November 7, 2012

Fannie Mae

2012 Third-Quarter Credit S
 This presentation includes information about Fannie Mae, in

contained in Fannie Mae’s Quarterly Report on Form 10-Q fo

September 30, 2012, the “2012 Q3 Form 10-Q.” Some of the materials are defined and discussed more fully in the 2012 QFannie Mae’s Form 10-K for the year ended December 31, 2010-K.” These materials should be reviewed together with the 

and the 2011 Form 10-K, copies of which are available on thin the “Investor Relations” section of Fannie Mae’s Web site 

www.fanniemae.com. 

 Some of the information in this presentation is based upon 

received from third-party sources such as sellers and servicloans. Although we generally consider this information relia

independently verify all reported information. 

 This presentation includes forward-looking statements relat

price changes. Future home price changes may be very diffestimates as a result of significant inherent uncertainty in thenvironment, including uncertainty about the effect of actiogovernment has taken and may take with respect to tax polimortgage finance programs and policies, and housing finanmanagement of the Federal Reserve’s MBS holdings; the imon and changes generally in unemployment and the generainterest rate environment; and the impact on the U.S. econo

debt crisis. The impact of future home price changes on our financial condition will depend on many other factors.

 Due to rounding, amounts reported in this presentation may 

indicated (or 100%). A zero indicates less than one half of oindicates a null value.
Table of Contents

Slide

Home Price Growth/Decline Rates in the U.S. Home Price Change Peak-to-Current as of 2012 Q3 Fannie Mae Acquisition Profile by Key Product Features Fannie Mae Credit Profile by Key Product Features 

Fannie Mae Credit Profile by Origination Year and Key Product Features Fannie Mae Credit Profile by State Fannie Mae Alt-A Credit Profile by Key Product Features Fannie Mae Single-Family Serious Delinquency Rates by States and Region Fannie Mae Single-Family Completed Workouts by Type Fannie Mae Single-Family Loan Modifications by Monthly Payment Change and TPerformance of Fannie Mae Modified Loans Fannie Mae Single-Family Cumulative Default Rates Fannie Mae Single-Family Real Estate Owned (REO) in Selected States Real Estate Owned (REO) Sales Price / UPB of Mortgage Loans Fannie Mae Multifamily Credit Profile by Loan Attributes Fannie Mae Multifamily Credit Profile by Acquisition Year Fannie Mae Multifamily Credit Profile Fannie Mae Multifamily YTD 2012 Credit Losses by State 
Home Price Growth/Decline Rates in the U.S.

Fannie Mae Home Price Index

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

After declining by an estimated 23.7% from their peak in the third quarter of 2006 to the first quarter of 2012, we estimate that home pricsecond quarter of 2012 and by 1.5% in the third quarter of 2012. Although we believe home prices may decline again through early 201home prices will not decline on a national basis below their first quarter 2012 levels. We also expect significant regional variation in homstabilization. Our estimates of home price changes are based on our home price index, which is calculated differently from the S&P/Castherefore results in different percentages for comparable changes. Our estimated 23.7% peak-to-trough decline in home prices on a nataccording to the S&P/Case-Shiller’s National Home Price Index.

*Year-to-date as of Q3 2012. Estimate based on purchase transactions in Fannie-Freddie acquisition and public deed data available subsequent data may lead to materially different results.** Year-to-date as of Q2 2012.

7.0% 6.3% 7.5% 7.7%

10.6% 11.4%

2.8%

-3.4%

-9.1%

-4.8% -4

-15%-10%

-5%

0%5%

10%15%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2

S&P/Case-Shiller Index 9.8% 7.7% 10.6% 10.7% 14.6% 14.7% -0.3% -8.4% -18.4% -2.5% -3
Top %: State/Region Home Price Growth Rate percentage from applicable peak in that state/region through September 30, 2012.

Bottom %: Percent of Fannie Mae single-family conventional guaranty book of business by unpaid principal balance as of September 30, 2012.

Note: Regional home price decline percentages are a housing stock unit-weighted average of home price decline percentages of states within each regio

*Source: Fannie Mae. Estimates based on purchase transactions in Fannie-Freddie acquisition and public deed data available through the end of Septemdifferent results.

Home Price Change Peak-to-Current as of 2012 Q3*

United States -19.9%
Fannie Mae Acquisition Profile by Key Product Featur

Credit Characteristics of Single-Family Business Vo

(1) Percentage calculated based on unpaid principal balance of loans at time of acquisition. Single-family business volume refers to both 

mortgage portfolio and single-family mortgage loans we guarantee into Fannie Mae MBS. Beginning with the third quarter of 2011, we commitments in the period in which the commitment was established, rather than at the time of actual delivery. 

(2) The increase after 2009 is the result of our Refi PlusTM initiative, which involves the refinance of existing Fannie Mae loans that can ha

(3) Refi Plus and Home Affordable Refinance Program (HARP) started in April 2009.(4) FICO credit scores as reported by the seller of the mortgage loan at the time of delivery.(5) Newly originated Alt-A loans acquired after 2008 consist of the refinance of existing loans under our Refi Plus initiative.

