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

EXHIBIT 99.3

FANNIE MAE
MONTHLY SUMMARY

DECEMBER 2006

HIGHLIGHTS FOR DECEMBER INCLUDE:

• The gross mortgage portfolio balance was $724.4 billion in December. We currently estimate that our “mortgage portfolio” assets for purposes of the OFHEO consent order were approximately $722 billion in December. (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 8.9 percent in December, driven by a double-digit rise in the gross mortgage portfolio, and continued strength in outstanding MBS. The gross mortgage portfolio increased due to high volume of year-end transactions and a drop in sales.

• Total business volume was $57.7 billion, compared with $49.3 billion in November.

• Lender-originated MBS issues were $39.0 billion, compared with $36.1 billion the previous month.

• Net retained commitments rose to $15.2 billion in December, compared with $8.6 billion the previous month.

• The conventional single-family delinquency rate rose one basis point in November to 0.63 percent (latest data available). The multifamily delinquency rate remained stable at 0.08 percent.

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

MORTGAGE MARKET HIGHLIGHT:

• The monthly average ARM share of the number of conventional mortgage applications decreased by 2.4 percentage points during December to 23.7 percent — the lowest monthly average share recorded since July 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 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	%
June 2006		730,906		(4.6	%)		1,679,027		16.3	%		2,409,933		9.5	%
July 2006		731,439		0.9	%		1,683,451		3.2	%		2,414,890		2.5	%
August 2006		726,801		(7.3	%)		1,702,373		14.4	%		2,429,173		7.3	%
September 2006		725,530		(2.1	%)		1,732,818		23.7	%		2,458,348		15.4	%
October 2006		720,947		(7.3	%)		1,752,414		14.4	%		2,473,361		7.6	%
November 2006		717,430		(5.7	%)		1,769,341		12.2	%		2,486,772		6.7	%
December 2006		724,398		12.3	%		1,780,074		7.5	%		2,504,472		8.9	%
Full year 2006	$	724,398		(0.4	%)	$	1,780,074		11.4	%	$	2,504,472		7.7	%

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 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
June 2006		40,547		3,073		37,474		18,697		56,171
July 2006		33,900		6,304		27,596		15,133		42,729
August 2006		37,552		4,523		33,029		15,927		48,956
September 2006		47,038		624		46,413		20,180		66,594
October 2006		39,090		3,483		35,607		13,045		48,652
November 2006		36,141		706		35,435		13,902		49,337
December 2006		38,997		941		38,056		19,606		57,662
Full year 2006	$	455,903	$	38,423	$	417,481	$	196,017	$	613,498

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

								Mortgage
	Net Retained							Portfolio
	Commitments 7/		Purchases		Purchase Yield 8/			Sales
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
June 2006		13,181		18,697		5.81	%		9,216
July 2006		5,950		15,133		6.23	%		2,819
August 2006		6,790		15,927		6.14	%		8,898
September 2006		10,398		20,180		6.04	%		9,698
October 2006		7,971		13,045		6.04	%		6,746
November 2006		8,582		13,902		6.06	%		6,317
December 2006		15,225		19,606		5.63	%		1,860
Full year 2006	$	133,137	$	196,017		5.84	%	$	61,182

1/	Represents unpaid principal balance.
2/	Does not reflect market valuation adjustments, allowance for loan losses, impairments, unamortized premiums and discounts and the impact of consolidation of variable interest entities. Includes $299 billion of Fannie Mae MBS as of December 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 $1,680 million in December 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/
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	%		0.35	%		1.74	%		0.62	%		0.14	%
June 2006		12,480		20.45	%		25,089		18.04	%		0.35	%		1.70	%		0.60	%		0.19	%
July 2006		11,901		19.53	%		25,517		18.21	%		0.35	%		1.73	%		0.61	%		0.14	%
August 2006		11,791		19.41	%		22,416		15.89	%		0.34	%		1.73	%		0.60	%		0.15	%
September 2006		11,879		19.63	%		24,594		17.18	%		0.35	%		1.74	%		0.61	%		0.11	%
October 2006		11,005		18.26	%		22,424		15.44	%		0.35	%		1.76	%		0.62	%		0.08	%
November 2006		11,218		18.72	%		24,824		16.92	%		0.36	%		1.78	%		0.63	%		0.08	%
December 2006		10,906		18.15	%		29,047		19.64	%
Full year 2006	$	139,357		19.20	%	$	290,796		17.27	%

AVERAGE INVESTMENT BALANCES

Fannie Mae has determined at this time not to provide average investment balances, which are derived from numbers that will not be available until financial statements for the relevant period are complete.

INTEREST RATE RISK DISCLOSURE

	Effective
	Duration Gap 7/
	(in months)
January 2006		0
February 2006		0
March 2006		0
April 2006		1
May 2006		0
June 2006		-1
July 2006		-1
August 2006		-1
September 2006		0
October 2006		0
November 2006		0
December 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. 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 agreed to a consent order issued by its regulator, OFHEO. Under the consent order, Fannie Mae may not increase its “mortgage portfolio” assets above the amount shown in its December 31, 2005 minimum capital report, except under specified circumstances at the discretion of OFHEO. Fannie Mae believes it is in compliance with the terms of its consent order 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 consent order reflect GAAP adjustments, including market valuation adjustments, allowance for loan losses, impairments 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 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 our Form 10-K for the year ended December 31, 2004, which we filed with the Securities and Exchange Commission on December 6, 2006.

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