$2,110,462,588 (Notional)

Transcription

1 Prospectus Supplement (To SMBS Prospectus dated February 1, 2012) $2,110,462,588 () Guaranteed Stripped Mortgage-Backed Securities Trust Number 418 The SMBS Certificates We, the Federal National Mortgage Association or Fannie Mae, will issue the classes of SMBS certificates listed in the chart on this cover. Payments to Certificateholders We will make monthly payments on the SMBS certificates. You, the investor, will receive interest accrued on the notional principal balance of your SMBS certificate. The Fannie Mae Guaranty We will guarantee that required interest payments on the SMBS certificates are available for distribution to investors on time. The Trust and Its Assets The SMBS trust specified above will consist of the excess yield attributable to certain first lien, single-family, fully amortizing, fixed-rate, conventional mortgage loans currently serviced by JPMorgan Chase Bank, N.A. on our behalf. The mortgage loans are included in various pools that back previously issued MBS. Class(1) Balance(2) Conversion Factor(3) Type(4) Rate Type(4) CUSIP Number 1... $ 8,460, NTL 3.5% FIX/IO 31395QG ,305, NTL 3.5 FIX/IO 31395QH ,904, NTL 3.5 FIX/IO 31395QH ,768, NTL 3.5 FIX/IO 31395QH ,764(5) None(6) NTL 3.5 WAC/IO 31395QH ,435, NTL 4.0 FIX/IO 31395QH ,817, NTL 4.0 FIX/IO 31395QH ,071, NTL 4.0 FIX/IO 31395QH ,188, NTL 4.0 FIX/IO 31395QH ,353,482(5) None(6) NTL 4.0 WAC/IO 31395Q J ,122, NTL 3.5 FIX/IO 31395Q J ,844, NTL 3.5 FIX/IO 31395Q J ,838, NTL 3.5 FIX/IO 31395Q J ,806, NTL 3.5 FIX/IO 31395Q J ,138(5) None(6) NTL 3.5 WAC/IO 31395Q J ,991, NTL 3.0 FIX/IO 31395Q J ,140, NTL 3.0 FIX/IO 31395Q J ,323, NTL 3.0 FIX/IO 31395QK ,565, NTL 3.0 FIX/IO 31395QK ,400(5) None(6) NTL 3.0 WAC/IO 31395QK ,927, NTL 3.5 FIX/IO 31395QK ,036, NTL 3.5 FIX/IO 31395QK ,249, NTL 3.5 FIX/IO 31395QK ,941, NTL 3.5 FIX/IO 31395QK ,338(5) None(6) NTL 3.5 WAC/IO 31395QK ,799, NTL 4.0 FIX/IO 31395Q L ,331, NTL 4.0 FIX/IO 31395Q L ,493, NTL 4.0 FIX/IO 31395Q L , NTL 4.0 FIX/IO 31395Q L ,891(5) None(6) NTL 4.0 WAC/IO 31395Q L , NTL 5.0 FIX/IO 31395Q L , NTL 5.0 FIX/IO 31395Q L , NTL 5.0 FIX/IO 31395Q L ,533(5) None(6) NTL 5.0 WAC/IO 31395QM ,721, NTL 2.5 FIX/IO 31395QM ,039, NTL 2.5 FIX/IO 31395QM49 (Table continued on next page) Carefully consider the risk factors on page S-4 of this prospectus supplement and beginning on page 14 of the SMBS prospectus. Unless you understand and are able to tolerate these risks, you should not invest in the SMBS certificates. You should read the SMBS prospectus as well as this prospectus supplement and the other applicable disclosure documents specified in the SMBS prospectus. The SMBS certificates, together with interest thereon, are not guaranteed by the United States and do not constitute a debt or obligation of the United States or any of its agencies or instrumentalities other than Fannie Mae. The SMBS certificates are exempt from registration under the Securities Act of 1933 and are exempted securities under the Securities Exchange Act of If you own SMBS certificates of certain classes, you can exchange them for SMBS certificates of the corresponding combination classes to be delivered at the time of exchange. For a description of the combination classes of SMBS certificates, see Schedule 1 attached to this prospectus supplement and Description of the SMBS Certificates Exchange of SMBS Certificates in the SMBS prospectus. Because the mortgage loans represented in mortgage loan groups 11 through 15 have loan-to-value ratios in excess of 125%, Classes 11 through 15 and combination Class C3 are not eligible assets for a real estate mortgage investment conduit ( REMIC ). See Material Federal Income Tax Consequences in this prospectus supplement and Material Federal Income Tax Consequences Special Tax Attributes in the Single-Family MBS Prospectus. The SMBS certificates initially will be held by JPMorgan Chase Bank, N.A. ( Chase ), which may offer the SMBS certificates from time to time in negotiated transactions at varying prices either directly or through designated dealers. We expect the settlement date to be October 30, J.P. Morgan Securities LLC has provided various services to Fannie Mae in connection with the structuring of the SMBS certificates. See Plan of Distribution in this prospectus supplement. J.P. Morgan October 22, 2013

