FannieMaeQuarterlyFinancialSupplement

Q12018

May3,2018

© 2018FannieMae.TrademarksofFannieMae.
SomeofthetermsandotherinformationinthispresentationaredefinedanddiscussedmorefullyinFannieMae’sForm10-Qfor

thequarterendedMarch31,2018(“Q1201810-Q”)andForm10-KfortheyearendedDecember31,2017(“2017Form10-K”).

ThispresentationshouldbereviewedtogetherwiththeQ1201810-Qandthe2017Form10-K,whichareavailableat

www.fanniemae.cominthe“AboutUs—InvestorRelations—SECFilings”section.Informationonoravailablethroughthe

company'swebsiteisnotpartofthissupplement.

Someoftheinformationinthispresentationisbaseduponinformationfromthird-partysourcessuchassellersandservicersof

mortgageloans.Althoughwegenerallyconsiderthisinformationreliable,wedonotindependentlyverifyallreported

information.

Duetorounding,amountsreportedinthispresentationmaynotaddtototalsindicated(or100%).

Unlessotherwiseindicated,datalabeledas"YTD2018"isasofMarch31,2018orforthefirstthreemonthsof2018.Datafor

prioryearsisasofDecember31orforthefullyearindicated.

Notereferencesaretoendnotes,appearingonpages22to24.

Termsusedinpresentation

CAS:ConnecticutAvenueSecuritiesTM

CIRTTM:CreditInsuranceRiskTransferTM

CRT:creditrisktransfer

DTIratio:Debt-to-incomeratio

DUS:FannieMae’sDelegatedUnderwritingandServicingprogram

GDP:U.S.grossdomesticproduct

HARP:HomeAffordableRefinanceProgram,whichallowseligibleFannieMaeborrowerswithhighLTVratioloanstorefinance

intomoresustainableloans

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

§

§

§

§

§

§

© 2018FannieMae.TrademarksofFannieMae. 1

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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

© 2018FannieMae.TrademarksofFannieMae. 2
FinancialOverview

© 2018FannieMae.TrademarksofFannieMae. 3
1Q18 4Q17 Variance

Netinterestincome

Feeandotherincome

Netrevenues

Investmentgains,net

Fairvaluegains(losses),net

Administrativeexpenses

Credit-relatedincome

Benefitforcreditlosses

Foreclosedpropertyexpense

Totalcredit-relatedincome

TemporaryPayrollTaxCutContinuationActof2011

(TCCA)fees

Otherexpenses,net

Incomebeforefederalincometaxes

Provisionforfederalincometaxes

NetIncome

Othercomprehensiveincome(loss)

Totalcomprehensiveincome $10,625

(169)

$10,794

10,358

436

208

(13)

(375)

(32)

(343)

(47)

1,236

(583)

10

(111)

$121

($6,687)

(154)

($6,533)

(11,489)

4,956

(411)

(544)

430

(130)

560

(703)

(191)

833

5,542

431

$5,111

$3,938

(323)

$4,261

(1,131)

5,392

(203)

(557)

55

(162)

217

(750)

1,045

250

5,552

320

$5,232

2014 2015 2016 2017 YTD2018

0%

20%

40%

60%

80%

100%

%

NetInterestIncome

$0

$100

$200

$300

$400

$500

$600

RetainedMortgagePorfolio($)Billions

$272.4

$413.3

$345.1

$230.8 $228.3

Netinterestincomefromretainedmortgageportfolioandotheractivities

Netinterestincomefromguarantyfeesandotherconsolidatedtrustincome

Retainedmortgageportfolioatendofperiod

KeyHighlights

SummaryofQ12018FinancialResults

SourcesofNetInterestIncomeandRetainedMortgage

PortfolioBalance

CorporateFinancialHighlights

© 2018FannieMae.TrademarksofFannieMae. 4

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_______________________________

_______________________________

_______________________________

_______________________________

_______________________________

Netincome(loss)

Netrevenues

(1)

Totalcomprehensiveincome(loss)

§FannieMaereportedfirstquarter2018netincomeof$4.3billionand

comprehensiveincomeof$3.9billion.Thiscomparestoanetlossof$6.5billion

inthefourthquarterof2017,whichwasduetoremeasurementofthecompany's

deferredtaxassetsresultingfromenactmentoftaxlegislationduringthequarter.

FannieMae’spre-taxincomewas$5.4billionforthefirstquarterof2018and

$5.0billionforthefourthquarterof2017,reflectingthestrengthofthecompany’s

underlyingbusinessfundamentals.

