2017FirstQuarterCreditSupplement

May5,2017

©2017FannieMae.TrademarksofFannieMae.
ThispresentationincludesinformationaboutFannieMae,includinginformationcontainedin

FannieMae’sQuarterlyReportonForm10-QforthequarterendedMarch31,2017,the“2017

Q1Form10-Q.”Someofthetermsusedinthesematerialsaredefinedanddiscussedmore

fullyinthe2017Q1Form10-QandinFannieMae’sForm10-KfortheyearendedDecember

31,2016,the“2016Form10-K.”Thesematerialsshouldbereviewedtogetherwiththe2017

Q1Form10-Qandthe2016Form10-K,copiesofwhichareavailablethroughthe

“SECFilings”pageinthe“AboutUs/InvestorRelations”sectionofFannieMae’swebsiteat

www.fanniemae.com.

Someoftheinformationinthispresentationisbaseduponinformationthatwereceivedfrom

third-partysourcessuchassellersandservicersofmortgageloans.Althoughwegenerally

considerthisinformationreliable,wedonotindependentlyverifyallreportedinformation.

Duetorounding,amountsreportedinthispresentationmaynotaddtototalsindicated(or

100%).

Unlessotherwiseindicateddatalabeledas“YTD2017”isasofMarch31,2017orforthefirst

threemonthsof2017.

§

.

.§

.

§

§

©2017FannieMae.TrademarksofFannieMae.
©2017FannieMae.TrademarksofFannieMae. 2

TableofContents

HomePriceGrowth/DeclineRatesintheU.S.

OneYearHomePriceChangeasof2017Q1

HomePriceChangeFrom2006Q3Through2017Q1 5

4

3

HomePrices

CreditCharacteristicsofSingle-FamilyBusinessAcquisitions

CreditRiskProfileSummaryofSingle-FamilyBusinessAcquisitions

CertainCreditCharacteristicsofSingle-FamilyBusinessAcquisitions:2006-2017

Single-FamilyBusinessAcquisitionsbyLoanPurpose

CreditCharacteristicsofSingle-FamilyConventionalGuarantyBookofBusinessbyOriginationYear

CreditCharacteristicsofSingle-FamilyConventionalGuarantyBookofBusinessbyCertainProductFeatures 11

10

9

8

7

6

CreditProfileofFannieMaeSingle-FamilyLoans

CreditCharacteristicsofSingle-FamilyConventionalGuarantyBookofBusinessandSingle-FamilyRealEstateOwned(REO)inSelectStates

SeriouslyDelinquentLoanandREOEndingInventorySharebySelectStates

Single-FamilyShortSalesandREOSalesPricestoUnpaidPrincipalBalance(UPB)ofMortgageLoans 14

13

12

GeographicCreditProfileofFannieMaeSingle-FamilyLoansandForeclosedProperties(REO)

Single-FamilyLoanWorkouts

Re-performanceRatesofModifiedSingle-FamilyLoans 16

15

WorkoutsofFannieMaeSingle-FamilyLoans

CreditLossConcentrationofSingle-FamilyConventionalGuarantyBookofBusiness

CumulativeDefaultRatesofSingle-FamilyConventionalGuarantyBookofBusinessbyOriginationYear 18

17

AdditionalCreditInformationforFannieMaeSingle-FamilyLoans

MultifamilyCreditProfilebyLoanAttributes

SeriousDelinquencyRatesofMultifamilyBookofBusiness

CumulativeCreditLossRatesofMultifamilyGuarantyBookofBusinessByAcquisitionYear 22

21

19-20

CreditProfileofFannieMaeMultifamilyLoans
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

-3.6%

-9.1%

-4.8%

-4.2%

-3.5%

2.6%

4.0%

7.7%

4.3% 4.7%

5.8%

0.5%

FannieMaeHomePriceIndex

Basedonourhomepriceindex,weestimatethathomepricesonanationalbasisincreasedby0.5%inthefirstquarterof2017,followingincreasesof5.8%in

2016,4.7%in2015,and4.3%in2014.Despitetherecentincreasesinhomeprices,weestimatethat,throughMarch31,2017,homepricesonanationalbasis

remained0.7%belowtheirpeakinthethirdquarterof2006.Ourhomepriceestimatesarebasedonpreliminarydataandaresubjecttochangeasadditionaldata

becomeavailable.

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

1.7% -5.4% -12.0% -3.8% -4.1% -3.9% 6.5% 10.7% 4.5% 5.3% 5.7%

S&P/Case-ShillerIndex

HomePriceGrowth/DeclineRatesintheU.S.

Note:EstimatebasedonpurchasetransactionsinFannie-FreddieacquisitionandpublicdeeddataavailablethroughtheendofMarch2017.Includingsubsequentdatamayleadtomateriallydifferentresults.

*Year-to-dateasofMarch2017.

©2017FannieMae.TrademarksofFannieMae. 3

*
OneYearHomePriceChangeasof2017Q1*

NC

5.5%

2.5%

MI

8.4%

2.3%

SC

3.5%

1.2%

CA

7.4%

19.6%

WY

-1.3%

0.2%

AR

2.3%

0.5%

IA

3.0%

0.7%

IL

3.2%

3.8%

IN

3.8%

1.1% KS

4.5%

0.5%

LA

3.4%

0.9%

ME

3.7%

0.3%

MO

3.6%

1.3%

MS

1.6%

0.4%

ND

0.5%

0.2%

NM

3.3%

0.5%

OH

4.0%

2.0%

OK

2.2%

0.7%

PA

3.1%

3.0%

VA

2.8%

3.5%

WV

4.1%

0.2%

AZ

7.9%

2.5%

AL

2.4%

1.0%

CO

9.4%

2.9%

FL

8.2%

5.6%

GA

6.7%

2.7%

ID

6.7%

0.6%

KY

6.6%

0.6%

MN

5.3%

2.1%

MT

6.8%

0.3%

NE

5.5%

0.5%

NV

6.8%

1.0%

NY

5.2%

5.2%

OR

9.2%

1.8%

SD

5.1%

0.2%

TN

8.4%

1.3%

TX

5.6%

6.1%

UT

8.7%

1.2%

WA

9.9%

3.6%

WI

5.4%

1.8%

State:FL

GrowthRate:8.2%

UPB%**:5.6%

UnitedStates:5.5%

*Source:FannieMae.HomepriceestimatesarebasedonpurchasetransactionsinFannie-FreddieacquisitionandpublicdeeddataavailablethroughtheendofMarch2017.UPBestimatesarebasedondata

availablethroughtheendofMarch2017.Includingsubsequentdatamayleadtomateriallydifferentresults.

**“UPB%”referstounpaidprincipalbalanceofloansonpropertiesintheapplicablestateasapercentageofunpaidprincipalbalanceofsingle-familyconventionalguarantybookofbusinessforwhichFannieMae

hasaccesstoloan-levelinformation.

©2017FannieMae.TrademarksofFannieMae. 4

AK

1.7%

0.2%

Growth

Rate

UPB%**

CT

DC

DE

MA

MD

NH

NJ

RI

VT 0.2%

0.3%

3.8%

0.5%

2.7%

2.9%

0.4%

0.4%

1.3%

2.4%

8.2%

3.6%

5.5%

2.5%

6.2%

3.9%

11.5%

0.7%

HI

4.8%

0.7%

StateGrowthRate

Below0%

0%to5%

5%to10%

10%andAbove
NC

5.1%

2.5%

SC

2.1%

1.2%

MI

-5.8%

2.3%

AZ

-21.0%

2.5%

FL

-21.9%

5.6%

NV

-28.2%

1.0%

IL

-13.5%

3.8%

CA

-9.4%

19.6%

CO

34.0%

2.9%

IA

13.7%

0.7%

KS

12.9%

0.5%

KY

11.4%

0.6%

LA

16.4%

0.9%

MT

19.4%

0.3%

ND

51.8%

0.2%

NE

17.4%

0.5%

OK

15.2%

0.7%

SD

25.9%

0.2%

TN

13.0%

1.3%

TX

32.1%

6.1%

UT

18.0%

1.2%

WY

12.2%

0.2%

VA

-9.1%

3.5%

GA

-2.5%

2.7%

ME

-1.5%

0.3%

MN

-2.6%

2.1%

NM

-4.9%

0.5%

OH

-1.9%

2.0%

AL

0.4%

1.0%

AR

4.5%

0.5%

ID

0.6%

0.6%

MO

2.7%

1.3%

MS

0.4%

0.4%

NY

0.6%

5.2%

PA

3.5%

3.0%

OR

9.6%

1.8%

WA

9.3%

3.6%

WV

6.1%

0.2%

IN

7.6%

1.1%

WI

0.4%

1.8%

State:FL

GrowthRate:-21.9%

UPB%**:5.6%

UnitedStates:-0.7%

HomePriceChangeFrom 2006Q3Through2017Q1*

*Source:FannieMae.HomepriceestimatesarebasedonpurchasetransactionsinFannie-FreddieacquisitionandpublicdeeddataavailablethroughtheendofMarch2017.UPBestimatesarebasedondataavailablethroughthe

endofMarch2017.Includingsubsequentdatamayleadtomateriallydifferentresults.

