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 of incorporation)		(Commission File Number)		(IRS Employer Identification Number)

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

     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 November 28, 2006, Fannie Mae (formally, the Federal National Mortgage Association) issued its monthly financial summary release for the month of October 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: November 28, 2006

EXHIBIT INDEX

     The following exhibit is submitted herewith:

Exhibit Number		Description of Exhibit
99.1		Monthly summary release for October 2006 issued by Fannie Mae on November 28, 2006

EXHIBIT 99.1

FANNIE MAE
MONTHLY SUMMARY

October 2006

HIGHLIGHTS FOR OCTOBER INCLUDE:

•

The gross mortgage portfolio balance was $720.9 billion in October. We currently estimate that our “mortgage portfolio” assets for purposes of the OFHEO consent order were approximately $719 billion in October. (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 7.6 percent, driven by outstanding MBS which grew at a 14.4 percent compound annualized rate in October.

•

Lender-originated MBS issues were $39.1 billion, compared with $47.0 billion the previous month.

•

Total business volume was $48.7 billion, compared with $66.6 billion in September.

•

Net retained commitments were $8.0 billion in October, compared with $10.4 billion the previous month.

•

The conventional single-family delinquency rate rose one basis point in September to 0.61 percent. The multifamily delinquency rate fell four basis points to 0.11 percent.

•

The duration gap on Fannie Mae’s portfolio averaged zero months in October.

MORTGAGE MARKET HIGHLIGHT:

•

OFHEO announced that Fannie Mae’s 2007 conforming loan limit for single-family mortgages will remain unchanged at $417,000.

		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/
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	%
October 2006			720,947				(7.3	%)			1,752,414				14.4	%			2,473,361				7.6	%
YTD 2006		$	720,947				(1.1	%)		$	1,752,414				11.7	%		$	2,473,361				7.7	%

		MBS
						Fannie Mae				MBS Issues
		Lender-originated				MBS				Acquired				Portfolio				Business
		Issues 5/				Purchases 6/				by Others				Purchases				Volume
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
October 2006			39,090				3,483				35,607				13,045				48,652
YTD 2006		$	380,765			$	36,776			$	343,989			$	162,510			$	506,499

		Net Retained												Mortgage Portfolio
		Commitments 7/				Purchases				Purchase Yield 8/				Sales
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
October 2006			7,971				13,045				6.04	%			6,746
YTD 2006		$	109,330			$	162,510				5.85	%		$	53,005

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 October 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 $6,606 million in October 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/
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	%			0.35	%			1.74	%			0.61	%			0.11	%
October 2006			11,005				18.26	%			22,424				15.44	%
YTD 2006		$	117,234				19.35	%		$	236,925				17.05	%

INTEREST RATE RISK DISCLOSURE

		Effective
		Duration Gap 7/
		(in months)
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
October 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. 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.

PORTFOLIO NOTE:

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 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, August 9, 2006 and November 8, 2006.

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