FannieMaeQuarterlyFinancialSupplement

Q32018

November2,2018

© 2018FannieMae.TrademarksofFannieMae.
SomeofthetermsandotherinformationinthispresentationaredefinedanddiscussedmorefullyinFannieMae’sForm10-Q

forthequarterendedSeptember30,2018(“Q3201810-Q”)andForm10-KfortheyearendedDecember31,2017(“2017Form

10-K”).ThispresentationshouldbereviewedtogetherwiththeQ3201810-Qandthe2017Form10-K,whichareavailableat

www.fanniemae.cominthe“AboutUs—InvestorRelations—SECFilings”section.Informationonoravailablethroughthe

company'swebsiteisnotpartofthissupplement.

Someoftheinformationinthispresentationisbaseduponinformationfromthird-partysourcessuchassellersandservicersof

mortgageloans.Althoughwegenerallyconsiderthisinformationreliable,wedonotindependentlyverifyallreported

information.

Duetorounding,amountsreportedinthispresentationmaynotaddtototalsindicated(or100%).

Unlessotherwiseindicated,datalabeledas"YTD2018"isasofSeptember30,2018orforthefirstninemonthsof2018.Datafor

prioryearsisasofDecember31orforthefullyearindicated.

Notereferencesaretoendnotes,appearingonpages22to24.

Termsusedinpresentation

CAS:ConnecticutAvenueSecurities

CIRTTM:CreditInsuranceRiskTransferTM

CRT:creditrisktransfer

DTIratio:Debt-to-incomeratio

DUS:FannieMae’sDelegatedUnderwritingandServicingprogram

GDP:U.S.grossdomesticproduct

HARP:HomeAffordableRefinanceProgram,whichallowseligibleFannieMaeborrowerswithhighLTVratioloansto

refinanceintomoresustainableloans

LTVratio:loan-to-valueratio

MSA:metropolitanstatisticalarea

MTMLTVratio:mark-to-marketloan-to-valueratio

OLTVratio:originationloan-to-valueratio

RefiPlusTM:ourRefiPlusinitiative,whichoffersrefinancingflexibilitytoeligibleFannieMaeborrowers

REO:realestateowned

TCCA:TemporaryPayrollTaxCutContinuationActof2011

UPB:unpaidprincipalbalance

§

§

§

§

§

§

© 2018FannieMae.TrademarksofFannieMae. Q32018FinancialSupplement 1

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TableofContents

CorporateFinancialHighlights

MarketLiquidity

KeyMarketEconomicIndicators

TreasuryDrawsandDividendPayments 7

6

5

4

FinancialOverview

Single-FamilyHighlights

CertainCreditCharacteristicsofSingle-FamilyLoanAcquisitions

CertainCreditCharacteristicsofSingle-FamilyConventionalGuarantyBookofBusiness

Single-FamilyCreditRiskTransfer

Single-FamilyProblemLoanStatistics

CreditLossConcentrationofSingle-FamilyConventionalGuarantyBookofBusiness

Single-FamilyCumulativeDefaultRates 15

14

13

12

11

10

9

Single-FamilyBusiness

MultifamilyHighlights

CertainCreditCharacteristicsofMultifamilyAcquisitions

CertainCreditCharacteristicsofMultifamilyGuarantyBookofBusiness

MultifamilySeriousDelinquencyRatesandCreditLosses 20

19

18

17

MultifamilyBusiness

FinancialOverviewEndnotes

Single-FamilyBusinessEndnotes

MultifamilyBusinessEndnotes 24

23

22

Endnotes

© 2018FannieMae.TrademarksofFannieMae. Q32018FinancialSupplement 2
FinancialOverview

© 2018FannieMae.TrademarksofFannieMae. Q32018FinancialSupplement 3
3Q18 2Q18 Variance

Netinterestincome

Feeandotherincome

Netrevenues

Investmentgains,net

Fairvaluegains,net

Administrativeexpenses

Credit-relatedincome

Benefitforcreditlosses

Foreclosedpropertyexpense

Totalcredit-relatedincome

TemporaryPayrollTaxCutContinuationActof2011

(TCCA)fees

Otherexpenses,net

Incomebeforefederalincometaxes

Provisionforfederalincometaxes

NetIncome

Othercomprehensiveincome(loss)

Totalcomprehensiveincome ($484)

(38)

($446)

91

(537)

(11)

(11)

(600)

(20)

(580)

15

157

(111)

24

32

($8)

$4,459

2

$4,457

(1,136)

5,593

(366)

(565)

1,157

(139)

1,296

(755)

229

277

5,616

239

$5,377

$3,975

(36)

$4,011

(1,045)

5,056

(377)

(576)

557

(159)

716

(740)

386

166

5,640

271

$5,369

2014 2015 2016 2017 YTD2018

0%

20%

40%

60%

80%

100%

%

NetInterestIncome

$0

$200

$400

$600

$800

$1,000

RetainedMortgagePortfolio($)Billions

$272.4

$413.3

$345.1

$230.8 $199.1

Netinterestincomefromretainedmortgageportfolioandotheractivities

Netinterestincomefromguarantyfeesandotherconsolidatedtrustincome

Retainedmortgageportfolioatendofperiod

KeyHighlights

SummaryofQ32018FinancialResults

SourcesofNetInterestIncomeandRetainedMortgage

PortfolioBalance

CorporateFinancialHighlights

© 2018FannieMae.TrademarksofFannieMae. Q32018FinancialSupplement 4

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_______________________________

_______________________________

_______________________________

_______________________________

Netincome

Netrevenues

(1)

Totalcomprehensiveincome

§ FannieMaereportednetincomeof$4.0billionforQ32018

reflectingthestrengthofthecompany’sbusinessfundamentals.

