View:
Download DOC
Download PDF
Download XLS
e8vk
 

 
 

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): March 21, 2005

Federal National Mortgage Association

(Exact name of registrant as specified in its charter)

Fannie Mae

         
Federally chartered corporation
  000-50231   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

(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 March 21, 2005, Fannie Mae (formally, the Federal National Mortgage Association) issued its monthly financial summary release for the month of February 2005. 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.

-2-

 

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/ David C. Hisey
      David C. Hisey
      Senior Vice President and Controller

Date: March 21, 2005

-3-

 

EXHIBIT INDEX

The following exhibit is submitted herewith:

     
Exhibit Number   Description of Exhibit
 
99.1
  Monthly summary release for February 2005 issued by Fannie Mae on
March 21, 2005.

-4-

exv99w1
 

EXHIBIT 99.1

FANNIE MAE
MONTHLY SUMMARY

February 2005

HIGHLIGHTS FOR FEBRUARY INCLUDE:

•   Total business volume was $40.2 billion in February compared with $48.1 billion the previous month.
 
•   Portfolio purchases were $9.4 billion, compared with $11.1 billion in January.
 
•   The mortgage portfolio declined at a 19.1 percent annualized rate in February, compared with a 16.8 percent decline in January. Outstanding MBS grew at a 13.3 percent annualized rate in February compared with 12.0 percent in January.
 
•   Retained commitments were $3.1 billion compared with $0.8 billion the previous month.
 
•   The conventional single-family delinquency rate rose two basis points to 0.65 percent in January. The multifamily delinquency rate remained stable at 0.10 percent.
 
•   The duration gap on Fannie Mae’s mortgage portfolio averaged zero months in February.

MORTGAGE MARKET HIGHLIGHTS:

•   Total residential mortgage debt outstanding (MDO) grew at a compound annual rate of 11.4 percent during the fourth quarter of 2004 to $8.7 trillion. Total residential MDO for all of 2004 grew by 13.2 percent, the fastest rate of annual growth recorded since 1986.

 

(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/
March 2004
   $ 880,911       (1.6 %)   $ 1,345,892       9.5 %   $ 2,226,803       5.0 %
April 2004
     880,481       (0.6 %)     1,353,399       6.9 %     2,233,880       3.9 %
May 2004
     878,386       (2.8 %)     1,354,160       0.7 %     2,232,546       (0.7 %)
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       (0.8 %)     1,393,205       6.2 %     2,305,813       3.3 %
December 2004
     904,555       (10.1 %)     1,402,761       8.5 %     2,307,316       0.8 %
Full year 2004
   $ 904,555       0.7 %   $ 1,402,761       7.9 %   $ 2,307,316       4.9 %
 
                                                
January 2005
   $ 890,834       (16.8 %)   $ 1,416,038       12.0 %   $ 2,306,871       (0.2 %)
February 2005
     875,245       (19.1 %)     1,430,825       13.3 %     2,306,070       (0.4 %)
YTD 2005
   $ 875,245       (17.9 %)   $ 1,430,825       12.6 %   $ 2,306,070       (0.3 %)

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
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  
December 2004
     38,941       434       39,375       1,642       37,732       13,016       50,748  
Full year 2004
   $ 520,292     $ 6,854     $ 527,146     $ 64,604     $ 462,542     $ 262,647     $ 725,189  
 
                                                        
January 2005
   $ 35,440     $ 2,016     $ 37,457     $ 451     $ 37,006     $ 11,095     $ 48,101  
February 2005
     29,768       1,491       31,259       538       30,721       9,446       40,167  
YTD 2005
   $ 65,208     $ 3,507     $ 68,716     $ 989     $ 67,727     $ 20,541     $ 88,268  

MORTGAGE PORTFOLIO COMMITMENTS, PURCHASES, AND SALES ($ in Millions) 1/
                                                 
            Purchases    
           
  Mortgage
    Retained   Single-           Total           Portfolio
    Commitments
  family
  Multifamily
  Purchases
  Net Yield 7/
  Sales
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  
December 2004
     9,330       10,980       2,036       13,016       4.71 %     1,653  
Full year 2004
   $ 256,144     $ 241,800     $ 20,848     $ 262,647       4.22 %   $ 16,449  
 
                                                
January 2005
   $ 797     $ 7,783     $ 3,312     $ 11,095       4.40 %   $ 6,360  
February 2005
     3,099       6,994       2,452       9,446       4.73 %     9,539  
YTD 2005
   $ 3,896     $ 14,777     $ 5,764     $ 20,541       4.55 %   $ 15,899  

1/    Represents unpaid principal balance.
2/     Excludes mark-to-market adjustments, deferred balances and allowance for losses. Includes $465 billion of Fannie Mae MBS as of February 28, 2005.
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 $1,324 million in February 2005.
6/     Included in total portfolio purchases.
7/     Yields shown on a taxable-equivalent basis.
 
    Numbers may not foot due to rounding.

1

 

                                                                 
 
    
LIQUIDATIONS ($ in Millions) 1/
   DELINQUENCY RATES
    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/
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 %     0.33 %     1.84 %     0.64 %     0.10 %
December 2004
     19,449       25.69 %     29,779       25.56 %     0.33 %     1.84 %     0.63 %     0.10 %
Full year 2004
   $ 240,201       26.87 %   $ 374,688       27.58 %                                
 
January 2005
   $ 18,480       24.70 %   $ 30,063       25.60 %     0.35 %     1.88 %     0.65 %     0.10 %
February 2005
     15,545       21.13 %     24,107       20.32 %                                
YTD 2005
   $ 34,025       22.93 %   $ 54,171       22.94 %                                

 

AVERAGE INVESTMENT BALANCES ($ in Millions)
                         
    Net   Liquid   Total Net
    Mortgages
   Investments
   Investments
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  
December 2004
     904,200       58,877       963,077  
Full year 2004
   $ 886,699     $ 67,510     $ 954,208  
 
January 2005
   $ 891,533     $ 66,667     $ 958,200  
February 2005
     878,378       54,626       933,003  
YTD 2005
   $ 884,955     $ 60,647     $ 945,602  

INTEREST RATE RISK DISCLOSURE *
         
    Effective
    Duration Gap 7/
    (in months)
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  
December 2004
     -1  
January 2005
     -1  
February 2005
     0  
     
*Note:
  Fannie Mae’s 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 Mae’s 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.

2

 

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. Fannie Mae has announced that its previously issued financial statements and information should no longer be relied upon in light of the SEC’s determination that the financial statements were prepared applying accounting practices that did not comply with generally accepted accounting principles, or GAAP. Fannie Mae has also announced that it will restate its previously issued financial statements and that it has engaged new auditors to serve as Fannie Mae’s independent auditors for 2001 through 2004. It is possible that the re-audit and restatement of Fannie Mae’s financial statements may result in changes to some of the information in this report.

For more information about the restatement and the reaudit, please see the Form 8-Ks Fannie Mae filed with the SEC on December 22, 2004, January 4, 2005 and March 18, 2005. For more information regarding Fannie Mae, please visit www.fanniemae.com or contact us at (202) 752-7115.