February 21, 2014

Fannie Mae

2013 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, 2013, the “2013 Form 10-K.” Some of the terms used in these 

materials are defined and discussed more fully in the 2013 Form 10-K. These 

materials should be reviewed together with the 2013 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. 

 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.

 Unless otherwise indicated data labeled as “2013” is as of December 31, 2013 or 

for the full year of 2013.
2

Home Prices

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

One Year Home Price Change as of 2013 Q4 4

Home Price Change Peak-to-Current as of 2013 Q4 5

Credit Profile of Fannie Mae Single-Family Loans

Credit Characteristics of Single-Family Business Acquisitions 6

Credit Characteristics of Single-Family Business Acquisitions under the Refi PlusTM Initiative 7

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 9

Credit Characteristics of Single-Family Conventional Guaranty Book of Business by Select States 10

Credit Characteristics of Alt-A Loans in the Single-Family Conventional Guaranty Book of Business 11

Credit Characteristics of Refi Plus Loans in the Single-Family Conventional Guaranty Book of Business 12

Serious Delinquency Rates by Select States and Region of Single-Family Conventional Guaranty Book of Business 13

Workouts of Fannie Mae Single-Family Loans

Single-Family Completed Workouts by 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 Select States 17

Single-Family Short Sales and 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 2013 Credit Losses by State 22

Table of Contents
3

7.5% 7.6%

10.6% 11.3%

2.7%

-3.5%

-9.1%

-4.8% -4.3% -3.6%

4.2%

8.8%

-15%

-10%

-5%

0%

5%

10%

15%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

10.6% 10.7% 14.6% 14.7% -0.3% -8.4% -18.4% -2.5% -3.8% -3.7% 7.2% 11.7%

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

Fannie Mae Home Price Index

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

*Estimate based on purchase transactions in Fannie-Freddie acquisition and public deed data available through the end of January 2014. 

Including subsequent data may lead to materially different results. 

**Year-to-date as of Q3-2013. As comparison, Fannie Mae’s index for the same period is 8.7%.

S&P/Case-Shiller Index

*

Based on our home price index, we estimate that home prices on a national basis increased by 8.8% in 2013, following an 

increase of 4.2% in 2012. Despite the recent increases in home prices, we estimate that, through December 31, 2013, home 

prices on a national basis remained 13.5% below their peak in the third quarter of 2006. Our home price estimates are based on 

preliminary data and are subject to change as additional data become available. We estimate that home prices on a national 

basis increased by 0.2% in the fourth quarter of 2013.

**
4

T X

6 . 8 %

5 . 4 %

M T

7 . 3 %

0 . 3 %

C A

2 5 . 4 %

1 9 . 6 %

N M

3 . 0 %

0 . 5 %

C O

9 . 3 %

2 . 6 %

W Y

2 . 6 %

0 . 2 %

A Z

1 8 . 9 %

2 . 4 %

N V

2 7 . 2 %

1 . 0 %

U T

9 . 4 %

1 . 0 %

M N

7 . 3 %

I D 1 . 9 %

8 . 9 %

0 . 5 %

K S

3 . 2 %

0 . 5 %

O R

1 1 . 9 %

1 . 7 %

N E

5 . 3 %

0 . 4 %

S D

4 . 3 %

0 . 2 %

N D

7 . 7 %

0 . 1 %

O K

3 . 2 %

0 . 6 %

M O

4 . 1 %

1 . 3 %

I L

7 . 8 %

4 . 1 %

I A

2 . 9 %

0 . 7 %

W I

2 . 7 %

1 . 8 %

W A

1 0 . 9 %

3 . 5 %

A R

1 . 7 %

0 . 5 % A L

2 . 5 %

1 . 0 %

M S

2 . 4 %

0 . 4 %

G A

1 4 . 6 %

2 . 7 %

P A

3 . 1 %

O H 3 . 1 %

4 . 3 %

2 . 1 %

N C

3 . 9 %

2 . 5 %

N Y

4 . 8 %

5 . 6 %

L A

2 . 8 %

0 . 9 %

F L

1 7 . 0 %

5. 7 %

T N

3 . 3 %

1 . 3 %

K Y

2 . 7 %

0 . 6 %

V A

4 . 6 %

3 . 6 %

I N

3 . 4 %

1 . 2 %

M I

1 2 . 0 %

2 . 4 %

M E

4 . 1 %

0 . 3 %

S C

4 . 6 %

1 . 2 %

W V

1 . 1 %

0 . 2 %

M D

7 . 0 %

2 . 8 %

V T

1 . 9 %

0 . 2 %

N H

7 . 1 %

0 . 5 %

M A

7 . 7 %

3 . 1 %

N J

4 . 7 %

4 . 0 %

C T

2 . 7 %

1 . 4 %

D E

2 . 7 %

0 . 4 %

R I

4 . 0 %

0 . 3 %

D C

9 . 3 %

0 . 4 %

*Source: Fannie Mae. Home price estimates are based on purchase transactions in Fannie-Freddie acquisition and public deed data available through the end of January 2014. UPB 

estimates are based on data available through the end of December 2013. Including subsequent data may lead to materially different results.

