2016ThirdQuarterCreditSupplement

November3,2016

©2016FannieMae.TrademarksofFannieMae.
ThispresentationincludesinformationaboutFannieMae,includinginformationcontainedin

FannieMae’sQuarterlyReportonForm10-QforthequarterendedSeptember30,2016,the

“2016Q3Form 10-Q.”Someofthetermsusedinthesematerialsaredefinedanddiscussed

morefullyinthe2016Q3Form 10-QandinFannieMae’sForm10-Kfortheyearended

December31,2015,the“2015Form 10-K.”Thesematerialsshouldbereviewedtogetherwith

the2016Q3Form10-Qandthe2015Form10-K,copiesofwhichareavailablethroughthe

“SECFilings”pageinthe“AboutUs/InvestorRelations”sectionofFannieMae’swebsiteat

www.fanniemae.com.

Someoftheinformationinthispresentationisbaseduponinformationthatwereceivedfrom

third-partysourcessuchassellersandservicersofmortgageloans.Althoughwegenerally

considerthisinformationreliable,wedonotindependentlyverifyallreportedinformation.

Duetorounding,amountsreportedinthispresentationmaynotaddtototalsindicated(or

100%).

Unlessotherwiseindicateddatalabeledas“YTD2016”isasofSeptember30,2016orforthe

firstninemonthsof2016.

§

.

.§

.

§

§

©2016FannieMae.TrademarksofFannieMae.
©2016FannieMae.TrademarksofFannieMae. 2

TableofContents

HomePriceGrowth/DeclineRatesintheU.S.

OneYearHomePriceChangeasof2016Q3

HomePriceChangeFrom2006Q3Through2016Q3 5

4

3

HomePrices

CreditCharacteristicsofSingle-FamilyBusinessAcquisitions

CreditRiskProfileSummaryofSingle-FamilyBusinessAcquisitions

CertainCreditCharacteristicsofSingle-FamilyBusinessAcquisitions:2005-2016

Single-FamilyBusinessAcquisitionsbyLoanPurpose

CreditCharacteristicsofSingle-FamilyConventionalGuarantyBookofBusinessbyOriginationYear

CreditCharacteristicsofSingle-FamilyConventionalGuarantyBookofBusinessbyCertainProductFeatures 11

10

9

8

7

6

CreditProfileofFannieMaeSingle-FamilyLoans

CreditCharacteristicsofSingle-FamilyConventionalGuarantyBookofBusinessandSingle-FamilyRealEstateOwned(REO)inSelectStates

SeriouslyDelinquentLoanandREOEndingInventorySharebySelectStates

Single-FamilyShortSalesandREOSalesPricestoUnpaidPrincipalBalance(UPB)ofMortgageLoans 14

13

12

GeographicCreditProfileofFannieMaeSingle-FamilyLoansandForeclosedProperties(REO)

Single-FamilyLoanWorkouts

Re-performanceRatesofModifiedSingle-FamilyLoans 16

15

WorkoutsofFannieMaeSingle-FamilyLoans

CreditLossConcentrationofSingle-FamilyConventionalGuarantyBookofBusiness

CumulativeDefaultRatesofSingle-FamilyConventionalGuarantyBookofBusinessbyOriginationYear 18

17

AdditionalCreditInformationforFannieMaeSingle-FamilyLoans

MultifamilyCreditProfilebyLoanAttributes

SeriousDelinquencyRatesofMultifamilyBookofBusiness

CumulativeCreditLossRatesofMultifamilyGuarantyBookofBusinessByAcquisitionYear 22

21

19-20

CreditProfileofFannieMaeMultifamilyLoans
*Year-to-dateasofSeptember2016.

**Year-to-dateasofQ22016.Ascomparison,FannieMae’sindexforthesameperiodis4.1%.

Basedonourhomepriceindex,weestimatethathomepricesonanationalbasisincreasedby1.5%inthethirdquarterof2016andby5.7%inthefirstnine

monthsof2016,followingincreasesof4.7%in2015,4.3%in2014and7.8%in2013.Despitetherecentincreasesinhomeprices,weestimatethat,through

September30,2016,homepricesonanationalbasisremained1.1%belowtheirpeakinthethirdquarterof2006.Ourhomepriceestimatesarebasedon

preliminarydataandaresubjecttochangeasadditionaldatabecomeavailable.

HomePriceGrowth/DeclineRatesintheU.S.

Note:EstimatebasedonpurchasetransactionsinFannie-FreddieacquisitionandpublicdeeddataavailablethroughtheendofSeptember2016.Includingsubsequentdatamayleadtomateriallydifferentresults.

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

-10%

-5%

0%

5%

10%

15%

11.3%

-3.6%

-9.1%

-4.7% -4.3%

-3.5%

2.6%

4.0%

7.8%

4.3% 4.7%

5.7%

FannieMaeHomePriceIndex

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

13.5% 1.7% -5.4% -12.0% -3.8% -4.1% -3.9% 6.5% 10.7% 4.5% 5.3% 3.9%

S&P/Case-ShillerIndex

©2016FannieMae.TrademarksofFannieMae. 3

*

**
OneYearHomePriceChangeasof2016Q3*

MI

7.7%

2.4%

SC

3.8%

1.2%

NC

4.1%

2.5%

LA

3.3%

0.9%

OR

11.0%

1.7%

CO

10.5%

2.8%

CA

7.5%

19.6%

WY

-1.0%

0.2%

AL

2.1%

1.0%

AR

2.7%

0.5%

IA

4.6%

0.7%

IL

3.4%

3.9% KS

4.1%

0.5%

KY

4.6%

0.6%

ME

4.3%

0.3%

MO

4.5%

1.3%

MS

3.4%

0.4%

ND

2.6%

0.2%

NE

4.9%

0.5%

NM

2.5%

0.5%

OH

4.6%

2.0%

OK

1.5%

0.7%

WV

4.0%

0.2%

AZ

7.8%

2.5%

VA

3.1%

3.5%

FL

9.1%

5.6%

GA

6.7%

2.7%

ID

7.9%

0.6%

IN

5.0%

1.2%

MN

5.4%

2.0%

MT

5.4%

0.3%

NV

6.9%

1.0%

NY

5.6%

5.3%

SD

5.0%

0.2%

TN

7.1%

1.3%

TX

5.2%

6.0%

UT

8.2%

1.2%

WA

9.7%

3.6%

PA

2.9%

3.0%

WI

5.0%

1.8%

Example

State:FL

GrowthRate:9.1%

UPB%**:5.6%

UnitedStates:5.4%

*Source:FannieMae.HomepriceestimatesarebasedonpurchasetransactionsinFannie-FreddieacquisitionandpublicdeeddataavailablethroughtheendofSeptember2016.UPBestimatesarebasedondata

availablethroughtheendofSeptember2016.Includingsubsequentdatamayleadtomateriallydifferentresults.

**“UPB%”referstounpaidprincipalbalanceofloansonpropertiesintheapplicablestateasapercentageofunpaidprincipalbalanceofsingle-familyconventionalguarantybookofbusinessforwhichFannieMae

hasaccesstoloan-levelinformation.

©2016FannieMae.TrademarksofFannieMae. 4

AK

0.8%

0.2%

Growth

Rate

UPB%**

CT

DC

DE

MA

MD

NH

NJ

RI

VT 0.2%

0.3%

3.8%

0.5%

2.7%

2.9%

0.4%

0.4%

1.3%

3.2%

8.6%

2.6%

3.8%

2.5%

4.6%

0.6%

3.8%

0.1%

HI

5.0%

0.8%

StateGrowthRate

Below0%

0%to5%

5%to10%

10%andAbove
LA

16.0%

0.9%

SC

1.3%

1.2%

NC

3.8%

2.5%

MI

-5.1%

2.4%

AZ

-23.1%

2.5%

FL

-23.8%

5.6%

NV

-29.3%

1.0%

CA

-11.6%

19.6%

IL

-11.6%

CO 3.9%

30.2%

2.8%

IA

15.4%

0.7%

KS

13.0%

0.5%

KY

10.3%

0.6%

MT

17.9%

0.3%

ND

55.2%

0.2%

NE

17.6%

0.5%

OK

15.4%

0.7%

SD

24.3%

0.2%

TN

10.7%

1.3%

TX

30.2%

6.0%

UT

15.7%

1.2%

WY

15.1%

0.2%

VA

-8.7%

3.5%

GA

-3.4%

2.7%

ID

-0.6%

0.6%

MN

-1.4%

2.0%

NM

-4.8%

0.5%

OH

-0.3%

2.0%

AL

0.4%

1.0%

ME

0.5%

0.3%

MO

3.3%

1.3%

MS

1.8%

0.4%

NY

1.1%

5.3%

PA

4.7%

3.0%

OR

7.9%

1.7%

WA

6.3%

3.6%

WV

7.5%

0.2%

AR

5.2%

0.5%

IN

9.3%

1.2%

WI

1.1%

1.8%

UnitedStates:-1.1%

HomePriceChangeFrom 2006Q3Through2016Q3*

*Source:FannieMae.HomepriceestimatesarebasedonpurchasetransactionsinFannie-FreddieacquisitionandpublicdeeddataavailablethroughtheendofSeptember2016.UPBestimatesarebasedondataavailablethrough

theendofSeptember2016.Includingsubsequentdatamayleadtomateriallydifferentresults.