**“UPB%”referstounpaidprincipalbalanceofloansonpropertiesintheapplicablestateasapercentageofunpaidprincipalbalanceofsingle-familyconventionalguarantybookofbusinessforwhichFannieMaehasaccessto

loan-levelinformation.

Note:Homepricesonanationalbasisreachedapeakinthethirdquarterof2006.

©2017FannieMae.TrademarksofFannieMae. 5

AK

11.4%

0.2%

HI

5.6%

0.7%

Growth

Rate

UPB%**

CT

DC

DE

MA

MD

NH

NJ

RI

VT 0.2%

0.3%

3.8%

0.5%

2.7%

2.9%

0.4%

0.4%

1.3%

-1.7%

-15.8%

-18.3%

-6.7%

-18.0%

1.4%

-12.8%

44.3%

-19.5%

StateGrowthRate

Below-15%

-15%to-5%

-5%to0%

0%to5%

5%to10%

10%andAbove
Q12017

Single-Family

Acquisitions

Excl.

RefiPlus

FullYear2016

Single-Family

Acquisitions

Excl.

RefiPlus

Q42016

Single-Family

Acquisitions

Excl.

RefiPlus

Q32016

Single-Family

Acquisitions

Excl.

RefiPlus

Q22016

Single-Family

Acquisitions

Excl.

RefiPlus

Q12016

Single-Family

Acquisitions

Excl.

RefiPlus

UnpaidPrincipalBalance(UPB)($B)

WeightedAverageOriginationNoteRate 4.00%

$113.4

4.00%

$118.5

3.73%

$558.9

3.74%

$581.0

3.57%

$173.1

3.58%

$178.2

3.66%

$160.2

3.66%

$165.6

3.82%

$129.2

3.83%

$135.0

4.01%

$96.4

4.02%

$102.2

<=60%

60.01%to70%

70.01%to80%

80.01%to90%

90.01%to100%

>100%

WeightedAverageOriginationLTVRatio 73.3%

0.0%

14.8%

11.1%

38.6%

14.4%

21.1%

73.2%

0.3%

14.5%

11.1%

37.8%

14.5%

21.7%

73.6%

0.0%

14.8%

11.5%

38.8%

14.5%

20.4%

73.6%

0.4%

14.6%

11.6%

38.1%

14.5%

20.7%

72.0%

0.0%

12.8%

10.6%

37.5%

15.6%

23.5%

71.9%

0.2%

12.7%

10.7%

37.1%

15.6%

23.8%

73.9%

0.0%

15.5%

11.7%

38.4%

14.2%

20.2%

73.8%

0.3%

15.3%

11.8%

37.8%

14.3%

20.6%

74.8%

0.0%

16.3%

12.2%

39.7%

13.8%

18.0%

74.7%

0.4%

16.0%

12.3%

38.9%

13.9%

18.5%

74.6%

0.0%

15.3%

12.0%

40.8%

13.8%

18.1%

74.5%

0.6%

15.0%

12.2%

39.6%

13.9%

18.7%

OriginationLoan-to-Value(LTV)Ratio

<620

620to<660

660to<700

700to<740

>=740

WeightedAverageFICOCreditScore 747

60.4%

22.2%

12.7%

4.7%

0.0%

746

59.4%

22.1%

13.0%

5.0%

0.4%

752

64.9%

20.4%

10.9%

3.8%

0.0%

750

63.9%

20.4%

11.3%

4.1%

0.3%

754

66.9%

19.8%

10.0%

3.3%

0.0%

753

66.1%

19.8%

10.3%

3.6%

0.2%

753

66.1%

19.9%

10.4%

3.6%

0.0%

752

65.2%

19.9%

10.7%

3.9%

0.3%

751

63.6%

21.1%

11.4%

3.8%

0.0%

749

62.5%

21.0%

11.8%

4.2%

0.4%

748

61.2%

21.5%

12.6%

4.7%

0.0%

746

59.8%

21.4%

13.0%

5.2%

0.5%

FICOCreditScores

CreditCharacteristicsofSingle-FamilyBusinessAcquisitions

Fixed-rate

Adjustable-rate

Alt-A

InterestOnly

Investor

Condo/Co-op

Refinance 53.4%

9.9%

7.3%

0.0%

0.0%

2.2%

97.8%

55.4%

9.8%

7.7%

0.0%

0.3%

2.1%

97.9%

54.0%

9.6%

5.6%

0.0%

0.0%

1.6%

98.4%

55.7%

9.6%

6.0%

0.0%

0.3%

1.5%

98.5%

60.1%

9.4%

5.5%

0.0%

0.0%

1.1%

98.9%

61.2%

9.4%

5.7%

0.0%

0.2%

1.1%

98.9%

51.5%

9.5%

5.2%

0.0%

0.0%

1.6%

98.4%

53.0%

9.5%

5.4%

0.0%

0.2%

1.6%

98.4%

51.3%

10.0%

5.7%

0.0%

0.0%

1.5%

98.5%

53.4%

9.9%

6.1%

0.0%

0.3%

1.5%

98.5%

50.9%

9.7%

6.6%

0.0%

0.0%

2.4%

97.6%

53.7%

9.7%

7.1%

0.0%

0.4%

2.3%

97.7%

CertainCharacteristics

Purchase

Cash-outrefinance

Otherrefinance 28.7%

24.7%

46.6%

31.8%

23.6%

44.6%

33.9%

20.1%

46.0%

36.4%

19.3%

44.3%

38.6%

21.5%

39.9%

40.3%

20.9%

38.8%

33.0%

18.4%

48.5%

35.2%

17.8%

47.0%

32.1%

19.2%

48.7%

35.0%

18.4%

46.6%

29.4%

21.6%

49.1%

33.4%

20.4%

46.3%

LoanPurpose

Percentagecalculatedbasedonunpaidprincipalbalanceofloansattimeofacquisition.Single-familybusinessacquisitionsrefertosingle-familymortgageloansweacquirethroughpurchaseorsecuritizationtransactions.

Single-familybusinessacquisitionsfortheapplicableperiodexcludingloansacquiredunderourRefiPlusinitiative,whichincludestheHomeAffordableRefinanceProgram®(“HARP®”).OurRefiPlusinitiativeprovidesexpandedrefinance

opportunitiesforeligibleFannieMaeborrowers,andmayinvolvetherefinanceofexistingFannieMaeloanswithhighloan-to-valueratios,includingloanswithloan-to-valueratiosinexcessof100%.

FICOcreditscoreisasofloanorigination,asreportedbythesellerofthemortgageloan.

NewlyoriginatedAlt-AloansfortheapplicableperiodsconsistoftherefinanceofexistingloansunderourRefiPlusinitiative.ForadescriptionofourAlt-Aloanclassificationcriteria,refertoFannieMae’s2016Form10-K.

(1)

(2)

(3)

(4)

Single-FamilyAcquisitions

5.4%

7.1%

23.0%

Single-FamilyAcquisitions

4.9%

6.9%

22.8%

Single-FamilyAcquisitions

California

Texas

Florida 6.0%

7.3%

20.3%

Single-FamilyAcquisitions

5.8%

7.6%

21.7%

Single-FamilyAcquisitions

4.6%

6.3%

23.7%

Single-FamilyAcquisitions

5.1%

6.9%

22.9%

©2017FannieMae.TrademarksofFannieMae. 6

AcquisitionPeriod

(4)

(2) (2) (2) (2) (2) (2)

(3)

(1)

Top3GeographicConcentrations
Percentagecalculatedbasedonunpaidprincipalbalanceofloansattimeofacquisition.Single-familybusinessacquisitionsrefertosingle-familymortgageloansweacquirethroughpurchaseorsecuritization

transactions.

