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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): September 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 of incorporation)	(Commission File Number)	(IRS Employer 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

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

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


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

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

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

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

Item 5.02. Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers.

On September 17, 2004, Anne Mulcahy resigned from the Board of Directors of Fannie Mae (formally, the Federal National Mortgage Association), effective October 19, 2004.

Item 7.01. Regulation FD Disclosure.

On September 20, 2004, Fannie Mae issued its monthly financial summary release and voluntary initiatives disclosure for the month of August 2004. The summary and voluntary initiatives disclosure, copies of which are furnished as Exhibit 99.1 to this report, are incorporated herein by reference.

The information in this item, including the exhibit submitted herewith, 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 Fannie Mae, except as shall be expressly set forth by specific reference in such document.

SIGNATURE

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


	FEDERAL NATIONAL MORTGAGE ASSOCIATION

	By	/s/ Leanne G. Spencer
		Leanne G. Spencer
		Senior Vice President and Controller
Date: September 21, 2004

EXHIBIT INDEX

The following exhibit is furnished herewith.


Exhibit Number		Description of Exhibit

99.1		Monthly summary release and voluntary initiatives disclosure for August 2004 issued by Fannie Mae on September 20, 2004.

exv99w1

EXHIBIT 99.1

FANNIE MAE
MONTHLY SUMMARY

August 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 AUGUST INCLUDE:

•

The mortgage portfolio grew at a 3.7 percent annual rate in August, driven by moderate portfolio purchases and slightly lower liquidations.

•

Outstanding MBS grew at a 5.0 percent annual rate in August compared with 2.9 percent in July.

•

August mortgage portfolio purchases rose slightly to $21.8 billion. Retained commitments rose to $24.7 billion from $19.5 billion in July.

•

Fannie Mae’s book of business grew at an annual rate of 4.5 percent in August.

•

The duration gap on Fannie Mae’s mortgage portfolio averaged a negative two months in August.

•

The conventional single-family delinquency rate remained stable at 0.57 percent in July, while the multifamily delinquency rate fell one basis point to 0.13 percent.

MORTGAGE MARKET HIGHLIGHTS:

•

Total residential mortgage debt outstanding grew at a compound annual rate of 12.4 percent during the second quarter of 2004. This was the 9^th consecutive quarter during which total residential MDO grew by at least 10 percent.

(FANNIE MAE LOGO)

BUSINESS BALANCES AND GROWTH ($ in Millions) 1/


	Mortgage Portfolio, Gross 2/					Outstanding MBS 3/					Book of Business
	End Balance		Growth Rate 4/			End Balance		Growth Rate 4/			End Balance		Growth Rate 4/
September 2003	$	917,131		100.5	%	$	1,211,079		(14.6	%)	$	2,128,210		22.5	%
October 2003		912,665		(5.7	%)		1,239,925		32.6	%		2,152,590		14.6	%
November 2003		906,387		(7.9	%)		1,264,673		26.8	%		2,171,060		10.8	%
December 2003		898,445		(10.0	%)		1,300,166		39.4	%		2,198,611		16.3	%
Full year 2003	$	898,445		13.1	%	$	1,300,166		26.3	%	$	2,198,611		20.6	%

January 2004	$	886,730		(14.6	%)	$	1,318,711		18.5	%	$	2,205,441		3.8	%
February 2004		882,124		(6.1	%)		1,335,714		16.6	%		2,217,838		7.0	%
March 2004		880,911		(1.6	%)		1,345,892		9.5	%		2,226,803		5.0	%
April 2004		880,481		(.6	%)		1,353,399		6.9	%		2,233,880		3.9	%
May 2004		878,386		(2.8	%)		1,354,160		0.7	%		2,232,546		(.7	%)
June 2004		891,210		19.0	%		1,360,045		5.3	%		2,251,255		10.5	%
July 2004		892,724		2.1	%		1,363,317		2.9	%		2,256,041		2.6	%
August 2004		895,428		3.7	%		1,368,918		5.0	%		2,264,345		4.5	%
YTD 2004	$	895,428		(.5	%)	$	1,368,918		8.0	%	$	2,264,345		4.5	%

