2

Contents

 2 A Message from Our CEO

 6 Focusing on Our Customers

14 Reimagining America’s Way Home

24 Building Toward the Future

36 Serving People in Need

40 Recognized by the Industry

44 Join the Conversation

Published May 4, 2017

For more information on our business, including information on our recent financial results and credit performance, the credit 

profile of our book of business, and significant risks relating to our business, see our annual report on Form 10-K for the year 

ended December 31, 2016, filed with the Securities and Exchange Commission on February 17, 2017 (“2016 Form 10-K”).

This report includes our expectations regarding the focus of our business and the impact of our actions on our business and the 

U.S. housing finance system. These expectations are forward-looking statements based on our current assumptions regarding 

numerous factors. Our actual results and future expectations may differ materially from our current expectations as a result of 

many factors, including those discussed in the “Risk Factors” and “Forward-Looking Statements” sections of and elsewhere in 

our 2016 Form 10-K. 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.

Data in this report as of or through December 31, 2016, unless otherwise indicated.
Fannie Mae 2016 Progress Report 1

We work at the 

heart of housing, 

providing financing 

to create housing 

opportunities 

across the nation. 

Our vision is 

to be America’s 

most valued 

housing partner. 
2 Fannie Mae 2016 Progress Report

Delivering 

value for 

housing

A message 

from our CEO, 

Timothy J. 

Mayopoulos

 In 2016, America’s housing market continued to 

grow stronger. Serving this market and helping meet 

its challenges are what drive the people who work 

at Fannie Mae. Our story is on the pages that follow.

To us, Fannie Mae’s job is not housing. It is homes.

We make sure that banks, credit unions, and 

other lenders have the funds they need to create 

housing opportunities that are affordable. Every day. 

Whether a family is looking to get a mortgage with 

an affordable monthly payment or an apartment with 

an affordable rent, our role is to help our customers 

serve that family’s needs.
Fannie Mae 2016 Progress Report 3

Fannie Mae 2016 Progress Report 5

Delivering Value for Housing

What is our ambition? To enable our customers 

to better serve the next generation of Americans 

who are looking for housing options that meet their 

needs. We are striving to take complicated financing 

processes and make them easy and simple for 

lenders and buyers alike. This means constant 

re-evaluation and retooling of the way we work.

If you are a mortgage lender, this ambition spurs us 

to deliver great service and technology solutions 

that make your business more efficient and 

enable you to make mortgage lending faster, less 

complicated, and safer. We also deliver solutions 

that make it easier for you to lend to every 

qualified borrower.

If you are a lender in multifamily housing, we make 

sure you have the low-cost, flexible financing you 

need to create rental options that are affordable to 

working families.

If you invest in mortgages, we offer a number 

of products and options to help you meet your 

investment objectives, while moving credit risk 

away from taxpayers.

If you are a family looking for the protection 

and predictability of a 30-year fixed-rate 

mortgage, we work with our customers to 

make those loans possible.

The spirit of home breathes life into all facets of our 

work. Guided by this spirit, Fannie Mae has become 

a vastly different company. We have put in place 

strong, sensible lending standards, improved our 

business model, reduced taxpayer exposure, and 

made mortgage lending simpler and more efficient. 

Our goal is better outcomes for everyone who 

contributes to and counts on the safety, efficiency, 

and agility of the nation’s mortgage market.

The ultimate source of this progress is the people 

of Fannie Mae, who put their diverse backgrounds, 

perspectives, and talents to work for customers and 

communities across our country. They are driven to 

make Fannie Mae America’s most valued housing 

partner. They are joined together by a commitment 

and a cause larger than themselves: to work at the 

heart of housing, serving the people who make it 

possible for America’s families to have a place 

called home.

I invite you to learn more about our 2016 progress 

and to let us know how we are doing.

TIMOTHY J. MAYOPOULOS

“The spirit of home breathes life 

into all facets of our work.
6 Fannie Mae 2016 Progress Report

Focusing

on Our 

Customers
Fannie Mae 2016 Progress Report 7
8 Fannie Mae 2016 Progress Report
Fannie Mae 2016 Progress Report 9

Focusing on Our Customers

 At Fannie Mae, we serve the people who house America.

Our culture guides us all to focus on the needs of our customers 

and industry partners, to assist them in creating more 

opportunities for buyers and renters. 

Doing business with Fannie Mae is now easier and more efficient. 

We’ve changed the way we’re organized, so we can provide 

answers quickly. And we’re providing services and solutions that 

address industry pain points. 