§Twoprimaryfactorsdrovethedifferencebetweennetincomeinthefirst

quarterof2018comparedtothenetlossinthefourthquarterof2017:a$9.9

billionprovisionforfederalincometaxesinthefourthquarterof2017that

resultedfromtheenactmentoftheTaxCutsandJobsActof2017;andnetfair

valuegainsof$1.0billioninthefirstquarterof2018,primarilydrivenbygainson

thecompany’smortgagecommitmentandriskmanagementderivatives.

_______________________________
2014 2015 2016 2017 YTD2018

0.0M

0.5M

1.0M

1.5M

2.0M

2.5M

3.0M

0.8M

0.6M

0.9M

0.9M

0.4M

0.2M

0.2M

0.3M

0.7M

1.0M

1.0M

1.4M

1.2M

1.2M

1.1M

RentalUnits

HomePurchases(Loans)

MortgageRefinancings(Loans)

252K

HomePurchases

232K

Refinancings

154K

RentalUnits

KeyHighlights:

LiquidityProvided

FannieMaeprovided$124billioninliquiditytothemortgagemarketinthefirst

quarterof2018,throughitspurchasesofloansandguaranteesofloansandsecurities,

whichenabledthefinancingof:

ProvidingLiquiditytotheMortgageMarket

MarketLiquidity

© 2018FannieMae.TrademarksofFannieMae. 5
2014 2015 2016 2017 YTD2018

0.0%

2.0%

4.0%

2.83% 3.00%

3.46%

0.90%

1.18%

1.45%

2.08%

2.58%

2.17%

2.41%

2.74%

3.13%

2.45%

3.00%

2.27%

2014 2015 2016 2017 YTD2018

0.0%

2.0%

4.0%

6.0%

4.6%

4.2%

1.0%

5.7% 5.7%

2014 2015 2016 2017 YTD2018

0.0%

2.0%

4.0%

6.0% 5.60%

4.10%

2.40% 2.30%

4.70%

2.30%

5.00%

1.50%

2.60%

4.10%

NM

MN

MO

WA

WV

MA

WY

NH

ME

OH

MT

ND

MS

OR

OK

NV

NE

GA

NC

NY

AR

CO

TN

UT

WI

VA

CA

KY

TX

MI

SD

PA

LA

NJ

AL

AZ

KS

SC

FL

IN

ID

IA

IL

BenchmarkInterestRates Single-FamilyHomePriceGrowthRate

U.S.GDPGrowthRateand

UnemploymentRate

OneYearHomePriceChangeasofQ12018

UnitedStates5.5%

KeyMarketEconomicIndicators

HI

AK

StateHomePrice

GrowthRate

ShareofFannie

MaeSingle-Family

GuarantyBook

CA

TX

FL

NY

IL

NJ

WA

VA

CO 3.0%

3.4%

3.6%

3.7%

3.7%

5.1%

5.7%

6.3%

19.5%

7.9%

3.6%

12.0%

3.8%

2.8%

5.6%

7.0%

3.8%

8.7%

Top10StatesbyUPB

© 2018FannieMae.TrademarksofFannieMae. 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

($)Billions

$144.8

$116.1

$0.0

$9.6

$12.0

$3.7

$0.0 $0.0

$166.4

$119.8

DrawsfromTreasury DividendpaymentstoTreasury

TreasuryDrawsandDividendPayments

TreasuryDrawsandDividendPayments:2008-YTD2018

2008-2015 2016 2017 YTD2018 Total

© 2018FannieMae.TrademarksofFannieMae. 7

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Single-FamilyBusiness

© 2018FannieMae.TrademarksofFannieMae. 8
Private-labelsecurities

3%

FreddieMac

22%

FannieMae

42%

GinnieMae

33%

Q12017 Q22017 Q32017 Q42017 Q12018

$0

$50

$100

$150

$200

UPB($)Billions

0

10

20

30

40

50

BasisPoints

$60

$84

$50

$66

$69

$59

$52

$53

$47

$74

47.1

47.1

45.4

48.0

48.7

$118 $121

$134 $128

$112

Q12017 Q22017 Q32017 Q42017 Q12018

$0

$1,000

$2,000

$3,000

$4,000

UPB($)Billions

0

10

20

30

40

50

BasisPoints

$2,811 $2,823 $2,835 $2,850 $2,870

42.4 42.6

41.9 42.1 42.8

Refinance

Purchase

Averagechargedguarantyfeeonnewacquisitions,netofTCCA(bps)

Averagechargedguarantyfeeonconventionalguarantybook,netofTCCA(bps)

AverageUPBoutstandingofSingle-Familyconventionalguarantybook

KeyHighlights

Q12018MarketShare:NewSingle-Family

Mortgage-RelatedSecuritiesIssuances

§FannieMaeprovidedapproximately$113billioninliquiditytothe

single-familymortgagemarketinthefirstquarter2018whileservingas

thelargestissuerofsingle-familymortgage-relatedsecuritiesinthe

secondarymarket.Thecompany’sestimatedmarketshareofnew

single-familymortgage-relatedsecuritiesissuanceswas42percentfor

thefirstquarterof2018.

