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 23, 2003

Federal National Mortgage Association
(Exact name of registrant as specified in its charter)

Fannie Mae

Federally chartered corporation		0-50231		52-0883107
(State or other jurisdiction		(Commission		(IRS Employer
of incorporation)		File Number)		Identification Number)
3900 Wisconsin Avenue, NW				20016
Washington, DC				(Zip Code)
(Address of principal executive offices)

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

 

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Item 5. Other Events.

     On May 23, 2003, Fannie Mae (formally, the “Federal National Mortgage Association”), issued its quarterly business activity supplement for the first quarter of 2003. A copy of the supplement is filed as Exhibit 99.1 to this report, and is incorporated herein by reference.

Item 7. Financial Statements and Exhibits.

	(a)		Not applicable.
	(b)		Not applicable
	(c)		Exhibits.
			An index to exhibits has been filed as part of this Report immediately following the signature page, and is incorporated herein by reference.

 

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SIGNATURES

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.

Date: May 23, 2003

 

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EXHIBIT INDEX

The following is a list of the Exhibits furnished herewith.

Exhibit Number		Description of Exhibit
99.1		Quarterly business activity supplement for the first quarter of 2003, issued by Fannie Mae on May 23, 2003.

 

 

Business Activity Supplement

First Quarter 2003

 

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Business Activity Supplement
First Quarter 2003

Table of Contents

		Page
Portfolio Commitment Activity			1
Mortgage Purchases			2
Fixed-rate Mortgages by Note Rate			3
Mortgage Portfolio Liquidations and Sales			4
Debt Summary Statistics			5
Summary of Debt Issued			6
Summary of Debt Redeemed			7
Effective Long-term Debt Maturing			8
Callable Debt, Callable Swaps, Receive-Fixed Swaptions and Other Option Embedded Instruments			9
Mortgage-Backed Securities Issues			10
Mortgage-Backed Securities Outstanding			11
Single-family REO Acquisitions and Preforeclosure Sales			12
Single-family REO Inventory			13
Portfolio and Mortgage-Backed Securities Outstanding by State			14
Conventional Single Family Serious Delinquencies			15
Total Multifamily Serious Delinquencies and REO Inventory			16

This supplement contains statistical data which are unaudited. The unaudited data should be read in conjunction with audited financial statements, notes to the financial statements, and management’s discussion and analysis of financial condition and results of operations, included in Fannie Mae’s Annual Report on Form 10-K for the fiscal year ended December 31, 2002, filed with the Securities and Exchange Commission (“SEC”), and also with the unaudited financial statements, notes to financial statements, and management’s discussion and analysis of financial condition and results of operations, included in Fannie Mae’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2003, also filed with the SEC.

 

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(Dollars in millions)

			Mandatory Commitments to Purchase Loans 2/
			Single-Family
											Conventional												Total
							Conventional				Intermediate												Mandatory				Commitments				Retained
			FHA/VA				Long-Term				-Term 1/				ARM				Multifamily				Commitments				to Sell				Commitments
1997			$	4,693			$	55,884			$	6,043			$	2,380			$	965			$	69,965			$	1,298			$	68,667
1998				5,075				156,623				28,237				2,017				1,843				193,795				1,880				191,915
1999				24,065				142,529				12,609				6,129				2,616				187,948				5,900				182,048
2000				4,754				123,504				10,980				19,006				5,445				163,689				11,786				151,903
2001				4,313				261,240				28,361				3,636				6,534				304,084				7,586				296,498
2002
Qtr 1			$	664			$	38,052			$	12,845			$	979			$	1,665			$	54,205			$	3,422			$	50,783
Qtr 2				5,280				48,253				7,246				971				1,458				63,208				3,280				59,928
Qtr 3				380				105,185				21,685				1,725				1,421				130,396				2,370				128,026
Qtr 4				634				123,929				23,842				1,373				2,740				152,518				3,196				149,322
	Total		$	6,958			$	315,419			$	65,618			$	5,048			$	7,284			$	400,327			$	12,268			$	388,059
2003
January			$	74			$	20,144			$	6,442			$	528			$	626			$	27,814			$	2,717			$	25,097
February				137				43,868				7,244				644				586				52,479				1,241				51,238
March				441				32,633				7,407				791				733				42,005				2,457				39,548
	Qtr 1			652				96,645				21,093				1,963				1,945				122,298				6,415				115,883
	YTD		$	652			$	96,645			$	21,093			$	1,963			$	1,945			$	122,298			$	6,415			$	115,883

1/ Contractual maturities of 20 years or less for portfolio loans and 15 years or less for MBS.
2/ Net of pair-offs.

