Federal National Mortgage Association · OTC:FNMA
Federal National Mortgage Association — Federal National Mortgage Association Fannie MAE (Fnma, Fnmag, Fnmah, Fnmai, Fnmaj, Fnmak, Fnmal, Fnmam, Fnman, Fnmao, Fnmas, Fnmat, Fnmfm, Fnmfn) — Q3 2018 Earnings Presentation
25 slides from Federal National Mortgage Association's earnings presentation, Nov 2, 2018
Slide 1: Fannie Mae Quarterly Financial Supplement Q3 2018
Exhibit 99.2 FannieMae Quarterly FinancialSupplement Q32018 N ovem ber 2, 2018November 2, © 2018 Fannie Mae. Trademarks of Fannie Mae.Fannie TrademarksMae.of © Fannie 2018
Slide 2: Notes and terms used in presentation
§ Some of the terms and other information in this presentation are defined and discussed more fully in Fannie Mae’s Form 10-Q for the quarter ended September 30, 2018 (“Q3 2018 10-Q”) and Form 10-K for the year ended December 31, 2017 (“2017 Form 10-K”). This presentation should be reviewed together
Slide 3: Table of Contents
Table of Contents Financial Overview Corporate Financial Highlights 4 Market Liquidity 5 Key Market Economic Indicators 6 Treasury Draws and Dividend Payments 7 Single-Family Business Single-Family Highlights 9 Certain Credit Characteristics of Single-Family Loan Acquisitions 10 Certain Credit Chara
Slide 4: Financial Overview
Financial Overview © 2018 Fannie Mae. Trademarks of Fannie Mae. Q3 2018 Financial Supplement 3
Slide 5: Corporate Financial Highlights
Corporate Financial Highlights Sources of Net Interest Income and Retained Mortgage Summary of Q3 2018 Financial Results Portfolio Balance 3Q18 2Q18 Variance 100% $1,000 Net interest income $5,369 $5,377 ($8) $800 80% Fee and other income ______2_7_1_________2_3_9__________3_2_ $600 60% NNet reevvee
Slide 6: Market Liquidity
Market Liquidity Key Highlights: Providing Liquidity to the Mortgage Market Liquidity Provided Fannie Mae provided $389 billion in liquidity to the mortgage market in the first nine months of 2018, through its purchases of loans and guarantees of loans and securities, which enabled the financing of:
Slide 7: Key Market Economic Indicators
Key Market Economic Indicators (2) U.S. GDP Growth Rate and Benchmark Interest Rates Single-Family Home Price Growth Rate (3) Unemployment Rate 6.0% 5.7% 5.7% 5.7% 3.81% 6.0% 5.60% 4.0% 4.6% 5.00% 4.2% 4.70% 3.00% 3.13% 3.06% 4.10% 2.83% 3.00% 4.0% 3.70% 4.0% 2.45% 2.41% 2.17% 2.27% 2.98% 2.40% 2.60
Slide 8: Treasury Draws and Dividend Payments
Treasury Draws and Dividend Payments Treasury Draws and Dividend Payments: 2008 - YTD 2018 $180.0 $171.8 $160.0 $144.8 $140.0 $119.8 $120.0 $116.1 $100.0 ( $ ) B $80.0 i l l i o n s $60.0 $40.0 $20.0 $12.0 $9.6 $3.7 $5.4 $0.0 $0.0 $0.0 (4) Draws from2008-D20iv1i5dend payments Draws from 20D16ividend
Slide 9: Single-Family Business
Single-Family Business © 2018 Fannie Mae. Trademarks of Fannie Mae. Q3 2018 Financial Supplement 8
Slide 10: Single-Family Highlights
Single-Family Highlights (1) (1) Q3 2018 Single-Family Conventional Loan Acquisitions Conventional Guaranty Book of Business $200 $4,000 50 50 51.2 42.4 43.4 49.0 42.6 42.8 43.0 47.1 47.1 45.4 40 $4,670M $150 40 $3,000 $2,835 $2,850 $2,870 $2,877 $2,890 $134 Net interest income $128 $122 $112 $110 3
Slide 11: Certain Credit Characteristics of Single-Family Loan Acquisitions
Certain Credit Characteristics of Single-Family Loan Acquisitions YTD 2018 Acquisition Certain Credit Characteristics of Single-Family Conventional Loans Credit Profile by by Acquisition Period Certain Product Features Loans with Loans with Loans with OLTV FICO Credit DTI (1) (3) (4) Categories are
Slide 12: Certain Credit Characteristics of Single-Family Conventional Guaranty Book of Business
Certain Credit Characteristics of Single-Family Conventional Guaranty Book of Business Certain Credit Characteristics of Single-Family Conventional Guaranty Book of Business by Origination Year and Product Features(5) Origination Year Certain Product Features (1) (3) As of September 30, 2018 Loans w
Slide 13: Single-Family Credit Risk Transfer
