FannieMaeQuarterlyFinancialSupplement

Q22018

August2,2018

© 2018FannieMae.TrademarksofFannieMae.
SomeofthetermsandotherinformationinthispresentationaredefinedanddiscussedmorefullyinFannieMae’sForm10-Q

forthequarterendedJune30,2018(“Q2201810-Q”)andForm10-KfortheyearendedDecember31,2017(“2017Form

10-K”).ThispresentationshouldbereviewedtogetherwiththeQ2201810-Qandthe2017Form10-K,whichareavailableat

www.fanniemae.cominthe“AboutUs—InvestorRelations—SECFilings”section.Informationonoravailablethroughthe

company'swebsiteisnotpartofthissupplement.

Someoftheinformationinthispresentationisbaseduponinformationfromthird-partysourcessuchassellersandservicersof

mortgageloans.Althoughwegenerallyconsiderthisinformationreliable,wedonotindependentlyverifyallreported

information.

Duetorounding,amountsreportedinthispresentationmaynotaddtototalsindicated(or100%).

Unlessotherwiseindicated,datalabeledas"YTD2018"isasofJune30,2018orforthefirstsixmonthsof2018.Dataforprior

yearsisasofDecember31orforthefullyearindicated.

Notereferencesaretoendnotes,appearingonpages22to24.

Termsusedinpresentation

CAS:ConnecticutAvenueSecurities

CIRTTM:CreditInsuranceRiskTransferTM

CRT:creditrisktransfer

DTIratio:Debt-to-incomeratio

DUS:FannieMae’sDelegatedUnderwritingandServicingprogram

GDP:U.S.grossdomesticproduct

HARP:HomeAffordableRefinanceProgram,whichallowseligibleFannieMaeborrowerswithhighLTVratioloansto

refinanceintomoresustainableloans

LTVratio:loan-to-valueratio

MSA:metropolitanstatisticalarea

MTMLTVratio:mark-to-marketloan-to-valueratio

OLTVratio:originationloan-to-valueratio

RefiPlusTM:ourRefiPlusinitiative,whichoffersrefinancingflexibilitytoeligibleFannieMaeborrowers

REO:realestateowned

TCCA:TemporaryPayrollTaxCutContinuationActof2011

UPB:unpaidprincipalbalance

§

§

§

§

§

§

© 2018FannieMae.TrademarksofFannieMae. Q22018FinancialSupplement 1

®

®

®
TableofContents

CorporateFinancialHighlights

MarketLiquidity

KeyMarketEconomicIndicators

TreasuryDrawsandDividendPayments 7

6

5

4

FinancialOverview

Single-FamilyHighlights

CertainCreditCharacteristicsofSingle-FamilyLoanAcquisitions

CertainCreditCharacteristicsofSingle-FamilyConventionalGuarantyBookofBusiness

Single-FamilyCreditRiskTransfer

Single-FamilyProblemLoanStatistics

CreditLossConcentrationofSingle-FamilyConventionalGuarantyBookofBusiness

Single-FamilyCumulativeDefaultRates 15

14

13

12

11

10

9

Single-FamilyBusiness

MultifamilyHighlights

CertainCreditCharacteristicsofMultifamilyAcquisitions

CertainCreditCharacteristicsofMultifamilyGuarantyBookofBusiness

MultifamilySeriousDelinquencyRatesandCreditLosses 20

19

18

17

MultifamilyBusiness

FinancialOverviewEndnotes

Single-FamilyBusinessEndnotes

MultifamilyBusinessEndnotes 24

23

22

Endnotes

© 2018FannieMae.TrademarksofFannieMae. Q22018FinancialSupplement 2
FinancialOverview

© 2018FannieMae.TrademarksofFannieMae. Q22018FinancialSupplement 3
2Q18 1Q18 Variance

Netinterestincome

Feeandotherincome

Netrevenues

Investmentgains,net

Fairvaluegains,net

Administrativeexpenses

Credit-relatedincome

Benefitforcreditlosses

Foreclosedpropertyexpense

Totalcredit-relatedincome

TemporaryPayrollTaxCutContinuationActof2011

(TCCA)fees

Otherexpenses,net

Incomebeforefederalincometaxes

Provisionforfederalincometaxes

NetIncome

Othercomprehensiveincome(loss)

Totalcomprehensiveincome $521

325

$196

(5)

201

(163)

(8)

1,102

23

1,079

(5)

(816)

27

64

(81)

$145

$3,938

(323)

$4,261

(1,131)

5,392

(203)

(557)

55

(162)

217

(750)

1,045

250

5,552

320

$5,232

$4,459

2

$4,457

(1,136)

5,593

(366)

(565)

1,157

(139)

1,296

(755)

229

277

5,616

239

$5,377

2014 2015 2016 2017 YTD2018

0%

20%

40%

60%

80%

100%

%

NetInterestIncome

$0

$200

$400

$600

$800

$1,000

RetainedMortgagePortfolio($)Billions

$272.4

$413.3

$345.1

$230.8 $225.8

Netinterestincomefromretainedmortgageportfolioandotheractivities

Netinterestincomefromguarantyfeesandotherconsolidatedtrustincome

Retainedmortgageportfolioatendofperiod

KeyHighlights

SummaryofQ22018FinancialResults

SourcesofNetInterestIncomeandRetainedMortgage

PortfolioBalance

CorporateFinancialHighlights

© 2018FannieMae.TrademarksofFannieMae. Q22018FinancialSupplement 4

_______________________________

_______________________________

_______________________________

_______________________________

_______________________________

_______________________________

Netincome

Netrevenues

(1)

Totalcomprehensiveincome

§ FannieMae’snetincomewas$4.5billioninQ22018comparedtonet

incomeof$4.3billioninQ12018.

