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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): February 17, 2004

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

Item 9. Regulation FD Disclosure.

On February 17, 2004, Fannie Mae (formally, the Federal National Mortgage Association), issued its monthly financial summary release and voluntary initiatives disclosure for the month of January 2004, 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.

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: February 17, 2004

EXHIBIT INDEX

The following is a list of the Exhibits furnished herewith.


Exhibit Number		Description of Exhibit

99.1		Monthly summary release and voluntary initiatives disclosure for January 2004 issued by Fannie Mae on February 17, 2004.

exv99w1

Exhibit 99.1

FANNIE MAE
MONTHLY SUMMARY
JANUARY 2004

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

Because of increased levels of actual and anticipated variability in performance measures on a month-to-month and quarter-to-quarter basis, management believes that it is important to view these measures on a year-to-date basis, and in the context of our longer-term outlook.

HIGHLIGHTS FOR JANUARY INCLUDE:

•		Fannie Mae’s book of business grew at an annualized 3.8 percent rate.

•		Outstanding MBS grew at an 18.5 percent annual growth rate compared with 39.4 percent the previous month.

•		Retained commitments rose slightly to $11.7 billion. Mortgage portfolio purchases in January were $8.6 billion.

•		The mortgage portfolio declined at a 14.6 percent annualized rate in January.

•		The duration gap on Fannie Mae’s mortgage portfolio averaged a negative one month for the third consecutive month.

•		The conventional single-family delinquency rate rose one basis point to 0.60 percent. The multifamily delinquency rate rose fourteen basis points to 0.27 percent.

MORTGAGE MARKET HIGHLIGHTS:

•

Mortgage market indicators remain very strong. Fannie Mae now estimates total single-family originations for 2004 will be about $1.9 trillion and residential mortgage debt outstanding will grow at an annualized rate of 9.4 percent.

BUSINESS BALANCES AND GROWTH ($ in Millions) 1/


	Mortgage Portfolio, Gross 2, 3/					Outstanding MBS 4/					Book of Business 3/
	End Balance		Growth Rate 5/			End Balance		Growth Rate 5/			End Balance		Growth Rate 5/
February 2003	$	817,630		8.3	%	$	1,073,564		33.7	%	$	1,891,194		22.0	%
March 2003		817,656		(.2	%)		1,107,520		45.3	%		1,925,176		23.7	%
April 2003		819,774		3.2	%		1,156,205		67.6	%		1,975,979		36.7	%
May 2003		817,404		(3.4	%)		1,186,128		35.9	%		2,003,532		18.1	%
June 2003		814,882		(3.6	%)		1,237,461		66.3	%		2,052,343		33.5	%
July 2003		838,236		40.4	%		1,248,869		11.6	%		2,087,104		22.3	%
August 2003		865,461		46.8	%		1,227,115		(19.0	%)		2,092,576		3.2	%
September 2003		917,123		100.5	%		1,211,079		(14.6	%)		2,128,202		22.5	%
October 2003		912,658		(5.7	%)		1,239,925		32.6	%		2,152,583		14.6	%
November 2003		906,380		(7.9	%)		1,264,673		26.8	%		2,171,053		10.8	%
December 2003		898,438		(10.0	%)		1,300,166		39.4	%		2,198,604		16.3	%

Full year 2003	$	898,438		13.1	%	$	1,300,166		26.3	%	$	2,198,604		20.6	%

January 2004	$	886,665		(14.6	%)	$	1,318,712		18.5	%	$	2,205,376		3.8	%

BUSINESS VOLUMES ($ in Millions) 1/


	MBS
					Total		Fannie Mae		MBS Issues
	Single-family		Multifamily		Lender-originated		MBS		Acquired		Portfolio		Business
	Issues		Issues		Issues 6/		Purchases 7/		by Others		Purchases		Volume
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
June 2003		121,457		1,449		122,906		21,655		101,251		41,183		142,434
July 2003		118,545		1,420		119,965		48,266		71,699		72,447		144,146
August 2003		108,866		796		109,662		54,295		55,367		82,656		138,023
September 2003		116,105		4,192		120,297		73,504		46,793		98,804		145,597
October 2003		78,765		3,009		81,774		9,110		72,664		27,609		100,273
November 2003		56,840		3,657		60,497		2,888		57,609		17,596		75,205
December 2003		56,598		4,265		60,863		1,226		59,637		13,775		73,412

Full year 2003	$	1,175,599	$	23,018	$	1,198,617	$	348,413	$	850,204	$	572,852	$	1,423,056