FICOcreditscoreisasofloanorigination,asreportedbythesellerofthemortgageloan.FICOcreditscoresatoriginationbelow620primarilyconsistoftherefinanceofexistingloansunderourRefiPlus

initiative,whichincludestheHomeAffordableRefinanceProgram(“HARP”).OurRefiPlusinitiativeprovidesexpandedrefinanceopportunitiesforeligibleFannieMaeborrowers,andmayinvolvetherefinance

ofexistingFannieMaeloanswithhighloan-to-valueratios,includingloanswithloan-to-valueratiosinexcessof100%.

Single-familybusinessacquisitionsfortheapplicableperiodexcludingloansacquiredunderourRefiPlusinitiative,whichincludesHARP.

<=60%

60.01%

to80%

80.01%

to100% >100% Total

>=740

660to<740

620to<660

<620

Total 100.0%

0.4%

5.0%

35.2%

59.4%

0.3%

0.0%

0.0%

0.2%

0.1%

25.7%

0.1%

1.1%

10.3%

14.2%

52.3%

0.1%

2.8%

18.4%

30.9%

21.7%

0.1%

1.1%

6.3%

14.2%

<=60%

60.01%

to80%

80.01%

to100% >100% Total

>=740

660to<740

620to<660

<620

Total 100.0%

0.5%

5.2%

34.4%

59.8%

0.6%

0.1%

0.1%

0.3%

0.2%

27.2%

0.1%

1.2%

10.6%

15.2%

53.5%

0.2%

2.8%

18.3%

32.1%

18.7%

0.1%

1.0%

5.2%

12.3%

<=60%

60.01%

to80%

80.01%

to95% >95% Total

>=740

660to<740

620to<660

Total 100.0%

4.7%

34.9%

60.4%

3.3%

0.1%

1.6%

1.6%

22.6%

0.8%

8.8%

13.0%

53.0%

2.7%

18.6%

31.7%

21.1%

1.0%

6.0%

14.1%

<=60%

60.01%

to80%

80.01%

to95% >95% Total

>=740

660to<740

620to<660

Total 100.0%

4.7%

34.1%

61.2%

1.8%

0.1%

0.9%

0.8%

25.5%

1.0%

9.7%

14.7%

54.6%

2.7%

18.6%

33.3%

18.1%

0.9%

4.9%

12.3%

CreditProfileforSingle-FamilyAcquisitions(ExcludingRefiPlus)

FICOCreditScoreFICOCreditScoreFICOCreditScore

FICOCreditScoreFICOCreditScoreFICOCreditScore

(1)

(2)

(3)

©2017FannieMae.TrademarksofFannieMae. 7

<=60%

60.01%

to80%

80.01%

to95% >95% Total

>=740

660to<740

620to<660

Total 0.0%

0.0%

0.8%

-0.8%

1.5%

0.0%

0.7%

0.8%

-2.9%

-0.1%

-1.0%

-1.8%

-1.6%

0.0%

0.0%

-1.6%

3.0%

0.1%

1.0%

1.8%

<=60%

60.01%

to80%

80.01%

to100% >100% Total

>=740

660to<740

620to<660

<620

Total 0.0%

-0.2%

-0.2%

0.7%

-0.4%

-0.3%

0.0%

0.0%

-0.1%

-0.1%

-1.5%

-0.1%

-0.2%

-0.3%

-0.9%

-1.2%

-0.1%

-0.1%

0.1%

-1.2%

3.0%

0.0%

0.1%

1.1%

1.8%

CreditProfileforSingle-FamilyAcquisitions

CreditRiskProfileSummaryofSingle-FamilyBusinessAcquisitions

FortheThree

MonthsEnded

March31,2017

FortheThree

MonthsEnded

March31,2017

FortheThree

MonthsEnded

March31,2016

FortheThree

MonthsEnded

March31,2016

Changein

Acquisitions

Profile

Changein

Acquisitions

Profile

OriginationLTVRatio OriginationLTVRatio OriginationLTVRatio

OriginationLTVRatio OriginationLTVRatio OriginationLTVRatio

(2)(2)(2)

(2)(2)(2)

(3)

(1)
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

40%

60%

80%

100%

OriginationLTV

Ratio

0%

5%

10%

15%

20%

%ofSingle-FamilyBusinessAcquisitions

OriginationLoan-to-Value(OLTV)Ratio

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

660

680

700

720

740

760

780

FIC

O

CreditScore

0%

5%

10%

15%

20%

%ofSingle-FamilyBusinessAcquisitions

FICOCreditScore

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

0%

20%

40%

60%

80%

100%

%ofSingle-FamilyBusinessAcquisitions

ShareofSingle-FamilyBusinessAcquisitions:

Fixed-rateProduct

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

0%

20%

40%

60%

80%

100%

%ofSingle-FamilyBusinessAcquisitions

ShareofSingle-FamilyBusinessAcquisitions:

LoanPurpose-Purchase

ProductFeature

WeightedAverageOriginationLTVRatio OriginationLTV>90% WeightedAverageFICOCreditScore FICOCreditScore<620

Percentagecalculatedbasedonunpaidprincipalbalanceofloansattimeofacquisition.Single-familybusinessacquisitionsrefertosingle-familymortgageloansweacquirethroughpurchaseorsecuritization

transactions.

FICOcreditscoreisasofloanorigination,asreportedbythesellerofthemortgageloan.Loansacquiredafter2009withFICOcreditscoresatoriginationbelow620primarilyconsistoftherefinanceofexisting

loansunderourRefiPlusinitiative,whichincludesHARP.

CertainCreditCharacteristicsofSingle-FamilyBusinessAcquisitions:2006-2017

(1)

(2)

.

©2017FannieMae.TrademarksofFannieMae. 8

*Year-to-datethroughMarch31,2017.

(2)

(1)

* *

* *
2010 2011 2012 2013 2014 2015 2016 2017

0%

20%

40%

60%

80%

100%

%ofSingle-FamilyBusinessAcquisitions

2% 1% 1%

4% 3% 3%

6%

16% 14% 10% 10%

6%

9%

9%

14% 14%

36% 48% 52% 51%

48%

54% 52% 55%

45% 44% 45%

52%

30%

23% 24% 21%

Single-FamilyBusinessAcquisitionsbyLoanPurpose

HARP RefiPlusAcquisitions(ExcludingHARP) RefinanceAcquisitions(ExcludingRefiPlus) PurchaseAcquisitions

2010

HARP

RefiPlus

(Excl.

HARP)

2011

HARP

RefiPlus

(Excl.

HARP)

2012

HARP

RefiPlus

(Excl.

HARP)

2013

HARP

RefiPlus

(Excl.

HARP)

2014

HARP

RefiPlus

(Excl.

HARP)

2015

HARP

RefiPlus

(Excl.

HARP)

2016

HARP

RefiPlus

(Excl.

HARP)

2017

HARP

RefiPlus

(Excl.

HARP)

UnpaidPrincipalBalance(UPB)($B)

WeightedAverageOriginationNoteRate 4.68%

$80.5

5.00%

$59.0

4.44%

$81.2

4.78%

$55.6

3.89%

$73.8

4.14%

$129.9

3.80%

$64.4

4.04%

$99.5

4.39%

$23.5

4.62%

$21.5

4.08%

$19.2

4.23%

$11.2

3.89%

$14.7

4.05%

$7.4

4.00%

$3.6

4.17%

$1.5

CreditCharacteristicsofSingle-FamilyBusinessAcquisitionsUndertheRefiPlusInitiative

OurRefiPlusinitiative,whichstartedinApril2009,includestheHomeAffordableRefinanceProgram(“HARP”).OurRefiPlusinitiativeprovidesexpandedrefinanceopportunitiesforeligibleFannieMae

borrowers,andmayinvolvetherefinanceofexistingFannieMaeloanswithhighloan-to-valueratios,includingloanswithloan-to-valueratiosinexcessof100%.

FICOcreditscoreisasofloanorigination,asreportedbythesellerofthemortgageloan.