FannieMae’spre-taxincomewas$5.1billionforQ32018.

§ ThedecreaseinnetincomeinQ32018wasdrivenprimarilybya

decreaseincredit-relatedincomedueprimarilytoareductionin

thebenefitfromtheredesignationofloansfromheld-for-investment

toheld-for-saleandasmallerimprovementinhomepricescompared

withQ22018.Thedecreasewaspartiallyoffsetbyhigherfairvalue

gainsinQ32018comparedwithQ22018.

_______________________________
2014 2015 2016 2017 YTD2018

0.0M

0.5M

1.0M

1.5M

2.0M

2.5M

3.0M

0.8M

0.6M

0.9M

0.9M

0.9M

0.6M

0.4M

0.5M

0.7M

1.0M

1.0M

1.4M

1.2M

1.2M

1.1M

RentalUnits

HomePurchases(Loans)

MortgageRefinancings(Loans)

910K

HomePurchases

571K

Refinancings

548K

RentalUnits

KeyHighlights:

LiquidityProvided

FannieMaeprovided$389billioninliquiditytothemortgagemarketinthefirstnine

monthsof2018,throughitspurchasesofloansandguaranteesofloansand

securities,whichenabledthefinancingof:

ProvidingLiquiditytotheMortgageMarket

MarketLiquidity

© 2018FannieMae.TrademarksofFannieMae. Q32018FinancialSupplement 5
2014 2015 2016 2017 YTD2018

0.0%

2.0%

4.0%

Rate(asofperiodend)

2.83% 3.00%

3.81%

0.90%

1.18%

1.45%

2.08%

2.17%

2.41% 2.98%

3.13% 3.06%

2.45%

3.00%

2.27%

2014 2015 2016 2017 YTD2018

0.0%

2.0%

4.0%

6.0%

HomePriceGrowth

4.6%

4.2%

5.7% 5.7% 5.7%

2014 2015 2016 2017 YTD2018

0.0%

2.0%

4.0%

6.0%

Rate(asofperiodend)

5.60%

4.10%

3.70%

2.40% 2.30% 3.50%

4.70%

2.60%

5.00%

1.50%

MN

NM

MD

MO

WA

WV

MA

WY

NH

ME

OH

MT

ND

MS

OR

OK

NV

NE

GA

NC

NY

DE

AR

CO

TN

UT

WI

KY VA CA

TX

MI

SD

PA

LA

NJ

AL

AZ

KS

FL

SC

IN

ID

IA

IL

BenchmarkInterestRates Single-FamilyHomePriceGrowthRate

U.S.GDPGrowthRateand

UnemploymentRate

OneYearHomePriceChangeasofQ32018

UnitedStates6.0%

KeyMarketEconomicIndicators

HI

AK

StateHomePrice

GrowthRate

ShareofFannie

MaeSingle-Family

Conventional

GuarantyBook

CA

TX

FL

NY

WA

IL

NJ

VA

CO

PA 3.0%

3.1%

3.4%

3.6%

3.6%

3.7%

5.0%

5.7%

6.3%

19.4%

4.8%

7.8%

3.7%

4.6%

3.7%

9.9%

6.2%

7.2%

4.4%

8.6%

Top10StatesbyUPB

© 2018FannieMae.TrademarksofFannieMae. Q32018FinancialSupplement 6

StateGrowthRate

0to4.9%

5to9.9%

10%andabove

(2)

(2)

(2)

(3)

10-yearTreasuryrate

2-yearswaprate

30-yearFannieMBSparcouponrate

ChangebasedonFannieMaenationalhomepriceindex U.S.GDPGrowthRate,annualizedformostrecentperiod

U.S.UnemploymentRate
Drawsfrom

Treasury

Dividendpayments

toTreasury

Drawsfrom

Treasury

Dividendpayments

toTreasury

Drawsfrom

Treasury

Dividendpayments

toTreasury

Drawsfrom

Treasury

Dividendpayments

toTreasury

Drawsfrom

Treasury

Dividendpayments

toTreasury

$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

$160.0

$180.0

($)Billions

$144.8

$116.1

$0.0

$9.6

$12.0

$3.7

$0.0

$5.4

$119.8

$171.8

DrawsfromTreasury DividendpaymentstoTreasury

TreasuryDrawsandDividendPayments

TreasuryDrawsandDividendPayments:2008-YTD2018

2008-2015 2016 2017 YTD2018 Total

© 2018FannieMae.TrademarksofFannieMae. Q32018FinancialSupplement 7

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Single-FamilyBusiness

© 2018FannieMae.TrademarksofFannieMae. Q32018FinancialSupplement 8
Private-labelsecurities

3%

FreddieMac

25%

FannieMae

40%

GinnieMae

32%

Q32017 Q42017 Q12018 Q22018 Q32018

$0

$50

$100

$150

$200

UPB($)Billions

0

10

20

30

40

50

BasisPoints

$88

$60

$84

$50

$69

$39

$59

$52

$35

$72

47.1

51.2

47.1

49.0

45.4

$134 $128

$112 $110

$122

Q32017 Q42017 Q12018 Q22018 Q32018

$0

$1,000

$2,000

$3,000

$4,000

UPB($)Billions

0

10

20

30

40

50

BasisPoints

$2,835 $2,850 $2,870 $2,877 $2,890

42.4 42.6 42.8 43.0 43.4

Refinance

Purchase

Averagechargedguarantyfeeonnewacquisitions,netofTCCA(bps)

Averagechargedguarantyfeeonconventionalguarantybook,netofTCCA(bps)

AverageUPBoutstandingofSingle-Familyconventionalguarantybook

KeyHighlights

Q32018MarketShare:NewSingle-Family

Mortgage-RelatedSecuritiesIssuances

§ Single-Familynetincomewas$3.5billioninQ32018,compared

with$4.0billioninQ22018.ThedecreaseinnetincomeinQ3

2018wasdrivenprimarilybyadecreaseincredit-relatedincome

duetoareductioninthebenefitfromtheredesignationofloans

fromheld-for-investmenttoheld-for-saleandasmaller

improvementinhomepricescomparedwithQ22018.

