8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 9, 2012

Federal National Mortgage Association

(Exact name of registrant as specified in its charter)

Federally chartered corporation	000-50231	52-0883107
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)

3900 Wisconsin Avenue, NW Washington, DC	20016
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: 202-752-7000

(Former Name or Former Address, if Changed Since Last Report): ______________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

The information in this report, including information in the exhibits submitted herewith, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of Section 18, nor shall it be deemed incorporated by reference into any disclosure document relating to Fannie Mae (formally known as the Federal National Mortgage Association), except to the extent, if any, expressly incorporated by specific reference in that document.

Item 2.02 Results of Operations and Financial Condition

On May 9, 2012, Fannie Mae filed its quarterly report on Form 10-Q for the quarter ended March 31, 2012 and issued a news release reporting its financial results for the periods covered by the Form 10-Q. The news release, a copy of which is furnished as Exhibit 99.1 to this report, is incorporated herein by reference.

Item 7.01 Regulation FD Disclosure

On May 9, 2012, Fannie Mae posted to its Web site a 2012 First-Quarter Credit Supplement presentation consisting primarily of information about Fannie Mae’s guaranty book of business. The presentation, a copy of which is furnished as Exhibit 99.2 to this report, is incorporated herein by reference. Fannie Mae’s Web site address is www.fanniemae.com. Information appearing on the company’s Web site is not incorporated into this report.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits. The exhibit index filed herewith is incorporated herein by reference.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

FEDERAL NATIONAL MORTGAGE ASSOCIATION
By	/s/ Susan R McFarland
	Susan R. McFarland
	Executive Vice President and Chief Financial Officer

Date: May 9, 2012

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EXHIBIT INDEX

The following exhibits are submitted herewith:

Exhibit Number	Description of Exhibit
99.1	News release, dated May 9, 2012
99.2	2012 First-Quarter Credit Supplement presentation, dated May 9, 2012

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EX-99.1

Exhibit 99.1

Resource Center: 1-800-732-6643

Contact: Pete Bakel

202-752-2034

Date: May 9, 2012

Fannie Mae Reports Net Income of $2.7 Billion for First-Quarter 2012

Total Loss Reserves Expected to Have Peaked as of December 31, 2011

Company Maintains Focus on Foreclosure Prevention Solutions and Providing Access to

Financing for New and Refinanced Mortgages

Fannie Mae Performance Snapshot*

• High-quality new book of business now accounts for 56 percent of single-family guaranty book of business.

• Credit-related expenses decreased by nearly two-thirds, and total loss reserves are expected to have peaked as of December 31, 2011.

• Single-family serious delinquency (“SDQ”) rates declined eight consecutive quarters since the first quarter of 2010 and SDQ rates are substantially lower than private market levels.

• Funded the mortgage market with approximately $2.6T in liquidity, providing access to financing for 2.1M households to purchase a home and financing for more than 1.2M units of quality rental housing.

• Enabled more than 1M distressed homeowners to retain their homes or otherwise avoid foreclosure; completed 1.1M loan workouts, including more than 762,000 modifications; and refinanced 7.4M mortgages.

*Fannie Mae data since January 1, 2009, unless otherwise noted.

WASHINGTON, DC – Fannie Mae (FNMA/OTC) today reported net income of $2.7 billion in the first quarter of 2012, compared to a net loss of $6.5 billion in the first quarter of 2011 and a net loss of $2.4 billion in the fourth quarter of 2011. The significant improvement in the company’s financial results in the first quarter of 2012 was due primarily to lower credit-related expenses, resulting from a less significant decline in home prices, a decline in the company’s inventory of single-family real-estate owned (“REO”) properties coupled with improved REO sales prices, and lower single-family serious delinquency rates. Fannie Mae does not require funding from Treasury for the first quarter of 2012. The company’s comprehensive income of $3.1 billion in the first quarter of 2012 is sufficient to pay the first-quarter dividend of $2.8 billion.

The company’s total loss reserves, which reflect its estimate of the probable losses the company has incurred on loans in its guaranty book of business, decreased to $74.6 billion as of March 31, 2012 from $76.9 billion as of December 31, 2011. The company expects its loss reserves to cover future credit losses on the pre-2009 legacy book of business have reached their peak.

“Today’s results exemplify the tremendous progress we have made since 2009,” said Michael J. Williams, president and chief executive officer. “Our financial performance has improved significantly and we successfully limited losses on the legacy book of business through our efforts to help

First-Quarter 2012 Results 1

homeowners avoid foreclosure. Our credit-related expenses have decreased substantially due in part to stabilizing home prices, lower delinquency rates, and selling foreclosed properties at market competitive prices. In tandem, we continue to be the primary source of funding in the mortgage market and our new book of business is growing, profitable, and built on strong lending standards. I’m proud of the people of Fannie Mae who have delivered this significant forward progress and are focused on maintaining this momentum.”

“We expect our financial results for 2012 to be significantly better than 2011,” said Susan McFarland, executive vice president and chief financial officer. “Our credit performance is headed in the right direction with significant improvement since 2009, and we expect that the reserves we have built to cover future credit losses on the pre-2009 legacy book of business have reached their peak. As our serious delinquency rate declines and home prices stabilize, we expect to reduce our reserves, which combined with revenue from our high-quality new book of business, will drive our future results. While external economic factors continue to create headwinds that affect our results, we are pleased with our credit performance and will continue our work to move the housing market forward.”

Fannie Mae’s net worth of $268 million as of March 31, 2012 reflects the company’s total comprehensive income of $3.1 billion, partially offset by its payment to Treasury of $2.8 billion in senior preferred stock dividends. As a result of the company’s positive net worth as of March 31, 2012, the company will not request a draw from Treasury for the quarter under the senior preferred stock purchase agreement. The total liquidation preference of Treasury’s senior preferred stock remains at $117.1 billion, which requires an annualized dividend payment of $11.7 billion. The table below shows the amount of Fannie Mae’s requested draws from Treasury and dividend payments to Treasury since entering into conservatorship on September 6, 2008.

Treasury Draw Requests and Dividend Payments

$ in Billions

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⁽¹⁾  Treasury draw requests do not include the initial $1.0 billion liquidation preference of Fannie Mae’s senior preferred stock, for which Fannie Mae did not receive any cash proceeds.

⁽²⁾  Fannie Mae paid dividends to Treasury of $31 million in the fourth quarter of 2008 and $25 million in the first quarter of 2009.

⁽³⁾  Represents the draw required and requested based on Fannie Mae’s net worth deficit for the quarters presented. Draw requests were funded in the quarter following each quarterly net worth deficit.

⁽⁴⁾  Represents quarterly cash dividends paid during the quarters presented by Fannie Mae to Treasury, based on an annual rate of 10% per year on the aggregate liquidation preference of the senior preferred stock.

⁽⁵⁾  Represents cumulative Treasury draws less senior preferred stock dividend payments to Treasury.

PROVIDING LIQUIDITY AND SUPPORT TO THE MARKET

Fannie Mae has continued to provide liquidity and support to the U.S. mortgage market in a number of important ways:

• The company has served as a stable source of liquidity for purchases of homes and financing of multifamily rental housing, as well as for refinancing existing mortgages. Fannie Mae provided approximately $2.6 trillion in liquidity to the mortgage market from January 1, 2009 through March 31, 2012 through its purchases and guarantees of loans, which enabled borrowers to refinance 7.4 million mortgages and purchase 2.1 million homes, and provided financing for more than 1.2 million units of multifamily housing.

• The company has strengthened its underwriting and eligibility standards to support sustainable homeownership, enabling borrowers to have access to a variety of conforming mortgage products, including long-term, fixed-rate mortgages, such as the prepayable 30-year fixed-rate mortgage that protects homeowners from interest rate swings. As a result, the company’s new single-family book of business has a strong credit risk profile.

• The company helped more than 1,000,000 homeowners retain their homes or otherwise avoid foreclosure from January 1, 2009 through March 31, 2012, which helped to support neighborhoods, home prices and the housing market. Moreover, borrowers’ ability to pay their modified loans has improved in recent periods as the company has enhanced the structure of its modifications. One year after modification, 74 percent of the modifications the company made in the first quarter of 2011 were current or paid off, compared with 65 percent of modifications the company made in the first quarter of 2010.

• The company helped borrowers refinance loans through its Refi Plus™ initiative, which includes loans refinanced under the Administration’s Home Affordable Refinance Program (“HARP”). The Refi Plus initiative provides expanded refinance opportunities for eligible Fannie Mae borrowers. From April 1, 2009, the date the company began accepting delivery of Refi Plus loans, through March 31, 2012, the company has acquired approximately 2,000,000 loans refinanced under its Refi Plus initiative. Refinances delivered to Fannie Mae through Refi Plus in the first quarter of 2012 reduced borrowers’ monthly mortgage payments by an average of $191. Some borrowers’ monthly payments increased as they took advantage of the ability to refinance through Refi Plus to reduce the term of their loan, to switch from an adjustable-rate mortgage to a fixed-rate mortgage, or to switch from an interest-only mortgage to a fully amortizing mortgage.

First-Quarter 2012 Results 3

• The company supports affordability in the multifamily rental market. More than 85 percent of the multifamily units it financed from 2009 through 2011 were affordable to families earning at or below the median income in their area.

• The company remained the largest single issuer of mortgage-related securities in the secondary market in the first quarter of 2012, with an estimated market share of new single-family mortgage-related securities issuances of 51 percent, compared to 54 percent in the fourth quarter of 2011 and 49 percent in the first quarter of 2011. Fannie Mae also remained a constant source of liquidity in the multifamily market. As of December 31, 2011 (the latest date for which information was available), the company owned or guaranteed approximately 21 percent of the outstanding debt on multifamily properties.

• During the first quarter of 2012, Fannie Mae purchased or guaranteed approximately $221 billion in loans, measured by unpaid principal balance. These activities enabled its lender customers to finance approximately 934,000 single-family conventional loans and loans for approximately 117,000 units in multifamily properties during the first quarter of 2012.

CREDIT QUALITY

New Single-Family Book of Business: Since 2009, Fannie Mae has seen the effect of the actions it took, beginning in 2008, to significantly strengthen its underwriting and eligibility standards, and change its pricing to promote sustainable homeownership and stability in the housing market. Fifty-six percent of Fannie Mae’s single-family guaranty book of business as of March 31, 2012 consisted of loans it had purchased or guaranteed since the beginning of 2009. Given their strong credit risk profile and based on their performance so far, the company expects that these loans will be profitable over their lifetime, meaning the company’s fee income on these loans will exceed the company’s credit losses and administrative costs for them. If future macroeconomic conditions turn out to be more adverse than the company’s expectations, these loans could become unprofitable.

