April 2, 2013

Fannie Mae

2012 Credit Supplement
1

 This presentation includes information about Fannie Mae, including information 

contained in Fannie Mae’s Annual Report on Form 10-K for the year ended 

December 31, 2012, the “2012 Form 10-K.” Some of the terms used in these 

materials are defined and discussed more fully in the 2012 Form 10-K. These 

materials should be reviewed together with the 2012 Form 10-K, which is available 

on the “SEC Filings” page in the “Investor Relations” section of Fannie Mae’s web 

site at www.fanniemae.com. 

 Some of the information in this presentation is based upon information that we 

received from third-party sources such as sellers and servicers of mortgage 

loans. Although we generally consider this information reliable, we do not 

independently verify all reported information. 

 This presentation includes forward-looking statements relating to future home 

price changes. Future home price changes may be very different from our 

expectations as a result of significant inherent uncertainty in the current market 

environment, including uncertainty about the effect of actions the federal 

government has taken and may take with respect to tax policies, spending cuts, 

mortgage finance programs and policies, and housing finance reform; the 

management of the Federal Reserve’s MBS holdings; the impact of those actions 

on and changes generally in unemployment and the general economic and 

interest rate environment; and the impact on the U.S. economy of the economic 

uncertainty in Europe. The impact of future home price changes on our business, 

results or financial condition will depend on many other factors.

 Due to rounding, amounts reported in this presentation may not add to totals 

indicated (or 100%). A zero indicates less than one half of one percent. A dash 

indicates a null value.
2

Table of Contents

Home Prices

Home Price Growth/Decline Rates in the U.S. 3

Home Price Change Peak-to-Current as of 2012 Q4 4

Credit Profile of Fannie Mae Single-Family Loans

Credit Characteristics of Single-Family Business Acquisitions 5

Credit Characteristics of Single-Family Business Acquisitions under the Refi Plus InitiativeTM 6

Credit Characteristics of Single-Family Conventional Guaranty Book of Business by Key Product Features 7

Credit Characteristics of Single-Family Conventional Guaranty Book of Business by Origination Year 8

Credit Characteristics of Single-Family Conventional Guaranty Book of Business by State 9

Credit Characteristics of Single-Family Conventional Guaranty Book of Business of Alt-A by Origination Year 10

Credit Characteristics of Single-Family Conventional Guaranty Book of Business under the Refi Plus Initiative 11

Serious Delinquency Rates of Single-Family Conventional Guaranty Book of Business by State and Region 12

Workouts of Fannie Mae Single-Family Loans

Single-Family Completed Workouts by Type 13

Single-Family Loan Modifications by Monthly Payment Change and Type 14

Re-performance Rates of Modified Single-Family Loans 15

Additional Credit Information for Fannie Mae Single-Family Loans

Cumulative Default Rates of Single-Family Conventional Guaranty Book of Business by Origination Year 16

Single-Family Real Estate Owned (REO) in Selected States 17

Single-Family Real Estate Owned (REO) Sales Price / UPB of Mortgage Loans 18

Credit Profile of Fannie Mae Multifamily Loans

Multifamily Credit Profile by Loan Attributes 19

Multifamily Credit Profile by Acquisition Year 20

Multifamily Credit Profile 21

Multifamily 2012 Credit Losses by State 22
3

Home Price Growth/Decline Rates in the U.S.

Fannie Mae Home Price Index

Growth rates are from period-end to period-end.

After declining by an estimated 23.8% from their peak in the third quarter of 2006 to the first quarter of 2012, based on our home price index, we 

estimate that home prices on a national basis increased by 4.7% in 2012 overall, and by 0.5% in the fourth quarter of 2012. Although home price growth 

may not continue at 2012 rates, we expect that, if current market trends continue, home prices will increase on a national basis overall in 2013. 

*Estimate based on purchase transactions in Fannie-Freddie acquisition and public deed data available through the end of January 2013. 

Including subsequent data may lead to materially different results. 

S&P/Case-Shiller Index 9.8% 7.7% 10.6% 10.7% 14.6% 14.7% -0.3% -8.4% -18.4% -2.5% -3.8% -3.7% 7.3%

7.0% 6.3%

7.5% 7.6%

10.6% 11.3%

2.8%

-3.4%

-9.1%

-4.8% -4.4% -3.7%

4.7%

-15%

-10%

-5%

0%

5%

10%

15%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012*
4

T X

- 0 . 1 %

5 . 3 %

M T

- 7 . 9 %

0 . 3 %

C A

-4 2 . 2 %

1 9 . 0 %

C O

- 6 . 7 %

2 . 6 %

N M

-1 6 . 0 %

0 . 6 %

W Y

- 3 . 0 %

0 . 2 %

A Z

- 4 2 . 5 %

2 . 4 %

S D

0 . 0 %

0 . 2 %

N V

- 5 5 . 8 %

1 . 0 %

N D

0 . 0 %

0 . 1 %

K S

- 3 . 1 %

0 . 5 %

O R

- 2 5 . 4 %

1 . 7 %

N E

- 4 . 9 %

0 . 4 %

O K

- 0 . 5 %

0 . 6 %

U T

- 1 9 . 0 %

1 . 0 %

M N

- 1 9 . 4 %

1 . 8 %

I D

- 2 4 . 5 %

0 . 5 %

M O

- 1 1 . 8 %

1 . 4 %

I A

- 0 . 6 %

0 . 7 %

W A

- 2 5 . 7 %

3 . 5 %

A R

- 5 . 8 %

0 . 5 %

G A

- 2 7 . 3 %

2 . 7 %

P A

- 6 . 6 %

3 . 1 %

L A

0 . 0 %

0 . 9 %

I L

- 2 6 . 0 %

4 . 2 %

W I

- 1 2 . 6 %

1 . 8 %

F L

- 4 7 . 2 %

6 . 0 %

A L

- 1 0 . 7 %

1 . 0 %

T N

- 8 . 8 %

1 . 3 %

N C

- 1 1 . 9 %

2 . 5 %

K Y

- 3 . 3 %

0 . 6 %

N Y

- 1 1 . 4 %

5 . 6 %

M S

- 1 0 . 7 %

0 . 4 %

I N

- 5 . 3 %

1 . 2 %

M I

- 2 8 . 7 %

2 . 5 %

O H

- 1 3 . 6 %

2 . 2 %

V A

- 1 9 . 2 %

3 . 6 %

M E

- 1 3 . 4 %

0 . 3 %

S C

- 1 3 . 5 %

1 . 2 %

W V

-2 . 7 %

0 . 2 %

V T

- 9 . 5 %

0 . 2 %

M D

- 2 7 . 7 %

2 . 8 %

N H

- 2 2 . 5 %

0 . 5 %

M A

- 1 8 . 3 %

3 . 1 %

N J

- 2 6 . 2 %

4 . 0 %

C T

- 2 1 . 4 %

1 . 4 %

D E

- 1 9 . 9 %

0 . 4 %

R I

- 3 2 . 3 %

0 . 4 %

D C

0 . 0 %

0 . 4 %

Home Price Change Peak-to-Current as of 2012 Q4*

Mountain

-27.0%

8.5%

East North Central

-18.7%

11.9%

West North Central

-8.7%

5.0%

New England

-18.7%

5.8%

Middle Atlantic

-12.4%

12.7%

South Atlantic

-28.3%

19.8%

East South Central

-8.4%

3.4%

West South Central

-0.3%

7.3%

Pacific

-36.7%

25.2%

United States -20.0%

Below -30%

-30% to -15%

-15% to -5%

-5% to 0%

0% and above

State Growth Rate

State

Growth Rate

UPB %

A K

- 2 . 4 %

0 . 2 %

H I

- 1 7 . 0 %

0 . 8 %

Top %: State/Region Home Price Growth Rate percentage from applicable peak in that state/region through December 31, 2012.

