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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): May 27, 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 May 27, 2005, Fannie Mae (formally, the Federal National Mortgage Association) published summary information regarding its outstanding debt for certain prior periods on its website, www.fanniemae.com. The summary, a copy of which is furnished as Exhibit 99.1 to this report, is incorporated herein by reference.

     On May 27, 2005, Fannie Mae issued its monthly financial summary release for the month of April 2005. The summary, a copy of which is furnished as Exhibit 99.2 to this report, is incorporated herein by reference.

     The information in this item, including the exhibits 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: May 27, 2005

-3-

 

EXHIBIT INDEX

The following exhibits are submitted herewith:

     
Exhibit Number
  Description of Exhibit
     
99.1
  Summary information on outstanding debt published by Fannie Mae on May 27, 2005.
     
99.2
  Monthly summary release for April 2005 issued by Fannie Mae on May 27, 2005.

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exv99w1
 

EXHIBIT 99.1

FANNIE MAE DEBT OUTSTANDING

                                 
Debt Outstanding ($ in millions)   12/31/2002     12/31/2003     12/31/2004     4/30/2005  
Discount Notes
   $ 134,312     $ 137,528     $ 143,455     $ 116,972  
Benchmark Bills
     156,750       191,315       157,501       130,000  
FX Discount Notes
     —       1,540       7,630       6,932  
Other Short Term
     12,735       15,622       11,737       7,738  
 
                        
Total Short Term
   $ 303,797     $ 346,005     $ 320,323     $ 261,642  
Short term debt average maturity (in days)
     76       100       61       68  
                                 
Benchmark Notes & Bonds
   $ 287,418     $ 282,602     $ 267,091     $ 266,381  
Callable Benchmark Notes
     33,750       44,250       31,250       28,500  
Subordinated Benchmark Notes
     8,500       12,500       12,500       12,500  
Final Maturity Amortizing Notes
     —       —       750       2,035  
Other Callable & Noncallable Notes & Bonds
     211,063       270,800       312,724       315,915  
 
                        
Total Long Term
   $ 540,731     $ 610,152     $ 624,315     $ 625,331  
Long term debt average maturity (in months)
     58       54       47       47  
                                 
Total Debt Outstanding
   $ 844,528     $ 956,157     $ 944,638     $ 886,973  
Total debt average maturity (in months)
     40       36       32       34  

Notes: Other Short Term includes coupon bearing short term notes, dollar rolls, o/n fed funds, Benchmark repos, investment agreements, and LIP security lending. Other Callable & Noncallable Notes & Bonds includes all long-term nonBenchmark Securities such as debentures, global, zero-coupon securities, medium-term notes, and other long term securities.

Amounts reflect redemption value, which excludes the effect of currency adjustments, debt basis adjustments, and amortization of discounts, premiums, issuance costs, and hedging results.

 

exv99w2
 

EXHIBIT 99.2

FANNIE MAE
MONTHLY SUMMARY

APRIL 2005

HIGHLIGHTS FOR APRIL INCLUDE:

•   Total business volume rose to $45.3 billion in April from $42.4 billion the previous month.
 
•   Total lender-originated MBS issues rose to $36.8 billion, as outstanding MBS liquidations rose to $33.7 billion, resulting in a 3.7 percent annualized growth rate in April.
 
•   The mortgage portfolio declined at a 16.3 percent annualized rate in April, compared with a 13.6 percent decline in March.
 
•   The conventional single-family delinquency rate fell five basis points to 0.59 percent in March. The multifamily delinquency rate fell one basis point to 0.09 percent.
 
•   The duration gap on Fannie Mae’s mortgage portfolio averaged negative one month in April.

MORTGAGE MARKET HIGHLIGHTS:

•   Fannie Mae estimates total single-family mortgage originations for 2005 will be about $2.4 trillion compared with last year’s volume of $2.7 trillion.

