Fannie Mae

Progress Report

Q4 AND FULL YEAR 2014

 We maintain responsible credit standards 

while making it possible for families to 

purchase, refinance, or rent homes. 

 Beginning in 2008, we significantly 

strengthened our underwriting and eligibility 

standards and changed our pricing to promote 

sustainable homeownership and stability in 

the housing market. As a result, the credit 

quality of our book of business has improved.

OUR PURPOSE

	We continue to focus on supporting the 

housing market recovery and helping to build 

a sustainable housing finance system.

	Our priorities are aligned with the public 

interest.

	We are committed to providing liquidity to 

the mortgage market; assisting troubled 

borrowers; enabling families to buy, refinance, 

or rent homes; and building a book of 

business that will help protect Americans’ 

investment in the company.

OUR RESULTS

Q4 AND FULL YEAR 2014

SINGLE-FAMILY

BOOK OF BUSINESS

AS OF DECEMBER 31, 2014

As of Dec. 31, 2014

$14.7 BILLION 

Comprehensive 

income for 2014

Net income

for 2014

$14.2 BILLION 

$1.3 BILLION 

Comprehensive 

income for Q4 2014

Net income

for Q4 2014

$1.3 BILLION 

	Primary drivers of our 2014 results were 

strong revenues from net interest income and 

income from settlement agreements related to 

private-label mortgage-related securities sold 

to us.

 We also recognized credit-related income

due primarily to increasing home prices 

during the year.

 These results were partially offset by a 

provision for federal income taxes and fair 

value losses due to declines in longer-term 

interest rates in 2014.

 Key drivers of our fourth quarter 2014 results 

were net interest income, partially offset by 

fair value losses due to declines in longerterm interest rates in the quarter.

Single-Family loans acquired prior to 2009 = 19%

Single-Family loans acquired 2009 through 2014 = 81%

62% Excluding HARP and other Refi Plus loans

11% HARP loans

8% Other Refi Plus loans

62%

19%

8%

11%
For more information, see our 2014 Form 10-K Report,

filed with the SEC on February 20, 2015.

3900 Wisconsin Avenue, NW © 2015, Fannie Mae

Washington, DC 20016-2892 Published February 20, 2015

This report includes our expectations regarding our future dividend payments to Treasury. These expectations are forward-looking statements 

based on our current assumptions regarding numerous factors. Our actual 

results and future expectations may differ materially from our current 

expectations as a result of many factors, including those discussed in the 

“Risk Factors” section of and elsewhere in our Annual Report on Form 10-K 

for the year ended December 31, 2014. These forward-looking statements 

are representative only as of the date they are made, and we undertake 

no obligation to update any forward-looking statement as a result of new 

information, future events or otherwise, except as required under the 

federal securities laws.

FANNIE MAE

PERFORMANCE SNAPSHOT

Q4 AND FULL YEAR 2014

	Remained the largest single issuer of 

single-family mortgage-related securities 

in the secondary market in Q4 and full 

year 2014, and remained a leading source 

of financing and securitization in the 

multifamily market.

	Funded the market with ~$434 billion 

in liquidity in 2014 (~$128 billion in Q4 

2014), which enabled borrowers in 2014 to 

complete: ~887K home purchases (~243K 

in Q4 2014) and ~937K refinancings 

(~264K in Q4 2014), and provided 

financing for ~446K units of multifamily 

housing (~157K in Q4 2014).

	Refinanced ~302K loans in 2014 and ~60K 

loans in Q4 2014 through the company’s 

Refi PlusTM initiative, including loans 

refinanced under the Administration’s 

Home Affordable Refinance Program®

(HARP®). Refinancings delivered through 

Refi Plus in Q4 2014 reduced borrowers’ 

monthly mortgage payments by an average 

of $172.

	Helped distressed families retain their 

homes or avoid foreclosure through ~165K 

workout solutions in 2014 (~34K in Q4 

2014), including ~123K loan modifications 

in 2014 (~26K in Q4 2014).

DRIVING DOWN THE SERIOUS 

DELINQUENCY (SDQ) RATE

	Our single-family SDQ rate has declined 19 

consecutive quarters.

LIQUIDITY AND SUPPORT

TO THE MARKET

	We funded the mortgage market with 

approximately $434 billion in liquidity in 

2014, including approximately $128 billion in 

liquidity in the fourth quarter of 2014. 

	Fannie Mae’s single-family SDQ rate was 

1.89 percent.

	Our single-family SDQ rate is substantially 

lower than private market levels.

	Approximately 96 percent of Fannie Mae’s 

17.4 million single-family conventional loans 

are current.

Data as of December 31, 2014

5.47%

1.89%

1Q10

4Q14

TREASURY DRAWS

AND DIVIDEND PAYMENTS

	Fannie Mae expects to have paid Treasury 

approximately $136.4 billion in dividends as of 

March 31, 2015. 

(1) Treasury draw requests are shown in the period for which 

requested and do not include the initial $1.0 billion liquidation 

preference of Fannie Mae’s senior preferred stock, for which 

Fannie Mae did not receive any cash proceeds. The payment of 

dividends does not offset prior Treasury draws.

(2) Fannie Mae expects to pay a dividend for the first quarter of 2015 

calculated based on our net worth of $3.7 billion as of Dec. 31, 

2014 less the applicable capital reserve amount of $1.8 billion.

(3) Amounts may not sum due to rounding.

www.fanniemae.com/progress

home

purchases

243K

in Q4 2014

887K

rental units

157K

in Q4 2014

446K

mortgage

refinancings

264K in Q4 2014

937K

$15.2

2008

$60.0

2009

$15.0

2010

$25.9

2011

$0.0

2012

$0.0

2013

$0.0

2014

Draw Request from Treasury

(in billions)

Cumulative

Total

Initial Liquidation Preference $1.0

Treasury Draw Requests1 $116.1

Total Senior Preferred Stock Outstanding $117.1

TBD

1Q15

$2.5

2009

$7.7

2010

$9.6

2011

$11.6

2012

Dividend Payment to Treasury

(in billions)

$20.6

2014

Cumulative

Total

Total Dividend Payments

through 1Q 2015 2,3 $136.42,3

$0.03

2008

$1.9

1Q152 2013

$82.5