Fannie Mae

Progress Report

FIRST QUARTER 2013

 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

FIRST QUARTER 2013

	Strong credit results and increased revenue 

resulted in pre-tax income of $8.1 billion for 

the first quarter, the fifth consecutive quarterly 

profit and the largest quarterly pre-tax income 

in the company’s history.

	Improvement in our financial results, the 

strong credit profile of our new book of 

business, and other factors enabled us to 

release a $50.6 billion valuation allowance on 

deferred tax assets, resulting in net income of 

$58.7 billion for the first quarter.

SINGLE-FAMILY

BOOK OF BUSINESS

AS OF MARCH 31, 2013

As of May 9, 2013

Single-Family Loans prior to 2009

Single-Family Loans 2009 through

March 31, 2013

69%

31%

LEGACY

NEW

New book of

business is strong,

profitable, and

growing.

$8.1

 billion

Pre-tax income for Q1 2013

Net income for Q1 2013

$58.7

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

March 31, 2013, unless otherwise noted.

www.fanniemae.com/progress

This report includes our expectations regarding our future financial results, 

profitability, our ability to pay taxpayers, our future dividend payments to 

Treasury, 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 and housing market 

variables, future legislative or regulatory requirements, borrower behavior, 

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 and our quarterly report on Form 10-Q for the quarter 

ended March 31, 2013. 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 69 percent of single-family 

guaranty book of business as of

March 31, 2013.

	Remained the largest single issuer of 

single-family mortgage-related securities 

in the secondary market in the first quarter 

of 2013 and remained a constant source of 

liquidity in the multifamily market.

	Funded the mortgage market with 

approximately $3.5 trillion in liquidity, which 

enabled borrowers to complete 10.6 million 

mortgage refinancings and 2.9 million 

home purchases, and provided financing 

for 1.8 million units of multifamily housing.

	Refinanced approximately 3.2 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 $246 in the 

first quarter of 2013.

	Helped 1.3 million families retain their 

homes or avoid foreclosure through 

workout solutions, including approximately 

922,000 loan modifications.

DRIVING DOWN THE SERIOUS 

DELINQUENCY (SDQ) RATE

	Our single-family SDQ rate has declined 12 

consecutive quarters.

LIQUIDITY AND SUPPORT

TO THE MARKET

	We funded the mortgage market with 

approximately $3.5 trillion in liquidity since 

2009, enabling families to buy, refinance, or 

rent a home: 

	Fannie Mae’s single-family SDQ rate was 

3.02 percent.

	Our single-family SDQ rate is substantially 

lower than private market levels.

	95 percent of Fannie Mae’s 17.4 million 

single-family conventional loans are current.

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

Washington, DC 20016-2892 Published May 9, 2013

home

purchases

2.9

million

rental units

1.8

million

mortgage

refinancings

10.6

million

5.47%

3.02%

1Q10

1Q13

TREASURY DRAWS

AND DIVIDEND PAYMENTS

	Through June 30, 2013, Fannie Mae will

have paid taxpayers $95.0 billion in dividends. 

We expect to remain profitable for the 

foreseeable future. 

(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 cannot be used to offset prior Treasury draws.

(2) Our dividend for the second quarter of 2013 is calculated based 

on our net worth of $62.4 billion as of March 31, 2013 less the 

applicable capital reserve amount of $3.0 billion.

$0.0 $2.5

$7.7 $9.6 $11.6

$4.2

$59.4

2008 2009 2010 2011 2012 Q1 2013 Q2 2013

Dividend Payment to Treasury

(in billions)

Cumulative

Total

Total Dividend Payments expected

through Q2 2013 $95.0

2

$15.2

$60.0

$15.0

$25.9

$0.0 $0.0 TBD

2008 2009 2010 2011 2012 Q1 2013 Q2 2013

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