Single-family conventional loans acquired by Fannie Mae in the first quarter of 2012 had a weighted average FICO credit score at origination of 763 and an average original loan-to-value ratio of 70 percent.

Fannie Mae’s Expectations Regarding Future Loss Reserves and Credit-Related Expenses: The company’s total loss reserves decreased to $74.6 billion as of March 31, 2012 from $76.9 billion as of December 31, 2011. The company expects the trends of stabilizing home prices and declining single-family serious delinquency rates to continue. As a result, the company expects that its total loss reserves peaked as of December 31, 2011; thus, the company does not expect total loss reserves to increase above $76.9 billion in the foreseeable future. The company expects that its credit-related expenses will continue to be high in 2012 but that, overall, its credit-related expenses will be lower in 2012 than in 2011.

Although the company expects these positive trends to continue, the amount of credit-related expenses the company incurs in future periods could vary significantly from period to period, and may be affected by many different factors, including mortgage market and other macroeconomic factors, loss mitigation activity, legislative or regulatory requirements, changes in borrower behavior, such as an increasing number of underwater borrowers who strategically default on their mortgage loan; and changes in accounting policy. Due to the large size of the company’s guaranty book of business, even

First-Quarter 2012 Results 4

small changes in these factors could have a significant impact on the company’s financial results for a particular period. Moreover, although the company expects that its total loss reserves peaked as of December 31, 2011, it expects that its loss reserves will remain significantly elevated relative to historical levels for an extended period because (1) it expects future defaults on loans in its legacy (pre-2009) book of business and the resulting charge-offs will occur over a period of years and (2) a significant portion of its reserves represents concessions granted to borrowers upon modification of their loans and will remain in the company’s reserves until the loans are fully repaid or default.

Fannie Mae’s single-family serious delinquency rate has declined steadily each quarter since the first quarter of 2010, and was 3.67 percent as of March 31, 2012, compared to 5.47 percent as of March 31, 2010. This decrease is primarily the result of home retention solutions, foreclosure alternatives, and completed foreclosures, as well as the company’s acquisition of loans with a stronger credit profile since the beginning of 2009, as these loans are now 56 percent of the single-family guaranty book of business, resulting in a smaller percentage of the company’s loans becoming seriously delinquent. The company expects serious delinquency rates will continue to be affected in the future by home price changes, changes in other macroeconomic conditions, the length of the foreclosure process, the volume of loan modifications, and the extent to which borrowers with modified loans continue to make timely payments. In addition, due to circumstances in the foreclosure environment, foreclosures are proceeding at a slow pace, which has resulted in loans remaining seriously delinquent in the company’s book of business for a longer time. The company expects the number of its single-family loans that are seriously delinquent to remain well above pre-2008 levels for years. In addition, given the large existing and anticipated supply of single-family homes in the market, the company anticipates that it will take a significant amount of time before its REO inventory is reduced to pre-2008 levels.

STRATEGIES TO REDUCE CREDIT LOSSES ON THE LEGACY BOOK

To reduce the credit losses Fannie Mae ultimately incurs on its legacy book of business, the company has been focusing its efforts on several strategies, including reducing defaults by offering home retention solutions, such as loan modifications. Fannie Mae completed approximately 46,700 loan modifications during the first quarter of 2012, bringing the total number of loan modifications the company has completed since January 1, 2009 to more than 762,000.

As the company works to reduce credit losses, it also seeks to assist struggling borrowers, help stabilize communities, and support the housing market. In dealing with struggling borrowers, Fannie Mae first seeks home retention solutions that enable them to keep their homes before turning to foreclosure alternatives. If the company is unable to provide a viable home retention solution for a struggling borrower, the company seeks to offer a foreclosure alternative and complete it in a timely manner. From January 1, 2009 through March 31, 2012, the company completed approximately 217,000 preforeclosure sales (also known as short sales) and deeds-in-lieu of foreclosure. When there is no viable home retention solution or foreclosure alternative that can be applied, the company seeks to move to foreclosure expeditiously. The goal of these efforts is to help minimize delinquencies that can adversely impact local home values and destabilize communities, as well as lower costs to Fannie Mae.

HOME RETENTION SOLUTIONS AND FORECLOSURE ALTERNATIVES

Loan Workouts: During the first quarter of 2012, Fannie Mae completed more than 77,000 single-family loan workouts, including more than 55,000 home-retention solutions (modifications, repayment

First-Quarter 2012 Results 5

plans, and forbearances). Details of the company’s home-retention solutions and foreclosure alternatives include:

• Loan modifications, which consist of permanent modifications under HAMP and Fannie Mae’s own modification options, were 46,671 in the first quarter of 2012, compared to 51,936 in the fourth quarter of 2011 and 51,043 in the first quarter of 2011. The volume of modifications completed in the first quarter of 2012 decreased compared to the first quarter of 2011, primarily driven by a decline in the number of seriously delinquent loans in 2012.

• Repayment plans/forbearances were 8,864 in the first quarter of 2012, compared to 8,517 in the fourth quarter of 2011 and 9,916 in the first quarter of 2011.

• Short sales and deeds-in-lieu of foreclosure were 22,213 in the first quarter of 2012, compared to 22,231 in the fourth quarter of 2011 and 17,120 in the first quarter of 2011.

Homeowner Initiatives: Fannie Mae continued to maintain programs and invest in initiatives designed to help keep people in homes, assist prospective homeowners, and support the mortgage and housing markets overall. As of March 31, 2012, Fannie Mae had established 12 Mortgage Help Centers across the nation to accelerate the response time for struggling borrowers with loans owned by Fannie Mae; these centers helped borrowers obtain nearly 9,200 home retention plans. The company’s Mortgage Help Centers are complemented in their efforts by partnerships with 17 local non-profit organizations in 16 cities, collectively known as its Mortgage Help Network. The Mortgage Help Network represents a contractual relationship with select not-for-profit counseling agencies located in the company’s top delinquent mortgage markets to provide borrowers with loans owned by Fannie Mae foreclosure prevention counseling, documentation assistance, and assistance with pending loan workout solutions. The company also uses direct mail, phone calls, and some advertising to encourage homeowners to visit KnowYourOptions.com to pursue home retention solutions and foreclosure alternatives.

Refinancing Initiatives: Through the company’s Refi Plus^TM initiative, which provides expanded refinance opportunities for eligible Fannie Mae borrowers and includes the Administration’s HARP loans, the company acquired approximately 239,000 loans in the first quarter of 2012. Some borrower’s monthly payments increased as they took advantage of the ability to refinance through Refi Plus to reduce the term of their loan, to switch from an adjustable-rate mortgage to a fixed rate mortgage, or to switch from an interest-only mortgage to a fully amortizing mortgage. Even taking these refinancings into account, refinances delivered to Fannie Mae through Refi Plus in the first quarter of 2012 reduced borrowers’ monthly mortgage payments by an average of $191.

FORECLOSURES AND REO

Fannie Mae acquired 47,700 single-family REO properties, primarily through foreclosure, in the first quarter of 2012, compared to 47,256 in the fourth quarter of 2011 and 53,549 in the first quarter of 2011. Fannie Mae disposed of 52,071 single-family REO in the first quarter of 2012, compared to 51,344 in the fourth quarter of 2011 and 62,814 in the first quarter of 2011. As of March 31, 2012, the company’s inventory of single-family REO properties was 114,157, compared to 118,528 as of December 31, 2011, and 153,224 as of March 31, 2011. The carrying value of the company’s single-family REO was $9.7 billion as of March 31, 2012, compared to $9.7 billion as of December 31, 2011, and $14.1 billion as of March 31, 2011.

The company’s single-family foreclosure rate was 1.07 percent in the first quarter of 2012, compared to 1.13 percent in 2011. This reflects the annualized number of single-family properties acquired

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through foreclosure or deeds-in-lieu of foreclosure as a percentage of the total number of loans in Fannie Mae’s single-family guaranty book of business.

SUMMARY OF FIRST-QUARTER 2012 RESULTS

Fannie Mae reported net income of $2.7 billion for the first quarter of 2012, compared to a net loss of $2.4 billion in the fourth quarter of 2011 and $6.5 billion in the first quarter of 2011. As a result of the company’s positive net worth as of March 31, 2012, which takes into account dividends paid on senior preferred stock held by Treasury, the company will not request a draw for the quarter from Treasury under the senior preferred stock purchase agreement.

(Dollars in millions)	1Q12			4Q11			Variance			1Q12			1Q11			Variance
Net interest income	$	5,197		$	4,163		$	1,034		$	5,197		$	4,960		$	237
Fee and other income		375			370			5			375			237			138
Net revenues		5,572			4,533			1,039			5,572			5,197			375
Investment gains, net		116			187			(71	)		116			75			41
Net other-than-temporary impairments		(64	)		54			(118	)		(64	)		(44	)		(20	)
Fair value gains (losses), net		283			(751	)		1,034			283			289			(6	)
Administrative expenses		(564	)		(605	)		41			(564	)		(605	)		41
Credit-related expenses
Provision for credit losses		(2,000	)		(5,476	)		3,476			(2,000	)		(10,554	)		8,554
Foreclosed property expense		(339	)		(37	)		(302	)		(339	)		(488	)		149
Total credit-related expenses		(2,339	)		(5,513	)		3,174			(2,339	)		(11,042	)		8,703
Other non-interest expenses(1)		(286	)		(311	)		25			(286	)		(339	)		53
Net losses and expenses		(2,854	)		(6,939	)		4,085			(2,854	)		(11,666	)		8,812
Income (loss) before federal income taxes		2,718			(2,406	)		5,124			2,718			(6,469	)		9,187
Provision for federal income taxes		—			(1	)		1			—			(2	)		2
Net income (loss)		2,718			(2,407	)		5,125			2,718			(6,471	)		9,189
Less: Net loss attributable to the noncontrolling interest		1			1			—			1			—			1
Net income (loss) attributable to Fannie Mae	$	2,719		$	(2,406	)	$	5,125		$	2,719		$	(6,471	)	$	9,190
Total comprehensive income (loss) attributable to Fannie Mae	$	3,081		$	(1,945	)	$	5,026		$	3,081		$	(6,290	)	$	9,371
Preferred stock dividends	$	(2,817	)	$	(2,622	)	$	(195	)	$	(2,817	)	$	(2,216	)	$	(601	)
(1)        Consists of debt extinguishment (losses) gains, net and other expenses.