§Thesingle-familyguarantybookofbusinesscontinuedtogrowinthe

firstquarterof2018,whiletheaveragechargedguarantyfee(netof

TCCAfees)onthesingle-familyguarantybookasofMarch31,2018

remainedrelativelyflatcomparedtoyearendat42.8basispoints.

Single-FamilyConventionalLoanAcquisitions ConventionalGuarantyBookofBusiness

Single-FamilyHighlights

Q12018

$4,561M

Netinterestincome

$1,034M

Fairvaluegains,

net

$242M

Investmentgains,

net

$3,681M

Netincome

$34M

Credit-related

income

© 2018FannieMae.TrademarksofFannieMae. 9

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Q12017 Q22017 Q32017 Q42017 FullYear2017 Q12018

TotalUnpaidPrincipalBalance(UPB)($B)

TotalUPBexcludingRefiPlus($B)

WeightedAverageOriginationLTV(OLTV)Ratio

OriginationLTVRatio>90%

WeightedAverageFICO CreditScore

FICOCreditScore<660

DTIRatio>45%

Fixed-rate

Condo/Co-op 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

10%

97%

8%

5%

745

20%

76%

$131.5

$134.2

10%

97%

7%

6%

745

19%

76%

$117.6

$121.2

10%

98%

7%

5%

746

15%

73%

$113.4

$118.5

Loanswith

OLTV

Ratio>90%

Loanswith

FICOCredit

Score<660

Loanswith

DTI

Ratio>45%

10%

98%

100%

7%

734

20%

76%

$25.9

$25.9

6%

100%

29%

100%

640

15%

73%

$6.0

$6.5

9%

100%

25%

5%

738

100%

95%

$20.5

$20.7

2014 2015 2016 2017 YTD2018

0%

20%

40%

60%

80%

100%

WeightedAverageOLTV

Ratio

0%

5%

10%

15%

20%

25%

30%

OriginationLTV>90%

77% 75% 74% 75% 75%

18% 18%

16% 15%

19%

2014 2015 2016 2017 YTD2018

0%

20%

40%

60%

80%

100%

ShareofAcquisitions

20%

20%

30%

44%

22% 26%

33%

56%

45%

52% 53%

19%

16%

19% 19%

12%

6%

OLTV>90%

WeightedAverageOLTVRatio

2014 2015 2016 2017 YTD2018

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

YTD2018Acquisition

CreditProfileby

CertainProductFeatures

Origination

Loan-to-ValueRatio

FICOCreditScore AcquisitionsbyLoanPurpose

CertainCreditCharacteristicsofSingle-FamilyLoanAcquisitions

RefiPlusincludingHARP

Refinance(excludingcash-out&RefiPlus)

Cash-outrefinance

Purchase

© 2018FannieMae.TrademarksofFannieMae. 10

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(4)