©2017FannieMae.TrademarksofFannieMae. 9

<=80%

80.01%to105%

105.01%to125%

>125%

WeightedAverageOriginationLTVRatio 62.3%

0.0%

0.0%

0.0%

100.0%

92.2%

0.0%

5.6%

94.4%

0.0%

60.2%

0.0%

0.0%

0.0%

100.0%

94.3%

0.0%

11.9%

88.1%

0.0%

61.1%

0.0%

0.0%

0.0%

100.0%

111.0%

20.7%

22.1%

57.2%

0.0%

60.2%

0.0%

0.0%

0.0%

100.0%

109.8%

20.1%

21.5%

58.4%

0.0%

61.3%

0.0%

0.0%

0.0%

100.0%

101.5%

9.9%

16.9%

73.3%

0.0%

60.4%

0.0%

0.0%

0.0%

100.0%

98.4%

7.0%

15.0%

78.0%

0.0%

60.0%

0.0%

0.0%

0.0%

100.0%

96.9%

5.4%

13.5%

81.1%

0.0%

58.6%

0.0%

0.0%

0.0%

100.0%

96.3%

4.9%

12.8%

82.4%

0.0%

OriginationLTVRatio

<620

620to<660

660to<740

>=740

WeightedAverageFICOCreditScore 760

72.3%

23.9%

2.4%

1.4%

746

61.2%

33.1%

3.6%

2.0%

758

70.0%

25.6%

2.8%

1.7%

746

61.5%

32.6%

3.8%

2.1%

753

66.9%

26.0%

4.2%

2.9%

738

56.6%

33.8%

6.0%

3.7%

737

55.8%

31.9%

6.9%

5.3%

722

45.1%

38.7%

9.5%

6.7%

717

43.0%

36.5%

11.2%

9.3%

704

33.9%

41.0%

14.5%

10.6%

722

46.3%

34.4%

10.5%

8.8%

706

34.8%

41.1%

14.6%

9.5%

717

41.6%

37.5%

11.6%

9.2%

703

30.8%

44.9%

15.3%

9.1%

715

40.3%

38.8%

11.8%

9.1%

703

30.0%

46.6%

15.1%

8.3%

FICOCreditScores

(1)

(2)

*Year-to-datethroughMarch31,2017.

AcquisitionYear

(1)

(2)

*

*

Acquisitions
Overall Book

Origination Year

2017 2016 2015 2014 2013 2012 2011 2010 2009

2008 &

Earlier

Unpaid Principal Balance (UPB) ($B)

Share of Single-Family Conventional Guaranty Book

Average Unpaid Principal Balance

Serious Delinquency Rate

Weighted Average Origination LTV Ratio

Origination LTV Ratio > 90%

Weighted Average Mark-to-Market LTV Ratio

Mark-to-Market LTV Ratio > 100% and <= 125%

Mark-to-Market LTV Ratio > 125%

Weighted Average FICO Credit Score

FICO < 620

Interest Only

Negative Amortizing

Fixed-rate

Primary Residence

Condo/Co-op

Credit Enhanced

Cumulative Default Rate n/a

35.1%

9.3%

88.3%

94.4%

0.1%

1.6%

2.0%

745

0.4%

1.4%

59.7%

16.4%

74.8%

1.12%

$163,896

100.0%

$2,818.7

n/a

16.6%

9.3%

89.3%

70.0%

0.9%

11.7%

9.3%

699

2.1%

6.3%

61.8%

14.4%

75.2%

4.35%

$99,794

11.9%

$335.1

0.8%

3.9%

8.7%

90.5%

97.3%

0.0%

1.1%

0.9%

751

0.0%

0.3%

50.0%

6.4%

69.5%

0.94%

$136,342

3.4%

$94.6

0.6%

5.0%

8.1%

89.0%

96.5%

0.0%

0.9%

0.8%

756

0.0%

0.2%

48.1%

10.1%

71.0%

0.58%

$139,044

4.9%

$137.1

0.4%

7.1%

8.4%

86.9%

96.1%

0.0%

0.5%

0.8%

757

0.0%

0.1%

46.5%

12.3%

71.1%

0.45%

$140,157

5.9%

$167.3

0.4%

23.3%

8.7%

88.6%

98.0%

0.0%

0.3%

1.1%

759

0.3%

1.3%

50.6%

19.0%

76.5%

0.32%

$172,089

16.4%

$463.4

0.3%

46.2%

10.0%

85.9%

97.9%

0.0%

0.2%

1.8%

750

0.4%

1.6%

55.7%

20.6%

76.8%

0.41%

$169,515

14.3%

$403.1

0.1%

61.0%

9.8%

85.9%

96.0%

0.0%

0.0%

1.5%

742

0.2%

0.7%

63.1%

19.9%

76.9%

0.47%

$173,527

8.0%

$225.5

0.0%

64.8%

9.7%

88.1%

97.8%

0.0%

0.0%

0.6%

748

0.1%

0.4%

65.9%

16.7%

75.1%

0.21%

$202,357

13.2%

$371.6

0.0%

39.6%

9.5%

90.3%

98.7%

0.0%

0.0%

0.3%

750

0.0%

0.3%

70.1%

15.2%

73.6%

0.05%

$226,082

19.8%

$558.9

0.0%

28.2%

9.5%

87.9%

97.7%

0.0%

0.0%

0.4%

743

0.1%

0.3%

73.4%

15.0%

73.6%

0.00%

$215,483

2.2%

$62.3

Excludes non-Fannie Mae securities held in portfolio and those Alt-A and subprime wraps for which Fannie Mae does not have loan-level information. Fannie Mae had access to detailed loan-level information

for approximately 99% of its single-family conventional guaranty book of business as of March 31, 2017.

FICO credit score is as of loan origination, as reported by the seller of the mortgage loan. Loans acquired after 2009 with FICO credit scores at origination below 620 primarily consist of the refinance of existing

loans under our Refi Plus initiative, which includes HARP.

Percentage of loans in our single-family conventional guaranty book of business, measured by unpaid principal balance, included in an agreement used to reduce credit risk by requiring collateral, letters of

credit, mortgage insurance, corporate guarantees, inclusion in a credit risk transfer transaction reference pool, or other agreement that provides for our compensation to some degree in the event of a financial

loss relating to the loan. Because we include loans in reference pools for our Connecticut Avenue SecuritiesTM and Credit Insurance Risk TransferTM credit risk transfer transactions on a lagged basis (typically

about six months to one year after we initially acquire the loans), we expect the percentage of our 2016 and 2017 single-family loan acquisitions with credit enhancement will increase in the future.

Defaults include loan foreclosures, short sales, sales to third parties at the time of foreclosure and deeds-in-lieu of foreclosure. Cumulative Default Rate is the total number of single-family conventional loans in

the guaranty book of business originated in the identified year that have defaulted, divided by the total number of single-family conventional loans in the guaranty book of business originated in the identified

year. For 2008 and earlier cumulative default rates, refer to slide 18.

© 2017 Fannie Mae. Trademarks of Fannie Mae. 10

(1)

(2)

(3)

(4)

.

Credit Characteristics of Single-Family Conventional Guaranty Book of Business by Origination Year

(1)

(1)

(2)

(2)

(3)

(4)

As of March 31, 2017
Categories Not Mutually Exclusive

Interest Only

Loans

Loans with

FICO < 620

Loans with FICO ≥

620 and < 660

Loans with

Origination LTV

Ratio > 90%

Loans with FICO

< 620 and

Origination LTV

Ratio > 90%

Alt-A Loans Refi Plus

Including HARP

Unpaid Principal Balance (UPB) ($B)

Share of Single-Family Conventional Guaranty Book

Average Unpaid Principal Balance

Serious Delinquency Rate

Acquisition Years 2005-2008

Weighted Average Origination LTV Ratio

Origination LTV Ratio > 90%

Weighted Average Mark-to-Market LTV Ratio

Mark-to-Market LTV Ratio > 100% and <= 125%

Mark-to-Market LTV Ratio > 125%

Weighted Average FICO Credit Score

FICO < 620

Fixed-rate

Primary Residence

Condo/Co-op

Credit Enhanced 11.8%

9.3%

84.2%

99.0%

5.6%

732

1.0%

4.1%

61.7%

38.9%

86.3%

0.0%

0.77%

$144,542

14.9%

$419.6

9.6%

9.5%

77.0%

66.9%

3.2%

710

3.0%

8.9%

68.8%

17.0%

79.1%

57.2%

4.87%

$143,717

3.0%

$83.6

51.2%

5.9%

94.0%

89.8%

100.0%

582

6.6%

16.2%

87.1%

100.0%

108.7%

28.7%

7.84%

$130,605

0.6%

$16.8

68.4%

9.6%

93.5%

96.8%

3.7%

731

1.7%

5.6%

82.0%

100.0%

102.4%

7.4%

1.82%

$172,387

16.4%

$460.9

31.7%

6.0%

93.2%

89.2%

0.0%

642

1.5%

4.5%

66.1%

22.4%

78.7%

24.6%

3.87%

$136,496

5.3%

$149.5

21.3%

4.7%

94.2%

85.0%

100.0%

583

2.7%

7.3%

68.0%

30.6%

82.0%

38.7%

6.63%

$115,757

2.0%

$55.0

13.4%

14.3%

85.9%

24.6%

1.7%

721

3.9%

12.0%

75.3%

8.5%

74.4%

82.1%

6.30%

$224,709

1.6%

$44.4

Loans with multiple product features are included in all applicable categories. The subtotal is calculated by counting a loan only once even if it is included in multiple categories.