Net revenues were $5.6 billion in the first quarter of 2012, up 23 percent from $4.5 billion in the fourth quarter of 2011 and up seven percent from $5.2 billion in the first quarter of 2011. Net interest income was $5.2 billion, up 25 percent from $4.2 billion in the fourth quarter of 2011 and up five percent from $5.0 billion in the first quarter of 2011. The increase in net interest income compared to the fourth quarter of 2011 was due primarily to an out-of-period adjustment recorded in the fourth quarter of 2011 that reduced net interest income $1.2 billion.

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Credit-related expenses, which consist of the provision for credit losses and foreclosed property expense, were $2.3 billion in the first quarter of 2012, down from $5.5 billion in the fourth quarter of 2011 and $11.0 billion in the first quarter of 2011. Lower credit-related expenses were due primarily to a less significant decline in home prices, a decline in our inventory of single-family REO properties coupled with improved REO sales prices, and lower single-family serious delinquency rates.

Credit losses, which the company defines as net charge-offs plus foreclosed property expense, excluding the effect of certain fair-value losses, were $5.1 billion in the first quarter of 2012, compared to $4.7 billion in the fourth quarter of 2011 and $5.7 billion in the first quarter of 2011.

Total loss reserves, which reflect an estimate of the probable losses the company has incurred in its guaranty book of business, including concessions it granted borrowers upon modification of their loans, were $74.6 billion as of March 31, 2012, compared to $76.9 billion as of December 31, 2011 and $72.1 billion as of March 31, 2011. The total loss reserve coverage to total nonperforming loans was 30 percent as of March 31, 2012, compared to 31 percent as of December 31, 2011 and 35 percent as of March 31, 2011. The company believes that its loss reserves peaked as of December 31, 2011.

Net fair value gains were $283 million in the first quarter of 2012, compared to net fair value losses of $751 million in the fourth quarter of 2011 and net fair value gains of $289 million in the first quarter of 2011. The increase in the first quarter of 2012 from the fourth quarter of 2011 was driven primarily by improvement in the fair value of our risk management derivatives as interest rates rose in the first quarter of 2012, compared to a decline in interest rates in the fourth quarter of 2011. The estimated fair value of our trading securities and derivatives may fluctuate substantially from period-to-period because of changes in interest rates, credit spreads, and interest rate volatility, as well as activity related to these financial instruments.

NET WORTH AND U.S. TREASURY FUNDING

As a result of Fannie Mae’s positive net worth as of March 31, 2012, the company does not require funds under the senior preferred stock purchase agreement between Fannie Mae and Treasury.

Fannie Mae’s first-quarter 2012 dividend of $2.8 billion on its senior preferred stock held by Treasury was declared by FHFA and paid by the company on March 30, 2012. The aggregate liquidation preference of the senior preferred stock remains at $117.1 billion as of March 31, 2012, which requires an annualized dividend payment of $11.7 billion. The amount of this dividend payment exceeds the company’s reported annual net income for every year since its inception.

As of March 31, 2012, Fannie Mae has paid an aggregate of $22.6 billion to Treasury in dividends on the senior preferred stock.

BUSINESS SEGMENT RESULTS

The business groups running Fannie Mae’s three reporting segments – its Single-Family business, its Multifamily business, and its Capital Markets group – engage in complementary business activities in pursuing the company’s mission of providing liquidity, stability, and affordability to the U.S. housing market. The company’s Single-Family and Multifamily businesses work with Fannie Mae’s lender customers, who deliver mortgage loans that the company purchases and securitizes into Fannie Mae MBS. The Capital Markets group manages the company’s investment activity in mortgage-related assets and other interest-earning non-mortgage investments, funding investments in mortgage-related assets primarily with proceeds received from the issuance of Fannie Mae debt securities in the

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domestic and international capital markets. The Capital Markets group also provides liquidity to the mortgage market through short-term financing and other activities.

Single-Family guaranty book of business was $2.86 trillion as of March 31, 2012, compared to $2.84 trillion as of December 31, 2011 and $2.90 trillion as of March 31, 2011. Single-Family guaranty fee income was $1.9 billion for the first quarter of 2012 and for the fourth and first quarters of 2011. The Single-Family business lost $1.3 billion in the first quarter of 2012, compared to a loss of $4.5 billion in the fourth quarter of 2011 and a loss of $10.7 billion in the first quarter of 2011, due primarily to credit-related expenses of $2.4 billion, the substantial majority of which were attributable to loans purchased or guaranteed prior to 2009.

Multifamily guaranty book of business was $196.9 billion as of March 31, 2012, compared to $195.2 billion as of December 31, 2011 and $190.6 billion as of March 31, 2011. Multifamily recorded credit-related income of $46 million in the first quarter of 2012, compared to credit-related expenses of $116 million in the fourth quarter of 2011 and credit-related income of $64 million in the first quarter of 2011. Multifamily earned $279 million in the first quarter of 2012, compared to $177 million in the fourth quarter of 2011 and $247 million in the first quarter of 2011.

Capital Markets’ net interest income for the first quarter of 2012 was $3.5 billion, compared to $2.4 billion for the fourth quarter of 2011 and $3.7 billion for the first quarter of 2011. Fair value gains were $170 million, compared to fair value losses of $637 million in the fourth quarter of 2011 and gains of $218 million in the first quarter of 2011. The Capital Markets mortgage investment portfolio balance decreased to $691.7 billion as of March 31, 2012, compared to $708.4 billion as of December 31, 2011, resulting from purchases of $58.9 billion, liquidations of $34.4 billion, and sales of $41.2 billion during the quarter. The Capital Markets group earned $4.3 billion in the first quarter of 2012, compared to $2.6 billion in the fourth quarter of 2011 and $4.3 billion in the first quarter of 2011.

The company provides further discussion of its financial results and condition, credit performance, fair value balance sheets, and other matters in its quarterly report on Form 10-Q for the quarter ended March 31, 2012, which was filed today with the Securities and Exchange Commission. Further information about the company’s credit performance, the characteristics of its guaranty book of business, the drivers of its credit losses, its foreclosure-prevention efforts, and other measures is contained in the “2012 First-Quarter Credit Supplement” on Fannie Mae’s Web site, www.fanniemae.com.

# # #

In this release, the company has presented a number of estimates, forecasts, expectations, and other forward-looking statements regarding the company’s future loss reserves, future financial results; the profitability of its loans; Fannie Mae’s future credit performance, serious delinquency rates, number of delinquent loans, REO inventory, credit losses, credit-related expenses, defaults, and charge-offs; its draws from and dividends to be paid to Treasury; the growth, performance, profitability and caliber of loans it is acquiring; the trend of stabilizing home prices; the impact of the company’s actions on its future losses, delinquencies, defaults, loss severities, costs and credit losses; future volatility in the fair value of the company’s trading securities and derivatives, and the future performance of modifications and factors that could influence that performance;. These estimates, forecasts, expectations, and statements are forward-looking statements and are based on the company’s current assumptions regarding numerous factors, including assumptions about future home prices and the future performance of its loans. Actual results, and future projections, could be materially different from what is set forth in the forward-looking statements as a result of home price changes, interest rate changes, unemployment, other macroeconomic variables, government policy matters, credit availability, social behaviors, including increases in the number of underwater borrowers who strategically default on their mortgage loan, the volume of loans it modifies, the nature, volume and effectiveness of its loss mitigation strategies and activities, management of its real estate owned inventory and pursuit of contractual remedies, changes in the fair value of its assets and liabilities, impairments of its assets, the adequacy of its loss reserves, future legislative or regulatory requirements that have a significant impact on the company’s business such as a requirement that the company implement a principal forgiveness program, future updates to the company’s models relating to loss reserves, including the assumptions used by these models; changes in generally accepted accounting principles, changes to the company’ accounting policies, failures by its mortgage seller-servicers to fulfill their repurchase obligations to it, its ability to maintain a positive net worth, effects from activities the company takes to support the mortgage market and help homeowners, the conservatorship and its effect on the company’s business, the investment by Treasury and its effect on the company’s business, changes in the structure and regulation of the financial services industry, the company’s ability to access the debt markets, disruptions in the

First-Quarter 2012 Results 9

housing, credit, and stock markets, government investigations and litigation, the performance of the company’s servicers, conditions in the foreclosure environment, and many other factors. Changes in the company’s underlying assumptions and actual outcomes, which could be affected by the economic environment, government policy, and many other factors, including those discussed in the “Risk Factors” section of and elsewhere in the company’s quarterly report on Form 10-Q for the quarter ended March 31, 2012 and its annual report on Form 10-K for the year ended December 31, 2011, and elsewhere in this release.

Fannie Mae provides Web site addresses in its news releases solely for readers’ information. Other content or information appearing on these Web sites is not part of this release.

Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America’s secondary mortgage market to enhance the liquidity of the mortgage market by purchasing or guaranteeing mortgage loans originated by mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America.

First-Quarter 2012 Results 10

ANNEX I

FANNIE MAE

(In conservatorship)

Condensed Consolidated Balance Sheets—(Unaudited)

(Dollars in millions, except share amounts)

