UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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): December 22, 2004
Federal National Mortgage Association
Fannie Mae
Federally chartered corporation
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000-50231 | 52-0883107 | ||
(State or other jurisdiction
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(Commission | (IRS Employer | ||
of incorporation)
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File Number) | Identification Number) |
3900 Wisconsin Avenue, NW
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20016 | |||
Washington, DC
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(Zip Code) | |||
(Address of principal executive offices) |
Registrants 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 7.01. Regulation FD Disclosure.
On December 22, 2004, Fannie Mae (formally, the Federal National Mortgage Association) issued its monthly financial summary release for the month of November 2004. The summary, a copy of which is furnished as Exhibit 99.1 to this report, is 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.
Item 9.01. Financial Statements and Exhibits.
(c) Exhibits. The exhibit index filed herewith is incorporated herein by reference.
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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
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|||||
Leanne G. Spencer Senior Vice President and Controller |
Date: December 22, 2004
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EXHIBIT INDEX
The following exhibit is submitted herewith:
Exhibit Number
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Description of Exhibit | |
99.1
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Monthly summary release for November 2004 issued by Fannie Mae on December 22, 2004. |
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EXHIBIT 99.1
FANNIE MAE
MONTHLY SUMMARY
November 2004
HIGHLIGHTS FOR NOVEMBER INCLUDE:
| Total business volume was $52.7 billion in November, compared with $61.8 billion the previous month. | |||
| Retained commitments were $11.9 billion in November compared with $19.4 billion the previous month. | |||
| November mortgage portfolio purchases were $19.1 billion. It remains likely that growth in the mortgage portfolio will be close to zero for 2004. | |||
| Outstanding MBS grew at a 6.2 percent annual rate in November. Growth in outstanding MBS continued to be affected by strong private label issuance. Private label issuance was driven by sub-prime and Alt-A product, with ARM and IO ARM shares remaining high. | |||
| The conventional single-family delinquency rate rose three basis points to 0.62 percent in October. The multifamily delinquency rate remained stable at 0.12 percent. | |||
| The duration gap on Fannie Maes mortgage portfolio averaged a negative one month in November. |
MORTGAGE MARKET HIGHLIGHTS:
| Total residential mortgage debt outstanding (MDO) grew at a compound annual rate of 13.5 percent during the third quarter of 2004 to $8.4 trillion. Home equity MDO grew at an exceptionally rapid rate of 35.3 percent, the strongest rate of growth in at least a decade. Single-family first lien MDO grew at a strong 11.8 percent pace. |
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/ |
|||||||||||||||||||
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 | % | |||||||||||||||
September 2004 |
904,543 | 12.9 | % | 1,377,680 | 8.0 | % | 2,282,223 | 9.9 | % | |||||||||||||||
October 2004 |
913,246 | 12.2 | % | 1,386,272 | 7.7 | % | 2,299,518 | 9.5 | % | |||||||||||||||
November 2004 |
912,608 | (.8 | %) | 1,393,205 | 6.2 | % | 2,305,813 | 3.3 | % | |||||||||||||||
YTD 2004 |
$ | 912,608 | 1.7 | % | $ | 1,393,205 | 7.8 | % | $ | 2,305,813 | 5.3 | % |
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 |
||||||||||||||||||||||
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 | |||||||||||||||||||||
September 2004 |
40,647 | 224 | 40,870 | 5,074 | 35,796 | 27,661 | 63,457 | |||||||||||||||||||||
October 2004 |
37,594 | 694 | 38,289 | 3,665 | 34,623 | 27,142 | 61,766 | |||||||||||||||||||||
November 2004 |
35,739 | 520 | 36,259 | 2,717 | 33,542 | 19,121 | 52,662 | |||||||||||||||||||||
YTD 2004 |
$ | 481,351 | $ | 6,421 | $ | 487,772 | $ | 62,962 | $ | 424,810 | $ | 249,631 | $ | 674,441 |
Purchases |
Mortgage | |||||||||||||||||||||||
Retained | Single- | Total | Portfolio | |||||||||||||||||||||
Commitments |
family |
Multifamily |
Purchases |
Net Yield 7/ |
Sales |
|||||||||||||||||||
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 | |||||||||||||||||
September 2004 |
30,783 | 24,193 | 3,468 | 27,661 | 3.61 | % | 1,195 | |||||||||||||||||
