Numbers may not sum due to rounding See Endnotes and Glossary on Pages 3 and 4

MONTHLY SUMMARY HIGHLIGHTS

January 2017

Ä Fannie Mae's Book of Business increased at a compound annualized

rate of 2.3 percent in January.

Ä Fannie Mae's Gross Mortgage Portfolio increased at a compound

annualized rate of 2.8 percent in January.

Ä The Conventional Single-Family Serious Delinquency Rate remained

flat at 1.20 percent in January; the Multifamily Serious Delinquency

Rate remained flat at 0.05 percent in January.

Ä Fannie Mae completed 6,300 loan modifications in January.

IMPORTANT NOTE:

Fannie Mae has been under conservatorship, with the Federal Housing

Finance Agency (FHFA) acting as conservator, since September 6,

2008.

TABLE 1. TOTAL BOOK OF BUSINESS COMPONENTS ($ in Millions) 1

Gross

Mortgage

Total Fannie

Mae MBS

Fannie Mae

MBS

Portfolio +

and Other

Guarantees - in Portfolio = Total Book Compounded New Business

[Table 2] [Table 3] [Table 4] of Business Growth (Decline) Rate Acquisitions

January 2016 $ 346,505 $ 2,825,076 $ 74,546 $ 3,097,035 (0.9)% $ 38,323

February 2016 337,210 2,827,506 66,732 3,097,984 0.4 % 35,948

March 2016 332,644 2,835,491 66,159 3,101,976 1.6 % 40,906

April 2016 328,035 2,837,180 64,645 3,100,570 (0.5)% 45,562

May 2016 317,655 2,841,013 57,738 3,100,930 0.1 % 46,333

June 2016 316,277 2,846,007 58,463 3,103,821 1.1 % 53,529

July 2016 308,875 2,850,932 56,607 3,103,200 (0.2)% 53,401

August 2016 311,125 2,863,733 61,887 3,112,971 3.8 % 59,044

September 2016 306,537 2,876,765 60,019 3,123,283 4.0 % 71,420

October 2016 300,865 2,890,513 61,721 3,129,657 2.5 % 66,774

November 2016 289,461 2,889,326 41,143 3,137,644 3.1 % 64,514

December 2016 272,354 2,913,936 42,054 3,144,236 2.6 % 61,671

Full Year 2016 $ 272,354 $ 2,913,936 $ 42,054 $ 3,144,236 1.4 % $ 637,425

January 2017 $ 272,981 $ 2,929,632 $ 52,404 $ 3,150,209 2.3 % $ 55,271

YTD 2017 $ 272,981 $ 2,929,632 $ 52,404 $ 3,150,209 2.3 % $ 55,271

TABLE 2. GROSS MORTGAGE PORTFOLIO ($ in Millions) 1

Compounded Annualized

Purchases Sales Liquidations End Balance Growth (Decline) Rate Liquidation Rate

January 2016 $ 20,236 $ (13,878) $ (4,956) $ 346,505 5.0 % (17.2)%

February 2016 17,695 (22,664) (4,326) 337,210 (27.8)% (15.0)%

March 2016 20,937 (21,224) (4,279) 332,644 (15.1)% (15.2)%

April 2016 23,982 (24,296) (4,295) 328,035 (15.4)% (15.5)%

May 2016 23,453 (29,408) (4,425) 317,655 (32.0)% (16.2)%

June 2016 28,010 (24,472) (4,916) 316,277 (5.1)% (18.6)%

July 2016 25,446 (28,993) (3,855) 308,875 (24.7)% (14.6)%

August 2016 32,517 (25,900) (4,367) 311,125 9.1 % (17.0)%

September 2016 35,150 (35,732) (4,006) 306,537 (16.3)% (15.5)%

October 2016 35,682 (37,477) (3,877) 300,865 (20.1)% (15.2)%

November 2016 28,344 (35,818) (3,930) 289,461 (37.1)% (15.7)%

December 2016 27,926 (40,428) (4,605) 272,354 (51.9)% (19.1)%

Full Year 2016 $ 319,378 $ (340,290) $ (51,837) $ 272,354 (21.1)% (15.0)%

January 2017 $ 24,161 $ (19,674) $ (3,860) $ 272,981 2.8 % (17.0)%

YTD 2017 $ 24,161 $ (19,674) $ (3,860) $ 272,981 2.8 % (17.0)%

Page 1 of 4

TABLE 3. FANNIE MAE GUARANTEED SECURITIES AND MORTGAGE LOANS ($ in Millions) 1

Fannie Mae Other Total Fannie Mae Compounded Fannie Mae

Total Fannie Mae MBS MBS Annualized Fannie Mae MBS and Other Growth (Decline) Mortgage Guaranteed Securities