One Year Home Price Change as of 2013 Q4*

United States 8.8%

0% to 5%

5% to 10%

10% and above

State Growth Rate

State: NM 

Growth Rate: 3.0% 

UPB %: 0.5% 

Example 

A K

4 . 0 %

0 . 2 % H I

9 . 0 %

0 . 8 %
5

T X

0 . 0 %

5 . 4 %

M T

- 1 . 3 %

0 . 3 %

C A

- 2 8 . 5 %

1 9 . 6 %

C O

0 . 0 %

2 . 6 %

N M

- 1 3 . 3 %

0 . 5 %

W Y

- 1 . 5 %

0 . 2 %

A Z

- 3 3 . 4 %

2 . 4 %

N E

0 . 0 %

N V 0 . 4 %

- 4 3 . 7 %

1 . 0 %

N D

0 . 0 %

0 . 1 %

O K

0 . 0 %

0 . 6 %

K S

- 0 . 6 %

0 . 5 %

O R

- 1 6 . 9 %

1 . 7 % S D

- 0 . 5 %

0 . 2 %

U T

- 1 1 . 8 %

1 . 0 %

M O

- 8 . 3 %

1 . 3 %

I A

- 0 . 6 %

0 . 7 %

W A

- 1 8 . 0 %

3 . 5 %

A R

- 3 . 2 %

0 . 5 %

A L

- 8 . 8 %

1 . 0 %

O H

- 9 . 9 %

2 . 1 %

M N

- 1 3 . 9 %

I D 1 . 9 %

- 1 8 . 5 %

0 . 5 %

W I

- 9 . 9 %

1 . 8 %

L A

0 . 0 %

0 . 9 %

N C

- 8 . 1 %

2 . 5 %

G A

- 1 8 . 6 %

2 . 7 %

M S

- 8 . 8 %

0 . 4 %

N Y

- 8 . 2 %

5 . 6 %

I L

- 2 0 . 6 %

4 . 1 %

F L

- 3 9 . 3 %

5. 7 %

P A

- 4 . 2 %

3 . 1 %

T N

- 5 . 8 %

1 . 3 %

K Y

- 1 . 0 %

0 . 6 %

I N

- 2 . 0 %

1 . 2 %

M I

- 2 1 . 8 %

2 . 4 %

V A

- 1 5 . 5 %

3 . 6 %

M E

- 9 . 5 %

0 . 3 %

S C

- 9 . 9 %

1 . 2 %

W V

0 . 0 %

0 . 2 %

V T

- 7 . 6 %

0 . 2 %

M D

- 2 3 . 4 %

2 . 8 %

N H

- 1 7 . 5 %

0 . 5 %

M A

- 1 2 . 8 %

3 . 1 %

N J

- 2 3 . 5 %

4 . 0 %

C T

- 1 9 . 6 %

1 . 4 %

D E

- 1 8 . 3 %

0 . 4 %

R I

- 2 9 . 8 %

0 . 3 %

D C

- 1 . 5 %

0 . 4 %

Home Price Change Peak-to-Current as of 2013 Q4*

United States -13.5%

Below -30%

-30% to -15%

-15% to -5%

-5% to 0%

0%

State Growth Rate

State: NM 

Growth Rate: -13.3% 

UPB %: 0.5% 

Example

*Source: Fannie Mae. Home price estimates are based on purchase transactions in Fannie-Freddie acquisition and public deed data available through the end of January 2014. UPB 

estimates are based on data available through the end of December 2013. Including subsequent data may lead to materially different results.

Note: Date of peak is determined for each state individually. States currently at peak prices show 0.0% change.

H I

- 1 0 . 3 %

0 . 8 %

A K

- 1 . 3 %

0 . 2 %
6

Acquisition Year 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

Unpaid Principal Balance (billions) $728.4 $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% 3.78% 4.35% 4.64% 4.93% 6.00% 6.51% 6.45% 5.73% 5.63%

Origination Loan-to-Value Ratio

 <= 60% 22.0% 25.3% 29.1% 30.3% 32.6% 22.7% 16.7% 18.6% 21.4% 23.1%

 >60% and <= 70% 13.9% 14.4% 15.5% 15.9% 17.0% 16.1% 13.5% 15.1% 16.3% 16.2%

 >70% and <= 80% 34.9% 34.4% 37.3% 38.5% 39.9% 39.5% 44.7% 49.6% 46.2% 43.1%

 >80% and <= 90% 10.5% 9.1% 8.9% 8.6% 6.9% 11.7% 9.1% 6.8% 7.4% 8.2%

 >90% and <= 100% (2) 11.5% 8.4% 6.8% 5.2% 3.3% 10.0% 15.8% 9.7% 8.5% 9.3%

 > 100% (2) 7.1% 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 75.7% 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) 70.3% 67.8% 66.6% 65.8% 65.8%

FICO Credit Scores (4)

 0 to < 620 1.4% 0.8% 0.5% 0.4% 0.4% 2.8% 6.4% 6.2% 5.4% 5.6%

 >=620 and < 660 3.4% 2.2% 1.8% 1.6% 1.5% 5.7% 11.5% 11.2% 10.7% 11.5%

 >=660 and < 700 9.7% 7.2% 7.0% 6.6% 6.5% 13.9% 19.2% 19.6% 18.9% 19.4%

 >=700 and < 740 18.2% 15.6% 16.2% 16.1% 17.2% 21.7% 22.6% 23.0% 23.2% 23.9%

 >=740 67.3% 74.1% 74.5% 75.1% 74.4% 55.8% 40.1% 39.7% 41.5% 39.2%

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

Weighted Average FICO Credit Score 753 761 762 762 761 738 716 716 719 715

Product Distribution

Fixed-rate 97.6% 96.7% 93.5% 93.7% 96.6% 91.7% 90.1% 83.4% 78.7% 78.8%

Adjustable-rate 2.4% 3.3% 6.5% 6.3% 3.4% 8.3% 9.9% 16.6% 21.3% 21.2%

Alt-A (5) 1.3% 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 0.2% 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 9.3% 7.2% 6.5% 4.6% 2.5% 5.6% 6.5% 7.0% 6.4% 5.4%

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

Refinance 70.2% 79.4% 76.5% 77.4% 79.9% 58.6% 50.4% 48.3% 53.1% 57.3%

Total Refi Plus Initiative (3) 22.5% 24.5% 24.3% 23.4% 10.6%

HARP 13.7% 15.6% 9.9% 9.8% 4.1%

Origination Loan-to-Value Ratio: 

>80% and <=105% 58.4% 57.2% 88.1% 94.4% 99.1%

>105% and <=125% 21.5% 22.1% 11.9% 5.6% 0.9%

>125% 20.1% 20.7%

HARP Weighted Average Origination Loan-to-Value Ratio 109.8% 111.0% 94.3% 92.2% 90.7%

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 acquisitions refer to single-family mortgage loans we acquire through 

purchase or securitization transactions. 

(2) The increase after 2009 is the result of the Home Affordable Refinance Program (“HARP”), which involves the refinance of existing Fannie Mae loans with high loan-to-value ratios, 

including loans with loan-to-value ratios in excess of 100%.

