4%

2%

0%

2015 2016 2017 2018 YTD 2019

3.3%

1.9%

1.0%

0.5% 0.5%

62% 60% 58% 57% 57%
Ä 2019 Fannie Mae. Trademarks of Fannie Mae. Q1 2019 Financial Supplement 12

$400

$300

$200

$100

$0

UPB ($) Billions

2013 2014 2015 2016 2017 2018 YTD 2019

$40

$76

$102 $86

$27 $30

$222

$189

$240

$265

$206

$54

$44

$45

$32

$233 $239

$331

$410

$338

$91

Single-Family Credit Risk Transfer

Single-Family Loans Included in Credit Risk Transfer

Transactions, Balance of Covered Loans

Lender risk-sharing Connecticut Avenue Securities Credit Insurance Risk Transfer

Single-Family Credit Risk Transfer Issuance

Single-Family Loans with Credit Enhancement

$1,750

$1,500

$1,250

$1,000

$750

$500

$250

$0

UPB ($) Billions

50%

40%

30%

20%

10%

0%

% Single-Family Conventional Guaranty Book

2015 2016 2017 2018 YTD 2019

$429

$628

$927

$1,143

$1,210

15%

22%

32%

39%

42%

UPB outstanding of single-family loans in a CRT transaction(14)

% Single-family conventional guaranty book in a CRT transaction

2017 2018 YTD 2019

Credit Enhancement 

Outstanding UPB in ($) Billions

Outstanding

UPB

% of Book(15)

Outstanding

Outstanding

UPB

% of Book(15)

Outstanding

Outstanding

UPB

% of Book(15)

Outstanding

Primary mortgage insurance &

other(12) $566 20% $618 21% $615 21%

Connecticut Avenue

Securitiesá (CAS)(13) $681 24% $798 27% $832 29%

Credit Insurance Risk

TransferTM (CIRTTM)

(14) $181 6% $243 8% $270 9%

Lender risk-sharing(13) $65 2% $102 4% $108 4%

(Less: loans covered by

multiple credit enhancements) ($335) (12%) ($394) (13%) ($420) (15%)

Total single-family loans with

credit enhancement $1,158 40% $1,367 47% $1,405 48%

Note: CRT issuance volumes are driven by recent acquisition activity.
Ä 2019 Fannie Mae. Trademarks of Fannie Mae. Q1 2019 Financial Supplement 13

$30

$20

$10

$0

UPB ($) Billions

120K

100K

80K

60K

40K

20K

0K

Number of Loan Workouts (Thousands)

2015 2016 2017 2018 YTD 2019

$16.6

$14.4 $14.6

$17.9

$2.4

$4.2

$3.1 $2.1

$20.7

$17.5 $16.7

$19.0

122.3K

103.5K 100.6K

118.1K

70K

60K

50K

40K

30K

20K

10K

0K

REO Ending Inventory

2015 2016 2017 2018 YTD 2019

57K

38K

26K

20K 19K

Single-Family Problem Loan Statistics

Home Retention Solutions(18)

Foreclosure Alternatives(17) Total Loan Workouts

Single-Family Serious Delinquency Rate by State as of March 31, 2019(9)

Single-Family Loan Workouts Single-Family REO Ending Inventory

Single-Family REO Ending Inventory

Top 10 States by UPB

State

Serious

Delinquency

Rate(9)

Average

Months to

Foreclosure(16)

CA 0.34% 19

TX 0.56% 20

FL 1.03% 47

NY 1.38% 65

WA 0.37% 30

IL 0.98% 21

NJ 1.32% 42

VA 0.55% 17

CO 0.23% 18

PA 1.04% 24

State SDQ Rate: Less than 0.50%

0.50% to 0.99%

1.00% to 1.99%

2.00% to 2.99%

3.00% and above

$2.6

15.9K
Ä 2019 Fannie Mae. Trademarks of Fannie Mae. Q1 2019 Financial Supplement 14

