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

EXHIBIT 99.2

FANNIE MAE
MONTHLY SUMMARY

JUNE 2005

HIGHLIGHTS FOR JUNE INCLUDE:

• Total business volume rose to $48.8 billion in June from $45.3 billion the previous month.

• Fannie Mae’s book of business grew at an annual rate of 0.2 percent in June compared with a 2.2 percent decline in May.

• Total lender-originated MBS issues rose to $40.0 billion from $34.3 billion in May.

• Portfolio purchases were $9.0 billion and portfolio sales were $10.4 billion, which net of portfolio liquidations resulted in a negative 25.3 percent annualized growth rate of the mortgage portfolio.

• Both the conventional single-family and multifamily delinquency rates remained stable in May at 0.57 percent and 0.10 percent, respectively.

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

MORTGAGE MARKET HIGHLIGHTS:

• Fannie Mae estimates total single-family mortgage originations for 2005 will reach $2.8 trillion.

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/
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	%)
April 2005		851,936		(16.3	%)		1,445,353		3.7	%		2,297,288		(4.3	%)
May 2005		828,079		(28.9	%)		1,464,884		17.5	%		2,292,963		(2.2	%)
June 2005		808,225		(25.3	%)		1,485,149		17.9	%		2,293,374		0.2	%
YTD 2005	$	808,225		(20.2	%)	$	1,485,149		12.1	%	$	2,293,374		(1.2	%)

BUSINESS VOLUMES ($ in Millions) 1/

	MBS
			Fannie Mae		MBS Issues
	Lender-originated		MBS		Acquired		Portfolio		Business
	Issues 5/		Purchases 6/		by Others		Purchases		Volume
July 2004	$	39,636	$	5,676	$	33,960	$	21,618	$	55,578
August 2004		34,961		4,676		30,285		21,787		52,072
September 2004		40,870		5,074		35,796		27,661		63,457
October 2004		38,289		3,665		34,623		27,142		61,766
November 2004		36,259		2,717		33,542		19,121		52,662
December 2004		39,375		1,642		37,732		13,016		50,748
Full year 2004	$	527,146	$	64,604	$	462,542	$	262,647	$	725,189
January 2005	$	37,457	$	451	$	37,006	$	11,095	$	48,101
February 2005		31,259		538		30,721		9,446		40,167
March 2005		31,493		326		31,166		11,206		42,372
April 2005		36,838		429		36,409		8,865		45,274
May 2005		34,343		219		34,124		11,198		45,322
June 2005		40,039		210		39,829		8,964		48,793
YTD 2005	$	211,429	$	2,173	$	209,256	$	60,774	$	270,029
The single-family and multifamily MBS issues will no longer be shown separately on a monthly basis.

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

									Mortgage
	Retained								Portfolio
	Commitments 7/			Purchases 8/		Purchase Yield 9/			Sales
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
April 2005		5,654			8,865		5.04	%		1,680
May 2005		(8,131	)		11,198		4.99	%		17,812
June 2005		(2,339	)		8,964		5.33	%		10,350
YTD 2005	$	9,666		$	60,774		4.86	%	$	50,546

1/	Represents unpaid principal balance.
2/	Excludes mark-to-market adjustments, deferred balances and allowance for losses. Includes $415 billion of Fannie Mae MBS as of June 30, 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 $1,980 million in June 2005.
6/	Included in total portfolio purchases.
7/	Represents commitments to purchase, net of commitments to sell, entered into during the month, including any modifications to original amounts.
8/	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.
9/	Represents the weighted-average yield on monthly purchases. Yields are presented on a taxable-equivalent basis to consistently reflect income from taxable and tax-exempt investments.
	Numbers may not add due to rounding.

LIQUIDATIONS ($ in Millions) 1/											DELINQUENCY RATES
	Mortgage Portfolio					Outstanding MBS					Single-family Conventional 2/									Multifamily
	Liquidations					Liquidations					Non-Credit			Credit
	Amount		Annual Rate			Amount		Annual Rate			Enhancement 3/			Enhancement 4/			Total 5/			Total 6/
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	%		0.31	%		1.72	%		0.59	%		0.09	%
April 2005		19,899		27.82	%		33,740		28.05	%		0.30	%		1.68	%		0.57	%		0.10	%
May 2005		17,301		24.72	%		27,844		22.96	%		0.30	%		1.68	%		0.57	%		0.10	%
June 2005		18,502		27.14	%		29,243		23.79	%
YTD 2005	$	106,776		24.82	%	$	169,954		23.59	%

AVERAGE INVESTMENT BALANCES ($ in Millions)

	Net		Liquid		Total Net
	Mortgages		Investments		Investments
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
April 2005		851,828		58,269		910,097
May 2005		836,441		55,479		891,920
June 2005		813,466		59,072		872,538
YTD 2005	$	855,885	$	59,907	$	915,792

INTEREST RATE RISK DISCLOSURE

	Effective
	Duration Gap 7/
	(in months)
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
April 2005		-1
May 2005		-1
June 2005		0

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 add due to rounding.

This information is subject to change as a result of the pending re-audit and restatement of Fannie Mae’s previously published financial statements. 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, March 18, 2005, and May 11, 2005.

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