(1)
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%

33%

742

75%

18%

75%

0.00%

2%

$230,300

$63.3

98%

55%

744

72%

19%

76%

0.22%

16%

$221,340

$463.6

99%

64%

751

64%

16%

74%

0.41%

18%

$218,450

$505.0

98%

37%

752

51%

17%

75%

0.61%

55%

$161,002

$1,579.3

67%

19%

696

66%

15%

76%

6.22%

6%

$131,412

$171.2

79%

7%

701

40%

13%

74%

3.24%

3%

$68,737

$94.3

95%

43%

745

58%

17%

75%

1.16%

100%

$167,594

$2,876.7

RefiPlus

IncludingHARP Alt-A

Loanswith

FICOCredit

Score<660

OriginationLTV

Ratio>90%

98%

73%

732

79%

100%

101%

1.82%

17%

$175,547

$485.4

90%

32%

628

63%

24%

79%

4.91%

7%

$133,034

$198.6

70%

9%

709

63%

18%

79%

4.76%

2%

$139,999

$68.9

99%

11%

730

57%

38%

86%

0.98%

13%

$138,300

$367.1

2014 2015 2016 2017 YTD2018

0%

10%

20%

30%

40%

50%

60%

70%

WeightedAverageMTMLTV

0%

2%

4%

6%

8%

10%

%

MTMLTV>100%

60%

64%

62%

58% 58%

2%

3%

5%

1% 1%

2014 2015 2016 2017 YTD2018

0

200

400

600

800

WeightedAverageFICOCreditScore

0%

5%

10%

15%

20%

%FICOCreditScore<660

744 744 745 745 745

7%

8% 8%

7% 7%

WeightedAverageMark-To-Market

Loan-to-Value(MTMLTV)Ratio

FICOCreditScore

2014 2015 2016 2017 YTD2018

0.0%

2.0%

4.0%

6.0%

8.0%

SeriousDelinquencyRate

6.39%

1.20%

6.55%

8.39%

7.60%

1.89%

1.55%

1.24%

6.22%

3.06% 2.82%

3.26% 3.24%

1.16%

3.28%

0.35% 0.36% 0.36% 0.53% 0.51%

SeriousDelinquencyRatebyVintage

OriginationYear CertainProductFeatures

%FICOCreditScore<660

WeightedAverageFICOCreditScore

%MTMLTV>100%

WeightedAverageMTMLTV

CertainCreditCharacteristicsofSingle-FamilyConventionalGuarantyBookofBusiness

CertainCreditCharacteristicsofSingle-FamilyConventionalGuarantyBookofBusinessbyOriginationYearandProductFeatures

Totalsingle-familyconventionalguarantybookofbusiness

2004andprior

2005-2008

2009-2018

AsofMarch31,2018

© 2018FannieMae.TrademarksofFannieMae. 11

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2014 2015 2016 2017 YTD2018

$0

$500

$1,000

$1,500

UPB($)Billions

0%

10%

20%

30%

40%

%Single-FamilyConventionalGuarantyBook

$1,002

$250

$429

$627

$927

22%

15%

9%

32%

35%

%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

YTD2018

Outstanding

UPB

Percentof

Book

Outstanding

Primarymortgageinsurance&other

ConnecticutAvenueSecuritiesTM (CAS)

CreditInsuranceRiskTransferTM (CIRTTM)

Lenderrisk-sharing

(Less:loanscoveredbymultiplecredit

enhancements)

TotalUPBofsingle-familyloanswithcredit

enhancement

33%

(8%)

1%

4%

18%

18%

$925B

($211B)

$23B

$101B

$503B

$509B

40%

(12%)

2%

6%

24%

20%

$1,158B

($335B)

$65B

$181B

$681B

$566B

43%

(12%)

3%

7%

25%

20%

$1,223B

($362B)

$78B

$193B

$731B

$583B

2013 2014 2015 2016 2017 YTD2018

$0

$100

$200

$300

$400

UPB($)Billions

$240

$222

$265

$102

$189

$40

$44

$76

$27

$71

$17

$32

$233 $239

$331

$410

$103

Lenderrisk-sharing ConnecticutAvenueSecurities CreditInsuranceRiskTransfer

CreditEnhancement

© 2018FannieMae.TrademarksofFannieMae. 12

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(7)

(6)

(5)

(6)

(7)
NM

MN

MO

WA

WV

MA

WY

NH

ME

OH

MT

ND

MS

OR

OK

NV

NE

GA

NC

NY

AR

TN

UT CO

WI

VA 

CA

KY

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% 2.00%to2.99% 3.00%andAbove

2014 2015 2016 2017 YTD2018

$0

$10

$20

$30

$40

UPB($)Billions

0

50

100

150

200

(NumberofLoanWorkouts)Thousands

$16.6 $14.4 $14.6

$21.7

$6.6

$4.2

$3.9

$3.1 $2.1

26.0K

103.5K 100.6K

122.3K

164.6K

$28.3

$20.7

$17.5 $16.7

$4.2

2014 2015 2016 2017 YTD2018

0K

20K

40K

60K

80K

100K

REOEndingInventory

87K

57K

38K

26K 24K

Single-FamilyProblemLoanStatistics

Single-FamilySeriousDelinquencyRatebyStateasofMarch31,2018

Single-FamilyLoanWorkouts REOEndingInventory

REOEndingInventory

AK

HI

PR

VI

State

Serious

Delinquency

Rate

Average

Monthsto

Foreclosure

CA

TX

FL

NY

IL

NJ

WA

VA

CO

PA 25

22

16

36

60

24

68

51

24

21

1.30%

0.25%

0.62%

0.46%

1.91%

1.15%

1.87%

3.56%

1.34%

0.39%

Top10StatesbyUPB

ForeclosureAlternatives

HomeRetentionSolutions

TotalLoanWorkouts

© 2018FannieMae.TrademarksofFannieMae. 13

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2014 2015 2016 2017 YTD2018 2014 2015 2016 2017 YTD2018