Bottom %: Percent of Fannie Mae single-family conventional guaranty book of business by unpaid principal balance as of December 31, 2012. 

Note: Regional home price change percentages are a housing stock unit-weighted average of home price change percentages of states within each region.

*Source: Fannie Mae. Estimates based on purchase transactions in Fannie-Freddie acquisition and public deed data available through the end of January 2013. Including subsequent data may 

lead to materially different results. 
5

Credit Characteristics of Single-Family Business Acquisitions(1)

(1) Percentage calculated based on unpaid principal balance of loans at time of acquisition. Single-family business volume refers to both single-family mortgage loans we purchased for our 

mortgage portfolio and single-family mortgage loans we guarantee into Fannie Mae MBS. Beginning with the third quarter of 2011, we prospectively report loans underlying long-term 

standby commitments in the period in which the commitment was established, rather than at the time of actual delivery. 

(2) The increase after 2009 is the result of HARP, which involves the refinance of existing Fannie Mae loans that can have loan-to-value ratios in excess of 100%.

(3) Refi Plus and HARP started in April 2009.

(4) FICO credit scores as reported by the seller of the mortgage loan at the time of delivery.

(5) Newly originated Alt-A loans acquired after 2008 consist of the refinance of existing loans under our Refi Plus initiative, which provides expanded refinance opportunities for eligible Fannie 

Mae borrowers and includes HARP.

Acquisition Year 2012 2011 2010 2009 2008 2007 2006 2005 2004

Unpaid Principal Balance (billions) $832.2 $562.3 $595.0 $684.7 $557.2 $643.8 $515.8 $524.2 $568.8

Weighted Average Origination Note Rate 3.78% 4.35% 4.64% 4.93% 6.00% 6.51% 6.45% 5.73% 5.63%

Origination Loan-to-Value Ratio

 <= 60% 25.3% 29.1% 30.3% 32.6% 22.7% 16.7% 18.6% 21.4% 23.1%

 >60% and <= 70% 14.4% 15.5% 15.9% 17.0% 16.1% 13.5% 15.1% 16.3% 16.2%

 >70% and <= 80% 34.4% 37.3% 38.5% 39.9% 39.5% 44.7% 49.6% 46.2% 43.1%

 >80% and <= 90% 9.1% 8.9% 8.6% 6.9% 11.7% 9.1% 6.8% 7.4% 8.2%

 >90% and <= 100% (2) 8.4% 6.8% 5.2% 3.3% 10.0% 15.8% 9.7% 8.5% 9.3%

 > 100% (2) 8.3% 2.3% 1.6% 0.4% 0.1% 0.1% 0.2% 0.2% 0.2%

Weighted Average Origination Loan-to-Value Ratio 74.5% 69.3% 68.4% 66.8% 72.0% 75.5% 73.4% 72.0% 71.4%

Weighted Average Origination Loan-to-Value Ratio Excluding HARP (3) 67.8% 66.6% 65.8% 65.8%

FICO Credit Scores (4)

 0 to < 620 0.8% 0.5% 0.4% 0.4% 2.8% 6.4% 6.2% 5.4% 5.6%

 >= 620 and < 660 2.2% 1.8% 1.6% 1.5% 5.7% 11.5% 11.2% 10.7% 11.5%

 >=660 and < 700 7.2% 7.0% 6.6% 6.5% 13.9% 19.2% 19.6% 18.9% 19.4%

 >=700 and < 740 15.6% 16.2% 16.1% 17.2% 21.7% 22.6% 23.0% 23.2% 23.9%

 >=740 74.1% 74.5% 75.1% 74.4% 55.8% 40.1% 39.7% 41.5% 39.2%

 Missing 0.0% 0.1% 0.1% 0.1% 0.1% 0.1% 0.2% 0.3% 0.4%

Weighted Average FICO Credit Score 761 762 762 761 738 716 716 719 715

Product Distribution

Fixed-rate 96.7% 93.5% 93.7% 96.6% 91.7% 90.1% 83.4% 78.7% 78.8%

Adjustable-rate 3.3% 6.5% 6.3% 3.4% 8.3% 9.9% 16.6% 21.3% 21.2%

Alt-A (5) 0.8% 1.2% 0.9% 0.2% 3.1% 16.7% 21.8% 16.1% 11.9%

Subprime 0.3% 0.7% 0.7% 0.0%

Interest Only 0.3% 0.7% 1.3% 1.0% 5.6% 15.2% 15.2% 10.1% 5.0%

Negative Amortizing 0.0% 0.3% 3.1% 3.2% 1.9%

Investor 7.2% 6.5% 4.6% 2.5% 5.6% 6.5% 7.0% 6.4% 5.4%

Condo/Co-op 9.1% 8.8% 8.6% 8.2% 10.3% 10.4% 10.5% 9.8% 8.8%

Refinance 79.4% 76.5% 77.4% 79.9% 58.6% 50.4% 48.3% 53.1% 57.3%

Total Refi Plus Initiative (3) 24.5% 24.3% 23.4% 10.6%

HARP 15.6% 9.9% 9.8% 4.1%

Origination Loan-to-Value Ratio: 

>80% and <=105% 57.2% 88.1% 94.4% 99.1%

>105% and <=125% 22.1% 11.9% 5.6% 0.9%

>125% 20.7%

HARP Weighted Average Origination Loan-to-Value Ratio 111.0% 94.3% 92.2% 90.7%
6

Credit Characteristics of Single-Family Business Acquisitions under the Refi 

Plus Initiative

(1) Our Refi Plus initiative, under which we acquire HARP loans, started in April 2009. HARP loans have LTV ratios at origination in excess of 80%, while Other Refi-Plus loans have LTV 

ratios at origination of up to 80%. 

(2) FICO credit scores as reported by the seller of the mortgage loan at the time of delivery. 

2012 2011 2010 2009 2012 2011 2010 2009

Unpaid Principal Balance (billions) $129.9 $55.6 $59.0 $27.9 $73.8 $81.2 $80.5 $44.7

Weighted Average Origination Note Rate 4.14% 4.78% 5.00% 5.05% 3.89% 4.44% 4.68% 4.85%

Origination Loan-to-Value Ratio

 <= 80% 100.00% 100.00% 100.00% 100.00%

 >80% and <= 105% 57.2% 88.1% 94.4% 99.1%

 >105% and <= 125% 22.1% 11.9% 5.6% 0.9%

 >125% 20.7%

Weighted Average Origination Loan-to-Value Ratio 111.0% 94.3% 92.2% 90.7% 61.1% 60.2% 62.3% 63.3%

FICO Credit Scores (2)

 0 to < 620 3.7% 2.1% 2.0% 1.2% 2.9% 1.7% 1.4% 0.8%

 >= 620 and < 660 6.0% 3.8% 3.6% 2.5% 4.2% 2.8% 2.4% 1.7%

 >=660 and < 700 13.4% 11.6% 11.6% 9.6% 9.8% 8.8% 8.0% 6.7%

 >=700 and < 740 20.3% 21.0% 21.4% 22.3% 16.2% 16.7% 15.9% 16.3%

 >=740 56.6% 61.5% 61.2% 64.4% 66.9% 70.0% 72.3% 74.5%

Weighted Average FICO Credit Score 738 746 746 749 753 758 760 762

Product Distribution

Fixed-rate 99.3% 96.8% 97.2% 97.9% 98.9% 97.6% 97.3% 98.1%

Adjustable-rate 0.7% 3.2% 2.8% 2.1% 1.1% 2.4% 2.7% 1.9%

Owner Occupied 85.7% 86.3% 91.1% 95.2% 87.2% 89.2% 91.8% 93.5%

Second/Vacation Home 2.8% 3.6% 3.5% 3.3% 3.2% 3.6% 3.5% 4.2%

Investor 11.5% 10.1% 5.4% 1.6% 9.6% 7.3% 4.7% 2.3%

Condo/Co-op 10.9% 10.5% 10.1% 8.3% 7.6% 5.8% 6.0% 6.8%

HARP (1) Other Refi Plus (1)

Acquisition Year
7

(1) Loans with multiple product features are included in all applicable categories. The subtotal is calculated by counting a loan only once even if it is included in multiple categories.

