FannieMaeFinancialSupplement

Q4andFullYear2018

February14,2019

© 2019FannieMae.TrademarksofFannieMae.
SomeofthetermsandotherinformationinthispresentationaredefinedanddiscussedmorefullyinFannieMae’sForm10-K

fortheyearendedDecember31,2018(“2018Form10-K”).Thispresentationshouldbereviewedtogetherwiththe2018Form

10-K,whichisavailableatwww.fanniemae.cominthe“AboutUs—InvestorRelations—SECFilings”section.Informationonor

availablethroughthecompany'swebsiteisnotpartofthissupplement.

Someoftheinformationinthispresentationisbaseduponinformationfromthird-partysourcessuchassellersandservicersof

mortgageloans.Althoughwegenerallyconsiderthisinformationreliable,wedonotindependentlyverifyallreported

information.

Duetorounding,amountsreportedinthispresentationmaynotaddtototalsindicated(or100%).

Unlessotherwiseindicated,dataisasofDecember31orforthefullyearindicated.

Notereferencesaretoendnotes,appearingonpages22to24.

Termsusedinpresentation

CAS:ConnecticutAvenueSecurities

CIRTTM:CreditInsuranceRiskTransferTM

CRT:creditrisktransfer

DTIratio:Debt-to-incomeratio

DUS:FannieMae’sDelegatedUnderwritingandServicingprogram

GDP:U.S.grossdomesticproduct

HARP:HomeAffordableRefinanceProgram,whichallowseligibleFannieMaeborrowerswithhighLTVratioloansto

refinanceintomoresustainableloans

LTVratio:loan-to-valueratio

MSA:metropolitanstatisticalarea

MTMLTVratio:mark-to-marketloan-to-valueratio

OLTVratio:originationloan-to-valueratio

RefiPlusTM:ourRefiPlusinitiative,whichoffersrefinancingflexibilitytoeligibleFannieMaeborrowers

REO:realestateowned

TCCA:TemporaryPayrollTaxCutContinuationActof2011

UPB:unpaidprincipalbalance

DSCR:DebtServiceCoverageRatio

§

§

§

§

§

§

© 2019FannieMae.TrademarksofFannieMae. 2018FinancialSupplement 1

®

®

®
TableofContents

CorporateFinancialHighlights

MarketLiquidity

KeyMarketEconomicIndicators

TreasuryDrawsandDividendPayments 7

6

5

4

FinancialOverview

Single-FamilyHighlights

CertainCreditCharacteristicsofSingle-FamilyLoanAcquisitions

CertainCreditCharacteristicsofSingle-FamilyConventionalGuarantyBookofBusiness

Single-FamilyCreditRiskTransfer

Single-FamilyProblemLoanStatistics

CreditLossConcentrationofSingle-FamilyConventionalGuarantyBookofBusiness

Single-FamilyCumulativeDefaultRates 15

14

13

12

11

10

9

Single-FamilyBusiness

MultifamilyHighlights

CertainCreditCharacteristicsofMultifamilyAcquisitions

CertainCreditCharacteristicsofMultifamilyGuarantyBookofBusiness

MultifamilySeriousDelinquencyRatesandCreditLosses 20

19

18

17

MultifamilyBusiness

FinancialOverviewEndnotes

Single-FamilyBusinessEndnotes

MultifamilyBusinessEndnotes 24

23

22

Endnotes

© 2019FannieMae.TrademarksofFannieMae. 2018FinancialSupplement 2
FinancialOverview

© 2019FannieMae.TrademarksofFannieMae. 2018FinancialSupplement 3
2018 2017 Variance

Netinterestincome

Feeandotherincome

Netrevenues

Investmentgains,net

Fairvaluegains(losses),net

Administrativeexpenses

Credit-relatedincome

Benefitforcreditlosses

Foreclosedpropertyexpense

Totalcredit-relatedincome

TemporaryPayrollTaxCutContinuationActof2011

(TCCA)fees

Otherexpenses,net

Incomebeforefederalincometaxes

Provisionforfederalincometaxes

NetIncome

Othercomprehensiveloss

Totalcomprehensiveincome $13,354

(142)

$13,496

11,844

1,652

258

(188)

1,172

(96)

1,268

(322)

2,332

(570)

(1,030)

(1,248)

$218

$2,257

(206)

$2,463

(15,984)

18,447

(1,511)

(2,096)

1,520

(521)

2,041

(2,737)

(1,211)

1,522

22,960

2,227

$20,733

$15,611

(348)

$15,959

(4,140)

20,099

(1,253)

(2,284)

2,692

(617)

3,309

(3,059)

1,121

952

21,930

979

$20,951

2014 2015 2016 2017 2018

0%

20%

40%

60%

80%

100%

%

NetInterestIncome

$0

$200

$400

$600

$800

$1,000

RetainedMortgagePortfolio($)Billions

$272.4

$345.1

$230.8

$413.3

$179.2

Netinterestincomefromretainedmortgageportfolioandotheractivities

Netinterestincomefromguarantyfeesandotherconsolidatedtrustincome

Retainedmortgageportfolioatendofperiod

KeyHighlights

Summaryof2018FinancialResults

SourcesofNetInterestIncomeandRetainedMortgage

PortfolioBalance

CorporateFinancialHighlights

© 2019FannieMae.TrademarksofFannieMae. 2018FinancialSupplement 4

_______________________________

_______________________________

_______________________________

_______________________________

_______________________________

_______________________________

Netincome

Netrevenues

(1)

Totalcomprehensiveincome

§ FannieMaereportednetincomeof$16.0billionfor

2018and$3.2billionforQ42018,reflectingthestrength

ofthecompany’sunderlyingbusinessfundamentals.

