Contact: Pete Bakel Resource Center: 1-800-732-6643

202-752-2034

Date: October 29, 2020

Fannie Mae Reports Net Income of $4.2 Billion for Third Quarter 2020

Third Quarter 2020 Results “Fannie Mae has helped 

more than 1.2 million 

homeowners with 

forbearance plans so far in 

2020, while providing record 

levels of critical liquidity to 

the mortgage market 

through one of the most 

severe and sudden 

economic shocks in a 

century. Our performance 

this year demonstrates our 

ability to support the 

mortgage market in a safe 

and sound manner even 

during these uniquely 

challenging times. To 

continue meeting these 

challenges, we believe our 

company and the broader 

housing finance system 

would be best served by a 

responsible end to Fannie 

Mae’s conservatorship, 

consistent with FHFA’s 

goals.”

Hugh R. Frater, 

Chief Executive Officer 

• Fannie Mae reported net income of $4.2 billion for the third quarter of 2020, compared

with net income of $2.5 billion for the second quarter of 2020. The increase in net income

was due to higher amortization income driven by an increase in mortgage prepayment

activity, a decrease in fair value losses, an increase in net investment gains, and a shift

to credit-related income in the third quarter of 2020 from credit-related losses in the prior

quarter.

• Fannie Mae continues to provide economic relief to borrowers impacted by COVID-19

through its forbearance program. As of September 30, 2020, 4.1% of Fannie Mae’s

single-family guaranty book of business based on loan count and 0.5% of the company’s

multifamily guaranty book of business based on unpaid principal balance were in

forbearance, the vast majority of which were related to COVID-19.

• Fannie Mae’s net worth increased from $16.5 billion as of June 30, 2020 to $20.7 billion

as of September 30, 2020. Based on its agreement with the U.S. Department of the

Treasury, the company may retain quarterly earnings until its net worth reaches $25

billion.

• Fannie Mae expects the impact of the COVID-19 pandemic to continue to negatively

affect its financial results, contributing to lower net income in 2020 than in 2019.

Business Highlights

• Fannie Mae is providing substantial liquidity to lenders during the COVID-19 pandemic

and fulfilling Fannie Mae’s mission to stabilize the housing finance market and provide

liquidity, support, and access to affordable mortgage financing in all U.S. markets in all

economic cycles. Fannie Mae provided $982 billion of liquidity in the first nine months of

2020, which represents the company’s highest acquisition volume since the same period

in 2003.

• Fannie Mae provided $933 billion in single-family liquidity to the mortgage market in the

first nine months of 2020, including $506 billion through its whole loan conduit, enabling

the financing of approximately 1,039,000 home purchases and 2,298,000 refinancings.

Fannie Mae has financed approximately one in four single-family mortgage loans

outstanding in the United States.

• Fannie Mae provided $49 billion in multifamily financing in the first nine months of 2020,

which enabled the financing of 542,000 units of multifamily housing. More than 90% of

the multifamily units the company financed in the first nine months of 2020 were

affordable to families earning at or below 120% of the area median income, providing

support for both affordable and workforce housing.

Third Quarter 2020 Results 1
WASHINGTON, DC — Fannie Mae (FNMA/OTCQB) reported net income of $4.2 billion and comprehensive income 

of $4.2 billion for the third quarter of 2020, compared with net income of $2.5 billion and comprehensive income of 

$2.5 billion for the second quarter of 2020. The increase in net income was due to higher amortization income 

driven by an increase in mortgage prepayment activity as a result of the historically low interest rate environment in 

the third quarter of 2020; a decrease in fair value losses due primarily to yields remaining mostly flat during the 

quarter and gains on credit enhancement derivatives due to higher loan default expectations on loans covered by 

certain credit risk transfer transactions; an increase in net investment gains driven by an increase in sales of singlefamily held-for-sale loans; and a shift from credit-related expense to credit-related income in the third quarter of 

2020 due to the impact of actual and forecasted home prices as well as the redesignation of reperforming singlefamily mortgage loans from held-for-investment to held-for-sale, partially offset by an increase in the allowance for 

loan losses the company expects to incur as a result of the COVID-19 pandemic. 

Fannie Mae Response to COVID-19

In March 2020, the COVID-19 outbreak in the United States was declared a national emergency. The COVID-19 

pandemic resulted in stay-at-home orders, school closures, and widespread business shutdowns across the 

country. Although business activity has begun to resume to varying degrees, the speed and nature of the 

resumption of economic activity remains highly uncertain. The COVID-19 pandemic continues to have a significant 

impact on Fannie Mae’s business and financial results. Fannie Mae significantly increased its allowance for loan 

losses in the first nine months of 2020 to reflect the company’s expected loan losses as a result of the pandemic, 

which resulted in substantial credit-related expenses. Fannie Mae also is incurring other costs associated with the 

pandemic, such as paying higher fees to servicers to support providing loss mitigation to borrowers. Fannie Mae 

has increased technology investments in tools that support its forbearance programs. In addition, the company has 

increased its debt balances to fund increased conduit volumes and in anticipation of future loss mitigation activities 

and future loan buyouts from trusts. The company’s capital requirements also have increased as a result of loans 

that have stopped making payments as a result of the forbearance the company has provided. 