46.6%

15.5%

12.7%

10.4%

8.9%

5.9%

63.0%

19.2%

5.8%

3.6%

3.5%

4.9%

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

% of Single-Family Conventional Guaranty Book of

Business by State as of March 31, 2019

% of Single-Family Conventional Guaranty Book of Business(15) % of Single-Family Credit Losses(19)

For the Period Ended

Certain Product Features

Categories are not mutually exclusive 2015 2016 2017 2018 YTD 2019 2015 2016 2017 2018 YTD 2019

Alt-A(20) 3.7% 3.1% 2.5% 1.9% 1.9% 29.3% 24.9% 21.9% 22.4% 21.1%

Interest Only 2.1% 1.7% 1.2% 0.8% 0.7% 18.0% 12.2% 15.7% 15.4% 15.4%

Origination LTV Ratio >95% 7.6% 6.9% 6.6% 6.8% 6.9% 11.1% 15.2% 16.9% 14.9% 11.5%

FICO Credit Score < 680 and OLTV Ratio > 95%(4) 1.9% 1.7% 1.6% 1.4% 1.4% 6.2% 8.1% 8.7% 8.7% 5.5%

FICO Credit Score < 680(4) 12.7% 12.2% 11.8% 11.4% 11.4% 42.5% 48.7% 45.4% 46.3% 37.0%

Refi Plus including HARP 17.6% 15.4% 13.2% 11.4% 11.0% 7.8% 14.0% 15.9% 13.2% 14.1%

California

All Other States

Illinois

Florida

New York

New Jersey

Vintage 2015 2016 2017 2018 YTD 2019 2015 2016 2017 2018 YTD 2019

2009 - YTD 2019 85% 87% 90% 92% 93% 10% 19% 23% 20% 23%

2005 - 2008 10% 8% 6% 5% 4% 78% 65% 65% 66% 67%

2004 & Prior 5% 5% 4% 3% 3% 12% 16% 12% 14% 10%

% of YTD 2019 Single-Family 

Credit Losses by State(19)(21)

California

All Other States

Illinois

Florida

New York

New Jersey

$2.9T $469M
Ä 2019 Fannie Mae. Trademarks of Fannie Mae. Q1 2019 Financial Supplement 15

Single-Family Cumulative Default Rates

Cumulative Default Rates of Single-Family Conventional Guaranty Book of Business by Origination Year(22)

2004 2005 2006 2007 2008 2009* 2010* 2011* 2012* 2013*

2014* 2015* 2016* 2017* 2018* 2019*

16%

14%

12%

10%

8%

6%

4%

2%

0%

C

u

m

ulative Default Rate

Yr1-Q1

Yr1-Q2

Yr1-Q3

Yr1-Q4

Yr2-Q1

Yr2-Q2

Yr2-Q3

Yr2-Q4

Yr3-Q1

Yr3-Q2

Yr3-Q3

Yr3-Q4

Yr4-Q1

Yr4-Q2

Yr4-Q3

Yr4-Q4

Yr5-Q1

Yr5-Q2

Yr5-Q3

Yr5-Q4

Yr6-Q1

Yr6-Q2

Yr6-Q3

Yr6-Q4

Yr7-Q1

Yr7-Q2

Yr7-Q3

Yr7-Q4

Yr8-Q1

Yr8-Q2

Yr8-Q3

Yr8-Q4

Yr9-Q1

Yr9-Q2

Yr9-Q3

Yr9-Q4

Yr10-Q1

Yr10-Q2

Yr10-Q3

Yr10-Q4

Yr11-Q1

Yr11-Q2

Yr11-Q3

Yr11-Q4

Time Since Beginning of Origination Year

2007

2006

2005

2008

2004

2009

2012 2011 2010

* As of March 31, 2019, cumulative default rates on the loans originated in each individual year from 2009-2019 were less than 1%
Ä 2019 Fannie Mae. Trademarks of Fannie Mae. Q1 2019 Financial Supplement 16

