Published March 2, 2015
Table of Contents

In the Words of Our CEO 1

Building a Stronger Future 3

Focused on Our Partners 6

Committed to Doing More 10

Giving Back to Our Communities 14

For more information on our business, including information on our 2014 financial results and credit performance, the credit profile of our book of 

business, our expectations for our future financial performance, and significant risks relating to our business, see our annual report on Form 10-K 

for the year ended December 31, 2014, filed with the Securities and Exchange Commission on February 20, 2015 (“2014 Form 10-K”).

This report includes our expectations regarding the focus of our business, our dividend payments to Treasury and the impact of our actions 

on our business and the U.S. housing finance system. 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 2014 Form 10-K. 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.

1

Growing up in Pennsylvania, my family and I lived 

in a modest three-bedroom semi-detached house 

in a suburban neighborhood, where all the little 

houses looked nearly the same. I shared a bedroom with my two brothers. I still remember tha

home vividly, down to the last detail

Whether you own or rent, or are saving up to buy 

your first home, or you work behind the scenes to 

build or invest in America’s housing, you should 

have the ability to create your own memories – 

now and for years to come

It is our mission at Fannie Mae to ensure that families across the country have access to mortgage 

credit to buy, refinance, or rent homes that are 

affordable for the long term. It is what motivates

our work to help build a better housing finance 

system for the future. We take great pride in, and

are inspired by, the promise of working together to 

build something strong and lasting

For me personally, it is a privilege to lead an 

organization that is so committed to our important 

work, and our progress is a continuing source 

of satisfaction. We have come a very long wa

We have improved our business, maintained 

responsible lending standards, enhanced our 

risk management capabilities, and created new 

tools that benefit lenders and the housing finance 

system. We continued to reduce delinquencies

and achieve strong credit performance in 2014

We have helped many families who are struggling 

with their mortgages to keep their homes and avoid 

foreclosure

Our investments in our infrastructure are making 

it more efficient, to the benefit of our customers 

and the country. We are the largest source of

funding for single-family mortgages in the U.S.

and we remain a leading source of financing and 

securitization for quality rental housing for people 

of all income levels throughout the nation. At the

same time, we also are taking steps to attract more 

private capital to the market, which reduces risk 

and minimizes taxpayer exposure

We have provided solid value to America by 

improving our financial performance since entering 

into conservatorship, helping to stabilize the housing market in the wake of the financial crisis. While

they do not reduce the draws we have taken from 

Treasury, we have paid $134.5 billion in dividends

to the taxpayers for the nation’s investment in us

This is a testament to our employees’ hard work 

to improve the housing finance system, provide 

liquidity, and help the housing market recover

It demonstrates our ability to deliver positive 

outcomes for the housing finance system and for 

taxpayers

In 2015, we will remain focused on providing our 

partners – large and small – with the best customer 

service and competitive products so they can serve 

all segments of the market confidently, efficiently, 

and profitably. We will continue to push ahead on

the things we control and effectively respond to 

changes we do not control

Fannie Mae will lead housing finance forward. We

are committed to being America’s most valued 

housing partner

—Timothy J. Mayopoulo

In the Words of Our CEO

3

Building a Stronger Future

Fannie Mae’s business relies on intelligent risk management, and in 2014 we made strong 

progress in enhancing our infrastructure to make the housing finance system safer and more 

efficient. We completed new risk-sharing initiatives to increase the role of private capital

in the market, helping to protect taxpayers. We worked closely with our servicers to help

thousands of distressed homeowners avoid foreclosure, and we continued to acquire loans 

with strong overall credit profiles. We continued to put the legacy issues resulting from the

financial crisis behind us, and re-committed ourselves to our customers as we contribute to 

a stronger, more sustainable housing system. We focused on delivering excellent results

and preparing the company to succeed in a new competitive market in the future. These

critical reforms are underway, they have reduced the risk to Fannie Mae’s business, and 

help us meet the strategic goals of our conservatorship

For 2014, we reported $14.2 billion in net income and $14.7 billion in comprehensiv

income. Our 2014 financial results enabled us to pay $20.6 billion in dividends to Treasur

for the year, resulting in a cumulative total of $134.5 billion in dividends through December

31, 2014 – approximately $18 billion more than we have received in support. As of March

31, 2015, we expect to have paid a total of $136.4 billion in dividend payments to Treasur

Our payments do not reduce our prior draws

Our progress goes far beyond our financial results. To help protect the foundation of

America’s housing finance system, beginning in 2008 we took actions to significantly 

strengthen our underwriting and eligibility standards and change our pricing to promote 

sustainable homeownership and stability in the market. These actions have improved the

credit quality of our book of business and contributed to better credit performance. In turn,

this has helped to support families and stabilize neighborhoods, home prices, and the 

housing market – all contributing to a stronger housing system in America, built to last for 

generations to come

$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)