Fannie Mae Response

Fannie Mae is taking a number of actions to help borrowers, renters, lenders, and its employees manage the 

negative impact of the COVID-19 pandemic. 

Borrowers and Renters

• Fannie Mae has implemented new policies to enable the company’s single-family and multifamily loan

servicers to better assist borrowers and renters impacted by COVID-19, including to:

◦ provide forbearance to single-family borrowers reporting they are experiencing a financial hardship

due to the COVID-19 pandemic for up to 180 days, and at the borrower’s request, extend the

forbearance period up to a maximum of 12 months total; approximately 703,000 single-family loans

in the company’s book of business were in forbearance as of September 30, 2020;

▪ as of September 30, 2020, Fannie Mae estimates that the company had provided

forbearance on approximately 96% of those single-family loans in its book of business that

were negatively impacted by COVID-19 (that is, were current as of March 1, 2020 and were

60 days or more delinquent as of September 30, 2020).

◦ offer options following forbearance, including a repayment plan, payment deferral, or a loan

modification that aims to reduce a borrower’s monthly payment;

◦ suspend foreclosures and foreclosure-related activities for single-family properties through at least

December 31, 2020, other than for vacant or abandoned properties;

◦ report as current to credit bureaus homeowners who receive a forbearance plan or other form of

relief as a result of the COVID-19 pandemic during the covered period if they were current before

the accommodation and make payments as agreed under the accommodation in accordance with

the Fair Credit Reporting Act, as amended by the CARES Act, and provide that no late fees are

charged for homeowners in a forbearance plan; and

Third Quarter 2020 Results 2
◦ provide forbearance to multifamily borrowers experiencing a financial hardship due to the 

COVID-19 pandemic for up to 6 months on the condition that the borrower suspend all renter 

evictions for nonpayment of rent during the forbearance period, through the 120-day eviction 

moratorium under the CARES Act, which ended on July 25, 2020, or any longer period required by 

federal, state or local law, including the order issued by the Centers for Disease Control and 

Prevention, effective September 4, 2020 through December 31, 2020, which halts residential 

evictions for nonpayment of rent for tenants who qualify for protection under the order. 

• Fannie Mae created the #HeretoHelp educational effort and updated the company’s 

KnowYourOptions.com website to help keep people in their homes, providing information and resources 

on relief options for borrowers and renters impacted by COVID-19. The website includes the Renters 

Resource Finder, an online tool that allows renters to enter their building address to determine whether they 

live in a Fannie Mae-financed property and learn what resources they can access for help. Resources 

include access to Fannie Mae’s Disaster Response Network, which offers free assistance to renters in 

Fannie Mae-financed rental properties, such as HUD-approved housing counselors that can help create a 

personalized action plan, offer financial coaching and budgeting, and provide other support. 

Lenders

• Fannie Mae provided more than $860 billion in liquidity to the single-family and multifamily mortgage 

markets from the beginning of March 2020 through September 2020, including more than $460 billion

through the company’s whole loan conduit, which primarily supports small- to mid-sized lenders, including 

community lenders, fulfilling Fannie Mae’s mission to stabilize the housing finance market and provide 

liquidity, support, and access to affordable mortgage financing in all U.S. markets in all economic cycles.

• Fannie Mae limited the duration of single-family servicers’ obligations to advance principal and interest 

payments on delinquent loans to four months, and allows servicers to automatically receive reimbursement 

for advanced payments of principal and interest on a delinquent loan after four missed payments. 

Multifamily servicers can be reimbursed for advanced payments of principal and interest on a delinquent 

mortgage loan after paying the fourth of four continuous months of advances.

• Fannie Mae continues to build its digital mortgage capabilities, enabling the company to adapt quickly to 

lenders’ needs. In addition, the company is offering measures to help ensure lenders have the clarity and 

flexibility to continue to lend in a prudent and responsible manner during the COVID-19 pandemic. These 

measures include: offering additional methods of obtaining verbal verification of borrower employment; 

using the company’s digital tools to offer flexibilities related to the lender’s process for obtaining inspections 

and appraisals; and allowing remote online notarization options.

Employees

• Fannie Mae has taken steps to help protect the safety and resiliency of its workforce. From mid-March 

through early October 2020, the company required nearly all of its workforce to work remotely. In early 

October, the company began allowing employees, on a voluntary basis, to request approval to return to 

work at some of its office locations and has established mandatory COVID-19 safety protocols for these 

locations. Fannie Mae expects a significant majority of its employees will continue to work remotely for the 

foreseeable future.

• To date, the company’s business resiliency plans and technology systems have effectively supported its 

telework arrangement, allowing Fannie Mae to continue its critical function of supporting mortgage market 

liquidity.

• Fannie Mae offers support services and resources for employees and their families affected by COVID-19, 

including the company’s Employee Assistance Program, which provides a helpline number to support loved 

ones who may not be covered otherwise.