Multifamily Business
Ä 2019 Fannie Mae. Trademarks of Fannie Mae. Q1 2019 Financial Supplement 17

% Multifamily guaranty book in a CIRT transaction

Multifamily Highlights

$(8)M

Credit-related

expense

Multifamily Loan Acquisitions

$25

$20

$15

$10

$5

$0

UPB ($) Billions

Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019

$11.3

$14.5

$18.2

$21.4

$16.9

MF Guaranty Book of Business Q1 2019 (1)

$694M

Net interest income

$121M 

Fee and other

income

$56M

Fair value 

gains, net Multifamily Credit Risk Transfer Key Highlights

$400

$300

$200

$100

$0

UPB ($) Billions

90

80

70

60

50

40

30

20

10

0

Basis Points

Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019

$281.3 $287.6

$296.1

$305.9

$314.1

78.9 78.6 77.0 75.4 74.1

Average charged guaranty fee on multifamily guaranty book of business, at end of period

UPB outstanding of multifamily guaranty book of business

$575M 

Net income

Multifamily new business volume

UPB of multifamily loans included in CIRT transactions during the period(2)

Ç Multifamily net income was $575 million in Q1 2019, compared

with $580 million in Q4 2018. Net income for Q1 2019 was driven

by guaranty fee revenue as the multifamily guaranty book

continued to grow. 

Ç Fannie Mae continued to share credit risk with lenders on nearly

100% of the companyÉs new multifamily business volume,

primarily through its Delegated Underwriting and Servicing

(DUSá) program. To complement this program, the company

completed its fifth multifamily Credit Insurance Risk Transferà

(CIRTà) transaction in Q1 2019, which covered loans with a UPB

of $11.7 billion. 

$15

$10

$5

$0

UPB ($) Billions

25%

20%

15%

10%

5%

0%

Share of Multifamily Guaranty Book

Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019

$11.1 $11.0

$11.7

6% 6%

9%

12%

15%
Ä 2019 Fannie Mae. Trademarks of Fannie Mae. Q1 2019 Financial Supplement 18

100%

80%

60%

40%

20%

0%

Share of Acquisitions

2015 2016 2017 2018 YTD 2019

72%

77% 80%

89% 91%

28%

23% 20%

11% 9%

Certain Credit Characteristics of Multifamily Loan Acquisitions

Origination Loan-to-Value Ratio

Certain Credit Characteristics of Multifamily Loans by Acquisition Period

Top 10 MSAs by YTD 2019

Acquisitions UPB Acquisitions by Note Type

Categories are not mutually exclusive 2015 2016 2017 2018 YTD 2019

Total Unpaid Principal Balance (UPB) ($B) $42.4 $55.3 $67.1 $65.4 $16.9

Weighted Average Origination LTV (OLTV) Ratio 68% 68% 67% 65% 63%

Loan Count 2,869 3,335 3,861 3,723 890

% Lender Recourse(3) 99% 99% 100% 100% 100%

% DUS(4) 99% 99% 98% 99% 99%

% Full Interest-Only(5) 20% 23% 26% 33% 45%

Weighted Average OLTV Ratio on Full Interest-Only Acquisitions(5) 58% 57% 58% 58% 58%

Weighted Average OLTV Ratio on Non-Full Interest-Only Acquisitions 70% 71% 70% 68% 68%

% Partial Interest-Only(6) 57% 60% 57% 53% 46%

100%

80%

60%

40%

20%

0%

Share of Acquisitions

2015 2016 2017 2018 YTD 2019

48% 47%

41%

32%

21%

52% 53%

59%

68%

78%

$1.4B

$1.1B

$0.9B

$0.8B

$0.7B

$0.7B

$0.7B

$0.7B

$0.5B

$0.4B

Share of 

Acquisitions:

45.2%

Total UPB:

$7.7B

Variable-rate

Fixed-rate

% Origination LTV less than or equal to 70% (7)

% Origination LTV greater than 70% and less than or equal to 80% (7)