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(Dollars in millions)

							Single-Family
											Conventional
							Conventional				Intermediate												Total				Purchase				Fannie Mae
			FHA/VA				Long-Term				-Term 1/				ARM				Multifamily				Purchases				Yield 2/				MBS 3/
1997			$	5,539			$	55,925			$	6,030			$	1,977			$	994			$	70,465				7.40	%		$	39,032
1998				6,016				147,615				28,725				3,507				2,585				188,448				6.61	%			104,728
1999				23,575				146,679				15,315				6,073				3,568				195,210				6.88	%			125,498
2000				6,940				113,444				11,607				17,683				4,557				154,231				7.62	%			104,904
2001				6,001				226,516				26,146				3,777				8,144				270,584				6.56	%			180,582
2002
Qtr 1			$	1,255			$	74,262			$	11,868			$	1,514			$	2,047			$	90,946				6.31	%		$	67,112
Qtr 2				5,879				35,712				11,667				1,928				1,731				56,917				6.37	%			29,133
Qtr 3				1,120				59,013				10,336				2,466				1,292				74,227				5.94	%			44,269
Qtr 4				1,239				111,828				28,231				4,831				2,422				148,551				5.49	%			104,525
	Total		$	9,493			$	280,815			$	62,102			$	10,739			$	7,492			$	370,641				5.92	%		$	245,039
2003
January			$	250			$	45,586			$	9,645			$	921			$	879			$	57,281				5.44	%		$	42,858
February				261				33,638				4,720				1,195				606				40,420				5.32	%			27,530
March				417				26,560				5,205				1,439				683				34,304				5.20	%			18,252
	Qtr 1			928				105,784				19,570				3,555				2,168				132,005				5.34	%			88,640
	YTD		$	928			$	105,784			$	19,570			$	3,555			$	2,168			$	132,005				5.34	%		$	88,640

1/ Contractual maturities of 20 years or less for portfolio loans and 15 years or less for MBS.
2/ Yields are shown on a tax equivalent basis.
3/ Included in total purchases.

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Fixed Rate Mortgages by Note Rate 1/
March 2003

(Dollars in millions)

						6.00%				6.50%				7.00%				7.50%				8.00%				8.50%				9.00%				9.50%				10.00%
End of		under				to				to				to				to				to				to				to				to				and
Period		6.00%				6.49%				6.99%				7.49%				7.99%				8.49%				8.99%				9.49%				9.99%				over				Total
1997		$	914			$	11,218			$	71,085			$	163,002			$	227,750			$	149,800			$	87,021			$	26,877			$	21,153			$	20,979			$	779,799
1998			2,987				28,523				176,133				280,774				215,161				105,341				57,302				17,573				14,438				15,039				913,271
1999			6,057				49,285				266,401				323,154				224,092				94,037				45,030				13,082				10,575				11,168				1,042,881
2000			5,519				44,869				244,457				301,640				255,849				157,543				71,812				17,986				11,509				10,279				1,121,463
2001			19,055				86,842				393,701				414,763				250,472				114,772				54,280				14,846				10,182				10,177				1,369,090
2002
Qtr 1			33,731				122,605				452,387				418,800				230,587				99,464				48,349				13,278				8,890				8,666				1,436,757
Qtr 2			35,529				135,409				492,929				434,623				221,999				91,064				44,727				12,390				8,273				7,974				1,484,917
Qtr 3			52,472				169,799				533,746				419,077				207,070				83,506				41,835				11,647				7,695				7,290				1,534,137
Qtr 4			145,641				260,437				519,799				356,215				177,752				72,165				37,762				10,660				7,033				6,853				1,594,317
2003
Qtr 1			296,554				346,974				474,724				297,078				152,277				62,592				33,680				9,641				6,347				6,152				1,686,019

1/

Includes loans underlying mortgages in portfolio or backing net MBS outstanding. Excludes housing revenue bonds and certain other portfolio investments.

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Mortgage Portfolio Liquidations and Sales
March 2003

(Dollars in millions)

			Liquidations																				Sales								Total Liquidations and Sales
							Amortization				Total				Estimated				% of Avg.								Estimated								Estimated
			Foreclosure				& Prepayments				Amount				Net Yield				Portfolio 1/				Amount				Net Yield				Amount				Net Yield
1997			$	2,037			$	37,714			$	39,751				7.70	%			13.25	%		$	1,088				6.58	%		$	40,839				7.67	%
1998				1,950				86,917				88,867				7.66	%			25.02	%			1,793				6.91	%			90,660				7.65	%
1999				1,959				77,791				79,750				7.39	%			16.93	%			6,148				6.98	%			85,898				7.36	%
2000				1,040				56,193				57,233				7.18	%			10.25	%			10,982				6.98	%			68,215				7.15	%
2001				1,219				163,193				164,412				7.23	%			24.73	%			8,981				6.49	%			173,393				7.19	%
2002
Qtr 1			$	487			$	60,485			$	60,972				7.01	%			33.75	%		$	3,131				5.88	%		$	64,103				6.96	%
Qtr 2				618				45,857				46,475				6.89	%			25.16	%			3,629				6.82	%			50,104				6.89	%
Qtr 3				630				61,518				62,148				6.82	%			33.35	%			1,436				6.46	%			63,584				6.82	%
Qtr 4				743				107,081				107,824				6.71	%			56.48	%			1,386				5.48	%			109,210				6.70	%
	YTD		$	2,478			$	274,941			$	277,419				6.83	%			37.35	%		$	9,582				6.27	%		$	287,001				6.82	%
2003
Qtr 1			$	806			$	104,802			$	105,608				6.61	%			52.25	%		$	1,271				5.68	%		$	106,879				6.60	%