**“UPB%”referstounpaidprincipalbalanceofloansonpropertiesintheapplicablestateasapercentageofunpaidprincipalbalanceofsingle-familyconventionalguarantybookofbusinessforwhichFannieMaehasaccessto

loan-levelinformation.

Note:Homepricesonanationalbasisreachedapeakinthethirdquarterof2006.

©2016FannieMae.TrademarksofFannieMae. 5

AK

12.9%

0.2%

HI

3.5%

0.8%

Growth

Rate

UPB%**

CT

DC

DE

MA

MD

NH

NJ

RI

VT 0.2%

0.3%

3.8%

0.5%

2.7%

2.9%

0.4%

0.4%

1.3%

-1.3%

-15.2%

-17.3%

-7.0%

-16.7%

0.9%

-12.5%

34.1%

-17.0%

StateGrowthRate

Below-15%

-15%to-5%

-5%to0%

0%to5%

5%to10%

10%andAbove
Q32016

Single-Family

Acquisitions

Excl.

RefiPlus

Q22016

Single-Family

Acquisitions

Excl.

RefiPlus

Q12016

Single-Family

Acquisitions

Excl.

RefiPlus

FullYear2015

Single-Family

Acquisitions

Excl.

RefiPlus

Q42015

Single-Family

Acquisitions

Excl.

RefiPlus

Q32015

Single-Family

Acquisitions

Excl.

RefiPlus

UnpaidPrincipalBalance(UPB)($B)

WeightedAverageOriginationNoteRate 3.66%

$160.2

3.66%

$165.6

3.82%

$129.2

3.83%

$135.0

4.01%

$96.4

4.02%

$102.2

3.97%

$441.0

3.98%

$471.4

4.04%

$99.7

4.04%

$105.6

4.04%

$117.6

4.05%

$124.5

Single-FamilyAcquisitions

5.2%

8.0%

20.6%

<=60%

60.01%to70%

70.01%to80%

80.01%to90%

90.01%to100%

>100%

WeightedAverageOriginationLTVRatio 73.9%

0.0%

15.5%

11.7%

38.4%

14.2%

20.2%

73.8%

0.3%

15.3%

11.8%

37.8%

14.3%

20.6%

74.8%

0.0%

16.3%

12.2%

39.7%

13.8%

18.0%

74.7%

0.4%

16.0%

12.3%

38.9%

13.9%

18.5%

74.6%

0.0%

15.3%

12.0%

40.8%

13.8%

18.1%

74.5%

0.6%

15.0%

12.2%

39.6%

13.9%

18.7%

74.8%

0.0%

15.2%

12.3%

41.3%

13.6%

17.5%

74.8%

0.8%

14.9%

12.5%

40.0%

13.7%

18.2%

75.4%

0.0%

16.3%

13.0%

40.8%

13.0%

16.9%

75.3%

0.7%

15.9%

13.1%

39.7%

13.1%

17.5%

75.7%

0.0%

16.9%

12.7%

41.3%

12.5%

16.6%

75.6%

0.7%

16.6%

12.8%

40.1%

12.6%

17.1%

OriginationLoan-to-Value(LTV)Ratio

<620

620to<660

660to<700

700to<740

>=740

WeightedAverageFICOCreditScore 753

66.1%

19.9%

10.4%

3.6%

0.0%

752

65.2%

19.9%

10.7%

3.9%

0.3%

751

63.6%

21.1%

11.4%

3.8%

0.0%

749

62.5%

21.0%

11.8%

4.2%

0.4%

748

61.2%

21.5%

12.6%

4.7%

0.0%

746

59.8%

21.4%

13.0%

5.2%

0.5%

750

63.5%

20.5%

11.7%

4.2%

0.0%

748

62.1%

20.4%

12.1%

4.7%

0.6%

748

61.2%

21.3%

12.6%

4.8%

0.0%

746

59.9%

21.2%

13.0%

5.3%

0.6%

749

62.4%

20.8%

12.2%

4.5%

0.0%

747

61.1%

20.7%

12.6%

5.0%

0.6%

FICOCreditScores

CreditCharacteristicsofSingle-FamilyBusinessAcquisitions

Fixed-rate

Adjustable-rate

Alt-A

InterestOnly

Investor

Condo/Co-op

Refinance 51.5%

9.5%

5.2%

0.0%

0.0%

1.6%

98.4%

53.0%

9.5%

5.4%

0.0%

0.2%

1.6%

98.4%

51.3%

10.0%

5.7%

0.0%

0.0%

1.5%

98.5%

53.4%

9.9%

6.1%

0.0%

0.3%

1.5%

98.5%

50.9%

9.7%

6.6%

0.0%

0.0%

2.4%

97.6%

53.7%

9.7%

7.1%

0.0%

0.4%

2.3%

97.7%

51.6%

10.0%

7.2%

0.0%

0.0%

2.6%

97.4%

54.7%

10.0%

7.8%

0.0%

0.4%

2.5%

97.5%

46.7%

10.0%

6.8%

0.0%

0.0%

2.9%

97.1%

49.7%

9.9%

7.4%

0.0%

0.4%

2.8%

97.2%

42.9%

10.1%

7.2%

0.0%

0.0%

2.6%

97.4%

46.1%

10.0%

7.7%

0.0%

0.3%

2.5%

97.5%

CertainCharacteristics

Purchase

Cash-outrefinance

Otherrefinance 33.0%

18.4%

48.5%

35.2%

17.8%

47.0%

32.1%

19.2%

48.7%

35.0%

18.4%

46.6%

29.4%

21.6%

49.1%

33.4%

20.4%

46.3%

31.7%

19.9%

48.4%

36.1%

18.6%

45.3%

26.2%

20.5%

53.3%

30.4%

19.3%

50.3%

23.6%

19.3%

57.1%

27.9%

18.2%

53.9%

LoanPurpose

Percentagecalculatedbasedonunpaidprincipalbalanceofloansattimeofacquisition.Single-familybusinessacquisitionsrefertosingle-familymortgageloansweacquirethroughpurchaseorsecuritizationtransactions.

Single-familybusinessacquisitionsfortheapplicableperiodexcludingloansacquiredunderourRefiPlusinitiative,whichincludestheHomeAffordableRefinanceProgram®(“HARP®”).OurRefiPlusinitiativeprovidesexpandedrefinance

opportunitiesforeligibleFannieMaeborrowers,andmayinvolvetherefinanceofexistingFannieMaeloanswithhighloan-to-valueratios,includingloanswithloan-to-valueratiosinexcessof100%.

FICOcreditscoreisasofloanorigination,asreportedbythesellerofthemortgageloan.

NewlyoriginatedAlt-AloansfortheapplicableperiodsconsistoftherefinanceofexistingloansunderourRefiPlusinitiative.ForadescriptionofourAlt-Aloanclassificationcriteria,refertoFannieMae’s2016Q3Form10-Q.

Single-FamilyAcquisitions

5.3%

7.2%

21.0%

Single-FamilyAcquisitions

5.0%

7.2%

23.0%

(1)

(2)

(3)

(4)

Single-FamilyAcquisitions

5.8%

7.6%

21.7%

Single-FamilyAcquisitions

5.4%

7.1%

23.0%

Single-FamilyAcquisitions

California

Texas

Florida 4.9%

6.9%

22.8%

©2016FannieMae.TrademarksofFannieMae. 6

AcquisitionPeriod

(4)

(2) (2) (2) (2) (2) (2)

(3)

(1)

Top3GeographicConcentrations
Percentagecalculatedbasedonunpaidprincipalbalanceofloansattimeofacquisition.Single-familybusinessacquisitionsrefertosingle-familymortgageloansweacquirethroughpurchaseorsecuritization

transactions.

FICOcreditscoreisasofloanorigination,asreportedbythesellerofthemortgageloan.FICOcreditscoresatoriginationbelow620primarilyconsistoftherefinanceofexistingloansunderourRefiPlus

initiative,whichincludestheHomeAffordableRefinanceProgram(“HARP”).OurRefiPlusinitiativeprovidesexpandedrefinanceopportunitiesforeligibleFannieMaeborrowers,andmayinvolvetherefinance

ofexistingFannieMaeloanswithhighloan-to-valueratios,includingloanswithloan-to-valueratiosinexcessof100%.

Single-familybusinessacquisitionsfortheapplicableperiodexcludingloansacquiredunderourRefiPlusinitiative,whichincludesHARP.