BUSINESS VOLUMES ($ in Millions) 1/


	MBS
					Total		Fannie Mae		MBS Issues
	Single-family		Multifamily		Lender-originated		MBS		Acquired		Portfolio		Business
	Issues		Issues		Issues 5/		Purchases 6/		by Others		Purchases		Volume
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
February 2004		38,605		200		38,804		181		38,624		12,170		50,794
March 2004		44,345		1,019		45,365		6,507		38,858		20,260		59,118
April 2004		56,117		424		56,541		10,198		46,344		27,448		73,792
May 2004		57,629		931		58,559		10,670		47,889		26,686		74,575
June 2004		52,981		711		53,692		13,330		40,362		37,164		77,526
July 2004		38,719		916		39,636		5,676		33,960		21,618		55,578
August 2004		34,685		276		34,961		4,676		30,285		21,787		52,072
YTD 2004	$	367,370	$	4,982	$	372,353	$	51,505	$	320,848	$	175,708	$	496,557

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


			Purchases									Mortgage
	Retained		Single-				Total					Portfolio
	Commitments		family		Multifamily		Purchases		Net Yield 7/			Sales
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
February 2004		12,576		11,834		337		12,170		3.68	%		1,326
March 2004		29,411		19,406		854		20,260		4.53	%		1,023
April 2004		28,860		25,997		1,451		27,448		4.37	%		1,583
May 2004		28,389		25,461		1,226		26,686		4.55	%		885
June 2004		29,668		34,775		2,389		37,164		4.44	%		1,695
July 2004		19,504		20,667		950		21,618		4.44	%		681
August 2004		24,683		20,747		1,040		21,787		4.14	%		1,932
YTD 2004	$	184,788	$	166,884	$	8,823	$	175,708		4.38	%	$	11,150

1/		Represents unpaid principal balance.

2/		Excludes mark-to-market adjustments, deferred balances and allowance for losses. Includes $519 billion of Fannie Mae MBS as of August 31, 2004.

3/		MBS held by investors other than Fannie Mae’s portfolio.

4/		Growth rates are compounded.

5/		Excludes MBS issued from Fannie Mae’s portfolio, which was $682 million in August 2004.

6/		Included in total portfolio purchases.

7/		Yields shown on a taxable-equivalent basis.

		Numbers may not foot due to rounding.

LIQUIDATIONS ($ in Millions) 1/


	Mortgage Portfolio					Outstanding MBS
	Liquidations					Liquidations
	Amount		Annual Rate			Amount		Annual Rate
September 2003	$	44,244		59.65	%	$	63,577		62.58	%
October 2003		30,862		40.48	%		44,975		44.04	%
November 2003		22,438		29.60	%		34,214		32.78	%
December 2003		18,859		25.08	%		26,301		24.61	%
Full year 2003	$	451,487		53.29	%	$	591,351		50.15	%

January 2004	$	18,274		24.57	%	$	27,717		25.40	%
February 2004		15,419		20.92	%		22,948		20.75	%
March 2004		20,444		27.83	%		29,702		26.58	%
April 2004		26,086		35.54	%		40,419		35.94	%
May 2004		27,917		38.09	%		48,013		42.56	%
June 2004		22,783		30.90	%		36,063		31.89	%
July 2004		19,467		26.19	%		31,363		27.64	%
August 2004		17,179		23.06	%		26,442		23.23	%
YTD 2004	$	167,567		28.33	%	$	262,667		29.31	%

DELINQUENCY RATES


Single-family Conventional 2/
Non-Credit	Credit						Multifamily
Enhancement 3/	Enhancement 4/			Total 5/			Total 6/
0.29%		1.56	%		0.58	%		0.12	%
0.29%		1.56	%		0.57	%		0.12	%
0.30%		1.63	%		0.59	%		0.13	%
0.30%		1.65	%		0.60	%		0.27	%


