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FANNIE MAE'S JOHNSON SAYS CORPORATION READY TO MEET HOUSING GOALS IN LEGISLATION

 SAN DIEGO, March 31 /PRNewswire/ -- The Federal National Mortgage Association (Fannie Mae) (NYSE: FNM) is ready to meet its new affordable housing goals for serving low- and moderate-income families that Congress set in legislation last year, according to James A. Johnson, the company's chairman and chief executive officer.
 "Since the late 1980s, Fannie Mae has built new systems, hired hundreds of new people, introduced new programs, tested flexible underwriting guidelines, created a network of new partnerships around the country, and accumulated a record of housing achievements," Johnson said. "Doing all this in advance of the legislation has prepared us for the even greater housing challenges that lie ahead."
 The new affordable housing goals set by Congress require 30 percent of the single and multifamily units Fannie Mae and Freddie Mac (Federal Home Loan Mortgage Corporation) finance annually must be for families with incomes at or below the median in their area, and 30 percent must be initially in central cities. The units counted under both goals may overlap. A third goal requires that $2 billion of Fannie Mae's business in 1993 and 1994 serve very low and low- income families.
 Johnson said Fannie Mae is poised to meet the new goals because of the steps taken over the past few years.
 "Soon, the legislation will hold us fully accountable to aggressive housing goals," he said. "We are prepared to move forward and serve the people Congress intends us to serve, because we have carefully laid a foundation built on a commitment to expand Fannie Mae's impact on housing."
 Johnson cited the low- and moderate-income housing initiatives undertaken first, in 1987, by David O. Maxwell, former Fannie Mae chairman and chief executive officer .
 He also pointed out the acceleration of the company's housing efforts through the creation of Fannie Mae's National Housing Impact Division in 1991 and its $10 billion "Opening Doors" affordable housing program to serve low-income families and those with special housing needs.
 "The $10 billion goal will be achieved by the middle of 1993, a year and a half ahead of schedule, and will help put a total of 180,000 families into affordable housing," Johnson said. Last year alone, he said, the initiative helped finance housing for more than 90,000 families.
 Speaking today at the annual secondary mortgage market conference of the Mortgage Bankers Association of America, Johnson said that early achievement of the $10 billion goal, combined with the past several years of testing and expansion, has established a "framework for the future."
 In 1992, Fannie Mae served record numbers of low- and moderate- income families through its business. The company served an estimated 674,000 families in one-to-four unit homes that have incomes at or below their area's median, in comparison with 220,000 such households during 1991 -- a 206 percent increase.
 Of the families served in 1992, approximately 611,300 lived in central cities in one-to-four unit homes, compared with 308,000 families in 1991. Ninety-six percent of the 147,000 multi-family units Fannie Mae financed in 1992 serve low- and moderate-income families. Many of these units are in central cities.
 Johnson said the expansion of Fannie Mae's affordable housing efforts has been made possible because "working with our partners, we have experimented with and developed many innovative products and services to help private, profit-making institutions participate in this business of making housing more affordable for lower income Americans and others not well served by the housing finance system.
 "We now have the experience and expertise to help our partners and Fannie Mae reach millions of lower income families as part of our every day business," he said. "We will use that experience and expertise effectively in the years ahead."
 Fannie Mae, the USA's Housing Partner, is a congressionally- chartered, shareholder-owned company and the nation's largest investor in home mortgages.
 -0- 3/31/93
 /CONTACT: David Jeffers of Fannie Mae, 202-752-5962/
 (FNM)


CO: Federal National Mortgage Association ST: District of Columbia IN: FIN SU: LEG

IH-MH -- DC018 -- 1569 03/31/93 14:16 EST
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Date:Mar 31, 1993
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