Single-Family Credit Risk Transfer Single-Family Loans Included in Credit Risk Transfer Single-Family Loans with Credit Enhancement Transactions, Balance of Covered Loans $1,500 38% 40% 2016 2017 YTD 2018 Percent of Percent of Percent of 32% Credit Enhancement Outstanding Book Outstanding Book Outst
Slide 14: Single-Family Problem Loan Statistics
Single-Family Problem Loan Statistics (10) Single-Family Serious Delinquency Rate by State as of September 30, 2018 WA ND WA ND MT MT MN MN ME ME SD WI SD WI OR ID NH AK AK OR ID NH WY MI NY WY MI NY Top 10 States by UPB IA MA IA MA NE NE (14) PA PA Serious Average OH NJ OH NJ IL IN IL IN Delinquenc
Slide 15: Credit Loss Concentration of Single-Family Conventional Guaranty Book of Business
Credit Loss Concentration of Single-Family Conventional Guaranty Book of Business (18) (17) % of Single-Family Credit Losses % of Single-Family Conventional Guaranty Book of Business For the Period Ended Certain Product Features Categories are not mutually exclusive 2014 2015 2016 2017 YTD 2018 2014
Slide 16: Single-Family Cumulative Default Rates
Single-Family Cumulative Default Rates (19) Cumulative Default Rates of Single-Family Conventional Guaranty Book of Business by Origination Year 2007 2006 14.0% 12.0% 10.0% 2005 8.0% C u m 6.0% 2008 u l a t i v e D 2004 e f a 4.0% u l t R a t e 2003 2.0% 2009 2010 2014 2012 2011 2015 2013 2002 2018
Slide 17: Multifamily Business
Multifamily Business © 2018 Fannie Mae. Trademarks of Fannie Mae. Q3 2018 Financial Supplement 16
Slide 18: Multifamily Highlights
Multifamily Highlights (1) Q3 2018 Acquisitions Guaranty Book of Business $400 100% $20.3 $20.0 96% 96% 97% 97% 97% $18.2 $296.1 80% $699M $16.2 $300 $277.3 $281.3 $287.6 $265.4 Net interest income $15.0 $14.5 60% $11.3 $200 $10.0 40% U U L P P e B B $100 n d ( ( $5.0 $192M e $ $ 20% r ) ) R B B i i
Slide 19: Certain Credit Characteristics of Multifamily Acquisitions
Certain Credit Characteristics of Multifamily Acquisitions Certain Credit Chacteristics of Multifamily Loans by Acquisition Period Categories are not mutually exclusive 2014 2015 2016 2017 YTD 2018 Total Unpaid Principal Balance (UPB) ($B) $28.9 $42.4 $55.3 $67.1 $44.0 Weighted Average Origination L
Slide 20: Certain Credit Characteristics of Multifamily Guaranty Book of Business
Certain Credit Characteristics of Multifamily Guaranty Book of Business Certain Credit Characteristics of Multifamily Book of Business by Acquisition Year, Asset Class, or Targeted Affordable Segment Acquisition Year Asset Class or Targeted Affordable Segment (1) As of September 30, 2018 Overall 200
Slide 21: Multifamily Serious Delinquency Rates and Credit Losses
Multifamily Serious Delinquency Rates and Credit Losses (4) (9) DUS/Non-DUS Cumulative Credit Loss Rates by Acquisition Year Through YTD 2018 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD 2018 2.0% 1.5% 1.4% 1.2% 1.1% 1.0% 0.9% 0.9% 0.9% 0.8% 0.7% C r e d 0.5% i 0.5%
Slide 22: Endnotes
Endnotes © 2018 Fannie Mae. Trademarks of Fannie Mae. Q3 2018 Financial Supplement 21
Slide 23: Financial Overview Endnotes
Financial Overview Endnotes (1) Guaranty fee income includes the impact of a 10 basis point guaranty fee increase implemented in 2012 pursuant to the Temporary Payroll Tax Cut Continuation Act of a 2011, the incremental revenue from which is remitted to Treasury and not retained by the company. (2)
Slide 24: Single-Family Business Endnotes
Single-Family Business Endnotes (1) Single-family conventional loan population consists of: (a) single-family conventional mortgage loans of Fannie Mae; (b) single-family conventional mortgage loans underlying a Fannie Mae MBS; and (c) other credit enhancements that we provide on single-family mortg
Slide 25: Multifamily Business Endnotes
Multifamily Business Endnotes (1) Our multifamily guaranty book of business consists of: (a) multifamily mortgage loans of Fannie Mae; (b) multifamily mortgage loans underlying Fannie Mae MBS; a and (c) other credit enhancements that we provide on multifamily mortgage assets. It excludes non-Fannie