% Origination LTV greater than 80%

New York

Los Angeles

San Diego

Atlanta

Washington, DC

Houston

Dallas

Seattle

Phoenix

Chicago
Ä 2019 Fannie Mae. Trademarks of Fannie Mae. Q1 2019 Financial Supplement 19

As of March 31, 2019

Categories are not mutually exclusive Overall

Book

2004 &

Earlier 2005-2008 2009-2016 2017 2018 2019

Conventional

/ Co-op(8)

Seniors

Housing(8)

Student

Housing(8)

Manufactured

Housing(8)

Privately Owned

with Subsidy(9)

Total Unpaid Principal Balance (UPB) ($B) $314.1 $5.1 $8.0 $154.7 $64.2 $65.1 $16.9 $274.2 $16.6 $12.1 $11.3 $35.7

Loan Count 27,353 1,057 3,732 14,300 3,666 3,708 890 25,038 662 618 1,035 3,718

Average UPB ($M) $11.5 $4.8 $2.2 $10.8 $17.5 $17.6 $19.0 $11.0 $25.0 $19.5 $10.9 $9.6

Weighted Average Origination LTV Ratio 66% 72% 66% 67% 67% 65% 63% 66% 66% 67% 67% 69%

Weighted Average DSCR(10) 2.0 3.0 2.1 2.0 1.9 1.9 1.8 2.0 1.9 1.8 2.1 2.1

% of Multifamily Book 100% 2% 3% 49% 20% 21% 5% 87% 5% 4% 4% 11%

% Fixed rate 85% 16% 49% 89% 82% 89% 90% 87% 60% 83% 88% 72%

% Full Interest-Only 25% 24% 32% 19% 27% 33% 45% 27% 12% 22% 14% 23%

% Partial Interest-Only(6) 49% 5% 16% 47% 57% 54% 46% 48% 50% 65% 55% 33%

% Small Balance Loans(11) 50% 74% 92% 50% 29% 27% 22% 52% 12% 28% 50% 58%

% Lender Recourse(3) 98% 95% 77% 97% 100% 100% 100% 98% 100% 99% 100% 96%

% DUS(4) 98% 97% 86% 98% 97% 99% 99% 98% 98% 100% 100% 95%

Serious Delinquency Rate(12) 0.07% 0.00% 0.42% 0.09% 0.06% 0.00% 0.00% 0.07% 0.04% 0.00% 0.00% 0.09%

2021

Certain Credit Characteristics of Multifamily Guaranty Book of Business

UPB by Maturity Year

Certain Credit Characteristics of Multifamily Guaranty Book of Business by Acquisition Year, Asset Class, or Targeted Affordable Segment(1)

Top 10 MSAs by UPB Multifamily Book of Business 

by Note Type

Acquisition Year Asset Class or Targeted Affordable Segment

100%

80%

60%

40%

20%

0%

Share of Book of Business

2015 2016 2017 2018 YTD 2019

80% 80% 82% 85% 85%

20% 20% 18% 15% 15%

Variable-rate

Fixed-rate

$27.1B

$21.1B

$14.9B

$12.7B

$10.0B

$9.5B

$9.4B

$8.7B

$7.8B

$7.6B

Share of Book

of Business: 

41.0%

Total UPB:

$128.8B

New York

Los Angeles

Dallas

Washington, DC

Houston

Atlanta

Seattle

San Francisco

Phoenix

Chicago

$3.0B

$8.7B

$12.5B

$19.0B

$19.7B

$251.2B

2019

2020

2022

2023

Other

Share of Book

of Business:

100%

Total UPB:

$314.1B 
Ä 2019 Fannie Mae. Trademarks of Fannie Mae. Q1 2019 Financial Supplement 20

6.0

4.0

2.0

0.0

-2.0

-4.0

-6.0

Basis Points

2013 2014 2015 2016 2017 2018 YTD 2019

2.5

(2.3)

(2.7)

