Fannie Mae’s Net interest income was $4.9 billion for the fourthrnquarter of 2013, compared with $5.6 billion for the third quarter of 2013. The decrease was due to lowerrnamortization driven by prepayment volumesrnand lower interestrnincome from retainedrnmortgage portfolio assets as that portfolio continues to shrink.  For the year, net interestrnincome was $22.4 billionrnfor 2013, comparedrnwith net interest incomernof $21.5 billionrnfor 2012.    Lower interest income from the retainedrnmortgage portfolio was offset by higher amortization drivenrnby prepayment volumesrnand an increase in guarantyrnfees. </p

Fannie Mae’s single-family business segment had net income of $2.1 billionrnin the fourth quarter of 2013, comparedrnwith net income of $4.7 billionrnin the third quarter of 2013. The decrease in net income in the fourth quarter compared to the third quarter was drivenrnby lower credit-related income due primarily to slowerrnhome price improvement in the quarter. For the year, the Single-Family businessrnhad net incomernof $48.3 billion, comparedrnwith net income of $6.3 billionrnin 2012.  Guaranty fee income increasedrnin 2013 comparedrnwith 2012 due to the impactrnof guaranty fee increases. The single-family guaranty book of business was $2.89rntrillion as of Decemberrn31, 2013, compared with $2.88 trillion as of September 30, 2013 and $2.83 trillionrnas of December 31, 2012.</p

The multifamily business sector had net incomernof $706 millionrnin the fourth quarter of 2013, comparedrnwith $478 million in the third quarter of 2013rnwith the increase primarily to increased credit-related income from improvements in property valuations, as well as increased gains from partnership investments.  For the year the sector had net income of $10.1 billion,rncompared with $1.5 billionrnin 2012.  The Multifamily guarantyrnbook of businessrnwas $200.6 billion as of December 31, 2013, compared with $203.7rnbillion as of Septemberrn30, 2013 and $206.2 billionrnas of December 31, 2012.</p

The third segment, the Capital Markets group had net incomernof $4.5 billionrnin the fourth quarter of 2013, comparedrnwith $3.8 billion in the third quarter of 2013.</p

Fannie Maernremained the largest single issuer of single-family mortgage-related securitiesrnin the secondary market during the fourth quarter with an estimated marketrnshare of 46 percent compared to 48 percent a year earlier.  Its market share for all of 2013 was 47rnpercent.   The company has provided approximately $4.1 trillion in liquidity to the mortgagernmarket from January 1, 2009 throughrnDecember 31, 2013, purchasing or guaranteeing 12.3 millionrnmortgage refinancings and 3.7 millionrnhome purchases, and providing financing for 2.2 million units of multifamily housing.</p

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The company’srntotal loss reservesrndecreased to $47.3 billion as of December 31, 2013 from $62.6 billionrnas of December 31, 2012. The company’srntotal loss reservesrnpeaked at $76.9 billion as of December 31, 2011.</p

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Serious single-family delinquenciesrnhave declined each quarterrnsince the first quarterrnof 2010, and thernrate was 2.38 percent as of December 31, 2013, compared with 5.47 percent as of March 31, 2010. This decrease is primarily the result of home retention solutions, foreclosure alternatives, and completedrnforeclosures, as well as the company’s acquisition of loans with stronger creditrnprofiles since the beginning of 2009.  The company provided approximately 234,000 loan workouts in 2013 to help homeowners stay in their homes or otherwisernavoid foreclosure. </p

Fannie Mae acquired approximately 139,000 loans in the fourth quarter of 2013rnand approximately 1 million loans for the full year of 2013 through its Refi Plus^TM initiative, which includesrnHARP,   Refinancings delivered to Fannie Mae throughrnRefi Plus in 2013 reduced borrowers’ monthly mortgage paymentsrnby an average of $223.</p

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Fannie Mae acquired 32,208 single-family REO properties, primarily through foreclosure, in the fourth quarter of 2013, comparedrnwith 37,353 in the third quarterrnof 2013. As of Decemberrn31, 2013, the company’s inventoryrnof single-family REO properties was 103,229,rncompared with 100,941 as of September 30, 2013. The carrying value of the company’srnsingle-family REO was $10.3 billionrnas of December 31, 2013.</p

The company’srnsingle-family foreclosure rate was 0.82 percent</bfor the full year of 2013. This reflects the number of single-family properties acquired throughrnforeclosure or deeds-in-lieu of foreclosure as a percentage of the total number of loans in Fannie Mae's single-family guarantyrnbook of business.