This Pricing Supplement relates to the Debt Securities described below (the "Notes"). You should read it together with the Offering Circular dated June 11, 2014 (the "Offering Circular"), relating to the Universal Debt Facility of the Federal National Mortgage Association ("Fannie Mae"). Unless defined below, capitalized terms have the meanings we gave to them in the Offering Circular.

The Notes, and interest thereon, are not guaranteed by the United States and do not constitute a debt or obligation of the United States or of any agency or instrumentality thereof other than Fannie Mae.

Certain Securities Terms

1.

Title:

Step Rate Notes Due January 21, 2025

2.

Form:

Fed Book-Entry Securities

3.

Specified Payment Currency

a.

Interest:

U.S. dollars

b.

Principal:

U.S. dollars

4.

Aggregate Original Principal Amount:

$15,000,000.00

5.

Issue Date:

January 21, 2015

6.

Maturity Date:

January 21, 2025

Amount Payable on the Maturity Date:

100.00% of principal amount

7.

Subject to Redemption Prior to Maturity Date

__

No

X

Yes; in whole or in part, at our option, on the following dates at a redemption price of 100% of the principal amount redeemed, plus accrued interest thereon to the date of redemption.

July 21, 2015 October 21, 2015 January 21, 2016 April 21, 2016 July 21, 2016 October 21, 2016 January 21, 2017 April 21, 2017 July 21, 2017 October 21, 2017 January 21, 2018 April 21, 2018 July 21, 2018 October 21, 2018 January 21, 2019 April 21, 2019 July 21, 2019 October 21, 2019 January 21, 2020

8.

Interest Category:

Step Rate Securities

9.

Interest

a.

Frequency of Interest Payments:

semiannually

b.

Interest Payment Dates:

the 21st day of each January and July

c.

First Interest Payment Date:

July 21, 2015

d

The interest rate on the outstanding principal amount will be as follows:

from and including

to but excluding

interest rate per annum

January 21, 2015

January 21, 2016

2.00%

January 21, 2016

January 21, 2017

2.25%

January 21, 2017

January 21, 2018

2.50%

January 21, 2018

January 21, 2019

2.75%

January 21, 2019

January 21, 2020

3.00%

January 21, 2020

January 21, 2025

4.00%

Additional Information Relating to the Notes

1.

Identification Number(s)

a.

CUSIP:

3136G2BZ9

b.

ISIN:

N/A

c.

Common Code:

N/A

2.

Listing Application

	X No
	__ Yes

3.

Eligibility for Stripping on the Issue Date

	X No
	__ Yes

___ Minimum Principal Amount: _____________

Offering

1.

Pricing Date:

December 23, 2014

2.

Method of Distribution:

X Principal

__ Non-underwritten

3.

Dealer:

Hapoalim Securities USA

4.

Offering Price:

X

Fixed Offering Price: 100.00% of principal amount, plus accrued interest, if any, from the Settlement Date

__

Variable Price Offering

5.

Dealer Purchase Price: 99.49% of principal amount

a.

Concession:

N/A

b.

Reallowance:

N/A

6.

Proceeds to Fannie Mae:

$14,923,500.00

Settlement

1.

Settlement Date:

January 21, 2015

2.

Settlement Basis:

delivery versus payment

3.

Settlement Clearing System:

U.S. Federal Reserve Banks