Third Quarter 2020 Results 3
Risks and Uncertainties

Fannie Mae’s current forecasts and expectations relating to the impact of the COVID-19 pandemic are subject to 

many uncertainties and may change, perhaps substantially. It is difficult to assess or predict the impact of this 

unprecedented event on the company’s business, financial results, or financial condition. Factors that will impact the 

extent to which the COVID-19 pandemic affects the company’s business, financial results, and financial condition 

include: the duration, spread, and severity of COVID-19 outbreaks; the actions taken to contain the virus or treat its 

impact, including government actions to mitigate the economic impact of the pandemic and the widespread 

availability and public acceptance of a COVID-19 vaccine; the extent to which consumers, workers, and families feel 

safe resuming pre-pandemic activities; the nature, extent and success of the forbearance, payment deferrals, 

modifications, and other loss mitigation options the company provides to borrowers affected by the pandemic; 

accounting elections and estimates relating to the impact of the COVID-19 pandemic; borrower and renter behavior 

in response to the pandemic and its economic impact; how quickly and to what extent normal economic and 

operating conditions can resume, including whether any future outbreaks or increases in the daily number of new 

COVID-19 cases interrupt economic recovery; and how quickly and to what extent affected borrowers, renters, and 

counterparties can recover from the negative economic impact of the pandemic. See “Risk Factors” in the 

company’s Third Quarter 2020 Form 10-Q for a discussion of the risks to the company’s business, financial results 

and financial condition relating to the COVID-19 pandemic. See “Forward-Looking Statements” in the company’s 

Third Quarter 2020 Form 10-Q for a discussion of factors that could cause actual conditions, events, or results to 

differ materially from those described in the company’s forecasts, expectations, and other forward-looking 

statements in this release.

Summary of Financial Results

(Dollars in millions) 3Q20 2Q20 Variance 3Q19 Variance

Net interest income $ 6,656 $ 5,777 $ 879 $ 5,348 $ 1,308 

Fee and other income 93 90 3 188 (95) 

Net revenues 6,749 5,867 882 5,536 1,213 

Investment gains, net 653 149 504 253 400 

Fair value losses, net (327) (1,018) 691 (713) 386 

Administrative expenses (762) (754) (8) (749) (13) 

Credit-related income (expenses):

Benefit (provision) for credit losses 501 (12) 513 1,857 (1,356) 

Foreclosed property expense (71) (10) (61) (96) 25 

Total credit-related income (expenses) 430 (22) 452 1,761 (1,331) 

Temporary Payroll Tax Cut Continuation Act of 2011 (“TCCA”) fees (679) (660) (19) (613) (66) 

Credit enhancement expense (325) (360) 35 (290) (35) 

Change in expected credit enhancement recoveries (48) 273 (321) — (48) 

Other expenses, net (313) (261) (52) (186) (127) 

Income before federal income taxes 5,378 3,214 2,164 4,999 379 

Provision for federal income taxes (1,149) (669) (480) (1,036) (113) 

Net income $ 4,229 $ 2,545 $ 1,684 $ 3,963 $ 266 

Total comprehensive income $ 4,216 $ 2,532 $ 1,684 $ 3,977 $ 239 

Net revenues, which consist of net interest income and fee and other income, were $6.7 billion for the third quarter

of 2020, compared with $5.9 billion for the second quarter of 2020.

Net interest income was $6.7 billion for the third quarter of 2020, compared with $5.8 billion for the second quarter

of 2020. The increase in net interest income was due to higher mortgage loan prepayment activity as a result of the 

historically low interest rate environment in the third quarter of 2020. The company’s net interest income for the third 

quarter of 2020 was also impacted by the application of its updated accounting policy for nonaccrual loans that 

allowed the company to continue accruing interest income on delinquent loans that were current at March 1, 2020 

and have been negatively impacted by the COVID-19 pandemic. As a result of this update, the company recognized 

Third Quarter 2020 Results 4
$763 million in interest income related to these loans in the third quarter, which it would not have recognized prior to 

the application of its updated policy. 

Net Interest Income

(Dollars in Billions)

$4.5 $5.2 $4.7 $5.3 $6.3

$0.8

$0.7 $0.6 $0.5

$0.4 $5.3 $5.9 $5.3 $5.8

$6.7

Net interest income from guaranty book of business1 Net interest income from portfolios

Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020

(1) Includes revenues generated by the 10 basis point guaranty fee increase the company implemented pursuant to the TCCA, the incremental 

revenue from which is remitted to Treasury and not retained by Fannie Mae.

Net fair value losses were $327 million in the third quarter of 2020, compared with $1.0 billion in the second 

quarter of 2020. Net fair value losses decreased in the third quarter of 2020 compared with the second quarter of 

2020 due primarily to (1) a decrease in losses on debt reported at fair value due to yields remaining mostly flat 

during the quarter compared to declines in the second quarter of 2020 and (2) gains on credit enhancement 

derivatives as higher loan default expectations led to an increase in the fair value of risk-sharing securities covering 

the loans. 

Fair Value Gains (Losses), Net

(Dollars in Billions)

$(0.7)

$0.1

$(0.3)

$(1.0)

$(0.3)

Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020

Net investment gains were $653 million in the third quarter of 2020, compared with $149 million in the second 

quarter of 2020. The increase in the third quarter of 2020 was driven by an increase in sales of single-family heldfor-sale loans. 