(3) Our Refi Plus initiative, which includes HARP, started in April 2009. Our Refi Plus initiative provides expanded refinance opportunities for eligible Fannie Mae borrowers.

(4) FICO credit score is as of loan origination, as reported by the seller of the mortgage loan.

(5) Newly originated Alt-A loans acquired after 2008 consist of the refinance of existing loans under our Refi Plus initiative. 
7

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 score is as of loan origination, as reported by the seller of the mortgage loan.

2013 2012 2011 2010 2009 2013 2012 2011 2010 2009

Unpaid Principal Balance (billions) $99.5 $129.9 $55.6 $59.0 $27.9 $64.4 $73.8 $81.2 $80.5 $44.7

Weighted Average Origination Note Rate 4.04% 4.14% 4.78% 5.00% 5.05% 3.80% 3.89% 4.44% 4.68% 4.85%

Origination Loan-to-Value Ratio

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

 >80% and <= 105% 58.4% 57.2% 88.1% 94.4% 99.1%

 >105% and <= 125% 21.5% 22.1% 11.9% 5.6% 0.9%

 >125% 20.1% 20.7%

Weighted Average Origination Loan-to-Value Ratio 109.8% 111.0% 94.3% 92.2% 90.7% 60.2% 61.1% 60.2% 62.3% 63.3%

FICO Credit Scores (2)

 0 to < 620 6.7% 3.7% 2.1% 2.0% 1.2% 5.3% 2.9% 1.7% 1.4% 0.8%

 >= 620 and < 660 9.5% 6.0% 3.8% 3.6% 2.5% 6.9% 4.2% 2.8% 2.4% 1.7%

 >=660 and < 700 17.5% 13.4% 11.6% 11.6% 9.6% 13.5% 9.8% 8.8% 8.0% 6.7%

 >=700 and < 740 21.2% 20.3% 21.0% 21.4% 22.3% 18.4% 16.2% 16.7% 15.9% 16.3%

 >=740 45.1% 56.6% 61.5% 61.2% 64.4% 55.8% 66.9% 70.0% 72.3% 74.5%

Weighted Average FICO Credit Score 722 738 746 746 749 737 753 758 760 762

Product Distribution

Fixed-rate 99.6% 99.3% 96.8% 97.2% 97.9% 99.3% 98.9% 97.6% 97.3% 98.1%

Adjustable-rate 0.4% 0.7% 3.2% 2.8% 2.1% 0.7% 1.1% 2.4% 2.7% 1.9%

Owner Occupied 78.6% 85.7% 86.3% 91.1% 95.2% 81.6% 87.2% 89.2% 91.8% 93.5%

Second/Vacation Home 3.1% 2.8% 3.6% 3.5% 3.3% 3.5% 3.2% 3.6% 3.5% 4.2%

Investor 18.3% 11.5% 10.1% 5.4% 1.6% 14.9% 9.6% 7.3% 4.7% 2.3%

Condo/Co-op 13.2% 10.9% 10.5% 10.1% 8.3% 9.3% 7.6% 5.8% 6.0% 6.8%

Acquisition Year

HARP (1) Other Refi Plus (1)
8

As of December 31, 2013

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 (6)

Subtotal of Key 

Product 

Features (1)

Overall

Book

Unpaid Principal Balance (billions) (2) $6.4 $80.7 $74.3 $155.0 $425.7 $21.1 $131.3 $4.2 $739.4 $2,820.4

Share of Single-Family Conventional Guaranty Book 0.2% 2.9% 2.6% 5.5% 15.1% 0.7% 4.7% 0.1% 26.2% 100.0%

Average Unpaid Principal Balance (2) $100,587 $234,819 $119,637 $131,294 $171,735 $131,430 $152,326 $142,220 $156,043 $160,357

Serious Delinquency Rate 4.95% 11.77% 9.91% 7.28% 3.48% 10.90% 9.23% 16.93% 5.67% 2.38%

Origination Years 2005-2008 54.6% 78.7% 46.0% 40.0% 14.3% 36.5% 61.1% 85.3% 31.0% 14.7%

Weighted Average Origination Loan-to-Value Ratio 70.5% 74.0% 80.8% 79.3% 105.3% 106.9% 77.1% 76.8% 90.7% 74.1%

Origination Loan-to-Value Ratio > 90% 0.3% 7.9% 28.4% 23.4% 100.0% 100.0% 13.2% 6.5% 57.6% 15.1%

Weighted Average Mark-to-Market Loan-to-Value Ratio 70.7% 91.8% 79.9% 77.3% 95.2% 103.3% 83.3% 94.7% 86.3% 66.7%

Mark-to-Market Loan-to-Value Ratio > 100% and <= 125% 15.5% 23.4% 14.5% 12.3% 18.6% 29.3% 17.4% 23.1% 15.6% 5.0%

Mark-to-Market Loan-to-Value Ratio > 125% 11.9% 13.6% 7.5% 6.5% 8.7% 17.4% 10.1% 16.0% 7.3% 2.2%

Weighted Average FICO (3) 706 724 584 642 728 585 714 618 704 744

FICO < 620 (3) 6.8% 1.5% 100.0% 5.0% 100.0% 2.0% 51.5% 10.1% 2.6%

Fixed-rate 4.0% 24.5% 81.5% 83.5% 94.2% 85.6% 65.2% 63.0% 82.8% 91.5%

Primary Residence 68.6% 85.2% 95.2% 93.1% 91.0% 95.3% 76.9% 96.9% 89.3% 88.2%

Condo/Co-op 12.8% 15.3% 4.8% 6.2% 10.4% 5.9% 10.1% 3.9% 9.6% 9.5%

Credit Enhanced (4) 38.8% 14.3% 25.2% 22.2% 57.4% 61.5% 12.8% 56.1% 37.1% 15.1%

% 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%

% of 2013 Credit Losses (5)(6) 0.8% 18.7% 7.0% 15.7% 20.8% 2.0% 26.0% -0.2% 63.4% 100.0%

Categories Not Mutually Exclusive (1)

(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, 2013.