At Fannie Mae, we work to earn our customers’ business, loyalty, 

and satisfaction every day.

Our customers

are at the center 

of everything 

we do

We work to 

earn our customers’ 

business, loyalty, 

and satisfaction 

every day.
10 Fannie Mae 2016 Progress Report

Focusing on Our Customers

 To serve a community well, you need to work closely with 

the people who know that community best. Fannie Mae has a 

longstanding commitment to our partners at the state and local 

levels, working together to meet the diverse housing needs of 

people in their communities. 

Our flexible and affordable housing solutions enable mortgage 

lenders, credit unions, banks, and community organizations to make 

homes accessible to more Americans, in big cities and small towns 

alike. At the same time, we know we can do more. Fannie Mae 

will continue to focus on driving innovation that makes mortgage 

lending simpler, more efficient, and less costly for our partners, 

so they can continue to deliver affordable, safe, and sustainable 

housing opportunities across the country.

Making 

progress 

through 

partnership 

 Fannie Mae’s research and market intelligence can help 

you understand what’s happening now in housing and 

the economy–and what it might signal for the future. Our 

economists, analysts, and thought leaders are passionate 

about uncovering trends in housing and sharing their insights 

to help improve the housing market at large. By making our 

expert research readily available to the public, we enable better 

transparency and informed decision-making. The result is a 

safer, smarter housing market for all Americans.

Smarter insights 

for a smarter 

housing market
Fannie Mae 2016 Progress Report 11
12 Fannie Mae 2016 Progress Report
Fannie Mae 2016 Progress Report 13

Focusing on Our Customers

 We believe in the power of simplicity, innovation, and 

partnership to drive a better housing system. By introducing 

Day 1 CertaintyTM, we’re bringing greater speed and clarity to 

lenders and borrowers–and setting a new standard for lending

in America. We have given lenders tools to validate key data about 

borrower income and assets, as well as home value.

Day 1 Certainty enables lenders to streamline the way they create 

mortgages. It empowers our customers to grow their business 

and meet market demands. Now, lenders can deliver more loans 

faster without sacrificing quality, allowing them to lend with 

confidence to qualified borrowers and provide borrowers with a 

better customer experience.

Helping lenders 

transform 

their business

Launched in 2016, Fannie Mae’s

Day 1 Certainty is transforming the way 

mortgages are made and giving lenders

the tools to do more business.

It means greater speed, by making the process of creating loans faster and more efficient. It means 

more simplicity, through automated steps and reduced paper-dependency.

It also means less risk and greater certainty that when a lender sells a loan to Fannie Mae, it stays sold.

We believe Day 1 Certainty will reshape the housing system through improved loan quality, stronger 

risk management, and more digitization. Taken together, Day 1 Certainty gives lenders the ability to 

reimagine and improve the experience they can provide to their customers–starting from day one.

“This is a win-win, as the customer’s experience is improved through reduced 

documentation and accelerated closing dates, while we receive

freedom from reps and warrants and operational efficiencies.”

– Glenn Brunker, President, BOK Financial
14 Fannie Mae 2016 Progress Report

2

Reimagining 

America’s 

Way Home
Fannie Mae 2016 Progress Report 15
16 Fannie Mae 2016 Progress Report
Fannie Mae 2016 Progress Report 17

 Our lenders demand innovation. They are looking for new 

solutions that will make doing business simpler and more efficient. 

And borrowers’ expectations about the ease and speed of the 

mortgage experience are growing.

Fannie Mae provides fully integrated online tools that are helping 

lenders reimagine what it means to create a mortgage. We 

are introducing new options, such as our flexible HomeReady®

mortgage, to expand affordable lending opportunties for 

creditworthy borrowers. We are investing in improved capabilities, 

including Day 1 Certainty and the use of trended credit data in our 

Desktop Underwriter® platform, to provide lenders with better 

insight. And we are partnering with FinTech companies to help the 

industry bring the digital mortgage closer to reality.

From unique loan flexibilities that address changing demographics 

to groundbreaking technologies that streamline the home-buying 

process, we are redefining the way America does housing and 

mortgage finance. 

Investing in 

innovation to 

meet America’s 

housing needs

In 2016, we launched a cash-out

refinance option for student loan debt. 

With Student Loan Payoff Refi, homeowners can 

pay off student debt using the equity in their 

homes. And by consolidating remaining student 

and mortgage debt into one loan, consumers can 

benefit from comparatively low mortgage rates.