§ Theincreaseinpre-taxincomein2018,comparedwith2017,was

drivenprimarilybyashifttofairvaluegainsfromfairvaluelosses

andanincreaseincredit-relatedincome,partiallyoffsetbya

decreaseinfeeandotherincome.

§ The$16.0billionnetincomefor2018compareswith$2.5billionin

2017.Theincreasewasdrivenprimarilybytheabsenceofa$9.9

billionone-timechargeforfederalincometaxesrecordedin2017

andthelowercorporatetaxrateineffectasaresultoftheTaxCuts

_______________________________ andJobsActof2017.
2014 2015 2016 2017 2018

0.0M

0.5M

1.0M

1.5M

2.0M

2.5M

3.0M

0.8M

0.8M

0.6M

0.9M

0.9M

0.4M

0.7M

0.7M

1.0M

1.0M

1.4M

1.2M

1.2M

1.2M

1.1M

RentalUnits

HomePurchases(Loans)

MortgageRefinancings(Loans)

1.2M

HomePurchases

713K

Refinancings

777K

RentalUnits

KeyHighlights:

LiquidityProvided

FannieMaeprovided$512billioninliquiditytothemortgagemarketin2018,

throughitspurchasesofloansandguaranteesofloansandsecurities,whichenabled

thefinancingofapproximately1.9millionloansacquired,ofwhich1.2millionwere

homepurchasesand0.7millionwererefinancings.

ProvidingLiquiditytotheMortgageMarket

MarketLiquidity

© 2019FannieMae.TrademarksofFannieMae. 2018FinancialSupplement 5
12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018

0.0%

2.0%

4.0%

Rate(asofperiodend)

2.83%

3.00% 3.13% 3.00%

3.50%

0.90%

1.18%

1.45%

2.08%

2.66%

2.17% 2.27%

2.44%

2.41%

2.68%

2014 2015 2016 2017 2018

0.0%

2.0%

4.0%

6.0%

HomePriceGrowth

5.6% 5.6% 5.6%

4.5%

4.1%

2014 2015 2016 2017 2018

0.0%

2.0%

4.0%

6.0%

Rate(asofperiodend)

5.6%

4.1% 3.9%

2.5%

2.9%

1.6%

2.2%

3.4%

4.7%

5.0%

MN

NM

MD

MO

WA

WV

MA

WY

NH

ME

OH

MT

ND

MS

OR

OK

NV

NE

GA

NC

NY

DE

AR

CO

TN

UT

WI

KY VA CA

TX

MI

SD

PA

LA

NJ

AL

AZ

KS

FL

SC

IN

ID

IA

IL

BenchmarkInterestRates Single-FamilyHomePriceGrowthRate

U.S.GDPGrowthRateand

UnemploymentRate

OneYearHomePriceChangeasofQ42018

UnitedStates5.6%

KeyMarketEconomicIndicators

HI

AK

StateHomePrice

GrowthRate

ShareofFannie

MaeSingle-Family

Conventional

GuarantyBook

CA

TX

FL

NY

WA

IL

NJ

VA

CO

PA 3.0%

3.1%

3.4%

3.5%

3.6%

3.7%

4.9%

5.7%

6.4%

19.3%

5.2%

7.2%

3.6%

4.3%

3.5%

7.8%

5.8%

7.5%

3.6%

6.7%

Top10StatesbyUPB

© 2019FannieMae.TrademarksofFannieMae. 2018FinancialSupplement 6

StateGrowthRate

0to4.9%

5to9.9%

10%andabove

(2)

(2)

(2)

(3)

10-yearTreasuryrate

2-yearswaprate

30-yearFannieMBSparcouponrate

ChangebasedonFannieMaenationalhomepriceindex U.S.GDPGrowthRate,annualizedformostrecentperiod

U.S.UnemploymentRate
Drawsfrom

Treasury

Dividendpayments

toTreasury

Drawsfrom

Treasury

Dividendpayments

toTreasury

Drawsfrom

Treasury

Dividendpayments

toTreasury

Drawsfrom

Treasury

Dividendpayments

toTreasury

Drawsfrom

Treasury

Dividendpayments

toTreasury

$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

$160.0

$180.0

($)Billions

$144.8

$116.1

$0.0

$9.6

$12.0

$3.7

$0.0

$9.4

$175.8

$119.8

DrawsfromTreasury DividendpaymentstoTreasury

TreasuryDrawsandDividendPayments

TreasuryDrawsandDividendPayments:2008-2018

2008-2015 2016 2017 2018 Total

© 2019FannieMae.TrademarksofFannieMae. 2018FinancialSupplement 7

(5)

(4)
Single-FamilyBusiness

© 2019FannieMae.TrademarksofFannieMae. 2018FinancialSupplement 8
Private-labelsecurities

3%

Heldbylender

27%

FreddieMac

19%

FannieMae

27%

GinnieMae

24%

Q42017 Q12018 Q22018 Q32018 Q42018

$0

$50

$100

$150

$200

UPB($)Billions

0

10

20

30

40

50

BasisPoints

$88

$60

$69

$39

$70

$59

$52

$35

$72

$31

41.7

47.8

49.7 48.5

42.9

$128

$112 $110

$122

$101

Q42017 Q12018 Q22018 Q32018 Q42018

$0

$1,000

$2,000

$3,000

$4,000

UPB($)Billions

0

10

20

30

40

50

BasisPoints

$2,850 $2,870 $2,877 $2,890 $2,901

42.3 42.3 42.5 42.8 43.0

Refinance

Purchase

Averagechargedguarantyfeeonnewacquisitions,netofTCCA(bps)

Averagechargedguarantyfeeonconventionalguarantybook,netofTCCA(bps)

AverageUPBoutstandingofSingle-Familyconventionalguarantybook

KeyHighlights

2018MarketShare:Single-Family

MortgageAcquisitions

§ Single-familynetincomewas$13.7billionin2018,compared

with$1.5billionin2017.Theincreasewasdrivenprimarilybythe

absenceofaone-timechargeforfederalincometaxesrecordedin

2017thatresultedfromtheenactmentoftheTaxCutsandJobs

Actof2017.