<=60%

60.01%

to80%

80.01%

to100% >100% Total

>=740

660to<740

620to<660

<620

Total 100.0%

0.4%

4.3%

32.3%

62.9%

0.4%

0.0%

0.1%

0.2%

0.1%

27.5%

0.1%

1.1%

10.5%

15.8%

52.7%

0.2%

2.3%

16.8%

33.4%

19.4%

0.1%

0.8%

4.9%

13.6%

<=60%

60.01%

to80%

80.01%

to100% >100% Total

>=740

660to<740

620to<660

<620

Total 100.0%

0.6%

4.6%

32.0%

62.8%

0.8%

0.1%

0.1%

0.3%

0.3%

26.9%

0.2%

1.1%

10.2%

15.4%

53.9%

0.2%

2.5%

16.9%

34.2%

18.4%

0.1%

0.8%

4.6%

12.9%

<=60%

60.01%

to80%

80.01%

to95% >95% Total

>=740

660to<740

620to<660

Total 100.0%

3.9%

32.0%

64.0%

2.3%

0.1%

1.1%

1.1%

25.3%

0.9%

9.4%

15.0%

53.4%

2.2%

16.9%

34.3%

19.0%

0.7%

4.6%

13.6%

<=60%

60.01%

to80%

80.01%

to95% >95% Total

>=740

660to<740

620to<660

Total 100.0%

4.1%

31.7%

64.2%

1.5%

0.1%

0.8%

0.7%

25.5%

0.9%

9.4%

15.2%

55.2%

2.4%

17.2%

35.5%

17.7%

0.7%

4.3%

12.8%

CreditProfileforSingle-FamilyAcquisitions(ExcludingRefiPlus)

FICOCreditScoreFICOCreditScoreFICOCreditScore

FICOCreditScoreFICOCreditScoreFICOCreditScore

(1)

(2)

(3)

©2016FannieMae.TrademarksofFannieMae. 7

<=60%

60.01%

to80%

80.01%

to100% >100% Total

>=740

660to<740

620to<660

<620

Total 0.0%

-0.2%

-0.3%

0.3%

0.2%

-0.4%

0.0%

-0.1%

-0.1%

-0.1%

0.6%

-0.1%

0.0%

0.3%

0.4%

-1.2%

-0.1%

-0.2%

-0.2%

-0.8%

1.0%

0.0%

0.0%

0.3%

0.7%

<=60%

60.01%

to80%

80.01%

to95% >95% Total

>=740

660to<740

620to<660

Total 0.0%

-0.1%

0.3%

-0.1%

0.8%

0.0%

0.3%

0.5%

-0.2%

0.0%

0.0%

-0.1%

-1.9%

-0.2%

-0.4%

-1.3%

1.2%

0.0%

0.4%

0.9%

CreditProfileforSingle-FamilyAcquisitions

CreditRiskProfileSummaryofSingle-FamilyBusinessAcquisitions

FortheNine

MonthsEnded

September30,2016

FortheNine

MonthsEnded

September30,2016

FortheNine

MonthsEnded

September30,2015

FortheNine

MonthsEnded

September30,2015

Changein

Acquisitions

Profile

Changein

Acquisitions

Profile

OriginationLTVRatio OriginationLTVRatio OriginationLTVRatio

OriginationLTVRatio OriginationLTVRatio OriginationLTVRatio

(2)(2)(2)

(2)(2)(2)

(3)

(1)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

40%

60%

80%

100%

OriginationLTV

Ratio

0%

5%

10%

15%

20%

%ofSingle-FamilyBusinessAcquisitions

OriginationLoan-to-Value(OLTV)Ratio

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

660

680

700

720

740

760

780

FIC

O

CreditScore

0%

5%

10%

15%

20%

%ofSingle-FamilyBusinessAcquisitions

FICOCreditScore

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

0%

20%

40%

60%

80%

100%

%ofSingle-FamilyBusinessAcquisitions

ShareofSingle-FamilyBusinessAcquisitions:

Fixed-rateProduct

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

0%

20%

40%

60%

80%

100%

%ofSingle-FamilyBusinessAcquisitions

ShareofSingle-FamilyBusinessAcquisitions:

LoanPurpose-Purchase

ProductFeature

WeightedAverageOriginationLTVRatio OriginationLTV>90% WeightedAverageFICOCreditScore FICOCreditScore<620

Percentagecalculatedbasedonunpaidprincipalbalanceofloansattimeofacquisition.Single-familybusinessacquisitionsrefertosingle-familymortgageloansweacquirethroughpurchaseorsecuritization

transactions.

FICOcreditscoreisasofloanorigination,asreportedbythesellerofthemortgageloan.Loansacquiredafter2009withFICOcreditscoresatoriginationbelow620primarilyconsistoftherefinanceofexisting

loansunderourRefiPlusinitiative,whichincludesHARP.

CertainCreditCharacteristicsofSingle-FamilyBusinessAcquisitions:2005-2016

(1)

(2)

.

©2016FannieMae.TrademarksofFannieMae. 8

*Year-to-datethroughSeptember30,2016.

(2)

(1)

* *

* *
2009 2010 2011 2012 2013 2014 2015 2016

0%

20%

40%

60%

80%

100%

%ofSingle-FamilyBusinessAcquisitions

2% 1%

3% 4%

6%

16% 14% 10% 10% 4%

6%

9%

9%

14% 14%

7%

49% 36% 48%

48%

54% 52% 55%

69%

45% 47% 52%

30%

20% 23% 24% 21%

Single-FamilyBusinessAcquisitionsbyLoanPurpose

HARP RefiPlusAcquisitions(ExcludingHARP) RefinanceAcquisitions(ExcludingRefiPlus) PurchaseAcquisitions

2009

HARP

RefiPlus

(Excl.

HARP)

2010

HARP

RefiPlus

(Excl.

HARP)

2011

HARP

RefiPlus

(Excl.

HARP)

2012

HARP

RefiPlus

(Excl.

HARP)

2013

HARP

RefiPlus

(Excl.

HARP)

2014

HARP

RefiPlus

(Excl.

HARP)

2015

HARP

RefiPlus

(Excl.

HARP)

2016

HARP

RefiPlus

(Excl.

HARP)

UnpaidPrincipalBalance(UPB)($B)

WeightedAverageOriginationNoteRate 4.85%

$44.7

5.05%

$27.9

4.68%

$80.5

5.00%

$59.0

4.44%

$81.2

4.78%

$55.6

3.89%

$73.8

4.14%

$129.9

3.80%

$64.4

4.04%

$99.5

4.39%

$23.5

4.62%

$21.5

4.08%

$19.2

4.23%

$11.2

3.96%

$11.1

4.10%

$5.9

CreditCharacteristicsofSingle-FamilyBusinessAcquisitionsUndertheRefiPlusInitiative

OurRefiPlusinitiative,whichstartedinApril2009,includestheHomeAffordableRefinanceProgram(“HARP”).OurRefiPlusinitiativeprovidesexpandedrefinanceopportunitiesforeligibleFannieMae

borrowers,andmayinvolvetherefinanceofexistingFannieMaeloanswithhighloan-to-valueratios,includingloanswithloan-to-valueratiosinexcessof100%.

FICOcreditscoreisasofloanorigination,asreportedbythesellerofthemortgageloan.

©2016FannieMae.TrademarksofFannieMae. 9

<=80%

80.01%to105%

105.01%to125%

>125%

WeightedAverageOriginationLTVRatio 63.3%

0.0%

0.0%

0.0%

100.0%

90.7%

0.0%

0.9%

99.1%

0.0%

62.3%

0.0%

0.0%

0.0%

100.0%

92.2%

0.0%

5.6%

94.4%

0.0%

60.2%

0.0%

0.0%

0.0%

100.0%

94.3%

0.0%

11.9%

88.1%

0.0%

61.1%

0.0%

0.0%

0.0%

100.0%

111.0%

20.7%

22.1%

57.2%

0.0%

60.2%

0.0%

0.0%

0.0%

100.0%

109.8%

20.1%

21.5%

58.4%

0.0%

61.3%

0.0%

0.0%

0.0%

100.0%

101.5%

9.9%

16.9%

73.3%

0.0%

60.4%

0.0%

0.0%

0.0%

100.0%

98.4%

7.0%

15.0%

78.0%

0.0%

60.2%

0.0%

0.0%

0.0%

100.0%

97.2%

5.6%

13.7%

80.7%

0.0%

OriginationLTVRatio

<620

620to<660

660to<740

>=740

WeightedAverageFICOCreditScore 762

74.5%

23.0%

1.7%

0.8%

749

64.4%

31.9%

2.5%

1.2%

760

72.3%

23.9%

2.4%

1.4%

746

61.2%

33.1%

3.6%

2.0%

758

70.0%

25.6%

2.8%

1.7%

746

61.5%

32.6%

3.8%

2.1%

753

66.9%

26.0%

4.2%

2.9%

738

56.6%

33.8%

6.0%

3.7%

737

55.8%

31.9%

6.9%

5.3%

722

45.1%

38.7%

9.5%

6.7%

717

43.0%

36.5%

11.2%

9.3%

704

33.9%

41.0%

14.5%

10.6%

722

46.3%

34.4%

10.5%

8.8%

706

34.8%

41.1%

14.6%

9.5%

715

41.1%

37.6%

11.8%

9.6%

702

30.7%

44.2%

15.6%

9.5%

FICOCreditScores

(1)

(2)

*Year-to-datethroughSeptember30,2016.

