Federal National Mortgage Association (FNMA) 8-K Fannie Mae Announces Reduction in First Quarter Common Stock Dividend as Company Builds Capital

EXHIBIT 99.2

FANNIE MAE
MONTHLY SUMMARY

December 2004

HIGHLIGHTS FOR DECEMBER INCLUDE:

•   Total business volume was $50.7 billion in December, compared with $52.7 billion the previous month.

•   Outstanding MBS grew at an 8.5 percent annualized rate in December. The growth rate for the year was 7.9 percent.

•   The mortgage portfolio declined at a 10.1 percent annualized rate in December. It grew at an annualized rate of 0.7 percent for the year.

•   Retained commitments were $9.3 billion in December compared with $11.9 billion the previous month.

•   December mortgage portfolio purchases were $13.0 billion, compared with $19.1 billion in November.

•   The conventional single-family delinquency rate rose two basis points to 0.64 percent in November. The multifamily delinquency rate fell two basis points to 0.10 percent.

•   The duration gap on Fannie Mae’s mortgage portfolio averaged a minus one month in December, for the second consecutive month.

MORTGAGE MARKET HIGHLIGHTS

•   Total single-family mortgage originations were $2.8 trillion in 2004 down from a record $3.8 trillion in 2003.

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/
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		(0.6	%)		1,353,399		6.9	%		2,233,880		3.9	%
May 2004		878,386		(2.8	%)		1,354,160		0.7	%		2,232,546		(0.7	%)
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	%
November 2004		912,608		(0.8	%)		1,393,205		6.2	%		2,305,813		3.3	%
December 2004		904,555		(10.1	%)		1,402,761		8.5	%		2,307,316		0.8	%
Full year 2004	$	904,555		0.7	%	$	1,402,761		7.9	%	$	2,307,316		4.9	%

BUSINESS VOLUMES ($ in Millions) 1/

	MBS
					Total
					Lender-		Fannie Mae		MBS Issues
	Single-family		Multifamily		originated		MBS		Acquired		Portfolio		Business
	Issues		Issues		Issues 5/		Purchases 6/		by Others		Purchases		Volume
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
November 2004		35,739		520		36,259		2,717		33,542		19,121		52,662
December 2004		38,941		434		39,375		1,642		37,732		13,016		50,748
Full year 2004	$	520,292	$	6,854	$	527,146	$	64,604	$	462,542	$	262,647	$	725,189

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

			Purchases									Mortgage
	Retained		Single-				Total					Portfolio
	Commitments		family		Multifamily		Purchases		Net Yield 7/			Sales
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
November 2004		11,887		16,634		2,486		19,121		4.16	%		1,511
December 2004		9,330		10,980		2,036		13,016		4.71	%		1,653
Full year 2004	$	256,144	$	241,800	$	20,848	$	262,647		4.22	%	$	16,449

1/	Represents unpaid principal balance.
2/	Excludes mark-to-market adjustments, deferred balances and allowance for losses. Includes $493 billion of Fannie Mae MBS as of December 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 $1,346 million in December 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					Outstanding MBS
	Liquidations					Liquidations					Single-family Conventional 2/
											Non-Credit			Credit						Multifamily
	Amount		Annual Rate			Amount		Annual Rate			Enhancement 3/			Enhancement 4/			Total 5/			Total 6/
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	%		0.32	%		1.77	%		0.62	%		0.12	%
November 2004		18,295		24.05	%		28,104		24.27	%		0.33	%		1.84	%		0.64	%		0.10	%
December 2004		19,449		25.69	%		29,779		25.56	%
Full year 2004	$	240,201		26.87	%	$	374,688		27.58	%

AVERAGE INVESTMENT BALANCES ($ in Millions)

	Net		Liquid		Total Net
	Mortgages		Investments		Investments
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
November 2004		907,233		62,836		970,069
December 2004		904,200		58,877		963,077
YTD 2004	$	886,699	$	67,510	$	954,208

INTEREST RATE RISK DISCLOSURE*

	Effective
	Duration Gap 7/
	(in months)
January 2004		-1
February 2004		-1
March 2004		0
April 2004		3
May 2004		3
June 2004		2
July 2004		0
August 2004		-2
September 2004		-2
October 2004		0
November 2004		-1
December 2004		-1

* Note:	Fannie Mae’s monthly summary excludes net interest income at risk information. On December 15, 2004, the Office of the Chief Accountant of the Securities and Exchange Commission (the “SEC”) issued a statement (the “Statement”) regarding a review of certain accounting issues relating to Fannie Mae, including a determination by the SEC that Fannie Mae should restate its financial statements to eliminate the use of hedge accounting. The restatement will affect Fannie Mae’s net interest income at risk information. On December 16, 2004, Fannie Mae filed a Current Report on Form 8-K with the SEC that includes a copy of the Statement.
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.
	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. Fannie Mae has announced that its previously issued financial statements and information should no longer be relied upon in light of the SEC’s determination that the financial statements were prepared applying accounting practices that did not comply with generally accepted accounting principles, or GAAP. Fannie Mae has also announced that it will restate its previously issued financial statements and that its audit committee has approved the engagement of new auditors to serve as Fannie Mae’s independent auditors for 2001 through 2004. It is possible that the re-audit and restatement of Fannie Mae’s financial statements may result in changes to some of the information in this report.

For more information about the restatement and the reaudit, please see the Form 8-Ks Fannie Mae filed with the SEC on December 22, 2004 and January 4, 2005. For more information regarding Fannie Mae, please visit www.fanniemae.com or contact us at (202) 752-7115.

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