§ Single-familynetincomewas$2.7billioninQ42018,compared

with$3.5billioninQ32018.Thedecreasewasdrivenprimarily

byfairvaluelossesinQ4comparedwithfairvaluegainsinQ3,

drivenbyadecreaseininterestratesinQ4.

§ Thesingle-familyguarantybookofbusinesscontinuedtogrowin

Q42018,whiletheaveragechargedguarantyfee(netofTCCA

fees)onthesingle-familyguarantybookinQ4wasrelatively

consistentwiththepriorquarterat43basispoints.

Single-FamilyConventionalLoanAcquisitions ConventionalGuarantyBookofBusiness

Single-FamilyHighlights

2018

$18,162M

Netinterestincome

$1,210M

Fairvaluegains,

net

$850M

Investmentgains,net

$13,746M

Netincome

$2,709M

Credit-relatedincome

© 2019FannieMae.TrademarksofFannieMae. 2018FinancialSupplement 9

(2)

(2)

(1) (1)
Q42017 FullYear2017 Q12018 Q22018 Q32018 Q42018

FullYear

2018

TotalUnpaidPrincipalBalance(UPB)($B)

TotalUPBexcludingRefiPlus($B)

WeightedAverageOriginationLTV(OLTV)Ratio

OriginationLTVRatio>90%

WeightedAverageFICO CreditScore

FICOCreditScore<660

DTIRatio>45%

Fixed-rate

Condo/Co-op 10%

98%

25%

6%

743

23%

77%

$441.1

$446.1

10%

99%

26%

6%

742

25%

78%

$100.3

$101.1

10%

98%

25%

6%

743

24%

78%

$121.4

$122.3

10%

98%

26%

6%

743

23%

77%

$109.1

$110.5

9%

98%

23%

6%

743

19%

75%

$110.3

$112.2

10%

97%

10%

6%

745

18%

75%

$487.7

$501.8

10%

98%

19%

6%

743

18%

76%

$125.2

$127.9

Loanswith

OLTV

Ratio>90%

Loanswith

FICOCredit

Score<660

Loanswith

DTI

Ratio>45%

10%

99%

100%

7%

734

23%

77%

$110.5

$110.5

7%

100%

29%

100%

641

18%

75%

$25.2

$26.5

9%

100%

25%

5%

738

100%

96%

$99.9

$100.5

2014 2015 2016 2017 2018

0%

20%

40%

60%

80%

100%

WeightedAverageOLTV

Ratio

0%

10%

20%

30%

40%

OriginationLTV>90%

77% 75% 74% 75% 77%

18% 18%

23%

16% 15%

2014 2015 2016 2017 2018

0%

20%

40%

60%

80%

100%

ShareofAcquisitions

20%

20%

30%

44%

22%

22%

33%

56%

65%

45%

52%

16%

19% 19%

12% 12%

OLTV>90%

WeightedAverageOLTVRatio

2014 2015 2016 2017 2018

0

200

400

600

800

WeightedAverageFICOCreditScore

0%

2%

4%

6%

8%

10%

12%

14%

FICOCreditScore<660

744 748 750 745 743

5% 6% 6%

4%

7%

FICOCreditScore<660

WeightedAverageFICOCreditScore

CertainCreditCharacteristicsofSingle-FamilyConventionalLoans

byAcquisitionPeriod

2018Acquisition

CreditProfileby

CertainProductFeatures

Origination

Loan-to-ValueRatio

FICOCreditScore AcquisitionsbyLoanPurpose

CertainCreditCharacteristicsofSingle-FamilyLoanAcquisitions

RefiPlusincludingHARP

Refinance(excludingcash-out&RefiPlus)

Cash-outrefinance

Purchase

© 2019FannieMae.TrademarksofFannieMae. 2018FinancialSupplement 10

(3)

(3)

(3)

(3)

®

(4)

(1) (4) Categoriesarenotmutuallyexclusive
Overall

Book

2004&

Earlier 2005-2008 2009-2015 2016 2017 2018

TotalUnpaidPrincipalBalance(UPB)($B)

