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

February 24, 2006

Federal National Mortgage Association

Federally chartered corporation		000-50231		52-0883107
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification Number)

3900 Wisconsin Avenue, NW Washington, DC (Address of principal executive offices)		20016 (Zip Code)

202-752-7000

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 February 24, 2006, 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 February 27, 2006, Fannie Mae issued its monthly financial summary release for the month of January 2006. 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, or otherwise subject to the liabilities of Section 18, nor shall it be deemed incorporated by reference into any disclosure document relating to Fannie Mae, except to the extent, if any, expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

     (c) Exhibits. The exhibit index filed herewith is incorporated herein by reference.

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:     February 27, 2006

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 February 24, 2006
99.2		Monthly summary release for January 2006 issued by Fannie Mae on February 27, 2006

EXHIBIT 99.1

Fannie Mae Debt Outstanding 1/
2003 through January 31, 2006

Debt Outstanding (in Millions)		12/31/03				12/31/04				12/31/05				1/31/06
Discount Notes		$	137,528			$	143,455			$	92,924			$	84,723
Benchmark Bills			191,315				157,501				75,000				73,500
FX Discount Notes			1,540				7,630				1,818				1,211
Other Short Term 2/			15,622				11,737				2,799				3,043
Total Short Term		$	346,005			$	320,323			$	172,541			$	162,477
Short term debt average maturity (in days)			100				61				66				65
Benchmark Notes & Bonds		$	282,602			$	267,091			$	266,295			$	265,295
Callable Benchmark Notes			44,250				31,250				22,370				22,370
Subordinated Benchmark Notes			12,500				12,500				12,500				12,500
Final Maturity Amortizing Notes			—				750				1,736				1,696
Other Callable & Noncallable Notes & Bonds 3/			281,601				323,113				290,802				293,297
Total Long Term		$	620,953			$	634,704			$	593,703			$	595,158
Long term debt average maturity (in months)			54				47				48				48
Total Debt Outstanding		$	966,958			$	955,027			$	766,244			$	757,635
Total debt average maturity (in months)			36				32				38				38

EXHIBIT 99.2

FANNIE MAE
MONTHLY SUMMARY

JANUARY 2006

HIGHLIGHTS FOR JANUARY INCLUDE:

•		Fannie Mae’s book of business grew at a compound annualized rate of 6.9 percent in January, driven by outstanding MBS, which grew at an 11.8 percent compound annualized rate.
•		Total business volume was $51.1 billion, compared to $57.9 billion the previous month.
•		Lender-originated MBS issues rose to $41.5 billion from $39.6 billion the previous month.
•		Portfolio purchases of $12.2 billion were offset by portfolio liquidations of $12.4 billion and portfolio sales of $1.8 billion, which resulted in a 3.1 percent compound annualized decline in the gross mortgage portfolio.
•		The conventional single-family delinquency rate (90 days or more delinquent) rose two basis points in December to 0.79 percent. The multifamily delinquency rate (60 days or more delinquent) remained stable at 0.27 percent.
•		The duration gap on Fannie Mae’s portfolio averaged zero months in January.

MORTGAGE MARKET HIGHLIGHTS:

•

Both new and existing home sales rose to record levels in 2005 for the 5th consecutive year. New home sales totaled 1.28 million units, exceeding sales activity in 2004 by 6.6 percent, while existing home sales rose by 4.3 percent to 7.07 million units. Fannie Mae estimates that new and existing home sales will fall by about 6.8 percent and 8.5 percent, respectively, in 2006.

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/
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	%)
June 2005			808,225				(25.3	%)			1,485,149				17.9	%			2,293,374				0.2	%
July 2005			788,786				(25.3	%)			1,498,717				11.5	%			2,287,503				(3.0	%)
August 2005			768,280				(27.1	%)			1,520,943				19.3	%			2,289,223				0.9	%
September 2005			727,824				(47.8	%)			1,573,810				50.7	%			2,301,634				6.7	%
October 2005			717,254				(16.1	%)			1,587,014				10.6	%			2,304,268				1.4	%
November 2005			715,532				(2.8	%)			1,594,277				5.6	%			2,309,808				2.9	%
December 2005			727,173				21.4	%			1,598,079				2.9	%			2,325,251				8.3	%
Full year 2005		$	727,173				(19.6	%)		$	1,598,079				13.9	%		$	2,325,251				0.8	%
January 2006		$	725,287				(3.1	%)		$	1,613,005				11.8	%		$	2,338,291				6.9	%

