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): June 12, 2003

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

Fannie Mae

Federally chartered corporation (State or other jurisdiction of incorporation)		0-50231 (Commission File Number)		52-0883107 (IRS Employer Identification Number)

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

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

 

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Item 5. Other Events.

     On June 12, 2003, Fannie Mae (formally, the Federal National Mortgage Association), issued its monthly financial summary release for the month of May 2003, a copy of which is filed as Exhibit 99.1 to this report, and which 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.

		FEDERAL NATIONAL MORTGAGE ASSOCIATION
		By		/s/ Leanne G. Spencer Leanne G. Spencer Senior Vice President and Controller
Date: June 12, 2003

 

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EXHIBIT INDEX

The following is a list of the Exhibits furnished herewith.

Exhibit Number		Description of Exhibit
99.1		Monthly summary release issued by Fannie Mae on June 12, 2003.

 

 

Fannie Mae
3900 Wisconsin Avenue, NW
Washington, DC 20016-2892

Monthly Summary

Published Monthly by Fannie Mae’s
Office of Investor Relations

MAY 2003

Fannie Mae’s summary of monthly business volumes, delinquency rates, and interest rate risk measures reflect the company’s continued record of disciplined growth.

HIGHLIGHTS FOR MAY INCLUDE:

•		Total business volume was a strong $129.0 billion, the second highest volume on record.
•		Retained commitments surged to a record $73.8 billion from $41.4 billion in April. Outstanding portfolio commitments rose to their third highest level at $103.8 billion from $72.0 billion at the end of April.
•		Lender-originated MBS issuance of $108.4 billion in May is the third month this year that volume exceeded $100 billion.
•		Portfolio purchases rose slightly to $43.7 billion while liquidations rose to $44.2 billion. These two factors led to the mortgage portfolio declining at a -3.4 percent annualized rate.
•		The conventional single-family delinquency rate fell one basis point to 0.56 percent. The multifamily delinquency rate remained unchanged at 0.09 percent.

MORTGAGE MARKET HIGHLIGHTS:

•		Mortgage market indicators continue to remain strong. Residential mortgage debt outstanding grew at an annualized rate of 11.5 percent in the first quarter 2003.
•		Fannie Mae estimates total single-family originations for 2003 will be about $3.7 trillion.

 

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BUSINESS BALANCES AND GROWTH ($ in Millions)
		Mortgage Portfolio, Gross								Outstanding MBS 2/								Book of Business
		End Balance				Growth Rate 3/				End Balance				Growth Rate 3/				End Balance				Growth Rate 3/
June 2002		$	740,744				-0.5	%		$	945,497				29.4	%		$	1,686,241				15.2	%
July 2002			743,025				3.8	%			960,114				20.2	%			1,703,140				12.7	%
August 2002			746,101				5.1	%			974,021				18.8	%			1,720,122				12.6	%
September 2002			751,423				8.9	%			990,393				22.1	%			1,741,816				16.2	%
October 2002			751,347				-0.1	%			1,018,303				39.6	%			1,769,650				21.0	%
November 2002			760,759				16.1	%			1,019,031				.9	%			1,779,790				7.1	%
December 2002			790,800				59.2	%			1,029,456				13.0	%			1,820,256				31.0	%
YTD 2002		$	790,800				11.9	%		$	1,029,456				19.9	%		$	1,820,256				16.4	%
January 2003		$	810,609				34.6	%		$	1,047,903				23.8	%		$	1,858,512				28.3	%
February 2003			816,747				9.5	%			1,073,564				33.7	%			1,890,311				22.6	%
March 2003			815,964				-1.1	%			1,107,520				45.3	%			1,923,484				23.2	%
April 2003			817,894				2.9	%			1,156,205				67.6	%			1,974,099				36.6	%
May 2003			815,560				-3.4	%			1,186,128				35.9	%			2,001,688				18.1	%
YTD 2003		$	815,560				7.7	%		$	1,186,128				40.5	%		$	2,001,688				25.6	%