§ Thedecreasewaspartiallyoffsetbyhigherfairvaluegainsdue

toanincreaseinratesinQ32018comparedwithQ22018.

§ Thesingle-familyguarantybookofbusinesscontinuedtogrowin

Q32018,whiletheaveragechargedguarantyfee(netofTCCA

fees)onthesingle-familyguarantybookwasrelativelyconsistent

withthepriorquarterat43basispoints.

Single-FamilyConventionalLoanAcquisitions ConventionalGuarantyBookofBusiness

Single-FamilyHighlights

Q32018

$4,670M

Netinterestincome

$417M

Fairvaluegains,

net

$146M

Investmentgains,net

$3,462M

Netincome

$582M

Credit-relatedincome

© 2018FannieMae.TrademarksofFannieMae. Q32018FinancialSupplement 9

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Q32017 Q42017 FullYear2017 Q12018 Q22018 Q32018

TotalUnpaidPrincipalBalance(UPB)($B)

TotalUPBexcludingRefiPlus($B)

WeightedAverageOriginationLTV(OLTV)Ratio

OriginationLTVRatio>90%

WeightedAverageFICO CreditScore

FICOCreditScore<660

DTIRatio>45%

Fixed-rate

Condo/Co-op 10%

98%

25%

6%

743

24%

78%

$121.4

$122.3

10%

98%

26%

6%

743

23%

77%

$109.1

$110.5

9%

98%

23%

6%

743

19%

75%

$110.3

$112.2

10%

97%

10%

6%

745

18%

75%

$487.7

$501.8

10%

98%

19%

6%

743

18%

76%

$125.2

$127.9

10%

97%

8%

5%

745

20%

76%

$131.5

$134.2

Loanswith

OLTV

Ratio>90%

Loanswith

FICOCredit

Score<660

Loanswith

DTI

Ratio>45%

10%

99%

100%

7%

734

22%

77%

$84.2

$84.2

7%

100%

29%

100%

641

18%

74%

$19.3

$20.3

9%

100%

25%

5%

738

100%

96%

$75.1

$75.6

2014 2015 2016 2017 YTD2018

0%

20%

40%

60%

80%

100%

WeightedAverageOLTV

Ratio

0%

10%

20%

30%

OriginationLTV>90%

77% 75% 74% 75% 77%

18% 18%

22%

16% 15%

2014 2015 2016 2017 YTD2018

0%

20%

40%

60%

80%

100%

ShareofAcquisitions

20%

20%

30%

64%

44%

22%

22%

33%

56%

45%

52%

16%

19% 19%

12% 13%

OLTV>90%

WeightedAverageOLTVRatio

2014 2015 2016 2017 YTD2018

0

200

400

600

800

WeightedAverageFICOCreditScore

0%

2%

4%

6%

8%

10%

12%

14%

FICOCreditScore<660

744 748 750 745 743

5% 6% 6%

4%

7%

FICOCreditScore<660

WeightedAverageFICOCreditScore

CertainCreditCharacteristicsofSingle-FamilyConventionalLoans

byAcquisitionPeriod

YTD2018Acquisition

CreditProfileby

CertainProductFeatures

Origination

Loan-to-ValueRatio

FICOCreditScore AcquisitionsbyLoanPurpose

CertainCreditCharacteristicsofSingle-FamilyLoanAcquisitions

RefiPlusincludingHARP

Refinance(excludingcash-out&RefiPlus)

Cash-outrefinance

Purchase

© 2018FannieMae.TrademarksofFannieMae. Q32018FinancialSupplement 10

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(3)

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(4)

(1) (4) Categoriesarenotmutuallyexclusive
Overall

Book

2004&

Earlier 2005-2008 2009-2015 2016 2017 2018

TotalUnpaidPrincipalBalance(UPB)($B)