2 Class(1) Balance(2) Conversion Factor(3) Type(4) Rate Type(4) CUSIP Number $ 10,389, NTL 2.5% FIX/IO 31395QM ,250, NTL 2.5 FIX/IO 31395QM ,793,101(5) None(6) NTL 2.5 WAC/IO 31395QM ,291, NTL 3.0 FIX/IO 31395QM ,976, NTL 3.0 FIX/IO 31395QM ,756, NTL 3.0 FIX/IO 31395QN ,636, NTL 3.0 FIX/IO 31395QN ,547,254(5) None(6) NTL 3.0 WAC/IO 31395QN ,141, NTL 3.5 FIX/IO 31395QN ,096, NTL 3.5 FIX/IO 31395QN ,307, NTL 3.5 FIX/IO 31395QN ,800, NTL 3.5 FIX/IO 31395QN ,190,795(5) None(6) NTL 3.5 WAC/IO 31395QN ,314, NTL 2.5 FIX/IO 31395Q P ,334, NTL 2.5 FIX/IO 31395Q P ,340, NTL 2.5 FIX/IO 31395Q P ,681, NTL 2.5 FIX/IO 31395Q P ,546,654(5) None(6) NTL 2.5 WAC/IO 31395Q P ,250, NTL 3.0 FIX/IO 31395Q P ,568, NTL 3.0 FIX/IO 31395Q P ,397, NTL 3.0 FIX/IO 31395Q P ,835, NTL 3.0 FIX/IO 31395QQ ,544,792(5) None(6) NTL 3.0 WAC/IO 31395QQ ,372, NTL 3.5 FIX/IO 31395QQ ,170, NTL 3.5 FIX/IO 31395QQ ,068, NTL 3.5 FIX/IO 31395QQ ,876, NTL 3.5 FIX/IO 31395QQ ,395,289(5) None(6) NTL 3.5 WAC/IO 31395QQ ,167, NTL 4.0 FIX/IO 31395QQ ,869, NTL 4.0 FIX/IO 31395Q R ,947, NTL 4.0 FIX/IO 31395Q R ,966, NTL 4.0 FIX/IO 31395Q R ,311,584(5) None(6) NTL 4.0 WAC/IO 31395Q R ,171, NTL 3.0 FIX/IO 31395Q R ,225, NTL 3.0 FIX/IO 31395Q R ,106, NTL 3.0 FIX/IO 31395Q R ,231, NTL 3.0 FIX/IO 31395Q R ,665,958(5) None(6) NTL 3.0 WAC/IO 31395Q S ,256, NTL 3.5 FIX/IO 31395Q S ,101, NTL 3.5 FIX/IO 31395Q S ,339, NTL 3.5 FIX/IO 31395Q S ,022, NTL 3.5 FIX/IO 31395Q S ,571, NTL 3.5 FIX/IO 31395Q S ,545,658(5) None(6) NTL 3.5 WAC/IO 31395Q S ,561, NTL 4.0 FIX/IO 31395Q S ,033, NTL 4.0 FIX/IO 31395Q T ,650, NTL 4.0 FIX/IO 31395Q T ,388, NTL 4.0 FIX/IO 31395Q T ,724,188(5) None(6) NTL 4.0 WAC/IO 31395Q T ,908, NTL 3.0 FIX/IO 31395Q T ,748, NTL 3.0 FIX/IO 31395Q T ,175, NTL 3.0 FIX/IO 31395Q T ,462, NTL 3.0 FIX/IO 31395Q T ,565, NTL 3.0 FIX/IO 31395QU ,210, NTL 3.0 FIX/IO 31395QU ,790,319(5) None(6) NTL 3.0 WAC/IO 31395QU ,555, NTL 3.5 FIX/IO 31395QU ,259, NTL 3.5 FIX/IO 31395QU ,839, NTL 3.5 FIX/IO 31395QU ,936, NTL 3.5 FIX/IO 31395QU ,416, NTL 3.5 FIX/IO 31395QU ,668, NTL 3.5 FIX/IO 31395QV ,263,746(5) None(6) NTL 3.5 WAC/IO 31395QV ,886, NTL 4.0 FIX/IO 31395QV ,518, NTL 4.0 FIX/IO 31395QV ,680, NTL 4.0 FIX/IO 31395QV ,619, NTL 4.0 FIX/IO 31395QV ,959, NTL 4.0 FIX/IO 31395QV ,290, NTL 4.0 FIX/IO 31395QV ,382,691(5) None(6) NTL 4.0 WAC/IO 31395QW22 i

3 Class(1) Balance(2) Conversion Factor(3) Type(4) Rate Type(4) CUSIP Number $ 35,707, NTL 4.5% FIX/IO 31395QW ,553, NTL 4.5 FIX/IO 31395QW ,559, NTL 4.5 FIX/IO 31395QW ,860, NTL 4.5 FIX/IO 31395QW ,932, NTL 4.5 FIX/IO 31395QW ,587,513(5) None(6) NTL 4.5 WAC/IO 31395QW ,932, NTL 5.0 FIX/IO 31395QW ,200, NTL 5.0 FIX/IO 31395QX ,559, NTL 5.0 FIX/IO 31395QX ,430, NTL 5.0 FIX/IO 31395QX ,863, NTL 5.0 FIX/IO 31395QX ,777,998(5) None(6) NTL 5.0 WAC/IO 31395QX ,930, NTL 5.5 FIX/IO 31395QX ,973, NTL 5.5 FIX/IO 31395QX ,480, NTL 5.5 FIX/IO 31395QX ,073, NTL 5.5 FIX/IO 31395QY ,554(5) None(6) NTL 5.5 WAC/IO 31395QY ,891, NTL 4.5 FIX/IO 31395QY ,393, NTL 4.5 FIX/IO 31395QY ,349, NTL 4.5 FIX/IO 31395QY , NTL 4.5 FIX/IO 31395QY ,026,824(5) None(6) NTL 4.5 WAC/IO 31395QY ,114, NTL 5.0 FIX/IO 31395QY ,705, NTL 5.0 FIX/IO 31395Q Z ,471, NTL 5.0 FIX/IO 31395Q Z ,751, NTL 5.0 FIX/IO 31395Q Z , NTL 5.0 FIX/IO 31395Q Z ,399,454(5) None(6) NTL 5.0 WAC/IO 31395Q Z ,572, NTL 5.5 FIX/IO 31395Q Z ,274, NTL 5.5 FIX/IO 31395Q Z ,882, NTL 5.5 FIX/IO 31395Q Z ,001, NTL 5.5 FIX/IO 31395Q2A ,045, NTL 5.5 FIX/IO 31395Q 2 B , NTL 5.5 FIX/IO 31395Q 2 C ,983,005(5) None(6) NTL 5.5 WAC/IO 31395Q2D ,253, NTL 6.0 FIX/IO 31395Q 2 E ,300, NTL 6.0 FIX/IO 31395Q 2 F ,475, NTL 6.0 FIX/IO 31395Q2G ,843, NTL 6.0 FIX/IO 31395Q2H ,458, NTL 6.0 FIX/IO 31395Q 2 J ,816,952(5) None(6) NTL 6.0 WAC/IO 31395Q2K ,399, NTL 6.5 FIX/IO 31395Q 2 L ,301, NTL 6.5 FIX/IO 31395Q2M ,519, NTL 6.5 FIX/IO 31395Q2N ,935, NTL 6.5 FIX/IO 31395Q 2 P ,213,286(5) None(6) NTL 6.5 WAC/IO 31395Q2Q2 (1) The classes listed in the chart above (other than the WAC Classes ) are exchangeable classes. (2) principal balance as of the issue date. Each class is an interest only class. (3) The conversion factor for each applicable class of SMBS certificates is a number which, when multiplied by the aggregate principal balance of the mortgage loans represented in the related mortgage loan group, will equal the notional principal balance of that class. (4) See Class Definitions and Abbreviations in Exhibit A to the SMBS prospectus. (5) The notional principal balances of these Classes initially will be as shown above. Thereafter, the notional principal balance of each of these classes will be calculated each month by dividing (i) the applicable monthly excess yield payments attributable to the mortgage loans represented in the related mortgage loan group that are directed to that class by (ii) one-twelfth of the fixed rate of interest borne by that class of SMBS certificates. (6) Because of the method of calculating the notional principal balances of these Classes, these classes do not have conversion factors. ii