1/ Annualized

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Debt Summary Statistics
As of March 31, 2003

(Dollars in millions)

				Quarter Ended
Debt Outstanding				3/31/03				12/31/02				9/30/02				6/30/02				3/31/02
Effective short-term debt, redemption value 1/				$	173,243			$	192,702			$	137,234			$	103,043			$	116,466
	Cost				1.36	%			1.52	%			1.86	%			2.04	%			2.39	%
Effective long-term debt, redemption value 1/					693,891				651,827				657,246				686,061				656,325
	Cost				5.20	%			5.48	%			5.64	%			5.79	%			5.90	%
Other:
		Long-to-long and short-to-short interest rate swaps			0.40	%			0.39	%			0.30	%			0.17	%			0.17	%
		Foreign debt adjustment and other basis adjustments			8,945				8,735				8,050				2,291				(385	)
Total redemption value 2/				$	876,079			$	853,264			$	802,530			$	791,395			$	772,406
Cost					4.60	%			4.81	%			5.18	%			5.36	%			5.44	%
Other Funding Activities and Statistics
Option embedded debt instruments outstanding				$	590,819			$	601,451			$	514,421			$	429,757			$	405,899
Option embedded debt instruments as a % of net mortgage assets outstanding					71.8	%			75.4	%			67.9	%			58.0	%			55.5	%
Long Term Debt:
Debt called during period 3/ 4/				$	42,476			$	36,806			$	24,829			$	23,859			$	25,988
Debt repurchased during period 4/					3,614				1,044				846				3,515				2,506
Debt matured during period					23,165				24,814				11,273				9,912				10,417
Total Long Term Debt Redeemed During Period				$	69,255			$	62,664			$	36,948			$	37,286			$	38,911
Short Term Debt:
Debt called during period 3/ 4/				$	1,300			$	4,350			$	1,125			$	1,650			$	1,250
Debt matured/paydown during period					557,820				372,495				428,702				333,880				477,192
Total Short Term Debt Redeemed During Period				$	559,120			$	376,845			$	429,827			$	335,530			$	478,442
Total Debt Redeemed During Period				$	628,375			$	439,509			$	466,775			$	372,816			$	517,353
Short-to-Long Interest rate swaps retired before maturity during period 4/				$	175			$	12,600			$	39,440			$	1,150			$	550
Short-to-Long Interest rate swaps matured during period					4,525				16,870				8,500				525				650
Total SL Interest Rate Swaps Redeemed During Period				$	4,700			$	29,470			$	47,940			$	1,675			$	1,200

1/		Data reflects the classification of debt obligations based on the repricing frequency of their coupon rates and on debt conversion via interest rate swaps.
2/		Average maturity is 56 months at March 31, 2003.
3/		Includes debt that was called as a result of an associated swap being called. This debt was previously classified as non-callable.
4/		Included in total early redemptions, which totaled $47,565 million for the 1st quarter of 2003.

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Summary of Debt Issued
March 31, 2003

(Dollars in millions)

			Short-term Debt 1/												Long-Term Debt 2/ 4/
							Avg.												Avg.
			Redemption				Term				Accounting				Redemption				Term				Accounting
			Value				(days)				Cost 3/				Value				(months)				Cost 3/
1999			$	1,136,001				55				5.17	%		$	139,020				77				6.07	%
2000			$	1,143,131				63				6.27	%		$	110,215				89				6.92	%
2001			$	1,756,690				60				3.69	%		$	249,353				55				4.83	%
2002
	Qtr 1		$	461,929				51				1.76	%		$	61,936				65				4.58	%
	Qtr 2			338,957				70				1.80	%			50,067				57				4.37	%
	Qtr 3			411,567				50				1.70	%			60,479				56				3.32	%
	Qtr 4			423,466				64				1.43	%			65,985				48				3.00	%
TOTAL			$	1,635,919				58				1.67	%		$	238,467				56				3.78	%
2003
January			$	155,041				62				1.22	%		$	21,790				46				2.97	%
February				193,494				54				1.24	%			23,004				54				3.17	%
March				225,629				36				1.19	%			31,915				50				2.46	%
	Qtr 1			574,164				49				1.22	%			76,709				50				2.82	%
	YTD		$	574,164				49				1.22	%		$	76,709				50				2.82	%

1/		The impact of interest rate swaps is excluded.
2/		Long-term debt may be fixed or variable rate, and the impact of interest rate swaps is excluded.
3/		Accounting cost represents the monthly equivalent yield that discounts the amount due at maturity to the net proceeds over the expected life of the security. The impact of debt swaps is included.
4/		Long-term debt includes $13.8 billion of variable rate debt issued during the first quarter. In addition, $ 32.5 billion of short-term debt has been swapped to long-term debt during the first quarter of 2003 with an average maturity of 58 months.