TBD

1Q15

Cumulative

Total

Initial Liquidation Preference $1.0

Treasury Draw Requests1 $116.1

Total Senior Preferred Stock Outstanding $117.1

$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

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

December 31, 2014 less the applicable capital reserve amount of $1.8 billio

3 Amounts may not sum due to rounding
4

We also have made important progress toward our goals in conservatorship to build new 

capabilities that increase the safety and soundness of the housing finance system and 

encourage more market participation. For example, we remain committed to working with

the Federal Housing Finance Agency (FHFA) to develop a new common securitization 

platform, intended to simplify and modernize the way mortgage loans are securitized

We also have been working with FHFA and the industry on new financial and operational 

requirements for mortgage insurers that should dramatically improve mortgage insurance 

risk management. Additionally, we are working to develop a single common mortgagebacked security for Fannie Mae and Freddie Mac, with a goal of increasing liquidity in the

housing finance market

In 2014, we completed four new credit risk transfer transactions, which transferred a portion 

of the existing credit risk on our single-family guaranty book of business to private investors

By increasing the role of private capital in the mortgage market, these transactions help to 

reduce taxpayer exposure from borrower defaults

These initiatives, along with others we are pursuing, are designed to ensure that we effectively respond to changes in the market and build a stronger, more sustainable system

While the future of our company remains uncertain, we are looking ahead and improving 

the way we operate with FHFA’s guidance to support America’s housing. We have made

significant progress, reflecting the commitment of Fannie Mae employees to strengthen our 

company’s foundation, provide reliable access to affordable mortgage credit, and supply the 

tools and resources the industry needs for the long term

446K

rental units

Our $434 billion in liquidity in 2014 enabled:

home

purchases

887K

mortgage

refinancings

937K

6

Focused on Our Partners

As America’s housing industry continues to adjust and grow in the wake of the financial 

crisis, Fannie Mae has re-committed to being the partner of choice in the secondary 

mortgage market. To do so, we will provide a superior customer experience that allows

our lenders to work quickly and with certainty. Customer service is not new to us – our

dedicated account teams work closely with our lenders every day, continually learning how 

they operate and finding constructive solutions that deliver the full value of Fannie Mae

However, we are making it easier, more efficient, and more effective to do business with 

us, today and in the future, so our customers can serve the market safely and profitably

Lowering repurchase risk understandably 

is a priority area for our customers

Based on their feedback, we have made 

significant changes to our representation 

and warranty framework to help lenders 

reduce their repurchase risk relating to 

loans they deliver to us. We provided

lenders with greater clarity on the circumstances that would result in a repurchase 

request. We are expediting our review

of newly acquired performing loans to 

identify loan defects earlier in the process 

and are making more frequent use of the 

alternatives to repurchase specified in our 

Selling Guide

Also, we are providing lenders with training and feedback to help them resolve origination 

issues and reduce loan origination defects, and our innovative tools such as EarlyCheckTM 

and Collateral UnderwriterTM are helping them deliver loans that meet our eligibility standards

We see Collateral Underwriter as a major step toward mitigating repurchase risk for lenders

With access to the same system we use internally at Fannie Mae to analyze appraisals, 

lenders can compare a property against our database and against other pieces of information 

we have about the home and neighboring properties, helping them to address appraisal 

quality before delivering a loan to Fannie Mae – at no additional cost. By reducing the potential for repurchases down the road, our tools provide lenders the clarity they need to serve the

market

We provide best-in-class products and resources that meet the needs of our customers, 

large and small. In fact, we are the preferred partner for smaller originators, including community banks, credit unions, independent mortgage bankers, and state and local Housing

Finance Agencies. Our account teams are focused on the specific and unique business

needs of our smaller customers to help them meet their objectives

Additionally, through our capital markets activities, we enable lenders to replenish their funds 

and originate new loans through a variety of options. Lenders can sell their loans to Fannie Mae

Visit fanniemae.com/progress 

to learn more about our lender 

resources.


9

for cash through our robust cash window or swap their loans for Fannie Mae mortgagebacked securities (Fannie Mae MBS), which lenders can keep for their portfolio or sell to 

investors. Under our early lender funding programs, we purchase whole loans or pools

of loans on an accelerated basis – this allows lenders to receive quicker payment, which 

replenishes their funds and enables them to originate more single-family loans

Fannie Mae also is a leading source of financing and securitization for quality rental housing 

in America. Our multifamily business is taking steps to continue to strengthen relationships

with our lenders, provide financing solutions to help them compete in the market, and create 

securities that are attractive to our investors. In 2014, we provided $28.9 billion in multifamil

financing to serve multiple segments of the multifamily market, resulting in 446,000 units 

of rental housing. We accomplished this in partnership with our 24 approved Delegated

Underwriting and Servicing (DUS®) lenders, who delivered nearly 100 percent of Fannie 

Mae’s 2014 multifamily loan acquisitions

For 27 years, Fannie Mae’s unique DUS program has played a significant role in the multifamily housing market, providing lenders and borrowers with efficient and reliable financing 

solutions every day while helping to protect taxpayers. Our DUS program was the original