October 2004 |
19,356 | 23,109 | 4,034 | 27,142 | 3.59 | % | 941 | |||||||||||||||||
November 2004 |
11,887 | 16,634 | 2,486 | 19,121 | 4.16 | % | 1,511 | |||||||||||||||||
YTD 2004 |
$ | 246,814 | $ | 230,820 | $ | 18,812 | $ | 249,631 | 4.19 | % | $ | 14,797 |
1/ | Represents unpaid principal balance. | |
2/ | Excludes mark-to-market adjustments, deferred balances and allowance for losses. Includes $502 billion of Fannie Mae MBS as of November 30, 2004. | |
3/ | MBS held by investors other than Fannie Maes portfolio. | |
4/ | Growth rates are compounded. | |
5/ | Excludes MBS issued from Fannie Maes portfolio, which was $1,014 million in November 2004. | |
6/ | Included in total portfolio purchases. | |
7/ | Yields shown on a taxable-equivalent basis. | |
Numbers may not foot due to rounding. |
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LIQUIDATIONS ($ in Millions) 1/ |
DELINQUENCY RATES |
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Mortgage Portfolio | Outstanding MBS | Single-family Conventional 2/ | ||||||||||||||||||||||||||||||||||
Liquidations | Liquidations | |||||||||||||||||||||||||||||||||||
Non-Credit | Credit | Multifamily | ||||||||||||||||||||||||||||||||||
Amount |
Annual Rate |
Amount |
Annual Rate |
Enhancement 3/ |
Enhancement 4/ |
Total 5/ |
Total 6/ |
|||||||||||||||||||||||||||||
December 2003 |
$ | 18,859 | 25.08 | % | $ | 26,301 | 24.61 | % | 0.30 | % | 1.65 | % | 0.60 | % | 0.27 | % | ||||||||||||||||||||
Full year 2003 |
$ | 451,487 | 53.29 | % | $ | 591,351 | 50.15 | % | ||||||||||||||||||||||||||||
January 2004 |
$ | 18,274 | 24.57 | % | $ | 27,717 | 25.40 | % | 0.31 | % | 1.70 | % | 0.61 | % | 0.24 | % | ||||||||||||||||||||
February 2004 |
15,419 | 20.92 | % | 22,948 | 20.75 | % | 0.31 | % | 1.70 | % | 0.61 | % | 0.24 | % | ||||||||||||||||||||||
March 2004 |
20,444 | 27.83 | % | 29,702 | 26.58 | % | 0.30 | % | 1.62 | % | 0.58 | % | 0.17 | % | ||||||||||||||||||||||
April 2004 |
26,086 | 35.54 | % | 40,419 | 35.94 | % | 0.29 | % | 1.58 | % | 0.56 | % | 0.16 | % | ||||||||||||||||||||||
May 2004 |
27,917 | 38.09 | % | 48,013 | 42.56 | % | 0.29 | % | 1.61 | % | 0.57 | % | 0.14 | % | ||||||||||||||||||||||
June 2004 |
22,783 | 30.90 | % | 36,063 | 31.89 | % | 0.29 | % | 1.62 | % | 0.57 | % | 0.14 | % | ||||||||||||||||||||||
July 2004 |
19,467 | 26.19 | % | 31,363 | 27.64 | % | 0.29 | % | 1.65 | % | 0.57 | % | 0.13 | % | ||||||||||||||||||||||
August 2004 |
17,179 | 23.06 | % | 26,442 | 23.23 | % | 0.30 | % | 1.67 | % | 0.58 | % | 0.13 | % | ||||||||||||||||||||||
September 2004 |
17,361 | 23.15 | % | 27,168 | 23.74 | % | 0.30 | % | 1.72 | % | 0.59 | % | 0.12 | % | ||||||||||||||||||||||
October 2004 |
17,529 | 23.14 | % | 26,970 | 23.42 | % | 0.32 | % | 1.77 | % | 0.62 | % | 0.12 | % | ||||||||||||||||||||||
November 2004 |
18,295 | 24.05 | % | 28,104 | 24.27 | % | ||||||||||||||||||||||||||||||
YTD 2004 |
$ | 220,752 | 26.97 | % | $ | 344,909 | 27.77 | % |
Net | Liquid | Total Net | ||||||||||
Mortgages |
Investments |
Investments |
||||||||||
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 | |||||||||
September 2004 |
895,590 | 69,256 | 964,846 | |||||||||
October 2004 |
903,065 | 61,445 | 964,510 | |||||||||
November 2004 |
907,233 | 62,836 | 970,069 | |||||||||
YTD 2004 |
$ | 885,108 | $ | 68,294 | $ | 953,402 |
Effective | |||||
Duration Gap 7/ | |||||
(in months) |
|||||
December 2003 |
-1 | ||||
January 2004 |
-1 | ||||
February 2004 |
-1 | ||||
March 2004 |
0 | ||||
April 2004 |
3 | ||||
May 2004 |
3 | ||||
June 2004 |
2 | ||||
July 2004 |
0 | ||||
August 2004 |
-2 | ||||
September 2004 |
-2 | ||||
October 2004 |
0 | ||||
November 2004 |
-1 |
Note: Fannie Maes November 2004 monthly summary excludes net interest income at risk information. On December 15, 2004, the Office of the Chief Accountant of the Securities and Exchange Commission (the SEC) issued a statement (the Statement) regarding a review of certain accounting issues relating to Fannie Mae, including a determination by the SEC that Fannie Mae should restate its financial statements to eliminate the use of hedge accounting. The restatement will affect Fannie Maes net interest income at risk information. On December 16, 2004, Fannie Mae filed a Current Report on Form 8-K with the SEC that includes a copy of the Statement.
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 and securities 60 days or more past due and is calculated based on mortgage credit book of business. | |
7/ | The duration gap is a weighted average for the month. | |
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, please visit www.fanniemae.com or contact us at (202) 752-7115. |
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