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HFA assistance programs, including several to which Treasury is a party. Pursuant to the TCLF program, Treasury has
purchased participation interests in temporary credit and liquidity facilities provided by us and Freddie Mac to the HFAs,
which facilities create a credit and liquidity backstop for the HFAs. Pursuant to the NIB program, Treasury has purchased
new securities issued and guaranteed by us and Freddie Mac, which are backed by new housing bonds issued by the HFAs.
In November 2011, we entered into an Omnibus Consent to HFA Initiative Program Modifications with Treasury, Freddie
Mac and FHFA pursuant to which the parties agreed to specified modifications to the HFA initiative programs, including a
three-year extension of the expiration date for the TCLFs from December 2012 to December 2015, and a one-year extension
of the expiration date for release of escrowed funds for the NIB program from December 31, 2011 to December 31, 2012. Six
HFAs participated in the extension of the TCLF program. Prior to the extension of these HFAs’ TLCFs, each HFA agreed to a
plan with Treasury, Fannie Mae and Freddie Mac that included a summary of the methods the HFA will use to reduce TCLF
exposure in the future.
The total amount originally established by Treasury for the TCLF program and the NIB program was $23.4 billion: an
aggregate of $8.2 billion for the TCLF program (of which $7.7 billion consisted of principal and approximately $500 million
consisted of accrued interest) and an aggregate of $15.2 billion for the NIB program (of which $12.4 billion related to single-
family bonds and $2.8 billion related to multifamily bonds). The amounts outstanding under these programs have been
reduced since the programs were established and will continue to be reduced over time as liquidity facilities under the TCLF
program are replaced by the HFAs and as principal payments are received on the mortgage loans financed by the NIB
program. As of December 31, 2013, the total amount outstanding for both Fannie Mae and Freddie Mac under the TCLF
program was $1.6 billion (of which $1.5 billion consisted of principal and $92 million consisted of accrued interest) and the
total unpaid principal amount outstanding for both Fannie Mae and Freddie Mac under the NIB program was $9.1 billion.
We and Freddie Mac administer these programs on a coordinated basis. We issued temporary credit and liquidity facilities
and securities backed by HFA bonds on a 50-50 pro rata basis with Freddie Mac under these programs. Treasury will bear the
initial losses of principal under the TCLF program and the NIB program up to 35% of total original principal on a combined
program-wide basis, and thereafter we and Freddie Mac each will bear the losses of principal that are attributable to our own
portion of the temporary credit and liquidity facilities and the securities that we have issued. Treasury will also bear any
losses of unpaid interest under the two programs. Accordingly, as of December 31, 2013, Fannie Mae’s maximum potential
risk of loss under these programs, assuming a 100% loss of principal, was $1.3 billion. As of December 31, 2013, there had
been no losses of principal or interest under the TCLF program or the NIB program.
Temporary Payroll Tax Cut Continuation Act of 2011
In December 2011, Congress enacted the Temporary Payroll Tax Cut Continuation Act of 2011 which, among other
provisions, required that we increase our single-family guaranty fees by at least 10 basis points and remit this increase to
Treasury. To meet our obligations under the TCCA and at the direction of FHFA, we increased the guaranty fee on all single-
family residential mortgages delivered to us by 10 basis points effective April 1, 2012. FHFA and Treasury have advised us to
remit this fee increase to Treasury with respect to all loans acquired by us on or after April 1, 2012 and before January 1,
2022, and to continue to remit these amounts to Treasury on and after January 1, 2022 with respect to loans we acquired
before this date until those loans are paid off or otherwise liquidated. As of December 31, 2013, we had paid $829 million to
Treasury for our obligations through September 30, 2013 under the TCCA, and our liability to Treasury for TCCA-related
guaranty fees for the fourth quarter of 2013 was $306 million.
Transactions involving The Integral Group LLC
Egbert L.J. Perry, who has been a member of our Board since December 2008, is the Chairman, Chief Executive Officer and
controlling shareholder of The Integral Group LLC, referred to as Integral. Over the past twelve years, our Multifamily
(formerly, Housing and Community Development) business has invested indirectly in certain limited partnerships or limited
liability companies that are controlled and managed by entities affiliated with Integral, in the capacity of general partner or
managing member, as the case may be. These limited partnerships or limited liability companies are referred to as the Integral
Property Partnerships. The Integral Property Partnerships own and manage LIHTC properties. We also hold multifamily
mortgage loans made to borrowing entities sponsored by Integral. We believe that Mr. Perry has no material direct or indirect
interest in these transactions, and therefore disclosure of these transactions in this report is not required pursuant to Item 404
of Regulation S-K. In addition, as described in “Director Independence—Our Board of Directors” below, the Board of
Directors has concluded that these business relationships are not material to Mr. Perry’s independence.
Mr. Perry has informed us that Integral accepted no further equity investments from us relating to Integral Property
Partnerships beginning in December 2008, when he joined our Board. Mr. Perry has also informed us that Integral does not
intend to seek debt financing intended specifically to be purchased by us, although, as a secondary market participant, in the