AverageUnpaidPrincipalBalance

ShareofSingle-FamilyConventionalGuarantyBook

SeriousDelinquencyRate

WeightedAverageOriginationLTVRatio

OriginationLTVRatio>90%

WeightedAverageMark-to-MarketLTVRatio

WeightedAverageFICOCreditScore

ShareofLoanswithCreditEnhancement

Fixed-rate 99%

55%

742

75%

23%

78%

0.05%

13%

$228,998

$383.4

98%

71%

744

68%

19%

76%

0.23%

15%

$216,565

$432.0

99%

64%

751

60%

16%

74%

0.26%

16%

$213,468

$463.4

98%

37%

752

48%

17%

75%

0.43%

49%

$156,287

$1,409.2

92%

18%

695

61%

15%

76%

4.61%

5%

$123,457

$135.9

88%

7%

700

38%

14%

74%

2.69%

3%

$71,374

$79.5

98%

47%

746

57%

18%

75%

0.76%

100%

$170,076

$2,903.3

RefiPlus

IncludingHARP Alt-A

Loanswith

FICOCredit

Score<660

OriginationLTV

Ratio>90%

99%

76%

733

77%

100%

100%

1.18%

18%

$179,134

$516.5

98%

36%

629

60%

24%

79%

3.48%

7%

$134,921

$192.6

89%

8%

709

58%

19%

80%

3.35%

2%

$133,830

$56.1

99%

11%

730

53%

38%

86%

0.69%

11%

$133,970

$330.3

2014 2015 2016 2017 2018

0%

10%

20%

30%

40%

50%

60%

70%

WeightedAverageMTMLTV

0%

2%

4%

6%

8%

10%

%

MTMLTV>100%

60%

64%

62%

58% 57%

2%

3%

5%

1%

0%

2014 2015 2016 2017 2018

0

200

400

600

800

WeightedAverageFICOCreditScore

0%

5%

10%

15%

20%

%FICOCreditScore<660

744 744 745 745 746

7% 7% 7%

8% 8%

WeightedAverageMark-To-Market

Loan-to-Value(MTMLTV)Ratio

FICOCreditScore

2014 2015 2016 2017 2018

0.0%

2.0%

4.0%

6.0%

8.0%

SeriousDelinquencyRate

0.34%

6.39%

1.20%

6.55%

4.61%

7.60%

1.24%

8.39%

3.06%

1.55%

0.76%

1.89%

2.69%

0.53%

2.82%

0.35% 0.36% 0.36%

3.26% 3.28%

SeriousDelinquencyRatebyVintage

OriginationYear CertainProductFeatures

%FICOCreditScore<660

WeightedAverageFICOCreditScore

%MTMLTV>100%

WeightedAverageMTMLTV

CertainCreditCharacteristicsofSingle-FamilyConventionalGuarantyBookofBusiness

CertainCreditCharacteristicsofSingle-FamilyConventionalGuarantyBookofBusinessbyOriginationYearandProductFeatures

Totalsingle-familyconventionalguarantybookofbusiness

2004andPrior

2005-2008

2009-2018

AsofDecember31,2018

Categoriesarenotmutuallyexclusive

© 2019FannieMae.TrademarksofFannieMae. 2018FinancialSupplement 11

(5)

(6)

(8)

(3)

(10)

(3)

(9)

(7)

(7)

(1) (3)
2014 2015 2016 2017 2018

$0

$500

$1,000

$1,500

UPB($)Billions

0%

10%

20%

30%

40%

%Single-FamilyConventionalGuarantyBook

$1,143

$628

$250

$429

$927

9%

39%

22%

15%

32%

%Single-familyconventionalguarantybookinaCRTtransaction

UPBoutstandingofloansinaCRTtransaction

Single-FamilyLoansIncludedinCreditRiskTransfer

Transactions,BalanceofCoveredLoans

Single-FamilyCreditRiskTransfer

Single-FamilyLoanswithCreditEnhancement

Single-FamilyCreditRiskTransferIssuance

2016

Outstanding

UPB

Percentof

Book

Outstanding

2017

Outstanding

UPB

Percentof

Book

Outstanding

2018

Outstanding

UPB

Percentof

Book

Outstanding

Primarymortgageinsurance&other

ConnecticutAvenueSecurities (CAS)

CreditInsuranceRiskTransferTM (CIRTTM)

Lenderrisk-sharing

(Less:loanscoveredbymultiplecredit

enhancements)

TotalUPBofsingle-familyloanswithcredit

enhancement

33%

(8%)

1%

4%

18%

18%

$925

($211)

$23

$101

$503

$509

40%

(12%)

2%

6%

24%

20%

$1,158

($335)

$65

$181

$681

$566

47%

(13%)

4%

8%

27%

21%

$1,367

($394)

$102

$243

$798

$618

2013 2014 2015 2016 2017 2018

$0

$100

$200

$300

$400

UPB($)Billions

$240 $206

$222

$265

$102

$189

$40

$86

$44

$45

$76

$27

$32

$233 $239

$331

$410

$338

Lenderrisk-sharing ConnecticutAvenueSecurities CreditInsuranceRiskTransfer

CreditEnhancement

OutstandingUPBin($)Billions

© 2019FannieMae.TrademarksofFannieMae. 2018FinancialSupplement 12

___________________________________________________________________________________________

___________________________________________________________________________________________

(13)

(12)

(11)

(12)

(13)

®

Note:CRTissuancevolumesaredrivenbyrecentacquisitionactivity.
NM

MN

MD

MO

WA

WV

MA

WY

NH

ME

OH

MT

ND

MS

OR

OK

NV

NE

GA

NC

NY

DE

AR

TN

UT CO

WI

KY VA 

CA

TX

MI

SD

PA

LA

NJ

AL

AZ

KS

FL

SC

IN

ID

IA

IL

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

2014 2015 2016 2017 2018

$0

$10

$20

$30

$40

UPB($)Billions

0

50

100

150

200

NumberofLoanWorkouts(Thousands)

$16.6 $14.4 $14.6

$17.9

$21.7

$6.6

$4.2

$3.1 $2.1

164.6K

122.3K

118.1K

103.5K 100.6K

$28.3

$20.7

$17.5 $16.7

$19.0

2014 2015 2016 2017 2018

0K

20K

40K

60K

80K

100K

REOEndingInventory

87K

57K

38K

26K

20K

Single-FamilyProblemLoanStatistics

Single-FamilySeriousDelinquencyRatebyStateasofDecember31,2018

Single-FamilyLoanWorkouts REOEndingInventory

AK

HI

PR

VI

State

Serious

Delinquency

Rate

Average

Monthsto

Foreclosure

CA

TX

FL

NY

WA

IL

NJ

VA

CO

PA 24

17

14

55

23

36

66

46

23

20

1.07%

0.23%

0.54%

1.38%

0.98%

0.38%

1.40%

1.16%

0.62%

0.34%

Top10StatesbyUPB

ForeclosureAlternatives

HomeRetentionSolutions

LoanWorkouts(inThousands)

© 2019FannieMae.TrademarksofFannieMae. 2018FinancialSupplement 13

(15)

(16)

(10)