(2) Excludes non-Fannie Mae securities held in portfolio and those Alt-A and subprime wraps for which Fannie Mae does not have loan-level information. Fannie Mae had access to 

detailed loan-level information for approximately 99% of its single-family conventional guaranty book of business as of December 31, 2012.

(3) FICO credit scores as reported by the seller of the mortgage loan at the time of delivery.

(4) Unpaid principal balance of all loans with credit enhancement as a percentage of unpaid principal balance of single-family conventional guaranty book of business for which Fannie 

Mae had access to loan level information. Includes primary mortgage insurance, pool insurance, lender recourse and other credit enhancement.

(5) Expressed as a percentage of credit losses for the single-family guaranty book of business. For information on total credit losses, refer to Fannie Mae’s 2012 Form 10-K.

As of December 31, 2012

Negative 

Amortizing 

Loans

Interest Only 

Loans 

Loans with 

FICO

< 620(3)

Loans with 

FICO ≥ 620 and 

< 660(3)

Loans with 

Origination 

LTV Ratio 

> 90%

Loans with 

FICO < 620 

and 

Origination 

LTV Ratio > 

90%(3)

Alt-A Loans Subprime 

Loans

Sub-total of 

Key Product 

Features(1)

Overall

Book

Unpaid Principal Balance (billions) (2) $7.6 $103.4 $79.5 $166.5 $354.2 $19.4 $155.5 $5.0 $724.7 $2,757.2

Share of Single-Family Conventional Guaranty Book 0.3% 3.7% 2.9% 6.0% 12.8% 0.7% 5.6% 0.2% 26.3% 100.0%

Average Unpaid Principal Balance (2) $105,071 $237,649 $119,373 $131,231 $166,546 $123,985 $155,094 $144,785 $153,689 $157,512

Serious Delinquency Rate 6.40% 14.30% 12.14% 9.22% 5.44% 14.76% 11.36% 20.60% 7.85% 3.29%

Origination Years 2005-2008 54.5% 80.3% 54.6% 49.4% 25.0% 51.1% 67.1% 85.4% 42.6% 21.7%

Weighted Average Origination Loan-to-Value Ratio 70.5% 74.4% 78.4% 78.0% 103.2% 102.5% 74.7% 77.0% 86.8% 73.0%

Origination Loan-to-Value Ratio > 90% 0.3% 8.3% 24.4% 21.5% 100.0% 100.0% 9.1% 6.6% 48.9% 12.8%

Weighted Average Mark-to-Market Loan-to-Value Ratio 89.5% 109.7% 88.3% 87.2% 106.5% 112.6% 95.7% 106.6% 96.4% 75.0%

Mark-to-Market Loan-to-Value Ratio > 100% and <= 125% 14.9% 26.0% 17.6% 16.2% 28.8% 32.3% 19.8% 23.7% 22.2% 8.3%

Mark-to-Market Loan-to-Value Ratio > 125% 27.5% 30.2% 12.9% 12.7% 16.8% 25.8% 20.0% 26.0% 15.2% 5.3%

Weighted Average FICO (3) 707 725 586 642 724 588 715 619 699 742

FICO < 620 (3) 6.7% 1.5% 100.0% 5.5% 100.0% 1.3% 50.7% 11.0% 2.9%

Fixed-rate 2.2% 27.9% 80.0% 82.4% 91.8% 81.0% 65.6% 64.0% 79.3% 90.1%

Primary Residence 68.5% 85.1% 96.2% 93.7% 92.9% 97.5% 77.4% 96.9% 89.7% 88.8%

Condo/Co-op 13.1% 15.8% 4.7% 6.4% 10.3% 5.7% 10.2% 4.1% 9.5% 9.4%

Credit Enhanced (4) 54.4% 15.3% 27.0% 24.7% 60.0% 73.4% 14.8% 56.9% 34.9% 14.1%

% of 2007 Credit Losses (5) 0.9% 15.0% 18.8% 21.9% 17.4% 6.4% 27.8% 1.0% 72.3% 100.0%

% of 2008 Credit Losses (5) 2.9% 34.2% 11.8% 17.4% 21.3% 5.4% 45.6% 2.0% 81.3% 100.0%

% of 2009 Credit Losses (5) 2.0% 32.6% 8.8% 15.5% 19.2% 3.4% 39.6% 1.5% 75.0% 100.0%

% of 2010 Credit Losses (5) 1.9% 28.6% 8.0% 15.1% 15.9% 2.7% 33.2% 1.1% 68.4% 100.0%

% of 2011 Credit Losses (5) 1.2% 25.8% 7.9% 14.7% 14.0% 2.2% 27.3% 0.6% 63.4% 100.0%

% of 2012 Credit Losses (5) 0.5% 21.8% 7.8% 14.2% 16.8% 2.3% 23.7% 1.1% 61.2% 100.0%

Categories Not Mutually Exclusive (1)

Credit Characteristics of Single-Family Conventional Guaranty Book of 

Business by Key Product Features 
8

Credit Characteristics of Single-Family Conventional Guaranty Book of 

Business by Origination Year 

(1) Excludes non-Fannie Mae securities held in portfolio and those Alt-A and subprime wraps for which Fannie Mae does not have loan-level information. Fannie Mae had access to detailed 

loan-level information for approximately 99% of its single-family conventional guaranty book of business as of December 31, 2012.

(2) The increase after 2009 is the result of HARP loans, which we began acquiring in April 2009, and which involve the refinance of existing Fannie Mae loans that can have loan-to-value ratios 

in excess of 100%.

(3) FICO credit scores as reported by the seller of the mortgage loan at the time of delivery.

(4) Unpaid principal balance of all loans with credit enhancement as a percentage of unpaid principal balance of single-family conventional guaranty book of business for which Fannie Mae has 

access to loan-level information. Includes primary mortgage insurance, pool insurance, lender recourse and other credit enhancement.

(5) Expressed as a percentage of credit losses for the single-family guaranty book of business. For information on total credit losses, refer to Fannie Mae’s 2012 Form 10-K.

(6) Defaults include loan liquidations other than through voluntary pay-off or repurchase by lenders and include loan foreclosures, short sales, sales to third parties and deeds in lieu of 

foreclosure. Cumulative Default Rate is the total number of single-family conventional loans in the guaranty book of business originated in the identified year that have defaulted, divided by 

the total number of single-family conventional loans in the guaranty book of business originated in the identified year. For 2002 to 2004 cumulative default rates, refer to slide 16.