BUSINESS VOLUMES ($ in Millions)
		MBS
										Total				Fannie Mae				MBS Issues
		Single-family				Multifamily				Lender-originated				MBS				Acquired				Portfolio				Business
		Issues				Issues				Issues 4/				Purchases 5/				by Others				Purchases				Volume
June 2002		$	42,641			$	579			$	43,220			$	8,231			$	34,989			$	16,310			$	51,299
July 2002			41,523				826				42,349				10,618				31,731				17,586				49,317
August 2002			49,941				548				50,489				14,447				36,042				23,123				59,165
September 2002			63,426				597				64,023				19,204				44,819				33,518				78,338
October 2002			80,624				699				81,323				19,043				62,280				32,853				95,132
November 2002			80,375				951				81,326				33,535				47,791				47,807				95,599
December 2002			94,054				3,777				97,831				51,947				45,884				67,891				113,775
YTD 2002		$	710,961			$	12,336			$	723,299			$	245,039			$	478,260			$	370,641			$	848,901
January 2003		$	105,256			$	1,390			$	106,646			$	42,858			$	63,788			$	57,281			$	121,069
February 2003			92,720				465				93,185				27,530				65,655				40,420				106,075
March 2003			92,023				719				92,742				18,252				74,490				34,304				108,794
April 2003			120,976				667				121,643				25,648				95,995				43,028				139,024
May 2003			107,447				989				108,436				23,180				85,256				43,749				129,005
YTD 2003		$	518,422			$	4,230			$	522,652			$	137,468			$	385,184			$	218,782			$	603,966

MORTGAGE PORTFOLIO COMMITMENTS, PURCHASES, AND SALES ($ in Millions)
						Purchases
																						Mortgage
		Retained				Single-								Total								Portfolio
		Commitments				family				Multifamily				Purchases				Net Yield 6/				Sales
June 2002		$	22,165			$	15,897			$	414			$	16,310				6.52	%		$	2,470
July 2002			29,724				17,173				413				17,586				6.27	%			51
August 2002			41,263				22,650				473				23,123				5.97	%			2
September 2002			57,039				33,112				406				33,518				5.75	%			1,383
October 2002			67,342				32,297				556				32,853				5.61	%			951
November 2002			52,766				47,131				676				47,807				5.52	%			142
December 2002			29,214				66,703				1,188				67,891				5.42	%			293
YTD 2002		$	388,059			$	363,149			$	7,492			$	370,641				5.92	%		$	9,582
January 2003		$	25,097			$	56,402			$	879			$	57,281				5.44	%		$	60
February 2003			51,238				39,814				606				40,420				5.32	%			780
March 2003			39,548				33,621				683				34,304				5.20	%			431
April 2003			41,427				42,395				633				43,028				5.20	%			646
May 2003			73,784				42,795				954				43,749				5.12	%			1,894
YTD 2003		$	231,094			$	215,028			$	3,754			$	218,782				5.27	%		$	3,811

1/ Excludes mark-to-market adjustments, deferred balances and allowance for losses. Includes $519 billion of Fannie Mae MBS as of May 31, 2003.
2/ MBS held by investors other than Fannie Mae’s portfolio.
3/ Growth rates are compounded.
4/ Excludes MBS issued from Fannie Mae’s portfolio, which was $391 million in May 2003.
5/ Included in total portfolio purchases.
6/ Yields shown on a taxable-equivalent basis.

 

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LIQUIDATIONS ($ in Millions)																						DELINQUENCY RATES
		Mortgage Portfolio								Outstanding MBS												Single-family Conventional 1/
		Liquidations								Liquidations												Non-Credit				Credit								Multifamily
		Amount				Annual Rate				Amount				Annual Rate								Enhancement 2/				Enhancement 3/				Total 4/				Total 5/
June 2002		$	14,193				22.99	%		$	17,383				22.30	%							0.27	%			1.02	%			0.49	%			0.12	%
July 2002			15,265				24.69	%			17,153				21.60	%							0.27	%			1.04	%			0.49	%			0.10	%
August 2002			20,059				32.33	%			22,137				21.47	%							0.28	%			1.07	%			0.51	%			0.10	%
September 2002			26,824				42.99	%			29,797				36.40	%							0.29	%			1.12	%			0.53	%			0.08	%
October 2002			31,990				51.09	%			35,321				42.20	%							0.29	%			1.16	%			0.53	%			0.08	%
November 2002			38,265				60.73	%			47,184				55.58	%							0.30	%			1.24	%			0.56	%			0.10	%
December 2002			37,569				58.11	%			42,714				50.04	%							0.31	%			1.29	%			0.57	%			0.05	%
YTD 2002		$	277,419				37.35	%		$	324,177				34.37	%
January 2003		$	37,423				56.09	%		$	45,343				52.38	%							0.32	%			1.34	%			0.59	%			0.03	%
February 2003			33,517				49.43	%			40,771				46.12	%							0.31	%			1.36	%			0.59	%			0.06	%
March 2003			34,668				50.96	%			40,915				45.02	%							0.30	%			1.34	%			0.57	%			0.09	%
April 2003			40,465				59.44	%			47,956				50.84	%							0.29	%			1.34	%			0.56	%			0.09	%
May 2003			44,203				64.95	%			57,226				58.64	%
YTD 2003		$	190,275				56.29	%		$	232,211				50.66	%