(14)
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018

Alt-A

InterestOnly

OriginationLTVRatio>90%

FICOCreditScore<660andOriginationLTVRatio>90%

FICOCreditScore<660

RefiPlusincludingHARP 11.4%

6.6%

1.6%

17.8%

0.8%

1.9%

13.2%

7.0%

1.7%

16.7%

1.2%

2.5%

15.4%

7.3%

1.8%

16.4%

1.7%

3.1%

17.6%

7.8%

2.0%

16.3%

2.1%

3.7%

19.1%

8.0%

2.0%

15.9%

2.5%

4.2%

13.2%

34.0%

8.8%

21.4%

15.4%

22.4%

15.9%

33.0%

9.0%

23.9%

15.7%

21.9%

14.0%

35.8%

8.8%

21.9%

12.2%

24.9%

7.8%

29.7%

6.5%

16.4%

18.0%

29.3%

10.4%

29.7%

6.6%

15.3%

10.2%

17.4%

2014 2015 2016 2017 2018 2014 2015 2016 2017 2018

2009-2018

2005–2008

2004&Prior 2.7%

4.7%

92.6%

3.5%

6.2%

90.3%

4.5%

8.1%

87.4%

5.8%

10.1%

84.1%

7.3%

12.2%

80.5%

13.8%

65.8%

20.4%

12.2%

64.8%

23.1%

16.4%

64.7%

19.0%

12.1%

77.6%

10.3%

12.0%

74.7%

13.3%

62.9%

19.3%

4.9%

3.6%

3.5%

5.7%

49.0%

10.0%

10.3%

10.5%

12.2%

8.1%

AllOtherStates

California

Florida

Illinois

NewJersey

NewYork

AllOtherStates

California

Florida

Illinois

NewJersey

NewYork

CreditLossConcentrationofSingle-FamilyConventionalGuarantyBookofBusiness

%ofSingle-FamilyConventionalGuarantyBookofBusiness

%ofSingle-FamilyCreditLosses

ForthePeriodEnded

%ofSingle-FamilyConventionalGuarantyBookofBusiness

byStateasofDecember31,2018

%ofQ42018Single-FamilyCreditLossesbyState

© 2019FannieMae.TrademarksofFannieMae. 2018FinancialSupplement 14

100%

$2.9T

100%

$2.6B

(17)

(18)

(9)

CertainProductFeatures

Categoriesarenotmutuallyexclusive

Vintage

(3)

(3)
Yr1-Q1

Yr1-Q2

Yr1-Q3

Yr1-Q4

Yr2-Q1

Yr2-Q2

Yr2-Q3

Yr2-Q4

Yr3-Q1

Yr3-Q2

Yr3-Q3

Yr3-Q4

Yr4-Q1

Yr4-Q2

Yr4-Q3

Yr4-Q4

Yr5-Q1

Yr5-Q2

Yr5-Q3

Yr5-Q4

Yr6-Q1

Yr6-Q2

Yr6-Q3

Yr6-Q4

Yr7-Q1

Yr7-Q2

Yr7-Q3

Yr7-Q4

Yr8-Q1

Yr8-Q2

Yr8-Q3

Yr8-Q4

Yr9-Q1

Yr9-Q2

Yr9-Q3

Yr9-Q4

Yr10-Q1

Yr10-Q2

Yr10-Q3

Yr10-Q4

Yr11-Q1

Yr11-Q2

Yr11-Q3

Yr11-Q4

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

CumulativeDefaultRate

2007

2008

2002

2017 2016

2006

2005

2004

2003

2018

2015

2014 2013 2012 2011

2010

2009

Single-FamilyCumulativeDefaultRates

CumulativeDefaultRatesofSingle-FamilyConventionalGuarantyBookofBusinessbyOriginationYear

2002

2003

2004

2005

2006

2007

2008

2009*

2010*

2011*

2012*

2013*

2014*

2015*

2016*

2017*

2018*

TimeSinceBeginningofOriginationYear

© 2019FannieMae.TrademarksofFannieMae. 2018FinancialSupplement 15

*AsofDecember31,2018,cumulativedefaultratesonloansoriginatedfrom2009-2018werelessthan1%

(19)
MultifamilyBusiness

© 2019FannieMae.TrademarksofFannieMae. 2018FinancialSupplement 16
MultifamilyHighlights

2018 Acquisitions GuarantyBookofBusiness

Q42017 Q12018 Q22018 Q32018 Q42018

$0.0

$5.0

$10.0

$15.0

$20.0

UPB($)Billions

$20.3

$11.3

$14.5

$18.2

$21.4

MultifamilyGuarantyFeeand

CreditLoss(Benefit)Ratio

Q42017 Q12018 Q22018 Q32018 Q42018

$0

$100

$200

$300

$400

UPB($)Billions

0%

20%

40%

60%

80%

100%

ShareofMultifamilyGuarantyBookwith

LenderRiskSharing

$305.9

$281.3 $287.6 $296.1

$277.3

96% 97% 97% 97% 98%

Shareofguarantybookwithlenderrisk-sharing

UPBoutstandingofMultifamilyguarantybookofbusiness

KeyHighlights

Q42017 Q12018 Q22018 Q32018 Q42018

0

20

40

60

80

100

BasisPoints

78.7 77.0

(0.7)

1.0

78.9 78.6

75.4

0.6 0.6 0.3

Annualizedcreditloss(benefit)ratio

Averagechargedguarantyfeeatendofperiod(bps)

§ Multifamilynetincomewas$2.2billionin2018and$580

millioninQ42018.Netincomeincreasedin2018driven

primarilybytheabsenceofaone-timechargeforfederalincome

taxesrecordedin2017thatresultedfromtheenactmentofthe

TaxCutsandJobsActof2017.