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

For a description of our Alt-A loan classification criteria, refer to Fannie Mae’s 2016 Form 10-K.

Our Refi Plus initiative, which started in April 2009, includes the Home Affordable Refinance Program (“HARP”). Our Refi Plus initiative provides expanded refinance opportunities for eligible Fannie Mae

borrowers, and may involve the refinance of existing Fannie Mae loans with high loan-to-value ratios, including loans with loan-to-value ratios in excess of 100%.

Excludes non-Fannie Mae securities held in portfolio and those Alt-A and subprime wraps for which Fannie Mae does not have loan-level information. Fannie Mae had access to detailed loan-level information

for approximately 99% of its single-family conventional guaranty book of business as of March 31, 2017.

Percentage of loans in our single-family conventional guaranty book of business, measured by unpaid principal balance, included in an agreement used to reduce credit risk by requiring collateral, letters of

credit, mortgage insurance, corporate guarantees, inclusion in a credit risk transfer transaction reference pool, or other agreement that provides for our compensation to some degree in the event of a financial

loss relating to the loan.

© 2017 Fannie Mae. Trademarks of Fannie Mae. 11

Subtotal of

Certain Product

Features

38.9%

8.7%

90.4%

91.6%

6.1%

718

1.1%

3.8%

69.0%

50.7%

86.1%

14.5%

2.15%

$150,601

32.2%

$908.2

Credit Characteristics of Single-Family Conventional Guaranty Book of Business by Certain Product Features

(1)

(2)

(3)

(4)

(5)

(6)

.

(1)

(2) (3)

(2)

(2)

(4)

(5)

(5)

(6)

As of March 31, 2017 (2)

(2)

(1)
Midwest

Northeast

Southeast

Southwest

West 11.5%

7.1%

25.5%

37.4%

18.5%

880

660

880

1,452

604

3,329

3,762

9,330

9,960

8,170

1,460

1,916

4,421

3,445

3,486

859

1,588

3,424

2,713

2,602

0.58%

0.76%

1.30%

2.07%

1.03%

11.0%

12.8%

27.5%

31.4%

17.3%

1.0%

0.7%

2.7%

2.5%

2.1%

52.7%

60.3%

63.5%

60.9%

64.9%

28.1%

17.0%

22.1%

18.1%

14.8%

$791.0

$480.3

$621.5

$509.9

$416.0

Regions

Based on the unpaid principal balance (UPB) of the single-family conventional guaranty book of business as of March 31, 2017. Excludes non-Fannie Mae securities held in portfolio and those Alt-A and

subprime wraps for which Fannie Mae does not have loan-level information. Fannie Mae had access to detailed loan-level information for approximately 99% of its single-family conventional guaranty book of

business as of March 31, 2017.

“Seriously delinquent loans” refers to single-family conventional loans that are 90 days or more past due or in the foreclosure process. “Seriously delinquent loan share” refers to the percentage of our singlefamily seriously delinquent loan population in the applicable state or region. “Serious delinquency rate” refers to the number of single-family conventional loans that were seriously delinquent in the applicable

state or region, divided by the number of loans in our single-family conventional guaranty book of business in that state or region.

Measured from the borrowers’ last paid installment on their mortgages to when the related properties were added to our REO inventory for foreclosures completed during the first three months of 2017. Home

Equity Conversion Mortgages (HECMs) insured by HUD are excluded from this calculation.

Expressed as a percentage of credit losses for the single-family guaranty book of business. Credit losses consist of (a) charge-offs, net of recoveries and (b) foreclosed property expense (income), adjusted to

exclude the impact of fair value losses resulting from credit-impaired loans acquired from MBS trusts. For information on total credit losses, refer to Fannie Mae’s 2017 Q1 Form 10-Q.

Select states represent the top ten states in UPB of the single-family conventional guaranty book of business as of March 31, 2017.

For information on which states are included in each region, refer to the single-family mortgage credit risk management discussion in Fannie Mae’s 2017 Q1 Form 10-Q.

© 2017 Fannie Mae. Trademarks of Fannie Mae. 12

Credit Characteristics of Single-Family Conventional Guaranty Book of Business and Single-Family Real Estate

Owned (REO) in Select States

SF Conventional Guaranty Book of Business

 as of March 31, 2017

Seriously Delinquent Loans

as of March 31, 2017 Real Estate Owned (REO) Credit Loss

(1)

(2)

(3)

(4)

(5)

(6)

All States $2,818.7 100.0% 59.7% 1.8% 100.0% 1.12% 11,186 14,728 34,551 924 100.0%

Unpaid Principal

Balance (UPB)

($B)

Share of

Single-Family

Conventional

Guaranty Book

Weighted

Average

Mark-to-Market

LTV Ratio

Mark-to-Market

LTV >100%

Seriously

Delinquent Loan

Share

Serious

Delinquency

Rate

Q1 2017

Acquisitions

(# of properties)

Q1 2017

Dispositions

(# of properties)

REO Ending

Inventory

as of 3/31/17

Average Days to

Foreclosure

% of 2017 Credit

Losses

California

Texas

Florida

New York

Illinois

New Jersey

Washington

Virginia

Pennsylvania

Massachusetts 1.8%

4.7%

1.5%

0.8%

12.4%

8.6%

11.8%

12.5%

1.0%

7.4%

1,362

904

620

1,024

1,833

755

1,859

1,331

631

669

914

1,595

806

546

3,309

2,497

2,003

3,287

844

1,329

315

634

357

298

1,119

1,066

677

1,814

383

630

177

563

278

145

883

695

480

1,335

347

384

1.32%

1.58%

0.75%

0.65%

2.85%

1.39%

2.48%

1.73%

0.66%

0.47%

2.8%

5.0%

2.0%

1.8%

7.9%

5.4%

9.9%

9.8%

4.0%

5.7%

0.6%

1.5%

1.6%

0.3%

4.7%

5.0%

2.1%

5.6%

0.0%

0.9%

57.0%

64.2%

63.0%

55.8%

64.8%

67.1%

55.5%

63.8%

58.8%

50.4%

2.9%

3.0%

3.5%

3.6%

3.8%

3.8%

5.2%

5.6%

6.1%

19.6%

$82.3

$84.1

$97.9

$100.9

$106.0

$108.4

$146.8

$158.2

$171.9

$553.0

(1) (2)

(3) (4)

(6)

Select States(5) (2) (2)

Total
Based on states with the largest volume of seriously delinquent loans in our single-family conventional guaranty book of business as of March 31, 2017.

“Seriously delinquent loan share” refers to the percentage of our single-family seriously delinquent loan population in the applicable state.

Share of REO ending inventory calculated as the number of properties in the single-family REO ending inventory for the state divided by the total number of single-family properties in the REO ending inventory

for the specified time period.

2014

Q4

2015

Q1

2015

Q2

2015

Q3

2015

Q4

2016

Q1

2016

Q2

2016

Q3

2016

Q4

2017

Q1

0K

40K

80K

120K

160K

200K

240K

280K

320K

360K

SDQ Volume

0%

5%

10%

15%

20%

25%

193K

330K

9.9%

9.8%

5.7%

10.3%

9.9%

7.9%

5.6%

5.4%

15.1%

5.2%

Seriously Delinquent Loan Share by Select States

California

Florida

Illinois

New Jersey

New York

SDQ Volume

2014

Q4

2015

Q1

2015

Q2

2015

Q3

2015

Q4

2016

Q1

2016

Q2

2016

Q3

2016

Q4

2017

Q1

0K

20K

40K

60K

80K

100K

REO Ending Inventory

0%

5%

10%

15%

20%

25%

35K

87K

5.8%

7.2%

2.3%

3.5%

9.6%

10.5%

21.8%

9.5%

4.1%

3.8%

REO Ending Inventory Share by Select States

California

Florida

Illinois

New Jersey

New York

REO Ending Inventory

(1)

(2)

(3)

.