Issuances2Liquidations End Balance Liquidation Rate Guarantees Guarantees Rate Loans and Mortgage Loans

January 2016 $ 39,733 $ (37,506) $ 2,808,697 (16.0)% $ 16,379 $ 2,825,076 0.9 % $ 250,560 $ 3,075,636

February 2016 33,776 (31,223) 2,811,250 (13.3)% 16,256 2,827,506 1.0 % 251,070 3,078,576

March 2016 40,838 (32,678) 2,819,410 (14.0)% 16,081 2,835,491 3.4 % 248,360 3,083,851

April 2016 45,602 (43,860) 2,821,152 (18.7)% 16,028 2,837,180 0.7 % 246,279 3,083,459

May 2016 46,549 (42,445) 2,825,256 (18.1)% 15,757 2,841,013 1.6 % 243,464 3,084,477

June 2016 50,119 (45,112) 2,830,263 (19.2)% 15,744 2,846,007 2.1 % 242,661 3,088,668

July 2016 53,852 (48,810) 2,835,305 (20.7)% 15,627 2,850,932 2.1 % 239,844 3,090,776

August 2016 58,557 (45,681) 2,848,181 (19.3)% 15,552 2,863,733 5.5 % 236,394 3,100,127

September 2016 71,498 (58,383) 2,861,296 (24.6)% 15,469 2,876,765 5.6 % 233,990 3,110,755

October 2016 69,545 (55,732) 2,875,109 (23.4)% 15,404 2,890,513 5.9 % 228,180 3,118,693

November 2016 52,493 (53,507) 2,874,095 (22.3)% 15,231 2,889,326 (0.5)% 238,100 3,127,426

December 2016 75,275 (50,769) 2,898,601 (21.2)% 15,335 2,913,936 10.7 % 220,069 3,134,005

Full Year 2016 $ 637,837 $ (545,706) $ 2,898,601 (19.4)% $ 15,335 $ 2,913,936 3.2 % $ 220,069 $ 3,134,005

January 2017 $ 62,430 $ (46,631) $ 2,914,400 (19.3)% $ 15,232 $ 2,929,632 6.7 % $ 210,811 $ 3,140,443

YTD 2017 $ 62,430 $ (46,631) $ 2,914,400 (19.3)% $ 15,232 $ 2,929,632 6.7 % $ 210,811 $ 3,140,443
Numbers may not sum due to rounding See Endnotes and Glossary on Pages 3 and 4

TABLE 4. MORTGAGE PORTFOLIO COMPOSITION ($ in Millions) 1

Non-Fannie Mae

Fannie Mae MBS in Portfolio Mortgage Mortgage Securities Mortgage Portfolio

Purchases Sales Liquidations Securitizations3 End Balance Loans Agency Non-Agency End Balance

January 2016 $ 6,187 $ (12,802) $ (970) $ 13,434 $ 74,546 $ 250,560 $ 6,186 $ 15,212 $ 346,505

February 2016 3,623 (20,102) (1,323) 9,988 66,732 251,070 5,183 14,225 337,210

March 2016 3,142 (18,524) (900) 15,709 66,159 248,360 4,879 13,246 332,644

April 2016 3,797 (22,503) (803) 17,995 64,645 246,279 4,541 12,570 328,035

May 2016 3,417 (27,568) (671) 17,915 57,738 243,464 4,734 11,719 317,655

June 2016 4,673 (20,963) (610) 17,625 58,463 242,661 3,714 11,439 316,277

July 2016 3,643 (25,267) (592) 20,360 56,607 239,844 2,226 10,198 308,875

August 2016 4,981 (23,751) (517) 24,567 61,887 236,394 2,817 10,027 311,125

September 2016 5,800 (33,602) (535) 26,469 60,019 233,990 2,669 9,859 306,537

October 2016 8,050 (33,348) (552) 27,552 61,721 228,180 2,238 8,726 300,865

November 2016 3,441 (33,638) (551) 10,170 41,143 238,100 1,905 8,313 289,461

December 2016 5,024 (36,890) (408) 33,185 42,054 220,069 2,499 7,732 272,354

Full Year 2016 $ 55,778 $ (308,958) $ (8,432) $ 234,969 $ 42,054 $ 220,069 $ 2,499 $ 7,732 $ 272,354

