Fannie Mae

Progress Report

T H I R D Q U A RT E R 2 0 1 2

 We expect that the loans in our new singlefamily book of business will be profitable over 

their lifetime.

 We strengthened our underwriting and 

eligibility standards to support sustainable 

homeownership.

	As a result, loans in our new single-family 

book of business have strong credit risk 

profiles.

OUR PURPOSE

	We are focused on supporting the

housing market recovery and helping to

lay the foundation for a better housing

finance system.

	We are committed to funding the mortgage 

market, assisting troubled borrowers, and 

building a strong new book of business that 

will help return value to taxpayers.

OUR RESULTS

THIRD QUARTER 2012

	The improvement in the company’s financial 

results in the third quarter of 2012 compared 

with the third quarter of 2011 was due 

primarily to lower credit-related expenses 

resulting from an increase in actual and 

expected home prices, higher sales prices on 

our real-estate owned (REO) properties, and 

a decline in fair value losses.

	Our financial condition has improved 

markedly, and our expected ability to pay 

taxpayers is growing.

SINGLE-FAMILY

BOOK OF BUSINESS

Single-Family Loans prior to 2009

Single-Family Loans 2009 through

September 30, 2012

63%

37%

LEGACY

NEW

New book of

business is strong,

profitable, and

growing.

As of Nov. 7, 2012

net income

this quarter

We reported

$1.8 billion

for the first time

since 2006

We expect to report

net income for the first

nine months of 2012

We generated

$9.7billion

annual

net

income
* Fannie Mae data since January 1, 2009, unless otherwise noted.

w w w . f a n n i e m a e . c o m

This report includes our expectations regarding our 

future financial results, our ability to pay taxpayers, and 

the growth, profitability, and caliber of the loans in our 

new single-family book of business. These expectations 

are forward-looking statements based on our current assumptions regarding numerous factors, including future 

home prices. Our actual results and future expectations 

may differ materially from our current expectations as a 

result of home price changes, unemployment rates, other macroeconomic variables, government policy, social 

behaviors, and many other factors, including those discussed in the “Risk Factors” section of and elsewhere in 

our quarterly report on Form 10-Q for the quarter ended 

September 30, 2012 and our annual report on Form 

10-K for the year ended December 31, 2011. These 

forward-looking statements are representative only as 

of the date they are made, and we undertake no obligation to update any forward-looking statement as a result 

of new information, future events or otherwise, except 

as required under the federal securities laws.

FANNIE MAE

PERFORMANCE SNAPSHOT*

	High-quality new book of business 

accounts for 63 percent of single-family 

guaranty book of business.

	Remained the largest single issuer of 

single-family mortgage-related securities in 

the secondary market in the third quarter 

of 2012 and remained a constant source of 

liquidity in the multifamily market.

	Funded the mortgage market with 

approximately $3.0 trillion in liquidity, which 

enabled borrowers to complete 8.9 million 

mortgage refinancings and 2.5 million 

home purchases and provided financing for 

1.5 million units of multifamily housing.

	Refinanced approximately 2.5 million 

mortgages through the company’s Refi 

PlusTM initiative, including loans refinanced 

under the Administration’s Home Affordable 

Refinance Program (HARP). As a result of 

Refi Plus, borrowers’ monthly payments 

were reduced by an average of $221 in the 

third quarter of 2012.

	Completed approximately 1.3 million loan 

workouts, including approximately 839,000 

modifications, that helped homeowners 

in distress to retain their homes or avoid 

foreclosure.

PAYING DIVIDENDS

TO TAXPAYERS

(1) Treasury draw requests are shown in the period for which they 

were requested and do not include the initial $1.0 billion liquidation 

perference of Fannie Mae’s senior preferred stock, for which

DRIVING DOWN THE SERIOUS Fannie Mae did not receive any cash proceeds.

DELINQUENCY (SDQ) RATE

	Our single-family SDQ rate has declined 10 

consecutive quarters.

LIQUIDITY AND SUPPORT

TO THE MARKET

	We provided approximately $3.0 trillion in 

liquidity to the mortgage market since 2009, 

which provided financing for:

	Fannie Mae’s single-family SDQ rate was 

3.41 percent.

	Our single-family SDQ rate is substantially 

lower than private market levels.

	94 percent of Fannie Mae’s 17.6 million loans 

are current.

Data as of September 30, 2012

Draw Request from Treasury

Dividend Payment to Treasury

$15.2

$60.0

$15.0

$25.9

$0.0 $0.0 $2.5

$7.7 $9.6 $8.7

2008 2009 2010 2011 2012 YTD

($ in Billions)

Cumulative Total as of

September 30,

2012

December 31,

2011

Treasury Draw Requests(1) $ 116.1 $ 116.1

Dividend Payments $ 28.5 $ 19.8

home

purchases

2.5

million

rental units

1.5

million

mortgage

refinancings

8.9

million

5.47%

3.41%

1Q10

3Q12

3900 Wisconsin Avenue, NW © 2012, Fannie Mae

Washington, DC 20016-2892 Published November 7, 2012