Seriously Delinquent Loan and REO Ending Inventory Share by Select States

© 2017 Fannie Mae. Trademarks of Fannie Mae. 13

(1)

(2) (3)
Single-Family Short Sales and REO Sales Prices to Unpaid Principal Balance (UPB) of Mortgage Loans

2014

Q4

2015

Q1

2015

Q2

2015

Q3

2015

Q4

2016

Q1

2016

Q2

2016

Q3

2016

Q4

2017

Q1

60%

70%

80%

90%

68.6%

69.8%

72.4% 72.6% 73.1%

75.0% 73.9% 73.6% 72.5%

74.1%

75.2%

76.3%

79.3% 79.9%

81.9% 80.9% 80.3%

79.3% 79.7% 80.9%

REO Direct Sale Dispositions: Sales Prices to UPB

Net Sales Prices to UPB Trends for Top 10 States

REO Gross Sales/UPB REO Net Sales/UPB

2014

Q4

2015

Q1

2015

Q2

2015

Q3

2015

Q4

2016

Q1

2016

Q2

2016

Q3

2016

Q4

2017

Q1

60%

70%

80%

90%

72.2% 72.6%

73.8% 73.5% 73.3% 73.6% 74.1% 74.6% 73.7% 74.1%

80.4% 80.7% 82.0% 81.7%

83.2%

82.0% 82.7% 82.4% 82.4% 82.5%

Short Sales: Sales Prices to UPB

Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017

Florida

New Jersey

Illinois

Ohio

New York

Michigan

Pennsylvania

California

Maryland

Missouri 71.6%

70.4%

88.3%

60.6%

62.4%

68.3%

58.6%

64.7%

63.9%

80.5%

64.3%

70.4%

87.2%

64.9%

60.9%

66.9%

58.1%

63.3%

63.0%

79.7%

64.4%

69.3%

88.1%

65.0%

62.7%

68.2%

59.2%

64.3%

59.9%

80.1%

67.6%

73.8%

86.6%

66.6%

65.7%

64.5%

62.4%

63.2%

61.0%

79.5%

64.0%

71.4%

82.6%

61.0%

66.0%

61.4%

62.6%

63.9%

59.6%

78.3%

Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017

Florida

Illinois

New Jersey

California

New York

Maryland

Nevada

Arizona

Pennsylvania

Virginia 79.5%

72.5%

80.3%

70.7%

70.0%

74.7%

81.9%

62.5%

70.6%

74.3%

78.2%

73.7%

79.4%

73.3%

73.0%

74.8%

81.4%

65.1%

69.1%

73.4%

78.6%

75.3%

79.0%

74.3%

70.8%

72.9%

80.8%

65.8%

70.9%

73.1%

80.3%

73.6%

79.1%

74.4%

70.8%

71.6%

81.2%

64.9%

65.8%

71.8%

77.5%

75.1%

74.8%

71.2%

71.2%

72.1%

79.4%

66.0%

66.1%

73.9%

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

Includes REO properties that have been sold to a third party (excluding properties that have been repurchased by the seller/servicer, acquired by a mortgage insurance company, or redeemed by a borrower).

Sales Prices to UPB are calculated as the sum of sales proceeds received divided by the aggregate unpaid principal balance (UPB) of the related loans. Gross sales price represents the contract sale price. Net

sales price represents the contract sale price less charges/credits paid by or due to the seller or other parties at closing.

The states shown had the greatest volume of properties sold in the first three months of 2017 in each respective category.

© 2017 Fannie Mae. Trademarks of Fannie Mae. 14

(1)

(2)

(3)

(1) (2) (2)

(2)(3)

REO Net Sales

Prices to UPB

Short Sales

Net Sales

Prices to UPB
Foreclosure Alternatives

Consists of (a) modifications, which do not include trial modifications, loans to certain borrowers who have received bankruptcy relief that are accounted for as troubled debt restructurings, or repayment plans

or forbearances that have been initiated but not completed and (b) repayment plans and forbearances completed.

Consists of (a) short sales, in which the borrower, working with the servicer and Fannie Mae, sells the home prior to foreclosure for less than the amount owed to pay off the loan, accrued interest and other

expenses from the sale proceeds and (b) deeds-in-lieu of foreclosure, which involve the borrower’s voluntarily signing over title to the property.

2014

Q4

2015

Q1

2015

Q2

2015

Q3

2015

Q4

2016

Q1

2016

Q2

2016

Q3

2016

Q4

2017

Q1

0K

5K

10K

15K

20K

25K

30K

35K

# of Loans

2K

2K 2K 2K

2K 2K 2K 1K 1K 1K 4K 4K 4K 4K 3K 3K 3K 3K 2K 2K

7K

6K 6K 6K

5K 5K 4K 4K 4K 3K

© 2017 Fannie Mae. Trademarks of Fannie Mae. 15

Short Sales

Deeds-in-Lieu

2014

Q4

2015

Q1

2015

Q2

2015

Q3

2015

Q4

2016

Q1

2016

Q2

2016

Q3

2016

Q4

2017

Q1

0K

5K

10K

15K

20K

25K

30K

35K

# of Loans

20K

17K

21K 21K 21K

19K

22K

26K 27K 26K

2K

2K

2K 2K 1K

1K

1K

2K 2K

2K

28K

29K

28K

24K

20K

22K 23K 22K

19K

22K

Modifications

Repayment Plans and Forbearances Completed

(1)

(2)

.

Home Retention Solutions

Single-Family Loan Workouts

(1) (2)
Modifications reflect permanent modifications which does not include loans currently in trial modifications.

Defined as total number of completed modifications for the time periods noted.

2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4

Modifications 32,010 28,861 25,908 26,700 26,214 22,199 19,099 20,899 21,278 20,802 17,325

Re-performance Rates of Modified Single-Family Loans

© 2017 Fannie Mae. Trademarks of Fannie Mae. 16

(1)

(2)

3 Months Post Modification

6 Months Post Modification

9 Months Post Modification

12 Months Post Modification

15 Months Post Modification

18 Months Post Modification

21 Months Post Modification

24 Months Post Modification n/a

n/a

n/a

n/a

n/a

n/a

n/a

77%

n/a

n/a

n/a

n/a

n/a

n/a

69%

75%

n/a

n/a

n/a

n/a

n/a

67%

68%

77%

n/a

n/a

n/a

n/a

66%

65%

70%

79%

n/a

n/a

n/a

64%

64%

67%

72%

78%

n/a

n/a

63%

62%

64%

67%

69%

76%

n/a

65%

64%

64%

67%

67%

69%

77%

67%

65%

65%

66%

67%

68%

72%

79%

67%

66%

67%

66%

67%

70%

74%

80%

68%

68%

67%

67%

69%

71%

74%

79%

69%

68%

66%

67%

70%

71%

72%

79%

% Current or Paid Off

(1)

(2)
Based on the unpaid principal balance (UPB) of the single-family conventional guaranty book of business as of December 31 for the time periods noted, with the exception of 2017 which is as of March 31.

Based on the single-family credit losses for the year ended December 31 for the time periods noted, with the exception of 2017 which is as of March 31. Credit losses consist of (a) charge-offs, net of recoveries and (b) foreclosed property expense (income), adjusted to exclude the impact of fair value losses resulting from credit-impaired loans acquired from MBS trusts. Does not reflect the impact of recoveries that have not been allocated to specific loans. Negative values are the result of recoveries on previously recognized credit losses. Beginning in 2015, includes the impact of credit losses associated with our redesignation from held for investment to held for sale of

certain nonperforming single-family loans expected to be sold in the foreseeable future. Also, 2015 credit losses include the impact of our approach to adopting the charge-off provisions of the Federal Housing Finance Agency’s

Advisory Bulletin AB 2012-02, “Framework for Adversely Classifying Loans, Other Real Estate Owned, and Other Assets and Listing Assets for Special Mention” on January 1, 2015.

Loans with multiple product features are included in all applicable categories. Categories are not mutually exclusive.

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

Newly originated Alt-A loans acquired after 2008 consist of the refinance of existing loans under our Refi Plus Initiative. For a description of our Alt-A loan classification criteria, refer to Fannie Mae’s 2016 Form 10-K.

For a description of our subprime loan classification criteria, refer to Fannie Mae’s 2016 Form 10-K.

Select states represent the top ten states with the highest percentage of single-family credit losses for the three months ended March 31, 2017.