AcquisitionYear

(1)

(2)

*

*

Acquisitions
OverallBook

OriginationYear

2016 2015 2014 2013 2012 2011 2010 2009 2008

2007and

Earlier

UnpaidPrincipalBalance(UPB)($B)

ShareofSingle-FamilyConventionalGuarantyBook

AverageUnpaidPrincipalBalance

SeriousDelinquencyRate

WeightedAverageOriginationLTVRatio

OriginationLTVRatio>90%

WeightedAverageMark-to-MarketLTVRatio

Mark-to-MarketLTVRatio>100%and<=125%

Mark-to-MarketLTVRatio>125%

WeightedAverageFICOCreditScore

FICO<620

InterestOnly

NegativeAmortizing

Fixed-rate

PrimaryResidence

Condo/Co-op

CreditEnhanced

CumulativeDefaultRate n/a

18.5%

9.3%

88.2%

93.8%

0.1%

1.8%

2.1%

745

0.5%

1.6%

59.4%

16.5%

75.0%

1.24%

$162,015

100.0%

$2,772.8

n/a

16.1%

9.2%

89.4%

69.9%

1.0%

12.2%

9.4%

698

2.3%

6.8%

62.0%

14.3%

75.1%

4.44%

$97,506

12.0%

$332.0

5.0%

23.6%

10.5%

88.1%

72.1%

0.0%

8.6%

6.5%

712

0.9%

4.1%

64.6%

12.6%

74.8%

5.06%

$139,146

1.6%

$43.4

0.8%

4.5%

8.7%

90.6%

97.3%

0.0%

1.1%

0.9%

752

0.0%

0.2%

50.8%

6.4%

69.5%

0.91%

$140,793

3.9%

$108.0

0.6%

5.3%

8.1%

89.1%

96.4%

0.0%

0.9%

0.8%

756

0.0%

0.2%

48.9%

10.2%

71.0%

0.55%

$144,006

5.6%

$155.3

0.4%

7.5%

8.4%

87.0%

95.8%

0.0%

0.5%

0.8%

757

0.0%

0.1%

47.4%

12.3%

71.2%

0.42%

$145,247

6.8%

$188.3

0.3%

12.2%

8.8%

88.6%

97.9%

0.0%

0.3%

1.1%

759

0.3%

1.4%

51.6%

19.0%

76.4%

0.30%

$176,577

18.2%

$504.3

0.2%

17.0%

10.1%

86.0%

97.8%

0.0%

0.2%

1.8%

750

0.5%

1.7%

56.9%

20.5%

76.7%

0.38%

$174,016

15.8%

$439.2

0.1%

27.0%

9.8%

86.1%

96.0%

0.0%

0.0%

1.4%

742

0.2%

0.7%

64.4%

19.8%

77.0%

0.38%

$179,332

9.1%

$253.3

0.0%

30.5%

9.8%

88.1%

97.7%

0.0%

0.0%

0.6%

747

0.1%

0.3%

67.3%

16.5%

75.1%

0.13%

$207,791

14.5%

$401.1

0.0%

27.4%

9.6%

90.4%

98.6%

0.0%

0.0%

0.4%

749

0.1%

0.3%

72.1%

16.1%

74.3%

0.01%

$226,949

12.5%

$347.8

Excludesnon-FannieMaesecuritiesheldinportfolioandthoseAlt-AandsubprimewrapsforwhichFannieMaedoesnothaveloan-levelinformation.FannieMaehadaccesstodetailedloan-levelinformation

forapproximately99%ofitssingle-familyconventionalguarantybookofbusinessasofSeptember30,2016.

FICOcreditscoreisasofloanorigination,asreportedbythesellerofthemortgageloan.Loansacquiredafter2009withFICOcreditscoresatoriginationbelow620primarilyconsistoftherefinanceofexisting

loansunderourRefiPlusinitiative,whichincludesHARP.

Unpaidprincipalbalanceofallloanswithcreditenhancementasapercentageofunpaidprincipalbalanceofsingle-familyconventionalguarantybookofbusinessforwhichFannieMaehasaccesstoloan-level

information.

Defaultsincludeloanforeclosures,shortsales,salestothirdpartiesatthetimeofforeclosureanddeeds-in-lieuofforeclosure.CumulativeDefaultRateisthetotalnumberofsingle-familyconventionalloansin

theguarantybookofbusinessoriginatedintheidentifiedyearthathavedefaulted,dividedbythetotalnumberofsingle-familyconventionalloansintheguarantybookofbusinessoriginatedintheidentified

year.For2007andearliercumulativedefaultrates,refertoslide18.

©2016FannieMae.TrademarksofFannieMae. 10

(1)

(2)

(3)

(4)

.

CreditCharacteristicsofSingle-FamilyConventionalGuarantyBookofBusinessbyOriginationYear

(1)

(1)

(2)

(2)

(3)

(4)

AsofSeptember30,2016
CategoriesNotMutuallyExclusive

InterestOnly

Loans

Loanswith

FICO<620

LoanswithFICO≥

620and<660

Loanswith

OriginationLTV

Ratio>90%

LoanswithFICO

<620 and

OriginationLTV

Ratio>90%

Alt-ALoans

RefiPlus

IncludingHARP

UnpaidPrincipalBalance(UPB)($B)

ShareofSingle-FamilyConventionalGuarantyBook

AverageUnpaidPrincipalBalance

SeriousDelinquencyRate

AcquisitionYears2005-2008

WeightedAverageOriginationLTVRatio

OriginationLTVRatio>90%

WeightedAverageMark-to-MarketLTVRatio

Mark-to-MarketLTVRatio>100%and<=125%

Mark-to-MarketLTVRatio>125%

WeightedAverageFICOCreditScore

FICO<620

Fixed-rate

PrimaryResidence

Condo/Co-op

CreditEnhanced 12.0%

9.4%

84.3%

99.0%

5.4%

733

1.1%

4.3%

62.5%

39.2%

86.5%

0.0%

0.74%

$147,961

16.1%

$446.4

9.9%

9.6%

77.0%

66.1%

3.0%

711

3.1%

9.5%

69.7%

16.5%

78.8%

58.2%

5.27%

$145,083

3.3%

$90.8

52.5%

5.9%

94.0%

89.3%

100.0%

583

6.8%

16.7%

87.9%

100.0%

108.5%

29.6%

8.14%

$131,813

0.6%

$17.8

65.8%

9.7%

93.0%

96.4%

3.9%

730

1.9%

6.1%

82.0%

100.0%

102.9%

8.2%

1.97%

$171,960

16.5%

$457.4

21.3%

6.1%

93.2%

88.2%

0.0%

642

1.6%

4.9%

66.4%

22.8%

79.0%

26.8%

4.15%

$135,273

5.4%

$150.0

21.9%

4.7%

94.3%

84.5%

100.0%

583

2.8%

7.6%

68.5%

30.4%

81.9%

39.7%

6.95%

$116,606

2.1%

$58.4

13.7%

14.5%

85.8%

24.0%

1.6%

722

4.1%

12.9%

76.5%

8.3%

74.3%

82.0%

6.72%

$226,550

1.8%

$50.1

Loanswithmultipleproductfeaturesareincludedinallapplicablecategories.Thesubtotaliscalculatedbycountingaloanonlyonceevenifitisincludedinmultiplecategories.

FICOcreditscoreisasofloanorigination,asreportedbythesellerofthemortgageloan.

ForadescriptionofourAlt-Aloanclassificationcriteria,refertoFannieMae’s2016Q3Form10-Q.

OurRefiPlusinitiative,whichstartedinApril2009,includestheHomeAffordableRefinanceProgram(“HARP”).OurRefiPlusinitiativeprovidesexpandedrefinanceopportunitiesforeligibleFannieMae

borrowers,andmayinvolvetherefinanceofexistingFannieMaeloanswithhighloan-to-valueratios,includingloanswithloan-to-valueratiosinexcessof100%.

Excludesnon-FannieMaesecuritiesheldinportfolioandthoseAlt-AandsubprimewrapsforwhichFannieMaedoesnothaveloan-levelinformation.FannieMaehadaccesstodetailedloan-levelinformation

forapproximately99%ofitssingle-familyconventionalguarantybookofbusinessasofSeptember30,2016.

Unpaidprincipalbalanceofallloanswithcreditenhancementasapercentageofunpaidprincipalbalanceofsingle-familyconventionalguarantybookofbusinessforwhichFannieMaehadaccesstoloan-level

information.