§ Theincreaseinnetincomewasdrivenprimarilybyanincreaseincreditrelatedincomeduetotheredesignationofloansfromheld-for-investment

toheld-for-sale,aswellasotherfactors,includinganimprovementinhome

pricesduringthequarter.Theincreaseinnetincomewaspartiallyoffsetby

lowerfairvaluegainsinQ22018comparedwithQ12018.

§ FannieMae’spre-taxincomewas$5.6billionforQ22018and$5.4billion

forQ12018,reflectingthestrengthofthecompany’sunderlyingbusiness

fundamentals.

_______________________________
2014 2015 2016 2017 YTD2018

0.0M

0.5M

1.0M

1.5M

2.0M

2.5M

3.0M

0.8M

0.6M

0.9M

0.6M

0.9M

0.4M

0.4M

0.3M

0.7M

1.0M

1.0M

1.4M

1.2M

1.2M

1.1M

RentalUnits

HomePurchases(Loans)

MortgageRefinancings(Loans)

550K

HomePurchases

411K

Refinancings

342K

RentalUnits

KeyHighlights:

LiquidityProvided

FannieMaeprovided$249billioninliquiditytothemortgagemarketinthefirsthalf

of2018,throughitspurchasesofloansandguaranteesofloansandsecurities,which

enabledthefinancingof:

ProvidingLiquiditytotheMortgageMarket

MarketLiquidity

© 2018FannieMae.TrademarksofFannieMae. Q22018FinancialSupplement 5
2014 2015 2016 2017 YTD2018

0.0%

2.0%

4.0%

Rate(asofperiodend)

2.83% 3.00%

3.60%

0.90%

1.18%

1.45%

2.08%

2.17% 2.79%

2.41%

2.86%

3.13%

2.45%

3.00%

2.27%

2014 2015 2016 2017 YTD2018

0.0%

2.0%

4.0%

6.0%

HomePriceGrowth

4.6%

4.2%

5.7% 5.7%

4.1%

2014 2015 2016 2017 YTD2018

0.0%

2.0%

4.0%

6.0%

Rate(asofperiodend)

5.60%

4.10%

4.00%

2.40% 2.60% 2.30%

4.70%

4.10%

5.00%

1.50%

MN

NM

MO

WA

WV

MA

WY

NH

ME

OH

MT

ND

MS

OR

OK

NV

NE

GA

NC

NY

AR

CO

TN

UT

WI

KY VA CA

TX

MI

SD

PA

LA

NJ

AL

AZ

KS

FL

SC

IN

ID

IA

IL

BenchmarkInterestRates Single-FamilyHomePriceGrowthRate

U.S.GDPGrowthRateand

UnemploymentRate

OneYearHomePriceChangeasofQ22018

UnitedStates5.7%

KeyMarketEconomicIndicators

HI

AK

StateHomePrice

GrowthRate

ShareofFannie

MaeSingle-Family

Conventional

GuarantyBook

CA

TX

FL

NY

IL

WA

NJ

VA

CO

PA 3.0%

3.0%

3.4%

3.6%

3.7%

3.7%

5.0%

5.7%

6.3%

19.5%

3.9%

7.8%

3.5%

3.6%

11.3%

3.2%

5.9%

7.1%

4.3%

9.3%

Top10StatesbyUPB

© 2018FannieMae.TrademarksofFannieMae. Q22018FinancialSupplement 6

StateGrowthRate

0to4.9%

5to9.9%

10%andabove

(2)

(2)

(2)

(3)

10-yearTreasuryrate

2-yearswaprate

30-yearFannieMBSparcouponrate

ChangebasedonFannieMaenationalhomepriceindex U.S.GDPGrowthRate,annualizedformostrecentperiod

U.S.UnemploymentRate
Drawsfrom

Treasury

Dividendpayments

toTreasury

Drawsfrom

Treasury

Dividendpayments

toTreasury

Drawsfrom

Treasury

Dividendpayments

toTreasury

Drawsfrom

Treasury

Dividendpayments

toTreasury

Drawsfrom

Treasury

Dividendpayments

toTreasury

$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

$160.0

($)Billions

$144.8

$116.1

$0.0

$9.6

$12.0

$3.7

$0.0 $0.9

$167.3

$119.8

DrawsfromTreasury DividendpaymentstoTreasury

TreasuryDrawsandDividendPayments

TreasuryDrawsandDividendPayments:2008-YTD2018

2008-2015 2016 2017 YTD2018 Total

© 2018FannieMae.TrademarksofFannieMae. Q22018FinancialSupplement 7

(5)

(4)
Single-FamilyBusiness

© 2018FannieMae.TrademarksofFannieMae. Q22018FinancialSupplement 8
Private-labelsecurities

5%

FreddieMac

27%

FannieMae

36%

GinnieMae

32%

Q22017 Q32017 Q42017 Q12018 Q22018

$0

$50

$100

$150

$200

UPB($)Billions

0

10

20

30

40

50

BasisPoints

$60

$84

$50

$69

$39

$59

$52

$47

$74 $72

47.1

48.0

47.1

45.4

49.0

$121

$134 $128

$112 $110

Q22017 Q32017 Q42017 Q12018 Q22018

$0

$1,000

$2,000

$3,000

$4,000

UPB($)Billions

0

10

20

30

40

50

BasisPoints

$2,823 $2,835 $2,850 $2,870 $2,877

42.1 42.4 42.6 42.8 43.0

Refinance

Purchase

Averagechargedguarantyfeeonnewacquisitions,netofTCCA(bps)

Averagechargedguarantyfeeonconventionalguarantybook,netofTCCA(bps)

AverageUPBoutstandingofSingle-Familyconventionalguarantybook

KeyHighlights

Q22018MarketShare:NewSingle-Family

Mortgage-RelatedSecuritiesIssuances

§ Single-Familynetincomewas$4.0billioninQ22018,driven

bynetinterestincomederivedfromtheloansunderlying

FannieMaeMBSinconsolidatedtrusts,whichprimarily

generateincomethroughguarantyfees.