0.31%		1.70	%		0.61	%		0.24	%
0.31%		1.70	%		0.61	%		0.24	%
0.30%		1.62	%		0.58	%		0.17	%
0.29%		1.58	%		0.56	%		0.16	%
0.29%		1.61	%		0.57	%		0.14	%
0.29%		1.62	%		0.57	%		0.14	%
0.29%		1.65	%		0.57	%		0.13	%

AVERAGE INVESTMENT BALANCES ($ in Millions)


	Net		Liquid		Total Net
	Mortgages		Investments		Investments
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
February 2004		883,892		63,749		947,641
March 2004		876,205		66,996		943,201
April 2004		870,446		75,787		946,232
May 2004		866,855		82,711		949,567
June 2004		873,386		71,698		945,084
July 2004		883,135		63,078		946,213
August 2004		887,471		64,853		952,324
YTD 2004	$	878,787	$	69,713	$	948,500

INTEREST RATE RISK DISCLOSURES


			Rate Level Shock (50bp) 8/						Rate Slope Shock (25bp) 8/
	Effective		1 Year Portfolio			4 Year Portfolio			1 Year Portfolio			4 Year Portfolio
	Duration Gap 7/		Net Interest			Net Interest			Net Interest			Net Interest
	(in months)		Income at Risk			Income at Risk			Income at Risk			Income at Risk
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	%
February 2004		-1		1.4	%		3.3	%		3.7	%		6.7	%
March 2004		0		3.8	%		5.4	%		4.0	%		6.6	%
April 2004		3		5.0	%		5.3	%		2.9	%		5.4	%
May 2004		3		2.9	%		2.5	%		2.5	%		4.5	%
June 2004		2		1.6	%		3.5	%		2.3	%		4.1	%
July 2004		0		0.8	%		1.9	%		2.3	%		4.6	%
August 2004		-2		2.8	%		3.2	%		4.0	%		6.6	%

1/		Represents unpaid principal balance.

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

3/		Loans without primary mortgage insurance or any credit enhancements.

4/		Loans with primary mortgage insurance and other credit enhancements.

5/		Total of single-family non-credit enhanced and credit enhanced loans.

6/		Includes loans two or more months delinquent as a percent of loan dollars and includes the total mortgage credit book of business.

7/		The duration gap is a weighted average for the month.

8/		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.

(FANNIEMAE LOGO)

Voluntary Initiatives Disclosure
August 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
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	%
February		-1		1.4	%		3.3	%		3.7	%		6.7	%
March		0		3.8	%		5.4	%		4.0	%		6.6	%
April		3		5.0	%		5.3	%		2.9	%		5.4	%
May		3		2.9	%		2.5	%		2.5	%		4.5	%
June		2		1.6	%		3.5	%		2.3	%		4.1	%
July		0		0.8	%		1.9	%		2.3	%		4.6	%
August		-2		2.8	%		3.2	%		4.0	%		6.6	%

•		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
September 30, 2003		5.6	%
December 31, 2003		6.5	%
March 31, 2004		6.4	%
June 30, 2004		5.2	%

•		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 assets.

CREDIT RISK


	Before		After
Lifetime credit loss	Credit		Credit
sensitivity as of:	Enhancements		Enhancements
*(Dollars in millions)*
June 30, 2003	$	2,408	$	983
September 30, 2003		2,678		1,138
December 31, 2003		2,402		1,113
March 31, 2004 (1)		3,231		1,453

•		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)*
March 31, 2004	$	36.481	$	12.429		4.3
June 30, 2004		36.862		12.432		4.4

•		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 subordinated debt of at least five years. At June 30, 2004, the original weighted-average term to maturity was 8.1 years with a remaining weighted-average maturity of 6.1 years.

(1)

Most recent data available.