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): June 28, 2006

Federal National Mortgage Association

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 5.02. Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers.

     (b)  On June 28, 2006, Donald B. Marron resigned from the Board of Directors of Fannie Mae (formally, the Federal National Mortgage Association), effective July 31, 2006. Mr. Marron felt it was important to stay on the Board of Directors through the Paul, Weiss investigation and the Office of Federal Housing Enterprise Oversight (“OFHEO”) special examination, which are now complete. Mr. Marron has been and will remain very supportive of Fannie Mae’s affordable housing mission and the financial stability of the company.

Item 7.01. Regulation FD Disclosure.

     On June 29, 2006, Fannie Mae issued its monthly financial summary release for the month of May 2006. 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 Exhibit 99.1 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 document.

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:    June 30, 2006

EXHIBIT INDEX

The following exhibit is submitted herewith:

Exhibit Number		Description of Exhibit
99.1		Monthly summary release for May 2006 issued by Fannie Mae on June 29, 2006

EXHIBIT 99.1

FANNIE MAE
MONTHLY SUMMARY

MAY 2006

HIGHLIGHTS FOR MAY INCLUDE:

•		The gross mortgage portfolio balance was $733.8 billion in May. We currently estimate that our “mortgage portfolio” assets for purposes of the OFHEO consent agreement were approximately $724 billion in May. (For a discussion of the differences between these measures see Portfolio Note on page 2.)
•		Fannie Mae’s book of business grew at a compound annualized rate of 5.9 percent in May compared with 7.3 percent in April.
•		Total business volume was $47.9 billion, compared with $52.1 billion the previous month.
•		Lender-originated MBS issues were $35.5 billion. Outstanding MBS grew at a 6.0 percent compound annualized rate in May.
•		Net retained commitments decreased to $12.2 billion in May, compared with $17.4 billion the previous month.
•		The conventional single-family delinquency rate (90 days or more delinquent) fell three basis points in April to 0.64 percent. The multifamily delinquency rate (60 days or more delinquent) fell eight basis points to 0.18 percent.
•		The duration gap on Fannie Mae’s portfolio averaged zero months in May.

MORTGAGE MARKET HIGHLIGHTS:

•

Total residential mortgage debt outstanding (MDO) grew at a compound annualized rate of 12.5 percent to a level of $10.1 trillion during the first quarter of 2006.

		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 2005		$	808,579				(25.2	%)		$	1,485,149				17.9	%		$	2,293,728				0.2	%
July 2005			789,141				(25.3	%)			1,498,717				11.5	%			2,287,858				(3.0	%)
August 2005			768,636				(27.1	%)			1,520,943				19.3	%			2,289,579				0.9	%
September 2005			728,187				(47.7	%)			1,573,810				50.7	%			2,301,997				6.7	%
October 2005			717,618				(16.1	%)			1,587,014				10.6	%			2,304,632				1.4	%
November 2005			715,896				(2.8	%)			1,594,277				5.6	%			2,310,172				2.9	%
December 2005			727,545				21.4	%			1,598,079				2.9	%			2,325,624				8.3	%
Full year 2005		$	727,545				(19.6	%)		$	1,598,079				13.9	%		$	2,325,624				0.8	%
January 2006		$	725,661				(3.1	%)		$	1,613,005				11.8	%		$	2,338,666				6.9	%
February 2006			721,189				(7.1	%)			1,630,900				14.2	%			2,352,089				7.1	%
March 2006			721,544				0.6	%			1,644,793				10.7	%			2,366,337				7.5	%
April 2006			730,367				15.7	%			1,649,919				3.8	%			2,380,286				7.3	%
May 2006			733,786				5.8	%			1,657,987				6.0	%			2,391,773				5.9	%
YTD 2006		$	733,786				2.1	%		$	1,657,987				9.2	%		$	2,391,773				7.0	%

		MBS
						Fannie Mae				MBS Issues
		Lender-originated				MBS				Acquired				Portfolio				Business
		Issues 5/				Purchases 6/				by Others				Purchases				Volume
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
February 2006			34,416				821				33,595				11,417				45,012
March 2006			34,236				1,073				33,162				14,165				47,327
April 2006			36,968				7,926				29,042				23,042				52,084
May 2006			35,494				6,341				29,153				18,704				47,857
YTD 2006		$	182,638			$	18,768			$	163,870			$	79,527			$	243,397

														Mortgage
		Net Retained												Portfolio
		Commitments 7/				Purchases				Purchase Yield 8/				Sales
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
February 2006			9,704				11,417				5.68	%			5,142
March 2006			16,584				14,165				5.76	%			2,547
April 2006			17,378				23,042				5.47	%			2,436
May 2006			12,186				18,704				5.88	%			3,729
YTD 2006		$	65,039			$	79,527				5.63	%		$	15,628

1/		Represents unpaid principal balance.
2/		Excludes mark-to-market adjustments for available for sale securities, allowance for loan losses and unamortized premiums and discounts. Includes $333 billion of Fannie Mae MBS as of May 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 $1,528 million in May 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/
June 2005		$	18,502				27.13	%		$	29,243				23.79	%			0.30	%			1.69	%			0.57	%			0.10	%
July 2005			19,575				29.41	%			34,429				27.69	%			0.32	%			1.74	%			0.59	%			0.08	%
August 2005			19,624				30.23	%			34,976				27.80	%			0.32	%			1.76	%			0.59	%			0.08	%
September 2005			19,468				31.22	%			37,036				28.72	%			0.33	%			1.78	%			0.61	%			0.09	%
October 2005			16,407				27.23	%			32,350				24.56	%			0.35	%			1.86	%			0.64	%			0.24	%
November 2005			15,247				25.53	%			31,156				23.50	%			0.46	%			2.11	%			0.77	%			0.27	%
December 2005			14,318				23.81	%			28,167				21.18	%			0.47	%			2.14	%			0.79	%			0.27	%
Full year 2005		$	211,416				26.24	%		$	368,067				24.59	%
January 2006		$	12,405				20.49	%		$	25,765				19.26	%			0.45	%			2.12	%			0.77	%			0.27	%
February 2006			10,843				17.99	%			20,830				15.41	%			0.43	%			2.05	%			0.74	%			0.27	%
March 2006			11,366				18.91	%			21,433				15.70	%			0.39	%			1.85	%			0.67	%			0.26	%
April 2006			11,895				19.66	%			26,149				19.05	%			0.37	%			1.79	%			0.64	%			0.18	%
May 2006			11,669				19.13	%			22,707				16.47	%
YTD 2006		$	58,178				19.21	%		$	116,885				17.18	%

		Effective
		Duration Gap 7/
		(in months)
June 2005			0
July 2005			1
August 2005			0
September 2005			1
October 2005			1
November 2005			0
December 2005			0
January 2006			0
February 2006			0
March 2006			0
April 2006			1
May 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 guaranty business.
		Numbers may not sum due to rounding.

We expect that some of the information in this monthly summary report will change when the financial statements and related audits for the relevant periods are completed. 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. Information regarding the restatement of our financial statements may be found in Forms 8-K Fannie Mae filed with the Securities and Exchange Commission, including Forms 8-K filed on March 13, 2006 and May 9, 2006.

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