Federal National Mortgage Association (FNMA) 8-K Departure of Directors or Principal Officers

EXHIBIT 99.1

FANNIE MAE
MONTHLY SUMMARY

MAY 2006

HIGHLIGHTS FOR MAY INCLUDE:

• The gross mortgage portfolio balance was $733.8 billion in May. We currently estimate that our “mortgage portfolio” assets for purposes of the OFHEO consent agreement were approximately $724 billion in May. (For a discussion of the differences between these measures see Portfolio Note on page 2.)

• Fannie Mae’s book of business grew at a compound annualized rate of 5.9 percent in May compared with 7.3 percent in April.

• Total business volume was $47.9 billion, compared with $52.1 billion the previous month.

• Lender-originated MBS issues were $35.5 billion. Outstanding MBS grew at a 6.0 percent compound annualized rate in May.

• Net retained commitments decreased to $12.2 billion in May, compared with $17.4 billion the previous month.

• The conventional single-family delinquency rate (90 days or more delinquent) fell three basis points in April to 0.64 percent. The multifamily delinquency rate (60 days or more delinquent) fell eight basis points to 0.18 percent.

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

MORTGAGE MARKET HIGHLIGHTS:

• Total residential mortgage debt outstanding (MDO) grew at a compound annualized rate of 12.5 percent to a level of $10.1 trillion during the first quarter of 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/
June 2005	$	808,579		(25.2	%)	$	1,485,149		17.9	%	$	2,293,728		0.2	%
July 2005		789,141		(25.3	%)		1,498,717		11.5	%		2,287,858		(3.0	%)
August 2005		768,636		(27.1	%)		1,520,943		19.3	%		2,289,579		0.9	%
September 2005		728,187		(47.7	%)		1,573,810		50.7	%		2,301,997		6.7	%
October 2005		717,618		(16.1	%)		1,587,014		10.6	%		2,304,632		1.4	%
November 2005		715,896		(2.8	%)		1,594,277		5.6	%		2,310,172		2.9	%
December 2005		727,545		21.4	%		1,598,079		2.9	%		2,325,624		8.3	%
Full year 2005	$	727,545		(19.6	%)	$	1,598,079		13.9	%	$	2,325,624		0.8	%
January 2006	$	725,661		(3.1	%)	$	1,613,005		11.8	%	$	2,338,666		6.9	%
February 2006		721,189		(7.1	%)		1,630,900		14.2	%		2,352,089		7.1	%
March 2006		721,544		0.6	%		1,644,793		10.7	%		2,366,337		7.5	%
April 2006		730,367		15.7	%		1,649,919		3.8	%		2,380,286		7.3	%
May 2006		733,786		5.8	%		1,657,987		6.0	%		2,391,773		5.9	%
YTD 2006	$	733,786		2.1	%	$	1,657,987		9.2	%	$	2,391,773		7.0	%

BUSINESS VOLUMES ($ in Millions) 1/

	MBS
			Fannie Mae		MBS Issues
	Lender-originated		MBS		Acquired		Portfolio		Business
	Issues 5/		Purchases 6/		by Others		Purchases		Volume
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
January 2006	$	41,524	$	2,606	$	38,918	$	12,199	$	51,117
February 2006		34,416		821		33,595		11,417		45,012
March 2006		34,236		1,073		33,162		14,165		47,327
April 2006		36,968		7,926		29,042		23,042		52,084
May 2006		35,494		6,341		29,153		18,704		47,857
YTD 2006	$	182,638	$	18,768	$	163,870	$	79,527	$	243,397

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

									Mortgage
	Net Retained								Portfolio
	Commitments 7/			Purchases		Purchase Yield 8/			Sales
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
January 2006	$	9,187		$	12,199		5.47	%	$	1,774
February 2006		9,704			11,417		5.68	%		5,142
March 2006		16,584			14,165		5.76	%		2,547
April 2006		17,378			23,042		5.47	%		2,436
May 2006		12,186			18,704		5.88	%		3,729
YTD 2006	$	65,039		$	79,527		5.63	%	$	15,628

1/	Represents unpaid principal balance.
2/	Excludes mark-to-market adjustments for available for sale securities, allowance for loan losses and unamortized premiums and discounts. Includes $333 billion of Fannie Mae MBS as of May 31, 2006.
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 $1,528 million in May 2006.
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/	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/
June 2005	$	18,502		27.13	%	$	29,243		23.79	%		0.30	%		1.69	%		0.57	%		0.10	%
July 2005		19,575		29.41	%		34,429		27.69	%		0.32	%		1.74	%		0.59	%		0.08	%
August 2005		19,624		30.23	%		34,976		27.80	%		0.32	%		1.76	%		0.59	%		0.08	%
September 2005		19,468		31.22	%		37,036		28.72	%		0.33	%		1.78	%		0.61	%		0.09	%
October 2005		16,407		27.23	%		32,350		24.56	%		0.35	%		1.86	%		0.64	%		0.24	%
November 2005		15,247		25.53	%		31,156		23.50	%		0.46	%		2.11	%		0.77	%		0.27	%
December 2005		14,318		23.81	%		28,167		21.18	%		0.47	%		2.14	%		0.79	%		0.27	%
Full year 2005	$	211,416		26.24	%	$	368,067		24.59	%
January 2006	$	12,405		20.49	%	$	25,765		19.26	%		0.45	%		2.12	%		0.77	%		0.27	%
February 2006		10,843		17.99	%		20,830		15.41	%		0.43	%		2.05	%		0.74	%		0.27	%
March 2006		11,366		18.91	%		21,433		15.70	%		0.39	%		1.85	%		0.67	%		0.26	%
April 2006		11,895		19.66	%		26,149		19.05	%		0.37	%		1.79	%		0.64	%		0.18	%
May 2006		11,669		19.13	%		22,707		16.47	%
YTD 2006	$	58,178		19.21	%	$	116,885		17.18	%

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)
June 2005		0
July 2005		1
August 2005		0
September 2005		1
October 2005		1
November 2005		0
December 2005		0
January 2006		0
February 2006		0
March 2006		0
April 2006		1
May 2006		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 guaranty business.
	Numbers may not sum due to rounding.

PORTFOLIO NOTE:
As previously announced, on May 23, 2006, Fannie Mae entered into a consent agreement with its regulator, OFHEO, not to increase its “mortgage portfolio” assets above the amount shown in its December 31, 2005 minimum capital report, except as provided in a plan submitted to OFHEO within 60 days and subject to OFHEO’s approval. Fannie Mae believes it is in compliance with the terms of its agreement with OFHEO.

The “gross mortgage portfolio” balances set forth in this monthly summary report represent unpaid principal balances, which represent statistical measures rather than amounts computed in accordance with GAAP. “Mortgage portfolio” assets that are reported to OFHEO under the agreement reflect GAAP adjustments, including mark-to-market adjustments for available-for-sale securities, allowance for loan losses and unamortized premiums and discounts. These adjustments are not reflected in the “gross mortgage portfolio” amounts shown in this report.

We expect that some of the information in this monthly summary report will change when the financial statements and related audits for the relevant periods are completed. 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. Information regarding the restatement of our financial statements may be found in Forms 8-K Fannie Mae filed with the Securities and Exchange Commission, including Forms 8-K filed on March 13, 2006 and May 9, 2006.

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