§ Credit-relatedincomeinQ22018was$1.2billion,duetothe

redesignationofloansfromheld-for-investmenttoheld-forsale,aswellasotherfactors,includinganimprovementinhome

pricesduringthequarter.

§ Thesingle-familyguarantybookofbusinesscontinuedtogrow

inQ22018,whiletheaveragechargedguarantyfee(netofTCCA

fees)onthesingle-familyguarantybookremainedrelativelyflatin

thesecondquartercomparedtothepriorquarterat43basis

points.

Single-FamilyConventionalLoanAcquisitions ConventionalGuarantyBookofBusiness

Single-FamilyHighlights

Q22018

$4,723M

Netinterestincome

$278M

Fairvaluegains,

net

$252M

Investmentgains,net

$3,953M

Netincome

$1,159M

Credit-relatedincome

© 2018FannieMae.TrademarksofFannieMae. Q22018FinancialSupplement 9

(2)

(2)

(1) (1)
Q22017 Q32017 Q42017 FullYear2017 Q12018 Q22018

TotalUnpaidPrincipalBalance(UPB)($B)

TotalUPBexcludingRefiPlus($B)

WeightedAverageOriginationLTV(OLTV)Ratio

OriginationLTVRatio>90%

WeightedAverageFICO CreditScore

FICOCreditScore<660

DTIRatio>45%

Fixed-rate

Condo/Co-op 10%

98%

26%

6%

743

23%

77%

$109.1

$110.5

9%

98%

23%

6%

743

19%

75%

$110.3

$112.2

10%

97%

10%

6%

745

18%

75%

$487.7

$501.8

10%

98%

19%

6%

743

18%

76%

$125.2

$127.9

10%

97%

8%

5%

745

20%

76%

$131.5

$134.2

10%

97%

7%

5%

745

19%

76%

$117.6

$121.2

Loanswith

OLTV

Ratio>90%

Loanswith

FICOCredit

Score<660

Loanswith

DTI

Ratio>45%

10%

98%

100%

7%

734

22%

77%

$53.7

$53.7

7%

99%

30%

100%

641

16%

74%

$12.4

$13.2

9%

100%

26%

5%

738

100%

96%

$45.7

$46.1

2014 2015 2016 2017 YTD2018

0%

20%

40%

60%

80%

100%

WeightedAverageOLTV

Ratio

0%

10%

20%

30%

OriginationLTV>90%

76% 77% 75% 74% 75%

18% 18%

21%

16% 15%

2014 2015 2016 2017 YTD2018

0%

20%

40%

60%

80%

100%

ShareofAcquisitions

20%

20%

30%

44%

24%

22%

33%

56% 59%

45%

52%

16%

16%

19% 19%

12%

OLTV>90%

WeightedAverageOLTVRatio

2014 2015 2016 2017 YTD2018

0

200

400

600

800

WeightedAverageFICOCreditScore

0%

2%

4%

6%

8%

10%

12%

14%

FICOCreditScore<660

744 748 750 745 743

5% 6%

6%

4%

7%

FICOCreditScore<660

WeightedAverageFICOCreditScore

CertainCreditCharacteristicsofSingle-FamilyConventionalLoans

byAcquisitionPeriod

YTD2018Acquisition

CreditProfileby

CertainProductFeatures

Origination

Loan-to-ValueRatio

FICOCreditScore AcquisitionsbyLoanPurpose

CertainCreditCharacteristicsofSingle-FamilyLoanAcquisitions

RefiPlusincludingHARP

Refinance(excludingcash-out&RefiPlus)

Cash-outrefinance

Purchase

© 2018FannieMae.TrademarksofFannieMae. Q22018FinancialSupplement 10

(3)

(3)

(3)

(3)

®

(4)

(1) (4) Categoriesarenotmutuallyexclusive
Overall

Book

2004&

Earlier 2005-2008 2009-2015 2016 2017 2018

TotalUnpaidPrincipalBalance(UPB)($B)