	As of
	March 31,			December 31,
	2012			2011
ASSETS
Cash and cash equivalents	$	22,049		$	17,539
Restricted cash (includes $51,347 and $45,900, respectively, related to consolidated trusts)		55,921			50,797
Federal funds sold and securities purchased under agreements to resell or similar arrangements		15,000			46,000
Investments in securities:
Trading, at fair value		75,806			74,198
Available-for-sale, at fair value (includes $1,091 and $1,191, respectively, related to  consolidated trusts)		73,779			77,582
Total investments in securities		149,585			151,780
Mortgage loans:
Loans held for sale, at lower of cost or fair value (includes $56 and $66, respectively, related to consolidated trusts)		282			311
Loans held for investment, at amortized cost:
Of Fannie Mae		377,031			380,134
Of consolidated trusts (includes $4,292 and $3,611, respectively, at fair value and loans pledged as collateral that may be sold or repledged of $749 and $798, respectively)		2,616,521			2,590,332
Total loans held for investment		2,993,552			2,970,466
Allowance for loan losses		(70,109	)		(72,156	)
Total loans held for investment, net of allowance		2,923,443			2,898,310
Total mortgage loans		2,923,725			2,898,621
Accrued interest receivable, net (includes $8,416 and $8,466, respectively, related to consolidated trusts)		10,018			10,000
Acquired property, net		10,619			11,373
Other assets (includes cash pledged as collateral of $1,159 and $1,109, respectively)		23,023			25,374
Total assets	$	3,209,940		$	3,211,484
LIABILITIES AND EQUITY (DEFICIT)
Liabilities:
Accrued interest payable (includes $9,227 and $9,302, respectively, related to consolidated trusts)	$	12,442		$	12,648
Debt:
Of Fannie Mae (includes $825 and $838, respectively, at fair value)		685,974			732,444
Of consolidated trusts (includes $4,279 and $3,939, respectively, at fair value)		2,498,233			2,457,428
Other liabilities (includes $581 and $629, respectively, related to consolidated trusts)		13,023			13,535
Total liabilities		3,209,672			3,216,055
Commitments and contingencies (Note 13)		—			—
Fannie Mae stockholders' equity (deficit):
Senior preferred stock, 1,000,000 shares issued and outstanding		117,149			112,578
Preferred stock, 700,000,000 shares are authorized—555,374,922 shares issued and outstanding		19,130			19,130
Common stock, no par value, no maximum authorization—1,308,762,703 shares issued, and; 1,158,069,699 and 1,157,767,400 shares outstanding, respectively		687			687
Accumulated deficit		(128,482	)		(128,381	)
Accumulated other comprehensive loss		(873	)		(1,235	)
Treasury stock, at cost, 150,693,004 and 150,995,303 shares, respectively		(7,401	)		(7,403	)
Total Fannie Mae stockholders’ equity (deficit)		210			(4,624	)
Noncontrolling interest		58			53
Total equity (deficit)		268			(4,571	)
Total liabilities and equity (deficit)	$	3,209,940		$	3,211,484

See Notes to Condensed Consolidated Financial Statements

First-Quarter 2012 Results 11

FANNIE MAE

(In conservatorship)

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)—(Unaudited)

(Dollars and shares in millions, except per share amounts)

	For the Three Months Ended March 31,
	2012			2011
Interest income:
Trading securities	$	449		$	284
Available-for-sale securities		727			1,213
Mortgage loans (includes $29,001 and $31,865, respectively, related to consolidated trusts)		32,570			35,590
Other		38			28
Total interest income		33,784			37,115
Interest expense:
Short-term debt (includes $1 and $3, respectively, related to consolidated trusts)		42			107
Long-term debt (includes $25,360 and $27,852, respectively, related to consolidated trusts)		28,545			32,048
Total interest expense		28,587			32,155
Net interest income		5,197			4,960
Provision for credit losses		(2,000	)		(10,554	)
Net interest income (loss) after provision for credit losses		3,197			(5,594	)
Investment gains, net		116			75
Other-than-temporary impairments		(80	)		(57	)
Noncredit portion of other-than-temporary impairments recognized in other comprehensive income		16			13
Net other-than-temporary impairments		(64	)		(44	)
Fair value gains, net		283			289
Debt extinguishment (losses) gains, net		(34	)		13
Fee and other income		375			237
Non-interest income		676			570
Administrative expenses:
Salaries and employee benefits		306			320
Professional services		168			189
Occupancy expense		43			42
Other administrative expenses		47			54
Total administrative expenses		564			605
Foreclosed property expense		339			488
Other expenses		252			352
Total expenses		1,155			1,445
Income (loss) before federal income taxes		2,718			(6,469	)
Provision for federal income taxes		—			2
Net income (loss)		2,718			(6,471	)
Other comprehensive income:
Changes in unrealized losses on available-for-sale securities, net of reclassification adjustments and taxes		355			179
Other		7			2
Total other comprehensive income		362			181
Total comprehensive income (loss)		3,080			(6,290	)
Less: Comprehensive loss attributable to the noncontrolling interest		1			—
Total comprehensive income (loss) attributable to Fannie Mae	$	3,081		$	(6,290	)
Net income (loss)	$	2,718		$	(6,471	)
Less: Net loss attributable to the noncontrolling interest		1			—
Net income (loss) attributable to Fannie Mae		2,719			(6,471	)
Preferred stock dividends		(2,817	)		(2,216	)
Net loss attributable to common stockholders	$	(98	)	$	(8,687	)
Loss per share—Basic and Diluted	$	(0.02	)	$	(1.52	)
Weighted-average common shares outstanding—Basic and Diluted		5,761			5,698

See Notes to Condensed Consolidated Financial Statements

First-Quarter 2012 Results 12

FANNIE MAE

(In conservatorship)

Condensed Consolidated Statements of Cash Flows—(Unaudited)

(Dollars in millions)

	For the Three Months Ended March 31,
	2012			2011
Net cash (used in) provided by operating activities	$	(114	)	$	2,566
Cash flows provided by investing activities:
Purchases of trading securities held for investment		(226	)		(185	)
Proceeds from maturities and paydowns of trading securities held for investment		756			522
Proceeds from sales of trading securities held for investment		413			409
Purchases of available-for-sale securities		(9	)		(44	)
Proceeds from maturities and paydowns of available-for-sale securities		2,929			3,851
Proceeds from sales of available-for-sale securities		401			498
Purchases of loans held for investment		(38,276	)		(15,745	)
Proceeds from repayments of loans held for investment of Fannie Mae		6,856			5,381
Proceeds from repayments of loans held for investment of consolidated trusts		174,954			121,533
Net change in restricted cash		(5,124	)		26,948
Advances to lenders		(26,131	)		(15,646	)
Proceeds from disposition of acquired property and short sales		10,195			10,979
Net change in federal funds sold and securities purchased under agreements to resell or similar agreements		31,000			(14,499	)
Other, net		(208	)		(163	)
Net cash provided by investing activities		157,530			123,839
Cash flows used in financing activities:
Proceeds from issuance of debt of Fannie Mae		167,848			163,776
Payments to redeem debt of Fannie Mae		(214,701	)		(183,073	)
Proceeds from issuance of debt of consolidated trusts		80,933			72,567
Payments to redeem debt of consolidated trusts		(188,730	)		(177,551	)
Payments of cash dividends on senior preferred stock to Treasury		(2,819	)		(2,216	)
Proceeds from senior preferred stock purchase agreement with Treasury		4,571			2,600
Net change in federal funds purchased and securities sold under agreements to repurchase		—			26
Other, net		(8	)		—
Net cash used in financing activities		(152,906	)		(123,871	)
Net increase in cash and cash equivalents		4,510			2,534
Cash and cash equivalents at beginning of period		17,539			17,297
Cash and cash equivalents at end of period	$	22,049		$	19,831
Cash paid during the period for interest	$	30,590		$	32,689

See Notes to Condensed Consolidated Financial Statements

First-Quarter 2012 Results 13

EX-99.2

Exhibit 99.2

Fannie Mae

2012 First-Quarter Credit Supplement

May 9, 2012

This presentation includes information about Fannie Mae, including information contained in Fannie Mae’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012, the “2012 Q1 Form 10-Q.” Some of the terms used in these materials are defined and discussed more fully in the 2012 Q1 Form 10-Q and in Fannie Mae’s Form 10-K for the year ended December 31 2011, the “2011 Form 10-K.” These materials should be reviewed together with the 2012 Q1 Form 10-Q and the 2011 Form 10-K, copies of which are available on the “SEC Filings” page in the “Investor Relations” section of Fannie Mae’s Web site at www.fanniemae.com. Some of the information in this presentation is based upon information that we received from third-party sources such as sellers and servicers of mortgage loans. Although we generally consider this information reliable, we do not independently verify all reported information.

This presentation includes forward-looking statements relating to future home price changes. These statements are based on our opinions, analyses, estimates, forecasts and other views on a variety of economic and other information, and changes in the assumptions and other information underlying these views could produce materially different results. The impact of future home price changes on our business, results or financial condition will depend on many other factors.

Due to rounding, amounts reported in this presentation may not add to totals indicated (or 100%). A zero indicates less than one half of one percent. A dash indicates a null value.

1

Table of Contents

Slide

Home Price Growth/Decline Rates in the U.S. 3 Home Price Change Peak-to-Current as of 2012 Q1 4 Fannie Mae Acquisition Profile by Key Product Features 5 Fannie Mae Credit Profile by Key Product Features 6 Fannie Mae Credit Profile by Origination Year and Key Product Features 7 Fannie Mae Credit Profile by State 8 Fannie Mae Alt-A Credit Profile by Key Product Features 9 Fannie Mae Single-Family Serious Delinquency Rates by States and Region 10 Fannie Mae Single-Family Completed Workouts by Type 11 Home Affordable Modification Program (HAMP) 12 Fannie Mae Single-Family Loan Modifications by Monthly Payment Change and Type 13

Performance of Fannie Mae Modified Loans 14 Fannie Mae Single-Family Cumulative Default Rates 15 Fannie Mae Single-Family Real Estate Owned (REO) in Selected States 16 Fannie Mae Multifamily Credit Profile by Loan Attributes 17 Fannie Mae Multifamily Credit Profile by Acquisition Year 18 Fannie Mae Multifamily Credit Profile 19 Fannie Mae Multifamily Q1 2012 Credit Losses by State 20

2

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

Fannie Mae Home Price Index

15% 10% 5% 0% -5% -10%

11.3%

10.6%

7.5% 7.7% 7.0%

6.3%

2.8%

-0.8%

-3.3% -3.6% -4.7% -4.3%

-9.0%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012*

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% -3.7% -4.0%

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

*Year-to-date as of Q1 2012. Estimate based on purchase transactions in Fannie-Freddie acquisition and public deed data available through the end of March 2012. Including subsequent data may lead to materially different results.

We expect peak-to-trough declines in home prices to be in the 24% to 30% range (comparable to a decline in the 34% to 41% range using the S&P/Case-Shiller index method).

Note: Our estimates differ from the S&P/Case-Shiller index in two principal ways: (1) our estimates weight expectations by number of properties, whereas the S&P/Case-Shiller index weights expectations based on property value, causing home price changes on higher priced homes to have a greater effect on the overall result; and (2) the S&P/Case-Shiller index includes sales of foreclosed homes while our estimates attempt to exclude foreclosed home sales, because we believe that differing maintenance practices and the forced nature of the sales make foreclosed home prices less representative of market values. We believe, however, that the impact of sales of foreclosed homes is indirectly reflected in our estimates as a result of their impact on the pricing of non-distressed sales. We estimate S&P/Case-Shiller comparison numbers by adjusting our internal home price estimates to compensate for the differences between our method and the S&P/Case-Shiller Index method. In addition to these differences, our estimates are based on our own internally available data combined with publicly available data, and are therefore based on data collected nationwide, whereas the S&P/Case-Shiller index is based on publicly available data, which may be limited in certain geographic areas of the country. Our comparative calculations to the S&P/Case-Shiller index provided above are not adjusted to compensate for this data pool difference.

