Fannie Mae 2006 Annual Report Download - page 35

• up to 0.25% of other off-balance sheet obligations.
For a description of the amounts by which our core capital exceeded our statutory critical capital requirement
as of December 31, 2006 and 2005, see “Item 7—MD&A—Liquidity and Capital Management—Capital
Management—Capital Classification Measures.”
OFHEO Direction on Interagency Guidance on Nontraditional Mortgages and Subprime Lending
In September 2006, five federal financial regulatory agencies jointly issued “Interagency Guidance on
Nontraditional Mortgage Product Risks” to address risks posed by mortgage products that allow borrowers to
defer repayment of principal or interest, and the layering of risks that results from combining these product
types with other features that may compound risk. In June 2007, the same financial regulatory agencies
published the final “Statement on Subprime Mortgage Lending,” which addresses risks relating to certain
subprime mortgages. Together, the agencies directed regulated financial institutions that originate
nontraditional and subprime mortgage loans to follow prudent lending practices, including safe and sound
underwriting practices and providing borrowers with clear and balanced information about the relative benefits
and risks of these products sufficiently early in the process to enable them to make informed decisions.
OFHEO directed us to apply the risk management, underwriting and consumer protection principles of the
nontraditional and subprime mortgage guidances to mortgages we purchase or guarantee. In response to the
guidance and OFHEO’s directive, we are implementing changes to our Desktop Underwriter»automated
underwriting system and have notified our lender customers of the dates by which we expect all loans sent to
us to be in compliance with the guidances.
Recent Legislative Developments and Possible Changes in Our Regulations and Oversight
There is legislation pending before the U.S. Congress that would change the regulatory framework under
which we, Freddie Mac and the Federal Home Loan Banks operate. On May 22, 2007, the House of
Representatives approved a bill that would establish a new, independent regulator for us and the other GSEs,
with broad authority over both safety and soundness and mission.
As of the date of this filing, one GSE reform bill has been introduced in the Senate and another is expected. For a
description of how the changes in the regulation of our business contemplated by these GSE reform bills or other
legislative proposals could materially adversely affect our business and earnings, see “Item 1A—Risk Factors.”
EMPLOYEES
As of December 31, 2006, we employed approximately 6,600 personnel, including full-time and part-time
employees, term employees and employees on leave. As of June 30, 2007, we employed approximately
6,400 personnel, including full-time and part-time employees, term employees and employees on leave.
WHERE YOU CAN FIND ADDITIONAL INFORMATION
We file reports, proxy statements and other information with the SEC. We make available free of charge
through our Web site our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on
Form 8-K and all other SEC reports and amendments to those reports as soon as reasonably practicable after
we electronically file the material with, or furnish it to, the SEC. Our Web site address is
www.fanniemae.com. Materials that we file with the SEC are also available from the SEC’s Web site,
www.sec.gov. In addition, these materials may be inspected, without charge, and copies may be obtained at
prescribed rates, at the SEC’s Public Reference Room at 100 F Street, NE, Room 1580, Washington, DC
20549. You may obtain information on the operation of the Public Reference Room by calling the SEC at
1-800-SEC-0330. You may also request copies of any filing from us, at no cost, by telephone at
[phone] or by mail at 3900 Wisconsin Avenue, NW, Washington, DC 20016.
Effective March 31, 2003, we voluntarily registered our common stock with the SEC under Section 12(g) of
the Exchange Act. Our common stock, as well as the debt, preferred stock and mortgage-backed securities we
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