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Summary of Debt Redeemed
March 31, 2003

(Dollars in millions)

			Short-Term Debt 1/								Long-Term Debt 2/ 4/
			Redemption				Accounting				Redemption				Accounting
			Value				Cost 3/				Value				Cost 3/
1999			$	1,125,748				5.10	%		$	61,790				6.51	%
2000			$	1,106,956				6.15	%		$	50,335				6.33	%
2001			$	1,691,239				4.22	%		$	196,610				6.03	%
2002
	Qtr 1		$	478,442				1.99	%		$	38,911				5.40	%
	Qtr 2			335,530				1.92	%			37,286				5.50	%
	Qtr 3			429,827				1.78	%			36,948				5.10	%
	Qtr 4			376,845				1.63	%			62,664				3.98	%
Total			$	1,620,644				1.84	%		$	175,809				4.85	%
2003
January			$	145,962				1.38	%		$	20,819				3.95	%
February				179,189				1.33	%			28,564				3.59	%
March				233,969				1.27	%			19,872				4.14	%
	Qtr 1			559,120				1.32	%			69,255				3.86	%
	YTD		$	559,120				1.32	%		$	69,255				3.86	%

1/		The impact of interest rate swaps is excluded.
2/		Long-term debt may be fixed or variable, and excludes the impact of interest rate swaps.
3/		Accounting cost represents the monthly equivalent yield that discounts the amount due at maturity to the net proceeds over the expected life of the security. The impact of debt swaps is included.
4/		Long-term debt includes $ 20.5 billion of variable rate debt redeemed during the first quarter. In addition, $ 4.7 billion of short-to-long interest rate swaps were redeemed during the first quarter of 2003.

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Effective Long Term Debt Maturing
As of March 31, 2003

						Total Debt by Quarter								Assuming Callable Debt
(Dollars in millions)						of Contractual Maturity								Redeemed at Initial Call Date
						Amount				Accounting				Amount				Accounting
						Outstanding 1/				Cost 2/				Outstanding 1/				Cost 2/
Currently Callable											0.00	%		$	12,080				5.17	%
2003		Qtr 2				$	26,204				5.23	%			94,337				4.60	%
		Qtr 3					11,080				4.53	%			52,890				4.13	%
		Qtr 4					21,245				4.65	%			64,116				4.70	%
		Total				$	58,529				4.89	%		$	211,343				4.51	%
2004		Qtr 1				$	19,430				5.55	%		$	60,581				5.05	%
		Qtr 2					32,663				4.08	%			51,329				5.42	%
		Qtr 3					28,287				4.77	%			31,985				5.93	%
		Qtr 4					21,653				3.47	%			18,335				4.81	%
		Total				$	102,033				4.42	%		$	162,230				5.31	%
2005		Qtr 1				$	32,234				3.75	%		$	35,415				4.96	%
		Qtr 2					15,190				4.78	%			12,332				6.13	%
		Qtr 3					20,582				5.08	%			15,833				6.54	%
		Qtr 4					25,159				4.30	%			15,887				4.95	%
		Total				$	93,165				4.36	%		$	79,467				5.45	%
2006							74,704				4.61	%			68,929				5.28	%
2007							79,758				5.08	%			49,167				5.63	%
2008 and beyond							285,702				6.00	%			110,675				5.90	%
Total Debt						$	693,891				5.20	%		$	693,891				5.20	%

1/		Amount outstanding includes long-term debt, effective fixed-rate debt and notional amount of long-term interest rate swaps. Also includes debt linked to swaptions which makes it effectively callable debt. Effective variable-rate debt is excluded from the data.
2/		Accounting cost represents the monthly equivalent yield that discounts the amount due at maturity to the net proceeds over the expected life of the security. The impact of debt swaps is included.

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Callable Debt, Callable Swaps, Receive-Fixed Swaptions
and Other Option Embedded Instruments
As of March 31, 2003

(Dollars in millions)

						Amount
Call Date		Year of Maturity				Outstanding				Average Cost
Callable debt, callable swaps and receive-fixed swaptions 1/:
Currently callable			2004-2016			$	12,080				5.17	%
2003			2003-2031				160,091				4.41	%
2004			2004-2028				92,560				5.44	%
2005			2006-2030				28,619				5.83	%
2006			2008-2031				24,708				6.10	%
2007			2011-2032				16,833				6.36	%
2008			2014-2033				4,890				6.35	%
2008 and later			2012-2030				12,670				6.87	%
Total							352,451				5.14	%
Pay-fixed swaptions							131,975
Caps							106,393
Total option-embedded financial instruments						$	590,819

1/

Excludes $12,345 million of callable debt which was swapped to variable rate debt and which is classified as effectively non-callable debt.

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Mortgage-Backed Securities Issued
March 2003

(Dollars in millions)