Acquisition Year Q3 2012 Q2 2012 Q1 2012 2011 2010 2009 2008 

Unpaid Principal Balance (billions) $231.1 $174.1 $200.1 $562.3 $595.0 $684.7 $557.2 

Weighted Average Origination Note Rate 3.73% 3.93% 3.96% 4.35% 4.64% 4.93% 6.00% 

Origination Loan-to-Value Ratio

 <= 60% 23.8% 24.2% 28.9% 29.1% 30.3% 32.6% 22.7% 

 >60% and <= 70% 13.8% 13.8% 15.6% 15.5% 15.9% 17.0% 16.1% 

 >70% and <= 80% 34.2% 34.1% 35.4% 37.3% 38.5% 39.9% 39.5% 

 >80% and <= 90% 8.9% 9.3% 9.1% 8.9% 8.6% 6.9% 11.7% 

 >90% and <= 100% (2) 8.8% 9.0% 7.4% 6.8% 5.2% 3.3% 10.0% 

 > 100% (2) 10.5% 9.6% 3.7% 2.3% 1.6% 0.4% 0.1% 

Weighted Average Origination Loan-to-Value Ratio 76.6% 75.7% 70.0% 69.3% 68.4% 66.8% 72.0% Weighted Average Origination Loan-to-Value Ratio Excluding HARP (3) 70.0% 69.4% 66.9% 67.0% 66.0% 65.8% 

FICO Credit Scores (4)

 0 to < 620 0.9% 0.9% 0.5% 0.5% 0.4% 0.4% 2.8% 

 >= 620 and < 660 2.3% 2.4% 1.8% 1.8% 1.6% 1.5% 5.7%  >=660 and < 700 7.2% 7.5% 6.5% 7.0% 6.6% 6.5% 13.9%  >=700 and < 740 15.5% 16.1% 15.1% 16.2% 16.1% 17.2% 21.7% 

 >=740 74.1% 73.0% 76.0% 74.5% 75.1% 74.4% 55.8% 

 Missing 0.0% 0.0% 0.0% 0.1% 0.1% 0.1% 0.1% 

Weighted Average FICO Credit Score (4) 761 760 763 762 762 761 738 

Product Distribution

Fixed-rate 97.1% 96.0% 95.7% 93.5% 93.7% 96.6% 91.7% Adjustable-rate 2.9% 4.0% 4.3% 6.5% 6.3% 3.4% 8.3% 

Alt-A (5) 0.9% 0.7% 0.6% 1.2% 0.9% 0.2% 3.1% 

Subprime  0.3% Interest Only 0.3% 0.3% 0.4% 0.7% 1.3% 1.0% 5.6% 

Negative Amortizing  0.0% Investor 7.1% 7.3% 6.6% 6.5% 4.6% 2.5% 5.6% 

Condo/Co-op 9.2% 9.4% 8.8% 8.8% 8.6% 8.2% 10.3% 

Refinance 76.4% 77.6% 82.6% 76.5% 77.4% 79.9% 58.6% 

Total Refi Plus (3) 24.6% 26.6% 22.5% 24.3% 23.4% 10.6% 

HARP (3) 14.6% 15.4% 10.2% 8.5% 9.0% 3.8% 

Origination Loan-to-Value Ratio: 

>80% and <=105% 49.6% 57.1% 80.6% 88.5% 94.5% 99.1% 

>105% and <=125% 23.8% 23.2% 17.0% 11.5% 5.5% 0.9% >125% 26.6% 19.8% 2.4% 

HARP Weighted Average Origination Loan-to-Value Ratio 115.1% 110.7% 97.3% 94.1% 92.1% 90.7% 
Fannie Mae Credit Profile by Key Product Features

Credit Characteristics of Single-Family Conventional Guaranty 

(1) Loans with multiple product features are included in all applicable categories. The subtotal is calculated by counting a loan only onc

(2) Excludes non-Fannie Mae securities held in portfolio and those Alt-A and subprime wraps for which Fannie Mae does not have loan

detailed loan-level information for approximately 99% of its single-family conventional guaranty book of business as of September 3

(3) FICO credit scores as reported by the seller of the mortgage loan at the time of delivery.(4) Unpaid principal balance of all loans with credit enhancement as a percentage of unpaid principal balance of single-family conventio

Mae had access to loan level information. Includes primary mortgage insurance, pool insurance, lender recourse and other credit en

(5) Expressed as a percentage of credit losses for the single-family guaranty book of business. For information on total credit losses, re

As of September 30, 2012

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)

Al

Unpaid Principal Balance (billions) (2) $7.9 $110.9 $81.4 $171.2 $331.1 $19.0 

Share of Single-Family Conventional Guaranty Book 0.3% 4.0% 2.9% 6.2% 12.0% 0.7% 

Average Unpaid Principal Balance (2) $106,589 $238,578 $119,511 $131,660 $163,925 $121,866 $

