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» VISIT US ONLINE @ DSNEWS.COM 51 DS News Government Progress Report k ey per sonnel Timothy J. Mayopoulos President and CEO Patricia E. Black SVP, Enterprise Project Mgmt. Office Andrew Bon Salle EVP, Single-Family Underwriting, Pricing, and Capital Markets Terry Edwards EVP, COO Joseph J. Grassi III Intermim General Counsel and Corporate Secretary Nancy Jardini SVP Brian McQuaid SVP, Chief HR Officer Zach Oppenheimer SVP, Customer Engagement David Benson EVP and CFO Pascal Boillat SVP, Operations and Technology Judith C. Dunn SVP, Principal Deputy General Counsel John Forlines SVP, Chief Audit Executive STAFFING: Number of employees: 7,200 DS News Housing Score A- CURRENT STATUS » In September 2008, at the height of the housing crisis, Fannie was placed in a conservatorship. Now the Sen- ate Banking Committee is considering replacing Fannie (and Freddie) with a federal insurance program. » Some investors and financial firms have organized an ef- fort to prevent that action. They maintain that both GSEs "need to be fixed, not thrown away." REGULATION AND OVERSIGHT » Shareholder-owned corporation with government charter » Operates under supervision of the Federal Housing Finance Agency (FHFA) » Under Conservatorship since Sept. 6, 2008 MISSION » This agency, along with Ginnie Mae, was established in 1938 as part of President Franklin Roosevelt's New Deal. It was established to provide local banks with federal money to finance mortgages in an effort to raise home ownership and affordable housing. » In 1968, Fannie Mae was converted to a privately held corporation. At this time, Fannie Mae was separated from its former partner Ginnie Mae, which remained a government entity. » Fannie Mae created a liquid secondary mortgage mar- ket and made it possible for banks and other originators to issue more housing loans, primarily by buying Federal Housing Administration (FHA) insured mortgages. » In 1954, the Federal National Mortgage Association Charter Act made Fannie Mae into a "mixed-ownership corporation." The federal government held the preferred stock, while private investors held the common stock. SUCCESSES » Despite the losses and irregularities of the past several years, Fannie Mae has made a comeback and seems to be experiencing an upswing. » In 2013, Fannie reported $84 billion in net income and $38.6 billion in pre-tax income, the highest annual income and annual pre-tax income in the company's history. » For Q1 2014, Fannie reported net income of $5.3 billion, the company's ninth consecutive quarterly profit, and comprehensive income of $5.7 billion. » During the first quarter of 2014, Fannie Mae acquired 31,896 single-family REO properties. The company's single-family foreclosure rate was 0.73 percent for Q1 2014. » Presently, 95.5 percent of FNMA single-family loans totaling $17.6M are current on payments. » Fannie expects to pay Treasury $5.7 billion in dividends in June 2014, and at this time, will have paid a total of $126.8 billion in dividends to Treasury in comparison to $116.1 billion in draw requests since 2008. OPPORTUNITIES/ISSUES » Despite Fannie and Freddie improving a bad situation, critics aren't happy. Some say the mortgage industry's reluctance to extend loans to borrowers with less-than- perfect credit has shut many Americans out of housing. » With Fannie and Freddie now being owned by the government, they are more powerful, and they're flexing their muscles by refusing to adhere to foreclosure laws. » In June 2014, Massachusetts Attorney General Martha Coakley filed suit against Fannie and Freddie and their regulator/conservator, the Federal Housing Finance Agency, to defend the state's foreclosure prevention laws. » The filing alleges that the defendants are unlawfully blocking the sale of homes to altruistic entities like Bos- ton Community Capital. » Sources report the Attorney General's actions are timely, considering Massachusetts foreclosures have increased 58 percent in one year. » Sources report that Attorney General Coakley is opening a window on the absurdity of a federal housing agency that won't hold itself to the same standards it sets for others. » In 2011, the city of Chicago sued Fannie and Freddie because they refused to honor laws that established a citywide database of vacant properties and required banks to keep their foreclosed properties in good condi- tion. Fannie and Freddie sued Chicago, claiming their nationalization exempted them from local regulations. A federal judge agreed. Provided $4.1T to the mortgage market Enabled 3.9M families to purchase a home Assisted 12.5M homeowners in refinancing Processed more than 1.5M loan workouts Present average FICO scores - 744 Fannie Mae (FNMA) | CORPORATE HEADQUARTERS: Washington, D.C., with regional offices in Atlanta, Chicago, Dallas, Pasadena, and Philadelphia. $4.1 TRILLION 3.9 MILLION 12.5 MILLION 1.5 MILLION 744 AVG. FIOC Since January 1, 2009, Fannie Mae has

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