Alt-A

InterestOnly

OriginationLTVRatio>90%

FICOCreditScore<660andOriginationLTVRatio>90%

FICOCreditScore<660

RefiPlusincludingHARP 12.8%

6.9%

1.6%

16.9%

1.1%

2.4%

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%

16.3%

37.2%

9.9%

23.3%

11.9%

21.6%

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 YTD2018 2014 2015 2016 2017 YTD2018

2009-YTD2018

2005–2008

2004&Prior 3.3%

6.0%

90.8%

3.5%

6.2%

90.3%

4.5%

8.1%

87.4%

5.8%

10.1%

84.1%

7.3%

12.2%

80.5%

16.7%

59.7%

23.6%

12.2%

64.8%

23.1%

16.4%

64.7%

19.0%

12.1%

77.6%

10.3%

12.0%

74.7%

13.3%

3.0%

78.9%

3.7%

3.7%

5.7%

5.1%

51.8%

11.2%

11.7%

11.7%

5.4%

8.1%

AllOtherStates

Florida

Illinois

NewJersey

NewYork

Pennsylvania

AllOtherStates

Florida

Illinois

NewJersey

NewYork

Pennsylvania

CreditLossConcentrationofSingle-FamilyConventionalGuarantyBookofBusiness

%ofSingle-FamilyConventionalGuarantyBookofBusiness %ofSingle-FamilyCreditLosses

%ofSingle-FamilyConventionalGuarantyBookofBusiness

byStateasofMarch31,2018

%ofQ12018Single-FamilyCreditLossesbyState

© 2018FannieMae.TrademarksofFannieMae. 14

100%

$2.9T

100%

$0.5B

(17) (18)

(9)

CertainProductFeatures

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

2009

2011 2010 2012

2013

2014

2017 2016 2015

2006

2005

2004

2003

2018

Single-FamilyCumulativeDefaultRates

CumulativeDefaultRatesofSingle-FamilyConventionalGuarantyBookofBusinessbyOriginationYear

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012*

2013*

2014*

2015*

2016*

2017*

2018*

TimeSinceBeginningofOriginationYear

© 2018FannieMae.TrademarksofFannieMae. 15

*AsofMarch31,2018,cumulativedefaultratesontheloansoriginatedfrom2012-2018waslessthan1.0%

(19)
MultifamilyBusiness

© 2018FannieMae.TrademarksofFannieMae. 16
MultifamilyHighlights

Q12018 Acquisitions GuarantyBookofBusiness

Q12017 Q22017 Q32017 Q42017 Q12018

$0.0

$5.0

$10.0

$15.0

$20.0

UPB($)Billions

$20.3

$16.2

$12.3

$17.4

$11.3

$17.4

$13.2

$16.2

$20.3

$11.3

MultifamilyGuarantyFeeand

CreditLoss(Benefit)Ratio

Q12017 Q22017 Q32017 Q42017 Q12018

$0

$100

$200

$300

$400

UPB($)Billions

0%

20%

40%

60%

80%

100%

ShareofMultifamilyGuarantyBookwith

LenderRiskSharin

$265.4 g

$253.3 $257.2

$277.3 $281.3

95% 95% 96% 96% 97%

Shareofguarantybookwithlenderrisk-sharing

UPBoutstandingofMultifamilyguarantybookofbusiness

KeyHighlights

Q12017 Q22017 Q32017 Q42017 Q12018

0

20

40

60

80

100

BasisPoints

76.7 77.9 79.8 78.7 78.9

0.0 0.3 (2.4) (0.8) 0.6

Annualizedcreditloss(benefit)ratio

Averageguarantyfeeatendofperiod(bps)

§Newmultifamilybusinessvolumewas$11.3billioninthefirstquarter

of2018,adecreasefrom$20.3billioninthefourthquarterof2017.

Approximately38percentofFannieMae’sfirstquarter2018

multifamilynewbusinessvolumecountedtowardFHFA’s2018

multifamilyvolumecap.

§FannieMaesupported154,000unitsofmultifamilyhousinginthe

firstquarterof2018.Morethan90percentoftheunitsthecompany

financedwereaffordabletofamiliesearningatorbelow120percentof

theareamedianincome,providingsupportforbothaffordableand

workforcehousing.

§Themultifamilyguarantybookofbusinesscontinuedtogrowinthe

firstquarterof2018,whiletheaveragechargedguarantyfeeonthe

multifamilyguarantybookremainedrelativelyflatcomparedtoyear

endat78.9basispointsasofMarch31,2018.