Serious Delinquency Rate 6.72% 14.36% 12.24% 9.35% 5.92% 15.33% Origination Years 2005-2008 54.7% 80.9% 56.5% 51.5% 29.5% 55.5% Weighted Average Origination Loan-to-Value Ratio 70.5% 74.5% 77.7% 77.6% 101.6% 100.9% Origination Loan-to-Value Ratio > 90% 0.3% 8.5% 23.3% 20.9% 100.0% 100.0% Weighted Average Mark-to-Market Loan-to-Value Ratio 92.7% 111.7% 88.5% 87.9% 106.7% 112.4% Mark-to-Market Loan-to-Value Ratio > 100% and <= 125% 14.1% 25.3% 17.3% 16.1% 29.3% 31.6% Mark-to-Market Loan-to-Value Ratio > 125% 29.7% 31.8% 13.2% 13.3% 16.8% 25.4% Weighted Average FICO (3) 707 725 587 642 722 589 

FICO < 620 (3) 6.8% 1.5% 100.0%

 5.7% 100.0% 

Fixed-rate 1.8% 29.0% 79.9% 82.4% 90.9% 79.7% 

Primary Residence 68.6% 85.2% 96.3% 93.8% 93.7% 98.0% 

Condo/Co-op 13.1% 15.9% 4.8% 6.4% 10.2% 5.7% 

Credit Enhanced (4) 54.5% 16.2% 27.5% 25.3% 62.7% 77.0% 

% of 2007 Credit Losses (5) 0.9% 15.0% 18.8% 21.9% 17.4% 6.4% 

% of 2008 Credit Losses (5) 2.9% 34.2% 11.8% 17.4% 21.3% 5.4% % of 2009 Credit Losses (5) 2.0% 32.6% 8.8% 15.5% 19.2% 3.4% % of 2010 Credit Losses (5) 1.9% 28.6% 8.0% 15.1% 15.9% 2.7% % of 2011 Credit Losses (5) 1.2% 25.8% 7.9% 14.7% 14.0% 2.2% % of Q1 2012 Credit Losses (5) 1.2% 23.3% 7.7% 14.2% 18.7% 2.5% % of Q2 2012 Credit Losses (5) 1.1% 23.1% 7.9% 14.4% 18.4% 2.5% % of Q3 2012 Credit Losses (5) 0.5% 21.6% 7.1% 13.9% 16.3% 1.9% 

Categories Not Mutually Exclusive (1)
Fannie Mae Credit Profile by Origination Year and Key 

Credit Characteristics of Single-Family Conventional Guaranty Book of B

(1) Excludes non-Fannie Mae securities held in portfolio and those Alt-A and subprime wraps for which Fannie Mae does not have loan-le

loan-level information for approximately 99% of its single-family conventional guaranty book of business as of September 30, 2012.

(2) The increase after 2009 is the result of our Refi Plus loans, which we began acquiring in April 2009, and involve the refinance of existi

in excess of 100%.

(3) FICO credit scores as reported by the seller of the mortgage loan at the time of delivery.(4) Unpaid principal balance of all loans with credit enhancement as a percentage of unpaid principal balance of single-family conventiona

access to loan-level information. Includes primary mortgage insurance, pool insurance, lender recourse and other credit enhancemen

(5) Expressed as a percentage of credit losses for the single-family guaranty book of business. For information on total credit losses, refe(6) Defaults include loan liquidations other than through voluntary pay-off or repurchase by lenders and include loan foreclosures, short sa

foreclosure. Cumulative Default Rate is the total number of single-family conventional loans in the guaranty book of business originatethe total number of single-family conventional loans in the guaranty book of business originated in the identified year. For 2002 to 200

As of September 30, 2012 Overall Book 2012 2011 2010 2009 2008 

Unpaid Principal Balance (billions) (1) $2,767.3 $515.5 $442.8 $415.7 $340.7 $141.0 

Share of Single-Family Conventional Guaranty Book 100.0% 18.6% 16.0% 15.0% 12.3% 5.1% 

Average Unpaid Principal Balance(1) $157,291 $210,788 $191,260 $189,822 $182,187 $164,910 $

Serious Delinquency Rate 3.41% 0.02% 0.16% 0.41% 0.78% 6.26% Weighted Average Origination Loan-to-Value Ratio 72.5% 75.0% 70.6% 70.2% 69.1% 75.1% Origination Loan-to-Value Ratio > 90% (2) 12.0% 17.5% 11.2% 8.8% 5.6% 13.1% 

Weighted Average Mark-to-Market Loan-to-Value Ratio 75.6% 73.4% 67.6% 68.9% 70.5% 88.8% Mark-to-Market Loan-to-Value Ratio > 100% and <= 125% 8.5% 5.1% 2.6% 3.5% 4.5% 21.7% Mark-to-Market Loan-to-Value Ratio > 125% 5.7% 3.3% 0.1% 0.2% 0.3% 8.6% Weighted Average FICO(3) 741 761 760 760 757 725 

