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): November 21, 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 9. Regulation FD Disclosure.

     On November 21, 2003, Fannie Mae (formally, the Federal National Mortgage Association), issues its quarterly business activity supplement for the third quarter of 2003, a copy of which is furnished as Exhibit 99.1 to this report, and which is incorporated herein by reference.

     This information, including the exhibits attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any disclosure document of the Company, except as shall be expressly set forth by specific reference in such document.

 

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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: November 21, 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 third quarter of 2003, issued by Fannie Mae on November 21, 2003.

 

 

Business Activity Supplement

Third Quarter 2003

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Business Activity Supplement
Third 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 conditions 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 the 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 September 30, 2003, also filed with the SEC.

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PORTFOLIO COMMITMENT ACTIVITY
September 2003

(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 1998 1999 2000 2001			$4,693 5,075 24,065 4,754 4,313			$	55,884 156,623 142,529 123,504 261,240			$	6,043 28,237 12,609 10,980 28,361			$	2,380 2,017 6,129 19,006 3,636			$	965 1,843 2,616 5,445 6,534			$	69,965 193,795 187,948 163,689 304,084			$	1,298 1,880 5,900 11,786 7,586			$	68,667 191,915 182,048 151,903 296,498
2002
Qtr 1 Qtr 2 Qtr 3 Qtr 4			$664 5,280 380 634			$	38,052 48,253 105,185 123,929			$	12,845 7,246 21,685 23,842			$	979 971 1,725 1,373			$	1,665 1,458 1,421 2,740			$	54,205 63,208 130,396 152,518			$	3,422 3,280 2,370 3,196			$	50,783 59,928 128,026 149,322
Total			$6,958			$	315,419			$	65,618			$	5,048			$	7,284			$	400,327			$	12,268			$	388,059
2003
January February March			$74 137 441			$	20,144 43,868 32,633			$	6,442 7,244 7,407			$	528 644 791			$	626 586 733			$	27,814 52,479 42,005			$	2,717 1,241 2,457			$	25,097 51,238 39,548
Qtr 1			652				96,645				21,093				1,963				1,945				122,298				6,415				115,883
April May June			382 250 406				35,989 53,727 49,137				4,428 19,133 26,255				985 1,573 1,916				1,122 886 1,458				42,906 75,569 79,172				1,479 1,785 3,657				41,427 73,784 75,515
Qtr 2			1,038				138,853				49,816				4,474				3,466				197,647				6,921				190,726
July August September			577 219 517				60,145 36,683 25,162				15,164 6,798 2,769				1,161 1,780 3,023				2,547 956 1,230				79,594 46,436 32,701				1,915 3,085 4,740				77,679 43,351 27,961
Qtr 3			1,313				121,990				24,731				5,964				4,733				158,731				9,740				148,991
YTD			$3,003			$	357,488			$	95,640			$	12,401			$	10,144			$	478,676			$	23,076			$	455,600

		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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MORTGAGE PURCHASES
September 2003

(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
April					593				34,822				5,710				1,270				633				43,028				5.20	%			25,648
May					353				35,110				6,042				1,291				953				43,749				5.12	%			23,180
June					547				32,272				6,152				1,335				877				41,183				4.96	%			21,655
	Qtr 2				1,493				102,204				17,904				3,896				2,463				127,960				5.09	%			70,483
July					686				61,487				6,910				1,162				2,201				72,446				4.86	%			48,266
August					608				60,440				15,761				4,447				1,401				82,657				4.83	%			54,295
September					558				73,908				17,768				5,460				1,111				98,805				4.85	%			73,505
	Qtr 3				1,852				195,835				40,439				11,069				4,713				253,908				4.85	%			176,066
		YTD		$	4,273			$	403,823			$	77,913			$	18,520			$	9,344			$	513,873				5.03	%		$	335,189

		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/
SEPTEMBER 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
Qtr 2			545,198				371,678				402,875				238,145				128,244				53,774				29,844				8,700				5,725				5,604				1,789,787
Qtr 3			811,188				329,429				317,796				185,905				106,860				45,544				25,865				7,686				5,046				4,964				1,840,283

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
SEPTEMBER 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	%
Qtr 2			896				125,050				125,946				6.45	%			61.78	%			5,425				5.48	%			131,371				6.41	%
Qtr 3			1,003				146,772				147,775				6.20	%			68.96	%			1,477				2.69	%			149,252				6.17	%
YTD			$2,705			$	376,624			$	379,329				6.40	%			60.96	%		$	8,173				5.01	%		$	387,502				6.37	%