3

Home Price Change Peak-to-Current as of 2012 Q1*

United States -23.9%

AK -4.7%

0.2%

Mountain -34.4%

8.4%

West North Central -13.3%

5.0%

East North Central -21.7%

12.0%

New England -21.4%

5.8%

Pacific -41.9%

25.0%

HI -23.6%

0.8%

State Growth Rate

Below -30% -30% to -15% -15% to -5% -5% to 0% 0% and above

West South Central -4.7%

7.1%

East South Central -10.3%

3.4%

South Atlantic -31.6%

20.2%

Middle Atlantic -14.6%

12.7%

WA -28.6%

3.5%

OR -30.4%

1.6%

CA -47.6%

18.9%

NV -61.7%

1.0%

ID -33.7%

0.5%

MT -11.9%

0.3%

WY -9.3%

0.2%

UT -25.5%

1.0%

AZ -51.3%

2.4%

NM -18.1%

0.6%

CO -12.8%

2.5%

ND 0.0%

0.1%

SD -2.9%

0.2%

NE -8.2%

0.4%

KS -7.0%

0.5%

OK -4.4%

0.6%

TX -5.0%

5.2%

MN -25.8%

1.8%

IA -4.2%

0.6%

MO -15.0%

1.4%

AR -8.1%

0.5%

LA -4.0%

0.9%

WI -15.8%

1.8%

IL -29.0%

4.3%

MI -31.7%

2.5%

IN -8.8%

1.2%

OH -16.1%

2.3%

KY -5.6%

0.6%

MS AL -10.0% -11.2%

0.4% 1.0%

TN -12.7%

1.3%

NH -24.4%

0.5%

VT -11.3%

0.2%

ME

14.2%

0.3%

MA -22.3%

3.1%

RI -34.5%

0.4%

CT 0 -23.3%

1.4%

NY -12.5%

5.6%

PA -10.1%

3.0%

WV -2.3%

0.2%

VA -21.7%

3.6%

NC -14.0%

2.5%

2.

SC -15.0%

1.2%

GA -30.6%

2.8%

FL -51.2%

6.2%

NJ -28.3%

4.0%

DE -21.5%

0.4%

DC -6.1%

0.4%

MD -31.0%

2.9%

State Growth Rate

UPB %

Top %: State/Region Home Price Decline Rate percentage from applicable peak in that state/region through March 31, 2012.

Bottom %: Percent of Fannie Mae single-family conventional guaranty book of business by unpaid principal balance as of March 31, 2012.

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

*Source: Fannie Mae. Estimates based on purchase transactions in Fannie-Freddie acquisition and public deed data available through the end of March 2012. Including subsequent data may lead to materially different results.

4

Fannie Mae Acquisition Profile by Key Product Features

Credit Characteristics of Single-Family Business Volume (1)

Acquisition Year Q1 2012 2011 2010 2009 2008 2007 2006 2005 2004

Unpaid Principal Balance (billions) $ 200.1 $ 562.3 $ 595.0 $ 684.7 $ 557.2 $ 643.8 $ 515.8 $ 524.2 $ 568.8

Weighted Average Origination Note Rate 3.96% 4.35% 4.64% 4.93% 6.00% 6.51% 6.45% 5.73% 5.63%

Origination Loan-to-Value Ratio

<= 60% 28.9% 29.1% 30.3% 32.6% 22.7% 16.7% 18.6% 21.4% 23.1%

>60% and <= 70% 15.6% 15.5% 15.9% 17.0% 16.1% 13.5% 15.1% 16.3% 16.2%

>70% and <= 80% 35.4% 37.3% 38.5% 39.9% 39.5% 44.7% 49.6% 46.2% 43.1%

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

>90% and <= 100% (2) 7.4% 6.8% 5.2% 3.3% 10.0% 15.8% 9.7% 8.5% 9.3%

> 100% (2) 3.7% 2.3% 1.6% 0.4% 0.1% 0.1% 0.2% 0.2% 0.2%

Weighted Average Origination Loan-to-Value Ratio 70.0% 69.3% 68.4% 66.8% 72.0% 75.5% 73.4% 72.0% 71.4%

Weighted Average Origination Loan-to-Value Ratio Excluding HARP (3) 66.9% 67.0% 66.0% 65.8%

FICO Credit Scores (4)

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

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

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

>=700 and < 740 15.1% 16.2% 16.1% 17.2% 21.7% 22.6% 23.0% 23.2% 23.9%

>=740 76.0% 74.5% 75.1% 74.4% 55.8% 40.1% 39.7% 41.5% 39.2%

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

Weighted Average FICO Credit Score (4) 763 762 762 761 738 716 716 719 715

Product Distribution

Fixed-rate 95.7% 93.5% 93.7% 96.6% 91.7% 90.1% 83.4% 78.7% 78.8%

Adjustable-rate 4.3% 6.5% 6.3% 3.4% 8.3% 9.9% 16.6% 21.3% 21.2%

Alt-A (5) 0.6% 1.2% 0.9% 0.2% 3.1% 16.7% 21.8% 16.1% 11.9%

Subprime ? ? ? ? 0.3% 0.7% 0.7% 0.0% ?

Interest Only 0.4% 0.7% 1.3% 1.0% 5.6% 15.2% 15.2% 10.1% 5.0%

Negative Amortizing ? ? ? ? 0.0% 0.3% 3.1% 3.2% 1.9%

Refinance 82.6% 76.5% 77.4% 79.9% 58.6% 50.4% 48.3% 53.1% 57.3%

Total Refi Plus (3) 22.5% 24.3% 23.4% 10.6% ? ? ? ? ?

HARP (3) 10.2% 8.5% 9.0% 3.8% ? ? ? ? ?

HARP Weighted Average Origination Loan-to-Value Ratio (3) 97.3% 94.1% 92.1% 90.7% ? ? ? ? ?

Investor 6.6% 6.5% 4.6% 2.5% 5.6% 6.5% 7.0% 6.4% 5.4%

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

(1) Percentage calculated based on unpaid principal balance of loans at time of acquisition. Single-family business volume refers to both single-family mortgage loans we purchased for our mortgage portfolio and single-family mortgage loans we guaranty into Fannie Mae MBS. Beginning with the third quarter of 2011, we prospectively report loans underlying long-term standby commitments in the period in which the commitment was established, rather than at the time of actual delivery.

(2) The increase for 2010, 2011, and 2012 is the result of our Refi PlusTM initiative, which involves the refinance of existing Fannie Mae loans that can have loan-to-value ratios in excess of 100%.

(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 in 2009, 2010, 2011, and 2012 consist of the refinance of existing Alt-A loans under our Refi Plus initiative.

5

Fannie Mae Credit Profile by Key Product Features

Credit Characteristics of Single-Family Conventional Guaranty Book of Business

Categories Not Mutually Exclusive (1)

Loans with

Loans with

Negative Loans with Loans with FICO < 620 and Sub-total of

Interest Only Origination Subprime Overall

As of March 31, 2012 Amortizing FICO FICO 620 and Origination Alt-A Loans Key Product

Loans LTV Ratio Loans Book

Loans < 620(3) < 660(3) LTV Ratio > Features(1)

> 90% 90%(3)

Unpaid Principal Balance (billions) (2) $8.7 $125.2 $85.2 $180.7 $286.5 $18.7 $175.9 $5.6 $710.6 $2,777.3

Share of Single-Family Conventional Guaranty Book 0.3% 4.5% 3.1% 6.5% 10.3% 0.7% 6.3% 0.2% 25.6% 100.0%

Average Unpaid Principal Balance (2) $109,790 $240,870 $120,034 $132,760 $156,920 $118,628 $157,756 $146,702 $151,102 $156,697

Serious Delinquency Rate 7.18% 14.70% 12.57% 9.68% 7.23% 16.83% 12.03% 21.67% 8.99% 3.67%

Origination Years 2005-2008 55.1% 81.9% 59.4% 54.9% 40.9% 63.5% 70.5% 85.3% 53.9% 28.3%

Weighted Average Origination Loan-to-Value Ratio 70.6% 74.7% 76.8% 77.1% 97.8% 98.4% 73.5% 77.0% 82.0% 71.5%

Origination Loan-to-Value Ratio > 90% 0.3% 8.8% 21.9% 20.2% 100.0% 100.0% 6.9% 6.6% 40.3% 10.3%

Weighted Average Mark-to-Market Loan-to-Value Ratio 100.7% 119.3% 92.7% 93.0% 111.4% 116.7% 102.7% 113.1% 101.1% 80.0%

Mark-to-Market Loan-to-Value Ratio > 100% and <= 125% 13.1% 24.8% 19.0% 17.9% 37.7% 34.5% 20.0% 24.1% 25.4% 10.9%

Mark-to-Market Loan-to-Value Ratio > 125% 35.1% 38.5% 15.9% 16.6% 20.2% 29.0% 25.2% 30.3% 19.5% 7.7%

Weighted Average FICO (3) 707 725 587 641 716 590 716 620 693 739

FICO < 620 (3) 6.8% 1.4% 100.0% ? 6.5% 100.0% 1.0% 50.0% 12.0% 3.1%

Fixed-rate 1.4% 30.6% 80.0% 82.7% 89.1% 77.8% 66.3% 64.8% 76.4% 89.4%

Primary Residence 68.7% 85.3% 96.6% 94.0% 95.2% 98.9% 77.6% 96.8% 90.0% 89.3%

Condo/Co-op 13.3% 16.0% 4.8% 6.5% 10.2% 5.8% 10.3% 4.2% 9.5% 9.4%

Credit Enhanced (4) 54.7% 16.7% 28.6% 26.8% 69.6% 83.9% 16.0% 59.3% 35.1% 13.8%

% of 2007 Credit Losses (5) 0.9% 15.0% 18.8% 21.9% 17.4% 6.4% 27.8% 1.0% 72.3% 100.0%

% of 2008 Credit Losses (5) 2.9% 34.2% 11.8% 17.4% 21.3% 5.4% 45.6% 2.0% 81.3% 100.0%

% of 2009 Credit Losses (5) 2.0% 32.6% 8.8% 15.5% 19.2% 3.4% 39.6% 1.5% 75.0% 100.0%

% of 2010 Credit Losses (5) 1.9% 28.6% 8.0% 15.1% 15.9% 2.7% 33.2% 1.1% 68.4% 100.0%

% of 2011 Credit Losses (5) 1.2% 25.8% 7.9% 10.8% 14.0% 2.2% 27.3% 0.6% 63.4% 100.0%

% of Q1 2012 Credit Losses (5) 1.2% 23.3% 7.7% 14.2% 18.7% 2.5% 24.7% 1.2% 63.2% 100.0%

(1) Loans with multiple product features are included in all applicable categories. The subtotal is calculated by counting a loan only once even if it is included in multiple categories. (2) Excludes non-Fannie Mae securities held in portfolio and those Alt-A and subprime wraps for which Fannie Mae does not have loan-level information. Fannie Mae had access to detailed loan-level information for over 99% of its single-family conventional guaranty book of business as of March 31, 2012.