(3) FICO credit score is as of loan origination, as reported by the seller of the mortgage loan.

(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. 

(5) Expressed as a percentage of credit losses for the single-family guaranty book of business. Does not reflect the impact of recoveries that have not been allocated to specific 

loans. For information on total credit losses, refer to Fannie Mae’s 2013 Form 10-K.

(6) Credit losses are negative due to recoveries recognized in the fourth quarter of 2013.

Credit Characteristics of Single-Family Conventional Guaranty Book of 

Business by Key Product Features 
9

As of December 31, 2013 Overall

Book 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 andEarlier

Unpaid Principal Balance (billions) (1) $2,820.4 $609.9 $728.0 $320.8 $280.2 $209.0 $80.3 $137.2 $98.7 $99.6 $256.7

Share of Single-Family Conventional Guaranty Book 100.0% 21.6% 25.8% 11.4% 9.9% 7.4% 2.8% 4.9% 3.5% 3.5% 9.1%

Average Unpaid Principal Balance (1) $160,357 $199,516 $199,440 $171,471 $170,319 $164,285 $152,148 $163,511 $148,107 $129,790 $77,966

Serious Delinquency Rate 2.38% 0.04% 0.17% 0.34% 0.56% 0.98% 6.69% 12.18% 11.26% 7.26% 3.50%

Weighted Average Origination Loan-to-Value Ratio 74.1% 76.1% 76.0% 71.4% 71.2% 69.8% 74.7% 78.3% 75.3% 73.5% 71.7%

Origination Loan-to-Value Ratio > 90% (2) 15.1% 19.4% 18.7% 12.7% 10.4% 6.6% 12.7% 20.9% 12.6% 9.8% 10.5%

Weighted Average Mark-to-Market Loan-to-Value Ratio 66.7% 71.1% 64.3% 59.2% 60.6% 62.5% 77.2% 94.2% 92.0% 78.0% 50.9%

Mark-to-Market Loan-to-Value Ratio > 100% and <= 125% 5.0% 3.7% 3.6% 0.8% 1.1% 1.4% 11.8% 24.0% 22.0% 13.2% 2.1%

Mark-to-Market Loan-to-Value Ratio > 125% 2.2% 1.7% 1.4% 0.0% 0.1% 0.1% 2.8% 13.2% 13.2% 5.2% 0.7%

Weighted Average FICO (3) 744 751 759 758 757 754 718 694 699 708 709

FICO < 620 (3) 2.6% 1.5% 1.0% 0.7% 0.7% 0.7% 5.4% 10.8% 8.6% 6.5% 7.2%

Interest Only 2.9% 0.2% 0.3% 0.6% 1.0% 1.0% 7.5% 18.1% 20.0% 13.1% 2.8%

Negative Amortizing 0.2% 0.1% 1.6% 1.8% 1.1%

Fixed-rate 91.5% 97.6% 97.4% 94.5% 95.4% 97.2% 77.8% 67.7% 66.5% 70.3% 82.5%

Primary Residence 88.2% 86.4% 88.6% 87.3% 89.3% 90.8% 87.0% 89.1% 87.0% 86.5% 90.0%

Condo/Co-op 9.5% 10.4% 9.2% 8.8% 8.6% 9.0% 11.3% 10.1% 11.0% 10.9% 8.0%

Credit Enhanced (4) 15.1% 19.9% 15.1% 10.2% 7.4% 6.9% 26.3% 31.0% 19.9% 15.2% 11.2%

% 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%

% of 2013 Credit Losses (5) 100.0% 0.1% 1.9% 1.7% 2.9% 3.4% 7.1% 30.2% 24.6% 15.8% 12.4%

Cumulative Default Rate (6) 0.0% 0.1% 0.2% 0.3% 0.5% 4.1% 12.7% 11.6% 7.0%

Origination Year

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, 2013.

(2) The increase after 2009 is the result of the Home Affordable Refinance Program (“HARP”), which involves the refinance of existing Fannie Mae loans with high loan-to-value 

ratios, including loans with loan-to-value ratios in excess of 100%.

(3) FICO credit score is as of loan origination, as reported by the seller of the mortgage loan.

(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. 

(5) Expressed as a percentage of credit losses for the single-family guaranty book of business. Does not reflect the impact of recoveries that have not been allocated to specific 

loans. For information on total credit losses, refer to Fannie Mae’s 2013 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 2003 and 2004 cumulative default 

rates, refer to slide 16.
10

As of December 31, 2013 Overall

Book AZ CA FL NV

Select Midwest 

States (1)

Unpaid Principal Balance (billions) (2) $2,820.4 $67.9 $551.4 $160.4 $27.1 $276.8

Share of Single-Family Conventional Guaranty Book 100.0% 2.4% 19.6% 5.7% 1.0% 9.8%

Average Unpaid Principal Balance (2) $160,357 $149,802 $226,815 $138,769 $155,002 $124,126

Serious Delinquency Rate 2.38% 1.12% 0.98% 6.89% 4.19% 2.43%

Origination Years 2005-2008 14.7% 18.2% 11.5% 30.0% 25.5% 14.1%

Weighted Average Origination Loan-to-Value Ratio 74.1% 83.1% 68.7% 80.9% 88.8% 78.5%

Origination Loan-to-Value Ratio > 90% 15.1% 25.6% 10.1% 22.2% 27.5% 20.5%

Weighted Average Mark-to-Market Loan-to-Value Ratio 66.7% 72.9% 57.6% 80.4% 84.7% 73.7%

Mark-to-Market Loan-to-Value Ratio >100% and <=125% 5.0% 10.6% 3.9% 13.6% 15.4% 7.2%

Mark-to-Market Loan-to-Value Ratio >125% 2.2% 4.8% 1.8% 11.6% 15.3% 3.5%

Weighted Average FICO (3) 744 745 753 731 740 739

FICO < 620 (3) 2.6% 2.3% 1.5% 4.4% 2.4% 3.5%

Interest Only 2.9% 5.2% 4.0% 5.8% 8.4% 1.8%

Negative Amortizing 0.2% 0.3% 0.6% 0.6% 0.8% 0.1%

Fixed-rate 91.5% 88.2% 90.0% 85.9% 83.2% 91.1%

Primary Residence 88.2% 79.1% 85.0% 81.3% 75.5% 92.5%

Condo/Co-op 9.5% 4.2% 12.6% 13.3% 5.3% 11.4%

Credit Enhanced (4) 15.1% 14.9% 7.4% 14.2% 13.9% 19.0%

% 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%

% of 2013 Credit Losses (5) 100.0% 1.4% 5.1% 28.9% 3.8% 21.8%

Credit Characteristics of Single-Family Conventional Guaranty Book of 

Business by Select States 

(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, 2013.