				Lender-originated MBS
				Single - Family
																								MBS Purchased				MBS Issues
				Long -				Inter-				Conventional												by Fannie Mae's				Acquired by				Fannie Mae				REMICs
				Term 1/				mediate /2				ARMS				Multifamily				Total				Portfolio				Other Investors				Originated				Issued
	1997			$	90,903			$	29,602			$	20,834			$	5,814			$	147,153			$	39,033			$	108,120			$	2,276			$	74,812
	1998				235,700				65,125				14,008				10,618				325,451				104,728				220,723				696				76,332
	1999				223,753				56,296				11,803				8,496				300,348				125,498				174,850				341				50,613
	2000				155,859				21,127				25,729				7,596				210,311				104,904				105,407				1,351				33,594
	2001				393,576				93,503				24,442				13,801				525,322				180,583				344,738				3,101				123,506
2002
	Qtr 1			$	114,588			$	45,092			$	11,439			$	2,797			$	173,916			$	67,112			$	106,804			$	2,064			$	36,819
	Qtr 2				91,442				25,852				12,605				2,143				132,042				29,133				102,909				2,964				21,624
	Qtr 3				107,126				32,527				15,237				1,971				156,861				44,269				112,592				3,759				35,511
	Qtr 4				165,681				64,677				24,695				5,427				260,480				104,525				155,955				7,509				50,012
		Total		$	478,837			$	168,148			$	63,976			$	12,338			$	723,299			$	245,039			$	478,260			$	16,296			$	143,966
2003
	January			$	66,876			$	29,635			$	8,745			$	1,390			$	106,646			$	42,858			$	63,788			$	2,268			$	22,113
	February				59,693				24,746				8,280				466				93,185				27,530				65,655				2,319				25,631
	March				58,401				24,211				9,411				719				92,742				18,252				74,490				1,439				25,652
		Qtr 1		$	184,970			$	78,593			$	26,436			$	2,574			$	292,573			$	88,640			$	203,933			$	6,026			$	73,396
	YTD			$	184,970			$	78,593			$	26,436			$	2,574			$	292,573			$	88,640			$	203,933			$	6,026			$	73,396

---

		1/ Long-term Mortgage-Backed Securities have contractual maturities greater than 15 years.
		2/ Intermediate-term Mortgage-Backed Securities have contractual maturities equal to or less than 15 years.

- 10 -

---

 

Mortgage-Backed Securities Outstanding
March 2003

(Dollars in millions)

		MBS
		Single-family
																										MBS in
		Long -				Inter-				Conventional												Fannie Mae's								Outstanding
		Term 1/				mediate 2/				ARMS				Multifamily				Total				Portfolio 3/								MBS 3/				REMICs
1997		$	448,824			$	168,132			$	71,025			$	21,601			$	709,582							$	130,444			$	579,138			$	328,596
1998			557,983				187,221				59,001				30,313				834,518								197,375				637,143				311,426
1999			670,555				200,488				53,898				35,942				960,883								281,714				679,169				293,563
2000			758,869				189,362				68,167				41,352				1,057,750								351,066				706,684				291,798
2001			938,139				232,092				67,894				52,226				1,290,351								431,484				858,867				346,143
2002
Qtr 1			974,360				254,908				72,106				54,030				1,355,404								459,094				896,310				352,159
Qtr 2			1,000,662				271,030				77,750				55,152				1,404,594								459,097				945,497				347,566
Qtr 3			1,031,062				285,339				86,528				56,016				1,458,945								468,552				990,393				346,538
Qtr 4			1,054,165				321,290				103,155				59,677				1,538,287								508,831				1,029,456				346,703
2003
Qtr 1			1,087,299				371,642				117,554				60,979				1,637,474	4/							529,954				1,107,520	4/			369,032

---

		1/ Long-term Mortgage-Backed Securities have contractual maturities greater than 15 years.
		2/ Intermediate-term Mortgage-Backed Securities have contractual maturities equal to or less than 15 years.
		3/ Based on unpaid principal balances effective March 31, 2002.
		4/ Includes $1,696 million of multifamily whole loan REMIC’s and $30,403 million of single-family whole loan REMIC’s and $8,293 million of private label securities guaranteed by Fannie Mae.

- 11 -

---

 

Single-Family REO Acquisitions and Preforeclosure Sales
March 2003

Property State		1Q 2003				4Q 2002				3Q 2002				2Q 2002				1Q 2002				4Q 2001				3Q 2001				2Q 2001				1Q 2001
Michigan			507				419				352				292				240				171				159				155				112
Texas			425				364				312				322				264				234				173				190				262
Ohio			366				301				277				234				186				201				184				187				146
Georgia			344				310				218				244				184				161				130				126				141
North Carolina			308				233				216				188				151				126				72				107				78
Florida			270				279				322				297				291				308				326				366				368
Indiana			238				244				219				165				184				134				92				101				94
Tennessee			225				174				158				125				117				76				69				63				80
Pennsylvania			218				237				240				242				197				211				238				196				174
Washington			208				202				197				199				154				168				132				122				130
Illinois			202				250				213				173				197				166				149				127				157
Missouri			191				137				130				134				109				104				68				69				65
Utah			183				178				162				145				137				125				74				64				81
Alabama			164				126				110				119				107				95				75				68				45
Oregon			161				128				140				130				112				96				98				91				83
Colorado			155				142				126				87				70				43				39				59				44
South Carolina			149				144				127				109				101				87				52				58				51
Arizona			130				125				129				107				104				84				65				67				67
Maryland			116				90				114				137				135				106				90				117				115
New York			108				151				130				115				134				146				103				150				164
Other states			1,250				1,181				1,168				1,124				1,163				1,050				1,047				1,083				1,136
Total REO’s Acquired			5,918				5,415				5,060				4,688				4,337				3,892				3,435				3,566				3,593
Preforeclosure Sales			356				373				370				386				281				259				354				304				265

- 12 -

---

 