Investment Gains (Losses), Net

(Dollars in Billions)

$0.3

$0.9

$(0.2)

$0.1

$0.7

Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020

Third Quarter 2020 Results 5
Credit-related income (expense) consists of a benefit or provision for credit losses and foreclosed property 

expense. Credit-related income was $430 million in the third quarter of 2020, compared with credit-related expense 

of $22 million in the second quarter of 2020. The shift to credit-related income in the third quarter of 2020 was 

driven by the impact of actual and forecasted home prices as well as the redesignation of reperforming single-family 

mortgage loans from held-for-investment to held-for-sale, partially offset by an increase in the allowance for loan 

losses the company expects to incur as a result of the COVID-19 pandemic. In the third quarter of 2020, 

management continued to apply its judgment and supplement model results as of September 30, 2020, taking into 

account the continued high degree of uncertainty regarding the future impact of the pandemic and its effect on the 

economy, future economic and housing policy, and extended foreclosure moratoriums. 

Credit-Related Income (Expense)

(Dollars in Billions)

$1.8

$0.1

$(2.7)

$(0.02)

$0.4

Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020

Providing Liquidity and Support to the Market

Fannie Mae’s mission is to provide a stable source of liquidity to support housing for low-and moderate-income 

borrowers and renters. In the first nine months of 2020, more than 90% of the multifamily units the company 

financed were affordable to families earning at or below 120% of the area median income, providing support for 

workforce housing and affordable housing.

Through its single-family and multifamily business segments, Fannie Mae provided $982 billion in liquidity to the 

mortgage market in the first nine months of 2020, including $506 billion through its whole loan conduit, enabling the 

financing of approximately 3.9 million home purchases, refinancings, or rental units. 

Fannie Mae Provided $982 Billion in Liquidity in the First Nine Months of 2020

Unpaid Principal Balance Units

$286B 1.0M

Single-Family Home Purchases

$647B 2.3M

Single-Family Refinancings

$49B 542K

Multifamily Rental Units

Third Quarter 2020 Results 6
Business Segments 

Fannie Mae’s two reportable business segments—Single-Family and Multifamily—engage in complementary 

business activities to provide liquidity, access to credit, and affordability in all U.S. housing markets at all times, 

while effectively managing risk. 

Single-Family Business Financial Results

(Dollars in millions) 3Q20 2Q20 Variance 3Q19 Variance

Net interest income $ 5,870 $ 4,939 $ 931 $ 4,484 $ 1,386 

Fee and other income 73 71 2 156 (83) 

Net revenues 5,943 5,010 933 4,640 1,303 

Investment gains, net 583 96 487 198 385 

Fair value losses, net (244) (1,030) 786 (719) 475 

Administrative expenses (634) (625) (9) (634) — 

Credit-related income 478 216 262 1,747 (1,269) 

TCCA fees (679) (660) (19) (613) (66) 

Credit enhancement expense (274) (307) 33 (240) (34) 

Change in expected credit enhancement recoveries (48) 208 (256) — (48) 

Other expenses, net (307) (252) (55) (184) (123) 

Income before federal income taxes 4,818 2,656 2,162 4,195 623 

Provision for federal income taxes (1,049) (556) (493) (872) (177) 

Net income $ 3,769 $ 2,100 $ 1,669 $ 3,323 $ 446 

Serious delinquency rate 3.20 % 2.65 % 0.68 %

Business Highlights

• The average single-family conventional guaranty book of business during the third quarter of 2020

increased from the second quarter of 2020 by approximately $72 billion. The average charged guaranty fee, 

net of Temporary Payroll Tax Cut Continuation Act of 2011 (TCCA) fees, on the single-family conventional 

guaranty book increased from 44.2 basis points as of June 30, 2020 to 44.4 basis points as of September 

30, 2020. The credit characteristics of the single-family conventional guaranty book of business did not 

change materially in the third quarter of 2020 and remained strong, with a weighted-average mark-tomarket loan-to-value ratio of 57% and weighted-average FICO credit score of 749.

• Fannie Mae’s average charged guaranty fee on newly acquired conventional single-family loans, net of 

TCCA fees, decreased 1.8 basis points to 44.9 basis points in the third quarter of 2020 from 46.7 basis 

points in the second quarter of 2020, driven primarily by the stronger credit profile of the single-family loans 

acquired in the third quarter of 2020 compared with the second quarter of 2020.

• Single-family acquisition volume was $391.4 billion in the third quarter of 2020, an increase of 11%

compared with the second quarter of 2020. The increase was driven by a $7 billion increase in refinance 

volume due to the historically low interest rate environment, resulting in the highest level of refinance 

volumes in any quarter since the third quarter of 2003.

• The single-family serious delinquency rate increased to 3.20% as of September 30, 2020, from 2.65% as of 

June 30, 2020, as a result of the large number of loans in COVID-19-related forbearances becoming 

seriously delinquent. The single-family serious delinquency rate excluding loans in forbearance was 0.65%

as of September 30, 2020, compared to 0.59% as of June 30, 2020. Single-family seriously delinquent 

loans are loans that are 90 days or more past due or in the foreclosure process. 

• As of September 30, 2020, 4.1% of Fannie Mae’s single-family guaranty book of business based on loan 

count was in forbearance, the vast majority of which was related to the COVID-19 pandemic, compared to 

5.7% as of June 30, 2020. As of September 30, 2020, 20% of the loans in forbearance were still current.