(3) FICO credit score is as of loan origination, as reported by the seller of the mortgage loan.

(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. 

(5) Expressed as a percentage of credit losses for the single-family guaranty book of business. Does not reflect the impact of recoveries that have not been allocated to specific 

loans. For information on total credit losses, refer to Fannie Mae’s 2013 Form 10-K.
11

As of December 31, 2013 Alt-A (1) 2013(2) 2012(2) 2011 (2) 2010 (2) 2009 (2) 2008 2007 2006 2005 2004 and

Earlier

Unpaid principal balance (billions) (3) $131.3 $8.2 $7.8 $5.7 $2.8 $1.1 $2.6 $27.4 $29.4 $20.8 $25.5

Share of Alt-A 100.0% 6.2% 5.9% 4.4% 2.1% 0.8% 2.0% 20.9% 22.4% 15.8% 19.5%

Weighted Average Origination Loan-to-Value Ratio 77.1% 96.9% 105.3% 75.3% 81.3% 76.7% 69.0% 75.1% 74.2% 73.1% 71.9%

Origination Loan-to-Value Ratio > 90% (4) 13.2% 52.4% 59.0% 26.4% 31.8% 23.0% 2.4% 8.6% 4.7% 3.3% 5.3%

Weighted Average Mark-to-Market Loan-to-Value Ratio 83.3% 89.2% 86.7% 62.8% 72.8% 71.5% 75.0% 96.7% 96.5% 84.2% 57.1%

Mark-to-Market Loan-to-Value Ratio > 100% and <=125% 17.4% 19.3% 19.7% 2.5% 4.8% 6.1% 11.2% 25.5% 25.3% 17.7% 3.8%

Mark-to-Market Loan-to-Value Ratio > 125% 10.1% 12.2% 11.7% 0.1% 0.2% 0.5% 2.9% 15.8% 16.8% 8.3% 0.9%

Weighted Average FICO (5) 714 710 721 740 727 729 719 705 708 719 715

FICO < 620 (5) 2.0% 9.6% 7.4% 3.1% 3.9% 4.4% 0.3% 0.7% 0.6% 0.5% 1.8%

Adjustable-rate 34.8% 0.4% 0.7% 2.5% 4.0% 3.7% 29.2% 41.6% 46.3% 50.5% 35.6%

Interest Only 25.6% 0.1% 8.1% 38.8% 39.6% 32.8% 16.6%

Negative Amortizing 2.6% 4.3% 6.7% 2.8%

Investor 18.9% 35.3% 29.8% 25.0% 13.0% 5.7% 17.3% 17.0% 15.2% 18.8% 16.7%

Condo/Co-op 10.1% 12.0% 11.1% 7.2% 8.9% 8.6% 6.3% 8.3% 10.5% 12.7% 9.7%

California 21.1% 23.9% 25.3% 25.5% 14.6% 13.9% 19.1% 21.0% 18.8% 19.5% 23.2%

Florida 11.5% 9.8% 11.6% 4.0% 3.3% 3.5% 10.0% 12.9% 13.6% 13.4% 9.4%

Credit Enhanced (6) 12.8% 7.9% 7.8% 2.1% 2.2% 1.4% 14.3% 16.5% 12.0% 11.1% 17.8%

Serious Delinquency Rate at December 31, 2012 11.36% 0.21% 1.05% 3.30% 4.89% 10.71% 17.41% 16.59% 11.76% 6.74%

Serious Delinquency Rate at December 31, 2013 9.23% 0.26% 0.82% 1.31% 3.47% 4.55% 10.35% 15.41% 14.63% 10.06% 6.07%

% 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%

% of 2013 Credit Losses (7) 26.0% 0.0% 0.1% 0.2% 0.2% 0.1% 0.2% 9.1% 9.6% 4.7% 1.9%

Cumulative Default Rate (8) 0.0% 0.3% 0.7% 3.1% 4.3% 10.2% 22.7% 20.9% 13.5%

Origination Year

Credit Characteristics of Alt-A Loans in the Single-Family Conventional 

Guaranty Book of Business

(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, 2013. 

(4) The increase after 2008 is the result of our HARP loans, which we began acquiring in April 2009 and which involve the refinance of existing Fannie Mae loans with high loan-tovalue ratios, including loans with loan-to-value ratios in excess of 100%.

(5) FICO credit score is as of loan origination, as reported by the seller of the mortgage loan.

(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 for which Fannie Mae has access to 

loan-level information. 

(7) Expressed as a percentage of credit losses for the single-family guaranty book of business. Does not reflect the impact of recoveries that have not been allocated to specific 

loans. For information on total credit losses, refer to Fannie Mae’s 2013 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-inlieu 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.
12

2013 2012 2011 2010 2009 2013 2012 2011 2010 2009

Unpaid Principal Balance (billions) $84.5 $124.8 $44.5 $41.6 $19.4 $54.2 $65.3 $52.9 $43.0 $19.0

Share of Single-Family Conventional Guaranty Book 3.0% 4.4% 1.6% 1.5% 0.7% 1.9% 2.3% 1.9% 1.5% 0.7%

Average Unpaid Principal Balance $175,880 $193,343 $201,448 $213,750 $220,796 $134,704 $141,962 $145,173 $155,763 $160,086

Share of Total Refinances 4.2% 6.1% 2.2% 2.0% 1.0% 2.7% 3.2% 2.6% 2.1% 0.9%

Weighted Average Origination Loan-to-Value Ratio 109.4% 112.7% 95.0% 93.1% 91.5% 60.3% 61.3% 60.7% 63.0% 65.0%

