Federal National Mortgage Association (FNMA) 8-K Results of Operations and Financial Condition

EXHIBIT 99.1

FANNIE MAE
MONTHLY SUMMARY

October 2004

HIGHLIGHTS FOR OCTOBER INCLUDE:

• Fannie Mae’s book of business grew at an annual rate of 9.5 percent in October compared with 9.9 percent in September.

• The mortgage portfolio grew at a 12.2 percent annual rate in October.

• October mortgage portfolio purchases were $27.1 billion. Portfolio purchases included a higher proportion of hybrid ARMs and Aaa Libor floaters, reflecting a continued shift in the mix of mortgage originations.

• Retained commitments were $19.4 billion in October.

• Outstanding MBS grew at a 7.7 percent annual rate in October. October growth in outstanding MBS was affected by a high ARM share and strong private label issuance. Private label issuance continued to be driven by sub-prime and Alt-A product, and also included an increasing proportion of ARM, IO ARM and investor product.

• The duration gap on Fannie Mae’s mortgage portfolio averaged zero months in October.

• The conventional single-family delinquency rate rose one basis point to 0.59 percent in September, while the multifamily delinquency rate fell one basis point to 0.12 percent.

MORTGAGE MARKET HIGHLIGHTS:

• According to the MBA Survey, October’s ARM share rose to 35.6 percent from 34.1 percent in September.

BUSINESS BALANCES AND GROWTH ($ in Millions) 1/

	Mortgage Portfolio, Gross 2/					Outstanding MBS 3/					Book of Business
	End Balance		Growth Rate 4/			End Balance		Growth Rate 4/			End Balance		Growth Rate 4/
November 2003	$	906,387		(7.9	%)	$	1,264,673		26.8	%	$	2,171,060		10.8	%
December 2003		898,445		(10.0	%)		1,300,166		39.4	%		2,198,611		16.3	%
Full year 2003	$	898,445		13.1	%	$	1,300,166		26.3	%	$	2,198,611		20.6	%
January 2004	$	886,730		(14.6	%)	$	1,318,711		18.5	%	$	2,205,441		3.8	%
February 2004		882,124		(6.1	%)		1,335,714		16.6	%		2,217,838		7.0	%
March 2004		880,911		(1.6	%)		1,345,892		9.5	%		2,226,803		5.0	%
April 2004		880,481		(.6	%)		1,353,399		6.9	%		2,233,880		3.9	%
May 2004		878,386		(2.8	%)		1,354,160		0.7	%		2,232,546		(.7	%)
June 2004		891,210		19.0	%		1,360,045		5.3	%		2,251,255		10.5	%
July 2004		892,724		2.1	%		1,363,317		2.9	%		2,256,041		2.6	%
August 2004		895,428		3.7	%		1,368,918		5.0	%		2,264,345		4.5	%
September 2004		904,543		12.9	%		1,377,680		8.0	%		2,282,223		9.9	%
October 2004		913,246		12.2	%		1,386,272		7.7	%		2,299,518		9.5	%
YTD 2004	$	913,246		2.0	%	$	1,386,272		8.0	%	$	2,299,518		5.5	%

BUSINESS VOLUMES ($ in Millions) 1/

	MBS
					Total		Fannie Mae		MBS Issues
	Single-family		Multifamily		Lender-originated		MBS		Acquired		Portfolio		Business
	Issues		Issues		Issues 5/		Purchases 6/		by Others		Purchases		Volume
November 2003	$	56,840	$	3,657	$	60,497	$	2,888	$	57,609	$	17,596	$	75,205
December 2003		56,598		4,265		60,863		1,226		59,637		13,775		73,412
Full year 2003	$	1,175,599	$	23,018	$	1,198,617	$	348,413	$	850,204	$	572,852	$	1,423,056
January 2004	$	44,289	$	505	$	44,794	$	268	$	44,527	$	8,573	$	53,100
February 2004		38,605		200		38,804		181		38,624		12,170		50,794
March 2004		44,345		1,019		45,365		6,507		38,858		20,260		59,118
April 2004		56,117		424		56,541		10,198		46,344		27,448		73,792
May 2004		57,629		931		58,559		10,670		47,889		26,686		74,575
June 2004		52,981		711		53,692		13,330		40,362		37,164		77,526
July 2004		38,719		916		39,636		5,676		33,960		21,618		55,578
August 2004		34,685		276		34,961		4,676		30,285		21,787		52,072
September 2004		40,647		224		40,870		5,074		35,796		27,661		63,457
October 2004		37,594		694		38,289		3,665		34,623		27,142		61,766
YTD 2004	$	445,611	$	5,901	$	451,512	$	60,244	$	391,268	$	230,511	$	621,779