4 TABLE OF CONTENTS AVAILABLE INFORMATION... S- 3 ADDITIONAL RISK FACTORS... S- 4 DESCRIPTION OF THE SMBS CERTIFICATES... S- 6 General... S- 6 Excess Yield... S- 6 Representations and Warranties in Connection with Excess Yield... S- 6 Mortgage Loan Groups... S- 7 Reductions in the Balances of Classes (Other than the WAC Classes)... S-11 Changes in the Balances of the WAC Classes... S-11 Calculations... S-11 Fannie Mae Guaranty... S-11 No Optional Termination of the Trust or the Related MBS... S-11 Payments on the SMBS Certificates... S-11 Other Authorized Classes of SMBS Certificates Exchanges... S-11 Procedures and Fees Relating to Exchanges... S-12 Sensitivity to Prepayments... S-12 MATERIAL FEDERAL INCOME TAX CONSEQUENCES... S-16 PLAN OF DISTRIBUTION... S-16 SCHEDULE 1... A- 1 Page S-2

5 AVAILABLE INFORMATION You should purchase the certificates only if you have read and understood this prospectus supplement and the following documents (the Disclosure Documents ): our Prospectus for Fannie Mae Guaranteed Stripped Mortgage-Backed Securities dated February 1, 2012 (the SMBS Prospectus ); our Prospectus for Fannie Mae Guaranteed Pass-Through Certificates (Single-Family Residential Mortgage Loans) dated O March 1, 2013, for all MBS issued on or after March 1, 2013, O February 1, 2012, for all MBS issued on or after February 1, 2012 and prior to March 1, 2013, O July 1, 2011, for all MBS issued on or after July 1, 2011 and prior to February 1, 2012, O June 1, 2009, for all MBS issued on or after January 1, 2009 and prior to July 1, 2011, O April 1, 2008, for all MBS issued on or after June 1, 2007 and prior to January 1, 2009, or O January 1, 2006, for all other MBS (as applicable, the Single-Family MBS Prospectus ); and any information incorporated by reference in this prospectus supplement as discussed below and under the heading Incorporation by Reference in the SMBS Prospectus. For a description of current servicing policies generally applicable to existing Fannie Mae MBS pools, see Yield, Maturity and Prepayment Considerations in the Single-Family MBS Prospectus dated March 1, The Single-Family MBS Prospectus is incorporated by reference in this prospectus supplement. This means that we are disclosing information in that document by referring you to it. That document is considered part of this prospectus supplement, so you should read this prospectus supplement, and any applicable supplements or amendments, together with that document. You can obtain copies of the Disclosure Documents by writing or calling us at: Fannie Mae MBS Helpline 3900 Wisconsin Avenue, N.W., Area 2H-3S Washington, D.C (telephone ). In addition, the Disclosure Documents, together with the class factors, are available on our corporate Web site at You also can obtain copies of the SMBS Prospectus and the Single-Family MBS Prospectus by writing or calling: J.P. Morgan Securities LLC c/o Broadridge Financial Solutions Prospectus Department 1155 Long Island Avenue Edgewood, NY (telephone ). S-3