Single-Family REO Inventory
March 2003

Property State		1Q 2003				4Q 2002				3Q 2002				2Q 2002				1Q 2002				4Q 2001				3Q 2001				2Q 2001				1Q 2001
Michigan			1,351				1,084				878				701				598				501				427				366				313
Ohio			826				666				560				465				409				423				386				354				298
Texas			663				616				561				509				442				385				322				360				398
North Carolina			595				477				430				341				264				210				171				179				156
Georgia			554				477				374				364				314				269				233				233				207
Pennsylvania			432				440				438				398				374				380				383				344				369
Florida			398				410				413				377				408				415				442				446				441
Indiana			379				338				322				254				252				182				141				141				138
Illinois			363				379				310				255				261				254				237				223				260
Tennessee			355				293				271				220				184				145				137				126				112
Maryland			332				335				367				341				328				311				285				291				283
Washington			326				317				295				264				245				240				199				197				219
Colorado			311				252				203				142				107				77				97				104				86
South Carolina			301				278				246				212				173				138				104				103				101
Missouri			280				247				247				207				201				157				113				106				110
Utah			279				267				219				198				199				171				112				115				127
Alabama			278				219				210				217				205				178				135				114				105
Oregon			240				226				222				196				174				171				154				137				136
New York			221				244				236				228				264				290				280				315				360
Minnesota			197				163				144				135				131				113				123				121				93
Other states			2,362				2,247				2,183				2,015				2,101				2,063				2,034				2,083				2,205
Total REO Inventory			11,043				9,975				9,129				8,039				7,634				7,073				6,515				6,458				6,517

- 13 -

---

 

Portfolio and Mortgage-Backed Securities Outstanding by State
As of March 31, 2003

(Dollars in millions)

		Portfolio								Mortgage-Backed Securities								Total
		Number of								Number of								Number of
		Units 1/				Amount 2/				Units 1/				Amount 2/				Units				Amount
Alabama			29,309			$	1,667				187,518			$	16,190				216,827			$	17,857
Alaska			17,868				1,356				15,546				1,794				33,414				3,150
Arizona			50,891				3,285				415,457				40,495				466,348				43,780
Arkansas			27,861				1,851				87,652				7,057				115,513				8,908
California			360,691				28,524				2,544,829				317,787				2,905,520				346,311
Colorado			50,901				3,562				418,175				51,698				469,076				55,260
Connecticut			38,661				3,025				188,707				21,543				227,368				24,568
Delaware			9,128				691				47,839				5,107				56,967				5,798
Dist. of Columbia			21,131				799				42,108				3,638				63,239				4,437
Florida			167,605				10,539				1,092,390				97,790				1,259,995				108,329
Georgia			77,724				4,959				513,155				52,432				590,879				57,391
Guam			423				40				1,082				89				1,505				129
Hawaii			19,272				2,299				77,997				12,672				97,269				14,971
Idaho			11,168				688				72,407				6,746				83,575				7,434
Illinois			148,092				11,220				645,839				70,403				793,931				81,623
Indiana			62,873				3,827				311,324				24,724				374,197				28,551
Iowa			43,881				2,796				93,791				7,397				137,672				10,193
Kansas			23,853				1,567				106,571				9,208				130,424				10,775
Kentucky			21,519				1,198				134,672				11,416				156,191				12,614
Louisiana			53,243				3,267				197,340				15,280				250,583				18,547
Maine			16,660				1,058				53,362				4,737				70,022				5,795
Maryland			64,427				3,921				399,448				41,191				463,875				45,112
Massachusetts			91,909				6,298				446,049				53,571				537,958				59,869
Michigan			108,648				7,118				651,884				63,595				760,532				70,713
Minnesota			58,363				4,186				296,881				30,977				355,244				35,163
Mississippi			25,065				1,657				91,504				7,047				116,569				8,704
Missouri			63,122				3,581				279,600				24,556				342,722				28,137

[Additional columns below]

[Continued from above table, first column(s) repeated]

		Portfolio								Mortgage-Backed Securities								Total 4/
		Number of								Number of								Number of
		Units 1/				Amount 2/				Units 1/				Amount 2/				Units				Amount
Montana			9,363				709				38,479				3,609				47,842				4,318
Nebraska			27,853				1,924				69,409				5,340				97,262				7,264
Nevada			30,612				1,785				190,627				19,745				221,239				21,530
New Hampshire			17,588				1,204				86,574				9,361				104,162				10,565
New Jersey			78,771				6,995				496,905				57,462				575,676				64,457
New Mexico			22,258				1,546				81,833				7,509				104,091				9,055
New York			207,996				12,808				864,235				79,460				1,072,231				92,268
North Carolina			53,131				3,671				406,021				39,718				459,152				43,389
North Dakota			5,907				305				17,656				1,209				23,563				1,514
Ohio			152,914				9,747				592,115				49,319				745,029				59,066
Oklahoma			41,043				2,411				133,692				9,306				174,735				11,717
Oregon			37,509				2,902				250,850				26,448				288,359				29,350
Pennsylvania			109,290				7,292				529,381				45,899				638,671				53,191
Puerto Rico			20,259				1,522				66,865				5,243				87,124				6,765
Rhode Island			14,796				966				69,173				6,614				83,969				7,580
South Carolina			27,840				1,966				181,480				16,447				209,320				18,413
South Dakota			12,772				834				21,915				1,686				34,687				2,520
Tennessee			39,494				2,338				251,306				22,829				290,800				25,167
Texas			226,619				13,280				996,664				76,476				1,223,283				89,756
Utah			27,900				1,876				154,503				16,957				182,403				18,833
Vermont			10,593				633				27,359				2,639				37,952				3,272
Virgin Islands			923				56				1,569				124				2,492				180
Virginia			82,730				5,480				405,051				47,092				487,781				52,572
Washington			72,266				6,018				472,647				54,397				544,913				60,415
West Virginia			13,963				813				31,938				2,581				45,901				3,394
Wisconsin			120,521				9,406				212,871				20,834				333,392				30,240
Wyoming			8,695				598				19,422				1,737				28,117				2,335
Total 3/			3,137,894			$	214,064				16,083,667			$	1,629,181				19,221,561			$	1,843,245

