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

EXHIBIT 99.2

FANNIE MAE
MONTHLY SUMMARY

March 2005

HIGHLIGHTS FOR MARCH INCLUDE:

•   Total business volume rose to $42.4 billion in March from $40.2 billion the previous month.

•   The mortgage portfolio declined at a 13.6 percent annualized rate in March, compared with a 19.1 percent decline in February. Outstanding MBS grew at an 8.9 percent annualized rate in March compared with 13.3 percent in February.

•   March liquidations rose to $17.0 billion, substantially higher than March commitments of $10.6 billion.

•   The conventional single-family delinquency rate fell one basis point to 0.64 percent in February. The multifamily delinquency rate remained stable at 0.10 percent.

•   The duration gap on Fannie Mae’s mortgage portfolio averaged one month in March.

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/
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	%
January 2005	$	890,834		(16.8	%)	$	1,416,038		12.0	%	$	2,306,871		(0.2	%)
February 2005		875,245		(19.1	%)		1,430,825		13.3	%		2,306,070		(0.4	%)
March 2005		864,648		(13.6	%)		1,441,003		8.9	%		2,305,652		(0.2	%)
YTD 2005	$	864,648		(16.5	%)	$	1,441,003		11.4	%	$	2,305,652		(0.3	%)

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
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
January 2005	$	35,440	$	2,016	$	37,457	$	451	$	37,006	$	11,095	$	48,101
February 2005		29,768		1,491		31,259		538		30,721		9,446		40,167
March 2005		31,144		349		31,493		326		31,166		11,206		42,372
YTD 2005	$	96,352	$	3,856	$	100,208	$	1,315	$	98,893	$	31,747	$	130,640

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

								Mortgage
	Retained				Net Purchase			Portfolio
	Commitments		Purchases 7/		Yield 8/			Sales
April 2004	$	28,860	$	27,448		4.37	%	$	1,583
May 2004		28,389		26,686		4.55	%		885
June 2004		29,668		37,164		4.44	%		1,695
July 2004		19,504		21,618		4.44	%		681
August 2004		24,683		21,787		4.14	%		1,932
September 2004		30,783		27,661		3.61	%		1,195
October 2004		19,356		27,142		3.59	%		941
November 2004		11,887		19,121		4.16	%		1,511
December 2004		9,330		13,016		4.71	%		1,653
Full year 2004	$	256,144	$	262,647		4.22	%	$	16,449
January 2005	$	797	$	11,095		4.40	%	$	6,360
February 2005		3,099		9,446		4.73	%		9,539
March 2005		10,587		11,206		4.79	%		4,806
YTD 2005	$	14,483	$	31,747		4.63	%	$	20,704

1/	Represents unpaid principal balance.
2/	Excludes mark-to-market adjustments, deferred balances and allowance for losses. Includes $455 billion of Fannie Mae MBS as of March 31, 2005.
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 $1,221 million in March 2005.
6/	Included in total portfolio purchases.
7/	Fannie Mae is not providing a breakdown of mortgage portfolio purchases between single family and multifamily because the company is currently examining its processes for classifying mortgage purchases. Upon completion of this review, we will re-release the breakdown between single-family and multifamily and expect that certain previously reported purchases will be reclassified.
8/	Yields shown on a taxable-equivalent basis.
	Numbers may not foot due to rounding.

1

LIQUIDATIONS ($ in Millions) 1/											DELINQUENCY RATES
	Mortgage Portfolio					Outstanding MBS					Single-family Conventional 2/
	Liquidations					Liquidations
											Non-Credit			Credit						Multifamily
	Amount		Annual Rate			Amount		Annual Rate			Enhancement 3/			Enhancement 4/			Total 5/			Total 6/
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	%		0.33	%		1.84	%		0.63	%		0.10	%
Full year 2004	$	240,201		26.87	%	$	374,688		27.58	%
January 2005	$	18,480		24.70	%	$	30,063		25.60	%		0.35	%		1.88	%		0.65	%		0.10	%
February 2005		15,545		21.13	%		24,107		20.32	%		0.34	%		1.84	%		0.64	%		0.10	%
March 2005		17,049		23.52	%		24,956		20.86	%
YTD 2005	$	51,073		23.11	%	$	79,127		22.25	%

AVERAGE INVESTMENT BALANCES ($ in Millions)

	Net		Liquid		Total Net
	Mortgages		Investments		Investments
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
Full year 2004	$	886,699	$	67,510	$	954,208
January 2005	$	891,533	$	66,667	$	958,200
February 2005		878,378		54,626		933,003
March 2005		863,662		65,330		928,992
YTD 2005	$	877,857	$	62,208	$	940,065

INTEREST RATE RISK DISCLOSURE 

	Effective
	Duration Gap 7/
	(in months)
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
January 2005		-1
February 2005		0
March 2005		1

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/or 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.

2

This information is subject to change as a result of the pending re-audit and restatement of Fannie Mae’s financial statements for 2001 through June 2004. More information regarding the re-audit and restatement may be found in Form 8-Ks Fannie Mae filed with the Securities and Exchange Commission on December 22, 2004 and March 18, 2005.

For more information about Fannie Mae, please visit www.fanniemae.com or contact us at (202) 752-7115.