1/ Annualized

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DEBT SUMMARY STATISTICS
As of September 30, 2003

(Dollars in millions)
													Quarter Ended
					9/30/2003				6/30/2003				3/31/2003				12/31/2002				9/30/2002
DEBT OUTSTANDING
Effective short-term debt, redemption value 1/					$	274,362			$	294,432			$	173,243			$	192,702			$	137,234
	Cost					1.22	%			1.28	%			1.36	%			1.52	%			1.86	%
Effective long-term debt, redemption value 1/						693,719				579,676				693,891				651,827				657,246
	Cost					5.33	%			5.57	%			5.20	%			5.48	%			5.64	%
		Foreign debt adjustment and other basis adjustments				9,747				12,064				8,945				8,735				8,050
Total Redemption Value 2/					$	977,828			$	886,172			$	876,079			$	853,264			$	802,530
Cost						4.16	%			4.13	%			4.60	%			4.81	%			5.18	%
OTHER FUNDING ACTIVITIES AND STATISTICS
Option embedded debt instruments outstanding					$	656,245			$	618,414			$	590,819			$	601,451			$	514,421
Option embedded debt instruments as a % of net mortgage portfolio outstanding						71.2	%			75.4	%			71.8	%			75.4	%			67.9	%
LONG TERM DEBT:
Debt called during period 3/					$	41,175			$	61,649			$	42,476			$	36,806			$	24,829
Debt repurchased during period						6,807				6,952				3,614				1,044				846
Debt matured during period						11,370				24,503				23,165				24,814				11,273
Total Long Term Debt Redeemed During Period					$	59,352			$	93,104			$	69,255			$	62,664			$	36,948
SHORT TERM DEBT:
Debt called during period 3/					$	100			$	1,250			$	1,300			$	4,350			$	1,125
Debt matured/paydown during period						500,720				585,509				557,820				372,495				428,702
Total Short Term Debt Redeemed During Period					$	500,820			$	586,759			$	559,120			$	376,845			$	429,827
Total Debt Redeemed During Period					$	560,172			$	679,863			$	628,375			$	439,509			$	466,775
Swaps retired before maturity during period					$	15,595			$	3,524			$	175			$	12,600			$	39,440
Swaps matured during period						61,753				30,244				4,525				16,870				8,500
Total Swaps Redeemed During Period					$	77,348			$	33,768			$	4,700			$	29,470			$	47,940

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.

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(Dollars in millions)

			SHORT-TERM DEBT 1/												LONG-TERM DEBT 2/
							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	%
April			$	193,666				35				1.13	%		$	35,089				49				2.73	%
May				190,705				37				1.14	%			19,223				58				3.05	%
June				223,968				41				1.00	%			24,078				60				2.40	%
	Qtr 2			608,339				38				1.09	%			78,390				55				2.70	%
July			$	197,256				45				0.91	%		$	42,925				44				2.13	%
August				159,315				57				0.97	%			35,728				39				2.33	%
September				180,165				47				0.98	%			38,649				42				2.61	%
	Qtr 3			536,736				50				0.95	%			117,302				42				2.35	%
	YTD		$	1,719,239				45				1.09	%		$	272,401				48				2.58	%

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. Beginning in the 2nd quarter 2003, the impact of debt swaps has been excluded.

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(Dollars in millions)

			SHORT-TERM DEBT 1/								LONG-TERM DEBT 2/
			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	%
April			$	204,147				1.22	%		$	27,766				4.30	%
May				177,570				1.21	%			30,141				3.70	%
June				205,042				1.16	%			35,197				3.48	%
	Qtr 2			586,759				1.20	%			93,104				3.80	%
July			$	201,435				0.97	%		$	20,681				3.23	%
August				153,692				1.02	%			20,853				3.59	%
September				145,693				0.93	%			17,818				3.87	%
	Qtr 3			500,820				0.98	%			59,352				3.55	%
	YTD		$	1,646,699				1.17	%		$	221,711				3.75	%

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. Beginning in the 2nd quarter 2003, the impact of debt swaps has been excluded.