(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 conventional guaranty book of business for which Fannie Mae had access to loan level information. Includes primary mortgage insurance, pool insurance, lender recourse and other credit enhancement.

(5) Expressed as a percentage of credit losses for the single-family guaranty book of business. For information on total credit losses, refer to Fannie Mae’s 2012 Q1 Form 10-Q.

6

Fannie Mae Credit Profile by Origination Year and Key Product Features

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

Origination Year

Overall 2004 and

As of March 31, 2012 2012 2011 2010 2009 2008 2007 2006 2005

Book Earlier

Unpaid Principal Balance (billions) (1) $2,777.3 $125.9 $500.4 $484.8 $418.9 $176.6 $253.6 $176.5 $179.0 $461.6

Share of Single-Family Conventional Guaranty Book 100.0% 4.5% 18.0% 17.5% 15.1% 6.4% 9.1% 6.4% 6.4% 16.6%

Average Unpaid Principal Balance(1) $156,697 $213,893 $200,673 $198,648 $190,413 $171,609 $173,035 $157,721 $143,287 $89,835

Serious Delinquency Rate 3.67% ? 0.07% 0.29% 0.63% 5.74% 12.27% 11.58% 7.23% 3.30%

Weighted Average Origination Loan-to-Value Ratio 71.5% 70.0% 70.0% 69.6% 68.6% 75.3% 78.6% 75.5% 73.2% 70.7%

Origination Loan-to-Value Ratio > 90% (2) 10.3% 11.2% 10.4% 8.1% 5.1% 13.3% 21.5% 12.7% 9.4% 9.2%

Weighted Average Mark-to-Market Loan-to-Value Ratio 80.0% 69.9% 71.2% 72.7% 74.2% 94.1% 114.1% 113.0% 96.7% 62.0%

Mark-to-Market Loan-to-Value Ratio > 100% and <= 125% 10.9% 3.7% 4.1% 5.8% 7.6% 25.4% 27.2% 23.4% 19.1% 6.2%

Mark-to-Market Loan-to-Value Ratio > 125% 7.7% 0.5% 0.3% 0.5% 0.6% 12.7% 31.5% 31.5% 19.4% 3.1%

Weighted Average FICO(3) 739 763 761 761 758 728 703 706 714 716

FICO < 620 (3) 3.1% 0.6% 0.5% 0.5% 0.5% 3.6% 8.7% 7.1% 5.4% 5.9%

Interest Only 4.5% 0.3% 0.6% 1.0% 1.0% 6.4% 16.0% 17.6% 10.9% 2.2%

Negative Amortizing 0.3% 0.1% 1.2% 1.4% 0.8%

Fixed-rate 89.4% 96.5% 93.8% 94.8% 97.2% 85.8% 77.6% 75.9% 77.9% 87.3%

Primary Residence 89.3% 89.6% 88.4% 90.4% 91.8% 87.0% 88.3% 86.5% 86.8% 90.4%

Condo/Co-op 9.4% 8.2% 8.9% 8.6% 8.8% 12.2% 11.3% 11.6% 10.8% 7.9%

Credit Enhanced (4) 13.8% 9.8% 10.1% 7.4% 7.3% 28.4% 32.3% 21.3% 16.6% 12.1%

% of 2007 Credit Losses (5) 100.0% ? ? ? ? ? 1.9% 21.3% 23.6% 53.2%

% of 2008 Credit Losses (5) 100.0% ? ? ? ? 0.5% 27.9% 34.9% 19.3% 17.3%

% of 2009 Credit Losses (5) 100.0% ? ? ? ? 4.8% 36.0% 30.9% 16.4% 11.9%

% of 2010 Credit Losses (5) 100.0% ? ? ? 0.4% 7.0% 35.8% 29.2% 15.9% 11.7%

% of 2011 Credit Losses (5) 100.0% ? ? 0.7% 1.6% 5.7% 30.3% 27.7% 19.2% 14.8%

% of Q1 2012 Credit Losses (5) 100.0% ? 0.2% 1.1% 1.9% 7.5% 34.6% 26.0% 15.0% 13.6%

Cumulative Default Rate (6) ? ? 0.0% 0.1% 0.2% 2.8% 9.7% 9.1% 5.5% ?

(1) Excludes non-Fannie Mae securities held in portfolio and those Alt-A and subprime wraps for which Fannie Mae does not have loan-level information. Fannie Mae had access to detailed loan-level information for over 99% of its single-family conventional guaranty book of business as of March 31, 2012.

(2) The increase for 2010, 2011, and 2012 is the result of our Refi Plus loans, which started in April 2009, and involve the refinance of existing Fannie Mae loans that can have loan-to-value ratios 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 conventional guaranty book of business for which Fannie Mae has access to loan-level information. Includes primary mortgage insurance, pool insurance, lender recourse and other credit enhancement.

(5) Expressed as a percentage of credit losses for the single-family guaranty book of business. For information on total credit losses, refer to Fannie Mae’s 2012 Q1 Form 10-Q.

(6) Defaults include loan liquidations other than through voluntary pay-off or repurchase by lenders and include loan foreclosures, preforeclosure sales, sales to third parties and deeds in lieu of foreclosure. Cumulative Default Rate is the total number of single-family conventional loans in the guaranty book of business originated in the identified year that have defaulted, divided by the total number of single-family conventional loans in the guaranty book of business originated in the identified year. For 2002 to 2004 cumulative default rates, refer to slide 15.

7

Fannie Mae Credit Profile by State

Credit Characteristics of Single-Family Conventional Guaranty Book of Business by State

Overall Select Midwest

As of March 31, 2012 AZ CA FL NV

Book States (5)

Unpaid Principal Balance (billions) (1) $2,777.3 $66.5 $523.8 $173.2 $28.4 $283.7

Share of Single-Family Conventional Guaranty Book 100.0% 2.4% 18.9% 6.2% 1.0% 10.2%

Average Unpaid Principal Balance (1) $156,697 $149,009 $222,758 $139,258 $159,582 $122,518

Serious Delinquency Rate 3.67% 3.22% 2.24% 11.35% 7.06% 4.02%

Origination Years 2005-2008 28.3% 42.4% 23.5% 51.0% 49.0% 26.7%

Weighted Average Origination Loan-to-Value Ratio 71.5% 75.2% 65.3% 73.9% 75.5% 75.4%

Origination Loan-to-Value Ratio > 90% 10.3% 13.1% 5.2% 11.9% 11.1% 14.4%

Weighted Average Mark-to-Market Loan-to-Value Ratio 80.0% 105.2% 81.1% 106.4% 137.9% 85.1%

Mark-to-Market Loan-to-Value Ratio >100% and <=125% 10.9% 18.2% 10.4% 16.6% 15.1% 16.4%

Mark-to-Market Loan-to-Value Ratio >125% 7.7% 27.5% 11.6% 31.2% 50.9% 8.3%

Weighted Average FICO (2) 739 740 749 725 734 734

FICO < 620 (2) 3.1% 2.5% 1.6% 4.7% 2.6% 4.0%

Interest Only 4.5% 9.1% 6.7% 8.6% 12.9% 2.8%

Negative Amortizing 0.3% 0.4% 0.9% 0.8% 1.0% 0.1%

Fixed-rate 89.4% 84.1% 86.6% 83.5% 77.6% 89.1%

Primary Residence 89.3% 81.1% 87.3% 82.3% 78.4% 93.3%

Condo/Co-op 9.4% 4.5% 11.9% 13.9% 5.9% 11.0%

Credit Enhanced (3) 13.8% 13.4% 6.1% 15.2% 14.0% 17.6%

% of 2007 Credit Losses (4) 100.0% 1.8% 7.2% 4.7% 1.2% 46.6%

% of 2008 Credit Losses (4) 100.0% 8.0% 25.2% 10.9% 4.9% 21.1%

% of 2009 Credit Losses (4) 100.0% 10.8% 24.4% 15.5% 6.5% 14.8%

% of 2010 Credit Losses (4) 100.0% 10.0% 22.6% 17.5% 6.1% 13.6%

% of 2011 Credit Losses (4) 100.0% 11.7% 27.0% 11.0% 7.9% 12.0%

% of Q1 2012 Credit Losses (4) 100.0% 7.6% 19.6% 19.6% 5.1% 17.7%

(1) Excludes non-Fannie Mae securities held in portfolio and those Alt-A and subprime wraps for which Fannie Mae does not have loan-level information. Fannie Mae had access to detailed loan-level information for over 99% of its single-family conventional guaranty book of business as of March 31, 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 conventional guaranty book of business for which Fannie Mae has access to loan-level information. Includes primary mortgage insurance, pool insurance, lender recourse and other credit enhancement.

(4) Expressed as a percentage of credit losses for the single-family guaranty book of business. For information on total credit losses, refer to Fannie Mae’s 2012 Q1 Form 10-Q. (5) Select Midwest states are Illinois, Indiana, Michigan and Ohio.