AVERAGE INVESTMENT BALANCES ($ in Millions)
		Net				Liquid				Total Net
		Mortgages				Investments				Investments
June 2002		$	735,741			$	69,478			$	805,219
July 2002			736,718				67,460				804,178
August 2002			737,600				62,434				800,034
September 2002			742,119				63,856				805,975
October 2002			746,529				64,923				811,452
November 2002			749,432				76,959				826,391
December 2002			773,717				85,206				858,923
YTD 2002		$	735,943			$	68,658			$	804,601
January 2003		$	794,278			$	75,849			$	870,127
February 2003			808,377				63,706				872,083
March 2003			811,757				61,851				873,608
April 2003			809,928				75,874				885,804
May 2003			806,511				83,895				890,406
YTD 2003		$	806,170			$	72,236			$	878,406

INTEREST RATE RISK DISCLOSURES
						Rate Level Shock (50bp) 7/								Rate Slope Shock (25bp) 7/
		Effective				1 Year Portfolio				4 Year Portfolio				1 Year Portfolio				4 Year Portfolio
		Duration Gap 6/				Net Interest				Net Interest				Net Interest				Net Interest
		(in months)				Income at Risk				Income at Risk				Income at Risk				Income at Risk
June 2002			-4				1.2	%			2.4	%			3.0	%			5.7	%
July 2002			-9				3.8	%			5.1	%			4.5	%			6.6	%
August 2002			-14				6.5	%			6.7	%			6.7	%			8.2	%
September 2002			-10				4.4	%			3.9	%			5.3	%			6.4	%
October 2002			-6				2.7	%			2.0	%			6.0	%			7.5	%
November 2002			2				6.3	%			4.9	%			3.5	%			5.9	%
December 2002			-5				0.6	%			1.6	%			4.7	%			6.6	%
January 2003			-3				2.9	%			3.8	%			3.5	%			5.7	%
February 2003			-5				3.6	%			1.3	%			4.9	%			6.8	%
March 2003			-2				1.7	%			2.8	%			4.4	%			6.7	%
April 2003			-2				2.1	%			2.5	%			4.6	%			6.5	%
May 2003			-5				0.7	%			2.2	%			5.3	%			7.1	%

1/ Includes conventional loans three or more months delinquent or in foreclosure process as a percent of the number of loans.
2/ Loans without primary mortgage insurance or any credit enhancements.
3/ Loans with primary mortgage insurance and other credit enhancements.
4/ Total of single-family non-credit enhanced and credit enhanced loans.
5/ Includes loans two or more months delinquent as a percent of loan dollars and includes the total credit book of business.
6/ Effective January 2003, the duration gap is a weighted average for the month. Prior to 2003, the duration gap was calculated on the last day of the month.
7/ Expresses projected core net interest income under the more adverse of the interest rate and yield curve scenarios as a percentage of projected net interest income without the rate shocks.

The information presented in this report is unaudited and includes, in the opinion of management, all adjustments (consisting of normally recurring accruals) necessary for a fair presentation. The data should be read in conjunction with audited financial statements and notes to financial statements that are available from the corporation. For more information regarding Fannie Mae, or for a more detailed quarterly report on Fannie Mae’s activity, please visit www.fanniemae.com or contact us at (202) 752-7115.

 

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