6 ADDITIONAL RISK FACTORS Mortgage loan prepayments will reduce your yield. The yields on the SMBS certificates will be extremely sensitive to the prepayment experience of the mortgage loans represented in the related mortgage loan groups. The mortgage loans represented in the mortgage loan groups have been included in various pools that back previously issued MBS. For a discussion of certain prepayment considerations, investors should review the Single-Family MBS Prospectus under the headings Risk Factors Risks Relating to Yield and Prepayment and Yield, Maturity and Prepayment Considerations. You should carefully consider the associated risks, including the risk that you may not fully recover your initial investment. Changes in the weighted average excess yield rates will affect yields on the WAC Classes. Although the interest rates borne by Classes 5, 10, 15, 20, 25, 30, 34, 39, 44, 49, 54, 59, 64, 69, 74,80, 85, 92, 99, 106, 112, 118, 123, 128, 134, 141, 147 and 152 (the WAC Classes ) are fixed, the notional principal balance of each of these classes will be recalculated each month as described in footnote (5) on the cover of this prospectus supplement. As a result of this calculation, the notional principal balances of the WAC Classes are expected to vary due to reductions in the principal balances of the mortgage loans represented in the related mortgage loan groups as well as due to changes in the weighted average of the applicable excess yield rates on such mortgage loans. Accordingly, if you purchase an SMBS certificate of a WAC Class, the timing of changes in the weighted average of the excess yield rates of the mortgage loans represented in the related mortgage loan group may significantly affect your yield, even if the weighted average of those respective excess yield rates is consistent with your expectations. In general, the earlier the change in the level of the weighted average excess yield rate, the greater the effect on your yield to maturity. As a result, if the weighted average excess yield rate during any period is lower than you expect, a corresponding increase in that rate during a later period may not fully offset the effect of the earlier rate on your yield. Fannie Mae guaranty is the sole source of credit support. If we were unable to perform our guaranty obligations, you would receive interest payments on your SMBS certificates only to the extent that corresponding excess yield payments on the mortgage loans represented in the related mortgage loan groups were actually made by the borrowers or advanced by the servicer. If that happened, delinquencies and defaults on the mortgage loans would directly affect the amounts that you would receive each month. Moreover, if the continued performance of our duties as master servicer under the MBS trust agreement were determined to be no longer permissible under applicable law or if we were to default on certain of our obligations, a successor to us could be named under the MBS trust agreement. In that event, a claim might be made that all or a portion of the excess yield payable on the SMBS certificates should be available as compensation to that successor. If such a claim were successful and we were unable to perform under our guaranty, interest payments to you on the SMBS certificates could be reduced in whole or in part. Mortgage loans with loan-to-value ratios greater than 125% may have different prepayment and default characteristics than conforming mortgage loans generally. The mortgage loans represented in mortgage loan groups 11 through 15 have loan-to-value ratios greater than 125% (a very high LTV loan ). Although information is limited regarding the default and prepayment rates for very high LTV loans, it is possible that loans of this type may experience rates of default and voluntary prepayment that differ from otherwise comparable loans with lower loan-to-value ratios. Very high LTV loans may be eligible for refinancing under the federal Home Affordable Refinancing Program ( HARP ) and our Refi Plus program. Moreover, our mortgage seller/servicers are permitted to solicit refinancings of very high LTV loans even if the related seller/servicers are not soliciting refinancings from borrowers more generally so long as they are also soliciting eligible borrowers whose mortgage loans are owned or guaranteed by Freddie Mac. If very high LTV loans are refinanced, the weighted average life of your SMBS certificates may be reduced and, in the case of interest only SMBS certificates, as well as certain other classes of SMBS certificates purchased at a premium, your yield may be adversely affected. S-4

7 In addition, very high LTV loans may already have been refinanced. A refinanced very high LTV loan is likely to have a lower interest rate than the predecessor loan, which may enable the related borrower to continue to make monthly principal and interest payments. In that case, the weighted average life of your SMBS certificates may be extended and, in the case of certain classes of SMBS certificates purchased at a discount, your yield may be adversely affected. In general, very high LTV loans may be viewed as posing a greater risk of default than loans with lower loan-to-values because borrowers may decide that it is not in their economic interest to continue making monthly payments. To the extent the very high LTV loans go into default, the weighted average life of your SMBS certificates may be reduced and, in the case of interest only SMBS certificates, as well as certain other classes of SMBS certificates purchased at a premium, your yield may be adversely affected. See Description of the SMBS Certificates General Mortgage Loan Groups in this prospectus supplement. S-5

8 DESCRIPTION OF THE SMBS CERTIFICATES The SMBS certificates will be issued pursuant to the trust agreement. Terms used and not otherwise defined in this prospectus supplement have the meanings assigned to them in the SMBS Prospectus. General Excess Yield. The trust assets consist of certain interest amounts (collectively, the Excess Yield ) payable on the mortgage loans represented in the related mortgage loan groups. The mortgage loans, which currently are serviced by JPMorgan Chase Bank, N.A. ( Chase ), have been included in various pools that back previously issued MBS. The Excess Yield is payable at rates (each, an Excess Yield Rate ) that, with respect to any particular mortgage loan, generally will represent in the aggregate the following: the interest rate borne by that mortgage loan less the applicable pass-through rate on the MBS backed by that mortgage loan less the guaranty fee rate applied to that mortgage loan in connection with the MBS less the minimum servicing fee rate for that mortgage loan less the premium amounts for lender-purchased mortgage insurance, if any, required to be paid by Chase from interest amounts payable on that mortgage loan (such amounts being converted to an annual rate). The portion of the Excess Yield attributable to any particular mortgage loan may be directed to a single class of SMBS certificates at the applicable Excess Yield Rate or may be divided into multiple components and directed to several classes of SMBS certificates at rates that in the aggregate equal the applicable Excess Yield Rate. As a result, a particular mortgage loan may be represented in a single mortgage loan group or in multiple mortgage loan groups. As long as each mortgage loan is included in the trust, and subject to certain additional conditions, the servicer will be obligated to advance the portion of the Excess Yield attributable to that mortgage loan to the trust whether or not the related borrower makes the regularly scheduled monthly payment. As described below under Fannie Mae Guaranty, we guaranty that all required payments of interest on the SMBS certificates will be available for distributions on time to the holders. The mortgage loans are being serviced pursuant to the Mortgage Selling and Servicing Contracts between Chase and us as well as the Fannie Mae Selling and Servicing Guides. The Fannie Mae Selling and Servicing Guides restrict Chase s ability to target borrowers for refinance. Chase has agreed, among other things, not to specifically target borrowers whose loans are owned or securitized by us to the exclusion of other loans with similar characteristics. Representations and Warranties in Connection with Excess Yield. In connection with the assignment of the Excess Yield by Chase to us for transfer to the trust, Chase has made certain representations and warranties with respect to its ownership of the Excess Yield, its right to assign the Excess Yield, and with respect to servicing of the mortgage loans included in the related MBS. In the event of a breach of any of those representations and warranties that is not cured within a designated period, we are required to purchase the affected portion of the Excess Yield from the trust S-6