MORTGAGE PORTFOLIO COMMITMENTS, PURCHASES, AND SALES ($ in Millions) 1/

			Purchases									Mortgage
	Retained		Single-				Total					Portfolio
	Commitments		family		Multifamily		Purchases		Net Yield 7/			Sales
November 2003	$	13,104	$	16,540	$	1,056	$	17,596		4.20	%	$	1,452
December 2003		8,057		12,249		1,526		13,775		4.96	%		2,875
Full year 2003	$	489,073	$	559,669	$	13,183	$	572,852		5.00	%	$	13,727
January 2004	$	11,696	$	7,996	$	577	$	8,573		4.77	%	$	2,025
February 2004		12,576		11,834		337		12,170		3.68	%		1,326
March 2004		29,411		19,406		854		20,260		4.53	%		1,023
April 2004		28,860		25,997		1,451		27,448		4.37	%		1,583
May 2004		28,389		25,461		1,226		26,686		4.55	%		885
June 2004		29,668		34,775		2,389		37,164		4.44	%		1,695
July 2004		19,504		20,667		950		21,618		4.44	%		681
August 2004		24,683		20,747		1,040		21,787		4.14	%		1,932
September 2004		30,783		24,193		3,468		27,661		3.61	%		1,195
October 2004		19,356		23,109		4,034		27,142		3.59	%		941
YTD 2004	$	234,927	$	214,186	$	16,325	$	230,511		4.20	%	$	13,286

1/	Represents unpaid principal balance.
2/	Excludes mark-to-market adjustments, deferred balances and allowance for losses. Includes $509 billion of Fannie Mae MBS as of October 31, 2004.
3/	MBS held by investors other than Fannie Mae’s portfolio.
4/	Growth rates are compounded.
5/	Excludes MBS issued from Fannie Mae’s portfolio, which was $939 million in October 2004.
6/	Included in total portfolio purchases.
7/	Yields shown on a taxable-equivalent basis.
	Numbers may not foot due to rounding.

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LIQUIDATIONS ($ in Millions) 1/											DELINQUENCY RATES
	Mortgage Portfolio Liquidations					Outstanding MBS Liquidations					Single-family Conventional 2/
											Non-Credit			Credit						Multifamily
	Amount		Annual Rate			Amount		Annual Rate			Enhancement 3/			Enhancement 4/			Total 5/			Total 6/
November 2003	$	22,438		29.60	%	$	34,214		32.78	%		0.30	%		1.63	%		0.59	%		0.13	%
December 2003		18,859		25.08	%		26,301		24.61	%		0.30	%		1.65	%		0.60	%		0.27	%
Full year 2003	$	451,487		53.29	%	$	591,351		50.15	%
January 2004	$	18,274		24.57	%	$	27,717		25.40	%		0.31	%		1.70	%		0.61	%		0.24	%
February 2004		15,419		20.92	%		22,948		20.75	%		0.31	%		1.70	%		0.61	%		0.24	%
March 2004		20,444		27.83	%		29,702		26.58	%		0.30	%		1.62	%		0.58	%		0.17	%
April 2004		26,086		35.54	%		40,419		35.94	%		0.29	%		1.58	%		0.56	%		0.16	%
May 2004		27,917		38.09	%		48,013		42.56	%		0.29	%		1.61	%		0.57	%		0.14	%
June 2004		22,783		30.90	%		36,063		31.89	%		0.29	%		1.62	%		0.57	%		0.14	%
July 2004		19,467		26.19	%		31,363		27.64	%		0.29	%		1.65	%		0.57	%		0.13	%
August 2004		17,179		23.06	%		26,442		23.23	%		0.30	%		1.67	%		0.58	%		0.13	%
September 2004		17,361		23.15	%		27,168		23.74	%		0.30	%		1.72	%		0.59	%		0.12	%
October 2004		17,529		23.14	%		26,970		23.42	%
YTD 2004	$	202,457		27.26	%	$	316,805		28.13	%