Third Quarter 2020 Results 7
Multifamily Business Financial Results

(Dollars in millions) 3Q20 2Q20 Variance 3Q19 Variance

Net interest income $ 786 $ 838 $ (52) $ 864 $ (78) 

Fee and other income 20 19 1 32 (12) 

Net revenues 806 857 (51) 896 (90) 

Fair value gains (losses), net (83) 12 (95) 6 (89) 

Administrative expenses (128) (129) 1 (115) (13) 

Credit-related income (expense) (48) (238) 190 14 (62) 

Credit enhancement expense (51) (53) 2 (50) (1) 

Change in expected credit enhancement recoveries — 65 (65) — — 

Other income, net 64 44 20 53 11 

Income before federal income taxes 560 558 2 804 (244) 

Provision for federal income taxes (100) (113) 13 (164) 64 

Net income $ 460 $ 445 $ 15 $ 640 $ (180) 

Serious delinquency rate 1.12 % 1.00 % 0.06 %

Business Highlights

• The multifamily guaranty book of business increased by $9 billion during the third quarter of 2020 to 

$367 billion. The average charged guaranty fee on the multifamily book increased from 72.3 basis points as 

of June 30, 2020 to 73.3 basis points as of September 30, 2020. This resulted in an increase in guaranty 

fee revenue, which was offset by a decrease in portfolio net interest income and yield maintenance revenue 

resulting in a decrease in net interest income for the quarter.

• New multifamily business volume was $49 billion in the first nine months of 2020. Approximately $33 billion

of new business capacity remains under the $100 billion multifamily business volume cap for the fivequarter period ending December 31, 2020.

• The multifamily serious delinquency rate increased to 1.12% as of September 30, 2020 from 1.00% as of 

June 30, 2020 as a result of the large number of loans in COVID-19-related forbearances becoming 

seriously delinquent. The multifamily serious delinquency rate excluding loans in forbearance was 0.04% as 

of September 30, 2020. Multifamily seriously delinquent loans are loans that are 60 days or more past due.

• As of September 30, 2020, based on unpaid principal balance, 1.3% of Fannie Mae’s multifamily guaranty 

book of business received a forbearance plan, primarily as a result of the COVID-19 pandemic. 

Approximately half of those loans measured by unpaid principal balance are currently in a repayment plan, 

and 0.5% of the book, or $1.7 billion, is still in active forbearance. 

Third Quarter 2020 Results 8
Net Worth, Treasury Funding and Senior Preferred Stock Dividends

Treasury has made a commitment under a senior preferred stock purchase agreement to provide funding to Fannie 

Mae under certain circumstances if the company has a net worth deficit. Pursuant to the senior preferred stock 

purchase agreement, the company issued shares of senior preferred stock to Treasury in 2008.

Under the terms of the senior preferred stock, Fannie Mae will not owe senior preferred stock dividends to Treasury 

until it has accumulated over $25 billion in net worth as of the end of a quarter. Accordingly, no dividends were 

payable to Treasury for the third quarter of 2020, and none are payable for the fourth quarter of 2020.

The charts below show information about Fannie Mae’s net worth, the remaining amount of Treasury’s funding 

commitment to Fannie Mae, senior preferred stock dividends the company has paid Treasury and funds the 

company has drawn from Treasury pursuant to its funding commitment.

Net Worth and Treasury

Funding Commitment

(Dollars in billions)

$20.7

$113.9

Net Worth

Remaining Treasury funding commitment

As of September 30, 2020

Dividend Payments and Draws

(Dollars in billions)

$181.4

$119.8

Cumulative dividend payments to Treasury1

Cumulative draws from Treasury2

As of September 30, 2020

(1) Aggregate amount of dividends the company has paid to Treasury on the senior preferred stock from 2008 through September 30, 2020. 

Under the terms of the senior preferred stock purchase agreement, dividend payments the company makes to Treasury do not offset its 

draws of funds from Treasury.

(2) Aggregate amount of funds the company has drawn from Treasury pursuant to the senior preferred stock purchase agreement from 2008 

through September 30, 2020.

The aggregate liquidation preference of the senior preferred stock increased from $135.4 billion as of June 30, 2020

to $138.0 billion as of September 30, 2020 due to the $2.5 billion increase in the company’s net worth during the 

second quarter of 2020. The aggregate liquidation preference of the senior preferred stock will increase to $142.2 

billion as of December 31, 2020 due to the $4.2 billion increase in our net worth during the third quarter of 2020.

If the company were to draw additional funds from Treasury under the senior preferred stock purchase agreement 

with respect to a future period, the amount of remaining funding under the agreement would be reduced by the 

amount of the company’s draw, and the aggregate liquidation preference of the senior preferred stock would 

increase by the amount of that draw.

For a description of the terms of the senior preferred stock purchase agreement and the senior preferred stock, see 

“Business—Conservatorship, Treasury Agreements and Housing Finance Reform” in the company’s 2019 Form 10-

K.

-

Fannie Mae’s financial statements for the third quarter of 2020 are available in the accompanying Annex; however, 

investors and interested parties should read the company’s Third Quarter 2020 Form 10-Q, which was filed today 

with the Securities and Exchange Commission and is available on Fannie Mae’s website, www.fanniemae.com. The 

company provides further discussion of its financial results and condition, credit performance, and other matters in 

Third Quarter 2020 Results 9
its Third Quarter 2020 Form 10-Q. Additional information about the company’s financial and credit performance is 

contained in Fannie Mae’s Q3 2020 Financial Supplement at www.fanniemae.com.