8

Fannie Mae Alt-A Credit Profile by Key Product Features

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

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

Earlier

Unpaid principal balance (billions) (3) $175.9 $0.8 $6.4 $4.0 $1.4 $4.2 $42.7 $45.3 $31.7 $39.2

Share of Alt-A 100.0% 0.5% 3.6% 2.3% 0.8% 2.4% 24.3% 25.8% 18.0% 22.3%

Weighted Average Origination Loan-to-Value Ratio 73.5% 74.9% 74.0% 79.0% 75.0% 68.3% 75.1% 74.3% 72.9% 71.1%

Origination Loan-to-Value Ratio > 90% (4) 6.9% 26.8% 24.6% 28.4% 20.6% 2.6% 8.5% 4.9% 3.3% 4.9%

Weighted Average Mark-to-Market Loan-to-Value Ratio 102.7% 74.8% 76.3% 84.8% 83.5% 90.1% 118.9% 120.0% 106.5% 70.6%

Mark-to-Market Loan-to-Value Ratio > 100% and <=125% 20.0% 14.9% 14.8% 23.4% 22.8% 21.1% 25.5% 23.7% 21.0% 9.4%

Mark-to-Market Loan-to-Value Ratio > 125% 25.2% ? 1.7% 1.3% 2.5% 12.0% 36.5% 37.4% 27.4% 6.0%

Weighted Average FICO (5) 716 732 743 734 735 723 709 711 721 718

FICO < 620 (5) 1.0% 6.0% 2.7% 3.3% 3.7% 0.3% 0.6% 0.6% 0.4% 1.6%

Adjustable-rate 33.7% 1.4% 2.1% 4.4% 3.7% 22.4% 34.5% 38.9% 44.3% 29.4%

Interest Only 27.3% ? ? ? 0.1% 7.3% 37.0% 37.5% 29.9% 14.0%

Negative Amortizing 2.6% ? ? ? ? ? ? 3.8% 5.9% 2.4%

Investor 17.8% 26.0% 22.8% 12.0% 5.4% 18.7% 19.0% 16.6% 19.9% 16.2%

Condo/Co-op 10.3% 9.2% 6.9% 9.4% 8.9% 6.9% 9.2% 11.1% 12.9% 9.7%

California 21.0% 26.9% 25.5% 19.8% 15.8% 20.4% 21.0% 18.6% 20.1% 24.3%

Florida 11.8% 5.3% 4.1% 3.5% 3.4% 9.9% 13.1% 14.1% 13.6% 9.1%

Credit Enhanced (6) 16.0% 1.9% 2.1% 2.3% 1.5% 14.1% 17.8% 15.5% 15.5% 19.7%

2011 Serious Delinquency Rate 12.43% ? 0.21% 2.11% 4.25% 10.70% 18.46% 17.55% 12.19% 6.65%

2012 Serious Delinquency Rate 12.03% ? 0.40% 2.42% 4.51% 10.56% 17.82% 17.03% 11.93% 6.61%

% of 2007 Credit Losses (7) 27.8% ? ? ? ? ? 0.7% 9.8% 9.7% 7.7%

% of 2008 Credit Losses (7) 45.6% ? ? ? ? 0.0% 12.4% 20.1% 9.7% 3.4%

% of 2009 Credit Losses (7) 39.6% ? ? ? ? 0.4% 13.4% 15.8% 7.3% 2.6%

% of 2010 Credit Losses (7) 33.2% ? ? 0.0% 0.0% 0.5% 11.8% 12.8% 5.7% 2.3%

% of 2011 Credit Losses (7) 27.3% ? ? 0.1% 0.1% 0.3% 8.5% 10.1% 5.9% 2.5%

% of Q1 2012 Credit Losses (7) 24.7% ? 0.0% 0.1% 0.1% 0.3% 8.5% 9.6% 4.2% 2.0%

Cumulative Default Rate (8) ? ? 0.0% 0.8% 2.0% 7.7% 17.8% 16.9% 10.8% ?

(1) “Alt-A mortgage loan” generally refers to a mortgage loan that can be underwritten with reduced or alternative documentation than that required for a full documentation mortgage loan but may also include other alternative product features. In reporting our Alt-A exposure, we have classified mortgage loans as Alt-A if the lenders that deliver the mortgage loans to us have classified the loans as Alt-A based on documentation or other product features. We have loans with some features that are similar to Alt-A mortgage loans that we have not classified as Alt-A because they do not meet our classification criteria. We have classified private-label mortgage-related securities held in our investment portfolio as Alt-A if the securities were labeled as such when issued.

(2) Newly originated Alt-A loans acquired in 2009, 2010, 2011, and 2012 primarily consist of the refinance of existing Alt-A loans under our Refi Plus initiative.

(3) Excludes non-Fannie Mae securities held in portfolio and those Alt-A and subprime wraps for which Fannie Mae does not have loan-level information. Fannie Mae had access to detailed loan-level information for over 99% of its single-family conventional guaranty book of business as of March 31, 2012.

(4) The increase for 2009, 2010, 2011, and 2012 is the result of Refi Plus loans, which started in April 2009 and can have loan-to-value ratios that could be 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 loans. At March 31, 2012, 9.9% of unpaid principal balance of Alt-A loans carried only primary mortgage insurance (no deductible), 4.7% had only pool insurance (which is generally subject to a deductible), 1.0% had primary mortgage 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, refer to Fannie Mae’s 2012 Q1 Form 10-Q.

(8) Defaults include loan liquidations other than through voluntary pay-off or repurchase by lenders and includes loan foreclosures, preforeclosure sales, sales to third parties and deeds in lieu of foreclosure. Cumulative Default Rate is the total number of single-family conventional loans in the guaranty book of business originated in the identified year that have defaulted, divided by the total number of single-family conventional loans in the guaranty book of business originated in the identified year.

9

Fannie Mae Single-Family Serious Delinquency Rates by States and Region (1)

Serious Delinquency Rate by States

16% 14% 12% 10% 8% 6% 4% 2% 0%

2009 Q1 2009 Q2 2009 Q3 2009 Q4 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1

AZ CA FL NV Select Midwest States (2) All

Serious Delinquency Rate by Region (3)

8% 7% 6% 5% 4% 3% 2% 1% 0%

2009 Q1 2009 Q2 2009 Q3 2009 Q4 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1

Midwest Northeast Southeast Southwest West

(1) Calculated based on the number of loans in Fannie Mae’s single-family conventional guaranty book of business within each specified category. (2) Select Midwest states are Illinois, Indiana, Michigan, and Ohio.

(3) For information on which states are included in each region, refer to footnote 9 to Table 33 in Fannie Mae’s 2012 Q1 Form 10-Q.

10

Fannie Mae Single-Family Completed Workouts by Type

Number of Loans

100,000 75,000 50,000 25,000 0

87,533

82,684 78,079 80,195

77,748

2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1

Modifications Repayment Plans Completed Forbearances Completed Preforeclosure Sales and Deeds-in-Lieu

Modifications involve changes to the original mortgage loan terms, which may include a change to the product type, interest rate, amortization term, maturity date and/or unpaid principal balance. Modifications include both completed modifications under the Administration’s Home Affordable Modification Program (HAMP) and completed non-HAMP modifications, and do not reflect loans currently in trial modifications Repayment plans involve plans to repay past due principal and interest over a reasonable period of time through temporarily higher monthly payments. Loans with completed repayment plans are included for loans that were at least 60 days delinquent at initiation.

Forbearances involve an agreement to suspend or reduce borrower payments for a period of time. Loans with forbearance plans are included for loans that were at least 90 days delinquent at initiation.

Deeds-in-lieu of foreclosure involve the borrower’s voluntarily signing over title to the property.

In a preforeclosure sale, the borrower, working with the servicer, sells the home prior to foreclosure to pay off all or part of the outstanding loan, accrued interest and other expenses from the sale proceeds.

11

Home Affordable Modification Program (HAMP)

Fannie Mae Loans Under HAMP

Active Permanent HAMP

As of March 31, 2012 reporting period Active HAMP Trials Modifications (1)

Total 17,774 253,210

Modification Structure

Rate Reduction 93% 100%

Term Extension 65% 67%

Forbearance 21% 27%

Median Monthly Interest and

Principal Payment Reduction $403 $490

% of March 31, 2012 Seriously

Delinquent Loans 2%

Data Source: United States Treasury Department as reported by servicers to the system of record for the Home Affordable Modification Program, except for the percentage of seriously delinquent loans.

(1) Active Permanent HAMP modifications exclude modifications on loans that subsequently canceled because the loans were 90+ days delinquent or paid off.

Provides immediate payment relief to borrowers who are delinquent or in imminent risk of payment default.

12

Fannie Mae Single-Family Loan Modifications by Monthly Payment Change and Type

Change in Monthly Principal and Interest Payment

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

100% 80% 60% 40% 20% 0%

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012

Decrease of greater than 30% of Principal and Interest Payment

Decrease of greater than 20% but less than or equal to 30% of Principal and Interest Payment Decrease of less than or equal to 20% of Principal and Interest Payment No Change in Principal and Interest Payment Increase in Principal and Interest Payment

100% 80% 60% 40% 20% 0%

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012

Capitalization of Missed Payments and Other Extend Term, Reduce Rate and Forbear Principal Extend Term and Reduce Rate Extend Term Only Reduce Rate Only

(1) Excludes loans that were classified as subprime adjustable rate mortgages that were modified into fixed rate mortgages and were current at the time of 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 monthly principal and interest payment on modified loans may vary, and may increase, during the remaining life of the loan.

13

Performance of Fannie Mae Modified Loans

Re-performance Rates of Modified Single-Family Loans(1)

% Current or Paid Off 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

3 months post modification 57% 78% 80% 79% 78% 81% 84% 84% 83% 84%

6 months post modification 47% 69% 71% 73% 75% 77% 78% 79% 79% n/a

9 months post modification 45% 62% 65% 71% 73% 72% 75% 77% n/a n/a

12 months post modification 42% 58% 65% 70% 70% 69% 74% n/a n/a n/a

15 months post modification 40% 60% 63% 66% 67% 68% n/a n/a n/a n/a

18 months post modification 41% 58% 60% 65% 67% n/a n/a n/a n/a n/a

21 months post modification 40% 56% 59% 65% n/a n/a n/a n/a n/a n/a

24 months post modification 39% 55% 60% n/a n/a n/a n/a n/a n/a n/a

(1) Excludes loans that were classified as subprime adjustable rate mortgages that were modified into fixed rate mortgages and were current at the time of modification. Modifications include permanent modifications, but do not reflect loans currently in trial modifications.

14

Fannie Mae Single-Family Cumulative Default Rates

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

Cumulative Default Rate

10.0%

9.5%

9.0%

8.5%

8.0%

7.5%

7.0%

6.5%

6.0%

5.5%

5.0%

4.5%

4.0%

3.5%

3.0%

2.5%

2.0%

1.5%

1.0%

0.5%

0.0%

2012 2011

2007

2006

2008

2005

2004

2003

2002

Yr1-Q1 Yr2-Q1 Yr3-Q1 Yr4-Q1 Yr5-Q1 Yr6-Q1 Yr7-Q1 Yr8-Q1 Yr9-Q1 Yr10-Q1 Yr11-Q1

Time Since Beginning of Origination Year

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Note: Defaults include loan liquidations other than through voluntary pay-off or repurchase by lenders and include loan foreclosures, preforeclosure sales, sales to third parties and deeds in lieu of foreclosure. Cumulative Default Rate is the total number of single-family conventional loans in the guaranty book of business originated in the identified year that have defaulted, divided by the total number of single-family conventional loans in the guaranty book of business originated in the identified year.