Reimagining America’s Way Home

Helping Homeowners with Student Debt
18 Fannie Mae 2016 Progress Report

 In just over three years, Fannie Mae has created attractive 

new markets to transfer mortgage credit risk to private investors, 

protecting America’s taxpayers. Before, when we bought or 

securitized mortgages for single-family homes, we acquired and 

held on to the credit risk. Now, we distribute some of the risk 

through our capital markets and reinsurance transactions. We use 

industry-leading innovations to manage credit risk through the 

entire life cycle of the loan. These capabilities make our credit risk 

transfer transactions attractive to investors, enhancing our ability 

to facilitate the flow of private capital throughout the market.

Managing and 

sharing credit 

risk smartly

Reimagining America’s Way Home

$100B

$300B

$500B

$700B

As of

2014

As of

2015

As of

2016

$421

Billion

$239

Billion

$648

Billion

Total unpaid principal balance (UPB)

of loans in a reference pool for a

credit risk transfer transaction 23%

15%

9%

of our

single-family

guaranty 

book

Single-Family Loans Covered by

Credit Risk Transfer Transactions

As of year-end 2016, nearly one-quarter of the loans in our single-family conventional guaranty

book of business were included in a reference pool for a credit risk transfer transaction.

For more information on our credit risk transfer transactions, including information on the

portion of the credit risk of these loans we have transferred, refer to our 2016 Form 10-K.
Fannie Mae 2016 Progress Report 19
20

Reimagining America’s Way Home

Manufactured Housing Communities have 

been a vital part of America’s housing 

stock for several decades. Today, they are an 

increasingly attractive option for families seeking 

affordable and safe places to call home. 

Fannie Mae is proud to be a leading source 

of financing for Manufactured Housing 

Communities. Our financing solutions support 

evolving market needs and bring desirable, 

high-quality home rental and ownership options 

to thousands of families, especially in rural parts 

of the country.

Manufacturing 

new ideas 

in affordable 

housing

In 2016, we provided $3 billion in

financing for Manufactured 

Housing Communities—an increase of

282% from $786 million in 2015.

2015

$3 billion

2016

$786

million

Manufactured 

Housing Communities
21

In 2016, we announced our largest-ever Manufactured Housing Communities 

transaction, which will offer workforce housing for more than 

29,000 families across the country. We worked with KeyBank National Association 

and Wells Fargo Multifamily Capital to provide financing to 

YES! Communities, LLC. Taking a unique approach to managing 

its properties, YES! encourages a sense of community for residents.

Working with Manufactured 

Housing Communities

“Fannie Mae took the time to understand how 

we do business and to provide us 

with the creative structuring to execute on our 

investment objectives.” 

– Gary McDaniel, Chief Executive Officer, YES! Communities

$1 billion 120 deal communities in

13

states
22 Fannie Mae 2016 Progress Report
Fannie Mae 2016 Progress Report 23

 With our affordable green financing options, the owners 

of apartment buildings and cooperatives can make energyand water-saving improvements that reduce their properties’ 

environmental impact. These investments also improve a 

property’s bottom line through lower utility costs—with 

potential savings for both building owners and renters.

Homeowners, too, can finance or pay off energy-saving 

improvements using our HomeStyle® Energy mortgage. 

Today’s existing homes are 37 years old on average—

HomeStyle Energy makes it easy for buyers to invest in 

energy improvements at the time of purchase or refinance.

Making 

environmentally 

friendly 

homes possible

Reimagining America’s Way Home

*Properties with Green Building Certifications or loans targeting a 20% (or greater) reduction in energy or water consumption.

In 2016, we 

provided $3.6 billion 

in multifamily 

green financing*...

...an increase of 

over 1,000% from 

$309 million

in 2015.

$3B

$2B

$1B

$4B

2012 2013 2014 2015 2016
24 Fannie Mae 2016 Progress Report

Building

Toward

the Future 3
Fannie Mae 2016 Progress Report 25

Fannie Mae 2016 Progress Report 27

We are building on 80 years of experience and 

expertise to meet the future needs of home 

buyers and renters across America. Working closely 

with lenders, servicers, industry partners, and the 

Federal Housing Finance Agency, we’re creating a 

stronger, smarter, better mortgage finance system–

one that continues to create affordable, sustainable 

home opportunities.

Creating 

housing 

opportunities 

together

Building Toward the Future
28

Every community has unique housing needs. 

That’s why Fannie Mae operates in every 

community across the country. We’re there to help 

banks, credit unions, and other lenders give

qualified borrowers a chance at homeownership.

We also finance rental housing units for working

families, and we help those who have fallen on

tough times avoid foreclosure. 