§ FannieMaecontinuedtosharecreditriskwithlendersonnearly

100%ofthecompany’snewbusinessthroughitsDelegated

UnderwritingandServicing(DUS )program.Inaddition,

thecompanycompleteditsthirdandfourthmultifamilyCredit

InsuranceRiskTransferTM (CIRTTM)transactionsin2018,which

coveredapproximately$22billioninloans.

§ Themultifamilyguarantybookofbusinesscontinuedtogrowin

Q42018reachingover$300billion,whiletheaveragecharged

guarantyfeeonthemultifamilybookdecreasedslightlyto75.4

basispointsasofDecember31,2018.

Otherrentalbusinessvolume Multifamilynewbusinessvolume

$2,789M

Netinterestincome

$529M

Feeandother

income

$17M

Credit-related

expense

$89M

Fairvaluelosses

$2,213M

Netincome

© 2019FannieMae.TrademarksofFannieMae. 2018FinancialSupplement 17

(1)

(2)

®
CertainCreditCharacteristicsofMultifamilyAcquisitions

2014 2015 2016 2017 2018

0%

20%

40%

60%

80%

100%

ShareofAcquisitions

48% 48% 50%

66%

49%

43%

33%

57%

51% 51%

%OLTVlessthanorequalto70%

%OLTVgreaterthan70%andlessthanorequalto80%

%OLTVgreaterthan80%

2014 2015 2016 2017 2018

0%

20%

40%

60%

80%

100%

ShareofAcquisitions

80%

20%

89%

28% 23%

79%

72% 77%

21%

$2.4B $2.6B 11%

$2.2B

$4.3B

$2.3B

$3.5B

$3.5B

$1.8B

$1.6B

$1.6B

VariableRate

FixedRate

2014 2015 2016 2017 2018

TotalUnpaidPrincipalBalance(UPB)($B)

WeightedAverageOriginationLTVRatio

LoanCount

%LenderRecourse

%DUSTM 99%

100%

3,723

65%

$65.4

98%

100%

3,861

67%

$67.1

99%

99%

3,335

68%

$55.3

99%

99%

2,869

68%

$42.4

99%

99%

2,361

68%

$28.9

CertainCreditChacteristicsofMultifamilyLoansbyAcquisitionPeriod

OriginationLoan-to-ValueRatio AcquisitionsbyNoteType

Top10MSAsby2018

AcquisitionUPB

Atlanta

Dallas

Houston

LosAngeles

NewYork

Phoenix

SanDiego

SanFrancisco

Seattle

Washington,DC

© 2019FannieMae.TrademarksofFannieMae. 2018FinancialSupplement 18

(3)

(4)

Shareof

Acquistions:39.5%

TotalUPB:$25.8B

Categoriesarenotmutuallyexclusive
CertainCreditCharacteristicsofMultifamilyGuarantyBookofBusiness

2014 2015 2016 2017 2018

0%

20%

40%

60%

80%

100%

ShareofMultifamilyBookofBusiness

80% 80%

20% 20%

82% 85%

18%

81%

19% 15%

$8.9B

$26.4B $20.8B

$12.3B

$14.7B

$8.8B

$9.8B

$7.6B

$7.3B

$9.1B

Atlanta

Chicago

Dallas

Houston

LosAngeles

NewYork

Phoenix

SanFrancisco

Seattle

Washington,DC

Overall

Book

2004&

Eariler 2005-2008 2009-2015 2016 2017 2018

TotalUnpaidPrincipalBalance(UPB)($B)

AverageUnpaidPrincipalBalance($M)

WeightedAverageOriginationLTVRatio

WeightedAverageDSCR

%Fixed-rate

LoanCount

%ofBook

%ofSmallBalanceLoans

%LenderRecourse

%DUS

SeriousDelinquencyRate 0.01%

99%

100%

16%

21%

3,719

89%

1.9

65%

$17.6

$65.3

0.06%

97%

100%

18%

21%

3,723

82%

1.9

67%

$17.4

$64.9

0.00%

99%

99%

19%

16%

2,970

82%

2.0

68%

$16.8

$49.8

0.09%

98%

96%

39%

37%

11,951

91%

2.0

66%

$9.4

$112.1

0.39%

86%

77%

87%

3%

3,882

49%

2.2

66%

$2.2

$8.4

0.00%

97%

95%

67%

2%

1,135

18%

3.0

70%

$4.8

$5.4

0.06%

98%

98%

39%

100%

27,380

85%

2.0

66%

$11.2

$305.9

Conventional

/Co-op Senior Student Manufactured

0.00%

100%

100%

27%

4%

1,007

88%

2.1

67%

$11.1

$11.2

0.00%

100%

99%

14%

4%

594

83%

1.8

67%

$19.7

$11.7

0.00%

98%

100%

2%

5%

668

62%

2.0

67%

$23.6

$15.8

0.07%

98%

97%

41%

87%

25,111

86%

2.0

66%

$10.6

$267.3

CertainCreditCharacteristicsofMultifamilyBookofBusinessbyAcquisitionYear,AssetClass,orTargetedAffordableSegment

UPBbyMaturityYear

MultifamilyBookofBusiness

byNoteType

Top10MSAsbyUPB

$5.9B$9.5B

$237.0B

$20.4B

$19.9B

$13.3B

2019

2020

2021

2022

2023

Other

VariableRate

FixedRate

AcquisitionYear AssetClassorTargetedAffordableSegment

PrivatelyOwned

withSubsidy

0.10%

95%

96%

40%

12%

3,754

71%

2.2

69%

$9.4

$35.4

© 2019FannieMae.TrademarksofFannieMae. 2018FinancialSupplement 19

(3)

(9)

(4)

(8)

AsofDecember31,2018

Categoriesarenotmutuallyexclusive

ShareofBook

ofBusiness:100%

TotalUPB:$305.9B

ShareofBook

ofBusiness:41.1%

TotalUPB:$125.8B

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

(1)