AverageUnpaidPrincipalBalance

ShareofSingle-FamilyConventionalGuarantyBook

SeriousDelinquencyRate

WeightedAverageOriginationLTVRatio

OriginationLTVRatio>90%

WeightedAverageMark-to-MarketLTVRatio

WeightedAverageFICOCreditScore

ShareofLoanswithCreditEnhancement

Fixed-rate 98%

38%

742

75%

21%

77%

0.01%

6%

$229,697

$171.0

98%

61%

744

69%

19%

76%

0.19%

16%

$219,637

$453.1

99%

64%

751

61%

16%

74%

0.32%

17%

$216,738

$490.1

98%

37%

752

49%

17%

75%

0.50%

53%

$159,360

$1,516.1

68%

19%

695

64%

15%

76%

5.54%

6%

$130,031

$161.9

79%

7%

700

39%

14%

74%

3.00%

3%

$70,246

$89.2

96%

44%

745

56%

17%

75%

0.97%

100%

$168,532

$2,881.4

RefiPlus

IncludingHARP Alt-A

Loanswith

FICOCredit

Score<660

OriginationLTV

Ratio>90%

98%

74%

733

76%

100%

101%

1.49%

17%

$176,653

$494.0

91%

33%

628

61%

24%

79%

4.23%

7%

$133,899

$197.4

71%

8%

709

60%

18%

79%

4.21%

2%

$139,123

$65.4

99%

11%

730

54%

38%

86%

0.83%

12%

$136,830

$354.1

2014 2015 2016 2017 YTD2018

0%

10%

20%

30%

40%

50%

60%

70%

WeightedAverageMTMLTV

0%

2%

4%

6%

8%

10%

%

MTMLTV>100%

60%

64%

62%

58%

56%

2%

3%

5%

1% 1%

2014 2015 2016 2017 YTD2018

0

200

400

600

800

WeightedAverageFICOCreditScore

0%

5%

10%

15%

20%

%FICOCreditScore<660

744 744 745 745 745

7%

8%

7%

8%

7%

WeightedAverageMark-To-Market

Loan-to-Value(MTMLTV)Ratio

FICOCreditScore

2014 2015 2016 2017 YTD2018

0.0%

2.0%

4.0%

6.0%

8.0%

SeriousDelinquencyRate

6.39%

1.20%

6.55%

7.60%

8.39%

5.54%

1.24%

1.55%

1.89%

3.06% 3.00% 2.82%

0.53% 0.41%

0.97%

0.35% 0.36% 0.36%

3.26% 3.28%

SeriousDelinquencyRatebyVintage

OriginationYear CertainProductFeatures

%FICOCreditScore<660

WeightedAverageFICOCreditScore

%MTMLTV>100%

WeightedAverageMTMLTV

CertainCreditCharacteristicsofSingle-FamilyConventionalGuarantyBookofBusiness

CertainCreditCharacteristicsofSingle-FamilyConventionalGuarantyBookofBusinessbyOriginationYearandProductFeatures

Totalsingle-familyconventionalguarantybookofbusiness

2004andPrior

2005-2008

2009-2018

AsofJune30,2018

Categoriesarenotmutuallyexclusive

© 2018FannieMae.TrademarksofFannieMae. Q22018FinancialSupplement 11

(5)

(6)

(8)

(3)

(10)

(3)

(9)

(7)

(7)

(1) (3)
2014 2015 2016 2017 YTD2018

$0

$500

$1,000

$1,500

UPB($)Billions

0%

10%

20%

30%

40%

%Single-FamilyConventionalGuarantyBook

$1,026

$628

$250

$429

$927

22%

15%

9%

32%

36%

%Single-familyconventionalguarantybookinaCRTtransaction

UPBoutstandingofloansinaCRTtransaction

Single-FamilyLoansIncludedinCreditRiskTransfer

Transactions,BalanceofCoveredLoans

Single-FamilyCreditRiskTransfer

Single-FamilyLoanswithCreditEnhancement

Single-FamilyCreditRiskTransferIssuance

2016

Outstanding

UPB

Percentof

Book

Outstanding

2017

Outstanding

UPB

Percentof

Book

Outstanding

YTD2018

Outstanding

UPB

Percentof

Book

Outstanding

Primarymortgageinsurance&other

ConnecticutAvenueSecurities (CAS)

CreditInsuranceRiskTransferTM (CIRTTM)

Lenderrisk-sharing

(Less:loanscoveredbymultiplecredit

enhancements)

TotalUPBofsingle-familyloanswithcredit

enhancement

33%

(8%)

1%

4%

18%

18%

$925B

($211B)

$23B

$101B

$503B

$509B

40%

(12%)

2%

6%

24%

20%

$1,158B

($335B)

$65B

$181B

$681B

$566B

44%

(12%)

3%

7%

26%

20%

$1,256B

($349B)

$86B

$202B

$738B

$580B

2013 2014 2015 2016 2017 YTD2018

$0

$100

$200

$300

$400

UPB($)Billions

$240

$222

$265

$102

$103

$189

$40

$44

$32

$25

$76

$27

$32

$233 $239

$331

$410

$160

Lenderrisk-sharing ConnecticutAvenueSecurities CreditInsuranceRiskTransfer

CreditEnhancement

© 2018FannieMae.TrademarksofFannieMae. Q22018FinancialSupplement 12

___________________________________________________________________________________________

___________________________________________________________________________________________

(13)

(12)

(11)

(12)

(13)

®
NM

MN

MD

MO

WA

WV

MA

WY

NH

ME

OH

MT

ND

MS

OR

OK

NV

NE

GA

NC

NY

DE

AR

TN

UT CO

WI

KY VA 

CA

TX

MI

SD

PA

LA

NJ

AL

AZ

KS

FL

SC

IN

ID

IA

IL

Lessthan0.50% 0.50%to0.99% 1.00%to1.99% 2.00%to2.99% 3.00%andAbove

2014 2015 2016 2017 YTD2018

$0

$10

$20

$30

$40

UPB($)Billions

0

50

100

150

200

NumberofLoanWorkouts(Thousands)

$16.6 $14.4 $14.6

$21.7

$6.6

$4.2

$9.7

$3.1 $2.1

64.1K

103.5K 100.6K

122.3K

164.6K

$28.3

$20.7

$17.5 $16.7

$10.3

2014 2015 2016 2017 YTD2018

0K

20K

40K

60K

80K

100K

REOEndingInventory

87K

57K

38K

26K 22K

Single-FamilyProblemLoanStatistics

Single-FamilySeriousDelinquencyRatebyStateasofJune30,2018

Single-FamilyLoanWorkouts REOEndingInventory

REOEndingInventory

AK

HI

PR

VI

State

Serious

Delinquency

Rate

Average

Monthsto

Foreclosure

CA

TX

FL

NY

IL

WA

NJ

VA

CO

PA 26

17

15

60

42

24

69

48

25

21

1.17%

0.23%

0.55%

1.68%

0.42%

1.05%

1.66%

2.51%

1.00%

0.36%

Top10StatesbyUPB

ForeclosureAlternatives

HomeRetentionSolutions

TotalLoanWorkouts

© 2018FannieMae.TrademarksofFannieMae. Q22018FinancialSupplement 13

(15)

(16)

(10)