Otherrentalbusinessvolume Multifamilynewbusinessvolume

$671M

Netinterestincome

$162M

Feeandother

income

$21M

Credit-related

income

$11M

Fairvaluegains

$580M

Netincome

© 2018FannieMae.TrademarksofFannieMae. 17

(1)

(2)
CertainCreditCharacteristicsofMultifamilyAcquisitions

2014 2015 2016 2017 YTD2018

0%

20%

40%

60%

80%

100%

ShareofAcquisitions

48% 48% 50%

49%

58%

43%

57%

41%

51% 51%

%OriginationLTVlessthanorequalto70%

%OriginationLTVgreaterthan70%andlessthanorequalto80%

%OriginationLTVgreaterthan80%

2014 2015 2016 2017 YTD2018

0%

20%

40%

60%

80%

100%

ShareofAcquisitions

80%

20%

84%

28% 23%

79%

72%

77%

21%

16%

$0.6B

$0.6B

$0.6B

$0.4B

$0.2B

$0.2B

$0.2B

$0.5B

$0.5B

$1.0B

VariableRate

FixedRate

2014 2015 2016 2017 YTD2018

TotalUnpaidPrincipalBalance(UPB)($B)

WeightedAverageOriginationLTVRatio

LoanCount

%LenderRecourse

%DUSTM 100%

100%

811

66%

$11.3

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

Top10MSAsbyYTD2018

AcquisitionUPB

Atlanta

Dallas

Denver

Houston

LosAngeles

NewYork

Orlando

Portland

SanFrancisco

Washington,DC

© 2018FannieMae.TrademarksofFannieMae. 18

(3)

(4)

Shareof

Acquistions:43.1%

TotalUPB:$4.9B
CertainCreditCharacteristicsofMultifamilyGuarantyBookofBusiness

2014 2015 2016 2017 YTD2018

0%

20%

40%

60%

80%

100%

ShareofMultifamilyBookofBusiness

80% 80%

20% 20%

82% 82%

18% 18%

81%

19%

$20.2B

$25.2B

$13.5B

$12.1B

$8.8B

$8.3B

$8.3B

$6.4B

$6.3B

$7.9B

Atlanta

Chicago

Dallas

Houston

LosAngeles

Miami

NewYork

SanFrancisco

Seattle

Washington,DC

OverallBook

2004&

Eariler 2005-2008 2009-2015 2016 2017 2018

TotalUnpaidPrincipalBalance(UPB)($B)

AverageUnpaidPrincipalBalance($M)

WeightedAverageOriginationLTVRatio

%Fixed-rate

LoanCount

%ofBook

%ofSmallBalanceLoans

%LenderRecourse

%DUS

SeriousDelinquencyRate

100%

100%

22%

4%

813

84%

66%

$13.9

$11.3

0.04%

97%

100%

18%

24%

3,837

80%

67%

$17.4

$66.6

0.17%

99%

100%

18%

19%

3,175

79%

68%

$16.6

$52.7

0.16%

98%

96%

38%

47%

13,998

90%

66%

$9.5

$132.3

0.36%

87%

76%

85%

4%

4,725

54%

64%

$2.5

$11.8

0.01%

96%

95%

69%

2%

1,490

21%

71%

$4.4

$6.5

0.13%

97%

97%

42%

100%

28,038

82%

67%

$10.0

$281.3

Conventional

/Co-op Senior Student Manufactured

100%

99%

28%

4%

926

87%

67%

$10.7

$9.9

0.11%

100%

99%

15%

4%

563

79%

67%

$18.2

$10.3

0.10%

98%

100%

2%

5%

705

62%

67%

$21.4

$15.1

0.14%

97%

96%

44%

87%

25,844

84%

67%

$9.5

$246.1

CertainCreditCharacteristicsofMultifamilyBookofBusinessbyAcquisitionYear,AssetClass,orTargetedAffordableSegment

UPBbyMaturityYear

MultifamilyBookofBusiness

byNoteType

Top10MSAsbyUPB

$3.1B

$215.3B

$22.4B

$16.0B

$12.6B

$11.9B

2018

2019

2020

2021

2022

Other

VariableRate

FixedRate

AcquisitionYear AssetClassorTargetedAffordableSegment

PrivatelyOwned

withSubsidy

0.23%

95%

95%

41%

12%

3,842

66%

70%

$8.7

$33.5

© 2018FannieMae.TrademarksofFannieMae. 19

(3)

(8)

(4)

(7)