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						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							—							$	8,570				4.60	%
2003		Qtr 4					17,841				5.19	%			83,843				4.44	%
		Total				$	17,841				5.19	%		$	83,843				4.44	%
2004		Qtr 1				$	18,461				5.91	%		$	71,968				4.94	%
		Qtr 2					27,539				4.60	%			74,528				4.71	%
		Qtr 3					19,320				6.27	%			57,169				5.22	%
		Qtr 4					13,911				3.88	%			20,514				4.95	%
		Total				$	79,231				5.00	%		$	224,179				4.93	%
2005		Qtr 1				$	21,805				3.74	%		$	34,000				4.83	%
		Qtr 2					15,356				3.44	%			19,823				4.28	%
		Qtr 3					16,946				4.93	%			22,583				5.89	%
		Qtr 4					23,263				4.17	%			15,406				5.28	%
		Total				$	77,370				4.07	%		$	91,812				5.05	%
2006							79,138				3.99	%			74,689				5.18	%
2007							49,184				5.68	%			40,750				6.65	%
2008 and beyond							390,955				5.47	%			169,876				5.29	%
Effective L/T Debt before Pay-Fixed Swaption Effect						$	693,719				5.10	%		$	693,719				5.10	%
Pay-Fixed Swaption Effect							—				0.23	%			—				0.23	%
Total Effective L/T Debt						$	693,719				5.33	%		$	693,719				5.33	%

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.

-8-

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Callable Debt, Callable Swaps, Receive-Fixed Swaptions
and Other Option Embedded Instruments
As of September 30, 2003

(Dollars in millions)

						Amount
Call Date		Year of Maturity				Outstanding				Average Cost
Callable debt, callable swaps and receive-fixed swaptions 1/:
Currently callable			2004-2028			$	8,570				4.60	%
2003			2003-2028				65,969				4.23	%
2004			2004-2033				155,525				4.71	%
2005			2005-2033				43,523				5.29	%
2006			2008-2031				33,690				5.68	%
2007			2011-2032				20,458				5.97	%
2008			2013-2033				9,510				5.38	%
2009 and later			2012-2030				12,970				6.81	%
Total							350,215				4.95	%
Pay-fixed swaptions							167,930
Caps							138,100
Total option-embedded financial instruments						$	656,245

1/ Excludes $51,181 million of callable debt which was swapped to variable rate debt and which is classified as effectively non-callable debt.

-9-

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Mortgage-Backed Securities Issued
September 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
April			$	76,311			$	32,986			$	11,679			$	666			$	121,643			$	25,648			$	95,993			$	829			$	33,890
May				67,735				29,925				9,788				988				108,436				23,180				85,257				391				20,915
June				74,117				33,000				14,341				1,449				122,906				21,655				101,251				1,583				16,783
	Qtr 2			218,162				95,911				35,807				3,104				352,985				70,483				282,502				2,802				71,588
July			$	75,253			$	33,187			$	10,106			$	1,420			$	119,966			$	48,268			$	71,698			$	2,047			$	24,466
August				72,367				27,607				8,891				796				109,661				54,294				55,367				2,212				25,223
September				74,693				28,191				13,222				4,192				120,297				73,504				46,793				2,551				10,105
	Qtr 3			222,312				88,985				32,218				6,408				349,924				176,066				173,858				6,810				59,794
YTD			$	625,410			$	263,489			$	94,461			$	12,086			$	995,483			$	335,190			$	660,293			$	15,638			$	204,778

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-

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Mortgage-Backed Securities Outstanding
September 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				529,954				1,107,520				369,032
Qtr 2			1,128,843				418,913				139,506				62,633				1,749,896				512,435				1,237,461				382,441
Qtr 3			1,136,259				444,794				152,801				67,675				1,801,528				590,449				1,211,079				371,763

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.