(14)
2014 2015 2016 2017 YTD2018 2014 2015 2016 2017 YTD2018

Alt-A

InterestOnly

OriginationLTVRatio>90%

FICOCreditScore<660andOriginationLTVRatio>90%

FICOCreditScore<660

RefiPlusincludingHARP 12.3%

6.9%

1.6%

17.1%

1.0%

2.3%

13.2%

7.0%

1.7%

16.7%

1.2%

2.5%

15.4%

7.3%

1.8%

16.4%

1.7%

3.1%

17.6%

7.8%

2.0%

16.3%

2.1%

3.7%

19.1%

8.0%

2.0%

15.9%

2.5%

4.2%

12.3%

32.5%

8.1%

19.8%

16.3%

25.2%

15.9%

33.0%

9.0%

23.9%

15.7%

21.9%

14.0%

35.8%

8.8%

21.9%

12.2%

24.9%

7.8%

29.7%

6.5%

16.4%

18.0%

29.3%

10.4%

29.7%

6.6%

15.3%

10.2%

17.4%

2014 2015 2016 2017 YTD2018 2014 2015 2016 2017 YTD2018

2009-YTD2018

2005–2008

2004&Prior 3.1%

5.6%

91.3%

3.5%

6.2%

90.3%

4.5%

8.1%

87.4%

5.8%

10.1%

84.1%

7.3%

12.2%

80.5%

13.0%

68.4%

18.6%

12.2%

64.8%

23.1%

16.4%

64.7%

19.0%

12.1%

77.6%

10.3%

12.0%

74.7%

13.3%

62.5%

19.5%

5.0%

3.6%

3.7%

5.7%

10.0%

47.4%

11.8%

11.7%

9.9%

9.2%

AllOtherStates

California

Florida

Illinois

NewJersey

NewYork

AllOtherStates

California

Florida

Illinois

NewJersey

NewYork

CreditLossConcentrationofSingle-FamilyConventionalGuarantyBookofBusiness

%ofSingle-FamilyConventionalGuarantyBookofBusiness %ofSingle-FamilyCreditLosses

%ofSingle-FamilyConventionalGuarantyBookofBusiness

byStateasofJune30,2018

%ofQ22018Single-FamilyCreditLossesbyState

© 2018FannieMae.TrademarksofFannieMae. Q22018FinancialSupplement 14

100%

$2.9T

100%

$1.4B

(17) (18)

(9)

CertainProductFeatures

Vintage

(3)

(3)
Yr1-Q1

Yr1-Q2

Yr1-Q3

Yr1-Q4

Yr2-Q1

Yr2-Q2

Yr2-Q3

Yr2-Q4

Yr3-Q1

Yr3-Q2

Yr3-Q3

Yr3-Q4

Yr4-Q1

Yr4-Q2

Yr4-Q3

Yr4-Q4

Yr5-Q1

Yr5-Q2

Yr5-Q3

Yr5-Q4

Yr6-Q1

Yr6-Q2

Yr6-Q3

Yr6-Q4

Yr7-Q1

Yr7-Q2

Yr7-Q3

Yr7-Q4

Yr8-Q1

Yr8-Q2

Yr8-Q3

Yr8-Q4

Yr9-Q1

Yr9-Q2

Yr9-Q3

Yr9-Q4

Yr10-Q1

Yr10-Q2

Yr10-Q3

Yr10-Q4

Yr11-Q1

Yr11-Q2

Yr11-Q3

Yr11-Q4

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

CumulativeDefaultRate

2007

2008

2002

2009

2011 2010 2012

2013

2014

2017 2016 2015

2006

2005

2004

2003

2018

Single-FamilyCumulativeDefaultRates

CumulativeDefaultRatesofSingle-FamilyConventionalGuarantyBookofBusinessbyOriginationYear

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012*

2013*

2014*

2015*

2016*

2017*

2018*

TimeSinceBeginningofOriginationYear

© 2018FannieMae.TrademarksofFannieMae. Q22018FinancialSupplement 15

*AsofJune30,2018,cumulativedefaultratesontheloansoriginatedfrom2012-2018waslessthan1%

(19)
MultifamilyBusiness

© 2018FannieMae.TrademarksofFannieMae. Q22018FinancialSupplement 16
MultifamilyHighlights

Q22018 Acquisitions GuarantyBookofBusiness

Q22017 Q32017 Q42017 Q12018 Q22018

$0.0

$5.0

$10.0

$15.0

$20.0

UPB($)Billions

$20.3

$16.2

$12.3

$14.5

$11.3

$13.2

$16.2

$20.3

$11.3

$14.5

MultifamilyGuarantyFeeand

CreditLoss(Benefit)Ratio

Q22017 Q32017 Q42017 Q12018 Q22018

$0

$100

$200

$300

$400

UPB($)Billions

0%

20%

40%

60%

80%

100%

ShareofMultifamilyGuarantyBookwith

LenderRiskSharing

$287.6

$257.2 $265.4

$277.3 $281.3

95% 96% 96% 97% 97%

Shareofguarantybookwithlenderrisk-sharing

UPBoutstandingofMultifamilyguarantybookofbusiness

KeyHighlights

Q22017 Q32017 Q42017 Q12018 Q22018

0

20

40

60

80

100

BasisPoints

77.9 79.8 78.7 78.9 78.6

0.3 (2.4) (0.8) 0.6 0.6

Annualizedcreditloss(benefit)ratio

Averageguarantyfeeatendofperiod(bps)

§ Multifamilynetincomewas$504millioninQ22018,drivenby

netinterestincome,whichconsistsprimarilyofguarantyfee

revenueandfeeandotherincome,drivenbyyieldmaintenance.

§ FairvaluelossesinQ22018wereprimarilytheresultoflosses

oncommitmentsasaresultofincreasinginterestratesduring

thecommitmentperiods.

§ Themultifamilyguarantybookofbusinesscontinuedtogrowin

Q22018,whiletheaveragechargedguarantyfeeonthe

multifamilyguarantybookremainedrelativelyflatasofJune

30,2018comparedtothepriorquarterendat79basispoints.