©2016FannieMae.TrademarksofFannieMae. 11

Subtotalof

CertainProduct

Features

35.0%

8.7%

90.0%

90.9%

6.3%

718

1.3%

4.2%

68.9%

49.2%

85.9%

15.7%

2.32%

$150,983

33.5%

$929.6

CreditCharacteristicsofSingle-FamilyConventionalGuarantyBookofBusinessbyCertainProductFeatures

(1)

(2)

(3)

(4)

(5)

(6)

.

(1)

(2)

(3)

(2)

(2)

(4)

(5)

(5)

(6)

AsofSeptember30,2016

(2)

(2)

(1)
Midwest

Northeast

Southeast

Southwest

West 4.2%

5.7%

20.0%

51.7%

18.4%

945

647

964

1,427

671

4,381

4,241

11,840

11,679

9,832

1,487

1,867

5,762

3,597

3,695

1,154

1,622

3,898

2,841

2,887

0.63%

0.79%

1.44%

2.33%

1.11%

10.9%

12.0%

27.6%

32.4%

17.1%

1.3%

0.9%

3.3%

2.5%

2.1%

52.9%

60.2%

63.5%

60.0%

63.9%

28.0%

16.9%

22.1%

18.3%

14.8%

$775.1

$467.5

$611.5

$508.1

$410.7

Regions

Basedontheunpaidprincipalbalance(UPB)ofthesingle-familyconventionalguarantybookofbusinessasofSeptember30,2016.Excludesnon-FannieMaesecuritiesheldinportfolioandthoseAlt-Aand

subprimewrapsforwhichFannieMaedoesnothaveloan-levelinformation.FannieMaehadaccesstodetailedloan-levelinformationforapproximately99%ofitssingle-familyconventionalguarantybookof

businessasofSeptember30,2016.

“Seriouslydelinquentloans”referstosingle-familyconventionalloansthatare90daysormorepastdueorintheforeclosureprocess.“Seriouslydelinquentloanshare”referstothepercentageofoursinglefamilyseriouslydelinquentloanpopulationintheapplicablestateorregion.“Seriousdelinquencyrate”referstothenumberofsingle-familyconventionalloansthatwereseriouslydelinquentintheapplicable

stateorregion,dividedbythenumberofloansinoursingle-familyconventionalguarantybookofbusinessinthatstateorregion.

Measuredfromtheborrowers’lastpaidinstallmentontheirmortgagestowhentherelatedpropertieswereaddedtoourREOinventoryforforeclosurescompletedduringthefirstninemonthsof2016.Home

EquityConversionMortgages(HECMs)insuredbyHUDareexcludedfromthiscalculation.

Expressedasapercentageofcreditlossesforthesingle-familyguarantybookofbusiness.Creditlossesconsistof(a)charge-offs,netofrecoveriesand(b)foreclosedpropertyexpense(income),adjustedto

excludetheimpactoffairvaluelossesresultingfromcredit-impairedloansacquiredfromMBStrusts.Forinformationontotalcreditlosses,refertoFannieMae’s2016Q3Form10-Q.

SelectstatesrepresentthetoptenstatesinUPBofthesingle-familyconventionalguarantybookofbusinessasofSeptember30,2016.

Forinformationonwhichstatesareincludedineachregion,refertothesingle-familymortgagecreditriskmanagementdiscussioninFannieMae’s2016Q3Form10-Q.

©2016FannieMae.TrademarksofFannieMae. 12

CreditCharacteristicsofSingle-FamilyConventionalGuarantyBookofBusinessandSingle-FamilyRealEstate

Owned(REO)inSelectStates

SFConventionalGuarantyBookofBusiness

asofSeptember30,2016

SeriouslyDelinquentLoans

asofSeptember30,2016

RealEstateOwned(REO) CreditLoss

(1)

(2)

(3)

(4)

(5)

(6)

AllStates $2,772.8 100.0% 59.4% 2.0% 100.0% 1.24% 12,402 16,408 41,973 965 100.0%

UnpaidPrincipal

Balance(UPB)

($B)

Shareof

Single-Family

Conventional

GuarantyBook

Weighted

Average

Mark-to-Market

LTVRatio

Mark-to-Market

LTV>100%

Seriously

DelinquentLoan

Share

Serious

Delinquency

Rate

Q32016

Acquisitions

(#ofproperties)

Q32016

Dispositions

(#ofproperties)

REOEnding

Inventory

asof9/30/16

AverageDaysto

Foreclosure

%ofYTD2016

CreditLosses

California

Texas

Florida

NewYork

Illinois

NewJersey

Washington

Virginia

Pennsylvania

Massachusetts 2.3%

4.9%

1.7%

0.8%

17.8%

8.4%

19.8%

6.8%

0.5%

1.4%

1,285

932

556

1,040

1,770

880

1,769

1,403

733

655

1,198

1,817

966

831

3,879

3,219

2,466

4,699

878

1,691

331

710

411

219

1,081

1,172

686

2,704

347

669

207

613

341

171

771

717

563

1,652

332

593

1.42%

1.68%

0.80%

0.74%

3.47%

1.47%

2.77%

2.05%

0.68%

0.49%

2.8%

4.8%

1.9%

1.8%

8.9%

5.2%

10.2%

10.6%

3.8%

5.5%

0.6%

1.6%

1.7%

0.5%

5.0%

5.0%

2.2%

7.1%

0.0%

1.1%

56.2%

63.2%

62.4%

56.0%

64.2%

66.1%

54.9%

64.6%

58.3%

50.8%

2.9%

3.0%

3.5%

3.6%

3.8%

3.9%

5.3%

5.6%

6.0%

19.6%

$81.4

$83.4

$96.4

$98.7

$105.7

$108.2

$147.0

$156.0

$166.6

$542.1

(1) (2)

(3) (4)

(6)

SelectStates

(5) (2) (2)

Total
Basedonstateswiththelargestvolumeofseriouslydelinquentloansinoursingle-familyconventionalguarantybookofbusinessasofSeptember30,2016.

“Seriouslydelinquentloanshare”referstothepercentageofoursingle-familyseriouslydelinquentloanpopulationintheapplicablestate.

ShareofREOendinginventorycalculatedasthenumberofpropertiesinthesingle-familyREOendinginventoryforthestatedividedbythetotalnumberofsingle-familypropertiesintheREOendinginventory

forthespecifiedtimeperiod.

Oursingle-familyseriousdelinquencyrateandtheperiodoftimethatloansremainseriouslydelinquentcontinuetobenegativelyimpactedbythelengthoftimerequiredto

completeaforeclosureinsomestates.Longerforeclosuretimelinesresultintheseloansremaininginourbookofbusinessforalongertime,whichhascausedourserious

delinquencyratetodecreasemoreslowlyinthelastfewyearsthanitwouldhaveifthepaceofforeclosureshadbeenfaster.

2014

Q2

2014

Q3

2014

Q4

2015

Q1

2015

Q2

2015

Q3

2015

Q4

2016

Q1

2016

Q2

2016

Q3

0K

50K

100K

150K

200K

250K

300K

350K

400K

SDQ

Volume

0%

5%

10%

15%

20%

211K

357K

17.3%

10.6%

9.7%

10.2%

9.4%

8.9%

5.7%

5.2% 5.2%

5.5%

SeriouslyDelinquentLoanSharebySelectStates

California

Florida

Illinois

NewJersey

NewYork

SDQVolume

2014

Q2

2014

Q3

2014

Q4

2015

Q1

2015

Q2

2015

Q3

2015

Q4

2016

Q1

2016

Q2

2016

Q3

0K

20K

40K

60K

80K

100K

120K

REOEndingInventory

0%

5%

10%

15%

20%

25%

42K

97K

5.9%

9.2%

22.1%

11.2%

4.4%

4.0%

1.6%

2.4%

10.6%

7.7%

REOEndingInventorySharebySelectStates

California

Florida

Illinois

NewJersey

NewYork

REOEndingInventory

(1)

(2)

(3)

.