(7)
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

0.0%

0.5%

1.0%

1.5%

2.0%

CreditLossRate

0.0%

0.2%

0.1%

0.0%

0.4%

0.3%

0.0%

0.4%

0.5%

0.8%

0.9%

0.2%

0.9%

1.2%

1.1%

0.8%

0.9%

1.4%

0.3%0.3%

0.1% 0.1%

0.0%

0.1%

0.0% 0.0% 0.0% 0.0% 0.0%0.0% 0.0%

DUSCreditLossRate TotalCreditLossRate Non-DUSCreditLossRate

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

SeriousDelinquencyRate

1.36%

0.55%

0.34%

0.15%

0.07% 0.05%

0.56%

0.11%

0.06%

0.44%

1.20%

0.24%

0.71%

0.21% 0.21%

0.18%

0.24%

0.63%

0.50%

0.10%

0.59%

0.08% 0.07% 0.08%

0.05% 0.07%

0.39%

0.92%

DUSSeriousDelinquencyRate

MultifamilyTotalSeriousDelinquencyRate

Non-DUSSeriousDelinquencyRate

DUS/Non-DUSCumulativeCreditLossRatesbyAcquisitionYearThrough2018

SeriousDelinquencyRates

2013 2014 2015 2016 2017 2018

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

BasisPoints

2.5

(0.2)

0.6

(0.7)

(2.7)

(2.3)

CreditLoss(Benefit)Ratio

MultifamilySeriousDelinquencyRatesandCreditLosses

© 2019FannieMae.TrademarksofFannieMae. 2018FinancialSupplement 20

(4)(10)

(4)(9) (2)(11)
Endnotes

© 2019FannieMae.TrademarksofFannieMae. 2018FinancialSupplement 21
FinancialOverviewEndnotes

Guarantyfeeincomeincludestheimpactofa10basispointguarantyfeeincreaseimplementedin2012pursuanttotheTemporaryPayrollTaxCutContinuationActof

2011,theincrementalrevenuefromwhichisremittedtoTreasuryandnotretainedbythecompany.

HomepriceestimatesarebasedonpurchasetransactionsinFannie-FreddieacquisitionandpublicdeeddataavailablethroughtheendofDecember2018.Including

subsequentdatamayleadtomateriallydifferentresults.Homepricechangeisnotseasonallyadjusted.UPBestimatesarebasedondataavailablethroughtheendof

December2018,andthetop10statesarereportedbyUPBindescendingorder.

Source:BureauofEconomicAnalysis.GDPgrowthratefor2018istheannualizedgrowthrateforQ32018,themostrecentperiodforwhichdataareavailable.

Underthetermsoftheseniorpreferredstockpurchaseagreement,dividendpaymentswemaketoTreasurydonotoffsetourpriordrawsoffundsfromTreasury,and

wearenotpermittedtopaydowndrawswehavemadeundertheagreementexceptinlimitedcircumstances.

Treasurydrawsareshownintheperiodforwhichrequested,notwhenthefundswerereceivedbyus.Drawrequestshavebeenfundedinthequarterfollowinganet

worthdeficit.

(1)

a

(2)

a

(3)

(4)

a

(5)

© 2019FannieMae.TrademarksofFannieMae. 2018FinancialSupplement 22
Single-FamilyBusinessEndnotes

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

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

single-familymortgage-relatedsecuritiesheldinourretainedmortgageportfolioforwhichwedonotprovideaguaranty.Conventionalreferstomortgageloansand

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

Calculatedbasedontheaverageguarantyfeerateforoursingle-familyguarantyarrangementsduringtheperiodplustherecognitionofanyupfrontcashpaymentsoveran

estimatedaveragelife.Excludestheimpactofa10basispointguarantyfeeincreaseimplementedin2012pursuanttotheTCCA,theincrementalrevenuefromwhichisremittedto

Treasuryandnotretainedbyus.

FICOcreditscoreisasofloanorigination,asreportedbythesellerofthemortgageloan.

PopulationexcludesHARPandotherRefiPlusloansacquiredunderourRefiPlusTM initiative.

Calculatedbasedontheaggregateunpaidprincipalbalanceofsingle-familyloansforeachcategorydividedbytheaggregateunpaidprincipalbalanceofloansinoursingle-family

conventionalguarantybookofbusiness.Loanswithmultipleproductfeaturesareincludedinallapplicablecategories.

ForadescriptionofourAlt-Aloanclassificationcriteria,refertotheglossaryinFannieMae’s2018Form10-K.WediscontinuedthepurchaseofnewlyoriginatedAlt-Aloansin

2009,exceptforthosethatrepresenttherefinancingofaloanweacquiredpriorto2009,whichhasresultedinouracquisitionsofAlt-Amortgageloansremaininglowandthe

percentageofthebookofbusinessattributabletoAlt-Atocontinuetodecreaseovertime.

“Seriousdelinquencyrate"referstosingle-familyconventionalloansthatare90daysormorepastdueorintheforeclosureprocessintheapplicableoriginationyear,product

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

Theaverageestimatedmark-to-marketLTVratioisbasedontheunpaidprincipalbalanceoftheloandividedbytheestimatedcurrentvalueoftheproperty,whichwecalculate

usinganinternalvaluationmodelthatestimatesperiodicchangesinhomevalue.Excludesloansforwhichthisinformationisnotreadilyavailable.

Percentageofloansinoursingle-familyconventionalguarantybookofbusiness,measuredbyunpaidprincipalbalance,includedinanagreementusedtoreducecreditriskby

requiringcollateral,lettersofcredit,mortgageinsurance,corporateguarantees,inclusioninacreditrisktransfertransactionreferencepool,orotheragreementthatprovidesfor

ourcompensationtosomedegreeintheeventofafinanciallossrelatingtotheloan.BecauseweincludeloansinreferencepoolsforourConnecticutAvenueSecuritiesandCredit

InsuranceRiskTransfercreditrisktransfertransactionsonalaggedbasis,weexpectthepercentageofour2018single-familyloanacquisitionswithcreditenhancementwill

increaseinthefuture.