AverageUnpaidPrincipalBalance

ShareofSingle-FamilyConventionalGuarantyBook

SeriousDelinquencyRate

WeightedAverageOriginationLTVRatio

OriginationLTVRatio>90%

WeightedAverageMark-to-MarketLTVRatio

WeightedAverageFICOCreditScore

ShareofLoanswithCreditEnhancement

Fixed-rate 98%

45%

743

75%

23%

77%

0.02%

10%

$230,379

$288.7

98%

69%

744

68%

19%

76%

0.18%

15%

$218,057

$442.0

99%

64%

751

60%

16%

74%

0.25%

16%

$215,119

$475.7

98%

37%

752

48%

17%

75%

0.44%

50%

$157,808

$1,458.3

69%

18%

695

62%

15%

76%

4.90%

5%

$126,397

$147.5

80%

7%

700

38%

14%

74%

2.77%

3%

$71,474

$84.3

96%

45%

745

56%

17%

75%

0.82%

100%

$169,600

$2,896.5

RefiPlus

IncludingHARP Alt-A

Loanswith

FICOCredit

Score<660

OriginationLTV

Ratio>90%

98%

75%

733

76%

100%

101%

1.25%

17%

$178,137

$506.2

92%

34%

629

60%

24%

79%

3.67%

7%

$134,534

$195.1

73%

8%

709

58%

19%

80%

3.68%

2%

$136,036

$60.0

99%

11%

730

53%

38%

86%

0.71%

12%

$135,378

$341.3

2014 2015 2016 2017 YTD2018

0%

10%

20%

30%

40%

50%

60%

70%

WeightedAverageMTMLTV

0%

2%

4%

6%

8%

10%

%

MTMLTV>100%

60%

64%

62%

58%

56%

2%

3%

5%

1%

1%

2014 2015 2016 2017 YTD2018

0

200

400

600

800

WeightedAverageFICOCreditScore

0%

5%

10%

15%

20%

%FICOCreditScore<660

744 744 745 745 745

7%

8%

7%

8%

7%

WeightedAverageMark-To-Market

Loan-to-Value(MTMLTV)Ratio

FICOCreditScore

2014 2015 2016 2017 YTD2018

0.0%

2.0%

4.0%

6.0%

8.0%

SeriousDelinquencyRate

0.34%

6.39%

1.20%

6.55%

4.90%

7.60%

1.24%

8.39%

3.06%

1.55%

1.89%

0.82%

0.36% 0.53% 0.35% 0.36%

2.82% 2.77%

3.26% 3.28%

SeriousDelinquencyRatebyVintage

OriginationYear CertainProductFeatures

%FICOCreditScore<660

WeightedAverageFICOCreditScore

%MTMLTV>100%

WeightedAverageMTMLTV

CertainCreditCharacteristicsofSingle-FamilyConventionalGuarantyBookofBusiness

CertainCreditCharacteristicsofSingle-FamilyConventionalGuarantyBookofBusinessbyOriginationYearandProductFeatures

Totalsingle-familyconventionalguarantybookofbusiness

2004andPrior

2005-2008

2009-2018

AsofSeptember30,2018

Categoriesarenotmutuallyexclusive

© 2018FannieMae.TrademarksofFannieMae. Q32018FinancialSupplement 11

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2014 2015 2016 2017 YTD2018

$0

$500

$1,000

$1,500

UPB($)Billions

0%

10%

20%

30%

40%

%Single-FamilyConventionalGuarantyBook

$1,093

$628

$250

$429

$927

9%

38%

22%

15%

32%

%Single-familyconventionalguarantybookinaCRTtransaction

UPBoutstandingofloansinaCRTtransaction

Single-FamilyLoansIncludedinCreditRiskTransfer

Transactions,BalanceofCoveredLoans

Single-FamilyCreditRiskTransfer

Single-FamilyLoanswithCreditEnhancement

Single-FamilyCreditRiskTransferIssuance

2016

Outstanding

UPB

Percentof

Book

Outstanding

2017

Outstanding

UPB

Percentof

Book

Outstanding

YTD2018

Outstanding

UPB

Percentof

Book

Outstanding

Primarymortgageinsurance&other

ConnecticutAvenueSecurities (CAS)

CreditInsuranceRiskTransferTM (CIRTTM)

Lenderrisk-sharing

(Less:loanscoveredbymultiplecredit

enhancements)

TotalUPBofsingle-familyloanswithcredit

enhancement

33%

(8%)

1%

4%

18%

18%

$925B

($211B)

$23B

$101B

$503B

$509B

40%

(12%)

2%

6%

24%

20%

$1,158B

($335B)

$65B

$181B

$681B

$566B

45%

(14%)

3%

8%

27%

21%

$1,315B

($379B)

$94B

$231B

$768B

$601B

2013 2014 2015 2016 2017 YTD2018

$0

$100

$200

$300

$400

UPB($)Billions

$240

$222

$265

$102

$189

$156

$40

$68

$44

$35

$76

$27

$32

$233 $239

$331

$410

$259

Lenderrisk-sharing ConnecticutAvenueSecurities CreditInsuranceRiskTransfer

CreditEnhancement

© 2018FannieMae.TrademarksofFannieMae. Q32018FinancialSupplement 12

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®
NM

MN

MD

MO

WA

WV

MA

WY

NH

ME

OH

MT

ND

MS

OR

OK

NV

NE

GA

NC

NY

DE

AR

TN

UT CO

WI

KY VA 

CA

TX

MI

SD

PA

LA

NJ

AL

AZ

KS

FL

SC

IN

ID

IA

IL

Lessthan0.50% 0.50%to0.99% 1.00%to1.99% 3.00%andAbove

2014 2015 2016 2017 YTD2018

$0

$10

$20

$30

$40

UPB($)Billions

0

50

100

150

200

NumberofLoanWorkouts(Thousands)

$16.6 $14.4 $14.6 $14.9

$21.7

$6.6

$4.2

$3.1 $2.1

164.6K

98.6K

122.3K

103.5K 100.6K

$28.3

$20.7

$17.5 $16.7 $15.8

2014 2015 2016 2017 YTD2018

0K

20K

40K

60K

80K

100K

REOEndingInventory

87K

57K

38K

26K

21K

Single-FamilyProblemLoanStatistics

Single-FamilySeriousDelinquencyRatebyStateasofSeptember30,2018

Single-FamilyLoanWorkouts REOEndingInventory

REOEndingInventory

AK

HI

PR

VI

State

Serious

Delinquency

Rate

Average

Monthsto

Foreclosure

CA

TX

FL

NY

WA

IL

NJ

VA

CO

PA 25

17

14

57

24

38

67

47

24

21

1.11%

0.21%

0.53%

1.51%

1.00%

0.40%

1.55%

1.51%

0.69%

0.34%

Top10StatesbyUPB

ForeclosureAlternatives

HomeRetentionSolutions

TotalLoanWorkouts

© 2018FannieMae.TrademarksofFannieMae. Q32018FinancialSupplement 13

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2014 2015 2016 2017 YTD2018 2014 2015 2016 2017 YTD2018

