Fannie Mae

Progress Report

FOURTH QUARTER 2012

 We are setting responsible credit standards 

to protect homeowners and taxpayers while 

making it possible for families to purchase, 

refinance, or rent a home. 

 We expect that the loans in our new singlefamily book of business will be profitable over 

their lifetime.

 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, loans in our new single-family book 

of business have strong credit risk profiles.

OUR PURPOSE

	We are focused on supporting the housing 

market recovery and helping to lay the 

foundation for a better housing finance 

system going forward.

	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 a home; and building a book of 

business that will help return taxpayers’ 

investment in the company.

OUR RESULTS

FOURTH QUARTER 2012

	Significant improvement in credit results 

and growing revenue from our new book of 

business resulted in annual net income of 

$17.2 billion and $7.6 billion for the fourth 

quarter, the largest annual and quarterly net 

income in the company’s history.

	Fannie Mae expects to remain profitable for 

the foreseeable future.

SINGLE-FAMILY

BOOK OF BUSINESS

AS OF DECEMBER 31, 2012

As of April 2, 2013

Single-Family Loans prior to 2009

Single-Family Loans 2009 through

December 31, 2012

66%

34%

LEGACY

NEW

New book of

business is strong,

profitable, and

growing.

$7.6

 billion

Net income 

for Q4 2012

Net income 

for FY 2012

$17.2

 billion
Treasury Draws and Dividend Payments

Draws from Treasury(1)

Dividend Payments

to Treasury

$15.2

$60.0

$15.0

$25.9

$0.0 $2.5

$7.7 $9.6

2008 2009 2010 2011

($ in Billions)

$0.0

$11.6

2012

Cumulative Total Through

December 31,

2011

Treasury Draws(1) $ 116.1

Dividend Payments $ 19.8

December 31,

2012

$ 116.1

$ 31.4

* Fannie Mae data for the period January 1, 2009 through 

December 31, 2012, unless otherwise noted.

www.fanniemae.com

This report includes our expectations regarding our 

future financial results, profitability, our ability to pay 

taxpayers, and the growth, profitability, and caliber of 

the loans in our new single-family book of business. 

These expectations are forward-looking statements 

based on our current assumptions regarding numerous 

factors, including future home prices. Our actual results 

and future expectations may differ materially from our 

current expectations as a result of home price changes, 

unemployment rates, other macroeconomic variables, 

government policy, social behaviors, and many other 

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, 2012. 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*

	High-quality new book of business 

accounted for 66 percent of single-family 

guaranty book of business as of

December 31, 2012.

	Remained the largest single issuer of 

single-family mortgage-related securities in 

the secondary market in the fourth quarter 

of 2012 and remained a constant source of 

liquidity in the multifamily market.

	Funded the mortgage market with 

approximately $3.3 trillion in liquidity, which 

enabled borrowers to complete 9.7 million 

mortgage refinancings and 2.7 million 

home purchases, and provided financing 

for 1.7 million units of multifamily housing.

	Refinanced approximately 2.8 million 

mortgages through the company’s Refi 

PlusTM initiative, including loans refinanced 

under the Administration’s Home Affordable 

Refinance Program (HARP). As a result of 

Refi Plus, borrowers’ monthly payments 

were reduced by an average of $237 in the 

fourth quarter of 2012.

	Helped more than 1.2 million families retain 

their homes or avoid foreclosure through 

workout solutions, including 879,000 loan 

modifications.

DRIVING DOWN THE SERIOUS 

DELINQUENCY (SDQ) RATE

	Our single-family SDQ rate has declined 11 

consecutive quarters.

LIQUIDITY AND SUPPORT

TO THE MARKET

	We funded the mortgage market with 

approximately $3.3 trillion in liquidity since 

2009, enabling families to buy, refinance, or 

rent a home: 

	Fannie Mae’s single-family SDQ rate was 

3.29 percent.

	Our single-family SDQ rate is substantially 

lower than private market levels.

	94 percent of Fannie Mae’s 17.5 million loans 

are current.

Data as of December 31, 2012 3900 Wisconsin Avenue, NW © 2013, Fannie Mae

Washington, DC 20016-2892 Published April 2, 2013

home

purchases

2.7

million

rental units

1.7

million

mortgage

refinancings

9.7

million

5.47%

3.29%

1Q10

4Q12

TREASURY DRAWS

AND DIVIDEND PAYMENTS

	Through March 31, 2013, Fannie Mae paid 

taxpayers $35.6 billion in dividends. We 

expect to remain profitable for the foreseeable 

future.

(1) Treasury draws 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 liquidation 

preference on Fannie Mae’s senior preferred stock is not reduced 

by the payment of dividends to Treasury.