Connecticut Avenue Securities Investor Presentation

Modification Losses Modification Interest Rate Reduction Principal Forbearance Term Extension Principal Forgiveness* Borrower Impact Reduces monthly interest rate borrower pays on loan obligation Mortgage payments are suspended for a specific period of time; the portion of suspended principal does not bear interest and is due at termination of the loan Loan term is extended to reduce borrower monthly payments Outstanding principal loan balance is subject to a one time principal reduction based on established eligibility criteria Loss to Investor Losses passed through based on the difference between the modified and original note rate paid on the outstanding loan balance Loss reflects foregone interest on non interest bearing portion of UPB No loss to investor ■ At time of principal forgiveness, no modification losses will be passed through to noteholders ▪ The forgiven UPB amount will be treated as unscheduled principal at the time of the modification ■ If the modified loan subsequently experiences a credit event, the amount of the principal forgiveness will be included in the credit event net loss (realized loss calculation) Modification losses are passed through to noteholders on a monthly basis once a permanent modification takes effect. No losses are incurred during a modification trial period (typically 3 months). *Fannie Mae does not anticipate that any loans referenced in CAS deals will be eligible for Principal Forgiveness *Principal Forgiveness Eligibility Criteria: http://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Announces-PRM-Program-and-Further-Enhancements-to-NPL-Sales-Reqts.aspx 33 O 2021 Fannie Mae.

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