Federal National Mortgage Association (FNMA) 8-K Regulation FD Disclosure

EXHIBIT 99.1

FANNIE MAE
MONTHLY SUMMARY
DECEMBER 2005

HIGHLIGHTS FOR DECEMBER INCLUDE:

• Fannie Mae’s book of business grew at a compound annualized rate of 8.3 percent in December, driven by the mortgage portfolio, which grew at a 21.4 percent compound annualized rate.

• Portfolio purchases rose to $28.8 billion in December from $16.0 billion the previous month, aided by continued strength in net retained commitments of $19.6 billion, as investment spreads widened and portfolio sales remained modest.

• Total business volume rose to $57.9 billion from $52.0 billion the previous month.

• Lender-originated MBS issues were $39.6 billion. Outstanding MBS growth slowed to a 2.9 percent compound annualized rate in December, as the portfolio increased its purchase of Fannie Mae MBS to $10.4 billion from $1.8 billion the previous month.

• The conventional single-family delinquency rate (90 days or more delinquent) rose thirteen basis points in November to 0.77 percent, attributable primarily to a rise in delinquencies on Gulf Coast properties. The multifamily delinquency rate (60 days or more delinquent) rose three basis points to 0.27 percent.

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

MORTGAGE MARKET HIGHLIGHTS:

• Fannie Mae estimates that single-family mortgage originations for 2005 totaled $2.84 trillion, compared with $2.73 trillion in 2004. Fannie Mae projects that single-family mortgage originations will decline to approximately $2.25 trillion in 2006.

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 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	%
July 2005		788,786		(25.3	%)		1,498,717		11.5	%		2,287,503		(3.0	%)
August 2005		768,280		(27.1	%)		1,520,943		19.3	%		2,289,223		0.9	%
September 2005		727,824		(47.8	%)		1,573,810		50.7	%		2,301,634		6.7	%
October 2005		717,254		(16.1	%)		1,587,014		10.6	%		2,304,268		1.4	%
November 2005		715,532		(2.8	%)		1,594,277		5.6	%		2,309,808		2.9	%
December 2005		727,173		21.4	%		1,598,079		2.9	%		2,325,251		8.3	%
Full year 2005	$	727,173		(19.6	%)	$	1,598,079		13.9	%	$	2,325,251		0.8	%

BUSINESS VOLUMES ($ in Millions) 1/

	MBS
			Fannie Mae		MBS Issues
	Lender-originated		MBS		Acquired		Portfolio		Business
	Issues 5/		Purchases 6/		by Others		Purchases		Volume
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
July 2005		43,344		207		43,138		9,365		52,502
August 2005		46,540		176		46,363		11,564		57,927
September 2005		61,013		410		60,603		10,021		70,625
October 2005		41,563		446		41,117		10,136		51,253
November 2005		37,818		1,823		35,995		16,021		52,016
December 2005		39,553		10,393		29,160		28,760		57,920
Full year 2005	$	481,260	$	15,628	$	465,632	$	146,640	$	612,272

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

	Net								Mortgage
	Retained								Portfolio
	Commitments 7/			Purchases		Purchase Yield 8/			Sales
Full year 2004	$	256,144		$	262,647		4.22	%	$	16,449
January 2005	$	291		$	11,095		4.40	%	$	6,360
February 2005		2,578			9,446		4.73	%		9,539
March 2005		9,945			11,206		4.79	%		4,806
April 2005		5,104			8,865		5.04	%		1,680
May 2005		(8,768	)		11,198		4.99	%		17,812
June 2005		(3,185	)		8,964		5.33	%		10,350
July 2005		3,858			9,365		5.43	%		9,288
August 2005		(21,943	)		11,564		5.27	%		12,507
September 2005		(403	)		10,021		5.44	%		31,071
October 2005		8,314			10,136		5.50	%		4,437
November 2005		20,084			16,021		5.17	%		2,571
December 2005		19,595			28,760		5.43	%		2,876
Full year 2005	$	35,469		$	146,640		5.16	%	$	113,295

1/	Represents unpaid principal balance.
2/	Excludes mark-to-market adjustments, deferred balances and allowance for losses. Includes $342 billion of Fannie Mae MBS as of December 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 $1,331 million in December 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. Please refer to “Correction” on page 2 for more information. We made no revisions to 2004.
8/	Calculated as commitment yield for single-family loans, pass-thru rate for multifamily loans and coupon divided by price for securities. Yields are presented on a taxable-equivalent basis.
	Numbers may not sum 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/
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	%		0.30	%		1.69	%		0.57	%		0.10	%
July 2005		19,575		29.42	%		34,429		27.69	%		0.32	%		1.74	%		0.59	%		0.08	%
August 2005		19,624		30.25	%		34,976		27.80	%		0.32	%		1.76	%		0.59	%		0.08	%
September 2005		19,468		31.23	%		37,036		28.72	%		0.33	%		1.78	%		0.61	%		0.09	%
October 2005		16,407		27.25	%		32,350		24.56	%		0.35	%		1.86	%		0.64	%		0.24	%
November 2005		15,247		25.54	%		31,156		23.50	%		0.46	%		2.11	%		0.77	%		0.27	%
December 2005		14,318		23.82	%		28,167		21.18	%
Full year 2005	$	211,416		26.25	%	$	368,067		24.59	%

AVERAGE INVESTMENT BALANCES

Fannie Mae has determined at this time not to provide average investment balances, which are derived from numbers that are subject to restatement.

INTEREST RATE RISK DISCLOSURE

	Effective
	Duration Gap 7/
	(in months)
January 2005	-1
February 2005	0
March 2005	1
April 2005	-1
May 2005	-1
June 2005	0
July 2005	1
August 2005	0
September 2005	1
October 2005	1
November 2005	0
December 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. Since October 2005, we have included non-mortgage assets and liabilities in the duration gap calculation. Our portfolio duration gap calculation excludes any interest rate sensitivity of the guarantee business.
	Numbers may not sum due to rounding.

CORRECTION:

• Fannie Mae is revising its definition of net retained commitments and correcting an error in the company’s previously reported net retained commitments for 2005. These changes relate to activity information and do not impact the company’s financial statements. The company will no longer include optional commitments to purchase loans (where the other party does not have a corresponding obligation to sell the loans), until we actually purchase a loan under the commitment. This will result in an aggregate decrease of $7.5 billion in previously reported net retained commitments for 2005. Included in this $7.5 billion decrease is the correction of an error of $2.3 billion, principally due to the company’s inclusion of amounts both at the time we entered into the optional commitment, as well as when we purchased the loans. Purchases are not affected by these revisions to net retained commitments.

In connection with the pending re-audit and restatement of Fannie Mae’s previously published financial statements, management is undertaking a comprehensive review of Fannie Mae’s accounting routines and controls, financial reporting process and the application of generally accepted accounting principles. While most of the information contained in this summary is not derived from Fannie Mae’s financial statements, we expect that some of this information will be impacted by the re-audit and restatement. Management believes that the information may be useful to investors for comparing current business activities with those of prior periods and for reviewing trends in our business, notwithstanding that information may change, perhaps materially, from what is reported herein. Issues under review that will cause some of this information to change include those related to securities accounting, loan accounting, consolidation and amortization. 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, May 11, 2005, August 9, 2005 and November 10, 2005.

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