-11-

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SINGLE-FAMILY REO ACQUISITIONS AND PREFORECLOSURE SALES
September 2003

Property State		3Q 2003				2Q 2003				1Q 2003				4Q 2002				3Q 2002				2Q 2002				1Q 2002				4Q 2001				3Q 2001				2Q 2001				1Q 2001				4Q 2000				3Q 2000
Texas			543				467				425				364				312				322				264				234				173				190				262				203				195
Michigan			539				531				507				419				352				292				240				171				159				155				112				86				80
Georgia			518				462				344				310				218				244				184				161				130				126				141				103				90
North Carolina			442				454				308				233				216				188				151				126				72				107				78				65				59
Ohio			428				415				366				301				277				234				186				201				184				187				146				142				97
Indiana			378				282				238				244				219				165				184				134				92				101				94				108				88
Colorado			276				192				155				142				126				87				70				43				39				59				44				34				36
Florida			253				289				270				279				322				297				291				308				326				366				368				333				354
Pennsylvania			247				215				218				237				240				242				197				211				238				196				174				233				230
South Carolina			217				177				149				144				127				109				101				87				52				58				51				52				40
Illinois			215				192				202				250				213				173				197				166				149				127				157				149				138
Tennessee			200				219				225				174				158				125				117				76				69				63				80				43				47
Missouri			191				195				191				137				130				134				109				104				68				69				65				68				55
Washington			184				195				208				202				197				199				154				168				132				122				130				133				118
Utah			173				220				183				178				162				145				137				125				74				64				81				71				52
Arizona			167				151				130				125				129				107				104				84				65				67				67				88				67
Alabama			154				185				164				126				110				119				107				95				75				68				45				62				37
New York			130				123				108				151				130				115				134				146				103				150				164				177				165
Kentucky			118				101				95				58				33				45				33				28				43				20				15				18				15
Lousiana			112				126				100				87				79				80				77				57				45				47				45				42				47
Other sates			1,397				1,378				1,332				1,254				1,310				1,266				1,300				1,167				1,147				1,224				1,274				1,188				1,341
Total REOs acquired:			6,882				6,569				5,918				5,415				5,060				4,688				4,337				3,892				3,435				3,566				3,593				3,398				3,351
Preforeclosure sales:			439				444				356				373				370				386				281				259				354				304				265				318				340

-12-

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SINGLE-FAMILY REO INVENTORY
September 2003

Property State		3Q 2003				2Q 2003				1Q 2003				4Q 2002				3Q 2002				2Q 2002				1Q 2002				4Q 2001				3Q 2001				2Q 2001				1Q 2001				4Q 2000				3Q 2000
Michigan			1,676				1,564				1,351				1,084				878				701				598				501				427				366				313				281				249
Ohio			981				917				826				666				560				465				409				423				386				354				298				243				194
North Carolina			802				766				595				477				430				341				264				210				171				179				156				135				124
Texas			759				687				663				616				561				509				442				385				322				360				398				347				329
Georgia			758				714				554				477				374				364				314				269				233				233				207				170				143
Indiana			513				426				379				338				322				254				252				182				141				141				138				150				127
Colorado			456				341				311				252				203				142				107				77				97				104				86				70				70
Pennsylvania			406				392				432				440				438				398				374				380				383				344				369				437				436
South Carolina			373				346				301				278				246				212				173				138				104				103				101				88				72
Florida			360				398				398				410				413				377				408				415				442				446				441				424				449
Washington			330				323				326				317				295				264				245				240				199				197				219				215				191
Tennessee			325				326				355				293				271				220				184				145				137				126				112				87				86
Illinois			311				320				363				379				310				255				261				254				237				223				260				251				247
Alabama			301				309				278				219				210				217				205				178				135				114				105				95				59
Missouri			296				292				280				247				247				207				201				157				113				106				110				127				117
Kentucky			278				237				173				102				70				78				61				57				55				33				26				35				28
Minnesota			266				250				197				163				144				135				131				113				123				121				93				91				93
Maryland			249				301				332				335				367				341				328				311				285				291				283				304				358
New York			233				230				221				244				236				228				264				290				280				315				360				374				415
Utah			228				287				279				267				219				198				199				171				112				115				127				105				87
Other states			2,465				2,418				2,429				2,371				2,335				2,133				2,214				2,177				2,133				2,187				2,315				2,385				2,704
Total REO inventory			12,366				11,844				11,043				9,975				9,129				8,039				7,634				7,073				6,515				6,458				6,517				6,414				6,578

-13-

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Portfolio and Mortgage-Backed Securities Outstanding by State
As of September 30, 2003

---

		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 $590,449 million are included in MBS, but excluded from portfolio statistics.
		4/ Excludes $88.4 billion of non-Fannie Mae securities for which information is not readily available.

