Fannie Mae Fulfills Commitment to Provide Additional Information on Existing Mortgage-Backed Securities.

Business Editors

WASHINGTON--(BUSINESS WIRE)--June 12, 2003

Fannie Mae (NYSE:FNM
FNM Free National Movement (Bahamas)
FNM Foot and Mouth ), the nation's largest source of financing for home mortgages, today fulfilled its commitment to provide more detailed disclosures on outstanding Single-Family Fannie Mae mortgage-backed securities (MBS). The company began providing the same information for new MBS in April 2003.

"Fannie Mae is committed to being responsive to the desire of MBS investors and others for certain additional information that might be useful in evaluating their investments," said Fannie Mae Chairman and CEO Franklin D. Raines. "To that end, we are enhancing our disclosures to continue providing the market a great degree of transparency while protecting the liquidity and market efficiency that participants have come to value."

Later today, for all outstanding Single Family MBS pools that were issued on or after May 1, 1996 (which represent over 90 percent of the company's outstanding MBS securities balances) Fannie Mae is disclosing six additional pool level data elements for the mortgages backing its MBS. The data will be posted online in Fannie Mae's ePoolTalk(R) and in the Pool Data Direct(TM) file. The data elements for these existing pools - and for newly issued pools - will be updated and released in ePoolTalk and in the Pool Data Direct file on an ongoing basis each month. Following is a list of each of the six new data elements and a brief description of the information that will be provided for each. These items and a description of the methodologies used to calculate each of these data elements can be found in the MBS section of our corporate Web site.

-- Loan-to-value ratio - Fannie Mae will provide the relationship

between the mortgage's unpaid principal balance (UPB) at the

time of delivery to Fannie Mae and a measure of the property's

value, expressed as a percentage. This data element will be

disclosed as a weighted average and as a quartile distribution

including a maximum and minimum value.

-- Credit scores of borrowers - Fannie Mae will include

credit-scoring data (numerical values that evaluate the

quality of a borrower's credit at a given point in time). This

element will be disclosed as a weighted average for the pool

and as a quartile distribution including a maximum and minimum

value. Loans for which credit scores were not delivered by

lenders will be excluded from both the weighted average and

quartile calculation and will be reported under a separate

category titled "% UPB Without Credit Score."

-- Loan purpose - Fannie Mae will disclose whether the loan was

used to "purchase" the home or "refinance" an already

purchased home. This element will be in a tabular format that

discloses the number of loans in each category, the percentage

(by current UPB) each category comprises of the total pool,

and the current aggregate UPB for each category.

-- Occupancy type - Fannie Mae will disclose how the borrower

intends to use the property. The disclosure will identify

whether the home is a principal residence, an investment

property or a second home. This element will be in a tabular

format that discloses the number of loans in each category,

the percentage (by current UPB) each category comprises of the

total pool, and the current aggregate UPB for each category.

-- Property type - Fannie Mae will describe the type of property

by identifying the number of separate dwellings that comprise

the single-family property. The disclosure will identify

whether the property is a "one unit" property or a "two-four

unit" property. This element will be in a tabular format that

discloses the number of loans in each category, the percentage

(by current UPB) each category comprises of the total pool,

and the current aggregate UPB for each category.

-- Servicer - Fannie Mae will identify the entity that currently

services the mortgages in the pool. The company currently

identifies the seller of the loans, and will continue to

identify the seller in addition to the current servicer.

Fannie Mae also announced that it would provide the specific yield maintenance period end dates applicable to certain Multifamily Loans backing Multifamily MBS/DUS. Beginning this month, for new issuances of MBS/DUS with yield maintenance provisions, a specific yield maintenance period end date will be identified in the relevant prospectus supplement. For applicable Multifamily MBS/DUS issued prior to June 2003, specific yield maintenance period end dates will be posted on the company's Web site.

Fannie Mae is a New York Stock Exchange company and the largest non-bank financial services company in the world. It operates pursuant to a federal charter and is the nation's largest source of financing for home mortgages. Fannie Mae is working to shrink the nation's "homeownership gaps" through a $2 trillion "American Dream Commitment" to increase homeownership rates and serve 18 million targeted American families by the end of the decade. Since 1968, Fannie Mae has provided $4.5 trillion of mortgage financing for more than 49 million families. More information about Fannie Mae can be found on the Internet at http://www.fanniemae.com.

ePoolTalk is a registered mark and Pool Data Direct is a trademark of Fannie Mae. Unauthorized use of these marks is prohibited.

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 "FNM." In order to facilitate clarity and avoid confusion, news organizations are asked to refer to the company exclusively as "Fannie Mae."