Technology Initiatives Fannie Mae Mortgage Bankers Association Technology Conference

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Technology Initiatives Fannie Mae --Mortgage
Bankers AssociationTechnology Conference

• Luiz de ToledoSenior Vice President
• March 2009

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Agenda

• Corporate Priorities
• IT Priorities
• IT Innovation
• Single Family
• Multifamily
• Credit Loss Management
• HASP

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Fannie Mae Corporate Priorities
2008 Focus

• Capital Management
• Credit Loss Management
• Credit Risk Management

Conservatorship
Financial Crisis
2009 Focus

• Market Liquidity
• Foreclosure Prevention
• Enterprise Risk Management
• Productivity Enhancements/ Efficiency

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IT Priorities Getting Fit
Organizational Design

• Better alignment of Business and Technology
• New shared services to reduce complexity.
  Increase standardization and reduce costs
• Tighter governance around processes and controls

Reduction of Complexity

• Integrated data services
• Centralized systems architecture
• Buy vs Build preference
• More modular re-usable components

Investment Portfolio Management

• More granular classification
• Greater transparency to Business
• Consumer vs producer views

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IT Priorities Getting Fit(contd)
Resource Management

• Improved mix of internal vs external resources
• Greater transparency
• Centralized procurement

Cost Management

• Productivity enhancements
• Total Cost of Ownership (TCO) utilization
• Greater transparency

Infrastructure Rationalization

• Servers virtualization
• Improved asset utilization
• Extended asset life

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Recent Innovations in Single-Family

• February 2009 launch
• 20 yr old mainframe/legacy system replacement
• Enables daily capture of servicer activity
• Foundation for future implementations

Servicer and Investor Reporting (SIR)

• DU Refi Plus April and May implementations
• Supports Home Affordable Refinance initiative
• Leverages operational efficiencies, allowing
  lenders to expand capacity and speed up the refi
  process

Desktop Underwriter (DU)
eMortgage

• eNote interest and deliveries remain strong
• Over 30,000 paperless eNotes purchased in 2008
• Introduced electronic signing and eDelivery
  efficiencies to support the loss mitigation
  efforts

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Recent Innovations in Multifamily

• Eases the exchange of property inspections and
  operating statements between Fannie Mae and our
  partners
• Allows our partners to use the format most
  appropriate for their inspection process
• Automates the reporting process for Structured
  Facilities

HCD Information Exchange

• Reduces time and effort required to submit data
  with convenient features (drop downs, upload,
  etc.)
• Increases lender transparency into processing
  status of transactions
• Expands portfolio of products eligible for
  securitization

Commitment Delivery (CD)
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Recent Innovations in Credit Loss Management
Delinquency/ Default Management

• Continuous enhancements to HSSN/DARTS
• SMP, HSA processing
• Bulk uploads
• Automation of workflow rules

Loan Reviews/ QC

• Continuous enhancements and automation of QAS
• Workflow and uploads
• Imaging and document retention
• Ease of integration with third-party outsourcers

REO Management

• Continuous enhancements to TRAX
• Throughput/volume/capacity enhancements
• Greater uptime and response times

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Our Focus Making Home Affordable (Presidents
Homeownership Affordability and Stability Plan)

• Refi PlusTM - New Refinance option for Fannie Mae
  loans allowing up to 105 LTV
• Systems enhancements under development
• Loan identification look up for consumers
• DU update for DU Refi PlusTM
• Volume/capacity enhancements
• Process/support to lenders

Home Affordable Refinance

• Modifies loan terms to more affordable payment
  replaces Streamlined Modification Program (SMP)
• Systems enhancements under development
• SMP-like modification processing/capture
• Servicer incentive payments
• Borrower pay-for-performance success payments
• Net present value tools
• Process/support to servicers

Home Affordable Modification