January 2004	$	44,289	$	505	$	44,794	$	268	$	44,527	$	8,573	$	53,100

MORTGAGE PORTFOLIO COMMITMENTS, PURCHASES, AND SALES ($ in Millions) /1


			Purchases									Mortgage
	Retained		Single-				Total					Portfolio
	Commitments		family		Multifamily		Purchases		Net Yield 8/			Sales
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
June 2003		75,515		40,306		877		41,183		4.96	%		2,885
July 2003		77,679		70,246		2,201		72,447		4.86	%		513
August 2003		43,351		81,255		1,401		82,656		4.83	%		384
September 2003		27,961		97,693		1,111		98,804		4.85	%		581
October 2003		12,313		26,353		1,256		27,609		4.98	%		1,227
November 2003		13,104		16,540		1,056		17,596		4.20	%		1,452
December 2003		8,057		12,249		1,526		13,775		4.96	%		2,875

Full year 2003	$	489,073	$	559,669	$	13,183	$	572,852		5.00	%	$	13,727

January 2004	$	11,696	$	7,996	$	577	$	8,573		4.77	%	$	2,025


1/		Represents unpaid principal balance.
2/		Excludes mark-to-market adjustments, deferred balances and allowance for losses. Includes $546 billion of Fannie Mae MBS as of January 31, 2004.
3/		Prior periods have been revised to be consistent with balance sheet reclassifications implemented during the third quarter of 2003.
4/		MBS held by investors other than Fannie Mae’s portfolio.
5/		Growth rates are compounded.
6/		Excludes MBS issued from Fannie Mae’s portfolio, which was $1,691 million in January 2004.
7/		Included in total portfolio purchases.
8/		Yields shown on a taxable-equivalent basis.

Numbers may not foot due to rounding.


LIQUIDATIONS ($ in Millions) /1											DELINQUENCY RATES
	Mortgage Portfolio					Outstanding MBS					Single-family Conventional 3/
	Liquidations					Liquidations
											Non-Credit			Credit						Multifamily
	Amount		Annual Rate			Amount		Annual Rate			Enhancement 4/			Enhancement 5/			Total 6/			Total 7/
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	%		0.29	%		1.38	%		0.55	%		0.15	%
June 2003		41,279		60.85	%		52,607		52.09	%		0.29	%		1.42	%		0.56	%		0.13	%
July 2003		48,309		70.33	%		60,611		58.51	%		0.29	%		1.47	%		0.57	%		0.13	%
August 2003		55,220		77.99	%		76,854		74.50	%		0.29	%		1.52	%		0.58	%		0.13	%
September 2003		44,244		59.65	%		63,577		62.58	%		0.29	%		1.56	%		0.58	%		0.12	%
October 2003		30,862		40.48	%		44,975		44.04	%		0.29	%		1.56	%		0.57	%		0.12	%
November 2003		22,438		29.60	%		34,214		32.78	%		0.30	%		1.63	%		0.59	%		0.13	%
December 2003		18,859		25.08	%		26,301		24.61	%2/		0.30	%		1.65	%		0.60	%		0.27	%

Full year 2003	$	451,487		53.29	%	$	591,351		50.15	% 2/

January 2004	$	18,274		24.57	%	$	27,717		25.40	%

AVERAGE INVESTMENT BALANCES ($ in Millions)


	Net		Liquid		Total Net
	Mortgages		Investments		Investments
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
June 2003		808,205		86,136		894,341
July 2003		813,728		82,011		895,739
August 2003		832,100		95,607		927,708
September 2003		876,724		78,892		955,617
October 2003		906,989		68,317		975,305
November 2003		902,601		63,262		965,863
December 2003		898,858		65,966		964,824

Full year 2003	$	839,171	$	75,114	$	914,286

January 2004	$	888,908	$	68,830	$	957,738

INTEREST RATE RISK DISCLOSURES


			Rate Level Shock (50bp) 9/						Rate Slope Shock (25bp) 9/
	Effective		1 Year Portfolio			4 Year Portfolio			1 Year Portfolio			4 Year Portfolio
	Duration Gap 8/		Net Interest			Net Interest			Net Interest			Net Interest
	(in months)		Income at Risk			Income at Risk			Income at Risk			Income at Risk
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	%
June 2003		-1		2.1	%		6.6	%		3.9	%		5.9	%
July 2003		6		9.3	%		8.7	%		1.9	%		2.9	%
August 2003		4		4.8	%		3.2	%		3.4	%		5.2	%
September 2003		1		2.7	%		1.3	%		5.2	%		6.8	%
October 2003		1		4.5	%		2.4	%		4.1	%		5.9	%
November 2003		-1		3.7	%		2.7	%		3.7	%		6.1	%
December 2003		-1		2.6	%		2.1	%		3.6	%		6.1	%
January 2004		-1		0.9	%		3.1	%		3.0	%		6.4	%


1/		Represents unpaid principal balance.
2/		December 2003 data revised.
3/		Includes conventional loans three or more months delinquent or in foreclosure process as a percent of the number of loans.
4/		Loans without primary mortgage insurance or any credit enhancements.
5/		Loans with primary mortgage insurance and other credit enhancements.
6/		Total of single-family non-credit enhanced and credit enhanced loans.
7/		Includes loans two or more months delinquent as a percent of loan dollars and includes the total credit book of business.
8/		The duration gap is a weighted average for the month.
9/		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.

