Fannie Mae 2003 Annual Report Download - page 14

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12 FANNIE MAE 2003 ANNUAL REPORT
Powered by the unprecedented demand for housing credit in America,
Fannie Mae delivered exceptional growth and financial performance in
2003, while taking significant steps to further strengthen our financial
and risk disciplines and to position our company for the future. Our
2003 financial results, and our performance during the past decade that
you see reflected in the following exhibits, clearly demonstrate the
disciplined approach to growth that continues to define our company.
Our Outstanding Mortgage-Backed Securities (MBS) balance
has grown at an annualized rate of nearly 11 percent during
the past decade, to approximately $1.3 trillion at year-end
2003. In recent years, our balance of Outstanding MBS
has grown rapidly as lower mortgage rates have spurred a
tremendous wave of mortgage refinancings. In 2003,
outstanding MBS grew by 26.3 percent.
*MBS held by investors other than Fannie Mae.
The tangible benefits that we deliver to the nation’s home-
owners have translated into strong and consistent growth in
our book of business — gross mortgage portfolio plus
outstanding mortgage-backed securities we guarantee that
are held by other investors. During the past decade, our book
of business has grown from $661 billion to nearly $2.2 trillion
— representing a compound annual growth rate of
approximately 13 percent. In 2003, our total book of business
grew by 20.6 percent, as historically low mortgage rates
spurred record refinancing activity.
The Growth of Our Business
Our gross mortgage portfolio has grown at an annualized
rate of nearly 17 percent during the past decade, to approxi-
mately $898 billion at year-end 2003. We follow a disciplined
approach to growing our portfolio — purchasing mortgage
assets when supply is available in the market and when the
spreads between mortgage yields and our funding costs are
favorable. In 2003, our portfolio grew by 13.1 percent.