As of December 31, 2012 Overall

Book 2012 2011 2010 2009 2008 2007 2006 2005 2004 andEarlier

Unpaid Principal Balance (billions) (1) $2,757.2 $717.7 $405.9 $375.5 $300.8 $124.7 $195.3 $138.0 $139.2 $360.0

Share of Single-Family Conventional Guaranty Book 100.0% 26.0% 14.7% 13.6% 10.9% 4.5% 7.1% 5.0% 5.0% 13.1%

Average Unpaid Principal Balance (1) $157,512 $207,941 $185,520 $184,553 $177,580 $161,753 $167,726 $152,542 $136,803 $84,144

Serious Delinquency Rate 3.29% 0.04% 0.22% 0.48% 0.88% 6.63% 12.99% 12.15% 7.79% 3.61%

Weighted Average Origination Loan-to-Value Ratio 73.0% 75.5% 70.9% 70.6% 69.3% 75.0% 78.4% 75.4% 73.4% 71.2%

Origination Loan-to-Value Ratio > 90% (2) 12.8% 18.0% 11.8% 9.4% 5.9% 13.0% 21.1% 12.7% 9.7% 9.9%

Weighted Average Mark-to-Market Loan-to-Value Ratio 75.0% 73.6% 67.4% 68.7% 70.4% 88.0% 106.9% 105.1% 89.8% 58.2%

Mark-to-Market Loan-to-Value Ratio > 100% and <= 125% 8.3% 5.2% 2.6% 3.6% 4.5% 21.4% 27.0% 23.6% 18.2% 4.6%

Mark-to-Market Loan-to-Value Ratio > 125% 5.3% 3.4% 0.1% 0.3% 0.3% 7.9% 24.9% 25.1% 13.6% 2.0%

Weighted Average FICO (3) 742 760 759 759 756 723 699 702 711 712

FICO < 620 (3) 2.9% 0.9% 0.6% 0.6% 0.6% 4.4% 9.7% 7.8% 5.9% 6.5%

Interest Only 3.7% 0.3% 0.6% 1.0% 1.0% 6.8% 16.7% 18.5% 11.8% 2.4%

Negative Amortizing 0.3% 0.1% 1.3% 1.5% 1.0%

Fixed-rate 90.1% 97.0% 93.9% 94.9% 97.1% 82.7% 73.6% 72.1% 74.7% 85.3%

Primary Residence 88.8% 88.8% 87.6% 89.8% 91.1% 86.4% 88.3% 86.4% 86.5% 90.1%

Condo/Co-op 9.4% 9.1% 9.0% 8.8% 9.2% 12.1% 10.9% 11.5% 11.0% 8.0%

Credit Enhanced (4) 14.1% 14.4% 10.6% 7.7% 7.4% 27.5% 31.4% 21.0% 16.2% 12.0%

% of 2007 Credit Losses (5) 100.0% 1.9% 21.3% 23.6% 53.2%

% of 2008 Credit Losses (5) 100.0% 0.5% 27.9% 34.9% 19.3% 17.3%

% of 2009 Credit Losses (5) 100.0% 4.8% 36.0% 30.9% 16.4% 11.9%

% of 2010 Credit Losses (5) 100.0% 0.4% 7.0% 35.8% 29.2% 15.9% 11.7%

% of 2011 Credit Losses (5) 100.0% 0.7% 1.6% 5.7% 30.3% 27.7% 19.2% 14.8%

% of 2012 Credit Losses (5) 100.0% 0.1% 0.6% 1.9% 2.5% 7.7% 31.5% 26.3% 16.3% 13.1%

Cumulative Default Rate (6) 0.0% 0.1% 0.2% 0.4% 3.4% 11.1% 10.3% 6.2%

Origination Year
9

Credit Characteristics of Single-Family Conventional Guaranty Book of 

Business by State 

(1) Select Midwest states are Illinois, Indiana, Michigan, and Ohio.

(2) Excludes non-Fannie Mae securities held in portfolio and those Alt-A and subprime wraps for which Fannie Mae does not have loan-level information. Fannie Mae had access to 

detailed loan-level information for approximately 99% of its single-family conventional guaranty book of business as of December 31, 2012.

(3) FICO credit scores as reported by the seller of the mortgage loan at the time of delivery.

(4) Unpaid principal balance of all loans with credit enhancement as a percentage of unpaid principal balance of single-family conventional guaranty book of business for which Fannie 

Mae has access to loan-level information. Includes primary mortgage insurance, pool insurance, lender recourse and other credit enhancement.

(5) Expressed as a percentage of credit losses for the single-family guaranty book of business. For information on total credit losses, refer to Fannie Mae’s 2012 Form 10-K.

As of December 31, 2012 Overall

Book AZ CA FL NV

Select 

Midwest 

States (1)

Unpaid Principal Balance (billions)(2) $2,757.2 $65.3 $523.6 $165.4 $27.2 $278.5

Share of Single-Family Conventional Guaranty Book 100.0% 2.4% 19.0% 6.0% 1.0% 10.1%

Average Unpaid Principal Balance (2) $157,512 $148,075 $222,360 $138,309 $155,971 $122,927

Serious Delinquency Rate 3.29% 2.14% 1.69% 10.06% 6.70% 3.51%

Origination Years 2005-2008 21.7% 28.8% 17.5% 41.1% 37.0% 20.5%

Weighted Average Origination Loan-to-Value Ratio 73.0% 80.9% 67.4% 77.7% 83.7% 77.0%

Origination Loan-to-Value Ratio > 90% 12.8% 21.6% 8.3% 17.1% 20.4% 17.4%

Weighted Average Mark-to-Market Loan-to-Value Ratio 75.0% 87.7% 72.9% 96.2% 116.7% 81.4%

Mark-to-Market Loan-to-Value Ratio >100% and <=125% 8.3% 16.2% 7.8% 15.8% 14.0% 12.4%

Mark-to-Market Loan-to-Value Ratio >125% 5.3% 14.5% 7.5% 23.4% 39.1% 6.4%

Weighted Average FICO (3) 742 743 751 728 737 737

FICO < 620 (3) 2.9% 2.4% 1.6% 4.6% 2.5% 3.8%

Interest Only 3.7% 7.1% 5.4% 7.4% 11.0% 2.4%

Negative Amortizing 0.3% 0.3% 0.8% 0.7% 0.9% 0.1%

Fixed-rate 90.1% 85.8% 87.9% 84.1% 79.5% 89.8%

Primary Residence 88.8% 79.9% 86.0% 81.9% 76.9% 92.9%

Condo/Co-op 9.4% 4.3% 12.2% 13.6% 5.6% 11.1%

Credit Enhanced (4) 14.1% 13.6% 6.5% 14.4% 13.4% 17.8%

% of 2007 Credit Losses (5) 100.0% 1.8% 7.2% 4.7% 1.2% 46.6%

% of 2008 Credit Losses (5) 100.0% 8.0% 25.2% 10.9% 4.9% 21.1%

% of 2009 Credit Losses (5) 100.0% 10.8% 24.4% 15.5% 6.5% 14.8%

% of 2010 Credit Losses (5) 100.0% 10.0% 22.6% 17.5% 6.1% 13.6%

% of 2011 Credit Losses (5) 100.0% 11.7% 27.0% 11.0% 7.9% 12.0%

% of 2012 Credit Losses (5) 100.0% 6.3% 18.4% 21.4% 4.8% 18.7%
10

Credit Characteristics Single-Family Conventional Guaranty Book of 

Business of Alt-A by Origination Year

(1) In reporting our Alt-A exposure, we have classified mortgage loans as Alt-A if and only if the lenders that deliver the mortgage loans to us have classified the loans as Alt-A based on 

documentation or other product features. We have loans with some features that are similar to Alt-A mortgage loans that we have not classified as Alt-A because they do not meet our 

classification criteria. 