January 2017 $ 6,150 $ (17,732) $ (392) $ 22,324 $ 52,404 $ 210,811 $ 2,374 $ 7,392 $ 272,981

YTD 2017 $ 6,150 $ (17,732) $ (392) $ 22,324 $ 52,404 $ 210,811 $ 2,374 $ 7,392 $ 272,981

TABLE 5. OTHER INVESTMENTS ($ in Millions) 1 TABLE 6. DEBT ACTIVITY ($ in Millions) 4

Original Original Maturity > 1 Year

Other Investments < 1 Year Maturities and Foreign Exchange Total Debt

End Balance End Balance Issuances Redemptions Repurchases Adjustments End Balance Outstanding

January 2016 $ 59,920 January 2016 $ 56,905 $ 3,840 $ (631) $ Å $ (18) $ 321,637 $ 378,542

February 2016 74,348 February 2016 62,010 13,081 (9,800) Å (13) 324,905 386,915

March 2016 67,060 March 2016 60,469 7,348 (18,866) (24) 16 313,379 373,848

April 2016 63,827 April 2016 55,712 8,687 (14,512) Å 9 307,563 363,275

May 2016 67,849 May 2016 56,582 6,405 (12,179) (15) (4) 301,770 358,352

June 2016 75,140 June 2016 60,561 12,293 (9,478) (15) (41) 304,529 365,090

July 2016 83,871 July 2016 57,286 17,588 (17,082) Å (3) 305,032 362,318

August 2016 75,391 August 2016 48,843 16,430 (15,530) Å (3) 305,929 354,772

September 2016 75,833 September 2016 51,491 14,838 (18,633) Å (6) 302,128 353,619

October 2016 76,125 October 2016 40,114 11,969 (9,009) Å (25) 305,063 345,177

November 2016 81,940 November 2016 37,459 3,776 (8,747) Å 9 300,101 337,560

December 2016 87,641 December 2016 35,025 2,269 (8,565) Å (6) 293,799 328,824

Full Year 2016 $ 87,641 Full Year 2016 $ 35,025 $ 118,524 $ (143,032) $ (54) $ (85) $ 293,799 $ 328,824

January 2017 $ 85,291 January 2017 $ 33,305 $ 6,596 $ (8,963) $ Å $ 8 $ 291,440 $ 324,745

YTD 2017 $ 85,291 YTD 2017 $ 33,305 $ 6,596 $ (8,963) $ Ä $ 8 $ 291,440 $ 324,745

TABLE 7. INTEREST RATE RISK DISCLOSURES ($ in Billions) TABLE 8. SERIOUS DELINQUENCY RATES

Conventional Single-Family5 Multifamily

Market Value Sensitivity Effective Credit Enhanced

Rate Level Rate Slope Duration Gap Non-Credit Primary MI Credit Risk

Shock (50 bp) Shock (25 bp) (in months) Enhanced and Other6Transfer7Total Total8

January 2016 $ 0.0 $ 0.0 0 January 2016 1.47% 2.65% 0.10% 1.55% 0.08%

February 2016 0.0 0.0 0 February 2016 1.46% 2.56% 0.10% 1.52% 0.07%

March 2016 0.0 (0.1) 0 March 2016 1.39% 2.39% 0.10% 1.44% 0.06%

April 2016 0.0 (0.1) 0 April 2016 1.36% 2.29% 0.10% 1.40% 0.05%

May 2016 0.0 (0.1) 0 May 2016 1.33% 2.23% 0.11% 1.38% 0.05%

June 2016 0.0 (0.1) 0 June 2016 1.28% 2.17% 0.10% 1.32% 0.07%

July 2016 0.0 0.0 0 July 2016 1.26% 2.14% 0.11% 1.30% 0.08%

August 2016 0.0 0.0 0 August 2016 1.19% 2.27% 0.12% 1.24% 0.07%

September 2016 0.0 0.0 0 September 2016 1.20% 2.19% 0.12% 1.24% 0.07%

October 2016 (0.1) 0.0 0 October 2016 1.17% 2.21% 0.14% 1.21% 0.06%

November 2016 (0.1) (0.1) 0 November 2016 1.19% 2.21% 0.15% 1.23% 0.06%

December 2016 0.0 (0.1) 0 December 2016 1.16% 2.18% 0.17% 1.20% 0.05%

Full Year 2016 $ 0.0 $ (0.1)

January 2017 $ 0.0 $ 0.0 0 January 2017 1.17% 2.14% 0.17% 1.20% 0.05%

YTD 2017 $ 0.0 $ 0.0

Page 2 of 4
ENDNOTES

1. The end balances and business activity in this report represent unpaid principal balances ("UPB"), which do not reflect market valuation adjustments,

allowance for loan losses, impairments, unamortized premiums and discounts, and the impact of consolidation of variable interest entities.