Theaggregateestimatedmark-to-marketLTVratioisbasedontheunpaidprincipalbalanceoftheloanasoftheendofeachperioddividedbytheestimatedvalueoftheproperty

asoftheendoftheperiod.

Referstoloansincludedinanagreementusedtoreducecreditriskbyrequiringprimarymortgageinsurance,collateral,lettersofcredit,corporateguarantees,orotheragreements

toprovideanentitywithsomeassurancethatitwillbecompensatedtosomedegreeintheeventofafinancialloss.Excludesloanscoveredbycreditrisktransfertransactions

unlesssuchloansarealsocoveredbyprimarymortgageinsurance.

Outstandingunpaidprincipalbalancerepresentstheunderlyingloanbalance,whichisdifferentfromthereferencepoolbalanceforCASandsomelenderrisk-sharing

transactions.

Includesmortgagepoolinsurancetransactionscoveringloanswithanunpaidprincipalbalanceofapproximately$7billionatissuanceandapproximately$4billionoutstanding

asofDecember31,2018.

Measuredfromtheborrowers’lastpaidinstallmentontheirmortgagestowhentherelatedpropertieswereaddedtoourREOinventoryforforeclosurescompletedduringthe

twelvemonthsof2018.HomeEquityConversionMortgagesinsuredbytheDepartmentofHousingandUrbanDevelopmentareexcludedfromthiscalculation.

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

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

Consistsof(a)modifications,whichdonotincludetrialmodifications,loanstocertainborrowerswhohavereceivedbankruptcyreliefthatareaccountedforastroubleddebt

restructurings,orrepaymentplansorforbearancesthathavebeeninitiatedbutnotcompleted;(b)repaymentplans,reflectsonlythoseplansassociatedwithloansthatwere60

daysormoredelinquent;and(c)forbearances,notincludingforbearancesassociatedwithloansthatwerelessthan90daysdelinquentwhenentered.

Basedontheunpaidprincipalbalance(UPB)ofthesingle-familyconventionalguarantybookofbusinessasofperiodend.

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

specificloans.

Defaultsincludeloanforeclosures,shortsales,salestothirdpartiesatthetimeofforeclosureanddeeds-in-lieuofforeclosure.CumulativeDefaultRateisthetotalnumberof

single-familyconventionalloansintheguarantybookofbusinessoriginatedintheidentifiedyearthathavedefaulted,dividedbythetotalnumberofsingle-familyconventional

loansintheguarantybookofbusinessoriginatedintheidentifiedyear.DataasofDecember31,2018isnotnecessarilyindicativeoftheultimateperformanceoftheloansand

performanceislikelytochange,perhapsmaterially,infutureperiods.

(1)

a

a

a

(2)

a

a

(3)

(4)

(5)

a

(6)

a

a

(7)

a

(8)

a

(9)

a

a

a

a

(10)

a

(11)

a

a

(12)

a

(13)

a

(14)

a

(15)

a

(16)

a

a

(17)

(18)

a

(19)

a

© 2019FannieMae.TrademarksofFannieMae. 2018FinancialSupplement 23
MultifamilyBusinessEndnotes

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

and(c)othercreditenhancementsthatweprovideonmultifamilymortgageassets.Itexcludesnon-FannieMaemultifamilymortgage-relatedsecuritiesheldinour

retainedmortgageportfolioforwhichwedonotprovideaguaranty.

Creditloss(benefit)ratiorepresentsthecreditlossorbenefitfortheperioddividedbytheaverageunpaidprincipalbalanceofthemultifamilyguarantybookof

businessfortheperiod.Creditbenefitsaretheresultofrecoveriesonpreviouslycharged-offamounts.

Representsthepercentageofloanswithlenderrisk-sharingagreementsinplace,measuredbyunpaidprincipalbalance.

UndertheDelegatedUnderwritingandServicing(DUS)program,FannieMaeacquiresindividual,newlyoriginatedmortgagesfromspeciallyapprovedDUSlenders

usingDUSunderwritingstandardsand/orDUSloandocuments.BecauseDUSlendersgenerallysharetheriskoflosswithFannieMae,theyareabletooriginate,

underwrite,closeandservicemostloanswithoutourpre-review.

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

TheMultifamilyAffordableBusinessChannelfocusesonfinancingpropertiesthatareunderanagreementthatprovideslong-termaffordability,suchasproperties

withrentsubsidiesorincomerestrictions.

WeightedaverageDSCRiscalculatedusingthemostrecentpropertyfinancialoperatingstatements.Whenoperatingstatementinformationisnotavailable,theDSCR

atthetimeofacquisitionisused.Ifbothareunavailable,theunderwrittenDSCRisused.Co-oploansareexcludedfromthismetric.

Multifamilyloanswithanoriginalunpaidbalanceofupto$3millionnationwideorupto$5millioninhighcostmarkets.

Multifamilyloansareclassifiedasseriouslydelinquentwhenpaymentis60daysormorepastdue.

Cumulativecreditlossrateisthecumulativecreditlosses(gains)throughDecember31,2018onthemultifamilyloansthatwereacquiredintheapplicableperiod,asa

percentageofthetotalacquiredunpaidprincipalbalanceofmultifamilyloansintheapplicableperiod.

Creditloss(benefit)ratioisannualizedforthemostrecentperiod.

(1)

a

a

(2)

a

(3)

(4)

a

a

(5)

(6)

a

(7)

(8)

(9)

(10)

(11)

© 2019FannieMae.TrademarksofFannieMae. 2018FinancialSupplement 24