(2) Newly originated Alt-A loans acquired after 2008 consist of the refinance of existing loans under our Refi Plus initiative.

(3) Excludes non-Fannie Mae securities held in portfolio and those Alt-A and subprime wraps for which Fannie Mae does not have loan-level information. Fannie Mae had access to 

detailed loan-level information for approximately 99% of its single-family conventional guaranty book of business as of December 31, 2012.

(4) The increase after 2008 is the result of our Refi Plus loans, which we began acquiring in April 2009 and which involve the refinance of existing Fannie Mae loans that can have loan-tovalue ratios in excess of 100%.

(5) FICO credit scores as reported by the seller of the mortgage loan at the time of delivery.

(6) Defined as unpaid principal balance of Alt-A loans with credit enhancement as a percentage of unpaid principal balance of all Alt-A loans. At December 31, 2012, 9.4% of unpaid 

principal balance of Alt-A loans carried only primary mortgage insurance (no deductible), 4.2% had only pool insurance (which is generally subject to a deductible), 0.8% had primary 

mortgage insurance and pool insurance, and 0.4% carried other credit enhancement such as lender recourse. 

(7) Expressed as a percentage of credit losses for the single-family guaranty book of business. For information on total credit losses, refer to Fannie Mae’s 2012 Form 10-K.

(8) Defaults include loan liquidations other than through voluntary pay-off or repurchase by lenders and includes loan foreclosures, short sales, sales to third parties and deeds in lieu of 

foreclosure. Cumulative Default Rate is the total number of single-family conventional loans in the guaranty book of business originated in the identified year that have defaulted, divided 

by the total number of single-family conventional loans in the guaranty book of business originated in the identified year.

As of December 31, 2012 Alt-A (1) 2012(2) 2011 (2) 2010 (2) 2009 (2) 2008 2007 2006 2005 2004 and

Earlier

Unpaid principal balance (billions) (3) $155.5 $6.5 $6.6 $3.7 $1.3 $3.5 $35.9 $38.2 $26.7 $33.0

Share of Alt-A 100.0% 4.2% 4.3% 2.4% 0.8% 2.3% 23.1% 24.6% 17.2% 21.2%

Weighted Average Origination Loan-to-Value Ratio 74.7% 99.1% 74.5% 79.5% 75.8% 68.6% 75.1% 74.3% 73.0% 71.5%

Origination Loan-to-Value Ratio > 90% (4) 9.1% 53.7% 25.3% 29.2% 21.6% 2.6% 8.5% 4.9% 3.4% 5.1%

Weighted Average Mark-to-Market Loan-to-Value Ratio 95.7% 96.8% 71.8% 80.2% 79.6% 85.0% 111.3% 111.6% 98.4% 66.1%

Mark-to-Market Loan-to-Value Ratio > 100% and <=125% 19.8% 20.7% 10.3% 14.5% 15.6% 18.5% 26.6% 24.9% 21.5% 7.5%

Mark-to-Market Loan-to-Value Ratio > 125% 20.0% 19.4% 0.5% 0.7% 1.3% 8.0% 30.0% 31.2% 20.3% 4.0%

Weighted Average FICO (5) 715 721 742 732 733 722 708 710 720 716

FICO < 620 (5) 1.3% 7.4% 2.9% 3.4% 3.9% 0.3% 0.6% 0.6% 0.5% 1.6%

Adjustable-rate 34.4% 0.8% 2.6% 4.3% 3.7% 24.6% 37.0% 41.6% 46.7% 32.0%

Interest Only 26.6% 0.1% 7.4% 37.4% 38.0% 30.8% 15.0%

Negative Amortizing 2.6% 3.9% 6.1% 2.5%

Investor 18.2% 28.8% 24.2% 12.3% 5.4% 18.6% 18.5% 16.3% 19.6% 16.6%

Condo/Co-op 10.2% 10.9% 7.2% 9.3% 8.8% 6.7% 8.9% 10.9% 12.8% 9.8%

California 20.9% 24.1% 26.1% 19.1% 14.9% 20.0% 20.8% 18.3% 19.6% 23.8%

Florida 11.7% 10.9% 4.0% 3.5% 3.4% 9.7% 13.1% 13.9% 13.6% 9.3%

Credit Enhanced (6) 14.8% 7.8% 2.2% 2.3% 1.5% 13.9% 16.4% 15.0% 14.3% 19.2%

Serious Delinquency Rate at 12/31/11 12.43% 0.21% 2.11% 4.25% 10.70% 18.46% 17.55% 12.19% 6.65%

Serious Delinquency Rate at 12/31/12 11.36% 0.21% 1.05% 3.30% 4.89% 10.71% 17.41% 16.59% 11.76% 6.74%

% of 2007 Credit Losses (7) 27.8% 0.7% 9.8% 9.7% 7.7%

% of 2008 Credit Losses (7) 45.6% 0.0% 12.4% 20.1% 9.7% 3.4%

% of 2009 Credit Losses (7) 39.6% 0.4% 13.4% 15.8% 7.3% 2.6%

% of 2010 Credit Losses (7) 33.2% 0.0% 0.0% 0.5% 11.8% 12.8% 5.7% 2.3%

% of 2011 Credit Losses (7) 27.3% 0.1% 0.1% 0.3% 8.5% 10.1% 5.9% 2.5%

% of 2012 Credit Losses (7) 23.7% 0.0% 0.0% 0.1% 0.1% 0.3% 7.9% 8.9% 4.3% 1.9%

Cumulative Default Rate (8) 0.0% 0.2% 1.9% 3.0% 8.8% 20.3% 18.9% 12.1%
11

Credit Characteristics of Single-Family Conventional Guaranty Book of 

Business under the Refi Plus Initiative 

(1) Our Refi Plus initiative, under which we acquire HARP loans, started in April 2009. HARP loans have LTV ratios at origination in excess of 80%, while Other Refi Plus loans have 

LTV ratios at origination of up to 80%. 

(2) FICO credit scores as reported by the seller of the mortgage loan at the time of delivery. 2012 2011 2010 2009 2012 2011 2010 2009

Unpaid Principal Balance (billions) $119.8 $51.3 $50.1 $24.2 $64.1 $64.8 $56.1 $25.8

Share of Single-Family Conventional Guaranty Book 4.3% 1.9% 1.8% 0.9% 2.3% 2.4% 2.0% 0.9%

Average Unpaid Principal Balance $199,811 $209,065 $222,464 $229,861 $149,657 $155,043 $166,759 $170,607

Share of Total Refinances 6.0% 2.6% 2.5% 1.2% 3.2% 3.3% 2.8% 1.3%

Weighted Average Origination Loan-to-Value Ratio 112.2% 94.7% 92.8% 91.3% 61.2% 60.5% 62.8% 64.8%

Origination Loan-to-Value Ratio > 90% 77.5% 57.8% 52.5% 47.8%

Weighted Average Mark-to-Market Loan-to-Value Ratio 108.9% 91.3% 93.2% 95.9% 59.5% 57.3% 60.7% 65.3%

