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) — Q2 2009 Earnings Presentation
18 slides from Federal National Mortgage Association's earnings presentation, Aug 7, 2009
Slide 1: 2009 Second Quarter Credit Supplement
Fannie Mae 2009 Second Quarter Credit Supplement August 6, 2009
Slide 2: Presentation notes and forward-looking statements
These materials present tables and other information about Fannie Mae, including information contained in Fannie Mae’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2009, the “2009 Q2 Form 10-Q.” Some of the terms used in these materials are defined and discussed more fully in the 200
Slide 3: Table of Contents
Table of Contents Slide Home Price Growth/Decline Rates in the U.S. 3 Home Price Declines Peak-to-Current (by State) as of 2009 Q2 4 Fannie Mae Credit Profile by Key Product Features 5 Fannie Mae Credit Profile by Vintage and Key Product Features 6 Fannie Mae Single-Family Cumulative Default Rate 7
Slide 4: Home Price Growth/Decline Rates in the U.S.
Home Price Growth/Decline Rates in the U.S. Fannie Mae Home Price Index 15% 11.4% 10.5% 10% 8.1% 7.4% 6.7% 5.7% 5% 2.7% 0% Forecast -5% -3.8% -10% -10.0% -7% to -12% -15% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 S&P/Case-Shiller Index 9.8% 7.7% 10.6% 10.7% 14.6% 14.7% -0.3% -8.7% - -18.2% G
Slide 5: Home Price Declines Peak-to-Current (by State) as of 2009 Q2
Home Price Declines Peak-to-Current (by State) as of 2009 Q2 Percentage of Fannie Mae’s Single-Family Conventional Mortgage Credit Book of Business United States -16.1% Mountain AK -3.0% - -24.5% West North Central 0.2% 9.1% -6.3% East North Central New England WA 5.2% -15.9% -14.3% NH - -15.1% 3.4%
Slide 6: Credit Profile by Key Product Features
Fannie Mae Credit Profile by Key Product Features Credit Characteristics of Single-Family Conventional Mortgage Credit Book of Business Categories Not Mutually Exclusive (1) Loans with Loans with FICO < 620 Negative- Loans with Loans with Original LTV and Original Sub-total of Amortizing Interest-On
Slide 7: Credit Profile by Vintage and Key Product Features
Fannie Mae Credit Profile by Vintage and Key Product Features Credit Characteristics of Single-Family Conventional Mortgage Credit Book of Business by Vintage Vintages Overall 2004 and As of June 30, 2009 2009 2008 2007 2006 2005 Book Earlier Unpaid Principal Balance (billions) (1) $2,744.2 $329.2 $
Slide 8: Single-Family Cumulative Default Rate
Fannie Mae Single-Family Cumulative Default Rate Overall Originations from 2000 through 2009 Q2 2.20% 2006 2.00% 1.80% 1.60% 2007 2005 1.40% 2000 2000 2001 1.20% 2002 2004 2001 2003 1.00% 2004 2002 0.80% 2005 Cumulative Default Rate 2003 2006 0.60% 2007 0.40% 2008 0.20% 2008 0.00% Yr1-Q1 Yr1-Q2 Yr1-
Slide 9: Credit Profile by State
Fannie Mae Credit Profile by State Credit Characteristics of Single-Family Conventional Mortgage Credit Book of Business by State Overall As of June 30, 2009 AZ CA FL MI NV OH Book Unpaid Principal Balance (billions) (1) $2,744.2 $77.1 $457.0 $198.1 $78.1 $35.4 $72.2 Share of Single-Family Conventio
Slide 10: Single-Family Serious Delinquency Rates by State and Region
Fannie Mae Single-Family Serious Delinquency Rates by State and Region Serious Delinquency Rates by State June 30, 2008 September 30, 2008 December 31, 2008 March 31, 2009 June 30, 2009 Arizona 1.51% 2.14% 3.41% 5.00% 6.54% California 1.05% 1.44% 2.30% 3.33% 4.23% Florida 3.21% 4.37% 6.14% 8.07% 9.7
Slide 11: Home Price Growth/Decline and REO in Selected States
Home Price Growth/Decline and Fannie Mae Real Estate Owned (REO) in Selected States REO Acquisitions (Number of Properties) 5-Year REO REO 1-Year HP Annualized Inventory Inventory Growth State HP Growth as of June as of June July 2008 to 2007 2008 2008 Q3 2008 Q4(1) 2009 Q1(1) 2009 Q2(1) July 2004 t
Slide 12: Alt-A Credit Profile by Key Product Features
Fannie Mae Alt-A Credit Profile by Key Product Features Credit Characteristics of Alt-A Single-Family Mortgage Credit Book of Business by Vintage Vintage (1) 2004 and As of June 30, 2009 Alt-A 2008 2007 2006 2005 Earlier Unpaid principal balance (billions) (2) $269.3 $6.8 $70.4 $76.1 $50.9 $65.1 Sha
Slide 13: Alt-A Loans Versus Loans Underlying Private-Label Alt-A Securities
Fannie Mae Alt-A Loans Versus Loans Underlying Private-Label Alt-A Securities Fannie Mae Alt-A Versus Private-Label Security Conforming Alt-A Cumulative Default Rates For Fannie Mae Alt-A And Private-Label Alt-A For 2005, 2006 and 2007 Cohorts (2)(3) Fannie Mae Alt-A Private-Label Alt-A 10% Outstand
Slide 14: Workouts by Type
Fannie Mae Workouts by Type 50,000 45,000 40,000 35,000 Loans 30,000 of 25,000 Number 20,000 15,000 10,000 5,000 0 2008 Q2 2008 Q3 2008 Q4 2009 Q1 2009 Q2 Modifications HomeSaver Advance TMTM Repayment Plans Completed Forbearances Completed Deeds-in-Lieu Preforeclosure Sales (1) Modifications involv
Slide 15: Home Affordable Modification Program (HAMP)
Home Affordable Modification Program (HAMP) Details first announced in March 2009. Applies to loans owned or guaranteed by Fannie Mae or Freddie Mac, and non-agency loans meeting the HAMP eligibility requirements. Aimed at helping borrowers either currently delinquent or at imminent risk of default.
Slide 16: Modifications of Single-Family Delinquent Loans
Fannie Mae Modifications of Single-Family Delinquent Loans Re-performance Rates of Modified Change in Monthly Principal and Single Family Loans(1) Interest Payment(1)(2) 100% % Current and Performing* Q2 2008 Q3 2008 Q4 2008 Q1 2009 90% 80% 3 Months post 70% modification 48% 45% 55% 62% 60% 50% 6 mo
Slide 17: Multifamily Loan Attributes
Fannie Mae Multifamily Credit Profile by Loan Attributes Unpaid Principal Balance Share of Multifamily Guaranty As of June 30, 2009 (Billions) Book of Business % Seriously Delinquent (3) Total Multifamily Guaranty Book of Business (1) (2) $176.69 100% 0.51% Originating loan-to-value ratio: Less than
Slide 18: Multifamily Acquisition Year
Fannie Mae Multifamily Credit Profile by Acquisition Year 1.20% Serious Delinquency Rates by Acquisition Year 1.00% 2007 0.80% 0.60% 2006 SDQ Rate 0.40% 2008 2005 2002-2004 0.20% 0.00% Year Year Year Year Year Year 0 1 2 3 4 5 Year Relative to Acquisition 2002-2004 2005 2006 2007 2008 Unpaid Princip