Otherrentalbusinessvolume Multifamilynewbusinessvolume

$654M

Netinterestincome

$170M

Feeandother

income

$2M

Credit-related

expense

$49M

Fairvaluelosses

$504M

Netincome

© 2018FannieMae.TrademarksofFannieMae. Q22018FinancialSupplement 17

(1)

(2)
CertainCreditCharacteristicsofMultifamilyAcquisitions

2014 2015 2016 2017 YTD2018

0%

20%

40%

60%

80%

100%

ShareofAcquisitions

48% 48% 50%

49%

63%

43%

37%

57%

51% 51%

%OriginationLTVlessthanorequalto70%

%OriginationLTVgreaterthan70%andlessthanorequalto80%

%OriginationLTVgreaterthan80%

2014 2015 2016 2017 YTD2018

0%

20%

40%

60%

80%

100%

ShareofAcquisitions

80%

20%

28% 23%

87%

79%

72% 77%

21%

13%

$0.8B

$0.8B

$0.6B

$0.9B

$0.6B

$1.0B $1.0B

$1.5B

$1.5B

$1.5B

VariableRate

FixedRate

2014 2015 2016 2017 YTD2018

TotalUnpaidPrincipalBalance(UPB)($B)

WeightedAverageOriginationLTVRatio

LoanCount

%LenderRecourse

%DUSTM 99%

100%

1,645

65%

$25.8

98%

100%

3,861

67%

$67.1

99%

99%

3,335

68%

$55.3

99%

99%

2,869

68%

$42.4

99%

99%

2,361

68%

$28.9

CertainCreditChacteristicsofMultifamilyLoansbyAcquisitionPeriod

OriginationLoan-to-ValueRatio AcquisitionsbyNoteType

Top10MSAsbyYTD2018

AcquisitionUPB

Atlanta

Dallas

Denver

Houston

LosAngeles

NewYork

Phoenix

SanFrancisco

Seattle

Washington,DC

© 2018FannieMae.TrademarksofFannieMae. Q22018FinancialSupplement 18

(3)

(4)

Shareof

Acquistions:40.1%

TotalUPB:$10.3B

Categoriesarenotmutuallyexclusive
CertainCreditCharacteristicsofMultifamilyGuarantyBookofBusiness

2014 2015 2016 2017 YTD2018

0%

20%

40%

60%

80%

100%

ShareofMultifamilyBookofBusiness

80% 80%

20% 20%

82% 83%

18%

81%

19% 17%

$8.1B

$25.5B $20.4B

$12.2B

$13.6B

$9.0B

$8.6B

$8.4B

$6.6B

$6.6B

Atlanta

Chicago

Dallas

Houston

LosAngeles

NewYork

Phoenix

SanFrancisco

Seattle

Washington,DC

Overall

Book

2004&

Eariler 2005-2008 2009-2015 2016 2017 2018

TotalUnpaidPrincipalBalance(UPB)($B)

AverageUnpaidPrincipalBalance($M)

WeightedAverageOriginationLTVRatio

%Fixed-rate

LoanCount

%ofBook

%ofSmallBalanceLoans

%LenderRecourse

%DUS

SeriousDelinquencyRate

99%

100%

19%

9%

1,647

87%

65%

$15.6

$25.7

0.04%

97%

100%

18%

23%

3,815

81%

67%

$17.4

$66.3

0.02%

99%

100%

18%

18%

3,117

80%

68%

$16.7

$51.9

0.16%

98%

96%

39%

44%

13,394

90%

66%

$9.5

$126.8

0.44%

87%

74%

86%

4%

4,393

52%

65%

$2.4

$10.6

0.01%

97%

95%

68%

2%

1,379

20%

71%

$4.6

$6.3

0.10%

98%

97%

41%

100%

27,745

83%

67%

$10.4

$287.6

Conventional

/Co-op Senior Student Manufactured

100%

100%

28%

4%

940

86%

67%

$10.7

$10.1

100%

99%

15%

4%

576

80%

67%

$18.2

$10.5

0.10%

98%

100%

2%

5%

698

62%

67%

$22.1

$15.4

0.11%

97%

97%

43%

87%

25,531

84%

67%

$9.9

$251.6

CertainCreditCharacteristicsofMultifamilyBookofBusinessbyAcquisitionYear,AssetClass,orTargetedAffordableSegment

UPBbyMaturityYear

MultifamilyBookofBusiness

byNoteType

Top10MSAsbyUPB

$1.8B$10.6B

$226.7B

$21.9B

$15.3B

$11.3B

2018

2019

2020

2021

2022

Other

VariableRate

FixedRate

AcquisitionYear AssetClassorTargetedAffordableSegment

PrivatelyOwned

withSubsidy

0.23%

95%

96%

41%

12%

3,830

68%

70%

$9.0

$34.3

© 2018FannieMae.TrademarksofFannieMae. Q22018FinancialSupplement 19

(3)

(8)

(4)

(7)

AsofJune30,2018

Categoriesarenotmutuallyexclusive

ShareofBook

ofBusiness:100%

TotalUPB:$287.6B

ShareofBook

ofBusiness:41.3%

TotalUPB:$118.9B

(5) (5) (5) (5) (6)

(1)
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD2018

0.0%

0.5%

1.0%

1.5%

2.0%

CreditLossRate

0.0%

0.2%

0.1%

0.0%

0.4%

0.3%

0.0%

0.4%

0.5%

0.9%

0.2%

0.7%

0.9%

1.2%

1.1%

0.8%

0.9%

1.4%

0.3%0.3%

0.1% 0.1%

0.0%

0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

DUSCreditLossRate TotalCreditLossRate Non-DUSCreditLossRate

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD2018

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

SeriousDelinquencyRate

0.55%

0.34%

0.15%

0.07% 0.05%

0.56%

0.11%

1.36%

0.44%

1.20%

0.24%

0.71%

0.21% 0.21%

0.18%

0.24%

0.63%

0.50%

0.10%

0.10%

0.59%

0.11%

0.08% 0.07% 0.08%

0.05%

0.39%

0.92%

DUSSeriousDelinquencyRate

MultifamilyTotalSeriousDelinquencyRate

Non-DUSSeriousDelinquencyRate

DUS/Non-DUSCumulativeCreditLossRatesbyAcquisitionYearThroughYTD2018

SeriousDelinquencyRates

2013 2014 2015 2016 2017 YTD2018

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

BasisPoints

(0.2) (0.7)