© 2017 Fannie Mae. Trademarks of Fannie Mae. 17

Credit Loss Concentration of Single-Family Conventional Guaranty Book of Business

(1)

(2)

(3)

(4)

(5)

(6)

(7)

Florida

New Jersey

New York

Illinois

California

Pennsylvania

Maryland

Ohio

Connecticut

Nevada

All Other States 50.6%

1.0%

1.4%

2.2%

2.8%

3.1%

19.0%

4.2%

5.6%

4.0%

6.0%

50.8%

1.0%

1.4%

2.1%

2.8%

3.1%

19.6%

4.1%

5.6%

4.0%

5.7%

51.0%

1.0%

1.3%

2.1%

2.7%

3.0%

19.6%

4.1%

5.5%

4.0%

5.6%

51.4%

1.0%

1.3%

2.0%

2.7%

3.0%

19.7%

4.0%

5.4%

3.9%

5.6%

51.9%

1.0%

1.3%

2.0%

2.7%

3.0%

19.6%

3.9%

5.2%

3.8%

5.6%

52.0%

1.0%

1.3%

2.0%

2.7%

3.0%

19.6%

3.8%

5.2%

3.8%

5.6%

35.4%

4.8%

0.9%

3.3%

1.8%

1.6%

18.4%

9.6%

0.9%

2.0%

21.4%

32.1%

3.8%

1.4%

4.1%

3.1%

3.0%

5.1%

12.9%

1.9%

3.7%

28.9%

26.7%

1.4%

2.8%

4.2%

5.9%

4.2%

-0.8%

10.9%

4.8%

7.2%

32.6%

18.6%

1.8%

2.3%

2.2%

3.8%

3.4%

1.4%

7.8%

16.4%

21.6%

20.8%

29.5%

1.2%

2.7%

4.3%

3.9%

5.0%

2.1%

8.7%

18.3%

16.5%

7.9%

29.6%

2.2%

2.9%

3.6%

4.2%

4.7%

7.4%

8.6%

11.8%

12.4%

12.5%

Select State

% of Single-Family Conventional Guaranty Book of Business

2017 2016 2015 2014 2013 2012

% of Single-Family Credit Losses

2017 2016 2015 2014 2013 2012

Negative Amortizing

Interest Only

FICO < 620

FICO 620 to < 660

Origination LTV Ratio > 90%

FICO < 620 and Origination LTV Ratio > 90%

Alt-A

Subprime

Refi Plus including HARP 16.5%

0.2%

5.6%

0.7%

12.8%

6.0%

2.9%

3.7%

0.3%

19.5%

0.1%

4.7%

0.7%

15.1%

5.5%

2.6%

2.9%

0.2%

19.1%

0.1%

4.2%

0.7%

15.9%

5.5%

2.5%

2.5%

0.2%

17.6%

0.1%

3.7%

0.7%

16.3%

5.5%

2.3%

2.1%

0.1%

15.4%

0.1%

3.1%

0.6%

16.4%

5.3%

2.0%

1.7%

0.1%

14.9%

0.1%

3.0%

0.6%

16.4%

5.3%

2.0%

1.6%

0.1%

3.5%

1.1%

23.7%

2.3%

16.8%

14.2%

7.8%

21.8%

0.5%

7.4%

-0.2%

26.0%

2.0%

20.8%

15.7%

7.0%

18.7%

0.8%

10.4%

1.3%

17.4%

2.9%

15.3%

17.6%

12.1%

10.2%

0.9%

7.8%

1.6%

29.3%

2.7%

16.4%

18.3%

11.1%

18.0%

1.2%

14.0%

1.3%

24.9%

3.9%

21.9%

21.3%

14.5%

12.2%

0.3%

15.0%

1.1%

18.5%

4.3%

25.3%

19.3%

13.3%

14.2%

0.2%

2009 - YTD 2017

2005 - 2008

2004 & Prior 13.1%

21.7%

65.3%

9.1%

14.7%

76.2%

7.3%

12.2%

80.5%

5.8%

10.1%

84.1%

4.5%

8.1%

87.4%

4.2%

7.7%

88.1%

13.1%

81.8%

5.1%

12.4%

77.6%

10.0%

12.0%

74.7%

13.3%

12.1%

77.6%

10.3%

16.4%

64.7%

19.0%

13.2%

65.4%

21.4%

Vintage

(1) (2)

(3)

(4)

(4)

(4)

(5)

(6)

(7)

Certain Product Features
© 2017 Fannie Mae. Trademarks of Fannie Mae. 18

Note: Defaults include loan foreclosures, short sales, sales to third parties at the time of foreclosure and deeds-in-lieu of foreclosure. Cumulative Default Rate is the total number of single-family conventional loans in

the guaranty book of business originated in the identified year that have defaulted, divided by the total number of single-family conventional loans in the guaranty book of business originated in the identified year.

Data as of March 31, 2017 is not necessarily indicative of the ultimate performance of the loans and performance is likely to change, perhaps materially, in future periods. 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%

16.0%

Cumulative Default Rate

2007

2006

2005

2008

2004

2003

2002

2013 2012 2011 2010 2009 2015 2014 2017 2016

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Cumulative Default Rates of Single-Family Conventional Guaranty Book of Business by Origination Year

Time Since Beginning of Origination Year
LoanCount UPB($B)

%ofMultifamily

GuarantyBookof

Business

%DUS®Loans

%Seriously

Delinquent

YTD2017

MultifamilyCredit

Losses($M)

2016Multifamily

CreditLosses($M)

2015Multifamily

CreditLosses($M)

TotalMultifamilyGuarantyBookofBusiness 28,967 $253.3 100% 97% 0.05% $0 ($4) ($56)

MultifamilyCreditProfilebyLoanAttributes

Loansmaturingin2017

Loansmaturingin2018

Loansmaturingin2019

Loansmaturingin2020

Loansmaturingin2021

Othermaturities ($40)

$2

($1)

($2)

$0

($15)

($9)

$1

$5

$0

$4

($3)

$0

$0

$0

($1)

$1

$0

0.01%

0.01%

0.15%

0.31%

0.13%

0.28%

98%

97%

97%

98%

96%

68%

75%

7%

6%

6%

4%

2%

$190.0

$17.9

$15.2

$15.6

$10.4

$4.2

19,251

2,448

2,378

2,029

1,861

1,000

MaturityDates

Lessthanorequalto70%

Greaterthan70%andlessthanorequalto80%

Greaterthan80% $2

($34)

($24)

$0

$3

($7)

$0

$1

$0

0.33%

0.03%

0.05%

93%

99%

95%

2%

44%

54%

$4.8

$111.0

$137.5

1,244

9,877

17,846

OriginationLTVRatio

Lessthanorequalto$750K

Greaterthan$750Kandlessthanorequalto$3M

Greaterthan$3Mandlessthanorequalto$5M

Greaterthan$5Mandlessthanorequalto$25M

Greaterthan$25M ($15)

($60)

$9

$9

$1

$0

($15)

$6

$5

$0

$0

$0

$1

$0

$0

0.03%

0.04%

0.13%

0.20%

0.22%

98%

99%

93%

83%

23%

48%

40%

6%

5%

0%

$122.6

$102.3

$14.1

$13.1

$1.2

2,423

9,414

3,885

8,379

4,866

LoanSizeDistribution

(1)

(2)

(3)

(4)

(5)

(6)

Representsthepercentageofloansforagivencategory(row)comprisedofDUSloans,measuredbyunpaidprincipalbalance.

Multifamilyloansareclassifiedasseriouslydelinquentwhenpaymentis60daysormorepastdue.

Dollaramountofmultifamilycredit-relatedlosses/(gains)fortheapplicableperiodandcategory.Totalcreditlossesforeachperiodmaynottietosumofallcategoriesduetorounding.

Weightedaverageoriginationloan-to-valueratiois67%asofMarch31,2017.

UndertheDelegatedUnderwritingandServicing,orDUS,program,FannieMaeacquiresindividual,newlyoriginatedmortgagesfromspeciallyapprovedDUSlendersusingDUSunderwritingstandardsand/orDUSloandocuments.BecauseDUS

lendersgenerallysharetheriskoflosswithFannieMae,theyareabletooriginate,underwrite,closeandservicemostloanswithoutourpre-review.

Multifamilyloanswithanoriginalunpaidbalanceofupto$3millionnationwideorupto$5millioninhighcostmarkets.

