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): June 27, 2005
Federal National Mortgage Association
Fannie Mae
| Federally chartered corporation (State or other jurisdiction of incorporation) |
000-50231 (Commission File Number) |
52-0883107 (IRS Employer Identification Number) |
| 3900 Wisconsin Avenue, NW Washington, DC (Address of principal executive offices) |
20016 (Zip Code) |
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 June 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 June 27, 2005, Fannie Mae issued its monthly financial summary release for the month of May 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: June 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 June 27, 2005. | |
99.2
|
Monthly summary release for May 2005 issued by Fannie Mae on June 27, 2005. |
- 4 -
EXHIBIT 99.1
Fannie Mae Debt Outstanding
| Debt Outstanding ($ in millions) | 12/31/2002 | 12/31/2003 | 12/31/2004 | 5/31/2005 | ||||||||||||
Discount Notes |
$ | 134,312 | $ | 137,528 | $ | 143,455 | $ | 102,942 | ||||||||
Benchmark Bills |
156,750 | 191,315 | 157,501 | 126,500 | ||||||||||||
FX Discount Notes |
— | 1,540 | 7,630 | 6,679 | ||||||||||||
Other Short Term |
12,735 | 15,622 | 11,737 | 8,004 | ||||||||||||
Total Short Term |
$ | 303,797 | $ | 346,005 | $ | 320,323 | $ | 244,125 | ||||||||
Short term debt average maturity (in days) |
76 | 100 | 61 | 67 | ||||||||||||
Benchmark Notes & Bonds |
$ | 287,418 | $ | 282,602 | $ | 267,091 | $ | 269,381 | ||||||||
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 | 2,000 | ||||||||||||
Other Callable & Noncallable Notes & Bonds |
211,063 | 270,800 | 312,724 | 304,265 | ||||||||||||
Total Long Term |
$ | 540,731 | $ | 610,152 | $ | 624,315 | $ | 616,646 | ||||||||
Long term debt average maturity (in months) |
58 | 54 | 47 | 47 | ||||||||||||
Total Debt Outstanding |
$ | 844,528 | $ | 956,157 | $ | 944,638 | $ | 860,771 | ||||||||
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.
EXHIBIT 99.2
FANNIE MAE
MONTHLY SUMMARY
May 2005
HIGHLIGHTS FOR MAY INCLUDE:
| • | Total business volume was $45.3 billion in May, slightly higher than in April. |
| • | New MBS issuance by lenders was $34.3 billion in May, compared to $36.8 billion the previous month. |
| • | Portfolio purchases were $11.2 billion and portfolio sales were $17.8 billion, which net of portfolio liquidations resulted in a negative 28.9 percent annualized growth rate of the mortgage portfolio. $7.3 billion of the portfolio sales were part of a transaction executed in May to resecuritize non-agency REMIC securities previously held in the mortgage portfolio. |
| • | The conventional single-family delinquency rate fell two basis points to 0.57 percent in April. The multifamily delinquency rate rose one basis point to 0.10 percent. |
| • | The duration gap on Fannie Mae’s mortgage portfolio averaged minus one month in May. |
MORTGAGE MARKET HIGHLIGHTS:
| • | Total residential mortgage debt outstanding grew at a compound annual rate of 9.2 percent during the first quarter of 2005 to $8.9 trillion. |
| • | Fannie Mae estimates total single-family mortgage originations for 2005 will be about $2.7 trillion. |
| 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/ | |||||||||||||||||||
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 | %) | |||||||||||||||
May 2005 |
828,079 | (28.9 | %) | 1,464,884 | 17.5 | % | 2,292,963 | (2.2 | %) | |||||||||||||||
YTD 2005 |
$ | 828,079 | (19.1 | %) | $ | 1,464,884 | 11.0 | % | $ | 2,292,963 | (1.5 | %) | ||||||||||||
| MBS | ||||||||||||||||||||
| Total | Fannie Mae | MBS Issues | ||||||||||||||||||
| Lender-originated | MBS | Acquired | Portfolio | Business | ||||||||||||||||
| Issues 5/ | Purchases 6/ | by Others | Purchases | Volume | ||||||||||||||||
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 | |||||||||||||||
May 2005 |
34,343 | 219 | 34,124 | 11,198 | 45,322 | |||||||||||||||
YTD 2005 |
$ | 171,390 | $ | 1,963 | $ | 169,427 | $ | 51,809 | $ | 221,236 | ||||||||||
The single-family and multifamily MBS issues will no
longer be shown separately on a monthly basis. |
||||||||||||||||||||
| Mortgage | ||||||||||||||||
| Retained | Net | Portfolio | ||||||||||||||
| Commitments 7/ | Purchases 8/ | Purchase Yield 9/ | Sales | |||||||||||||
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 | |||||||||||
May 2005 |
(8,131 | ) | 11,198 | 4.99 | % | 17,812 | ||||||||||
YTD 2005 |
$ | 12,006 | $ | 51,809 | 4.78 | % | $ | 40,196 | ||||||||
| 1/ | Represents unpaid principal balance. | |
| 2/ | Excludes mark-to-market adjustments, deferred balances and allowance for losses. Includes $431 billion of Fannie Mae MBS as of May 31, 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 $6,551 million in May 2005. | |
| 6/ | Included in total portfolio purchases. | |
| 7/ | Represents commitments to purchase net of commitments to sell that were entered into during the month, including any modifications to original amounts. | |
| 8/ | Fannie Mae is not providing a breakdown of mortgage portfolio purchases between single family and multifamily because the company is currently examining its processes for classifying mortgage purchases. Upon completion of this review, we will re-release the breakdown between single-family and multifamily and expect that certain previously reported purchases will be reclassified. | |
| 9/ | Yields shown on a taxable-equivalent basis. | |
| Numbers may not foot due to rounding. |
| LIQUIDATIONS ($ 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/ | |||||||||||||||||||||||||
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 | % | 0.30 | % | 1.68 | % | 0.57 | % | 0.10 | % | ||||||||||||||||||
May 2005 |
17,301 | 24.72 | % | 27,844 | 22.96 | % | ||||||||||||||||||||||||||
YTD 2005 |
$ | 88,273 | 24.37 | % | $ | 140,711 | 23.56 | % | ||||||||||||||||||||||||
| Net | Liquid | Total Net | ||||||||||
| Mortgages | Investments | Investments | ||||||||||
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 | |||||||||
May 2005 |
836,441 | 55,479 | 891,920 | |||||||||
YTD 2005 |
$ | 864,368 | $ | 60,074 | $ | 924,443 | ||||||
| Effective | ||||
| Duration Gap 7/ | ||||
| (in months) | ||||
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 | |||
May 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.