2. Includes Fannie Mae mortgage-backed securities ("Fannie Mae MBS") issued from Fannie Mae's mortgage portfolio. See Table 4 for monthly activity and

balances for Fannie Mae MBS held in portfolio.

3. Securitizations in Table 4 represent new Fannie Mae MBS created from mortgage assets held in the mortgage portfolio, including whole loans. These

amounts are included in issuances in Table 3 and, if sold during the month, will be included in sales in Table 4. Our securitizations of loans we held in our

portfolio the prior month will reduce the mortgage loans reported in Table 4.

4. Reported amounts represent the UPB at each reporting period or, in the case of the long-term zero coupon bonds, at maturity. UPB does not reflect the

effect of debt basis adjustments, including discounts, premiums, and issuance costs.

5. Includes seriously delinquent conventional single-family loans as a percent of the total number of conventional single-family loans. These rates are based

on conventional single-family mortgage loans and exclude reverse mortgages and non-Fannie Mae mortgage securities held in our portfolio. The creditenhanced categories are not mutually exclusive. A loan with primary mortgage insurance that is also covered by a credit risk transfer transaction will be

included in both the ÇPrimary MI and OtherÉ category and the ÇCredit Risk TransferÉ category.

6. Refers to loans included in an agreement used to reduce credit risk by requiring primary mortgage insurance, collateral, letters of credit, corporate

guarantees, or other agreements to provide an entity with some assurance that it will be compensated to some degree in the event of a financial loss.

Excludes loans covered by credit risk transfer transactions unless such loans are also covered by primary mortgage insurance.

7. Refers to loans included in reference pools for credit risk transfer transactions, including loans in these transactions that are also covered by primary

mortgage insurance.

8. Calculated based on the UPB of seriously delinquent multifamily loans owned by Fannie Mae or underlying Fannie Mae guaranteed securities, divided by

the UPB of multifamily loans owned by Fannie Mae or underlying Fannie Mae guaranteed securities.

Page 3 of 4
GLOSSARY & OTHER INFORMATION

General

Risk Disclosures. In addition to the interest rate risk disclosures provided in Table 7, Fannie Mae's most recent available information relating to subordinated debt, liquidity management, corporate risk ratings and credit risks is included in its most recent

Form 10-K or Form 10-Q filed with the Securities and Exchange Commission.

Compounded Growth Rate. Monthly growth rates are compounded to provide an annualized rate of growth.

Table 1

Total Book of Business. Sum of the Gross Mortgage Portfolio balance and Total Fannie Mae MBS and Other Guarantees balance, less Fannie Mae MBS held in the mortgage portfolio.

New Business Acquisitions. Single-family and multifamily mortgage loans purchased during the period and single-family and multifamily mortgage loans underlying Fannie Mae MBS issued pursuant to lender swaps. These amounts reflect new business

purchases on which our statutory affordable housing allocations are based. 

Table 2

Gross Mortgage Portfolio. End balance represents the unpaid principal balance ("UPB") of the mortgage portfolio that Fannie Mae holds for investment and liquidity purposes. Excludes certain matched trades and certain early funding activities.

Purchases. Acquisition of mortgage loans and mortgage securities for the mortgage portfolio.

Sales. Sales of mortgage securities and mortgage loans from the mortgage portfolio.

Liquidations. Represents the total amount of repayments, curtailments, payoffs, and foreclosures on mortgage loans and mortgages underlying securities held in the mortgage portfolio.

Annualized Liquidation Rate. The liquidation rate is calculated as liquidations divided by the prior period ending balance of the mortgage portfolio, annualized.

Table 3

Fannie Mae Guaranteed Securities and Mortgage Loans. Consists of securities and mortgage loans for which Fannie Mae manages credit risk. This table excludes non-Fannie Mae securities held in the mortgage portfolio, which are shown in Table 4.