Origination Loan-to-Value Ratio > 90% 75.0% 77.9% 58.7% 53.7% 48.8%

Weighted Average Mark-to-Market Loan-to-Value Ratio 100.7% 93.4% 79.6% 81.5% 84.4% 56.3% 52.3% 50.2% 53.6% 58.1%

Weighted Average FICO (2) 721 736 744 742 744 735 750 754 755 753

FICO < 620 (2) 7.0% 4.0% 2.3% 2.4% 1.8% 5.6% 3.3% 2.1% 1.9% 1.7%

Fixed-rate 99.6% 99.5% 97.2% 97.5% 97.8% 99.3% 99.1% 97.8% 97.7% 98.1%

Primary Residence 78.2% 85.0% 85.8% 90.2% 94.5% 81.1% 86.7% 88.1% 90.5% 92.0%

Second/Vacation Home 3.1% 2.8% 3.4% 3.5% 3.2% 3.5% 3.1% 3.6% 3.6% 4.6%

Investor 18.6% 12.2% 10.8% 6.3% 2.2% 15.4% 10.2% 8.4% 5.9% 3.4%

Condo/Co-op 13.2% 11.0% 10.3% 9.8% 8.2% 9.5% 7.7% 5.9% 6.2% 7.3%

Serious Delinquency Rate

 Overall Serious Delinquency Rate 0.19% 0.63% 1.18% 1.90% 2.73% 0.05% 0.16% 0.34% 0.62% 1.00%

 Serious Delinquency Rate by MTMLTV Ratio:

 <=80% 0.09% 0.23% 0.63% 0.78% 1.08% 0.05% 0.16% 0.33% 0.56% 0.83%

 80% and <=105% 0.14% 0.60% 1.72% 2.69% 3.29% 0.05% 0.37% 2.85% 4.25% 3.87%

 105% and <=125% 0.28% 1.03% 3.29% 5.48% 7.82% 0.00% 2.56% 4.88%

 >125% 0.42% 1.57% 4.42% 6.80% 8.76% 0.00% 3.45%

Mark-to-Market Loan-to-Value Ratio

 <=80% 12.8% 29.7% 54.1% 47.6% 37.3% 99.5% 99.8% 99.7% 98.2% 93.4%

 80% and <=105% 56.4% 47.1% 42.7% 48.3% 57.1% 0.5% 0.2% 0.3% 1.8% 6.5%

 105% and <=125% 18.2% 14.7% 3.0% 3.7% 5.1% 0.0% 0.0% 0.1%

 >125% 12.5% 8.4% 0.2% 0.4% 0.6% 0.0% 0.0%

As of December 31, 2013

Origination Year

HARP (1) Other Refi Plus (1)

Credit Characteristics of Refi Plus Loans in the Single-Family Conventional 

Guaranty Book of Business

(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 score is as of loan origination, as reported by the seller of the mortgage loan.
13

0 %

1 %

2 %

3 %

4 %

5 %

6 %

7 %

2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4

Serious Delinquency Rate by Region (3)

Midwest Northeast Southeast Southwest West

0%

2%

4%

6%

8%

10%

12%

14%

2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4

Serious Delinquency Rate by Select States 

A Z CA FL NV Select Midwest States All

Serious Delinquency Rates by Select States and Region of Single-Family 

Conventional Guaranty Book of Business(1)

(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 39 in Fannie Mae’s 2013 Form 10-K.

(2)
14

63,228 63,761 61,492

54,651 54,074

0

25,000

50,000

75,000

2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 Number of Loans

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

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 and Fannie Mae, sells the home prior to foreclosure for less than the amount owed to 

pay off the loan, accrued interest and other expenses from the sale proceeds.
15

2010 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013

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

3 months post modification 81% 84% 84% 83% 84% 85% 84% 84% 85% 86% 83% 83%

6 months post modification 77% 78% 79% 79% 79% 78% 77% 80% 82% 79% 77% n/a

9 months post modification 72% 75% 77% 76% 74% 73% 76% 78% 78% 76% n/a n/a

12 months post modification 69% 74% 75% 72% 71% 73% 75% 76% 76% n/a n/a n/a

15 months post modification 68% 73% 72% 70% 71% 73% 74% 74% n/a n/a n/a n/a

18 months post modification 68% 71% 71% 70% 71% 72% 73% n/a n/a n/a n/a n/a

21 months post modification 66% 70% 72% 71% 71% 72% n/a n/a n/a n/a n/a n/a

24 months post modification 65% 71% 73% 71% 71% n/a n/a n/a n/a n/a n/a n/a

% Current or Paid Off

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. 
16

2003

2004

2005

2006 2007

2008

2009 2010 2013 2011 2012

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

11.0%

12.0%

13.0%

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

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Note: Defaults consist of 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, 2013 is 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 
17

2013 2012 2011 2010 2009 2008

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

Arizona 431 4,310 8,133 16,172 20,691 12,854 5,532 2,189 3,497

California 560 6,382 14,980 27,589 34,051 19,565 10,624 4,931 8,909

Florida 1,226 30,298 23,586 13,748 29,628 13,282 6,159 19,876 13,838

Nevada 638 2,233 3,014 8,406 9,418 6,075 2,906 1,360 1,379

Select Midwest States (1) 724 31,830 40,070 33,777 45,411 28,464 23,668 26,252 29,148

All other States 679 69,331 84,696 100,004 122,879 65,377 45,763 48,621 48,895

Total Acquisitions N/A 144,384 174,479 199,696 262,078 145,617 94,652 N/A N/A

Total Dispositions N/A (146,821) (187,341) (243,657) (185,744) (123,000) (64,843) N/A N/A

Ending Inventory N/A 103,229 105,666 118,528 162,489 86,155 63,538 N/A N/A

State

REO Inventory as 

of December 31, 

2013

REO Inventory as 

of December 31, 

2012

Average Days From 

Last Paid Installment 

to Foreclosure For 

Full Year 2013 (2) (3) (4)

REO Acquisitions and Dispositions (Number of Properties)

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

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

(2) Measured from the borrowers’ last paid installment on their mortgages to when the related properties were added to our REO inventory for foreclosures completed during full year of 

2013. 