National 

scope, 

community 

focus
Fannie Mae 2016 Progress Report 29

In 2016, we provided $637 billion in mortgage financing across the country, enabling 1.1 million home 

purchases, 1.4 million mortgage refinancings, and 724,000 units of affordable rental housing.

We Are Where People Are

Building Toward the Future
30

 We don’t just want to help families get into homes–we 

want to help them stay there. The first step is making sure

buyers only take on mortgages they can afford.

As the nation’s leading source of mortgage financing, we play a 

central role in setting standards for loan eligibility, underwriting, 

and risk management. Our standards are prudent, fair, and flexible. 

Homebuyers must be creditworthy and demonstrate an ability to 

repay. At the same time, we know buyers have wide-ranging credit 

characteristics. We have a variety of new resources and solutions 

that recognize these situations. Now lenders can find the right fit 

for a larger number of borrowers.

Responsible, 

sustainable 

homeownership

As of December 31, 2016, the share of single-family loans in our book of business 

that are seriously delinquent has dropped for 27 consecutive quarters.

1%

2%

3%

4%

5%

1Q10 4Q10 4Q11 4Q12 4Q13 4Q14 4Q15 4Q16

5.47%

1.2%

Strong Credit Performance...
Fannie Mae 2016 Progress Report 31

88% 

single-family loans acquired

since January 1, 2009

In 2008, we began 

to strengthen our standards 

to improve loan quality. 

We now have a stronger,

more stable single-family

book of business.

12%

single-family loans

acquired prior to 2009

Single-family conventional loans acquired since 2009 vs. 2008 and earlier

Single-family conventional guaranty book of business as of December 31, 2016.

...And a Strong Book of Business

Building Toward the Future
32 Fannie Mae 2016 Progress Report

single-family conventional loans

17.2M

97%

70%

86%

Current on payments Primary

residences

Long-term

fixed-rate

mortgages

Single-family conventional guaranty book of business as of December 31, 2016.

Characteristics of Our Single-Family Loans
Fannie Mae 2016 Progress Report 33

 Affordability, stability, and reliability. These are the reasons 

why the 30-year fixed-rate mortgage remains America’s 

favorite–and why Fannie Mae continues to be a leading source 

of financing for it.

When taking on a mortgage, buyers don’t like surprises. 

They want a clear understanding of their financial obligations. 

Long-term fixed-rate mortgages offer peace of mind because the 

interest rate and monthly payment won’t change. Borrowers 

can also refinance at any time and may be able to prepay without 

penalty, letting them save money over the life of the loan.

America’s 

most popular 

mortgage

When taking 

on a mortgage, 

buyers don’t 

like surprises. 

Building Toward the Future
34 Fannie Mae 2016 Progress Report

 A mortgage can be difficult to manage for a family facing 

serious hardship. We are dedicated to helping homeowners 

avoid foreclosure through free, hands-on mortgage counseling 

and effective loan workout options.

If you are having difficulty paying your mortgage, visit 

knowyouroptions.com to learn about available resources.

Helping 

people 

through 

hardships

Since 2009, we’ve helped families avoid foreclosure through approximately 1.9 million

loan modifications and other workouts and 4.5 million Refi PlusTM refinancings.

Refi Plus refinancings

Home retention solutions

Foreclosure alternatives

200K

600K

1.2M

2009 2010 2011 2012 2013 2014 2015 2016

Helping Homeowners Avoid Foreclosure

Building Toward the Future
Fannie Mae 2016 Progress Report 35

Our Role & Responsibility
4

36 Fannie Mae 2016 Progress Report

Serving 

People 

in Need
Fannie Mae 2016 Progress Report 37
38 Fannie Mae 2016 Progress Report

For our 9/11 Day of Service:

 At Fannie Mae, everything we do is designed to strengthen 

America’s housing industry and build stronger communities. 

Making it easy for our employees to contribute to the communities 

where they live and work is an important part of that mission.

Through our SERVE volunteer program, employees can lead or 

participate in activities that support eligible nonprofit organizations. 

From helping to end homelessness and working to stabilize hard-hit 

neighborhoods to providing education and resources to local youth, 

Fannie Mae employees are eager to serve.

Giving back 

is a big part of 

who we are

43%

15,273

400

17

employees participated with

nonprofit partners around the country.