SeriouslyDelinquentLoanandREOEndingInventorySharebySelectStates

©2016FannieMae.TrademarksofFannieMae. 13

(1)

(2) (3)
Single-FamilyShortSalesandREOSalesPricestoUnpaidPrincipalBalance(UPB)ofMortgageLoans

2014

Q2

2014

Q3

2014

Q4

2015

Q1

2015

Q2

2015

Q3

2015

Q4

2016

Q1

2016

Q2

2016

Q3

60%

70%

80%

90%

69.2% 68.6%

69.8%

72.4% 72.6% 73.1%

75.0% 73.9%

72.5%

69.3%

75.7% 75.2%

76.3%

79.3% 79.9%

81.9% 80.9%

79.3% 79.7%

75.9%

REO DirectSaleDispositions:SalesPricestoUPB

NetSalesPricestoUPBTrendsforTop10States

REOGrossSales/UPB REONetSales/UPB

2014

Q2

2014

Q3

2014

Q4

2015

Q1

2015

Q2

2015

Q3

2015

Q4

2016

Q1

2016

Q2

2016

Q3

60%

70%

80%

90%

71.7% 72.2% 72.6%

73.8% 73.5% 73.3%

74.6% 73.6% 74.1%

72.2%

79.7% 80.4% 80.7% 82.0% 82.0% 81.7%

83.2% 82.4%

80.4%

82.7%

ShortSales:SalesPricestoUPB

Q32015 Q42015 Q12016 Q22016 Q32016

Florida

Illinois

NewJersey

Ohio

Pennsylvania

Maryland

Michigan

NewYork

California

Georgia 79.0%

88.1%

68.2%

62.7%

69.3%

65.0%

59.2%

59.9%

64.3%

80.1%

81.3%

86.6%

64.5%

65.7%

73.8%

66.6%

62.4%

61.0%

63.2%

79.5%

79.4%

82.6%

61.4%

66.0%

71.4%

61.0%

62.6%

59.6%

63.9%

78.3%

78.0%

84.3%

67.8%

66.8%

69.5%

62.8%

62.9%

58.5%

60.9%

77.5%

77.5%

83.1%

62.9%

65.7%

67.3%

61.3%

63.4%

58.8%

63.9%

74.8%

Q32015 Q42015 Q12016 Q22016 Q32016

Florida

Illinois

NewJersey

California

NewYork

Maryland

Nevada

Arizona

Virginia

Pennsylvania 75.3%

78.6%

79.0%

74.3%

70.8%

72.9%

80.8%

65.8%

70.9%

73.1%

73.6%

80.3%

79.1%

74.4%

70.8%

71.6%

81.2%

64.9%

65.8%

71.8%

75.1%

77.5%

74.8%

71.2%

71.2%

72.1%

79.4%

66.0%

66.1%

73.9%

72.1%

77.2%

78.8%

69.5%

69.1%

74.1%

81.3%

66.6%

66.3%

72.3%

74.5%

76.7%

77.5%

70.5%

70.6%

73.1%

80.0%

66.9%

66.8%

72.0%

ShortSalesGrossSales/UPB ShortSalesNetSales/UPB

IncludesREOpropertiesthathavebeensoldtoathirdparty(excludingpropertiesthathavebeenrepurchasedbytheseller/servicer,acquiredbyamortgageinsurancecompany,redeemedbyaborrower,or

soldthroughtheFHFARentalPilot).

SalesPricestoUPBarecalculatedasthesumofsalesproceedsreceiveddividedbytheaggregateunpaidprincipalbalance(UPB)oftherelatedloans.Grosssalespricerepresentsthecontractsaleprice.Net

salespricerepresentsthecontractsalepricelesscharges/creditspaidbyorduetothesellerorotherpartiesatclosing.

Thestatesshownhadthegreatestvolumeofpropertiessoldinthefirstninemonthsof2016ineachrespectivecategory.

©2016FannieMae.TrademarksofFannieMae. 14

(1)

(2)

(3)

(1) (2) (2)

(2)(3)

REONetSales

PricestoUPB

ShortSales

NetSales

PricestoUPB
ForeclosureAlternatives

Consistsof(a)modifications,whichdonotincludetrialmodifications,loanstocertainborrowerswhohavereceivedbankruptcyreliefthatareaccountedforastroubleddebtrestructurings,orrepaymentplans

orforbearancesthathavebeeninitiatedbutnotcompletedand(b)repaymentplansandforbearancescompleted.

Consistsof(a)shortsales,inwhichtheborrower,workingwiththeservicerandFannieMae,sellsthehomepriortoforeclosureforlessthantheamountowedtopayofftheloan,accruedinterestandother

expensesfromthesaleproceedsand(b)deeds-in-lieuofforeclosure,whichinvolvetheborrower’svoluntarilysigningovertitletotheproperty.

2014

Q2

2014

Q3

2014

Q4

2015

Q1

2015

Q2

2015

Q3

2015

Q4

2016

Q1

2016

Q2

2016

Q3

0K

5K

10K

15K

20K

25K

30K

35K

#ofLoans

3K

3K

2K

2K

2K 2K

7K

2K 2K 2K 1K

5K 4K 4K 4K 4K 3K 3K 3K 3K

10K

8K

7K

6K

6K 6K

5K 5K 4K 4K

©2016FannieMae.TrademarksofFannieMae. 15

ShortSales

Deeds-in-Lieu

2014

Q2

2014

Q3

2014

Q4

2015

Q1

2015

Q2

2015

Q3

2015

Q4

2016

Q1

2016

Q2

2016

Q3

0K

5K

10K

15K

20K

25K

30K

35K

#ofLoans

21K 21K 21K

19K

22K

26K 27K 26K

29K

32K

2K

2K 1K

1K

1K

2K

2K

2K

2K

2K

34K

31K

28K

29K

28K

24K

20K

22K

23K 22K

Modifications

RepaymentPlansandForbearancesCompleted

(1)

(2)

.

HomeRetentionSolutions

Single-FamilyLoanWorkouts

(1) (2)
Modificationsreflectpermanentmodificationswhichdoesnotincludeloanscurrentlyintrialmodifications.

Definedastotalnumberofcompletedmodificationsforthetimeperiodsnoted.

2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2

Modifications 39,159 36,044 32,010 28,861 25,908 26,700 26,214 22,199 19,099 20,899 21,278

Re-performanceRatesofModifiedSingle-FamilyLoans

©2016FannieMae.TrademarksofFannieMae. 16

(1)

(2)

3MonthsPostModification

6MonthsPostModification

9MonthsPostModification

12MonthsPostModification

15MonthsPostModification

18MonthsPostModification

21MonthsPostModification

24MonthsPostModification n/a

n/a

n/a

n/a

n/a

n/a

n/a

77%

n/a

n/a

n/a

n/a

n/a

n/a

70%

79%

n/a

n/a

n/a

n/a

n/a

67%

72%

78%

n/a

n/a

n/a

n/a

64%

67%

69%

76%

n/a

n/a

n/a

64%

67%

67%

69%

77%

n/a

n/a

65%

66%

67%

68%

72%

79%

n/a

66%

67%

66%

67%

70%

74%

80%

68%

68%

67%

67%

69%

71%

74%

79%

69%

68%

66%

67%

70%

71%

72%

79%

70%

69%

70%

71%

72%

72%

76%

83%

70%

71%

71%

72%

73%

74%

79%

84%

%CurrentorPaidOff

(1)

(2)
Basedontheunpaidprincipalbalance(UPB)ofthesingle-familyconventionalguarantybookofbusinessasofDecember31forthetimeperiodsnoted,withtheexceptionof2016whichisasofSeptember30.

Basedonthesingle-familycreditlossesfortheyearendedDecember31forthetimeperiodsnoted,withtheexceptionof2016whichisthroughSeptember30.Creditlossesconsistof(a)charge-offs,netofrecoveriesand(b)

foreclosedpropertyexpense(income),adjustedtoexcludetheimpactoffairvaluelossesresultingfromcredit-impairedloansacquiredfromMBStrusts.Doesnotreflecttheimpactofrecoveriesthathavenotbeen

allocatedtospecificloans.Negativevaluesaretheresultofrecoveriesonpreviouslyrecognizedcreditlosses.Beginningin2015,includestheimpactofcreditlossesassociatedwithourredesignationfromheldforinvestment

toheldforsaleofcertainnonperformingsingle-familyloansexpectedtobesoldintheforeseeablefuture.Also,2015creditlossesincludetheimpactofourapproachtoadoptingthecharge-offprovisionsoftheFederalHousing

FinanceAgency’sAdvisoryBulletinAB2012-02,“FrameworkforAdverselyClassifyingLoans,OtherRealEstateOwned,andOtherAssetsandListingAssetsforSpecialMention”onJanuary1,2015.

Loanswithmultipleproductfeaturesareincludedinallapplicablecategories.Categoriesarenotmutuallyexclusive.

FICOcreditscoreisasofloanorigination,asreportedbythesellerofthemortgageloan.

NewlyoriginatedAlt-Aloansacquiredafter2008consistoftherefinanceofexistingloansunderourRefiPlusInitiative.ForadescriptionofourAlt-Aloanclassificationcriteria,refertoFannieMae’s2016Q3Form10-Q.

Foradescriptionofoursubprimeloanclassificationcriteria,refertoFannieMae’s2015Form10-K.

Selectstatesrepresentthetoptenstateswiththehighestpercentageofsingle-familycreditlossesfortheninemonthsendedSeptember30,2016.