(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 325, 407, 479, 529, 655, and 793 in each of the years 2008 through 2013, respectively.

(4) Home Equity Conversion Mortgages (HECMs) excluded from calculation.
18

70%

72% 74%

76%

78%

63%

64%

67%

68%

70%

68%

71%

75%

75%

74%

62%

65%

68% 68%

68%

58%

62%

66%

70%

74%

78%

Q4 Q1 Q2 Q3 Q4

2012 2013

Short Sales Gross Sales/ UPB Short Sales Net Sales/ UPB

REO Gross Sales/ UPB REO Net Sales/ UPB

Q4 Q1 Q2 Q3 Q4

CA 71.1% 72.2% 75.5% 78.7% 81.4%

AZ 69.9% 73.1% 76.5% 78.2% 79.2%

FL 63.7% 65.8% 68.8% 71.3% 73.6%

NV 59.1% 63.0% 67.1% 70.1% 73.6%

IL 67.3% 66.7% 68.6% 70.5% 72.7%

Top 5 67.0% 68.8% 71.7% 73.9% 76.3%

All Others 76.2% 76.7% 78.6% 79.8% 80.4%

Total 70.4% 71.7% 74.3% 76.2% 78.0%

Short Sales Gross 

Sales Price/UPB

2012 2013

Q4 Q1 Q2 Q3 Q4

CA 73.2% 78.0% 85.3% 86.7% 86.8%

FL 62.2% 64.5% 67.8% 70.7% 72.0%

MI 56.9% 59.9% 65.1% 67.8% 66.7%

IL 55.0% 57.2% 61.9% 63.2% 64.5%

OH 59.2% 61.7% 62.4% 64.6% 61.9%

Top 5 63.9% 66.9% 71.1% 71.7% 72.1%

All Others 72.2% 73.5% 77.6% 77.8% 76.2%

Total 68.5% 70.6% 74.6% 74.8% 74.2%

REO Gross Sales 2012 2013

Price/UPB

Single-Family Short Sales and REO Sales Price / UPB of Mortgage Loans(1) (2)

Gross Sales Price/UPB Trends on Direct Sale Dispositions(1) and Short Sales(2) Top 5 States(3)

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

seller/servicer, acquired by a mortgage insurance company, redeemed by a borrower, or 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. Properties disposed of in the fourth quarter of 2012 through structured rental transactions have 

been excluded from the Net/Gross Proceeds to UPB calculations.

(2) Calculated as the sum of sales proceeds received on short sales 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 charges/credits paid by or due to other parties at closing. 

(3) The states shown had the greatest volume of properties sold in 2013 in each respective category.
19

Total Multifamily Guaranty Book of Business 35,581 $198.9 100% 0.10% 100% 100% 100% 100%

Credit Enhanced Loans: 

Credit Enhanced 32,204 $181.1 91% 0.10% 1% 73% 83% 68%

Non-Credit Enhanced 3,377 $17.7 9% 0.13% 99% 27% 17% 32%

Origination loan-to-value ratio: (3)

Less than or equal to 70% 22,833 $110.1 56% 0.04% 46% 14% 18% 8%

Greater than 70% and less than or equal to 80% 10,366 $81.9 41% 0.17% 35% 71% 70% 89%

Greater than 80% 2,382 $6.9 3% 0.23% 18% 15% 12% 3%

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

DUS ® - Small Balance Loans(5) 8,762 $16.6 8% 0.24% 5% 7% 9% 7%

DUS ® - Non Small Balance Loans 12,454 $161.7 82% 0.06% -26% 71% 72% 61%

DUS ® - Total 21,216 $178.3 90% 0.08% -21% 78% 81% 68%

Non-DUS - Small Balance Loans(5) 13,589 $10.3 5% 0.50% 43% 16% 12% 10%

Non-DUS - Non Small Balance Loans 776 $10.3 5% 0.17% 78% 6% 7% 22%

Non-DUS - Total 14,365 $20.6 10% 0.34% 121% 22% 19% 32%

Maturity Dates:

Loans maturing in 2014 1,504 $6.8 3% 0.25% -16% 12% 5% 11%

Loans maturing in 2015 2,548 $12.8 6% 0.08% -2% 8% 6% 4%

Loans maturing in 2016 2,652 $14.0 7% 0.07% 33% 12% 8% 14%

Loans maturing in 2017 3,764 $18.4 9% 0.29% 81% 33% 21% 12%

Loans maturing in 2018 3,187 $17.9 9% 0.10% 1% 14% 21% 8%

Other maturities 21,926 $129.1 65% 0.08% 3% 22% 39% 51%

Loan Size Distribution:

Less than or equal to $750K 8,883 $2.6 1% 0.51% 13% 5% 5% 2%

Greater than $750K and less than or equal to $3M 12,262 $18.4 9% 0.38% 62% 17% 16% 16%

Greater than $3M and less than or equal to $5M 4,522 $16.6 8% 0.21% 4% 12% 11% 17%

Greater than $5M and less than or equal to $25M 8,559 $88.0 44% 0.10% -34% 55% 50% 48%

Greater than $25M 1,355 $73.4 37% 55% 11% 18% 17%

% of 2010 

Multifamily Credit 

Losses

% of 2011 

Multifamily Credit 

Losses

% of 2012 

Multifamily Credit 

Losses

As of December 31, 2013 Unpaid Principal 

Balance (Billions)

% of Multifamily 

Guaranty Book of 

Business (UPB)

% Seriously 

Delinquent Loan Counts (1)

% of 2013 

Multifamily Credit 

Losses (2)

(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 and may also cause other percentages to be greater than 100%.

(3) Weighted Average Origination loan-to-value ratio is 66% as of December 31, 2013.

(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 certain loans without our pre-review.

(5) Multifamily loans with an original unpaid balance of up to $3 million nationwide or up to $5 million in high cost markets.