---

		1/ Represents individual units financed by conventional and government single-family and multifamily mortgages.
		2/ Amount represents gross unpaid principal balances.
		3/ Fannie Mae MBS in portfolio totaling $529,954 million are included in MBS, but excluded from portfolio statistics.
		4/ Excludes $80.2 billion of non-Fannie Mae securities for which information is not readily available.

- 14 -

---

 

Conventional Single-Family Serious Deliquencies
March 31, 2003

		Credit Enhanced																Non-Credit Enhanced																Total
					Total #					Serious Delinquencies 1/												Total #				Serious Delinquencies 1/												Total #				Serious Delinquencies 1/
					of Loans					Total #				%				of Loans								Total #				%				of Loans								Total #				%
		Outstanding								of Loans				Delinquent				Outstanding								of Loans				Delinquent				Outstanding								of Loans				Delinquent
Northeast
	1st Qtr 2002						627,163				7,861				1.25	%							1,845,047				7,153				0.39	%							2,472,210				15,014				0.61	%
	2nd Qtr 2002						622,805				7,525				1.21	%							1,897,291				6,487				0.34	%							2,520,096				14,012				0.56	%
	3rd Qtr 2002						616,765				7,806				1.27	%							1,922,408				6,618				0.34	%							2,539,173				14,424				0.57	%
	4th Qtr 2002						585,261				8,403				1.44	%							1,957,555				7,023				0.36	%							2,542,816				15,426				0.61	%
	1st Qtr 2003						560,717				8,695				1.55	%							2,028,468				7,182				0.35	%							2,589,185				15,877				0.61	%
Southeast
	1st Qtr 2002						1,031,681				11,187				1.08	%							2,004,148				6,326				0.32	%							3,035,829				17,513				0.58	%
	2nd Qtr 2002						1,044,686				10,897				1.04	%							2,068,902				6,015				0.29	%							3,113,588				16,912				0.54	%
	3rd Qtr 2002						1,045,852				12,056				1.15	%							2,097,101				6,350				0.30	%							3,142,953				18,406				0.59	%
	4th Qtr 2002						1,025,978				13,759				1.34	%							2,206,143				7,269				0.33	%							3,232,121				21,028				0.65	%
	1st Qtr 2003						1,035,250				13,814				1.33	%							2,318,335				7,394				0.32	%							3,353,585				21,208				0.63	%
Midwest
	1st Qtr 2002						834,556				9,781				1.17	%							2,019,746				6,387				0.32	%							2,854,302				16,168				0.57	%
	2nd Qtr 2002						832,702				9,715				1.17	%							2,071,369				6,043				0.29	%							2,904,071				15,758				0.54	%
	3rd Qtr 2002						807,763				10,789				1.34	%							2,065,326				6,660				0.32	%							2,873,089				17,449				0.61	%
	4th Qtr 2002						753,756				11,936				1.58	%							2,095,623				7,614				0.36	%							2,849,379				19,550				0.69	%
	1st Qtr 2003						726,495				12,065				1.66	%							2,182,183				7,834				0.36	%							2,908,678				19,899				0.68	%
Southwest
	1st Qtr 2002						783,375				7,287				0.93	%							1,474,545				3,874				0.26	%							2,257,920				11,161				0.49	%
	2nd Qtr 2002						786,997				7,008				0.89	%							1,520,181				3,803				0.25	%							2,307,178				10,811				0.47	%
	3rd Qtr 2002						781,551				8,036				1.03	%							1,544,203				4,152				0.27	%							2,325,754				12,188				0.52	%
	4th Qtr 2002						762,556				8,976				1.18	%							1,621,736				4,726				0.29	%							2,384,292				13,702				0.57	%
	1st Qtr 2003						757,485				9,139				1.21	%							1,711,293				5,008				0.29	%							2,468,778				14,147				0.57	%
West
	1st Qtr 2002						680,084				5,880				0.86	%							2,165,363				5,299				0.24	%							2,845,447				11,179				0.39	%
	2nd Qtr 2002						683,968				5,206				0.76	%							2,207,239				4,473				0.20	%							2,891,207				9,679				0.33	%
	3rd Qtr 2002						666,922				5,380				0.81	%							2,232,540				4,567				0.20	%							2,899,462				9,947				0.34	%
	4th Qtr 2002						632,037				5,544				0.88	%							2,335,071				4,928				0.21	%							2,967,108				10,472				0.35	%
	1st Qtr 2003						616,243				5,650				0.92	%							2,461,966				4,738				0.19	%							3,078,209				10,388				0.34	%
Total
	1st Qtr 2002						3,956,859				41,996				1.06	%							9,508,849				29,039				0.31	%							13,465,708				71,035				0.53	%
	2nd Qtr 2002						3,971,158				40,351				1.02	%							9,764,982				26,821				0.27	%							13,736,140				67,172				0.49	%
	3rd Qtr 2002						3,918,853				44,067				1.12	%							9,861,578				28,347				0.29	%							13,780,431				72,414				0.53	%
	4th Qtr 2002						3,759,588				48,618				1.29	%							10,216,128				31,560				0.31	%							13,975,716				80,178				0.57	%
	1st Qtr 2003						3,696,190				49,363				1.34	%							10,702,245				32,156				0.30	%							14,398,435				81,519				0.57	%