9 and, on the distribution date immediately following the withdrawal, include in the amount otherwise payable on the affected class or classes of SMBS certificates an amount calculated as follows: for each affected class that has a conversion factor, the product obtained by multiplying (i) the stated principal balance of the related mortgage loan (after giving effect to all principal payments due thereon prior to the month of the current distribution date) by (ii) the conversion factor for that class as specified on the cover of this prospectus supplement by (iii) the Assumed Price for that class (expressed as a percentage) as set forth in the table below entitled Pre-Tax Yields to Maturity and for each affected class that does not have a conversion factor, the product obtained by multiplying (i) the stated principal balance of the related mortgage loan (after giving effect to all principal payments due thereon prior to the month of the current distribution date) by (ii) a fraction the numerator of which is the allocable portion of the Excess Yield Rate of the related mortgage loan that corresponds to the amount distributable in respect of that class on the current distribution date and the denominator of which is the interest rate for that class by (iii) the Assumed Price for that class (expressed as a percentage) as set forth in the table below entitled Pre-Tax Yields to Maturity. Following the distribution of any such additional amounts in connection with the repurchase of any Excess Yield from the trust, our monthly disclosure for the related distribution date will reflect a higher interest rate than would have been the case if we had not distributed these additional amounts. Our monthly disclosures are available on our Web site. Mortgage Loan Groups. Each class of SMBS certificates listed on the cover of this prospectus supplement relates to a single mortgage loan group having the same numerical designation as that class. As stated above, a particular mortgage loan may be represented in a single mortgage loan group or in multiple mortgage loan groups. The notional principal balance of each class of SMBS certificates (other than the WAC Classes) will be determined by multiplying the applicable conversion factor shown on the cover by the aggregate principal balance of the mortgage loans represented in the related mortgage loan group. For a description of how the notional principal balances of the WAC Classes are calculated, see footnote (5) on the cover of this prospectus supplement. In addition, the mortgage loans represented in mortgage loan groups 1 through 10 have been refinanced under Fannie Mae Refi Plus and are designated as high loan-to-value ratio loans, with loan-to-value ratios ranging from greater than 105% up to 125% at the time of refinance. These loans are targeted at borrowers who have demonstrated an acceptable payment history on their mortgage loans but may have been unable to refinance due to a decline in home prices or the unavailability of mortgage insurance. Fannie Mae Refi Plus refinancing is available only if the new mortgage loan either reduces the monthly principal and interest payment for the borrower or provides a more stable loan product (such as movement from an adjustable-rate loan to a fixed rate loan). For more information on the Home Affordable Refinance Program, see The Mortgage Loans High Loan-to-Value Mortgage Loans in the Single-Family MBS Prospectus dated March 1, 2013 and on our Web site at See also Risk Factors Risks Relating to Yield and Prepayment Refinancing of Loans; Sale of Property Mortgage loans with loan-to-value ratios S-7

10 greater than 80% may have different prepayment and default characteristics than conforming mortgage loans generally in the Single-Family MBS Prospectus dated March 1, Furthermore, each mortgage loan represented in mortgage loan groups 11 through 15 is a very high LTV loan with a loan-to-value ratio greater than 125%. Borrowers may be eligible to refinance very high LTV loans if we purchased those loans on or before May 31, For a description of very high LTV loans, see The Mortgage Loans High Loan-to-Value Mortgage Loans in the Single- Family MBS Prospectus dated March 1, See also Additional Risk Factors Mortgage loans with loan-to-value ratios greater than 125% may have different prepayment and default characteristics than conforming mortgage loans generally in this prospectus supplement. Finally, the mortgage loans represented in mortgage loan groups 16 through 34 have been designated as jumbo-conforming or high balance mortgage loans as described further under The Mortgage Loans Special Feature Mortgage Loans Loans with Balances Exceeding our Traditional Conforming Loan Limits in the Single-Family MBS Prospectus dated March 1, For periodic updates to that description, please refer to the Pool Prefix Glossary available on our Web site at For additional information about the mortgage loans represented in mortgage loan groups 16 through 34, see the Final Data Statement for the Trust and the related prospectus supplement for each MBS. See also Risk Factors Risks Relating to Yield and Prepayment Refinancing of Loans; Sale of Property Jumbo-conforming mortgage loans, which have original principal balances that exceed our traditional conforming loan limits, may prepay at different rates than conforming balance mortgage loans generally in the Single-Family MBS Prospectus dated March 1, The following table sets forth certain information with respect to the mortgage loans represented in each mortgage loan group as of the issue date. Mortgage Loan Group Weighted Average Coupon or WAC* (%) Approximate Range of Coupons of the Mortgage Loans (%) Weighted Average Remaining Term to Maturity or WAM* (in months) Weighted Average Modified Calculated Loan Age or CAGE** (in months) 1(1) (1) (1) (1) (1) / / / 9 6(1) (1) (1) (1) (1) / / / 21 11(2) (2) (2) (2) (2) / / / 10 16(3) (3) (3) (3) (3) / / / 11 21(3) (3) (3) (3) (3) / / / 11 26(3) (3) (3) (3) (3) / / / 36 31(3) (3) (3) (3) / / / 71 S-8

11 Mortgage Loan Group Weighted Average Coupon or WAC* (%) Approximate Range of Coupons of the Mortgage Loans (%) Weighted Average Remaining Term to Maturity or WAM* (in months) Weighted Average Modified Calculated Loan Age or CAGE** (in months) / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / 22 S-9