“skin in the game” model in mortgage lending, with our DUS lenders sharing the first loss 

on the loans they originate and deliver to us. Through this shared-risk model, Fannie Mae

provides certainty and speed of execution, competitive pricing, and strong credit risk management to our multifamily lenders and their borrowers

At Fannie Mae, we recognize and appreciate what is most important to our lender partners

We are focused on providing the products, services, and clarity they need to serve their 

customers and reduce barriers to lending to qualified borrowers

multifamily 

loans 60+ days 

delinquent as of 

12/31/2014

in total financing 

provided to the 

multifamily market 

in 2014

$28.9B +

85% 0.05%

of rental units financed 

in 2014 were affordable 

for those at or below 

area median income
Committed to Doing More

Fannie Mae serves an essential role in the market – and that role is as important now as it 

was in 1938, when we were created to bolster the nation’s housing system during the Great 

Depression. It’s why we exist today under FHFA supervision. We help to ensure that qualified home buyers across the nation have access to mortgage credit in good times and bad

and that quality, affordable rental housing is available. With the support of our conservator,

we can be counted on when people need us most

We are proud to be the leading provider of liquidity to America’s housing and mortgage market

In 2014, our approximately $434 billion in financing enabled 887,000 home purchases, 937,000 

mortgage refinances, and 446,000 units of rental housing from coast to coast. We also remain

a leading provider of the prepayable 30-year fixed-rate mortgage, which protects homeowners 

from fluctuations in interest rates. This is just one of the ways we are helping people who

are financially ready to own a home while limiting risk to lenders and taxpayers. Additionally,

through our unparalleled loss mitigation platform and broad suite of loan workout options, 

in 2014 we provided approximately 165,000 solutions that helped families in distress avoid 

foreclosure
11

10k

30k

60k

Supporting the Housing Market in 2014 

We enabled people to buy, refinance, and rent 

homes across the United States.

13

While we have made good progress, we are not satisfied with the status quo – we strive 

for continuous improvement through innovation to help more creditworthy borrowers buy 

homes. We are focused on doing more to expand access to mortgage credit in a responsible

and sustainable manner

Together with our partners we are working to reduce the barriers that qualified borrowers 

might face. For instance, by providing greater clarity on our representation and warranty

framework, we intend to help mortgage originators serve the market more confidently and 

lend to the full scope of our credit parameters, enabling more creditworthy borrowers to 

qualify for a mortgage loan

Additionally, we expanded our low down payment offerings in 2014 to re-introduce loans with 

a 97 percent loan-to-value (LTV) ratio. These loans are available to first-time home buyers

who qualify for a mortgage but don’t have the resources to make a large down payment

Higher LTV products are not new at Fannie Mae – the 97 percent LTV option builds on our 

successful lower down payment programs offered through state Housing Finance Agencies, 

and we have offered a 5 percent down payment option for more than 25 years

We believe these products will encourage 

lenders to make credit available to a 

larger number of creditworthy borrowers

Importantly, we conduct this business in a 

safe and prudent way, having eliminated 

the practices that led to significant problems leading up to the housing crisis. For

instance, we require borrowers to purchase 

mortgage insurance on most of our higher 

LTV ratio loans, which reduces taxpayer 

exposure. Also, home purchase loans we

acquire must have appropriate documentation and income verification – we do not 

accept so-called “no-doc” or “low-doc” 

loans*

These are just a few of the actions we 

are taking to reduce barriers to affordable 

mortgage credit in a responsible manner

There is no single solution that will help us 

achieve this – rather, it requires sustained 

focus fueled by constant innovation. Fannie

Mae is proud to lead the way

17.4M

single-family 

conventional loans

as of 12/31/14

are long-term 

fixed-rate mortgages

are current 

on payments

96% 78%

*Refi PlusTM loans are subject to different eligibility requirements.
14

3,000+Fannie Mae employees 

23,115 volunteer hours 

$148,000+raised 

11 nonprofits benefitted

Giving Back to Our Communities

As part of our efforts to build a better housing finance system, we strive to help the thousands 

of individuals and families who don’t have a place to call home. Fannie Mae has a strong

tradition of giving back to those in need, particularly the homeless and those at risk of becoming homeless. Our employee volunteer and philanthropic efforts, which build and strengthen

relationships with the communities we serve, are aligned with the company’s priority to ensure 

that affordable housing is accessible in all communities across the country at all times

Our workforce rallies together throughout the year to support homeless service providers, 

staff borrower outreach events, rebuild homes in hard-hit neighborhoods, refurbish inner-city 

schools, host food and clothing drives for struggling families, and much more. In 2014, more

than 3,000 Fannie Mae employees raised more than $148,000 and volunteered a total of 

23,115 hours on a wide range of projects and initiatives

Additionally, our Help the Homeless Program provides a fundraising model that benefits 

organizations working to prevent and end homelessness across the country. Each year,

Fannie Mae employees join thousands of others across the country who support the 

program by participating in community events, making donations, and volunteering their 

time and energy. The program has proudly distributed more than $100 million to Help the

Homeless nonprofit beneficiaries since 1988

In 2014

www.fanniemae.com/progre

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Washington, DC 20016

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