FICO < 620 (3) 2.9% 0.9% 0.5% 0.5% 0.6% 4.1% 

Interest Only 4.0% 0.3% 0.6% 1.0% 1.0% 6.6% Negative Amortizing 0.3%  Fixed-rate 89.8% 96.7% 93.9% 95.0% 97.2% 83.8% 

Primary Residence 89.0% 88.9% 88.0% 90.0% 91.4% 86.6% 

Condo/Co-op 9.4% 9.0% 9.0% 8.7% 9.0% 12.1% Credit Enhanced (4) 13.9% 13.8% 10.5% 7.6% 7.4% 27.9% 

% of 2007 Credit Losses (5) 100.0%  

% of 2008 Credit Losses (5) 100.0%  0.5% 

% of 2009 Credit Losses (5) 100.0%  4.8% % of 2010 Credit Losses (5) 100.0%  0.4% 7.0% 

% of 2011 Credit Losses (5) 100.0%   0.7% 1.6% 5.7% 

% of Q1 2012 Credit Losses (5) 100.0%

 0.2% 1.1% 1.9% 7.5% 

% of Q2 2012 Credit Losses (5) 100.0%

 0.4% 1.6% 2.2% 8.0% 

% of Q3 2012 Credit Losses (5) 100.0%

 0.9% 2.2% 2.7% 7.1% 

Cumulative Default Rate (6)

 0.0% 0.0% 0.2% 0.3% 3.3% 

Origination Year
Fannie Mae Credit Profile by State

Credit Characteristics of Single-Family Conventional Guaranty Bo

(1) Excludes non-Fannie Mae securities held in portfolio and those Alt-A and subprime wraps for which Fannie Mae does not have loan

loan-level information for approximately 99% of its single-family conventional guaranty book of business as of September 30, 2012.

(2) FICO credit scores as reported by the seller of the mortgage loan at the time of delivery.(3) Unpaid principal balance of all loans with credit enhancement as a percentage of unpaid principal balance of single-family conventi

has access to loan-level information. Includes primary mortgage insurance, pool insurance, lender recourse and other credit enhan

(4) Expressed as a percentage of credit losses for the single-family guaranty book of business. For information on total credit losses, r

(5) Select Midwest states are Illinois, Indiana, Michigan, and Ohio.

As of September 30, 2012 Overall Book AZ CA FL 

Unpaid Principal Balance (billions) (1) $2,767.3 $65.4 $525.5 $167.9 

Share of Single-Family Conventional Guaranty Book 100.0% 2.4% 19.0% 6.1% Average Unpaid Principal Balance (1) $157,291 $148,008 $222,566 $138,496 

Serious Delinquency Rate 3.41% 2.35% 1.89% 10.49% Origination Years 2005-2008 23.8% 33.2% 19.4% 44.6% Weighted Average Origination Loan-to-Value Ratio 72.5% 79.1% 66.7% 76.3% Origination Loan-to-Value Ratio > 90% 12.0% 18.8% 7.2% 15.1% Weighted Average Mark-to-Market Loan-to-Value Ratio 75.6% 91.7% 75.2% 98.2% Mark-to-Market Loan-to-Value Ratio >100% and <=125% 8.5% 16.9% 8.5% 16.1% Mark-to-Market Loan-to-Value Ratio >125% 5.7% 17.4% 8.7% 24.9% Weighted Average FICO (2) 741 742 751 727 

FICO < 620 (2) 2.9% 2.5% 1.6% 4.6% 

Interest Only 4.0% 7.8% 5.8% 7.8% Negative Amortizing 0.3% 0.3% 0.8% 0.7% 

Fixed-rate 89.8% 85.1% 87.4% 83.8% 

Primary Residence 89.0% 80.2% 86.5% 82.1% 

Condo/Co-op 9.4% 4.4% 12.1% 13.7% 

Credit Enhanced (3) 13.9% 13.4% 6.4% 14.6% 

% of 2007 Credit Losses (4) 100.0% 1.8% 7.2% 4.7% % of 2008 Credit Losses (4) 100.0% 8.0% 25.2% 10.9% % of 2009 Credit Losses (4) 100.0% 10.8% 24.4% 15.5% % of 2010 Credit Losses (4) 100.0% 10.0% 22.6% 17.5% % of 2011 Credit Losses (4) 100.0% 11.7% 27.0% 11.0% % of Q1 2012 Credit Losses (4) 100.0% 7.6% 19.6% 19.6% % of Q2 2012 Credit Losses (4) 100.0% 7.1% 20.4% 21.4% % of Q3 2012 Credit Losses (4) 100.0% 5.5% 17.7% 21.2% 
Fannie Mae Alt-A Credit Profile by Key Product Feature

Credit Characteristics of Alt-A Single-Family Conventional Guaranty Book o

(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 

documentation or other product features. We have loans with some features that are similar to Alt-A mortgage loans that we have nclassification 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

detailed loan-level information for approximately 99% of its single-family conventional guaranty book of business as of September 3

(4) The increase after 2008 is the result of our Refi Plus loans, which we began acquiring in April 2009 and involve the refinance of exis

ratios in excess of 100%.