12 Mortgage Loan Group Weighted Average Coupon or WAC* (%) Approximate Range of Coupons of the Mortgage Loans (%) Weighted Average Remaining Term to Maturity or WAM* (in months) Weighted Average Modified Calculated Loan Age or CAGE** (in months) / / / / / / / / / / / / / / / / / / / / / / / / 99 * Except as otherwise specified, the amounts shown in the table are weighted by the unpaid principal balances of the mortgage loans in the applicable mortgage loan group. ** The weighted average modified calculated loan age of the mortgage loans in each mortgage loan group as of the issue date is equal to the sum of (i) the number of months elapsed from the month in which the first monthly payment was due on each mortgage loan to the month in which the SMBS certificates are issued plus (ii) one month. Except as otherwise specified, the amounts shown in the table are weighted by the unpaid principal balances of the mortgage loans in the applicable loan group. The figures on the right of this column are weighted by (i) the unpaid principal balances of the mortgage loans in the applicable mortgage loan group and (ii) the applicable Excess Yield Rates of those mortgage loans. (1) The mortgage loans represented in these mortgage loan groups are high loan-to-value ratio loans, as described on pages S-7 and S-8. (2) The mortgage loans represented in these mortgage loan groups are very high LTV loans, as described on page S-8. (3) The mortgage loans represented in these mortgage loan groups are jumbo-conforming or high balance loans, as described on page S-8. Each mortgage loan represented in a mortgage loan group (other than the mortgage loan groups backing the WAC Classes) has the identical Excess Yield Rate with respect to that mortgage loan group, and the interest rate on the corresponding class of SMBS certificates will be equal to the applicable Excess Yield Rate multiplied by a fraction, the numerator of which is 1 and the denominator of which is the applicable conversion factor. By contrast, the mortgage loans represented in the mortgage loan groups backing the WAC Classes will have different Excess Yield Rates. As a result, although the interest rates borne by the WAC Classes are fixed, the method by which we calculate S-10

13 the notional principal balances of these classes will cause those notional principal balances to vary from month to month as a result of changes in the weighted average of the Excess Yield Rates on the mortgage loans represented in the related mortgage loan groups. Reductions in the Balances of Classes (Other than the WAC Classes). The mortgage loans represented in the related mortgage loan groups have been included in various pools that back MBS. payments attributable to the mortgage loans represented in a mortgage loan group, including payments resulting from prepayments of the mortgage loans or repurchases of the mortgage loans from an MBS pool, will reduce the aggregate principal balance of the related mortgage loan group by the amount of the principal payments and, in turn, will reduce the notional principal balance of the corresponding class of SMBS certificates by the amount of those payments multiplied by the applicable conversion factor. In general, the notional principal balance of a class of SMBS certificates will be reduced as a result of principal payments at the same time and in the same manner (subject to the application of the related conversion factor) as principal payments reduce the principal balance of the related MBS. As a result, mortgage loans that are prepaid in full or repurchased from the related MBS pool will be treated as having a principal balance of zero for purposes of calculating the notional principal balance of the related class or classes of SMBS certificates. Changes in the Balances of the WAC Classes. The notional principal balances of the WAC Classes will be recalculated each month as described in footnote (5) on the cover of this prospectus supplement. Reductions in the principal balances of the mortgage loans represented in the related mortgage loan groups will tend to reduce the notional principal balances of these classes. However, since the notional principal balances of these classes bear no fixed relation to the principal balances of the related mortgage loans, whether by application of a conversion factor or otherwise, it is possible that the notional principal balance of one or more of these classes may actually increase from time to time. Calculations. All calculations made with respect to the SMBS certificates will be final and binding, absent manifest error. Fannie Mae Guaranty. We guarantee that required payments of interest on the SMBS certificates will be available for distribution on time to the holders. For a description of the required payments of interest, see Payments on the SMBS Certificates below. Our guaranty is not backed by the full faith and credit of the United States. No Optional Termination of the Trust or the Related MBS. We have no option to effect an early termination of the trust. Further, we will not repurchase the mortgage loans underlying any MBS in a clean-up call. See The Trust Documents Termination in the Single-Family MBS Prospectus dated March 1, Payments on the SMBS Certificates We will pay interest on the SMBS certificates at the applicable annual interest rates specified on the cover. We calculate interest based on a 360-day year consisting of twelve 30-day months. We pay interest monthly on each distribution date, beginning in the month after the settlement date. to be paid on each SMBS certificate on a distribution date will consist of one month s interest on the outstanding notional principal balance of that SMBS certificate immediately prior to that distribution date. to be paid on each distribution date will accrue on the SMBS certificates during the calendar month preceding the month in which the distribution date occurs. Other Authorized Classes of SMBS Certificates Exchanges In addition to the classes of SMBS certificates listed on the cover of this prospectus supplement, twenty-five additional classes of SMBS certificates will be authorized for issuance with respect to the SMBS trust. As contemplated in the SMBS Prospectus, SMBS certificates of one or more classes will be exchangeable for combination SMBS certificates on the book-entry system of S-11