# # #

In this release, the company has presented a number of estimates, forecasts, expectations, and other forwardlooking statements, including statements regarding: the company’s business plans, the company’s future business 

and financial results, the future impact of the COVID-19 pandemic on the company’s business and financial results, 

future dividend payments to Treasury, and the future liquidation preference of the senior preferred stock. These 

estimates, forecasts, expectations, and statements are forward-looking statements based on the company’s current 

assumptions regarding numerous factors and are subject to significant uncertainties and changes in circumstances. 

Actual results, and future projections, could be materially different from what is set forth in these forward-looking 

statements due to a variety of factors, including those described in “Forward-Looking Statements” and “Risk 

Factors” in the company’s Third Quarter 2020 Form 10-Q and its 2019 Form 10-K.

Fannie Mae provides website addresses in its news releases solely for readers’ information. Other content or information appearing on these websites is not part of 

this release. 

Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. We partner with lenders to create housing 

opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and 

risk. To learn more, visit fanniemae.com and follow us on twitter.com/fanniemae.

Third Quarter 2020 Results 10
ANNEX

FANNIE MAE

(In conservatorship)

Condensed Consolidated Balance Sheets — (Unaudited)

(Dollars in millions)

As of

September 30, 

2020

December 31, 

2019

ASSETS

Cash and cash equivalents $ 37,472 $ 21,184 

Restricted cash (includes $65,431 and $33,294, respectively, related to consolidated trusts) 73,516 40,223 

Federal funds sold and securities purchased under agreements to resell or similar arrangements 12,700 13,578 

Investments in securities:

Trading, at fair value (includes $6,237 and $3,037, respectively, pledged as collateral) 142,472 48,123 

Available-for-sale, at fair value (with an amortized cost of $1,780, net of allowance for credit losses of 

 $3 as of September 30, 2020) 1,895 2,404 

Total investments in securities 144,367 50,527 

Mortgage loans:

Loans held for sale, at lower of cost or fair value 8,312 6,773 

Loans held for investment, at amortized cost:

Of Fannie Mae 111,056 94,911 

Of consolidated trusts 3,439,678 3,241,494 

Total loans held for investment (includes $6,968 and $7,825, respectively, at fair value) 3,550,734 3,336,405 

Allowance for loan losses (11,703) (9,016) 

Total loans held for investment, net of allowance 3,539,031 3,327,389 

Total mortgage loans 3,547,343 3,334,162 

Advances to lenders 10,228 6,453 

Deferred tax assets, net 12,808 11,910 

Accrued interest receivable, net (includes $9,867 and $8,172, respectively, related to consolidated trusts 

 and net of an allowance of $569 as of September 30, 2020) 9,748 8,604 

Acquired property, net 1,462 2,366 

Other assets 14,959 14,312 

Total assets $ 3,864,603 $ 3,503,319 

LIABILITIES AND EQUITY

Liabilities:

Accrued interest payable (includes $9,133 and $9,361, respectively, related to consolidated trusts) $ 9,982 $ 10,228 

Debt:

Of Fannie Mae (includes $3,986 and $5,687, respectively, at fair value) 289,423 182,247 

Of consolidated trusts (includes $24,741 and $21,880, respectively, at fair value) 3,530,381 3,285,139 

Other liabilities (includes $1,813 and $376, respectively, related to consolidated trusts) 14,124 11,097 

Total liabilities 3,843,910 3,488,711 

Commitments and contingencies (Note 13) — — 

Fannie Mae stockholders’ equity:

Senior preferred stock (liquidation preference of $137,976 and $131,178, respectively) 120,836 120,836 

Preferred stock, 700,000,000 shares are authorized—555,374,922 shares issued and outstanding 19,130 19,130 

Common stock, no par value, no maximum authorization—1,308,762,703 shares issued and 

 1,158,087,567 shares outstanding 687 687 

Accumulated deficit (112,680) (118,776) 

Accumulated other comprehensive income 120 131 

Treasury stock, at cost, 150,675,136 shares (7,400) (7,400) 

Total stockholders’ equity (See Note 1: Senior Preferred Stock Purchase Agreement and Senior 

Preferred Stock for information on the related dividend obligation and liquidation preference) 20,693 14,608 

Total liabilities and equity $ 3,864,603 $ 3,503,319 

See Notes to Condensed Consolidated Financial Statements in the Third Quarter 2020 Form 10-Q

Third Quarter 2020 Results 11
FANNIE MAE

(In conservatorship)

Condensed Consolidated Statements of Operations and Comprehensive Income — (Unaudited)

(Dollars in millions, except per share amounts)

For the Three Months 

Ended September 30,

For the Nine Months 

Ended September 30,

2020 2019 2020 2019

Interest income:

Trading securities $ 177 $ 418 $ 712 $ 1,277 

Available-for-sale securities 19 40 76 138 

Mortgage loans 25,810 29,072 81,755 88,445 

Federal funds sold and securities purchased under agreements to resell or similar 

arrangements 14 178 135 698 

Other 33 47 92 120 

Total interest income 26,053 29,755 82,770 90,678 

Interest expense:

Short-term debt (19) (125) (175) (369) 

 Long-term debt (19,378) (24,282) (64,815) (74,938) 

Total interest expense (19,397) (24,407) (64,990) (75,307) 

Net interest income 6,656 5,348 17,780 15,371 

Benefit (provision) for credit losses 501 1,857 (2,094) 3,732 

Net interest income after benefit (provision) for credit losses 7,157 7,205 15,686 19,103 

Investment gains, net 653 253 644 847 

Fair value losses, net (327) (713) (1,621) (2,298) 

Fee and other income 93 188 303 435 

Non-interest income (loss) 419 (272) (674) (1,016) 

Administrative expenses:

Salaries and employee benefits (386) (361) (1,161) (1,123) 

Professional services (230) (241) (673) (699) 

Other administrative expenses (146) (147) (431) (415) 

Total administrative expenses (762) (749) (2,265) (2,237) 

Foreclosed property expense (71) (96) (161) (364) 

Temporary Payroll Tax Cut Continuation Act of 2011 (“TCCA”) fees (679) (613) (1,976) (1,806) 

Credit enhancement expense (325) (290) (1,061) (782) 

Change in expected credit enhancement recoveries (48) — 413 — 

Other expenses, net (313) (186) (792) (551) 

Total expenses (2,198) (1,934) (5,842) (5,740) 

Income before federal income taxes 5,378 4,999 9,170 12,347 

Provision for federal income taxes (1,149) (1,036) (1,935) (2,552) 

Net income 4,229 3,963 7,235 9,795 

Other comprehensive income (loss):

Changes in unrealized gains (losses) on available-for-sale securities, net of 

reclassification adjustments and taxes (11) 16 (4) (85) 

Other, net of taxes (2) (2) (7) (7) 

Total other comprehensive income (loss) (13) 14 (11) (92) 

Total comprehensive income $ 4,216 $ 3,977 $ 7,224 $ 9,703 

Net income $ 4,229 $ 3,963 $ 7,235 $ 9,795 

Dividends distributed or amounts attributable to senior preferred stock (4,216) (3,977) (7,224) (9,703) 

Net income (loss) attributable to common stockholders $ 13 $ (14) $ 11 $ 92 

Earnings per share:

Basic $ 0.00 $ 0.00 $ 0.00 $ 0.02 

Diluted 0.00 0.00 0.00 0.02 

Weighted-average common shares outstanding:

Basic 5,867 5,762 5,867 5,762 

Diluted 5,893 5,762 5,893 5,893 

See Notes to Condensed Consolidated Financial Statements in the Third Quarter 2020 Form 10-Q

Third Quarter 2020 Results 12
FANNIE MAE

(In conservatorship)

Condensed Consolidated Statements of Cash Flows — (Unaudited)

(Dollars in millions)

For the Nine Months 

Ended September 30,

2020 2019

Net cash provided by (used in) operating activities $ (76,994) $ 3,176 

Cash flows provided by (used in) investing activities:

Proceeds from maturities and paydowns of trading securities held for investment 35 46 

Proceeds from sales of trading securities held for investment 44 49 

Proceeds from maturities and paydowns of available-for-sale securities 275 364 

Proceeds from sales of available-for-sale securities 258 376 

Purchases of loans held for investment (519,133) (181,898) 

Proceeds from repayments of loans acquired as held for investment of Fannie Mae 7,711 9,338 

Proceeds from sales of loans acquired as held for investment of Fannie Mae 4,422 8,987 

Proceeds from repayments and sales of loans acquired as held for investment of consolidated trusts 770,982 377,789 

Advances to lenders (223,007) (95,636) 

Proceeds from disposition of acquired property and preforeclosure sales 4,694 5,644 

Net change in federal funds sold and securities purchased under agreements to resell or similar arrangements 878 9,762 

Other, net (576) (74) 

Net cash provided by investing activities 46,583 134,747 

Cash flows provided by (used in) financing activities:

Proceeds from issuance of debt of Fannie Mae 501,627 587,659 

Payments to redeem debt of Fannie Mae (394,187) (606,665) 

Proceeds from issuance of debt of consolidated trusts 716,591 286,126 

Payments to redeem debt of consolidated trusts (743,578) (385,496) 

Payments of cash dividends on senior preferred stock to Treasury — (5,601) 

Other, net (461) 1,129 

Net cash provided by (used in) financing activities 79,992 (122,848) 

Net increase in cash, cash equivalents and restricted cash 49,581 15,075 

Cash, cash equivalents and restricted cash at beginning of period 61,407 49,423 

Cash, cash equivalents and restricted cash at end of period $ 110,988 $ 64,498 

Cash paid during the period for:

Interest $ 86,035 $ 86,699 

Income taxes 2,750 1,250 

See Notes to Condensed Consolidated Financial Statements in the Third Quarter 2020 Form 10-Q

Third Quarter 2020 Results 13
FANNIE MAE

(In conservatorship)

Condensed Consolidated Statements of Changes in Equity (Deficit) — (Unaudited)

(Dollars and shares in millions)

Fannie Mae Stockholders’ Equity (Deficit)