2.5

0.6

(2.7)

(2.3)

CreditLoss(Benefit)Ratio

MultifamilySeriousDelinquencyRatesandCreditLosses

© 2018FannieMae.TrademarksofFannieMae. Q22018FinancialSupplement 20

(4)(9)

(4)(8) (2)(10)
Endnotes

© 2018FannieMae.TrademarksofFannieMae. Q22018FinancialSupplement 21
FinancialOverviewEndnotes

Guarantyfeeincomeincludestheimpactofa10basispointguarantyfeeincreaseimplementedin2012pursuanttotheTemporaryPayrollTaxCutContinuationActof

2011,theincrementalrevenuefromwhichisremittedtoTreasuryandnotretainedbythecompany.

HomepriceestimatesarebasedonpurchasetransactionsinFannie-FreddieacquisitionandpublicdeeddataavailablethroughtheendofJune2018.UPBestimatesare

basedondataavailablethroughtheendofJune2018.Includingsubsequentdatamayleadtomateriallydifferentresults.Homepricechangeisnotseasonallyadjusted.

Source:BureauofEconomicAnalysis.GDPgrowthrateiscalculatedusingthequarterlyannualizedgrowthrateforthemostrecentperiodandtheannualgrowthrate

forpriorperiods.

Underthetermsoftheseniorpreferredstockpurchaseagreement,dividendpaymentswemaketoTreasurydonotoffsetourpriordrawsoffundsfromTreasury,and

wearenotpermittedtopaydowndrawswehavemadeundertheagreementexceptinlimitedcircumstances.

Treasurydrawsareshownintheperiodforwhichrequested,notwhenthefundswerereceivedbyus.Drawrequestshavebeenfundedinthequarterfollowinganet

worthdeficit.

(1)

a

(2)

a

(3)

a

(4)

a

(5)

© 2018FannieMae.TrademarksofFannieMae. Q22018FinancialSupplement 22
Single-FamilyBusinessEndnotes

Single-familyconventionalloanpopulationconsistsof:(a)single-familyconventionalmortgageloansofFannieMae;(b)single-familyconventionalmortgageloansunderlying

FannieMaeMBS;and(c)othercreditenhancementsthatweprovideonsingle-familymortgageassets,suchaslong-termstandbycommitments.Itexcludesnon-FannieMae

single-familymortgage-relatedsecuritiesheldinourretainedmortgageportfolioforwhichwedonotprovideaguaranty.Conventionalreferstomortgageloansand

mortgage-relatedsecuritiesthatarenotguaranteedorinsured,inwholeorinpart,bytheU.S.governmentoroneofitsagencies.

Calculatedbasedontheaverageguarantyfeerateforoursingle-familyguarantyarrangementsduringtheperiodplustherecognitionofanyupfrontcashpaymentsoveran

estimatedaveragelife.Excludestheimpactofa10basispointguarantyfeeincreaseimplementedin2012pursuanttotheTCCA,theincrementalrevenuefromwhichisremittedto

Treasuryandnotretainedbyus.

FICOcreditscoreisasofloanorigination,asreportedbythesellerofthemortgageloan.

PopulationexcludesHARPandotherRefiPlusloansacquiredunderourRefiPlusTM initiative.

Calculatedbasedontheaggregateunpaidprincipalbalanceofsingle-familyloansforeachcategorydividedbytheaggregateunpaidprincipalbalanceofloansinoursingle-family

conventionalguarantybookofbusiness.Loanswithmultipleproductfeaturesareincludedinallapplicablecategories.

ForadescriptionofourAlt-Aloanclassificationcriteria,refertoFannieMae’s2017Form10-K.WediscontinuedthepurchaseofnewlyoriginatedAlt-Aloansin2009,exceptfor

thosethatrepresenttherefinancingofaloanweacquiredpriorto2009,whichhasresultedinouracquisitionsofAlt-Amortgageloansremaininglowandthepercentageofthe

bookofbusinessattributabletoAlt-Atocontinuetodecreaseovertime.

“Seriousdelinquencyrate"referstosingle-familyconventionalloansthatare90daysormorepastdueorintheforeclosureprocessintheapplicableoriginationyear,product

feature,orstate,dividedbythenumberofloansinoursingle-familyconventionalguarantybookofbusinessinthatoriginationyear,productfeature,orstate.

Theaverageestimatedmark-to-marketLTVratioisbasedontheunpaidprincipalbalanceoftheloandividedbytheestimatedcurrentvalueoftheproperty,whichwecalculate

usinganinternalvaluationmodelthatestimatesperiodicchangesinhomevalue.Excludesloansforwhichthisinformationisnotreadilyavailable.

Percentageofloansinoursingle-familyconventionalguarantybookofbusiness,measuredbyunpaidprincipalbalance,includedinanagreementusedtoreducecreditriskby

requiringcollateral,lettersofcredit,mortgageinsurance,corporateguarantees,inclusioninacreditrisktransfertransactionreferencepool,orotheragreementthatprovidesfor

ourcompensationtosomedegreeintheeventofafinanciallossrelatingtotheloan.BecauseweincludeloansinreferencepoolsforourConnecticutAvenueSecuritiesandCredit

InsuranceRiskTransfercreditrisktransfertransactionsonalaggedbasis(typicallyaboutsixmonthstooneyearafterweinitiallyacquiretheloans),weexpectthepercentageof

our2017and2018single-familyloanacquisitionswithcreditenhancementwillincreaseinthefuture.

Theaggregateestimatedmark-to-marketLTVratioisbasedontheunpaidprincipalbalanceoftheloanasoftheendofeachperioddividedbytheestimatedvalueoftheproperty

asoftheendoftheperiod.