AsofMarch31,2018

ShareofBook

ofBusiness:100%

TotalUPB:$281.3B

ShareofBook

ofBusiness:41.6%

TotalUPB:$117.0B

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

(1)
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD2018

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%

0.9%

0.2%

0.7%

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% 0.0%

DUSCreditLossRate TotalCreditLossRate Non-DUSCreditLossRate

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD2018

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

SeriousDelinquencyRate

0.55%

0.34%

0.15%

0.05%

0.56%

0.11%

1.36%

0.44%

1.20%

0.24%

0.71%

0.21% 0.21%

0.18%

0.24%

0.63%

0.13%

0.50%

0.10%

0.59%

0.08% 0.08% 0.09%

0.07%

0.07%

0.05%

0.39%

0.92%

DUSSeriousDelinquencyRate

MultifamilyTotalSeriousDelinquencyRate

Non-DUSSeriousDelinquencyRate

DUS/Non-DUSCumulativeCreditLossRatesbyAcquisitionYearThroughYTD2018

SeriousDelinquencyRates

2013 2014 2015 2016 2017 YTD2018

-2.0

-1.0

0.0

1.0

2.0

3.0

BasisPoints

(0.7)

(0.2)

2.5

0.6

(2.7)

(2.3)

CreditLoss(Benefit)Ratio

MultifamilySeriousDelinquencyRatesandCreditLosses

© 2018FannieMae.TrademarksofFannieMae. 20

(4)(9)

(4)(8) (2)(10)
Endnotes

© 2018FannieMae.TrademarksofFannieMae. 21
FinancialOverviewEndnotes

Guarantyfeeincomeincludestheimpactofa10basispointguarantyfeeincreaseimplementedin2012pursuanttotheTemporaryPayrollTaxCutContinuationActof

2011,theincrementalrevenuefromwhichisremittedtoTreasuryandnotretainedbythecompany.

HomepriceestimatesarebasedonpurchasetransactionsinFannie-FreddieacquisitionandpublicdeeddataavailablethroughtheendofMarch2018.UPBestimates

arebasedondataavailablethroughtheendofMarch2018.Includingsubsequentdatamayleadtomateriallydifferentresults.Homepricechangeisnotseasonally

adjusted.

Source:BureauofEconomicAnalysis.GDPgrowthrateiscalculatedusingthequarterlyannualizedgrowthrateforthemostrecentperiodandtheannualgrowthratefor

priorperiods.

Underthetermsoftheseniorpreferredstockpurchaseagreement,dividendpaymentswemaketoTreasurydonotoffsetourpriordrawsoffundsfromTreasury,andwe

arenotpermittedtopaydowndrawswehavemadeundertheagreementexceptinlimitedcircumstances.

Treasurydrawsareshownintheperiodforwhichrequested,notwhenthefundswerereceivedbyus.Drawrequestshavebeenfundedinthequarterfollowinganet

worthdeficit.

(1)

(2)

(3)

(4)

(5)

© 2018FannieMae.TrademarksofFannieMae. 22
Single-FamilyBusinessEndnotes

Single-familyconventionalpopulationconsistsof:(a)single-familymortgageloansofFannieMae;(b)single-familymortgageloansunderlyingFannieMaeMBS;and(c)other

creditenhancementsthatweprovideonsingle-familymortgageassets,suchaslong-termstandbycommitments.Itexcludesnon-FannieMaesingle-familymortgage-related

securitiesheldinourretainedmortgageportfolioforwhichwedonotprovideaguaranty.Referstomortgageloansandmortgage-relatedsecuritiesthatarenotguaranteedor

insured,inwholeorinpart,bytheU.S.governmentoroneofitsagencies.

Calculatedbasedontheaverageguarantyfeerateforoursingle-familyguarantyarrangementsduringtheperiodplustherecognitionofanyupfrontcashpaymentsoveran

estimatedaveragelife.Excludestheimpactofa10basispointguarantyfeeincreaseimplementedin2012pursuanttotheTCCA,theincrementalrevenuefromwhichisremittedto

Treasuryandnotretainedbyus.

FICOcreditscoreisasofloanorigination,asreportedbythesellerofthemortgageloan.

PopulationexcludesHARPandotherRefiPlusloansacquiredunderourRefiPlusTM initiative.

Referstoloansincludedinanagreementusedtoreducecreditriskbyrequiringprimarymortgageinsurance,collateral,lettersofcredit,corporateguarantees,orotheragreements

toprovideanentitywithsomeassurancethatitwillbecompensatedtosomedegreeintheeventofafinancialloss.Excludesloanscoveredbycreditrisktransfertransactions

unlesssuchloansarealsocoveredbyprimarymortgageinsurance.