Weighted Average FICO (2) 738 745 744 746 751 756 757 755

FICO < 620 (2) 3.8% 2.2% 2.1% 1.5% 3.1% 1.9% 1.6% 1.4%

Fixed-rate 99.4% 97.0% 97.4% 97.7% 99.0% 97.6% 97.5% 98.0%

Primary Residence 85.4% 86.1% 90.5% 94.6% 86.9% 88.4% 90.8% 92.2%

Second/Vacation Home 2.8% 3.5% 3.5% 3.2% 3.2% 3.6% 3.6% 4.6%

Investor 11.8% 10.5% 6.1% 2.1% 9.9% 8.0% 5.6% 3.2%

Condo/Co-op 11.0% 10.5% 10.1% 8.5% 7.8% 5.9% 6.2% 7.4%

Serious Delinquency Rate

 Overall Serious Delinquency Rate 0.13% 0.99% 2.02% 3.02% 0.04% 0.24% 0.53% 0.98%

 Serious Delinquency Rate by MTMLTV Ratio:

 <=80% 0.08% 0.28% 0.44% 0.58% 0.04% 0.22% 0.42% 0.70%

 80% and <=105% 0.10% 0.98% 1.77% 2.44% 0.18% 1.21% 1.93% 2.41%

 105% and <=125% 0.15% 2.01% 4.35% 5.80% 3.57% 4.61% 3.86%

 >125% 0.21% 2.94% 6.62% 8.89% 10.00% 6.90% 7.29%

Mark-to-Market Loan-to-Value Ratio

 <=80% 4.1% 14.4% 10.9% 7.7% 98.8% 97.6% 91.1% 80.1%

 80% and <=105% 53.7% 73.2% 74.1% 71.8% 1.2% 2.4% 8.8% 19.6%

 105% and <=125% 21.8% 11.5% 13.3% 18.4% 0.0% 0.0% 0.0% 0.3%

 >125% 20.4% 0.9% 1.7% 2.2% 0.0% 0.0% 0.1%

HARP (1) Other Refi Plus (1)

As of December 31, 2012

Origination Year
12

Serious Delinquency Rates of Single-Family Conventional Guaranty Book of 

Business(1) by State and Region 

(1) Calculated based on the number of loans in Fannie Mae’s single-family conventional guaranty book of business within each specified category.

(2) Select Midwest states are Illinois, Indiana, Michigan, and Ohio. 

(3) For information on which states are included in each region, refer to footnote 9 to Table 41 in Fannie Mae’s 2012 Form 10-K.

0 %

1 %

2 %

3 %

4 %

5 %

6 %

7 %

8 %

2009 Q4 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4

Serious Delinquency Rate by Region (3)

Midwest Northeast Southeast Southwest West

0%

2%

4%

6%

8%

10%

12%

14%

16%

2009 Q4 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4

Serious Delinquency Rate by States 

A Z CA FL NV Select Midwest States All

(2)
13

Single-Family Completed Workouts by Type 

 Modifications involve changes to the original mortgage loan terms, which may include a change to the product type, interest rate, amortization term, maturity date 

and/or unpaid principal balance. Modifications include both completed modifications under the Administration’s Home Affordable Modification Program (HAMP) 

and completed non-HAMP modifications, and do not reflect loans currently in trial modifications.

 Repayment plans involve plans to repay past due principal and interest over a reasonable period of time through temporarily higher monthly payments. Loans with 

completed repayment plans are included for loans that were at least 60 days delinquent at initiation.

 Forbearances involve an agreement to suspend or reduce borrower payments for a period of time. Loans with forbearance plans are included for loans that were 

at least 90 days delinquent at initiation. 

 Deeds-in-lieu of foreclosure involve the borrower’s voluntarily signing over title to the property.

 In a short sale, the borrower, working with the servicer, sells the home prior to foreclosure to pay off all or part of the outstanding loan, accrued interest and other 

expenses from the sale proceeds.

82,684

77,748

65,239

69,258

63,228

0

25,000

50,000

75,000

100,000

2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 Number of Loans

Modifications Repayment Plans and Forbearances Completed Short Sales and Deeds-i n-Lieu
14

Single-Family Loan Modifications by Monthly Payment Change and Type

Change in Monthly Principal and Interest Payment

of Modified Single-Family Loans(1)(2)

(1) Excludes loans that were classified as subprime adjustable rate mortgages that were modified into fixed rate mortgages and were current at the time of 

modification. Modifications include permanent modifications, but do not reflect loans currently in trial modifications. 

(2) Represents the change in the monthly principal and interest payment at the effective date of the modification. The monthly principal and interest payment on 

modified loans may vary, and may increase, during the remaining life of the loan.

Modification Type of Single-Family Loans(1)(2)

0 %

20%

40%

60%

80%

100%

Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012

Decrease of greater than 30% of Principal and Interest Payment

Decrease of greater than 20% but less than or equal to 30% of Principal and Interest Payment

Decrease of less than or equal to 20% of Principal and Interest Payment

No Change in Principal and Interest Payment

Increase in Principal and Interest Payment

0 %

20%

40%

60%

80%

100%

Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012

Capitalization of Missed Payments and Other

Extend Term, Reduce Rate and Forbear Principal 

Extend Term and Reduce Rate 

Extend Term Only 

Reduce Rate Only 
15

Re-performance Rates of Modified Single-Family Loans(1)

(1) Excludes loans that were classified as subprime adjustable rate mortgages that were modified into fixed rate mortgages. Modifications include permanent modifications, but do not 

reflect loans currently in trial modifications. 

2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

3 Months post modification 80% 79% 78% 81% 84% 84% 83% 84% 85% 84% 84%

6 months post modification 71% 73% 75% 77% 78% 79% 79% 79% 78% 77% n/a

9 months post modification 65% 71% 73% 72% 75% 77% 76% 74% 73% n/a n/a

12 Months post modification 65% 70% 70% 69% 74% 75% 72% 71% n/a n/a n/a

15 months post modification 63% 66% 67% 68% 73% 72% 70% n/a n/a n/a n/a

18 Months post modification 60% 65% 67% 68% 71% 71% n/a n/a n/a n/a n/a

21 Months post modification 59% 65% 67% 66% 70% n/a n/a n/a n/a n/a n/a

24 Months post modification 60% 65% 65% 65% n/a n/a n/a n/a n/a n/a n/a

% Current or Paid Off
16

Note: Defaults include loan liquidations other than through voluntary pay-off or repurchase by lenders and include loan foreclosures, short sales, sales to third parties and deeds-in-lieu of 

foreclosure. Cumulative Default Rate is the total number of single-family conventional loans in the guaranty book of business originated in the identified year that have defaulted, divided by 

the total number of single-family conventional loans in the guaranty book of business originated in the identified year.

Data as of December 31, 2012 are not necessarily indicative of the ultimate performance of the loans and performance is likely to change, perhaps materially, in future periods.

Cumulative Default Rates of Single-Family Conventional Guaranty Book of 

Business by Origination Year 

2003 2002

2004

2005

2006

2007

2008

2009 2012 2011 2010

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%

6.5%

7.0%

7.5%

8.0%

8.5%

9.0%

9.5%

10.0%

10.5%

11.0%

11.5%

12.0%

Yr1-Q 1 Yr2-Q 1 Yr3-Q 1 Yr4-Q 1 Yr5-Q 1 Yr6-Q 1 Yr7-Q 1 Yr8-Q 1 Yr9-Q 1 Yr10-Q 1 Yr11-Q 1 Cumulative Default Rate 

Time Since Beginning of Origination Year

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
17

Single-Family Real Estate Owned (REO) in Selected States

(1) Select Midwest States are Illinois, Indiana, Michigan, and Ohio.

(2) Measured from the last monthly period for which the borrowers fully paid their mortgages to when the related properties were added to our REO inventory for foreclosures 

completed during full year 2012.