Referstoloansincludedinanagreementusedtoreducecreditriskbyrequiringprimarymortgageinsurance,collateral,lettersofcredit,corporateguarantees,orotheragreements

toprovideanentitywithsomeassurancethatitwillbecompensatedtosomedegreeintheeventofafinancialloss.Excludesloanscoveredbycreditrisktransfertransactions

unlesssuchloansarealsocoveredbyprimarymortgageinsurance.

Outstandingunpaidprincipalbalancerepresentstheunderlyingloanbalance,whichisdifferentfromthereferencepoolbalanceforCASandsomelenderrisk-sharing

transactions.

Includesmortgagepoolinsurancetransactionscoveringloanswithanunpaidprincipalbalanceofapproximately$3billionatissuanceandapproximately$5billionoutstanding

asofJune30,2018.

Measuredfromtheborrowers’lastpaidinstallmentontheirmortgagestowhentherelatedpropertieswereaddedtoourREOinventoryforforeclosurescompletedduringthefirst

sixmonthsof2018.HomeEquityConversionMortgagesinsuredbytheDepartmentofHousingandUrbanDevelopmentareexcludedfromthiscalculation.

Consistsof(a)shortsales,inwhichtheborrower,workingwiththeservicerandFannieMae,sellsthehomepriortoforeclosureforlessthantheamountowedtopayofftheloan,

accruedinterestandotherexpensesfromthesaleproceedsand(b)deeds-in-lieuofforeclosure,whichinvolvetheborrower’svoluntarilysigningovertitletotheproperty.

Consistsof(a)modifications,whichdonotincludetrialmodifications,loanstocertainborrowerswhohavereceivedbankruptcyreliefthatareaccountedforastroubleddebt

restructurings,orrepaymentplansorforbearancesthathavebeeninitiatedbutnotcompleted;(b)repaymentplans,reflectsonlythoseplansassociatedwithloansthatwere60

daysormoredelinquent;and(c)forbearances,notincludingforbearancesassociatedwithloansthatwerelessthan90daysdelinquentwhenentered.

Basedontheunpaidprincipalbalance(UPB)ofthesingle-familyconventionalguarantybookofbusinessasofperiodend.

Creditlossesconsistof(a)charge-offsnetofrecoveriesand(b)foreclosedpropertyexpense(income).Percentagesexcludetheimpactofrecoveriesthathavenotbeenallocatedto

specificloans.

Defaultsincludeloanforeclosures,shortsales,salestothirdpartiesatthetimeofforeclosureanddeeds-in-lieuofforeclosure.CumulativeDefaultRateisthetotalnumberof

single-familyconventionalloansintheguarantybookofbusinessoriginatedintheidentifiedyearthathavedefaulted,dividedbythetotalnumberofsingle-familyconventional

loansintheguarantybookofbusinessoriginatedintheidentifiedyear.DataasofJune30,2018isnotnecessarilyindicativeoftheultimateperformanceoftheloansand

performanceislikelytochange,perhapsmaterially,infutureperiods.

(1)

a

a

a

(2)

a

a

(3)

(4)

(5)

a

(6)

a

a

(7)

a

(8)

a

(9)

a

a

a

a

(10)

a

(11)

a

a

(12)

a

(13)

a

(14)

a

(15)

a

(16)

a

a

(17)

(18)

a

(19)

a

© 2018FannieMae.TrademarksofFannieMae. Q22018FinancialSupplement 23
MultifamilyBusinessEndnotes

Ourmultifamilyguarantybookofbusinessconsistsof:(a)multifamilymortgageloansofFannieMae;(b)multifamilymortgageloansunderlyingFannieMaeMBS;

and(c)othercreditenhancementsthatweprovideonmultifamilymortgageassets.Itexcludesnon-FannieMaemultifamilymortgage-relatedsecuritiesheldinour

retainedmortgageportfolioforwhichwedonotprovideaguaranty.

Creditloss(benefit)ratiorepresentsthecreditlossorbenefitfortheperioddividedbytheaverageunpaidprincipalbalanceofthemultifamilyguarantybookof

businessfortheperiod.Creditbenefitsaretheresultofrecoveriesonpreviouslycharged-offamounts.

Representsthepercentageofloanswithlenderrisk-sharingagreementsinplace,measuredbyunpaidprincipalbalance.

UndertheDelegatedUnderwritingandServicing(DUS)program,FannieMaeacquiresindividual,newlyoriginatedmortgagesfromspeciallyapprovedDUSlenders

usingDUSunderwritingstandardsand/orDUSloandocuments.BecauseDUSlendersgenerallysharetheriskoflosswithFannieMae,theyareabletooriginate,

underwrite,closeandservicemostloanswithoutourpre-review.

Seehttps://www.fanniemae.com/multifamily/productsfordefinitions.Loanswithmultipleproductfeaturesareincludedinallapplicablecategories.

TheMultifamilyAffordableBusinessChannelfocusesonfinancingpropertiesthatareunderanagreementthatprovideslong-termaffordability,suchasproperties

withrentsubsidiesorincomerestrictions.

Multifamilyloanswithanoriginalunpaidbalanceofupto$3millionnationwideorupto$5millioninhighcostmarkets.

Multifamilyloansareclassifiedasseriouslydelinquentwhenpaymentis60daysormorepastdue.

Cumulativecreditlossrateisthecumulativecreditlosses(gains)throughJune30,2018onthemultifamilyloansthatwereacquiredintheapplicableperiod,asa

percentageofthetotalacquiredunpaidprincipalbalanceofmultifamilyloansintheapplicableperiod.

Creditloss(benefit)ratioisannualizedforthemostrecentperiod.

(1)

a

a

(2)

a

(3)

(4)

a

a

(5)

(6)

a

(7)

(8)

(9)

a

(10)

© 2018FannieMae.TrademarksofFannieMae. Q22018FinancialSupplement 24