Multifamily Credit Profile by Loan Attributes
20

As of December 31, 2013 Unpaid Principal 

Balance (Billions) 

% of Multifamily 

Guaranty Book of 

Business (UPB)

% Seriously 

Delinquent (1)

# of Seriously 

Delinquent loans (1)

% of 2013 Multifamily 

Credit Losses (2)

% of 2012 Multifamily 

Credit Losses (2)

% of 2011 Multifamily 

Credit Losses

% of 2010 Multifamily 

Credit Losses

Total Multifamily Guaranty Book of Business $198.9 100% 0.10% 102 100% 100% 100% 100%

By Acquisition Year:

2013 $29.1 15%

2012 $33.0 17% 0%

2011 $22.5 11% -2% 0%

2010 $16.1 8% 0.02% 1 96% 0%

2009 $15.9 8% 0.02% 2 -27% 7% 6% 2%

2008 $19.7 10% 0.17% 21 -12% 23% 31% 17%

2007 $23.9 12% 0.31% 38 13% 48% 33% 38%

2006 $13.8 7% 0.21% 13 45% 10% 7% 17%

2005 $10.0 5% 0.07% 4 10% 17% 3% 2%

Prior to 2005 $15.0 8% 0.38% 23 -23% -4% 20% 25%

(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 and may also cause other percentages to be greater than 100%.

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%

3.00%

Year

1

Year

2

Year

3

Year

4

Year

5

Year

6

Year

7

Year

8

Year

9 Cumulative Default Rate 

2005 2006 2007 2008 2009 2010 2011 2012 2013

2005

2007

2008

2006

2012 2011

2013

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%

Year

1

Year

2

Year

3

Year

4

Year

5

Year

6

Year

7

Year

8

Year

9 SDQ (%) 

2005 2006 2007 2008 2009 2010 2011 2012 2013

2013
21

Total Multifamily Guaranty Book of Business $198.9 100% 0.10% 100% 100% 100% 100%

Region: (3)

Midwest $17.5 9% 0.23% -38% 15% 23% 10%

Northeast $39.7 20% 0.11% -8% 10% 3% 5%

Southeast $42.9 21% 0.11% 12% 53% 42% 40%

Southwest $37.5 19% 0.09% -32% 8% 26% 40%

Western $61.3 31% 0.07% 166% 14% 6% 6%

Top Five States by UPB:

California $47.3 24% 0.05% 8% 1% 1% 2%

New York $23.6 12% 0.08% 2% 3% 0% 1%

Texas $19.5 10% 0.05% -16% 2% 19% 12%

Florida $10.6 5% 0.14% 23% 36% 10% 13%

Washington $7.2 4% 0.06% 1% 0% 0% 0%

Asset Class: (4)

Conventional/Co-op $177.6 89% 0.12% 99% 94% 96% 99%

Seniors Housing $12.8 6%

Manufactured Housing $5.4 3% 0% 3% 0% 0%

Student Housing $3.1 2% 1% 3% 4% 1%

Targeted Affordable Segment:

Privately Owned with Subsidy (5) $29.4 15% 0.06% -15% 3% 14% 6%

DUS & Non-DUS Lenders/Servicers:

DUS: Bank (Direct, Owned Entity, or Subsidiary) $70.4 35% 0.08% 7% 21% 29% 45%

DUS: Non-Bank Financial Institution $118.2 59% 0.11% 79% 70% 68% 50%

Non-DUS: Bank (Direct, Owned Entity, or Subsidiary) $9.0 5% 0.18% 4% 6% 1% 4%

Non-DUS: Non-Bank Financial Institution $1.1 1% 0.19% 10% 2% 1% 1%

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

% of 2010 

Multifamily 

Credit Losses

As of December 31, 2013

% of Multifamily 

Guaranty Book of 

Business (UPB)

% Seriously 

Delinquent (1)

% of 2011 

Multifamily 

Credit Losses

Unpaid Principal 

Balance (Billions)

% of 2012 

Multifamily 

Credit Losses

% of 2013 

Multifamily 

Credit Losses (2)

(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 and may also cause other percentages to be greater than 100%.

(3) For information on which states are included in each region, refer to footnote 9 to Table 39 in Fannie Mae’s 2013 Form 10-K.

(4) Conventional Multifamily/Cooperative Housing/Affordable Housing: Conventional Multifamily is a loan secured by a residential property comprised of five or more dwellings which offers market rental rates (i.e., not 

subsidized or subject to rent restrictions). Cooperative Housing is a multifamily loan made to a cooperative housing corporation and secured by a first or subordinated lien on a cooperative multifamily housing 

project that contains five or more units. Affordable Housing is a multifamily loan on a mortgaged property encumbered by a regulatory agreement or recorded restriction that limits rents, imposes income 

restrictions on tenants or places other restrictions on the use of the property. Manufactured Housing Communities: A multifamily loan secured by a residential development that consists of sites for manufactured 

homes and includes utilities, roads and other infrastructure. In some cases, landscaping and various other amenities such as a clubhouse, swimming pool, and tennis and/or sports courts are also included. 

Seniors Housing: A multifamily loan secured by a mortgaged property that is intended to be used for residents for whom the owner or operator provides special services that are typically associated with either 

“independent living” or “assisted living.” Some Alzheimer’s and skilled nursing capabilities are permitted. Dedicated Student Housing: Multifamily loans secured by residential properties in which college or graduate 

students make up at least 80% of the tenants. Dormitories are not included. 

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

restrictions.

Multifamily Credit Profile
22

Multifamily 2013 Credit Losses by State ($ Millions)*

Numbers: Represent 2013 credit losses for each state which totaled $52M as of December 31, 2013. States with no numbers had less than $500K in credit losses or less than $500K 

in credit-related income in 2013.

Shading: Represent Unpaid Principal Balance (UPB) for each state which totaled $198.9B as of December 31, 2013. 

Note: Negative values are the result of recoveries on previously charged-off amounts. 

Portfolio UPB

Concentration by State 

as of 12/31/2013

Example:

UPB in NY is $24B 

and 2013 Credit 

Losses are $1M

*Total state credit losses will not tie to total 2013 credit losses due to rounding.