---

---

1/ Serious delinquencies include all conventional loans that are three or more months delinquent or in foreclosure and excludes loans with full or substantial recourse to lenders or loans covered by significant supplemental pool mortgage insurance.

- 15 -

---

 

Total Multifamily Serious Delinquencies and REO Inventory
March 31, 2003

     (Dollars in millions)

			Loans Serviced								Serious Delinquencies 1/																				REO Inventory
			# of								# of												%								# of
			Loans				UPB				Loans								UPB				Delinquent								Loans								UPB
Northeast
	1st Qtr 2002			3,367				13,827.8								7				121.7	2/			0.88	%											—				—
	2nd Qtr 2002			3,523				14,479.0								5				4.7				0.03	%											—				—
	3rd Qtr 2002			3,627				14,966.9								2				2.2				0.01	%											—				—
	4th Qtr 2002			4,127				16,547.0								2				3.6				0.02	%											—				—
	1st Qtr 2003			4,324				17,568.6								2				3.2				0.02	%											—				—
Southeast
	1st Qtr 2002			2,972				18,172.9								1				0.2				0.00	%											—				—
	2nd Qtr 2002			3,031				18,826.6								3				6.3				0.03	%											—				—
	3rd Qtr 2002			3,108				19,256.2								7				6.4				0.03	%											1				4.0
	4th Qtr 2002			3,196				20,280.7								3				11.9				0.06	%											1				4.0
	1st Qtr 2003			3,272				20,915.2								4				3.2				0.02	%											2				12.7
																								.
Midwest
	1st Qtr 2002			2,696				8,585.9								11				53.0				0.62	%											—				—
	2nd Qtr 2002			2,676				8,655.8								10				62.7				0.72	%											—				—
	3rd Qtr 2002			2,680				8,825.8								6				46.2				0.52	%											1				2.9
	4th Qtr 2002			2,796				9,090.9								10				7.6				0.08	%											1				2.9
	1st Qtr 2003			2,787				9,345.9								10				41.5				0.44	%											1				2.9

[Additional columns below]

[Continued from above table, first column(s) repeated]

			Loans Serviced												Serious Delinquencies 1/																				REO Inventory
			# of												# of												%								# of
			Loans								UPB				Loans								UPB				Delinquent								Loans				UPB
Southwest
	1st Qtr 2002							2,742				12,031.0								4				11.5				0.10	%							—				—
	2nd Qtr 2002							2,784				12,209.5								8				15.0				0.12	%							—				—
	3rd Qtr 2002							2,816				12,460.7								6				6.6				0.05	%							—				—
	4th Qtr 2002							3,171				13,194.7								4				15.7				0.12	%							—				—
	1st Qtr 2003							3,173				13,228.8								7				26.4				0.20	%
West
	1st Qtr 2002							13,830				27,284.4								20				8.2				0.03	%							—				—
	2nd Qtr 2002							13,498				28,033.1								7				6.4				0.02	%							—				—
	3rd Qtr 2002							13,389				28,655.4								16				9.0				0.03	%							1				2.3
	4th Qtr 2002							16,018				31,328.8								11				6.9				0.02	%							1				2.3
	1st Qtr 2003							15,686				31,870.1								4				8.3				0.03	%							1				2.3
Total
	1st Qtr 2002							25,607				79,902								43				194.6	2/			0.24	%							—				—
	2nd Qtr 2002							25,512				82,204								33				95.1				0.12	%							—				—
	3rd Qtr 2002							25,620				84,165								37				70.4				0.08	%							3				9.2
	4th Qtr 2002							29,308				90,442								30				45.7				0.05	%							3				9.2
	1st Qtr 2003							29,242				92,929								27				82.6				0.09	%							4				17.9

---

		1/ Includes loans which are two or more months delinquent based on the dollar amount of such loans in the portfolio and underlying MBS.
		2/ Included in the Multifamily serious delinquency rate is 0.15% (15 basis points) related to two New York City loans totaling $118m that were affected by the World Trade Center disaster.

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