Alt-A

InterestOnly

OriginationLTVRatio>90%

FICOCreditScore<660andOriginationLTVRatio>90%

FICOCreditScore<660

RefiPlusincludingHARP 11.8%

6.7%

1.6%

17.5%

0.9%

2.1%

13.2%

7.0%

1.7%

16.7%

1.2%

2.5%

15.4%

7.3%

1.8%

16.4%

1.7%

3.1%

17.6%

7.8%

2.0%

16.3%

2.1%

3.7%

19.1%

8.0%

2.0%

15.9%

2.5%

4.2%

13.7%

33.6%

8.6%

21.5%

14.5%

23.0%

15.9%

33.0%

9.0%

23.9%

15.7%

21.9%

14.0%

35.8%

8.8%

21.9%

12.2%

24.9%

7.8%

29.7%

6.5%

16.4%

18.0%

29.3%

10.4%

29.7%

6.6%

15.3%

10.2%

17.4%

2014 2015 2016 2017 YTD2018 2014 2015 2016 2017 YTD2018

2009-YTD2018

2005–2008

2004&Prior 2.9%

5.1%

92.0%

3.5%

6.2%

90.3%

4.5%

8.1%

87.4%

5.8%

10.1%

84.1%

7.3%

12.2%

80.5%

13.8%

65.2%

21.0%

12.2%

64.8%

23.1%

16.4%

64.7%

19.0%

12.1%

77.6%

10.3%

12.0%

74.7%

13.3%

62.7%

19.4%

5.0%

3.6%

3.6%

5.7%

10.0% 48.6%

10.2%

12.6%

8.9%

9.7%

AllOtherStates

California

Florida

Illinois

NewJersey

NewYork

AllOtherStates

California

Florida

Illinois

NewJersey

NewYork

CreditLossConcentrationofSingle-FamilyConventionalGuarantyBookofBusiness

%ofSingle-FamilyConventionalGuarantyBookofBusiness

%ofSingle-FamilyCreditLosses

ForthePeriodEnded

%ofSingle-FamilyConventionalGuarantyBookofBusiness

byStateasofSeptember30,2018

%ofQ32018Single-FamilyCreditLossesbyState

© 2018FannieMae.TrademarksofFannieMae. Q32018FinancialSupplement 14

100%

$2.9T

100%

$2.0B

(17)

(18)

(9)

CertainProductFeatures

Categoriesarenotmutuallyexclusive

Vintage

(3)

(3)
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%

CumulativeDefaultRate

2007

2008

2002

2017 2016

2006

2005

2004

2003

2018

2015

2014 2013 2012 2011

2010

2009

Single-FamilyCumulativeDefaultRates

CumulativeDefaultRatesofSingle-FamilyConventionalGuarantyBookofBusinessbyOriginationYear

2002

2003

2004

2005

2006

2007

2008

2009*

2010*

2011*

2012*

2013*

2014*

2015*

2016*

2017*

2018*

TimeSinceBeginningofOriginationYear

© 2018FannieMae.TrademarksofFannieMae. Q32018FinancialSupplement 15

*AsofSeptember30,2018,cumulativedefaultratesontheloansoriginatedfrom2009-2018waslessthan1%

(19)
MultifamilyBusiness

© 2018FannieMae.TrademarksofFannieMae. Q32018FinancialSupplement 16
MultifamilyHighlights

Q32018 Acquisitions GuarantyBookofBusiness

Q32017 Q42017 Q12018 Q22018 Q32018

$0.0

$5.0

$10.0

$15.0

$20.0

UPB($)Billions

$16.2

$20.3

$11.3

$14.5

$18.2

MultifamilyGuarantyFeeand

CreditLoss(Benefit)Ratio

Q32017 Q42017 Q12018 Q22018 Q32018

$0

$100

$200

$300

$400

UPB($)Billions

0%

20%

40%

60%

80%

100%

ShareofMultifamilyGuarantyBookwith

LenderRiskSharing

$287.6

$265.4

$281.3

$296.1

$277.3

96% 96% 97% 97% 97%

Shareofguarantybookwithlenderrisk-sharing

UPBoutstandingofMultifamilyguarantybookofbusiness

KeyHighlights

Q32017 Q42017 Q12018 Q22018 Q32018

0

20

40

60

80

100

BasisPoints

79.8

77.0

(2.4)

0.7

78.7 78.9 78.6

(0.8) 0.6 0.6

Annualizedcreditloss(benefit)ratio

Averageguarantyfeeatendofperiod(bps)

§ Multifamilynetincomewas$549millioninQ32018,compared

with$504millioninQ22018.Theincreaseinnetincomewas

drivenprimarilybyanincreaseinguarantyfeerevenueasthe

multifamilyguarantybookgrewduringthequarter.

§ FannieMaecontinuedtosharecreditriskwithlendersonnearly

100%ofthecompany’snewbusinessthroughitsDelegated

UnderwritingandServicing(DUS )program.Tocomplement

thisprogram,inAugustthecompanycompleteditsthird

multifamilyCIRTTM transaction,whichcoveredloanswitha

UPBof$11.1billion.

§ Themultifamilyguarantybookofbusinesscontinuedtogrowin

Q32018,whiletheaveragechargedguarantyfeeonthe

multifamilyguarantybookdecreasedslightlyfromJune30,

2018to77basispointsasofSeptember30,2018.