(0.2)

(0.7)

0.6

(0.4)

1.4%

1.2%

1.0%

0.8%

0.6%

0.4%

0.2%

0.0%

Serious Delinquency Rate

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD 2019

0.08%

0.63%

0.71%

0.59%

0.24%

0.10%

0.05% 0.07% 0.05%

0.11%

0.06% 0.07%

0.24%

0.39%

0.56%

0.50%

0.18%

0.44%

1.36%

1.20%

0.92%

0.55%

0.34%

0.15%

0.21% 0.21%

0.08%

Multifamily Serious Delinquency Rates and Credit Losses

Serious Delinquency Rates(4)(12)

DUS/Non-DUS Cumulative Credit Loss Rates by Acquisition Year Through YTD 2019 (4)(13)

Credit Loss (Benefit) Ratio(14)

2.0%

1.5%

1.0%

0.5%

0.0%

Credit Loss Rate

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD 2019

0.4%

0.5%

0.9%

1.2%

0.8%

0.3%

0.1%

0.3%

0.4%

0.7%

1.1%

0.9%

Ü% Ü% Ü% Ü% Ü% Ü% Ü% Ü% Ü% Ü% Ü%

0.2%

0.9%

1.4%

0.1%

Ü%

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

DUS Credit Loss Rate Multifamily Total Credit Loss Rate Non-DUS Credit Loss Rate
Ä 2019 Fannie Mae. Trademarks of Fannie Mae. Q1 2019 Financial Supplement 21

Endnotes
Ä 2019 Fannie Mae. Trademarks of Fannie Mae. Q1 2019 Financial Supplement 22

Financial Overview Endnotes

(1) Guaranty fee income includes the impact of a 10 basis point guaranty fee increase implemented in 2012 pursuant to the Temporary Payroll Tax Cut

Continuation Act of 2011, the incremental revenue from which is remitted to Treasury and not retained by the company. 

(2) Refers to the U.S. weekly average fixed-rate mortgage rate according to Freddie Mac's Primary Mortgage Market Surveyá. These rates are reported using the

latest available data for a given period.

(3) Source: Bureau of Economic Analysis. GDP growth rate for 2019 is calculated using the quarterly annualized growth rate for Q1 2019. Annual growth rate is

used for prior periods.

(4) Home price estimates are based on purchase transactions in Fannie-Freddie acquisition and public deed data available through the end of March 2019.

Including subsequent data may lead to materially different results. Home price change is not seasonally adjusted. UPB estimates are based on data available

through the end of March 2019, and the top 10 states are reported by UPB in descending order. 

(5) Under the terms of the senior preferred stock purchase agreement, dividend payments the company makes to Treasury do not offset its prior draws of funds

from Treasury. 

(6) Treasury draws are shown in the period for which requested, not when the funds were received by the company. Draw requests have been funded in the quarter

following a net worth deficit.
Ä 2019 Fannie Mae. Trademarks of Fannie Mae. Q1 2019 Financial Supplement 23

Single-Family Business Endnotes

(1) Single-family conventional loan population consists of: (a) single-family conventional mortgage loans of Fannie Mae; (b) single-family conventional mortgage loans underlying

Fannie Mae MBS; and (c) other credit enhancements that we provide on single-family mortgage assets, such as long-term standby commitments. It excludes non-Fannie Mae singlefamily mortgage-related securities held in our retained mortgage portfolio for which we do not provide a guaranty. Conventional refers to mortgage loans and mortgage-related

securities that are not guaranteed or insured, in whole or in part, by the U.S. government or one of its agencies.

(2) Calculated based on the average guaranty fee rate for our single-family guaranty arrangements during the period plus the recognition of any upfront cash payments over an

estimated average life. Excludes the impact of a 10 basis point guaranty fee increase implemented in 2012 pursuant to the TCCA, the incremental revenue from which is remitted to

Treasury and not retained by us.