-14-

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Conventional Single-Family
Serious Delinquencies
September 2003

			Credit Enhanced												Non-Credit Enhanced												Total
							Serious Delinquencies 1/												Serious Delinquencies 1/												Serious Delinquencies 1/
			Total #												Total #												Total #
			of Loans				Total #				%				of Loans				Total #				%				of Loans				Total #				%
			Outstanding				of Loans				Delinquent				Outstanding				of Loans				Delinquent				Outstanding				of Loans				Delinquent
Northeast
	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	%
	2nd Qtr 2003			527,747				8,614				1.63	%			2,099,048				7,003				0.33	%			2,626,795				15,617				0.59	%
	3rd Qtr 2003			493,477				8,860				1.80	%			2,146,255				7,269				0.34	%			2,639,732				16,129				0.61	%
Southeast
	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	%
	2nd Qtr 2003			1,015,977				14,316				1.41	%			2,478,564				7,485				0.30	%			3,494,541				21,801				0.62	%
	3rd Qtr 2003			992,095				15,368				1.55	%			2,606,248				7,973				0.31	%			3,598,343				23,341				0.65	%
Midwest
	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	%
	2nd Qtr 2003			685,332				12,593				1.84	%			2,250,348				8,268				0.37	%			2,935,680				20,861				0.71	%
	3rd Qtr 2003			659,238				13,620				2.07	%			2,311,163				8,912				0.39	%			2,970,401				22,532				0.76	%
Southwest
	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	%
	2nd Qtr 2003			742,479				9,639				1.30	%			1,814,996				5,198				0.29	%			2,557,475				14,837				0.58	%
	3rd Qtr 2003			726,185				10,412				1.43	%			1,905,760				5,451				0.29	%			2,631,945				15,863				0.60	%
West
	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	%
	2nd Qtr 2003			598,039				5,511				0.92	%			2,618,767				4,568				0.17	%			3,216,806				10,079				0.31	%
	3rd Qtr 2003			557,868				5,393				0.97	%			2,740,929				4,752				0.17	%			3,298,797				10,145				0.31	%
Total
	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	%
	2nd Qtr 2003			3,569,574				50,673				1.42	%			11,261,723				32,522				0.29	%			14,831,297				83,195				0.56	%
	3rd Qtr 2003			3,428,863				53,653				1.56	%			11,710,355				34,357				0.29	%			15,139,218				88,010				0.58	%

1/ Includes conventional loans three or more months delinquent or in foreclosure process as a percent of the number of loans.

-15-

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Multifamily Total Serious Delinquencies and REO Inventory
September 2003

(Dollars in millions)

			Loans Serviced								Serious Delinquencies 1/												REO Inventory
			# of								# of								%				# of
			Loans				UPB				Loans				UPB				Delinquent				Loans				UPB
Northeast
	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	%			—				—
	2nd Qtr 2003			4,446				18,406.5				2				3.2				0.02	%			—				—
	3rd Qtr 2003			4,826				20,075.0				1				2.0				0.01	%			—				—
Southeast
	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
	2nd Qtr 2003			3,351				21,699.5				5				7.9				0.04	%			2				12.8
	3rd Qtr 2003			3,511				22,834.3				6				11.7				0.05	%			2				12.7
Midwest
	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
	2nd Qtr 2003			2,921				9,582.1				7				13.9				0.14	%			—				—
	3rd Qtr 2003			3,047				10,029.8				12				14.6				0.15	%			—				—
Southwest
	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	%			—				—
	2nd Qtr 2003			3,308				13,559.2				11				61.7				0.45	%			3				7.7
	3rd Qtr 2003			3,410				14,127.2				13				69.6				0.49	%			3				7.7
West
	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
	2nd Qtr 2003			16,655				33,282.6				10				38.2				0.11	%			—				—
	3rd Qtr 2003			19,426				38,018.5				15				27.5				0.07	%			—				—
Total
	3rd Qtr 2002			25,620				84,165.0				37				70.4				0.08	%			3				9.2
	4th Qtr 2002			29,308				90,442.1				30				45.7				0.05	%			3				9.2
	1st Qtr 2003			29,242				92,928.6				27				82.6				0.09	%			4				17.9
	2nd Qtr 2003			30,681				96,529.8				35				124.8				0.13	%			5				20.5
	3rd Qtr 2003			34,220				105,084.7				47				125.4				0.12	%			5				20.4

1/ Includes loans which are two or more months delinquent based on the dollar amount of such loans in the portfolio and underlying MBS.

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