Connecticut Avenue Securities Investor Presentation

DU Model Updates DU Timeline DTI %> 45 40% July 2017: DU 10.1 35% Enabled loans with DTI ratios above 45% (up to 50%) to rely on DU's 30% comprehensive risk assessment 25% Removed DU model overlays with set maximum LTV ratio and minimum reserves requirements for those loans 20% 15% Dynamic Credit Management 10% March 2018: DU 10.2 5% Revised DU's risk assessment to limit risk layering 0% Fewer DU Approve recommendations on loans that have multiple higher-risk characteristics December 2018: DU 10.3 Enhanced DU's management of multiple risk layers Six months of reserves for cash-out refinances with DTI over 45% to address increase in high DTI acquisitions July 2019 Certain new loan casefiles submitted to DU will receive an Ineligible recommendation when multiple high-risk factors are present 25% 20% Sep-00 Sep-01 Sep-02 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Sep-08 Sep-00 Sep-01 Sep-02 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Sep-09 Sep-10 % > 50* Sep-08 Sep-09 Sep-10 Sep-11 Sep-11 Sep-12 Sep-12 Sep-13 Sep-13 Sep-14 Sep-14 Sep-15 Sep-15 Sep-16 Sep-16 Sep-17 Sep-17 Sep-18 Sep-18 Sep-19 Sep-19 Sep-20 Sep-20 15% We have updated the DU eligibility assessment to better align the mix of business delivered to Fannie Mae with the composition of business in the overall market 10% April 2020 Revised DU's risk and eligibility assessments to result in modest reduction of loan casefiles with high-risk factors receiving an Approve/Eligible recommendation 42 © 2021 Fannie Mae. 5% 0% *Rounded to nearest integer

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