Otherrentalbusinessvolume Multifamilynewbusinessvolume

$699M

Netinterestincome

$192M

Feeandother

income

$25M

Credit-related

expense

$31M

Fairvaluelosses

$549M

Netincome

© 2018FannieMae.TrademarksofFannieMae. Q32018FinancialSupplement 17

(1)

(2)

®
CertainCreditCharacteristicsofMultifamilyAcquisitions

2014 2015 2016 2017 YTD2018

0%

20%

40%

60%

80%

100%

ShareofAcquisitions

48% 48% 50%

49%

43%

65%

35%

57%

51% 51%

%OriginationLTVlessthanorequalto70%

%OriginationLTVgreaterthan70%andlessthanorequalto80%

%OriginationLTVgreaterthan80%

2014 2015 2016 2017 YTD2018

0%

20%

40%

60%

80%

100%

ShareofAcquisitions

80%

20%

89%

28% 23%

79%

72% 77%

21%

$2.0B 11%

$3.0B

$2.4B

$2.5B

$1.0B

$1.0B

$1.4B

$1.4B

$1.5B

$1.7B

VariableRate

FixedRate

2014 2015 2016 2017 YTD2018

TotalUnpaidPrincipalBalance(UPB)($B)

WeightedAverageOriginationLTVRatio

LoanCount

%LenderRecourse

%DUSTM 99%

100%

2,710

65%

$44.0

98%

100%

3,861

67%

$67.1

99%

99%

3,335

68%

$55.3

99%

99%

2,869

68%

$42.4

99%

99%

2,361

68%

$28.9

CertainCreditChacteristicsofMultifamilyLoansbyAcquisitionPeriod

OriginationLoan-to-ValueRatio AcquisitionsbyNoteType

Top10MSAsbyYTD2018

AcquisitionUPB

Atlanta

Dallas

Houston

LosAngeles

NewYork

Phoenix

SanDiego

SanFrancisco

Seattle

Washington,DC

© 2018FannieMae.TrademarksofFannieMae. Q32018FinancialSupplement 18

(3)

(4)

Shareof

Acquistions:40.6%

TotalUPB:$17.9B

Categoriesarenotmutuallyexclusive
CertainCreditCharacteristicsofMultifamilyGuarantyBookofBusiness

2014 2015 2016 2017 YTD2018

0%

20%

40%

60%

80%

100%

ShareofMultifamilyBookofBusiness

80% 80%

20% 20%

82% 84%

18%

81%

19% 16%

$8.7B

$25.4B

$14.0B

$21.0B

$12.2B

$8.9B

$8.6B

$6.8B

$7.3B $9.4B

Atlanta

Chicago

Dallas

Houston

LosAngeles

NewYork

Phoenix

SanFrancisco

Seattle

Washington,DC

Overall

Book

2004&

Eariler 2005-2008 2009-2015 2016 2017 2018

TotalUnpaidPrincipalBalance(UPB)($B)

AverageUnpaidPrincipalBalance($M)

WeightedAverageOriginationLTVRatio

%Fixed-rate

LoanCount

%ofBook

%ofSmallBalanceLoans

%LenderRecourse

%DUS

SeriousDelinquencyRate 0.00%

99%

100%

18%

15%

2,708

89%

65%

$16.1

$43.6

0.04%

97%

100%

18%

22%

3,773

81%

67%

$17.4

$65.6

0.02%

99%

99%

18%

17%

3,062

81%

68%

$16.7

$51.0

0.09%

98%

96%

39%

41%

12,739

91%

66%

$9.5

$120.7

0.46%

86%

75%

87%

3%

4,111

49%

65%

$2.3

$9.3

0.01%

97%

95%

68%

2%

1,261

19%

71%

$4.6

$5.9

0.07%

98%

97%

40%

100%

27,654

84%

67%

$10.7

$296.1

Conventional

/Co-op Senior Student Manufactured

0.00%

100%

100%

27%

4%

984

87%

67%

$10.7

$10.5

0.00%

100%

99%

14%

4%

582

81%

67%

$18.3

$10.7

0.04%

98%

100%

2%

5%

701

62%

67%

$22.2

$15.6

0.07%

97%

97%

42%

88%

25,387

85%

67%

$10.2

$259.3

CertainCreditCharacteristicsofMultifamilyBookofBusinessbyAcquisitionYear,AssetClass,orTargetedAffordableSegment

UPBbyMaturityYear

MultifamilyBookofBusiness

byNoteType

Top10MSAsbyUPB

$0.8B$9.2B

$240.2B

$10.4B

$21.0B

$14.5B

2018

2019

2020

2021

2022

Other

VariableRate

FixedRate

AcquisitionYear AssetClassorTargetedAffordableSegment

PrivatelyOwned

withSubsidy

0.12%

95%

96%

41%

12%

3,788

69%

69%

$9.1

$34.5

© 2018FannieMae.TrademarksofFannieMae. Q32018FinancialSupplement 19

(3)

(8)

(4)

(7)

AsofSeptember30,2018

Categoriesarenotmutuallyexclusive

ShareofBook

ofBusiness:100%

TotalUPB:$296.1B

ShareofBook

ofBusiness:41.3%

TotalUPB:$122.3B

(5) (5) (5) (5) (6)

(1)
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD2018

0.0%

0.5%

1.0%

1.5%

2.0%

CreditLossRate

0.0%

0.2%

0.1%

0.0%

0.4%

0.3%

0.0%

0.4%

0.5%

0.9%

0.2%

0.7%

0.9%

1.2%

1.1%

0.8%

0.9%

1.4%

0.3%0.3%

0.1% 0.1%

0.0%

0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

DUSCreditLossRate TotalCreditLossRate Non-DUSCreditLossRate

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD2018

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

SeriousDelinquencyRate

0.55%

0.34%

0.15%

0.07% 0.05% 0.07%

0.56%

0.11%

0.06%

1.36%

0.44%

1.20%

0.24%

0.71%

0.21% 0.21%

0.18%

0.24%

0.63%

0.50%

0.15%

0.10%

0.59%

0.08% 0.07% 0.08%

0.05%

0.39%

0.92%

DUSSeriousDelinquencyRate

MultifamilyTotalSeriousDelinquencyRate

Non-DUSSeriousDelinquencyRate

DUS/Non-DUSCumulativeCreditLossRatesbyAcquisitionYearThroughYTD2018

SeriousDelinquencyRates

2013 2014 2015 2016 2017 YTD2018

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

BasisPoints

2.5

(0.2)

