Federal National Mortgage Association (FNMA) 10-K 2014 FY Annual report

Exhibit 12.1

FANNIE MAE

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in millions)

	For the Year Ended December 31,
	2014			2013			2012			2011			2010
Earnings:
Net income (loss)(1)	$	14,209		$	83,982		$	17,220		$	(16,855	)	$	(14,018	)
Add:
Total interest expense	94,437			95,145			107,689			123,662			137,861
Provision (benefit) for federal income taxes(2)	6,941			(45,415		)	—			(90		)	(82		)
(Gains) losses from partnership investments	(268		)	(518		)	(120		)	(81		)	74
Capitalized interest	3			1			1			1			—
Earnings, as adjusted	$	115,322		$	133,195		$	124,790		$	106,637		$	123,835
Fixed charges:
Total interest expense	94,437			95,145			107,689			123,662			137,861
Capitalized interest	3			1			1			1			—
Total fixed charges	$	94,440		$	95,146		$	107,690		$	123,663		$	137,861
Ratio of earnings to fixed charges	1.22:1			1.40:1			1.16:1			0.86:1			0.90:1
(Surplus) deficiency	(20,882		)	(38,049		)	(17,100		)	17,026			14,026

__________

⁽¹⁾  Reflects the adoption of accounting standard requiring noncontrolling interest to be classified as a separate component of equity.

⁽²⁾  In 2013, we released the substantial majority of the valuation allowance for our net deferred tax assets that resulted in the recognition of a benefit for federal income taxes of $45.4 billion in our consolidated statement of operations and comprehensive income for the year ended December 31, 2013.