		MBS
						Fannie Mae				MBS Issues
		Lender-originated				MBS				Acquired				Portfolio				Business
		Issues 5/				Purchases 6/				by Others				Purchases				Volume
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
June 2005			40,039				210				39,829				8,964				48,793
July 2005			43,344				207				43,138				9,365				52,502
August 2005			46,540				176				46,363				11,564				57,927
September 2005			61,013				410				60,603				10,021				70,625
October 2005			41,563				446				41,117				10,136				51,253
November 2005			37,818				1,823				35,995				16,021				52,016
December 2005			39,553				10,393				29,160				28,760				57,920
Full year 2005		$	481,260			$	15,628			$	465,632			$	146,640			$	612,272
January 2006		$	41,524			$	2,606			$	38,918			$	12,199			$	51,117

														Mortgage
		Net Retained												Portfolio
		Commitments 7/				Purchases				Purchase Yield 8/				Sales
February 2005		$	2,578			$	9,446				4.73	%		$	9,539
March 2005			9,945				11,206				4.79	%			4,806
April 2005			5,104				8,865				5.04	%			1,680
May 2005			(8,768	)			11,198				4.99	%			17,812
June 2005			(3,185	)			8,964				5.33	%			10,350
July 2005			3,858				9,365				5.43	%			9,288
August 2005			(21,943	)			11,564				5.27	%			12,507
September 2005			(403	)			10,021				5.44	%			31,071
October 2005			8,314				10,136				5.50	%			4,437
November 2005			20,084				16,021				5.17	%			2,571
December 2005			19,595				28,760				5.43	%			2,876
Full year 2005		$	35,469			$	146,640				5.16	%		$	113,295
January 2006		$	9,187			$	12,199				5.47	%		$	1,774

1/		Represents unpaid principal balance.
2/		Excludes mark-to-market adjustments, deferred balances and allowance for losses. Includes $339 billion of Fannie Mae MBS as of January 31, 2006.
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 $1,373 million in January 2006.
6/		Included in total portfolio purchases.
7/		Represents commitments to purchase, net of commitments to sell, entered into during the month, including any modifications to original amounts.
8/		Calculated as commitment yield for single-family loans, pass-thru rate for multifamily loans and coupon divided by price for securities. Yields are presented on a taxable-equivalent basis.

Numbers may not sum due to rounding.

LIQUIDATIONS ($ in Millions) 1/																		DELINQUENCY RATES
		Mortgage Portfolio								Outstanding MBS								Single-family Conventional 2/												Multifamily
		Liquidations								Liquidations								Non-Credit				Credit
		Amount				Annual Rate				Amount				Annual Rate				Enhancement 3/				Enhancement 4/				Total 5/				Total 6/
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	%			0.30	%			1.68	%			0.57	%			0.10	%
June 2005			18,502				27.14	%			29,243				23.79	%			0.30	%			1.69	%			0.57	%			0.10	%
July 2005			19,575				29.42	%			34,429				27.69	%			0.32	%			1.74	%			0.59	%			0.08	%
August 2005			19,624				30.25	%			34,976				27.80	%			0.32	%			1.76	%			0.59	%			0.08	%
September 2005			19,468				31.23	%			37,036				28.72	%			0.33	%			1.78	%			0.61	%			0.09	%
October 2005			16,407				27.25	%			32,350				24.56	%			0.35	%			1.86	%			0.64	%			0.24	%
November 2005			15,247				25.54	%			31,156				23.50	%			0.46	%			2.11	%			0.77	%			0.27	%
December 2005			14,318				23.82	%			28,167				21.18	%			0.47	%			2.14	%			0.79	%			0.27	%
Full year 2005		$	211,416				26.25	%		$	368,067				24.59	%
January 2006		$	12,405				20.50	%		$	25,765				19.26	%

		Effective
		Duration Gap 7/
		(in months)
February 2005			0
March 2005			1
April 2005			-1
May 2005			-1
June 2005			0
July 2005			1
August 2005			0
September 2005			1
October 2005			1
November 2005			0
December 2005			0
January 2006			0

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. Since October 2005, we have included non-mortgage assets and liabilities in the duration gap calculation. Our portfolio duration gap calculation excludes any interest rate sensitivity of the guarantee business.
		Numbers may not sum due to rounding.

In connection with the pending re-audit and restatement of Fannie Mae’s previously published financial statements, management is undertaking a comprehensive review of Fannie Mae’s accounting routines and controls, financial reporting process and the application of generally accepted accounting principles. While most of the information contained in this summary is not derived from Fannie Mae’s financial statements, we expect that some of this information will be impacted by the re-audit and restatement. Management believes that the information may be useful to investors for comparing current business activities with those of prior periods and for reviewing trends in our business, notwithstanding that information may change, perhaps materially, from what is reported herein. Issues under review that will cause some of this information to change include those related to securities accounting, loan accounting, consolidation and amortization. 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, May 11, 2005, August 9, 2005 and November 10, 2005.

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