DUS-SmallBalanceLoans

DUS-NonSmallBalanceLoans

Total ($54)

($57)

$3

($3)

($6)

$2

$2

$2

$0

0.05%

0.04%

0.12%

100%

100%

100%

97%

92%

5%

$245.7

$232.1

$13.6

22,335

15,029

7,306

DelegatedUnderwritingandServicing(DUS)Loans

Non-DUS-SmallBalanceLoans

Non-DUS-NonSmallBalanceLoans

Total ($2)

($5)

$2

($1)

($2)

$1

($1)

($1)

($1)

0.13%

0.00%

0.25%

0%

0%

0%

3%

1%

2%

$7.6

$3.6

$4.0

6,632

286

6,346

Non-DelegatedUnderwritingandServicing(Non-DUS)Loans

LenderRisk-Sharing

NoRecoursetotheLender ($32)

($24)

($14)

$10

($1)

$1

0.03%

0.05%

69%

99%

5%

95%

$13.2

$240.1

2,064

26,903

LenderRisk-Sharing

Fixed

Variable ($22)

($34)

$2

($6)

($1)

$1

0.01%

0.06%

97%

97%

19%

81%

$49.3

$204.0

6,791

22,176

InterestRateType

©2017FannieMae.TrademarksofFannieMae. 19

(1)

(3)

(3)

(4)

(5)

(6)

(6)

(2) (3)

AsofMarch31,2017
UPB($B)

%ofMultifamily

GuarantyBookof

Business

%DUSLoans

%Seriously

Delinquent

YTD2017Multifamily

CreditLosses($M)

2016Multifamily

CreditLosses($M)

2015Multifamily

CreditLosses($M)

TotalMultifamilyGuarantyBookofBusiness $253.3 100% 97% 0.05% $0 ($4) ($56)

MultifamilyCreditProfilebyLoanAttributes(cont.)

California

Texas

NewYork

Florida

Washington $1

($3)

$1

($6)

$0

$0

$0

$0

($5)

$0

$0

$0

($1)

$0

$0

0.00%

0.00%

0.01%

0.16%

0.00%

99%

100%

84%

100%

96%

4%

7%

9%

12%

20%

$9.5

$18.1

$23.9

$30.4

$51.3

SelectStates

PrivatelyOwnedwithSubsidy $32.4 13% 96% 0.05% $1 $2 ($4)

TargetedAffordableSegment

DUS:Bank(Direct,OwnedEntity,orSubsidiary)

DUS:Non-BankFinancialInstitution

Non-DUS:Bank(Direct,OwnedEntity,orSubsidiary)

Non-DUS:Non-BankFinancialInstitution

Non-DUS:PublicAgency/NonProfit $0

$0

$0

($12)

($45)

$0

($2)

$0

($5)

$3

$0

($1)

$0

$2

($1)

0.00%

0.00%

0.14%

0.07%

0.01%

0%

0%

0%

100%

97%

0%

0%

1%

58%

40%

$0.1

$0.4

$3.8

$147.0

$102.0

DUS&Non-DUSLenders/Servicers

Representsthepercentageofloansforagivencategory(row)comprisedofDUSloans,measuredbyunpaidprincipalbalance.

Multifamilyloansareclassifiedasseriouslydelinquentwhenpaymentis60daysormorepastdue.

Dollaramountofmultifamilycredit-relatedlosses/(gains)fortheapplicableperiodandcategory.Totalcreditlossesforeachperiodwillnottietosumofallcategoriesduetorounding.

TheMultifamilyAffordableBusinessChannelfocusesonfinancingpropertiesthatareunderanagreementthatprovideslong-termaffordability,suchaspropertieswithrentsubsidiesorincomerestrictions.

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

©2017FannieMae.TrademarksofFannieMae. 20

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

Priorto2007 ($24)

($17)

($20)

$4

($1)

$2

$0

$0

$0

$0

$0

$0

($7)

($3)

($1)

$0

$3

$0

$2

$0

$0

$0

$0

$0

$0

$0

$1

$0

$0

$0

$0

$0

$0

$0

$0

$0

0.09%

0.29%

0.20%

0.08%

0.15%

0.03%

0.16%

0.02%

0.00%

0.00%

0.00%

0.00%

95%

58%

94%

97%

96%

96%

97%

98%

99%

99%

99%

99%

6%

2%

3%

4%

4%

6%

10%

9%

10%

16%

22%

7%

$15.1

$5.7

$8.2

$10.6

$11.1

$15.9

$25.0

$23.0

$25.9

$40.5

$55.0

$17.3

ByAcquisitionYear

Midwest

Northeast

Southeast

Southwest

West ($31)

($11)

($19)

$4

$1

($7)

($7)

$6

$1

$3

$0

$1

$0

($1)

$0

0.00%

0.10%

0.04%

0.02%

0.13%

96%

100%

99%

90%

99%

28%

23%

25%

16%

9%

$69.9

$57.3

$63.9

$39.8

$22.4

Regions

Conventional/Co-op

SeniorsHousing

ManufacturedHousing

StudentHousing ($7)

$0

$7

($56)

($5)

$0

$2

($1)

$0

$0

$0

$0

0.00%

0.00%

0.09%

0.05%

100%

100%

97%

97%

3%

3%

5%

89%

$7.6

$8.7

$12.4

$224.6

AssetClass

(1)

(2)

(3)

(4)

(5)

(2) (3) (3)

(4)

(3)

(1) AsofMarch31,2017

(5)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

SeriousDelinquencyRate

0.09%

0.44%

0.55%

0.34%

0.15%

0.08%

0.08%

1.36%

0.24%

1.20%

0.30%

0.71%

0.18%

0.56%

0.24%

0.21% 0.21%

0.63%

0.50%

0.10% 0.13%

0.59%

0.07%

0.07% 0.06%

0.05% 0.05%

0.05%

0.04% 0.05% 0.05%

0.92%

0.39%

MultifamilyTotalSeriousDelinquencyRate DUS SeriousDelinquencyRate Non-DUSSeriousDelinquencyRate

SeriousDelinquency RatesofMultifamilyBookofBusiness

Multifamilyloansareclassifiedasseriouslydelinquentwhenpaymentis60daysormorepastdue.Seriousdelinquencyraterepresentstheyear-endpercentageofunpaidprincipalbalancethatisseriously

delinquentasofDecember31forthetimeperiodsnoted,withtheexceptionof2017whichisasofMarch31.

UndertheDelegatedUnderwritingandServicing,orDUS,program,FannieMaeacquiresindividual,newlyoriginatedmortgagesfromspeciallyapprovedDUSlendersusingDUSunderwritingstandardsand/or

DUSloandocuments.BecauseDUSlendersgenerallysharetheriskoflosswithFannieMae,theyareabletooriginate,underwrite,closeandservicemostloanswithoutourpre-review.

©2017FannieMae.TrademarksofFannieMae. 21

(1)

(2)

.

(1)

(2)
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

0

20

40

60

UPB($B)

$19

$33

$19

$24 $22

$46

$34

$19

$17

$24

$33

$29 $29

$42

$55

$17

DUS/Non-DUSAcquisitionUnpaidPrincipalBalance($B)

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

0.0%

0.5%

1.0%

1.5%

2.0%

CreditLossRate

0.2%

0.0%

0.1%

0.2%

0.0%

0.1%

0.4%

0.0%

0.3%

0.5%

0.0%

0.3%

0.9%

0.2%

0.7%

1.3%

0.9%

1.1%

0.8%

1.4%

1.0%

0.3%

0.1%

0.3%

0.1%

0.0%

0.1%

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

DUS/Non-DUSCumulativeCreditLossRatesthroughMarch31,2017

DUSCreditLossRate Non-DUSCreditLossRate MultifamilyTotalCreditLossRate

CumulativeCreditLossRatesofMultifamilyGuarantyBookofBusinessbyAcquisitionYear

DUS Non-DUS

*Year-to-datethroughMarch31,2017. AcquisitionYear

Cumulativecreditlossrateisthecumulativecreditlosses(gains)throughMarch31,2017onthemultifamilyloansthatwereacquiredintheapplicableperiod,asapercentageofthetotalacquiredunpaid

principalbalanceofmultifamilyloansintheapplicableperiod.

AcquisitionunpaidprincipalbalancerepresentsthetotalMultifamilyvolumeacquiredthroughpurchaseorsecuritizationtransactionsfortheapplicableperiod.

©2017FannieMae.TrademarksofFannieMae. 22

(1)

(2)

(1)

(2)

*

*