Federal National Mortgage Association · OTC:FNMA
Federal National Mortgage Association — Fannie Mae — Lehman Brothers Financial Services Conference 2007
11 slides from Federal National Mortgage Association's conference presentation, Sep 10, 2007
Slide 1: Lehman Brothers Financial Services Conference
Lehman Brothers Financial Services Conference Tom Lund, Executive Vice President Single-Family Mortgage Business September 10, 2007
Slide 2: Unsustainable Home Price Appreciation
Unsustainable Home Price Appreciation Five-Year Cumulative Home Price Growth (Q4’00 – Q4’05) Canada Mexico Source: Fannie Mae 13% - 25% 25% - 50% 50% - 75% 75% - 100% 100% - 160%
Slide 3: Substantial Declines in Housing Affordability
Substantial Declines in Housing Affordability Affordability Index (1996 - 2006) 140 25-Year High = 133 135 Composite Affordability Index 130 125 120 115 110 105 100 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Source: National Association of Realtors
Slide 4: Increased ARM Share of Mortgage Applications
Increased ARM Share of Mortgage Applications ARM Share of Mortgage Applications by Loan Count (January 2001 – January 2006) 40% 35% 30% 25% 20% 15% 10% 5% 0% Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Source: Mortgage Bankers’ Association of America Weekly Mortgage Application Survey
Slide 5: Surge in Subprime and Alt-A Originations
Surge in Subprime and Alt-A Originations as a Percentage of Total Single-Family First-Lien Originations 25% Subprime Share 21% Dollar Volume Share of Originations 21% Alt-A Share 20% 18% 15% 15% 13% 10% 8% 7% 7% 5% 2% 2% 0% 2002 2003 2004 2005 2006 Source: Inside Mortgage Finance and Fannie Mae esti
Slide 6: A Changed Market
A Changed Market Single-Family Home Price Growth (Q2’06 – Q2’07) State Growth Rate Below -5% -5% - 0% 0% - 5% 5% to 10% Above 10% Source: Fannie Mae
Slide 7: Characteristics of Fannie Mae Single-Family Conventional Mortgage Credit Book of Business
Characteristics of Fannie Mae Single-Family Conventional Mortgage Credit Book of Business June 30, 2007 Single-Family Conventional Mortgage Credit Book of Business $2.3 Trillion Weighted Average FICO 722 Weighted Average Original LTV 71% Weighted Average MTM LTV 57% Product Types* Loan Purpose* Nega
Slide 8: Fannie Mae Subprime and Alt-A Exposure
Fannie Mae Subprime and Alt-A Exposure Subprime Alt-A Total Exposure of $55.2 Billion Total Exposure of $345.2 Billion (2.2% of SF Mortgage Credit Book of Business) (13% of SF Mortgage Credit Book of Business) PLS Wrap $2.9B PLS Portfolio Purchased or Investment Guaranteed $34.5B Loans $5.1B PLS Wra
Slide 9: Fannie Mae Market Share of Mortgage-Related Securities Issuance
Fannie Mae Market Share of Mortgage-Related Securities Issuance (July 2003 – July 2007) 50% 40% 30% 20% 10% 0% Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Oct-03 Oct-04 Oct-05 Oct-06 Apr-04 Apr-05 Apr-06 Apr-07 Source: Inside MBS&ABS and Fannie Mae
Slide 10: Fannie Mae Actions to Support the Market
Fannie Mae Actions to Support the Market z Increasing liquidity for our business partners: Helping our customers clear out their pipelines of unsold loans previously earmarked for private label execution. z Helping our multifamily lenders work through their pricing and liquidity issues. z Homestay
Slide 11: Forward Looking Statements
Forward Looking Statements Certain statements made in these presentation materials or during the presentation may be considered forward-looking statements within the meaning of the federal securities laws. These statements include those relating to Fannie Mae’s future performance; trends and expecta
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