Shares Outstanding

Senior

Preferred 

Stock

Preferred

Stock

Common

Stock

Accumulated

Deficit

Accumulated 

Other

Comprehensive

Income

Treasury

Stock

Total

Equity

Senior

Preferred Preferred Common

Balance as of June 30, 2020 1 556 1,158 $ 120,836 $ 19,130 $ 687 $ (116,909) $ 133 $ (7,400) $ 16,477 

Senior preferred stock dividends paid — — — — — — — — — — 

Comprehensive income:

Net income — — — — — — 4,229 — — 4,229 

Other comprehensive income, net of tax effect:

Changes in net unrealized gains on available-

 for-sale securities (net of taxes of $0) — — — — — — — 1 — 1 

Reclassification adjustment for gains included in

 net income (net of taxes of $3) — — — — — — — (12) — (12) 

Other (net of taxes of $1) — — — — — — — (2) — (2) 

Total comprehensive income 4,216 

Balance as of September 30, 2020 1 556 1,158 $ 120,836 $ 19,130 $ 687 $ (112,680) $ 120 $ (7,400) $ 20,693 

Fannie Mae Stockholders’ Equity (Deficit)

Shares Outstanding

Senior

Preferred 

Stock

Preferred

Stock

Common

Stock

Accumulated

Deficit

Accumulated 

Other

Comprehensive

Income

Treasury

Stock

Total

Equity

Senior

Preferred Preferred Common

Balance as of December 31, 2019 1 556 1,158 $ 120,836 $ 19,130 $ 687 $ (118,776) $ 131 $ (7,400) $ 14,608 

Transition impact, net of tax, from the adoption of

 the current expected credit loss standard — — — — — — (1,139) — — (1,139) 

Balance as of January 1, 2020, adjusted 1 556 1,158 120,836 19,130 687 (119,915) 131 (7,400) 13,469 

Senior preferred stock dividends paid — — — — — — — — — — 

Comprehensive income:

Net income — — — — — — 7,235 — — 7,235 

Other comprehensive income, net of tax effect:

Changes in net unrealized gains on available-

 for-sale securities (net of taxes of $1) — — — — — — — 2 — 2 

Reclassification adjustment for gains included in

 net income (net of taxes of $2) — — — — — — — (6) — (6) 

Other (net of taxes of $2) — — — — — — — (7) — (7) 

Total comprehensive income 7,224 

Balance as of September 30, 2020 1 556 1,158 $ 120,836 $ 19,130 $ 687 $ (112,680) $ 120 $ (7,400) $ 20,693 

See Notes to Condensed Consolidated Financial Statements in the Third Quarter 2020 Form 10-Q

Third Quarter 2020 Results 14
FANNIE MAE

(In conservatorship)

Condensed Consolidated Statements of Changes in Equity (Deficit) — (Unaudited)

(Dollars and shares in millions)

Fannie Mae Stockholders’ Equity (Deficit)

Shares Outstanding

Senior

Preferred 

Stock

Preferred

Stock

Common

Stock

Accumulated

Deficit

Accumulated 

Other

Comprehensive

Income

Treasury

Stock

Total

Equity

Senior

Preferred Preferred Common

Balance as of June 30, 2019 1 556 1,158 $ 120,836 $ 19,130 $ 687 $ (127,104) $ 216 $ (7,400) $ 6,365 

Senior preferred stock dividends paid — — — — — — — — — — 

Comprehensive income:

Net income — — — — — — 3,963 — — 3,963 

Other comprehensive income, net of tax effect:

Changes in net unrealized gains on available-

 for-sale securities (net of taxes of $2) — — — — — — — 10 — 10 

Reclassification adjustment for gains included in

 net income (net of taxes of $1) — — — — — — — 6 — 6 

Other (net of taxes of $1) — — — — — — — (2) — (2) 

Total comprehensive income 3,977 

Balance as of September 30, 2019 1 556 1,158 $ 120,836 $ 19,130 $ 687 $ (123,141) $ 230 $ (7,400) $ 10,342 

Fannie Mae Stockholders’ Equity (Deficit)

Shares Outstanding

Senior

Preferred 

Stock

Preferred

Stock

Common

Stock

Accumulated

Deficit

Accumulated 

Other

Comprehensive

Income

Treasury

Stock

Total

Equity

Senior

Preferred Preferred Common

Balance as of December 31, 2018 1 556 1,158 $ 120,836 $ 19,130 $ 687 $ (127,335) $ 322 $ (7,400) $ 6,240 

Senior preferred stock dividends paid — — — — — — (5,601) — — (5,601) 

Comprehensive income:

Net income — — — — — — 9,795 — — 9,795 

Other comprehensive income, net of tax effect:

Changes in net unrealized gains on available-

 for-sale securities (net of taxes of $7) — — — — — — — 27 — 27 

Reclassification adjustment for gains included in

 net income (net of taxes of $30) — — — — — — — (112) — (112) 

Other (net of taxes of $2) — — — — — — — (7) — (7) 

Total comprehensive income 9,703 

Balance as of September 30, 2019 1 556 1,158 $ 120,836 $ 19,130 $ 687 $ (123,141) $ 230 $ (7,400) $ 10,342 

See Notes to Condensed Consolidated Financial Statements in the Third Quarter 2020 Form 10-Q

Third Quarter 2020 Results 15