(5) FICO credit scores as reported by the seller of the mortgage loan at the time of delivery.(6) Defined as unpaid principal balance of Alt-A loans with credit enhancement as a percentage of unpaid principal balance of all Alt-A 

principal balance of Alt-A loans carried only primary mortgage insurance (no deductible), 4.5% had only pool insurance (which is gemortgage insurance and pool insurance, and 0.4% carried other credit enhancement such as lender recourse. 

(7) Expressed as a percentage of credit losses for the single-family guaranty book of business. For information on total credit losses, re

(8) Defaults include loan liquidations other than through voluntary pay-off or repurchase by lenders and includes loan foreclosures, sho

foreclosure. Cumulative Default Rate is the total number of single-family conventional loans in the guaranty book of business originaby the total number of single-family conventional loans in the guaranty book of business originated in the identified year.

As of September 30, 2012 Alt-A (1) 2012(2) 2011 (2) 2010 (2) 2009 (2) 2008 

Unpaid principal balance (billions) (3) $162.2 $4.0 $6.7 $3.8 $1.3 $3.8 

Share of Alt-A 100.0% 2.4% 4.1% 2.4% 0.8% 2.3% 

Weighted Average Origination Loan-to-Value Ratio 74.1% 93.8% 74.3% 79.3% 75.5% 68.6% 

Origination Loan-to-Value Ratio > 90% (4) 8.1% 48.1% 25.1% 28.8% 21.1% 2.6% 

Weighted Average Mark-to-Market Loan-to-Value Ratio 96.8% 92.1% 72.3% 80.4% 79.7% 85.7% 

Mark-to-Market Loan-to-Value Ratio > 100% and <=125% 19.3% 19.9% 10.7% 14.9% 15.8% 18.6% 

Mark-to-Market Loan-to-Value Ratio > 125% 20.8% 14.7% 0.5% 0.7% 1.3% 8.7% 

Weighted Average FICO (5) 716 723 742 733 734 722 

FICO < 620 (5) 1.1% 7.3% 2.8% 3.3% 3.8% 0.3% 

Adjustable-rate 34.3% 1.1% 2.5% 4.3% 3.7% 24.0% 

Interest Only 27.0%  0.1% 7.4% 

Negative Amortizing 2.6% 

Investor 18.0% 27.0% 24.2% 12.2% 5.5% 18.6% 

Condo/Co-op 10.3% 10.3% 7.2% 9.4% 8.9% 6.7% 

California 20.9% 24.9% 26.1% 19.5% 15.3% 20.1% 

Florida 11.7% 9.7% 4.0% 3.4% 3.4% 9.8% 

Credit Enhanced (6) 15.5% 7.4% 2.2% 2.3% 1.5% 14.2% 

Serious Delinquency Rate at 12/31/11 12.43%  0.21% 2.11% 4.25% 10.70% 

Serious Delinquency Rate at 09/30/12 11.61% 0.13% 0.86% 3.09% 4.83% 10.44% 

% of 2007 Credit Losses (7) 27.8%  

% of 2008 Credit Losses (7) 45.6%  0.0% 

% of 2009 Credit Losses (7) 39.6%  0.4% % of 2010 Credit Losses (7) 33.2%   0.0% 0.0% 0.5% % of 2011 Credit Losses (7) 27.3%   0.1% 0.1% 0.3% % of Q1 2012 Credit Losses (7) 24.7%

 0.0% 0.1% 0.1% 0.3% 

% of Q2 2012 Credit Losses (7) 24.3%   0.1% 0.1% 0.4% % of Q3 2012 Credit Losses (7) 25.8%

 0.1% 0.1% 0.1% 0.4% 

Cumulative Default Rate (8)   0.2% 1.3% 2.7% 8.7% 
Fannie Mae Single-Family Serious Delinquency Rates by 

(1) Calculated based on the number of loans in Fannie Mae’s single-family conventional guaranty book of business within each 

(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 33 in Fannie Mae’s 2012 Q3 Form 

2009 Q3 2009 Q4 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 

Serious Delinquency Rate by States

AZ CA FL NV Select Midwest S

2009 Q3 2009 Q4 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 

Serious Delinquency Rate by Region (3)

Midwest Northeast Southeast Southwes
Fannie Mae Single-Family Completed Workouts by Ty

 Modifications involve changes to the original mortgage loan terms, which may include a change to the product type, inte

and/or unpaid principal balance. Modifications include both completed modifications under the Administration's Home A

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 tempo

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 forbeara

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, sells the home prior to foreclosure to pay off all or part of the ou

expenses from the sale proceeds.

87,533

82,684

77,748

65,239

0

25,00050,00075,000

100,000

2011 Q3 2011 Q4 2012 Q1 2012 Q2 

Number of Loans

Modifications Repayment Plans Completed Forbearances Completed Short S
Fannie Mae Single-Family Loan Modifications by MonthChange and Type

Change in Monthly Principal and Interest Payment

of Modified Single-Family Loans(1)(2)

(1) Excludes loans that were classified as subprime adjustable rate mortgages that were modified into fixed rate mortgag

modification. Modifications include permanent modifications, but do not reflect loans currently in trial modifications. 