14 the Federal Reserve Banks only in the combinations listed on Schedule 1. You also may exchange all or a portion of the combination SMBS certificates for the related SMBS certificates in the same manner. This process may occur repeatedly. Procedures and Fees Relating to Exchanges A holder wishing to exchange SMBS certificates must notify our Structured Transactions Department at (202) through one of our SMBS Dealer Group dealers no later than two business days before the proposed exchange date. Subject to Fannie Mae s approval, the exchange date can be any business day other than the first eleven calendar days of the month. The notice must include the proposed exchange date as well as the outstanding notional principal amounts of both the SMBS certificates to be exchanged and the SMBS certificates to be received. The notice becomes irrevocable on the second business day before the proposed exchange date. Since exchanges in any month will be effective subsequent to the record date for the distribution date in that month, all distributions in the month of exchange will be made in respect of the SMBS certificates surrendered for exchange. The first distribution in respect of the SMBS certificates received in any exchange will take place in the month following the month of exchange. The fee will be $2,000 per class of SMBS certificates surrendered for exchange. Sensitivity to Prepayments The following tables indicate certain relationships between assumed purchase prices of the SMBS certificates, and the yields to maturity on the SMBS certificates, stated on a corporate bond equivalent basis. For purposes of these tables we assumed that: each class of SMBS certificates was sold on the settlement date at the assumed price listed below, which is the percentage of its original notional principal balance, plus accrued interest thereon to the settlement date, the settlement date for the sale of the SMBS certificates is October 30, 2013, all of the mortgage loans represented in the related mortgage loan group have the WACs, WAMs and weighted average modified CAGEs listed in the table on pages S-8 through S-10 of this prospectus supplement (excluding WACs, WAMs and weighted average modified CAGEs having a designation), and all of the mortgage loans prepay according to the levels of CPR indicated below. Pre-Tax Yields to Maturity CPR Prepayment Assumptions Class Assumed Price 5% 7.5% 10% 20% 40% 60% % 6.5% 3.8% 1.1% (10.3)% (35.4)% (65.9)% % 6.5% 3.7% 1.0% (10.4)% (35.5)% (66.1)% % 6.7% 4.0% 1.2% (10.2)% (35.3)% (66.0)% % 6.7% 4.0% 1.2% (10.2)% (35.4)% (66.1)% % 6.6% 3.9% 1.2% (10.2)% (35.4)% (66.3)% % 8.0% 5.3% 2.5% (8.9)% (34.2)% (64.7)% % 8.1% 5.4% 2.6% (8.8)% (34.1)% (64.8)% % 8.0% 5.3% 2.5% (8.9)% (34.2)% (64.8)% % 8.0% 5.3% 2.6% (8.9)% (34.2)% (65.0)% % 8.0% 5.3% 2.6% (8.9)% (34.2)% (65.1)% % 7.4% 4.7% 1.9% (9.5)% (34.7)% (65.2)% % 7.4% 4.7% 1.9% (9.5)% (34.7)% (65.3)% % 7.4% 4.7% 1.9% (9.5)% (34.7)% (65.3)% S-12

15 CPR Prepayment Assumptions Class Assumed Price 5% 7.5% 10% 20% 40% 60% % 7.5% 4.8% 2.0% (9.4)% (34.7)% (65.5)% % 7.4% 4.7% 1.9% (9.5)% (34.8)% (65.8)% % 5.7% 3.0% 0.3% (11.1)% (36.1)% (66.6)% % 5.7% 3.0% 0.3% (11.1)% (36.1)% (66.7)% % 5.8% 3.1% 0.4% (11.0)% (36.1)% (66.6)% % 5.8% 3.1% 0.4% (11.0)% (36.1)% (66.8)% % 5.8% 3.1% 0.4% (11.0)% (36.1)% (67.2)% % 11.5% 8.8% 6.0% (5.7)% (31.3)% (62.1)% % 11.6% 8.8% 6.0% (5.6)% (31.3)% (62.2)% % 11.5% 8.7% 5.9% (5.7)% (31.4)% (62.3)% % 11.5% 8.7% 5.9% (5.7)% (31.4)% (62.5)% % 11.5% 8.7% 5.9% (5.7)% (31.4)% (62.6)% % 10.5% 7.8% 5.0% (6.6)% (32.2)% (63.0)% % 10.5% 7.7% 5.0% (6.6)% (32.2)% (63.1)% % 10.4% 7.6% 4.8% (6.7)% (32.3)% (63.2)% % 10.5% 7.7% 5.0% (6.6)% (32.2)% (63.3)% % 10.5% 7.7% 4.9% (6.6)% (32.2)% (63.4)% % 21.5% 18.7% 15.8% 3.7% (23.1)% (55.1)% % 22.1% 19.2% 16.3% 4.2% (22.7)% (55.0)% % 21.1% 18.2% 15.3% 3.3% (23.4)% (55.5)% % 21.4% 18.5% 15.6% 3.5% (23.2)% (55.5)% % 9.2% 6.6% 3.8% (7.5)% (32.6)% (62.5)% % 9.5% 6.8% 4.1% (7.3)% (32.4)% (62.4)% % 10.3% 7.5% 4.8% (6.6)% (31.8)% (61.9)% % 9.5% 6.8% 4.1% (7.3)% (32.4)% (62.4)% % 9.3% 6.6% 3.8% (7.5)% (32.6)% (62.5)% % 13.3% 10.6% 7.8% (3.7)% (29.3)% (59.7)% % 13.3% 10.6% 7.8% (3.7)% (29.3)% (59.7)% % 15.1% 12.4% 9.6% (2.1)% (27.8)% (58.6)% % 13.3% 10.6% 7.8% (3.7)% (29.3)% (59.7)% % 13.3% 10.6% 7.8% (3.7)% (29.3)% (59.7)% % 12.0% 9.3% 6.5% (4.9)% (30.3)% (60.5)% % 11.3% 8.6% 5.9% (5.5)% (30.8)% (60.9)% % 10.9% 8.2% 5.5% (5.9)% (31.1)% (61.2)% % 11.3% 8.6% 5.8% (5.6)% (30.8)% (61.0)% % 11.3% 8.6% 5.9% (5.5)% (30.8)% (60.9)% % 7.9% 5.2% 2.4% (8.9)% (34.1)% (64.0)% % 7.7% 5.0% 2.2% (9.1)% (34.2)% (64.1)% % 7.9% 5.2% 2.5% (8.9)% (34.0)% (63.9)% % 7.6% 5.0% 2.2% (9.1)% (34.2)% (64.1)% % 7.8% 5.1% 2.4% (9.0)% (34.1)% (64.0)% % 8.7% 6.0% 3.3% (8.1)% (33.3)% (63.4)% % 8.8% 6.0% 3.3% (8.1)% (33.3)% (63.3)% % 9.5% 6.8% 4.0% (7.4)% (32.8)% (62.9)% % 8.8% 6.1% 3.3% (8.1)% (33.3)% (63.3)% % 8.8% 6.1% 3.3% (8.1)% (33.3)% (63.4)% % 12.1% 9.3% 6.5% (5.0)% (30.6)% (61.1)% % 11.8% 9.0% 6.2% (5.3)% (30.9)% (61.3)% % 12.2% 9.4% 6.6% (4.9)% (30.5)% (61.0)% % 11.9% 9.1% 6.3% (5.2)% (30.8)% (61.2)% % 11.6% 8.9% 6.1% (5.4)% (30.9)% (61.3)% % 12.1% 9.4% 6.6% (5.0)% (30.5)% (61.0)% % 11.1% 8.4% 5.6% (5.9)% (31.3)% (61.6)% % 11.8% 9.1% 6.3% (5.2)% (30.8)% (61.1)% % 11.0% 8.2% 5.5% (6.0)% (31.4)% (61.7)% S-13