Share of employees who 

volunteered in 2016:

Number of hours volunteered 

with our nonprofit partners:
Fannie Mae 2016 Progress Report 39

Serving People in Need

7 Days to SERVE

$133,737

91%

40%

9,500

200

72

volunteer projects, benefiting

nonprofit partners around the country.

of employees contributed approximately

In 2016,

volunteer hours, tackling more than

For the fourth year in a row, Fannie Mae 

hosted 7 Days to SERVE, an enterprise-wide 

program focused on employee volunteerism 

during a special week of community service. 

We supported 46 Help the Homeless 

fundraisers, raising $133,737 from across the 

company for eight nonprofit partners.

71

Trained

employees in best practices in nonprofit 

board leadership through our 

popular Get on Board program. 

In our 2016 employee survey, 91 percent of 

respondents said Fannie Mae’s 

community-service and volunteerism offerings 

help support a more positive workplace. 
5

40 Fannie Mae 2016 Progress Report

Recognized by 

the Industry
Fannie Mae 2016 Progress Report 41
42

Some of 

the best 

and the 

brightest 

talent 

at work

VMworld 2016 

MReport

Women in 

Housing Awards 

Power Player Kimberly Johnson; 

Leading Ladies Nadine Bates, Charmaine Brown, 

Kristy Fercho, Sarah Goldfrank, Mercedes Henriksson, 

Kimberly Johnson, Katrina Jones, Hilary Provinse, 

Renee Schultz, Marianne Sullivan, Tujuanna Williams

TAM Customer Day 

Award for Automated Data 

Center Operations and 

Application Automation

RapidIT team

We are glad that respected organizations have 

recognized the work we’re doing to improve 

our business. The awards we received in 2016 reflect 

our talents, expertise, and achievements in building a 

better housing finance system.

Our employees work tirelessly to ensure access to 

affordable financing opportunities for homeowners, 

homebuyers, and renters in all market conditions. 

Our teams have been recognized for leadership in 

workplace diversity, energy efficiency, technology, 

and more. We are making a difference, thanks to 

the deep commitment of our people.

PRNews 

Finalist–CSR 

Awards 

Volunteer Program: 7 Days to SERVE

2020 Women on Boards Campaign

2020 

Winning Companies

Gender Diversity Index (top ranking)
Fannie Mae 2016 Progress Report 43

Recognized by the Industry

National Association for 

Business Economics 

Communicator Awards

Human Rights Campaign

Computerworld Digital Magazine

Commercial Observer 

National Association 

for Female Executives

PRNews 

Bisnow

Affordable Housing Finance

Black Enterprise

Association for Corporate Counsel, 

National Capital Region

NABE 

Outlook 

Award

Doug Duncan

MakingHome

Affordable.com, 

HomePath

Best 

Places to 

Work 

Corporate Equality 

Index (100%)

Premier 100 

Technology 

Leaders 2016 

Michael Garcia

Power 50 

List 

Michele Evans and 

Jeff Hayward

Women of 

Excellence 

Award

Kimberly Johnson 

(Community Service)

Top 

Women 

in PR

Maureen Davenport

Los Angeles 

Power 

Women 

Phyllis Klein

Young 

Leaders 

Award 

Angela Kelcher

50 Best 

Companies 

for 

Diversity

In-House 

Innovators 

Award 

Winner

Mortgage Women’s Magazine

50 Best 

Companies 

for Mortgage 

Women

(Ranked #4)
44 Fannie Mae 2016 Progress Report

Join the 

Conversation

We encourage you to share your feedback about how we can make 

housing in America better. Visit fanniemae.com to learn more 

about our company and join us on Facebook, Twitter, and LinkedIn 

to be part of the conversation.

Contact Us

800-2FANNIE 

800-232-6643)

http://fanniemae.com/

portal/about-fm/contact-us.html

Corporate News

Learn about our work and keep up 

on our progress. Connect with us on 

Facebook, Twitter, and YouTube.

Careers

If you’re ready to make a 

difference, then we’re ready for you. 

Connect with us on Glassdoor, Twitter, 

and LinkedIn.

KnowYourOptions.com

Fannie Mae’s Know Your Options website 

is your one-stop resource for housing 

education and foreclosure-prevention 

support. Connect with us on Facebook 

and Twitter.

HomePath.com

Visit Fannie Mae’s HomePath website 

to find Fannie Mae-owned properties 

for sale. Connect with us on Facebook, 

Twitter, YouTube, and Pinterest. 

(
Fannie Mae 2016 Progress Report 43
fanniemae.com/progress

3900 Wisconsin Avenue, NW

Washington, DC 20016

©2017 Fannie Mae. Reproduction of photographs contained in this Progress Report is prohibited.