0.7

(0.7)

(2.7)

(2.3)

CreditLoss(Benefit)Ratio

MultifamilySeriousDelinquencyRatesandCreditLosses

© 2018FannieMae.TrademarksofFannieMae. Q32018FinancialSupplement 20

(4)(9)

(4)(8) (2)(10)
Endnotes

© 2018FannieMae.TrademarksofFannieMae. Q32018FinancialSupplement 21
FinancialOverviewEndnotes

Guarantyfeeincomeincludestheimpactofa10basispointguarantyfeeincreaseimplementedin2012pursuanttotheTemporaryPayrollTaxCutContinuationActof

2011,theincrementalrevenuefromwhichisremittedtoTreasuryandnotretainedbythecompany.

HomepriceestimatesarebasedonpurchasetransactionsinFannie-FreddieacquisitionandpublicdeeddataavailablethroughtheendofSeptember2018.Including

subsequentdatamayleadtomateriallydifferentresults.Homepricechangeisnotseasonallyadjusted.UPBestimatesarebasedondataavailablethroughtheendof

September2018,andthetop10statesarereportedbyUPBindescendingorder.

Source:BureauofEconomicAnalysis.GDPgrowthrateiscalculatedusingthequarterlyannualizedgrowthrateforthemostrecentperiodandtheannualgrowthrate

forpriorperiods.

Underthetermsoftheseniorpreferredstockpurchaseagreement,dividendpaymentswemaketoTreasurydonotoffsetourpriordrawsoffundsfromTreasury,and

wearenotpermittedtopaydowndrawswehavemadeundertheagreementexceptinlimitedcircumstances.

Treasurydrawsareshownintheperiodforwhichrequested,notwhenthefundswerereceivedbyus.Drawrequestshavebeenfundedinthequarterfollowinganet

worthdeficit.

(1)

a

(2)

a

(3)

a

(4)

a

(5)

© 2018FannieMae.TrademarksofFannieMae. Q32018FinancialSupplement 22
Single-FamilyBusinessEndnotes

Single-familyconventionalloanpopulationconsistsof:(a)single-familyconventionalmortgageloansofFannieMae;(b)single-familyconventionalmortgageloansunderlying

FannieMaeMBS;and(c)othercreditenhancementsthatweprovideonsingle-familymortgageassets,suchaslong-termstandbycommitments.Itexcludesnon-FannieMae

single-familymortgage-relatedsecuritiesheldinourretainedmortgageportfolioforwhichwedonotprovideaguaranty.Conventionalreferstomortgageloansand

mortgage-relatedsecuritiesthatarenotguaranteedorinsured,inwholeorinpart,bytheU.S.governmentoroneofitsagencies.

Calculatedbasedontheaverageguarantyfeerateforoursingle-familyguarantyarrangementsduringtheperiodplustherecognitionofanyupfrontcashpaymentsoveran

estimatedaveragelife.Excludestheimpactofa10basispointguarantyfeeincreaseimplementedin2012pursuanttotheTCCA,theincrementalrevenuefromwhichisremittedto

Treasuryandnotretainedbyus.

FICOcreditscoreisasofloanorigination,asreportedbythesellerofthemortgageloan.

PopulationexcludesHARPandotherRefiPlusloansacquiredunderourRefiPlusTM initiative.

Calculatedbasedontheaggregateunpaidprincipalbalanceofsingle-familyloansforeachcategorydividedbytheaggregateunpaidprincipalbalanceofloansinoursingle-family

conventionalguarantybookofbusiness.Loanswithmultipleproductfeaturesareincludedinallapplicablecategories.

ForadescriptionofourAlt-Aloanclassificationcriteria,refertoFannieMae’s2017Form10-K.WediscontinuedthepurchaseofnewlyoriginatedAlt-Aloansin2009,exceptfor

thosethatrepresenttherefinancingofaloanweacquiredpriorto2009,whichhasresultedinouracquisitionsofAlt-Amortgageloansremaininglowandthepercentageofthe

bookofbusinessattributabletoAlt-Atocontinuetodecreaseovertime.

“Seriousdelinquencyrate"referstosingle-familyconventionalloansthatare90daysormorepastdueorintheforeclosureprocessintheapplicableoriginationyear,product

feature,orstate,dividedbythenumberofloansinoursingle-familyconventionalguarantybookofbusinessinthatoriginationyear,productfeature,orstate.

Theaverageestimatedmark-to-marketLTVratioisbasedontheunpaidprincipalbalanceoftheloandividedbytheestimatedcurrentvalueoftheproperty,whichwecalculate

usinganinternalvaluationmodelthatestimatesperiodicchangesinhomevalue.Excludesloansforwhichthisinformationisnotreadilyavailable.

Percentageofloansinoursingle-familyconventionalguarantybookofbusiness,measuredbyunpaidprincipalbalance,includedinanagreementusedtoreducecreditriskby

requiringcollateral,lettersofcredit,mortgageinsurance,corporateguarantees,inclusioninacreditrisktransfertransactionreferencepool,orotheragreementthatprovidesfor

ourcompensationtosomedegreeintheeventofafinanciallossrelatingtotheloan.BecauseweincludeloansinreferencepoolsforourConnecticutAvenueSecuritiesandCredit

InsuranceRiskTransfercreditrisktransfertransactionsonalaggedbasis(typicallyaboutsixmonthstooneyearafterweinitiallyacquiretheloans),weexpectthepercentageof

our2017and2018single-familyloanacquisitionswithcreditenhancementwillincreaseinthefuture.