16 CPR Prepayment Assumptions Class Assumed Price 5% 7.5% 10% 20% 40% 60% % 12.5% 9.7% 6.9% (4.6)% (30.3)% (60.8)% % 7.1% 4.4% 1.6% (9.7)% (34.9)% (64.8)% % 7.2% 4.4% 1.7% (9.7)% (34.8)% (64.8)% % 7.3% 4.6% 1.8% (9.6)% (34.7)% (64.8)% % 7.1% 4.4% 1.6% (9.7)% (34.9)% (65.0)% % 7.2% 4.5% 1.8% (9.6)% (34.7)% (64.9)% % 8.7% 6.0% 3.3% (8.2)% (33.5)% (63.6)% % 8.8% 6.1% 3.3% (8.1)% (33.5)% (63.6)% % 8.7% 6.0% 3.3% (8.2)% (33.5)% (63.7)% % 8.6% 5.9% 3.1% (8.3)% (33.6)% (63.9)% % 8.7% 5.9% 3.2% (8.3)% (33.6)% (64.0)% % 8.8% 6.1% 3.3% (8.1)% (33.5)% (63.9)% % 10.6% 7.8% 5.1% (6.5)% (32.0)% (62.3)% % 10.5% 7.8% 5.0% (6.5)% (32.0)% (62.4)% % 10.7% 7.9% 5.1% (6.4)% (31.9)% (62.4)% % 10.7% 8.0% 5.2% (6.3)% (31.9)% (62.4)% % 10.5% 7.8% 5.0% (6.5)% (32.0)% (62.5)% % 5.7% 3.0% 0.3% (11.1)% (36.1)% (66.3)% % 5.8% 3.1% 0.3% (11.0)% (36.1)% (66.3)% % 5.7% 3.0% 0.2% (11.1)% (36.1)% (66.5)% % 5.7% 3.0% 0.3% (11.1)% (36.1)% (66.6)% % 5.7% 3.0% 0.2% (11.1)% (36.2)% (66.9)% % 5.7% 3.0% 0.3% (11.0)% (36.1)% (66.9)% % 5.8% 3.1% 0.3% (11.0)% (36.1)% (66.7)% % 7.6% 4.9% 2.2% (9.3)% (34.5)% (64.8)% % 7.7% 4.9% 2.2% (9.2)% (34.5)% (64.8)% % 7.7% 5.0% 2.2% (9.2)% (34.5)% (64.8)% % 7.6% 4.9% 2.1% (9.3)% (34.6)% (65.0)% % 7.6% 4.9% 2.2% (9.3)% (34.5)% (65.2)% % 7.4% 4.7% 1.9% (9.5)% (34.8)% (65.6)% % 7.7% 5.0% 2.2% (9.2)% (34.5)% (65.2)% % 10.6% 7.9% 5.1% (6.5)% (32.1)% (62.7)% % 10.7% 7.9% 5.1% (6.4)% (32.0)% (62.7)% % 10.7% 7.9% 5.1% (6.4)% (32.0)% (62.8)% % 10.6% 7.9% 5.1% (6.5)% (32.1)% (62.9)% % 10.4% 7.6% 4.9% (6.7)% (32.3)% (63.2)% % 10.7% 7.9% 5.1% (6.5)% (32.1)% (63.1)% % 10.7% 7.9% 5.1% (6.5)% (32.1)% (62.9)% % 14.2% 11.4% 8.6% (3.1)% (29.1)% (60.2)% % 14.3% 11.5% 8.7% (3.1)% (29.1)% (60.1)% % 14.2% 11.4% 8.5% (3.2)% (29.2)% (60.2)% % 14.2% 11.4% 8.6% (3.1)% (29.1)% (60.3)% % 14.2% 11.4% 8.6% (3.2)% (29.1)% (60.4)% % 14.2% 11.4% 8.6% (3.1)% (29.1)% (60.4)% % 17.6% 14.8% 11.9% 0.0% (26.4)% (57.8)% % 17.6% 14.8% 11.9% 0.0% (26.4)% (57.8)% % 17.6% 14.8% 11.9% 0.0% (26.3)% (57.9)% % 17.6% 14.7% 11.9% 0.0% (26.4)% (57.9)% % 17.6% 14.8% 11.9% 0.0% (26.4)% (58.0)% % 17.6% 14.8% 11.9% 0.0% (26.4)% (57.9)% % 25.6% 22.6% 19.7% 7.4% (19.8)% (52.2)% % 25.6% 22.6% 19.7% 7.4% (19.8)% (52.3)% % 25.6% 22.6% 19.7% 7.4% (19.8)% (52.3)% % 25.5% 22.6% 19.7% 7.4% (19.8)% (52.3)% % 25.6% 22.7% 19.7% 7.4% (19.8)% (52.4)% S-14