Fannie Mae

Progress Report

SECOND QUARTER 2012

SINGLE-FAMILY

BOOK OF BUSINESS

OUR PURPOSE

 We provide mortgage credit that enables 

people to obtain good, affordable housing.

 We are returning value to taxpayers, 

strengthening housing finance, and improving 

our company.

OUR RESULTS

SECOND QUARTER 2012

 We reported net income of $5.1 billion.

 The company’s continued improvement in 

financial results was due almost entirely to 

credit-related income, resulting primarily from 

an improvement in home prices, improved 

sales prices on the company’s real-estate 

owned (REO) properties, and lower singlefamily serious delinquency rates.

 We reported net income of $7.8 billion

for the first half of 2012.

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

their lifetime.

 We strengthened our underwriting and 

eligibility standards to support sustainable 

homeownership.

•	 The single-family loans we acquired in the

first half of 2012 had a weighted average 

FICO credit score at origination of 762 and 

an average original loan-to-value ratio of

73 percent. 

 As a result, loans in our new single-family 

book of business have strong credit risk 

profiles.

41%

59%

Single-Family Loans prior to 2009

Single-Family Loans 2009 through June 30, 2012

LEGACY

NEW

New book of

business is strong,

profitable, and

growing.

This report includes our expectations regarding 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 quarterly report on Form 10-Q for the quarter ended 

June 30, 2012 and our annual report on Form 10-K for 

the year ended December 31, 2011.
 High-quality new book of business 

accounts for 59 percent of single-family 

guaranty book of business.

 Funded the mortgage market with 

approximately $2.7 trillion in liquidity, 

providing access to financing for 2.2 million 

home purchases and 8.1 million mortgage 

refinancings, and financing for 1.3 million 

units of quality rental housing.

 Refinanced approximately 2.2 million 

mortgages through Refi PlusTM, including 

loans refinanced under the Administration’s 

Home Affordable Refinance Program 

(HARP). 

•	 Refi PlusTM refinances in the second 

quarter of 2012 reduced borrowers’ 

monthly mortgage payments by an 

average of $208.

 Enabled homeowners in distress to retain 

their homes or avoid foreclosure by 

completing approximately 1.2 million loan 

workouts, including more than 797,000 

modifications.

* Fannie Mae data since January 1, 2009, unless otherwise noted.

FANNIE MAE

PERFORMANCE SNAPSHOT*

PAYING

DIVIDENDS TO TAXPAYERS

DRIVING DOWN THE

SERIOUS DELINQUENCY (SDQ) RATE

SDQ Through Second Quarter 2012

 Fannie Mae’s single-family SDQ rate was 

3.53 percent as of June 30, 2012.

 Fannie Mae’s single-family SDQ rate declined 

nine consecutive quarters and our SDQ rate 

is substantially lower than private market 

levels.

 94 percent of Fannie Mae’s 17.6 million loans 

are current.

w w w . f a n n i e m a e . c o m Data as of June 30, 2012

3900 Wisconsin Avenue, NW

Washington, DC 20016-2892

© 2012, Fannie Mae

Issued August 8, 2012

Single-Family SDQ Rates

Data as of March 31, 2012

Source: CoreLogic/LoanPerformance and Fannie Mae.

1 Treasury draw requests 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.

2 Represents cumulative Treasury draws less senior preferred

stock dividend payments to Treasury.

3 Fannie Mae paid dividends to Treasury of $31 million in the

fourth quarter of 2008 and $25 million in the first quarter of 2009.

4 Represents the draw required and requested based on

Fannie Mae’s net worth deficit for the quarters presented. Draw

requests were funded in the quarter following each quarterly net 

worth deficit.

5 Represents quarterly cash dividends paid during the quarters 

presented by Fannie Mae to Treasury, based on an annual rate of 

10% per year on the aggregate liquidation preference of the senior 

preferred stock.

$0.0 $2.5

$7.7 $9.6

$5.8

$15.2

$60.0

$15.0

$25.9

$0.0

2008 2009 2010 2011 2012

Year-to-Date

Dividend Payment to Treasury

Draw Request from Treasury

Dollars in billions

4

3 3

5

Fannie Mae

Freddie Mac

Private Market Jumbo

Private Market Subprime

Private Label Securities Alt-A

0%

5%

10%

15%

20%

25%

30%

35%

40%

0.65% 0.98% 2.42% 5.38% 4.48% 3.91% 3.67%

0.42% 0.65% 1.72% 3.98% 3.84% 3.58% 3.51%

0.48% 1.57% 4.16% 11.21% 13.47% 13.07% 12.86%

8.55% 16.45% 24.12% 34.54% 32.22% 29.70% 28.29%

1.43% 5.17% 14.04% 23.24% 23.42% 22.32% 21.73%

Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Mar-12

Cumulative Total

as of

6/30/2012 12/31/2011

Treasury Draw Requests1 $116.1 $116.1

Dividend Payments $25.6 $19.8

Cumulative Net

Treasury Draws2 $90.5 $96.3

Cumulative Percentage

of Dividends to

Treasury Draws 22.0% 17.1%