 

 

(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/  
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 %)
March 2005
     864,648       (13.6 %)     1,441,003       8.9 %     2,305,652       (0.2 %)
April 2005
     851,936       (16.3 %)     1,445,353       3.7 %     2,297,288       (4.3 %)
YTD 2005
   $ 851,936       (16.5 %)   $ 1,445,353       9.4 %   $ 2,297,288       (1.3 %)

BUSINESS VOLUMES ($ in Millions) 1/
                                         
    MBS              
    Total     Fannie Mae     MBS Issues              
    Lender-originated     MBS     Acquired     Portfolio     Business  
    Issues 5/     Purchases 6/     by Others     Purchases     Volume  
May 2004
   $ 58,559     $ 10,670     $ 47,889     $ 26,686     $ 74,575  
June 2004
     53,692       13,330       40,362       37,164       77,526  
July 2004
     39,636       5,676       33,960       21,618       55,578  
August 2004
     34,961       4,676       30,285       21,787       52,072  
September 2004
     40,870       5,074       35,796       27,661       63,457  
October 2004
     38,289       3,665       34,623       27,142       61,766  
November 2004
     36,259       2,717       33,542       19,121       52,662  
December 2004
     39,375       1,642       37,732       13,016       50,748  
Full year 2004
   $ 527,146     $ 64,604     $ 462,542     $ 262,647     $ 725,189  
 
                                        
January 2005
   $ 37,457     $ 451     $ 37,006     $ 11,095     $ 48,101  
February 2005
     31,259       538       30,721       9,446       40,167  
March 2005
     31,493       326       31,166       11,206       42,372  
April 2005
     36,838       429       36,409       8,865       45,274  
YTD 2005
   $ 137,046     $ 1,744     $ 135,302     $ 40,611     $ 175,914  
 
The single-family and multifamily MBS issues will no longer be shown separately on a monthly basis.
 

MORTGAGE PORTFOLIO COMMITMENTS, PURCHASES, AND SALES ($ in Millions) 1/
                                 
                            Mortgage  
    Retained             Net     Portfolio  
    Commitments     Purchases 7/     Purchase Yield 8/     Sales  
May 2004
   $ 28,389     $ 26,686       4.55 %   $ 885  
June 2004
     29,668       37,164       4.44 %     1,695  
July 2004
     19,504       21,618       4.44 %     681  
August 2004
     24,683       21,787       4.14 %     1,932  
September 2004
     30,783       27,661       3.61 %     1,195  
October 2004
     19,356       27,142       3.59 %     941  
November 2004
     11,887       19,121       4.16 %     1,511  
December 2004
     9,330       13,016       4.71 %     1,653  
Full year 2004
   $ 256,144     $ 262,647       4.22 %   $ 16,449  
 
                                
January 2005
   $ 797     $ 11,095       4.40 %   $ 6,360  
February 2005
     3,099       9,446       4.73 %     9,539  
March 2005
     10,587       11,206       4.79 %     4,806  
April 2005
     5,654       8,865       5.04 %     1,680  
YTD 2005
   $ 20,137     $ 40,611       4.72 %   $ 22,384  

1/   Represents unpaid principal balance.
2/   Excludes mark-to-market adjustments, deferred balances and allowance for losses. Includes $445 billion of Fannie Mae MBS as of April 30, 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 $1,688 million in April 2005.
6/   Included in total portfolio purchases.
7/   Fannie Mae is not providing a breakdown of mortgage portfolio purchases between single family and multifamily because the company is currently examining its processes for classifying mortgage purchases. Upon completion of this review, we will re-release the breakdown between single-family and multifamily and expect that certain previously reported purchases will be reclassified.
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 2/        
    Liquidations     Liquidations     Non-Credit     Credit             Multifamily  
    Amount     Annual Rate     Amount     Annual Rate     Enhancement 3/     Enhancement 4/     Total 5/     Total 6/  
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 %     0.34 %     1.84 %     0.64 %     0.10 %
March 2005
     17,049       23.52 %     24,956       20.86 %     0.31 %     1.72 %     0.59 %     0.09 %
April 2005
     19,899       27.82 %     33,740       28.05 %                                
YTD 2005
   $ 70,972       24.27 %   $ 112,867       23.72 %                                

AVERAGE INVESTMENT BALANCES ($ in Millions)
                         
    Net     Liquid     Total Net  
    Mortgages     Investments     Investments  
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  
March 2005
     863,662       65,330       928,992  
April 2005
     851,828       58,269       910,097  
YTD 2005
   $ 871,350     $ 61,223     $ 932,573  

INTEREST RATE RISK DISCLOSURE
     
    Effective
    Duration Gap 7/
    (in months)
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
March 2005
   1
April 2005
   -1

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/or 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.

 

This information is subject to change as a result of the pending re-audit and restatement of Fannie Mae’s previously published financial statements. More information regarding the re-audit and restatement may be found in Form 8-Ks Fannie Mae filed with the Securities and Exchange Commission on December 22, 2004, March 18, 2005 and May 11, 2005.

For more information about Fannie Mae, please visit www.fanniemae.com or contact us at (202) 752-7115.