(3) "Refi Plus" refers to loans we acquired under our Refi PlusTM initiative, which offered refinancing flexibility to eligible Fannie Mae borrowers who were current on their loans and

who applied prior to the initiativeÉs December 31, 2018 sunset date. Refi Plus had no limits on maximum LTV ratio and provided mortgage insurance flexibilities for loans with LTV

ratios greater than 80%.

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

(5) Population excludes loans acquired under our Refi Plusà initiative.

(6) Refers to HomeReadyá mortgage loans, a low down payment mortgage product offered by the company that is designed for creditworthy low- to moderate-income borrowers, with

expanded eligibility for financing homes in low-income communities. HomeReady allows up to 97% loan-to-value ratio financing for home purchases. The company offers additional

low down payment mortgage products that are not HomeReady loans; therefore, this category is not representative of all high LTV single-family loans acquired or in the singlefamily guaranty book of business for the periods shown. See the ÑOLTV Ratio > 95%Ö category for information on the single-family loans acquired or in the single-family guaranty

book of business with origination LTV ratios greater than 95%.

(7) Calculated based on the aggregate unpaid principal balance of single-family loans for each category divided by the aggregate unpaid principal balance of loans in our single-family

conventional guaranty book of business. Loans with multiple product features are included in all applicable categories.

(8) Percentage of loans in our single-family conventional guaranty book of business, measured by unpaid principal balance, included in an agreement used to reduce credit risk by

requiring collateral, letters of credit, mortgage insurance, corporate guarantees, inclusion in a credit risk transfer transaction reference pool, or other agreement that provides for

our compensation to some degree in the event of a financial loss relating to the loan. Because we include loans in reference pools for our Connecticut Avenue Securities and Credit

Insurance Risk Transfer credit risk transfer transactions on a lagged basis, we expect the percentage of our 2018 and 2019 single-family loan acquisitions with credit enhancements

will increase in the future.

(9) ÑSerious delinquency rate" refers to single-family conventional loans that are 90 days or more past due or in the foreclosure process in the applicable origination year, product

feature, or state, divided by the number of loans in our single-family conventional guaranty book of business in that origination year, product feature, or state.

(10) Amortized OLTV is calculated based on the current UPB of a loan at period end, divided by the home price at origination of the loan. 
Ä 2019 Fannie Mae. Trademarks of Fannie Mae. Q1 2019 Financial Supplement 24

Single-Family Business Endnotes

(11) The average estimated mark-to-market LTV ratio is based on the unpaid principal balance of the loan divided by the estimated current value of the property at period end, which we

calculate using an internal valuation model that estimates periodic changes in home value. Excludes loans for which this information is not readily available.

(12) Refers to loans included in an agreement used to reduce credit risk by requiring primary mortgage insurance, collateral, letters of credit, corporate guarantees, or other agreements

to provide an entity with some assurance that it will be compensated to some degree in the event of a financial loss. Excludes loans covered by credit risk transfer transactions unless

such loans are also covered by primary mortgage insurance. 

(13) Outstanding unpaid principal balance represents the underlying loan balance, which is different from the reference pool balance for CAS and some lender risk-sharing transactions.

(14) Includes mortgage pool insurance transactions covering loans with an unpaid principal balance of approximately $7 billion at issuance and approximately $3.6 billion outstanding

as of March 31, 2019.

(15) Based on the unpaid principal balance (UPB) of the single-family conventional guaranty book of business as of period end. 

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

three months of 2019. Home Equity Conversion Mortgages insured by the Department of Housing and Urban Development are excluded from this calculation.

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

accrued interest and other expenses from the sale proceeds and (b) deeds-in-lieu of foreclosure, which involve the borrowerÉs voluntarily signing over title to the property.

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

restructurings, or repayment plans or forbearances that have been initiated but not completed; (b) repayment plans, reflects only those plans associated with loans that were 60 days

or more delinquent; and (c) forbearances, not including forbearances associated with loans that were less than 90 days delinquent when entered.