Data as of March 31, 2012 are not necessarily indicative of the ultimate performance of the loans and performance is likely to change, perhaps materially, in future periods.

15

Fannie Mae Single-Family Real Estate Owned (REO) in Selected States

Average Days REO Acquisitions and Dispositions (Number of Properties)

From Last Paid REO REO

State Installment to Inventory as Inventory as

of March 31, of March 31,

Foreclosure YTD Q1 2012 2011 2010 2009 2008 2007 2012 2011

2012 (2) (3)

Beginning Balance NA 118,528 162,489 86,155 63,538 33,729 25,125 NA NA

Arizona 387 2,246 16,172 20,691 12,854 5,532 751 3,795 9,703

California 527 3,829 27,589 34,051 19,565 10,624 1,681 11,789 21,800

Florida 1,031 5,610 13,748 29,628 13,282 6,159 1,714 10,401 13,871

Nevada 566 1,003 8,406 9,418 6,075 2,906 530 2,117 4,858

Select Midwest States (1) 698 11,657 33,777 45,411 28,464 23,668 16,678 30,963 34,311

All other States 563 23,355 100,004 122,879 65,377 45,763 27,767 55,092 68,681

Total Acquisitions NA 47,700 199,696 262,078 145,617 94,652 49,121 NA NA

Total Dispositions NA (52,071) (243,657) (185,744) (123,000) (64,843) (40,517) NA NA

Ending Inventory NA 114,157 118,528 162,489 86,155 63,538 33,729 NA NA

(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 related properties were added to our REO inventory for foreclosures completed during Q1 2012.

(3) Fannie Mae incurs additional costs associated with property taxes, hazard insurance, and legal fees while a delinquent loan remains in the foreclosure process. Additionally, the longer a loan remains in the foreclosure process, the longer it remains in our guaranty book of business as a seriously delinquent loan. The average number of days from last paid installment to foreclosure for all states combined were 327, 325, 407, 479, and 529 in each of the years 2007 through 2011, respectively, and 641 year-to-date 2012.

REO Net Sales Prices(1) Compared With Unpaid Principal Balances of Mortgage Loans

Q1 2012 2011 2010 2009 2008 2007 2006 2005

57% 55% 57% 55% 68% 78% 83% 87%

(1) Net sales price represents contract sales price less costs to sell the property and other reductions due at closing.

16

Fannie Mae Multifamily Credit Profile by Loan Attributes

% of Multifamily % of 2012 YTD % of 2011 % of 2010

Unpaid Principal % Seriously

As of March 31, 2012 Loan Counts Guaranty Book of Multifamily Credit Multifamily Credit Multifamily Credit

Balance (Billions) Delinquent (2)

Business (UPB) Losses Losses Losses

Total Multifamily Guaranty Book of Business (1) 39,947 $194.9 100% 0.37% 100% 100% 100%

Credit Enhanced Loans:

Credit Enhanced 35,843 $174.8 90% 0.35% 71% 83% 68%

Non-Credit Enhanced 4,104 $20.1 10% 0.57% 29% 17% 32%

Originating loan-to-value ratio: (3)

Less than or equal to 70% 25,094 $104.2 53% 0.17% 20% 18% 8%

Greater than 70% and less than or equal to 80% 11,825 $82.2 42% 0.59% 62% 70% 89%

Greater than 80% 3,028 $8.5 4% 0.75% 18% 12% 3%

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

DUS ®—Small Balance Loans (5) 7,994 $15.3 8% 0.42% 4% 9% 7%

DUS ®—Non Small Balance Loans 11,510 $142.8 73% 0.25% 88% 72% 61%

DUS ®—Total 19,504 $158.1 81% 0.26% 92% 81% 68%

Non-DUS—Small Balance Loans (5) 19,207 $16.1 8% 1.22% 8% 12% 10%

Non-DUS—Non Small Balance Loans 1,236 $20.7 11% 0.55%—7% 22%

Non-DUS—Total 20,443 $36.8 19% 0.84% 8% 19% 32%

Maturity Dates:

Loans maturing in 2012 961 $7.2 4% 0.77% 4% 7% 15%

Loans maturing in 2013 3,074 $17.2 9% 0.33% 2% 7% 10%

Loans maturing in 2014 2,563 $14.1 7% 0.46% 21% 5% 11%

Loans maturing in 2015 3,164 $16.3 8% 0.52% 6% 6% 4%

Loans maturing in 2016 3,107 $16.3 8% 0.69% 2% 8% 14%

Other maturities 27,078 $123.7 64% 0.28% 66% 68% 46%

Loan Size Distribution:

Less than or equal to $750K 11,585 $3.6 2% 1.18% 2% 5% 2%

Greater than $750K and less than or equal to $3M 14,392 $21.2 11% 0.92% 10% 16% 16%

Greater than $3M and less than or equal to $5M 4,718 $17.2 9% 0.53% 7% 11% 17%

Greater than $5M and less than or equal to $25M 8,135 $81.9 42% 0.41% 61% 50% 48%

Greater than $25M 1,117 $70.9 36% 0.08% 20% 18% 17%

(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) Weighted Average Original loan-to-value ratio is 66% as of March 31, 2012.

(4) Under the Delegated Underwriting and Servicing, or DUS ®, product line, Fannie Mae purchases individual, newly originated mortgages from specially approved DUS lenders using DUS underwriting standards and/or DUS loan documents. Because DUS lenders generally share the risk of loss with Fannie Mae, they are able to originate, underwrite, close and service most loans without our pre-review.

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

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Fannie Mae Multifamily Credit Profile by Acquisition Year

Multifamily SDQ Rate by Acquisition Year

SDQ (%)

1.60%

1.40%

1.20%

1.00%

0.80%

0.60%

0.40%

0.20%

0.00%

2011

2010

2009

2008

2007

2006

2005

Year Year Year Year Year Year Year Year

1 2 3 4 5 6 7 8

2005 2006 2007 2008 2009 2010 2011

Cumulative Default Rate

2.50%

2.00%

1.50%

1.00%

0.50%

0.00%

Cumulative Defaults by Acquisition Year

2010

2009

2008

2007

2006

2005

Year Year Year Year Year Year Year Year

1 2 3 4 5 6 7 8

2005 2006 2007 2008 2009 2010

% of Multifamily # of Seriously % of 2012 YTD % of 2011 % of 2010

Unpaid Principal Guaranty Book of % Seriously Delinquent Multifamily Multifamily Multifamily

As of March 31, 2012 Balance (Billions) Business (UPB) Delinquent (2) loans (2) Credit Losses Credit Losses Credit Losses

Total Multifamily Guaranty Book of Business (1) $194.9 100% 0.37% 312 100% 100% 100%

By Acquisition Year:

2012 $7.3 4%———-

2011 $24.3 12% 0.01% 1——

2010 $17.6 9% 0.04% 1 0%—-

2009 $18.0 9% 0.07% 4 3% 6% 2%

2008 $29.8 15% 0.58% 81 22% 31% 17%

2007 $36.9 19% 0.56% 123 50% 33% 38%

2006 $17.0 9% 0.60% 21 2% 7% 17%

2005 $14.2 7% 0.32% 18 24% 3% 2%

Prior to 2005 $29.7 15% 0.59% 63 1% 20% 25%

(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.

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Fannie Mae Multifamily Credit Profile

% of Multifamily % of 2012 YTD % of 2011 % of 2010

Unpaid Principal % Seriously

As of March 31, 2012 Guaranty Book of Multifamily Multifamily Multifamily

Balance (Billions) Delinquent (2)

Business (UPB) Credit Losses Credit Losses Credit Losses

Total Multifamily Guaranty Book of Business (1) $194.9 100% 0.37% 100% 100% 100%

Region: (3)

Midwest $16.2 8% 1.04% 4% 23% 10%

Northeast $41.8 21% 0.41% 1% 3% 5%

Southeast $38.8 20% 0.43% 56% 42% 40%

Southwest $32.7 17% 0.21% 16% 26% 40%

Western $65.3 34% 0.23% 23% 6% 6%

Top Five States by UPB:

California $51.6 26% 0.11% 2% 1% 2%

New York $24.7 13% 0.31%—- 1%

Texas $15.9 8% 0.24% 6% 19% 12%

Florida $9.7 5% 1.04% 48% 10% 13%

Virginia $7.3 4% ?——

Asset Class: (4)

Conventional/Co-op $172.8 89% 0.41% 100% 96% 99%

Seniors Housing $14.5 7%—— -

Manufactured Housing $4.9 3% 0.07%——

Student Housing $2.6 1% 0.45%—4% 1%

Targeted Affordable Segment:

Privately Owned with Subsidy (5) $27.6 14% 0.18% 4% 14% 6%

DUS & Non-DUS Lenders:

DUS Lender: Bank (Direct, Owned Entity, or Subsidiary) $86.0 44% 0.46% 5% 34% 53%

DUS Lender Non-Bank Financial Institution $93.5 48% 0.67% 92% 63% 40%

Non-DUS Lender: Bank (Direct, Owned Entity, or Subsidiary) $14.1 8% 0.84% 3% 1% 4%

Non-DUS Lender: Non-Bank Financial Institution $1.1 1% 0.41% 0% 1% 3%

Non-DUS Lender: Public Agency/Non Profit $0.2 0% 0.14% 0% 0% 0%

(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 Q1 Form 10-Q.

(4) Asset Class Definitions: Conventional/Co-Op Housing: Privately owned multifamily properties or multifamily properties in which the residents collectively own the property through their shares in the cooperative corporation. Seniors Housing: Multifamily rental properties for senior citizens. Manufactured Housing: A residential real estate development consisting of housing sites for manufactured homes, related amenities, utility services, landscaping, roads and other infrastructure. Student Housing: Multifamily rental 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 provides long-term affordability, such as properties with rent subsidies or income restrictions.

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Fannie Mae Multifamily Q1 2012 Credit Losses by State ($ Millions)

Example: UPB in Ohio is $2.8B and Q1 2012 Credit Losses have been $2M

Portfolio UPB(1) Concentration by State as of 03/31/2012

Numbers: Represent Q1 2012 credit losses for each state which total $136M as of March 31, 2012. States with no numbers had less than $1 million in credit losses in Q1 2012. Shading: Represent Unpaid Principal Balance (UPB) for each state which total $194.8B as of March 31, 2012.

(1) Excludes loans that have been defeased. Defeasance is prepayment of a loan through substitution of collateral

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