(2) Represents the change in the monthly principal and interest payment at the effective date of the modification. The m

modified loans may vary, and may increase, during the remaining life of the loan.

Modification Type o

0%

20%40%60%80%

100%

Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012

Decrease of greater than 30% of Principal and Interest PaymentDecrease of greater than 20% but less than or equal to 30% of Principal and Interest PaymentDecrease of less than or equal to 20% of Principal and Interest PaymentNo Change in Principal and Interest PaymentIncrease in Principal and Interest Payment

0%

20%40%60%80%

100%

Q3 2011 Q4 2011 

Capitalization of Missed PaymeExtend Term, Reduce Rate and Extend Term and Reduce Rate Extend Term Only Reduce Rate Only 
Performance of Fannie Mae Modified Loans

Re-performance Rates of Modified Single-Family L

(1) Excludes loans that were classified as subprime adjustable rate mortgages that were modified into fixed rate mortgages. Modific

reflect loans currently in trial modifications. 

2010 2010 2010 2010 2011 2011 201

Q1 Q2 Q3 Q4 Q1 Q2 Q

3 months post modification 80% 79% 78% 81% 84% 84% 836 months post modification 71% 73% 75% 77% 78% 79% 799 months post modification 65% 71% 73% 72% 75% 77% 7612 months post modification 65% 70% 70% 69% 74% 75% 7215 months post modification 63% 66% 67% 68% 73% 72% n/18 months post modification 60% 65% 67% 68% 71% n/a n/21 months post modification 59% 65% 67% 66% n/a n/a n/24 months post modification 60% 65% 65% n/a n/a n/a n/

% Current or Paid Off
Note: Defaults include loan liquidations other than through voluntary pay-off or repurchase by lenders and include loan foreclosures, sh

foreclosure. Cumulative Default Rate is the total number of single-family conventional loans in the guaranty book of business originated the total number of single-family conventional loans in the guaranty book of business originated in the identified year.

Data as of September 30, 2012 are not necessarily indicative of the ultimate performance of the loans and performance is periods.

Fannie Mae Single-Family Cumulative Default Rates

Cumulative Default Rates of Single-Family Conventional Guaranty Book o

2005

2006

2007

2008

2009 2012 2011 2010

0.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%4.0%4.5%5.0%5.5%6.0%6.5%7.0%7.5%8.0%8.5%9.0%9.5%

10.0%10.5%11.0%

Yr1-Q1 Yr2-Q1 Yr3-Q1 Yr4-Q1 Yr5-Q1 Yr6-Q1 Yr7-Q1 Yr8-Q1 Yr9-Q

Cumulative Default Rate 

Time Since Beginning of Origination Year

2002 2003 2004 2005 2006 2007 2008 2009 201
Fannie Mae Single-Family Real Estate Owned (REO) in S

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

(2) Measured from the last monthly period for which the borrowers fully paid their mortgages to when the 

our REO inventory for foreclosures completed during Q3 2012.

(3) Fannie Mae incurs additional costs associated with property taxes, hazard insurance, and legal fees 

the foreclosure process. Additionally, the longer a loan remains in the foreclosure process, the longebusiness as a seriously delinquent loan. The average number of days from last paid installment to fowere 327, 325, 407, 479, and 529 in each of the years 2007 through 2011, respectively, and 646 yea

(4) Home Equity Conversion Mortgage (HECMs) excluded from calculation.

Q3 2012 Q2 2012 Q1 2012 2011 2010 2009 200

Beginning Balance N/A 109,266 114,157 118,528 162,489 86,155 63,538 33,7Arizona 403 2,090 2,109 2,246 16,172 20,691 12,854 5,5California 521 3,684 3,697 3,829 27,589 34,051 19,565 10,6Florida 1,080 5,980 5,584 5,610 13,748 29,628 13,282 6,1Nevada 657 533 654 1,003 8,406 9,418 6,075 2,9Select Midwest States (1) 675 9,497 9,664 11,657 33,777 45,411 28,464 23,6All other States 580 20,100 22,075 23,355 100,004 122,879 65,377 45,7

Total Acquisitions N/A 41,884 43,783 47,700 199,696 262,078 145,617 94,6Total Dispositions N/A (43,925) (48,674) (52,071) (243,657) (185,744) (123,000) (64,8

Ending Inventory N/A 107,225 109,266 114,157 118,528 162,489 86,155 63,5

State

Average Days 

From Last Paid 

Installment to 

Foreclosure For 

Q3 2012 (2) (3) (4)

REO Acquisitions and Dispositions (Number of Properties)
Real Estate Owned (REO) Sales Price / UPB of Mortgag

REO Net Sales Prices to UPB - Top 10 States (Based on Volume of REO Properties Sold YT