Outstandingunpaidprincipalbalancerepresentstheunderlyingloanbalance,whichisdifferentfromthereferencepoolbalanceforCASandsomelenderrisk-sharingtransactions.

Includesmortgagepoolinsurancetransactionscoveringloanswithanunpaidprincipalbalanceofapproximately$7billionatissuanceandapproximately$4billionoutstandingas

ofMarch31,2018.

Calculatedbasedontheaggregateunpaidprincipalbalanceofsingle-familyloansforeachcategorydividedbytheaggregateunpaidprincipalbalanceofloansinoursingle-family

conventionalguarantybookofbusiness.Loanswithmultipleproductfeaturesareincludedinallapplicablecategories.

ForadescriptionofourAlt-Aloanclassificationcriteria,refertoFannieMae’s2017Form10-K.WediscontinuedthepurchaseofnewlyoriginatedAlt-Aloansin2009,exceptfor

thosethatrepresenttherefinancingofaloanweacquiredpriorto2009,whichhasresultedinouracquisitionsofAlt-Amortgageloansremaininglowandthepercentageofthe

bookofbusinessattributabletoAlt-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.BecauseweincludeloansinreferencepoolsforourConnecticutAvenueSecuritiesTM andCredit

InsuranceRiskTransferTM creditrisktransfertransactionsonalaggedbasis(typicallyaboutsixmonthstooneyearafterweinitiallyacquiretheloans),weexpectthepercentageof

our2017and2018single-familyloanacquisitionswithcreditenhancementwillincreaseinthefuture.

Theaggregateestimatedmark-to-marketLTVratioisbasedontheunpaidprincipalbalanceoftheloanasoftheendofeachperioddividedbytheestimatedvalueofthepropertyas

oftheendoftheperiod.

Measuredfromtheborrowers’lastpaidinstallmentontheirmortgagestowhentherelatedpropertieswereaddedtoourREOinventoryforforeclosurescompletedduringthefirst

threemonthsof2018.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.DataasofMarch31,2018isnotnecessarilyindicativeoftheultimateperformanceoftheloansand

performanceislikelytochange,perhapsmaterially,infutureperiods.

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

(13)

(14)

(15)

(16)

(17)

(18)

(19)

© 2018FannieMae.TrademarksofFannieMae. 23
MultifamilyBusinessEndnotes

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

(c)othercreditenhancementsthatweprovideonmultifamilymortgageassets.Itexcludesnon-FannieMaemultifamilymortgage-relatedsecuritiesheldinourretained

mortgageportfolioforwhichwedonotprovideaguaranty.Theinformationpresentedexcludesloansforwhichourloanlevelinformationisincomplete,which

comprisedlessthan1%ofourmultifamilyguarantybookofbusinessasofMarch31,2018.

Creditloss(benefit)ratiorepresentsthecreditlossorbenefitfortheperioddividedbytheaverageunpaidprincipalbalanceofthemultifamilyguarantybookof

businessfortheperiod.Creditbenefitsaretheresultofrecoveriesonpreviouslycharged-offamounts.

Representsthepercentageofloanswithlenderrisk-sharingagreementsinplace,measuredbyunpaidprincipalbalance.

UndertheDelegatedUnderwritingandServicing,orDUS,program,FannieMaeacquiresindividual,newlyoriginatedmortgagesfromspeciallyapprovedDUSlenders

usingDUSunderwritingstandardsand/orDUSloandocuments.BecauseDUSlendersgenerallysharetheriskoflosswithFannieMae,theyareabletooriginate,

underwrite,closeandservicemostloanswithoutourpre-review.

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

TheMultifamilyAffordableBusinessChannelfocusesonfinancingpropertiesthatareunderanagreementthatprovideslong-termaffordability,suchaspropertieswith

rentsubsidiesorincomerestrictions.

Multifamilyloanswithanoriginalunpaidbalanceofupto$3millionnationwideorupto$5millioninhighcostmarkets.

Multifamilyloansareclassifiedasseriouslydelinquentwhenpaymentis60daysormorepastdue.

Cumulativecreditlossrateisthecumulativecreditlosses(gains)throughMarch31,2018onthemultifamilyloansthatwereacquiredintheapplicableperiod,asa

percentageofthetotalacquiredunpaidprincipalbalanceofmultifamilyloansintheapplicableperiod.

Creditloss(benefit)ratioisannualizedforthemostrecentperiod.

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

© 2018FannieMae.TrademarksofFannieMae. 24