Numbers may not foot due to rounding.

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.

(LOGO)
Voluntary Initiatives Disclosure
January 2004

INTEREST RATE RISK

			Rate Level Shock (50bp)						Rate Slope Shock (25bp)
	Effective		1 Year Portfolio			4 Year Portfolio			1 Year Portfolio			4 Year Portfolio
	Duration Gap		Net Interest			Net Interest			Net Interest			Net Interest
	(in months)		Income at Risk			Income at Risk			Income at Risk			Income at Risk
2003
February		-5		3.6	%		1.3	%		4.9	%		6.8	%
March		-2		1.7	%		2.8	%		4.4	%		6.7	%
April		-2		2.1	%		2.5	%		4.6	%		6.5	%
May		-5		0.7	%		2.2	%		5.3	%		7.1	%
June		-1		2.1	%		6.6	%		3.9	%		5.9	%
July		6		9.3	%		8.7	%		1.9	%		2.9	%
August		4		4.8	%		3.2	%		3.4	%		5.2	%
September		1		2.7	%		1.3	%		5.2	%		6.8	%
October		1		4.5	%		2.4	%		4.1	%		5.9	%
November		-1		3.7	%		2.7	%		3.7	%		6.1	%
December		-1		2.6	%		2.1	%		3.6	%		6.1	%
2004
January		-1		0.9	%		3.1	%		3.0	%		6.4	%

•		Effective duration gap — measures the extent the effective duration of the portfolio’s assets and liabilities are matched. A positive duration gap indicates that the effective duration of our assets exceeds the effective duration of our liabilities by that amount, while a negative duration gap indicates the opposite. The duration gap is a calculated weighted-average for the month.

•		Net interest income at risk — compares Fannie Mae’s projected change in portfolio net interest income under the financially more adverse of a 50 basis point increase and decrease in interest rates. Fannie Mae also compares the expected change in portfolio net interest income for the more adverse of a 25 basis point decrease and increase in the slope of the yield curve. Both measurements are done for one-year and four-year periods.

		A positive number indicates the percent by which net interest income could be reduced by the increased rate shock. A negative number would indicate the percent by which net interest income could be increased by the shock.

LIQUIDITY


Ratio of liquid to total assets	Ratio
March 31, 2003		6.7	%
June 30, 2003		7.5	%
September 30, 2003		5.6	%
December 31, 2003		6.5	%

•		Fannie Mae will maintain at least three months of liquidity to ensure the company can meet all of its obligations in any period of time in which it does not have access to the debt markets. Fannie Mae also will comply with the Basel Committee on Banking Supervision’s fourteen principles for sound liquidity management.

•		To fulfill its liquidity commitment, Fannie Mae will maintain more than five percent of its on-balance sheet assets in high-quality, liquid investments.

CREDIT RISK


	Before		After
Lifetime credit loss	Credit		Credit
sensitivity as of:	Enhancements		Enhancements
*(Dollars in millions)*
December 31, 2002	$	1,838	$	596
March 31, 2003	$	1,798	$	635
June 30, 2003	$	2,408	$	983
September 30, 2003 (1)	$	2,678	$	1,138

•		Lifetime credit loss sensitivity measures the sensitivity of Fannie Mae’s expected future credit losses to an immediate five percent decline in home values for all single-family mortgages held in Fannie Mae’s retained portfolio and underlying guaranteed MBS.

•		Credit loss sensitivity is reported in present value terms and measures expected losses in two ways: before receipt of private mortgage insurance claims and any other credit enhancements and after receipt of expected mortgage insurance and other credit enhancements.

SUBORDINATED DEBT

Net Proceeds

Total capital and

Total

on Subordinated

subordinated debt

Capital

Debt

Percent

(Dollars in billions)

December 31, 2003

35.182

12.427

4.1

•		Fannie Mae will issue subordinated debt in an amount sufficient to bring the sum of total capital (core capital plus general allowance for losses) and subordinated debt to 4% of on balance sheet assets, after providing for the capitalization of off balance sheet MBS.

•		Subordinated debt only includes net proceeds on issuances from January 1, 2001

•		Fannie Mae will maintain a weighted-average maturity of outstanding subordinated debt of at least five years. At December 31, 2003, the weighted-average maturity was 8.1 years.

(1) Most recent data available.