AVERAGE INVESTMENT BALANCES ($ in Millions)

	Net		Liquid		Total Net
	Mortgages		Investments		Investments
November 2003	$	902,601	$	63,262	$	965,863
December 2003		898,858		65,966		964,824
Full year 2003	$	839,171	$	75,114	$	914,286
January 2004	$	888,908	$	68,830	$	957,738
February 2004		883,892		63,749		947,641
March 2004		876,205		66,996		943,201
April 2004		870,446		75,787		946,232
May 2004		866,855		82,711		949,567
June 2004		873,386		71,698		945,084
July 2004		883,135		63,078		946,213
August 2004		887,471		64,853		952,324
September 2004		895,590		69,256		964,846
October 2004		903,065		61,445		964,510
YTD 2004	$	882,895	$	68,840	$	951,736

INTEREST RATE RISK DISCLOSURES

			Rate Level Shock (50bp) 8/						Rate Slope Shock (25bp) 8/
	Effective		1 Year Portfolio			4 Year Portfolio			1 Year Portfolio			4 Year Portfolio
	Duration Gap 7/		Net Interest			Net Interest			Net Interest			Net Interest
	(in months)		Income at Risk			Income at Risk			Income at Risk			Income at Risk
November 2003		-1		3.7	%		2.7	%		3.7	%		6.1	%
December 2003		-1		2.6	%		2.1	%		3.6	%		6.1	%
January 2004		-1		0.9	%		3.1	%		3.0	%		6.4	%
February 2004		-1		1.4	%		3.3	%		3.7	%		6.7	%
March 2004		0		3.8	%		5.4	%		4.0	%		6.6	%
April 2004		3		5.0	%		5.3	%		2.9	%		5.4	%
May 2004		3		2.9	%		2.5	%		2.5	%		4.5	%
June 2004		2		1.6	%		3.5	%		2.3	%		4.1	%
July 2004		0		0.8	%		1.9	%		2.3	%		4.6	%
August 2004		-2		2.8	%		3.2	%		4.0	%		6.6	%
September 2004		-2		4.2	%		4.5	%		4.5	%		7.7	%
October 2004		0		3.4	%		3.8	%		4.5	%		7.6	%

1/	Represents unpaid principal balance.
2/	Includes conventional loans three or more months delinquent or in foreclosure process as a percent of the number of loans.
3/	Loans without primary mortgage insurance or any credit enhancements.
4/	Loans with primary mortgage insurance and other credit enhancements.
5/	Total of single-family non-credit enhanced and credit enhanced loans.
6/	Includes loans and securities 60 days or more past due and is calculated based on mortgage credit book of business.
7/	The duration gap is a weighted average for the month.
8/	Expresses projected core net interest income under the more adverse of the interest rate and yield curve scenarios as a percentage of projected net interest income without the rate shocks.
	Numbers may not foot due to rounding.
	The information presented in this report is unaudited and includes, in the opinion of management, all adjustments (consisting of normally recurring accruals) necessary for a fair presentation. The data should be read in conjunction with audited financial statements and notes to financial statements that are available from the corporation. For more information regarding Fannie Mae, please visit www.fanniemae.com or contact us at (202) 752-7115.

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