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

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 7.01. Regulation FD Disclosure.

      On October 27, 2006, Fannie Mae issued its monthly financial summary release for the month of September 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 filing.

Item 9.01. Financial Statements and Exhibits.

      (d) 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.

Date: October 27, 2006

EXHIBIT INDEX

The following exhibit is submitted herewith:

Exhibit Number		Description of Exhibit
99.1		Monthly summary release for September 2006 issued by Fannie Mae on October 27, 2006

EXHIBIT 99.1

FANNIE MAE
MONTHLY SUMMARY

SEPTEMBER 2006

HIGHLIGHTS FOR SEPTEMBER INCLUDE:

•		The gross mortgage portfolio balance was $725.5 billion in September. We currently estimate that our “mortgage portfolio” assets for purposes of the OFHEO consent order were approximately $723 billion in September. (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 15.4 percent in September compared with 7.3 percent in August.
•		Total business volume rose to $66.6 billion, compared with $49.0 billion the previous month.
•		Lender-originated MBS issues were $47.0 billion, compared with $37.6 billion in August.
•		Net retained commitments were $10.4 billion in September, compared with $6.8 billion the previous month.
•		The conventional single-family delinquency rate (90 days or more delinquent) fell one basis point in August to 0.60 percent. The multifamily delinquency rate (60 days or more delinquent) rose one basis point to 0.15 percent.
•		The duration gap on Fannie Mae’s portfolio averaged zero months in September.

MORTGAGE MARKET HIGHLIGHTS:

•

The monthly average ARM share of the number of conventional applications decreased by 0.8 percentage points during September to 27.1 percent — the lowest monthly average share recorded since September 2003.

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/
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	%
June 2006			730,906				(4.6	%)			1,679,027				16.3	%			2,409,933				9.5	%
July 2006			731,439				0.9	%			1,683,451				3.2	%			2,414,890				2.5	%
August 2006			726,801				(7.3	%)			1,702,373				14.4	%			2,429,173				7.3	%
September 2006			725,530				(2.1	%)			1,732,818				23.7	%			2,458,348				15.4	%
YTD 2006		$	725,530				(0.4	%)		$	1,732,818				11.4	%		$	2,458,348				7.7	%

BUSINESS VOLUMES ($ in Millions) 1/

		MBS
						Fannie Mae				MBS Issues
		Lender-originated				MBS				Acquired				Portfolio				Business
		Issues 5/				Purchases 6/				by Others				Purchases				Volume
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
June 2006			40,547				3,073				37,474				18,697				56,171
July 2006			33,900				6,304				27,596				15,133				42,729
August 2006			37,552				4,523				33,029				15,927				48,956
September 2006			47,038				624				46,413				20,180				66,594
YTD 2006		$	341,675			$	33,293			$	308,382			$	149,465			$	457,847

MORTGAGE PORTFOLIO COMMITMENTS, PURCHASES, AND SALES ($ in Millions) 1/

		Net Retained								Purchase				Mortgage Portfolio
		Commitments 7/				Purchases				Yield 8/				Sales
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
June 2006			13,181				18,697				5.81	%			9,216
July 2006			5,950				15,133				6.23	%			2,819
August 2006			6,790				15,927				6.14	%			8,898
September 2006			10,398				20,180				6.04	%			9,698
YTD 2006		$	101,359			$	149,465				5.83	%		$	46,259

1/		Represents unpaid principal balance.
2/		Does not reflect market valuation adjustments, allowance for loan losses, impairments, unamortized premiums and discounts and the impact of consolidation of variable interest entities. Includes $310 billion of Fannie Mae MBS as of September 30, 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 $1,448 million in September 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 Conventional2												Multifamily
		Liquidations								Liquidations								Non-Credit				Credit
		Amount				Annual Rate				Amount				Annual Rate				Enhancement 3/				Enhancement 4/				Total 5/				Total 6/
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	%			0.35	%			1.74	%			0.62	%			0.14	%
June 2006			12,480				20.45	%			25,089				18.04	%			0.35	%			1.70	%			0.60	%			0.19	%
July 2006			11,901				19.53	%			25,517				18.21	%			0.35	%			1.73	%			0.61	%			0.14	%
August 2006			11,791				19.41	%			22,416				15.89	%			0.34	%			1.73	%			0.60	%			0.15	%
September 2006			11,879				19.63	%			24,594				17.18	%
YTD 2006		$	106,229				19.47	%		$	214,501				17.24	%

AVERAGE INVESTMENT BALANCES

INTEREST RATE RISK DISCLOSURE

		Effective
		Duration Gap 7/
		(in months)
October 2005			1
November 2005			0
December 2005			0
January 2006			0
February 2006			0
March 2006			0
April 2006			1
May 2006			0
June 2006			-1
July 2006			-1
August 2006			-1
September 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, May 9, 2006 and August 9, 2006.

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