(19) Credit losses consist of (a) charge-offs net of recoveries and (b) foreclosed property expense (income). Percentages exclude the impact of recoveries that have not been allocated to

specific loans. 

(20) For a description of our Alt-A loan classification criteria, refer to the glossary in Fannie MaeÉs 2018 Form 10-K. We discontinued the purchase of newly originated Alt-A loans in

2009, except for those that represent the refinancing of a loan we acquired prior to 2009, which has resulted in our acquisitions of Alt-A mortgage loans remaining low and the

percentage of the book of business attributable to Alt-A to continue to decrease over time.

(21) Total amount of single-family credit losses/ (gains) includes those not directly associated with specific loans. Single-family credit losses/ (gains) by state exclude the impact of

recoveries that have not been allocated to specific loans.

(22) Defaults include loan foreclosures, short sales, sales to third parties at the time of foreclosure and deeds-in-lieu of foreclosure. Cumulative Default Rate is the total number of singlefamily 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 March 31, 2019 is not necessarily indicative of the ultimate performance of the loans and performance is

likely to change, perhaps materially, in future periods.
Ä 2019 Fannie Mae. Trademarks of Fannie Mae. Q1 2019 Financial Supplement 25

Multifamily Business Endnotes

(1) Our multifamily guaranty book of business consists of: (a) multifamily mortgage loans of Fannie Mae; (b) multifamily mortgage loans underlying Fannie Mae MBS; and (c) other

credit enhancements that we provide on multifamily mortgage assets. It excludes non-Fannie Mae multifamily mortgage-related securities held in our retained mortgage portfolio for

which we do not provide a guaranty. 

(2) The company did not execute any multifamily CIRT transactions in Q1 nor Q2 of 2018.

(3) Represents the percentage of loans with lender risk-sharing agreements in place, measured by unpaid principal balance.

(4) Under the Delegated Underwriting and Servicing (DUS) program, Fannie Mae acquires individual, newly originated mortgages from specially approved DUS lenders using DUS

underwriting standards and/or DUS loan documents. Because DUS lenders generally share the risk of loss with Fannie Mae, they are able to originate, underwrite, close and service

most loans without our pre-review.

(5) The percentage of multifamily acquisitions with interest-only payments for the full term of the mortgage increased in Q1 2019. As shown on page 18, the average loan-to-value (LTV)

ratio of these acquisitions was significantly below the average LTV ratio of the companyÉs non-full interest-only multifamily acquisitions.

(6) Includes any loan that was underwritten with an interest-only term less than the term of the loan, regardless of whether it is currently in its interest-only period.

(7) The percentages shown for 2015 - 2018 acquisitions have been corrected from the amounts previously reported.

(8) See https://www.fanniemae.com/multifamily/products for definitions. Loans with multiple product features are included in all applicable categories.

(9) The Multifamily Affordable Business Channel focuses on financing properties that are under an agreement that provides long-term affordability, such as properties with rent subsidies

or income restrictions.

(10) Weighted average DSCR is calculated using the most recent property financial operating statements. When operating statement information is not available, the DSCR at the time of

acquisition is used. If both are unavailable, the underwritten DSCR is used. Co-op loans are excluded from this metric. 

(11) In Q1 2019, the DUS program updated the definition of small multifamily loans to any loan with an original unpaid balance of up to $6 million nationwide. The updated definition has

been applied to all loans in the current multifamily guaranty book of business, including loans that were acquired under the previous small loan definition.

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

(13) Cumulative credit loss rate is the cumulative credit losses (gains) through March 31, 2019 on the multifamily loans that were acquired in the applicable period, as a percentage of the

total acquired unpaid principal balance of multifamily loans in the applicable period.

(14) Credit loss (benefit) ratio represents the credit loss or benefit for the period divided by the average unpaid principal balance of the multifamily guaranty book of business for the

period. Credit benefits are the result of recoveries on previously charged-off amounts. Credit loss (benefit) ratio is annualized for the most recent period.