2003 Finance Charter: FNM

Assets & Liabilities Policy Committee Charter

The Committee shall consist of a chair and such directors as the Board shall appoint.

The Committee shall assist the Board in its oversight of management's interest rate and credit risk and capital management activities by:
developing, through regular or special meetings with management, such in-depth and specialized knowledge on matters relating to assets and liabilities management as the Board or the Committee chair deem appropriate; and
reviewing management's policy proposals and performance, and making recommendations and reports to the Board, on matters relating to the company's assets and liabilities; the Committee shall review, among other areas, the following:
credit risk management policies and management's performance with respect to those policies;
interest rate risk management policies and management's performance with respect to those policies;
investment guidelines for the Liquid Investment Portfolio and management's compliance with those guidelines;
the use and issuance of derivative securities; and
Fannie Mae's dividend payments.
The Committee shall receive periodic reports from management on matters relating to the management of the corporation's assets and liabilities pursuant to a schedule that the Committee chair develops in consultation with management. These reports shall include, but not be limited to, reports:
from the Credit Policy Committee regarding the corporation's credit risk management activities,
from the Chief Financial Officer regarding the corporation's interest rate risk management activities; and
from the Chief Financial Officer regarding the corporation's liquid investments, use of derivatives, and capital account management activities.
The Committee shall make regular reports to the Board on its oversight activities. These reports will generally occur after each Committee meeting or at such other times as the Committee deems appropriate.