Condos Now Eligible for Fannie Mae Home Keeper Reverse Mortgage; Seniors May Convert Equity to Cash, Increase Home Purchase Power.

WASHINGTON--(BUSINESS WIRE)--Oct. 1, 1997--For the first time seniors may use a Home Keeper reverse mortgage either to convert the equity they have in their condominiums to cash or to purchase a new condominium as a principal residence.

The change is included in an expansion of the Home Keeper family of mortgages announced today by Fannie Mae (NYSE:FNM
FNM Free National Movement (Bahamas)
FNM Foot and Mouth ), the nation's largest source of home mortgage funds.

"We have received many inquiries from older Americans who live in condominiums or who want to buy condominiums," said Robert Sahadi, Fannie Mae's vice president of housing initiatives. "In response to these requests, we have incorporated condos as eligible properties for Home Keeper and Home Keeper for Purchase."

The Home Keeper is an adjustable-rate mortgage that allows senior homeowners to borrow against the value of their home and receive the proceeds according to the payment option they select.

Borrowers and co-borrowers must be at least 62 years old and listed as the property title holder. Condominium properties must meet Fannie Mae's standard property eligibility guidelines and must be the borrower's principal residence.

Home Keeper for Purchase is an innovative reverse mortgage feature for seniors making lifestyle changes that include buying a new home.

Home Keeper for Purchase enables seniors to increase their buying power and retain more of their cash assets while eliminating their monthly mortgage payment. As with Home Keeper, the borrower gets flexibility that is not available through standard first mortgage financing.

Repayment of Home Keeper mortgages is deferred until the borrower no longer occupies the property as his or her principal residence. A borrower cannot be forced to sell or vacate the property to pay off the loan, even if the total of the mortgage payments plus interest exceeds the value of the home.

A Home Keeper mortgage becomes due and payable when the borrower dies, moves, sells the property or transfers title to another individual.

For more information on Home Keeper and Home Keeper for Purchase, consumers may call Fannie Mae's Consumer Resource Center toll-free at 1-800-7FANNIE (1-800-732-6643), Monday through Friday, 9 a.m. to 5 p.m. Eastern Standard Time. -0-

Fannie Mae is a congressionally chartered, shareholder-owned company and the nation's largest source of funds for home mortgages. It has committed to provide $1 trillion in targeted lending for 10 million homes by the end of the decade.

The targeted lending will serve low- and moderate-income families, minorities, new immigrants, residents of central cities and other underserved areas, and people who have special housing needs. More information about Fannie Mae can be found on the Internet at http://www.fanniemae.com .

Style Usage: Fannie Mae's board of directors has authorized the company to operate as "Fannie Mae," and the company's stock is now listed on the NYSE as "Fannie Mae." In order to facilitate clarity and avoid confusion news, organizations are asked to refer to the company exclusively as "Fannie Mae."

CONTACT: Fannie Mae

Bonnie O'Dell, 202/752-4844

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