©2016FannieMae.TrademarksofFannieMae. 17

CreditLossConcentrationofSingle-FamilyConventionalGuarantyBookofBusiness

(1)

(2)

(3)

(4)

(5)

(6)

(7)

NewYork

NewJersey

Illinois

Florida

Pennsylvania

Ohio

Maryland

Connecticut

Massachusetts

Michigan

AllOtherStates 64.6%

2.5%

3.1%

1.4%

2.9%

2.3%

3.0%

6.3%

4.3%

4.0%

5.6%

65.1%

2.5%

3.1%

1.4%

2.8%

2.2%

3.1%

6.0%

4.2%

4.0%

5.6%

65.8%

2.4%

3.1%

1.4%

2.8%

2.1%

3.1%

5.7%

4.1%

4.0%

5.6%

66.2%

2.4%

3.0%

1.3%

2.7%

2.1%

3.0%

5.6%

4.1%

4.0%

5.5%

66.7%

2.4%

3.0%

1.3%

2.7%

2.0%

3.0%

5.6%

4.0%

3.9%

5.4%

67.0%

2.4%

2.9%

1.3%

2.7%

2.0%

3.0%

5.6%

3.9%

3.8%

5.3%

73.2%

5.8%

1.2%

0.3%

0.6%

2.1%

0.8%

11.0%

3.5%

0.8%

0.6%

53.2%

4.5%

1.0%

0.9%

1.8%

3.3%

1.6%

21.4%

9.6%

2.0%

0.9%

37.1%

3.2%

0.8%

1.4%

3.1%

4.1%

3.0%

28.9%

12.9%

3.7%

1.9%

24.7%

1.7%

1.0%

2.8%

5.9%

4.2%

4.2%

32.6%

10.9%

7.2%

4.8%

18.4%

1.5%

1.9%

2.3%

3.8%

2.2%

3.4%

20.8%

7.8%

21.6%

16.4%

27.0%

2.2%

2.3%

2.8%

3.9%

4.1%

4.9%

6.8%

8.4%

17.8%

19.8%

SelectState

%ofSingle-FamilyConventionalGuarantyBookofBusiness

2016 2015 2014 2013 2012 2011

%ofSingle-FamilyCreditLosses

2016 2015 2014 2013 2012 2011

NegativeAmortizing

InterestOnly

FICO<620

FICO620to<660

OriginationLTVRatio>90%

FICO<620andOriginationLTVRatio>90%

Alt-A

Subprime

RefiPlusincludingHARP 11.2%

0.2%

6.6%

0.7%

10.0%

6.7%

3.2%

4.7%

0.3%

16.5%

0.2%

5.6%

0.7%

12.8%

6.0%

2.9%

3.7%

0.3%

19.5%

0.1%

4.7%

0.7%

15.1%

5.5%

2.6%

2.9%

0.2%

19.1%

0.1%

4.2%

0.7%

15.9%

5.5%

2.5%

2.5%

0.2%

17.6%

0.1%

3.7%

0.7%

16.3%

5.5%

2.3%

2.1%

0.1%

16.1%

0.1%

3.3%

0.6%

16.5%

5.4%

2.1%

1.8%

0.1%

1.4%

0.6%

27.3%

2.2%

14.0%

14.7%

7.9%

25.8%

1.2%

3.5%

1.1%

23.7%

2.3%

16.8%

14.2%

7.8%

21.8%

0.5%

7.4%

-0.2%

26.0%

2.0%

20.8%

15.7%

7.0%

18.7%

0.8%

10.4%

1.3%

17.4%

2.9%

15.3%

17.6%

12.1%

10.2%

0.9%

7.8%

1.6%

29.3%

2.7%

16.4%

18.3%

11.1%

18.0%

1.2%

14.6%

1.4%

25.6%

3.5%

20.9%

21.5%

14.3%

12.2%

0.3%

2009-2016

2005-2008

2004&Prior 18.0%

30.4%

51.6%

13.1%

21.7%

65.3%

9.1%

14.7%

76.2%

7.3%

12.2%

80.5%

5.8%

10.1%

84.1%

4.9%

8.7%

86.5%

14.8%

82.9%

2.4%

13.1%

81.8%

5.1%

12.4%

77.6%

10.0%

12.0%

74.7%

13.3%

12.1%

77.6%

10.3%

16.0%

64.5%

19.5%

Vintage

(1) (2)

(3)

(4)

(4)

(4)

(5)

(6)

(7)

CertainProductFeatures
©2016FannieMae.TrademarksofFannieMae. 18

Note:Defaultsincludeloanforeclosures,shortsales,salestothirdpartiesatthetimeofforeclosureanddeeds-in-lieuofforeclosure.CumulativeDefaultRateisthetotalnumberofsingle-familyconventionalloansin

theguarantybookofbusinessoriginatedintheidentifiedyearthathavedefaulted,dividedbythetotalnumberofsingle-familyconventionalloansintheguarantybookofbusinessoriginatedintheidentifiedyear.

DataasofSeptember30,2016isnotnecessarilyindicativeoftheultimateperformanceoftheloansandperformanceislikelytochange,perhapsmaterially,infutureperiods.

Yr1-Q1

Yr1-Q2

Yr1-Q3

Yr1-Q4

Yr2-Q1

Yr2-Q2

Yr2-Q3

Yr2-Q4

Yr3-Q1

Yr3-Q2

Yr3-Q3

Yr3-Q4

Yr4-Q1

Yr4-Q2

Yr4-Q3

Yr4-Q4

Yr5-Q1

Yr5-Q2

Yr5-Q3

Yr5-Q4

Yr6-Q1

Yr6-Q2

Yr6-Q3

Yr6-Q4

Yr7-Q1

Yr7-Q2

Yr7-Q3

Yr7-Q4

Yr8-Q1

Yr8-Q2

Yr8-Q3

Yr8-Q4

Yr9-Q1

Yr9-Q2

Yr9-Q3

Yr9-Q4

Yr10-Q1

Yr10-Q2

Yr10-Q3

Yr10-Q4

Yr11-Q1

Yr11-Q2

Yr11-Q3

Yr11-Q4

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

CumulativeDefaultRate

2007

2006

2005

2008

2004

2003

2002

2012 2011 2010 2009

2014 2013

2016 2015

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

CumulativeDefaultRatesofSingle-FamilyConventionalGuarantyBookofBusinessbyOriginationYear

TimeSinceBeginningofOriginationYear
LoanCount UPB($B)

%ofMultifamily

GuarantyBookof

Business

%DUS®Loans

%Seriously

Delinquent

YTD2016

MultifamilyCredit

Losses($M)

2015Multifamily

CreditLosses($M)

2014Multifamily

CreditLosses($M)

TotalMultifamilyGuarantyBookofBusiness 29,206 $234.8 100% 96% 0.07% $2 ($56) ($46)

MultifamilyCreditProfilebyLoanAttributes

Loansmaturingin2016

Loansmaturingin2017

Loansmaturingin2018

Loansmaturingin2019

Loansmaturingin2020

Othermaturities ($34)

$2

$1

($4)

($19)

$8

($32)

($1)

($2)

$0

($15)

($6)

$1

$4

$0

$2

($5)

$0

0.03%

0.22%

0.30%

0.02%

0.10%

5.44%

97%

97%

98%

96%

74%

82%

77%

7%

7%

5%

4%

0%

$180.6

$15.8

$17.0

$12.1

$9.0

$0.3

20,211

2,474

2,184

2,145

2,060

132

MaturityDates

Lessthanorequalto70%

Greaterthan70%andlessthanorequalto80%

Greaterthan80% $3

($38)

($11)

$2

($34)

($24)

($1)

$4

($1)

0.11%

0.08%

0.06%

93%

99%

94%

2%

44%

54%

$5.1

$103.6

$126.1

1,445

9,626

18,135

OriginationLTVRatio

Lessthanorequalto$750K

Greaterthan$750Kandlessthanorequalto$3M

Greaterthan$3Mandlessthanorequalto$5M

Greaterthan$5Mandlessthanorequalto$25M

Greaterthan$25M ($9)

($53)

($9)

$19

$5

($15)

($60)

$9

$9

$1

($1)

($6)

$3

$5

$1

0.04%

0.05%

0.24%

0.26%

0.23%

98%

98%

92%

81%

23%

47%

41%

6%

6%

1%

$109.5

$95.8

$14.5

$13.6

$1.4

2,127

8,938

3,985

8,785

5,371

LoanSizeDistribution

(1)

(2)

(3)

(4)

(5)

(6)

Representsthepercentageofloansforagivencategory(row)comprisedofDUSloans,measuredbyunpaidprincipalbalance.

Multifamilyloansareclassifiedasseriouslydelinquentwhenpaymentis60daysormorepastdue.

Dollaramountofmultifamilycredit-relatedlosses/(gains)fortheapplicableperiodandcategory.Totalcreditlossesforeachperiodmaynottietosumofallcategoriesduetorounding.The2014and2015multifamilycreditlossesforLenderRiskSharingloansandloanswithNoRecoursetotheLenderhavebeencorrectedfromtheamountspreviouslyreported.

Weightedaverageoriginationloan-to-valueratiois67%asofSeptember30,2016.