(3) Fannie Mae incurs additional costs associated with property taxes, hazard insurance, and legal fees while a delinquent loan remains in the foreclosure process. 

Additionally, the longer a loan remains in the foreclosure process, the longer it remains in our guaranty book of business as a seriously delinquent loan. The average 

number of days from last paid installment to foreclosure for all states combined were 327, 325, 407, 479, 529, and 655 in each of the years 2007 through 2012, 

respectively. 

(4) Home Equity Conversion Mortgage (HECMs) excluded from calculation.

2012 2011 2010 2009 2008 2007

Beginning Balance N/A 118,528 162,489 86,155 63,538 33,729 25,125 N/A N/A 

Arizona 394 8,133 16,172 20,691 12,854 5,532 751 3,497 4,385

California 516 14,980 27,589 34,051 19,565 10,624 1,681 8,909 14,147

Florida 1,062 23,586 13,748 29,628 13,282 6,159 1,714 13,838 8,677

Nevada 612 3,014 8,406 9,418 6,075 2,906 530 1,379 2,833

Select Midwest States (1) 688 40,070 33,777 45,411 28,464 23,668 16,678 29,148 29,614

All other States 574 84,696 100,004 122,879 65,377 45,763 27,767 48,895 58,872

Total Acquisitions N/A 174,479 199,696 262,078 145,617 94,652 49,121 N/A N/A

Total Dispositions N/A (187,341) (243,657) (185,744) (123,000) (64,843) (40,517) N/A N/A

Ending Inventory N/A 105,666 118,528 162,489 86,155 63,538 33,729 N/A N/A

State

REO Inventory 

as of 

December 31, 

2012

REO Inventory 

as of 

December 31, 

2011

REO Acquisitions and Dispositions (Number of Properties) Average Days 

From Last 

Paid 

Installment to 

Foreclosure 

For Full Year 

2012 (2) (3) (4)
18

Single-Family Real Estate Owned (REO) Sales Price / UPB of Mortgage Loans(1)

Net Sales Proceeds/UPB Trends on Direct Sale Dispositions(1) Top 10 States (Based on 2012 Volume of REO Properties Sold) 

(1) Calculated as the sum of sale proceeds received on REO properties that have been sold to a third party, excluding properties repurchased by the seller/servicer, acquired by a 

mortgage insurance company, redeemed by a borrower, and properties sold through the FHFA Rental Pilot, divided by the aggregate unpaid principal balance (UPB) of the related 

loans. Gross sales price represents the contract sale price. Net Sales Price represents the contract sale price less selling costs for the property and adjusted for other 

charges/credits paid by or due to the seller at closing.

Note: Properties disposed of in the third and fourth quarters of 2012 through structured rental transactions have been excluded from the Net/Gross Proceeds to UPB calculations.

62%

59%

60%

62% 61%

64%

62%

61%

59%

60% 60%

61%

62%

65%

67%

68%

55%

52%

53%

55% 55%

57%

56%

54%

53%

54% 54%

55%

56%

59%

61%

62%

50%

55%

60%

65%

70%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2009 2010 2011 2012

Gross Sales/ UPB Net Sales/ UPB

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

CA 51.7% 47.8% 49.3% 52.9% 53.7% 56.2% 55.9% 53.3% 53.1% 53.5% 53.1% 54.7% 55.4% 58.8% 63.2% 67.6%

FL 45.6% 41.6% 41.3% 42.6% 41.8% 43.2% 42.0% 41.7% 41.3% 43.8% 44.7% 46.3% 47.6% 51.0% 53.3% 55.8%

MI 41.6% 41.9% 42.0% 44.8% 41.2% 44.5% 43.3% 44.5% 41.6% 42.6% 44.0% 45.1% 46.3% 49.2% 51.8% 51.9%

GA 53.3% 52.6% 54.4% 57.3% 56.0% 58.8% 56.7% 54.9% 54.3% 54.9% 53.7% 54.0% 54.2% 57.3% 60.0% 63.2%

IL 52.2% 47.9% 44.0% 42.9% 43.9% 45.8% 41.4% 39.3% 39.2% 43.3% 42.2% 42.0% 41.1% 44.3% 45.9% 47.7%

OH 46.2% 50.4% 51.8% 50.8% 49.0% 52.9% 47.5% 49.6% 45.2% 49.3% 47.2% 47.1% 46.3% 49.9% 53.7% 52.5%

A Z 51.5% 47.8% 50.1% 52.1% 50.6% 52.1% 51.0% 46.2% 45.0% 47.0% 48.6% 51.7% 54.5% 60.9% 65.3% 67.5%

TX 71.6% 70.3% 72.7% 73.8% 75.5% 77.9% 74.7% 71.4% 73.8% 74.2% 74.4% 73.5% 76.2% 78.9% 78.2% 79.8%

NC 68.0% 67.0% 71.9% 72.9% 69.8% 71.5% 66.1% 65.9% 66.1% 67.5% 64.6% 65.6% 66.1% 68.2% 68.6% 71.0%

IN 48.5% 49.5% 51.7% 53.1% 48.0% 53.5% 50.0% 51.6% 52.0% 56.2% 54.8% 53.5% 53.1% 56.5% 57.6% 57.3%

Top 10 51.2% 48.5% 49.5% 51.6% 50.9% 53.5% 52.0% 50.9% 49.4% 51.1% 51.4% 52.8% 53.3% 56.4% 59.0% 60.8%

All Others 62.0% 60.3% 61.1% 62.4% 62.1% 64.0% 61.8% 59.5% 58.9% 59.6% 58.5% 59.2% 60.5% 63.4% 64.6% 65.0%

Total 55.1% 52.4% 53.4% 55.3% 55.0% 57.3% 55.6% 54.1% 52.8% 54.1% 54.0% 55.4% 56.3% 59.2% 61.1% 62.3%

2009 2010 2011 2012
19

Multifamily Credit Profile by Loan Attributes

(1) We classify multifamily loans as seriously delinquent when payment is 60 days or more past due.

(2) Excludes loans that have been defeased. Defeasance is prepayment of a loan through substitution of collateral.

(3) Weighted Average Origination loan-to-value ratio is 66% as of December 31, 2012.

(4) Under the Delegated Underwriting and Servicing, or DUS ®, product line, Fannie Mae acquires individual, newly originated mortgages from specially approved DUS lenders 

using DUS underwriting standards and/or DUS loan documents. Because DUS lenders generally share the risk of loss with Fannie Mae, they are able to originate, 

underwrite, close and service most loans without our pre-review. 

(5) Multifamily loans under $3 million and up to $5 million in high cost of living areas.