(1) Calculated as the sum of sale proceeds received on disposed REOs, excluding those subject to lender repurchase requests made to 

acquisitions, and redemptions, divided by the aggregate unpaid principal balance (UPB) of the related loans. Gross sales price reprerepresents the contract sale price less selling costs for the property and adjusted for other charges/credits paid by or due to the selle

Note: Properties disposed of in the third quarter of 2012 through structured rental transactions have been excluded from the Ne

62%

59%

60%

62% 61%

64%

62%

61%

59%

60% 60%

61% 62

55%

52%

53%

55% 55%

57%

56%

54%

53%

54% 54%

55%

56

50%55%60%65%70%

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

Gross Sales/ UPB Net Sales/ UPB

2009 

2010 2011

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 

CA 51.7% 47.8% 49.3% 52.9% 53.7% 56.2% 55.9% 53.3% 53.1% 53.5% 53

FL 45.6% 41.6% 41.3% 42.6% 41.8% 43.2% 42.0% 41.7% 41.3% 43.8% 44MI 41.6% 41.9% 42.0% 44.8% 41.2% 44.5% 43.3% 44.5% 41.6% 42.6% 44

GA 53.3% 52.6% 54.4% 57.3% 56.0% 58.8% 56.7% 54.9% 54.3% 54.9% 53

IL 52.2% 47.9% 44.0% 42.9% 43.9% 45.8% 41.4% 39.3% 39.2% 43.3% 42

AZ 51.5% 47.8% 50.1% 52.1% 50.6% 52.1% 51.0% 46.2% 45.0% 47.0% 48

OH 46.2% 50.4% 51.8% 50.8% 49.0% 52.9% 47.5% 49.6% 45.2% 49.3% 47

TX 71.6% 70.3% 72.7% 73.8% 75.5% 77.9% 74.7% 71.4% 73.8% 74.2% 74

NC 68.0% 67.0% 71.9% 72.9% 69.8% 71.5% 66.1% 65.9% 66.1% 67.5% 64

IN 48.5% 49.5% 51.7% 53.1% 48.0% 53.5% 50.0% 51.6% 52.0% 56.2% 54

Top 10 51.2% 48.5% 49.5% 51.6% 50.9% 53.5% 52.0% 50.9% 49.4% 51.1% 51

All Others 62.0% 60.3% 61.1% 62.4% 62.1% 64.0% 61.8% 59.5% 58.9% 59.6% 58

Total 55.1% 52.4% 53.4% 55.3% 55.0% 57.3% 55.6% 54.1% 52.8% 54.1% 54

2009 2010 2011 
Fannie Mae Multifamily Credit Profile by Loan Attribut

(1) Excludes loans that have been defeased. Defeasance is prepayment of a loan through substitution of collateral.(2) We classify multifamily loans as seriously delinquent when payment is 60 days or more past due.(3) Negative values are the result of recoveries on previously charged-off amounts.(4) Weighted Average Origination loan-to-value ratio is 66% as of September 30, 2012.(5) Under the Delegated Underwriting and Servicing, or DUS ®, product line, Fannie Mae purchases individual, newly originated m

lenders using DUS underwriting standards and/or DUS loan documents. Because DUS lenders generally share the risk of los

underwrite, close and service most loans without our pre-review. 

(6) Multifamily loans under $3 million and up to $5 million in high cost of living areas.

Total Multifamily Guaranty Book of Business (1) 39,289 $200.1 100% 0.28% 

Credit Enhanced Loans: Credit Enhanced 35,268 $179.9 90% 0.24% 

Non-Credit Enhanced 4,021 $20.2 10% 0.61% Origination loan-to-value ratio:(4)

Less than or equal to 70% 25,285 $111.7 56% 0.11% Greater than 70% and less than or equal to 80% 11,174 $80.7 40% 0.44% Greater than 80% 2,830 $7.7 4% 1.14% Delegated Underwriting and Servicing (DUS ®) Loans: (5)

DUS ® - Small Balance Loans(6) 8,455 $16.2 8% 0.43% 

DUS ® - Non Small Balance Loans 11,757 $149.3 75% 0.18% 

DUS ® - Total 20,212 $165.6 83% 0.21% 

Non-DUS - Small Balance Loans (6) 17,938 $14.8 7% 0.93% 

Non-DUS - Non Small Balance Loans 1,139 $19.7 10% 0.42% 

Non-DUS - Total 19,077 $34.5 17% 0.64% Maturity Dates:Loans maturing in 2012 312 $3.3 2% 2.14% 

Loans maturing in 2013 2,628 $14.9 7% 0.38% 

Loans maturing in 2014 2,401 $13.2 7% 0.37% 

Loans maturing in 2015 3,060 $15.6 8% 0.24% 

Loans maturing in 2016 3,011 $15.9 8% 0.32% 

Other maturities 27,877 $137.2 69% 0.22% 

Loan Size Distribution:Less than or equal to $750K 10,968 $3.4 2% 0.90% Greater than $750K and less than or equal to $3M 14,014 $20.8 10% 0.76% Greater than $3M and less than or equal to $5M 4,787 $17.4 9% 0.34% 

