Connecticut Avenue Securities Investor Presentation

CAS REMIC Overview ☐ Investor Benefits Better treatment under REIT income and asset tests for tax purposes ■ Removes tax impediments for non-U.S. investors to enable participation in non-rated tranches ☐ ◉ Helps insulate investors from potential future counterparty risk exposure to Fannie Mae Simplifies and aligns tax treatment of CAS with other mortgage related securities Fannie Mae Benefits Supports expansion of the CAS program investor base Achieves insurance accounting treatment for CAS, which aligns the timing of the recognition of CAS benefits with credit losses Enabling REMIC eligibility In order to facilitate this change, a REMIC tax election is made for a majority of single-family loans we acquire and securitize in MBS, beginning with loans in MBS pools issued on and after May 1, 2018 ■ Extensive industry outreach indicates market agreement that there is no impact to MBS ■ SIFMA's TBA Committee voted on the new structure proposal, identifying no issues that would impair the TBA eligibility The nature of our MBS, remittances, and cash flows to MBS investors, are unchanged Starting with 2018-R07, all on-the-run CAS deals in or after November 2018 qualify as REMICS 21 O 2021 Fannie Mae.

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