Fannie Mae Completes its Review of Certain MBS Pools and Fannie Mae Mega Pools

Janis Smith

202-752-6673

WASHINGTON, DC -- Fannie Mae (FNM/NYSE) today announced it has completed its review of certain MBS and Fannie Mae Mega® pools with subtype discrepancies.

Following up on our January 4, 2006 announcement entitled "Fannie Mae Corrects Subtypes of Certain MBS Pools," the company corrected 392 MBS pool subtypes and will correct another 307 subtypes in this month's reporting cycle. Fannie Mae is in the process of correcting an additional 22 MBS pools that will be reflected in April's reporting cycle. All of these MBS pools with subtype corrections are or will be eligible for re-securitization into Mega or REMIC pools. For a list of MBS pools that have or will be corrected, see Attachment A: List of MBS Pools with Subtype Corrections.

Mega pools comprised of MBS or other Mega pools that have subtype discrepancies, will continue to be ineligible for delivery into a new Fannie Mega pool or REMIC until further notice. For a list of these Mega pools and percentages of the affected remaining unpaid principal balance, see Attachment B: List of Mega Pools Ineligible for Mega and REMIC Re-Securitization. Updates to this list will be posted to Fannie Mae's Web site at https://www.fanniemae.com/mbs.

If you are an investor in any of the Fannie Mae securities on the lists and you have further questions, please contact Fannie Mae's Fixed-Income Investor Marketing at 1-800-237-8627.