Greater than $5M and less than or equal to $25M 8,329 $84.5 42% 0.28% 

Greater than $25M 1,191 $74.0 37% 0.11% 

As of September 30, 2012 Unpaid Principal Balance (Billions) % of Multifamily Guaranty Book of Business (UPB) % Seriously Delinquent Loan Counts (2)
20

0.00%0.50%1.00%1.50%2.00%2.50%

Cumulative Default Rate 

2012 2011

%

Year

1

Year

2

Year

3

2005 2006 20

2005

2006

2007

2008

2009

2011 2012 2010

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

SDQ (%) 

2005 2006 2007 2008 2009 2010 2011 2012

(1) Excludes loans that have been defeased. Defeasance is prepayment of a loan through substitution of collateral.(2) We classify multifamily loans as seriously delinquent when payment is 60 days or more past due.Note: Negative values are the result of recoveries on previously charged-off amounts.

Fannie Mae Multifamily Credit Profile by Acquisition Y

Multifamily SDQ Rate by Acquisition Year Cumulative 

As of September 30, 2012

Unpaid Principal Balance (Billions) 

% Seriously Delinquent (2)

Total Multifamily Guaranty 

Book of Business (1) $200.1 100% 0.28% 228 100% 

By Acquisition Year:

2012 $23.0 11% 0.03% 1 - 

2011 $24.0 12% 0.01% 1 0% 

2010 $17.3 9% - - 0% 

2009 $17.4 9% 0.19% 7 8% 

2008 $28.4 14% 0.51% 68 27% 2007 $34.9 17% 0.52% 85 46% 2006 $16.1 8% 0.30% 17 9% 2005 $13.3 7% 0.21% 12 16% 

Prior to 2005 $25.7 13% 0.45% 37 -6% 

% of Multifamily 

Guaranty Book of 

Business (UPB)

# of Seriously 

Delinquent 

Loans (2)

% of 2012 YTD 

Multifamily 

Credit Losses
Fannie Mae Multifamily Credit Profile

(1) Excludes loans that have been defeased. Defeasance is prepayment of a loan through substitution of collateral.(2) We classify multifamily loans as seriously delinquent when payment is 60 days or more past due.(3) For information on which states are included in each region, refer to Fannie Mae’s 2012 Q3 Form 10-Q.(4) Asset Class Definitions: Conventional/Co-Op Housing: Privately owned multifamily properties or multifamily properties in which 

through their shares in the cooperative corporation. Seniors Housing: Multifamily rental properties for senior citizens. Manufactdevelopment consisting of housing sites for manufactured homes, related amenities, utility services, landscaping, roads and othrental properties in which 80% or more of the units are leased to undergraduate and/or graduate students. 

(5) The Multifamily Affordable Business Channel focuses on financing properties which are under a regulatory agreement that prov

with rent subsidies or income restrictions.

Total Multifamily Guaranty Book of Business (1) $200.1 100% 0.28% 10

Region: (3)

Midwest $16.6 8% 0.88% 1Northeast $42.8 21% 0.30% 1Southeast $40.7 20% 0.32% 52Southwest $34.9 17% 0.18% 8Western $65.0 32% 0.15% 1Top Five States by UPB: California $51.1 26% 0.07% 1New York $25.5 13% 0.15% 3Texas $17.1 9% 0.22% 1Florida $9.8 5% 0.32% 3Virginia $7.7 4% 0.10% 0Asset Class: (4)Conventional/Co-op $177.4 89% 0.28% 9Seniors Housing $14.5 7% 0.34% Manufactured Housing $5.3 3% 0.32% 0Student Housing $2.8 1% 0.13% 3Targeted Affordable Segment: Privately Owned with Subsidy (5) $28.1 14% 0.22% 5

DUS & Non-DUS Lenders/Servicer:DUS: Bank (Direct, Owned Entity, or Subsidiary) $59.5 30% 0.33% 9

DUS: Non-Bank Financial Institution $125.9 63% 0.23% 83

Non-DUS: Bank (Direct, Owned Entity, or Subsidiary) $13.4 7% 0.54% 6

Non-DUS: Non-Bank Financial Institution $1.1 1% 0.70% 2

Non-DUS: Public Agency/Non Profit $0.1 0% - 0

As of September 30, 2012

% of Multifamily 

Guaranty Book 

of Business 

(UPB)

% Seriously 

Delinquent (2)

Unpaid 

Principal 

Balance 

(Billions)

% of 20

Multi

Credit 
Numbers: Represent YTD 2012 credit losses for each state which total $213M as of September 30, 2012. States with no numbers 

Shading: Represent Unpaid Principal Balance (UPB) for each state which total $200.1B as of September 30, 2012. 

(1) Excludes loans that have been defeased. Defeasance is prepayment of a loan through substitution of collateralNote: Negative values are the result of recoveries on previously charged-off amounts.

Fannie Mae Multifamily YTD 2012 Credit Losses by Sta

Exam

Ohio is $

2012 Cred

be