Total Fannie Mae MBS. Includes Fannie Mae MBS, private label wraps, whole loan REMICs, and Ginnie Mae wraps. Also includes Multifamily discount MBS ("DMBS") that Fannie Mae guarantees, regardless of whether those MBS are held in the

mortgage portfolio or held by investors other than Fannie Mae. If an MBS has been resecuritized into another MBS, the principal amount is only included once in this total.

Issuances. Represents the total amount of Fannie Mae MBS created during the month, including lender-originated issues and Fannie Mae MBS created from mortgage loans previously held in Fannie MaeÑs portfolio. Fannie Mae MBS may be held in

portfolio after their creation.

Liquidations. Represents the total amount of repayments, curtailments, payoffs, and foreclosures on mortgages underlying Fannie Mae MBS, including Fannie Mae MBS held in the mortgage portfolio.

Other Fannie Mae Guarantees. Outstanding balance of Fannie Mae guarantees, other than Fannie Mae MBS. This primarily includes long-term standby commitments we have issued and credit enhancements we have provided.

Annualized Liquidation Rate. The liquidation rate is calculated as liquidations divided by the prior period ending balance of total Fannie Mae MBS, annualized.

Table 4

Mortgage Portfolio Composition. Shows the primary components of Fannie Mae's mortgage portfolio and activity relating to Fannie Mae MBS held in the mortgage portfolio.

Non-Fannie Mae Agency Securities. Represents mortgage-related securities issued by Freddie Mac and Ginnie Mae.

Non-Fannie Mae Non-Agency Securities. These primarily include private-label securities, mortgage revenue bonds, and commercial mortgage-backed securities.

Table 5

Other Investments. Primarily consists of cash and readily marketable instruments such as certificates of deposit, federal funds sold, securities purchased under agreements to resell and Treasury bills.

Table 6

Debt Activity. Debt is classified in the table based on its original maturity. For debt with an original term of more than one year, the portion of that long-term debt that is due within one year is not reclassified to "Original Maturity < 1 Year." For more

information about Fannie Mae's debt activity, please visit http://www.fanniemae.com/portal/funding-the-market/debt/reports/index.html.

Table 7

Our interest rate risk measures provide useful estimates of key interest-rate risk and include the impact of our purchases and sales of derivative instruments, which we use to limit our exposure to changes in interest rates. While we believe that our market

value sensitivity and duration gap metrics are useful risk management tools, they should be understood as estimates rather than precise measurements. Methodologies employed to calculate interest-rate risk sensitivity disclosures are periodically changed

on a prospective basis to reflect improvements in the underlying estimation processes.

Market Value Sensitivity to Rate Level Shock (50bp). This measurement shows the most adverse pre-tax impact on the market value of Fannie MaeÑs assets and liabilities from an immediate adverse 50 basis point shift in the level of LIBOR rates. The

amounts shown are estimates, not precise measurements. The measurement excludes any sensitivity of the guaranty business. Fannie Mae tracks the daily average of this measurement for the reported month.

Market Value Sensitivity to Rate Slope Shock (25bp). This measurement shows the most adverse pre-tax impact on the market value of Fannie MaeÑs assets and liabilities from an immediate adverse 25 basis point change in the slope of the LIBOR yield

curve. To calculate the adverse change in the slope of the LIBOR yield curve, the company calculates the effect of a 25 basis point change in slope that results in a steeper LIBOR yield curve and the effect of a 25 basis point change in slope that results in a

flatter LIBOR yield curve, and reports the more adverse of the two results. The amounts shown are estimates, not precise measurements. The measurement excludes any sensitivity of the guaranty business. Fannie Mae tracks the daily average of this

measurement for the reported month.

Effective Duration Gap. The effective duration gap estimates the net sensitivity of the fair value of Fannie MaeÑs assets and liabilities to movements in interest rates. This statistic is expressed as a number of months, based on the daily average for the

reported month. A duration gap of zero implies that the change in the fair value of assets from an interest rate move will be offset by an equal move in the fair value of liabilities, including debt and derivatives, resulting in no change in the fair value of the net

assets. The calculation excludes any sensitivity of the guaranty business.

Table 8

Serious Delinquency Rates. A measure of credit performance and indicator of future defaults for the single-family and multifamily mortgage credit books. We include single-family loans that are three months or more past due or in the foreclosure process,

and multifamily loans that are 60 days or more past due. We include conventional single-family loans that we own and that back Fannie Mae MBS in our single-family delinquency rate.

Page 4 of 4