Total Multifamily Guaranty Book of Business(2) 38,881 $204.1 100% 0.24% 100% 100% 100%

Credit Enhanced Loans: 

Credit Enhanced 34,939 $184.2 90% 0.22% 73% 83% 68%

Non-Credit Enhanced 3,942 $20.0 10% 0.42% 27% 17% 32%

Origination loan-to-value ratio:(3) 

Less than or equal to 70% 25,037 $114.6 56% 0.10% 14% 18% 8%

Greater than 70% and less than or equal to 80% 11,125 $82.0 40% 0.43% 71% 70% 89%

Greater than 80% 2,719 $7.5 4% 0.36% 15% 12% 3%

Delegated Underwriting and Servicing (DUS ®) Loans:(4)

DUS ® - Small Balance Loans(5) 8,568 $16.4 8% 0.32% 7% 9% 7%

DUS ® - Non Small Balance Loans 12,100 $154.5 76% 0.17% 71% 72% 61%

DUS ® - Total 20,668 $170.9 84% 0.18% 78% 81% 68%

Non-DUS - Small Balance Loans(5) 17,130 $14.0 7% 1.02% 16% 12% 10%

Non-DUS - Non Small Balance Loans 1,083 $19.2 9% 0.21% 6% 7% 22%

Non-DUS - Total 18,213 $33.3 16% 0.55% 22% 19% 32%

Maturity Dates:

Loans maturing in 2013 2,215 $12.5 6% 0.27% 2% 7% 10%

Loans maturing in 2014 2,286 $14.3 7% 0.31% 12% 5% 11%

Loans maturing in 2015 2,960 $15.2 7% 0.29% 8% 6% 4%

Loans maturing in 2016 2,952 $15.4 8% 0.47% 12% 8% 14%

Loans maturing in 2017 4,108 $21.7 11% 0.34%

Other maturities 24,360 $125.1 61% 0.18% 67% 75% 60%

Loan Size Distribution:

Less than or equal to $750K 10,555 $3.2 2% 0.99% 5% 5% 2%

Greater than $750K and less than or equal to $3M 13,767 $20.5 10% 0.74% 17% 16% 16%

Greater than $3M and less than or equal to $5M 4,798 $17.5 9% 0.29% 12% 11% 17%

Greater than $5M and less than or equal to $25M 8,510 $86.9 43% 0.30% 55% 50% 48%

Greater than $25M 1,251 $76.0 37% 11% 18% 17%

% of 2010 

Multifamily Credit 

Losses

% of 2011 

Multifamily Credit 

Losses

% of 2012 

Multifamily Credit 

Losses

As of December 31, 2012 Unpaid Principal 

Balance (Billions)

% of Multifamily 

Guaranty Book of 

Business (UPB)

% Seriously 

Delinquent Loan Counts (1)
20

(1) We classify multifamily loans as seriously delinquent when payment is 60 days or more past due.

(2) Negative values are the result of recoveries on previously charged-off amounts. 

(3) Excludes loans that have been defeased. Defeasance is prepayment of a loan through substitution of collateral.

Multifamily Credit Profile by Acquisition Year

Multifamily SDQ Rate by Acquisition Year Cumulative Defaults by Acquisition Year

2010

2009

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

Year1 Year2 Year3 Year4 Year5 Year6 Year7 Year8 Cumulative Default Rate 

2005 2006 2007 2008 2009 2010 2011 2012

2005

2007

2008

2006

2012 2011

2005

2006

2007

2008

2009

2011 2010 2012

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

Year1 Year2 Year3 Year4 Year5 Year6 Year7 Year8 SDQ (%) 

2005 2006 2007 2008 2009 2010 2011 2012

As of December 31, 2012 Unpaid Principal 

Balance (Billions) 

% of Multifamily 

Guaranty Book of 

Business (UPB)

% Seriously 

Delinquent (1)

# of Seriously 

Delinquent 

loans (1)

% of 2012 

Multifamily 

Credit Losses (2)

% of 2011 

Multifamily 

Credit Losses

% of 2010 

Multifamily 

Credit Losses

Total Multifamily Guaranty 

Book of Business (3) $204.1 100% 0.24% 226 100% 100% 100%

By Acquisition Year: 

2012 $33.8 17%

2011 $23.6 12% 0.01% 1 0%

2010 $16.9 8% 0%

2009 $17.1 8% 0.26% 6 7% 6% 2%

2008 $27.0 13% 0.36% 66 23% 31% 17%

2007 $34.0 17% 0.46% 82 48% 33% 38%

2006 $15.6 8% 0.51% 18 10% 7% 17%

2005 $12.8 6% 0.17% 13 17% 3% 2%

Prior to 2005 $23.3 11% 0.41% 40 -4% 20% 25%
21

Multifamily Credit Profile

(1) We classify multifamily loans as seriously delinquent when payment is 60 days or more past due.

(2) Excludes loans that have been defeased. Defeasance is prepayment of a loan through substitution of collateral.

(3) For information on which states are included in each region, refer to Fannie Mae’s 2012 Form 10-K.

(4) Asset Class Definitions: Conventional/Co-Op Housing: Privately owned multifamily properties or multifamily properties in which the residents collectively own the property 

through their shares in the cooperative corporation. Seniors Housing: Multifamily rental properties for senior citizens. Manufactured Housing: A residential real estate 

development consisting of housing sites for manufactured homes, related amenities, utility services, landscaping, roads and other infrastructure. Student Housing: Multifamily 

rental properties in which 80% or more of the units are leased to undergraduate and/or graduate students. 

(5) The Multifamily Affordable Business Channel focuses on financing properties which are under a regulatory agreement that provides long-term affordability, such as properties 

with rent subsidies or income restrictions.

Total Multifamily Guaranty Book of Business (2) $204.1 100% 0.24% 100% 100% 100%

Region: (3) 

Midwest $17.1 8% 0.43% 15% 23% 10%

Northeast $43.5 21% 0.32% 10% 3% 5%

Southeast $42.4 21% 0.26% 53% 42% 40%

Southwest $36.0 18% 0.20% 8% 26% 40%

Western $65.1 32% 0.15% 14% 6% 6%

Top Five States by UPB:

California $50.9 25% 0.07% 1% 1% 2%

New York $25.8 13% 0.18% 3% 0% 1%

Texas $18.0 9% 0.19% 2% 19% 12%

Florida $10.4 5% 0.41% 36% 10% 13%

Virginia $7.9 4% 0.10% 0% 0% 0%

Asset Class: (4)

Conventional/Co-op $181.5 89% 0.27% 94% 96% 99%

Seniors Housing $14.4 7% 0.09%

Manufactured Housing $5.3 3% 0.01% 3% 0% 0%

Student Housing $2.9 1% 0.03% 3% 4% 1%

Targeted Affordable Segment:

Privately Owned with Subsidy (5) $28.9 14% 0.16% 3% 14% 6%

DUS & Non-DUS Lenders/Servicers:

DUS: Bank (Direct, Owned Entity, or Subsidiary) $77.0 38% 0.19% 21% 29% 45%

DUS: Non-Bank Financial Institution $112.9 55% 0.24% 70% 68% 50%

Non-DUS: Bank (Direct, Owned Entity, or Subsidiary) $12.9 6% 0.61% 6% 1% 4%

Non-DUS: Non-Bank Financial Institution $1.2 1% 0.14% 2% 1% 1%

Non-DUS: Public Agency/Non Profit $0.2 0% 0% 0% 0%

% of 2010 

Multifamily 

Credit Losses

As of December 31, 2012

% of Multifamily 

Guaranty Book of 

Business (UPB)

% Seriously 

Delinquent (1)

% of 2011 

Multifamily 

Credit Losses

Unpaid 

Principal 

Balance 

(Billions)

% of 2012 

Multifamily 

Credit Losses
22

Example: 

UPB in NY is $25.8B 

and 2012 Credit 

Losses are $7M

Numbers: Represent 2012 credit losses for each state which total $257M as of December 31, 2012. States with no numbers had less than $500K in credit related income in 2012.

Shading: Represent Unpaid Principal Balance (UPB) for each state which total $204.1B as of December 31, 2012. 

(1) Excludes loans that have been defeased. Defeasance is prepayment of a loan through substitution of collateral.

(2) Negative values are the result of recoveries on previously charged-off amounts. 

Portfolio UPB(1)

Concentration by State 

as of 12/31/2012

Multifamily 2012 Credit Losses(1) by State ($ Millions)