Theaggregateestimatedmark-to-marketLTVratioisbasedontheunpaidprincipalbalanceoftheloanasoftheendofeachperioddividedbytheestimatedvalueoftheproperty

asoftheendoftheperiod.

Referstoloansincludedinanagreementusedtoreducecreditriskbyrequiringprimarymortgageinsurance,collateral,lettersofcredit,corporateguarantees,orotheragreements

toprovideanentitywithsomeassurancethatitwillbecompensatedtosomedegreeintheeventofafinancialloss.Excludesloanscoveredbycreditrisktransfertransactions

unlesssuchloansarealsocoveredbyprimarymortgageinsurance.

Outstandingunpaidprincipalbalancerepresentstheunderlyingloanbalance,whichisdifferentfromthereferencepoolbalanceforCASandsomelenderrisk-sharing

transactions.

Includesmortgagepoolinsurancetransactionscoveringloanswithanunpaidprincipalbalanceofapproximately$3billionatissuanceandapproximately$5billionoutstanding

asofSeptember30,2018.

Measuredfromtheborrowers’lastpaidinstallmentontheirmortgagestowhentherelatedpropertieswereaddedtoourREOinventoryforforeclosurescompletedduringthefirst

ninemonthsof2018.HomeEquityConversionMortgagesinsuredbytheDepartmentofHousingandUrbanDevelopmentareexcludedfromthiscalculation.

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

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

Consistsof(a)modifications,whichdonotincludetrialmodifications,loanstocertainborrowerswhohavereceivedbankruptcyreliefthatareaccountedforastroubleddebt

restructurings,orrepaymentplansorforbearancesthathavebeeninitiatedbutnotcompleted;(b)repaymentplans,reflectsonlythoseplansassociatedwithloansthatwere60

daysormoredelinquent;and(c)forbearances,notincludingforbearancesassociatedwithloansthatwerelessthan90daysdelinquentwhenentered.

Basedontheunpaidprincipalbalance(UPB)ofthesingle-familyconventionalguarantybookofbusinessasofperiodend.

Creditlossesconsistof(a)charge-offsnetofrecoveriesand(b)foreclosedpropertyexpense(income).Percentagesexcludetheimpactofrecoveriesthathavenotbeenallocatedto

specificloans.

Defaultsincludeloanforeclosures,shortsales,salestothirdpartiesatthetimeofforeclosureanddeeds-in-lieuofforeclosure.CumulativeDefaultRateisthetotalnumberof

single-familyconventionalloansintheguarantybookofbusinessoriginatedintheidentifiedyearthathavedefaulted,dividedbythetotalnumberofsingle-familyconventional

loansintheguarantybookofbusinessoriginatedintheidentifiedyear.DataasofSeptember30,2018isnotnecessarilyindicativeoftheultimateperformanceoftheloansand

performanceislikelytochange,perhapsmaterially,infutureperiods.

(1)

a

a

a

(2)

a

a

(3)

(4)

(5)

a

(6)

a

a

(7)

a

(8)

a

(9)

a

a

a

a

(10)

a

(11)

a

a

(12)

a

(13)

a

(14)

a

(15)

a

(16)

a

a

(17)

(18)

a

(19)

a

© 2018FannieMae.TrademarksofFannieMae. Q32018FinancialSupplement 23
MultifamilyBusinessEndnotes

Ourmultifamilyguarantybookofbusinessconsistsof:(a)multifamilymortgageloansofFannieMae;(b)multifamilymortgageloansunderlyingFannieMaeMBS;

and(c)othercreditenhancementsthatweprovideonmultifamilymortgageassets.Itexcludesnon-FannieMaemultifamilymortgage-relatedsecuritiesheldinour

retainedmortgageportfolioforwhichwedonotprovideaguaranty.

Creditloss(benefit)ratiorepresentsthecreditlossorbenefitfortheperioddividedbytheaverageunpaidprincipalbalanceofthemultifamilyguarantybookof

businessfortheperiod.Creditbenefitsaretheresultofrecoveriesonpreviouslycharged-offamounts.

Representsthepercentageofloanswithlenderrisk-sharingagreementsinplace,measuredbyunpaidprincipalbalance.

UndertheDelegatedUnderwritingandServicing(DUS)program,FannieMaeacquiresindividual,newlyoriginatedmortgagesfromspeciallyapprovedDUSlenders

usingDUSunderwritingstandardsand/orDUSloandocuments.BecauseDUSlendersgenerallysharetheriskoflosswithFannieMae,theyareabletooriginate,

underwrite,closeandservicemostloanswithoutourpre-review.

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

TheMultifamilyAffordableBusinessChannelfocusesonfinancingpropertiesthatareunderanagreementthatprovideslong-termaffordability,suchasproperties

withrentsubsidiesorincomerestrictions.

Multifamilyloanswithanoriginalunpaidbalanceofupto$3millionnationwideorupto$5millioninhighcostmarkets.

Multifamilyloansareclassifiedasseriouslydelinquentwhenpaymentis60daysormorepastdue.

Cumulativecreditlossrateisthecumulativecreditlosses(gains)throughSeptember30,2018onthemultifamilyloansthatwereacquiredintheapplicableperiod,as

apercentageofthetotalacquiredunpaidprincipalbalanceofmultifamilyloansintheapplicableperiod.

Creditloss(benefit)ratioisannualizedforthemostrecentperiod.

(1)

a

a

(2)

a

(3)

(4)

a

a

(5)

(6)

a

(7)

(8)

(9)

a

(10)

© 2018FannieMae.TrademarksofFannieMae. Q32018FinancialSupplement 24