UndertheDelegatedUnderwritingandServicing,orDUS,program,FannieMaeacquiresindividual,newlyoriginatedmortgagesfromspeciallyapprovedDUSlendersusingDUSunderwritingstandardsand/orDUSloandocuments.BecauseDUS

lendersgenerallysharetheriskoflosswithFannieMae,theyareabletooriginate,underwrite,closeandservicemostloanswithoutourpre-review.

Multifamilyloanswithanoriginalunpaidbalanceofupto$3millionnationwideorupto$5millioninhighcostmarkets.

DUS-SmallBalanceLoans

DUS-NonSmallBalanceLoans

Total ($57)

($67)

$11

($54)

($57)

$3

$3

$1

$2

0.06%

0.05%

0.22%

100%

100%

100%

96%

90%

6%

$226.3

$212.3

$14.0

21,712

14,211

7,501

DelegatedUnderwritingandServicing(DUS)Loans

Non-DUS-SmallBalanceLoans

Non-DUS-NonSmallBalanceLoans

Total $11

$0

$11

($2)

($5)

$2

($1)

($3)

$1

0.24%

0.19%

0.29%

0%

0%

0%

4%

2%

2%

$8.5

$3.9

$4.6

7,494

309

7,185

Non-DelegatedUnderwritingandServicing(Non-DUS)Loans

LenderRisk-Sharing

NoRecoursetotheLender ($20)

($26)

($32)

($24)

($8)

$10

0.08%

0.07%

71%

98%

7%

93%

$15.7

$219.0

2,231

26,975

LenderRisk-Sharing

Fixed

Variable ($49)

$2

($34)

($22)

$0

$2

0.03%

0.08%

97%

96%

20%

80%

$45.9

$188.9

7,151

22,055

InterestRateType

©2016FannieMae.TrademarksofFannieMae. 19

(1)

(3)

(3)

(4)

(5)

(6)

(6)

(2) (3)

AsofSeptember30,2016
UPB($B)

%ofMultifamily

GuarantyBookof

Business

%DUSLoans

%Seriously

Delinquent

YTD2016Multifamily

CreditLosses($M)

2015Multifamily

CreditLosses($M)

2014Multifamily

CreditLosses($M)

TotalMultifamilyGuarantyBookofBusiness $234.8 100% 96% 0.07% $2 ($56) ($46)

MultifamilyCreditProfilebyLoanAttributes(cont.)

California

Texas

NewYork

Florida

Washington $0

($8)

$2

($33)

($2)

$1

($3)

$1

($6)

$0

$0

$0

$0

$0

$0

0.00%

0.00%

0.05%

0.17%

0.03%

98%

99%

83%

99%

95%

4%

7%

10%

12%

21%

$8.8

$16.2

$23.3

$27.1

$49.4

SelectStates

PrivatelyOwnedwithSubsidy $30.8 13% 96% 0.06% $2 ($4) ($4)

TargetedAffordableSegment

DUS:Bank(Direct,OwnedEntity,orSubsidiary)

DUS:Non-BankFinancialInstitution

Non-DUS:Bank(Direct,OwnedEntity,orSubsidiary)

Non-DUS:Non-BankFinancialInstitution

Non-DUS:PublicAgency/NonProfit $0

$6

$2

($25)

($28)

$0

$0

$0

($12)

($45)

$0

($3)

$0

$4

$1

0.00%

0.00%

0.32%

0.09%

0.03%

0%

0%

0%

100%

96%

0%

0%

2%

58%

40%

$0.1

$0.4

$4.1

$136.3

$93.9

DUS&Non-DUSLenders/Servicers

Representsthepercentageofloansforagivencategory(row)comprisedofDUSloans,measuredbyunpaidprincipalbalance.

Multifamilyloansareclassifiedasseriouslydelinquentwhenpaymentis60daysormorepastdue.

Dollaramountofmultifamilycredit-relatedlosses/(gains)fortheapplicableperiodandcategory.Totalcreditlossesforeachperiodwillnottietosumofallcategoriesduetorounding.

TheMultifamilyAffordableBusinessChannelfocusesonfinancingpropertiesthatareunderanagreementthatprovideslong-termaffordability,suchaspropertieswithrentsubsidiesorincomerestrictions.

Seehttps://www.fanniemae.com/multifamily/productsfordefinitions.

©2016FannieMae.TrademarksofFannieMae. 20

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

Priorto2007 ($25)

($17)

($4)

($3)

$2

$0

$0

$0

$0

$0

$0

($24)

($17)

($20)

$4

($1)

$2

$0

$0

$0

$0

$0

($4)

($5)

$4

$0

$3

$0

$2

$0

$0

$0

$0

0.15%

0.26%

0.05%

0.07%

0.17%

0.11%

0.15%

0.06%

0.00%

0.02%

0.00%

95%

67%

92%

97%

96%

97%

97%

98%

99%

99%

99%

7%

4%

4%

5%

5%

7%

11%

10%

11%

18%

17%

$17.0

$9.8

$9.3

$11.1

$12.0

$17.0

$26.2

$23.5

$26.9

$41.5

$40.6

ByAcquisitionYear

Midwest

Northeast

Southeast

Southwest

West ($4)

($21)

($22)

$4

($3)

($31)

($11)

($19)

$4

$1

($1)

($2)

$3

$0

$2

0.03%

0.10%

0.06%

0.05%

0.17%

96%

99%

99%

89%

97%

28%

22%

24%

16%

9%

$66.5

$51.5

$57.4

$38.4

$20.9

Regions

Conventional/Co-op

SeniorsHousing

ManufacturedHousing

StudentHousing ($4)

($2)

($3)

($37)

($7)

$0

$7

($56)

$1

$0

$1

$0

0.00%

0.00%

0.00%

0.08%

100%

100%

98%

96%

3%

4%

5%

89%

$6.1

$8.3

$12.1

$208.3

AssetClass

(1)

(2)

(3)

(4)

(5)

(2) (3) (3)

(4)

(3)

(1) AsofSeptember30,2016

(5)
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

SeriousDelinquencyRate

0.44%

0.55%

0.34%

0.15%

0.09%

1.36%

1.20%

0.24%

0.30%

0.24%

0.71%

0.18%

0.21%

0.56%

0.24%

0.63%

0.50%

0.10%

0.08%

0.08%

0.59%

0.07%

0.07%

0.07% 0.06% 0.06%

0.05%

0.09%

0.92%

0.04%

0.39%

0.05%

MultifamilyTotalSeriousDelinquencyRate DUS SeriousDelinquencyRate Non-DUSSeriousDelinquencyRate

SeriousDelinquency RatesofMultifamilyBookofBusiness

Multifamilyloansareclassifiedasseriouslydelinquentwhenpaymentis60daysormorepastdue.Seriousdelinquencyraterepresentstheyear-endpercentageofunpaidprincipalbalancethatisseriously

delinquentasofDecember31forthetimeperiodsnoted,withtheexceptionof2016whichisasofSeptember30.

UndertheDelegatedUnderwritingandServicing,orDUS,program,FannieMaeacquiresindividual,newlyoriginatedmortgagesfromspeciallyapprovedDUSlendersusingDUSunderwritingstandardsand/or

DUSloandocuments.BecauseDUSlendersgenerallysharetheriskoflosswithFannieMae,theyareabletooriginate,underwrite,closeandservicemostloanswithoutourpre-review.

©2016FannieMae.TrademarksofFannieMae. 21

(1)

(2)

.

(1)

(2)
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

0

20

40

60

UPB($B)

$20 $19

$33

$19

$24 $22

$46

$34

$19

$17

$24

$33

$29 $29

$42 $41

DUS/Non-DUSAcquisitionUnpaidPrincipalBalance($B)

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

0.0%

0.5%

1.0%

1.5%

2.0%

CreditLossRate

0.3%

0.2%

0.3%

0.2%

0.0%

0.1%

0.2%

0.0%

0.1%

0.4%

0.0%

0.3%

0.5%

0.0%

0.3%

0.9%

0.2%

0.8%

1.3%

0.9%

1.1%

0.8%

1.4%

1.0%

0.3%

0.1%

0.2%

0.1%

0.0%

0.1%

0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

DUS/Non-DUSCumulativeCreditLossRatesthroughSeptember30,2016

DUSCreditLossRate Non-DUSCreditLossRate MultifamilyTotalCreditLossRate

CumulativeCreditLossRatesofMultifamilyGuarantyBookofBusinessbyAcquisitionYear

DUS Non-DUS

AcquisitionYear

Cumulativecreditlossrateisthecumulativecreditlosses(gains)throughSeptember30,2016onthemultifamilyloansthatwereacquiredintheapplicableperiod,asapercentageofthetotalacquiredunpaid

principalbalanceofmultifamilyloansintheapplicableperiod.

AcquisitionunpaidprincipalbalancerepresentsthetotalMultifamilyvolumeacquiredthroughpurchaseorsecuritizationtransactionsfortheapplicableperiod.

©2016FannieMae.TrademarksofFannieMae. 22

(1)

(2)

(1)

(2)

*

*

*Year-to-datethroughSeptember30,2016.