Fannie Mae Introduces Multifamily MBS GeMS(TM)

Company Expands Structured DUS(R) Product Offerings in 2011

WASHINGTON, January 31, 2011 - Fannie Mae (OTC Bulletin Board: FNMA) today announced the introduction of
Fannie Mae Guaranteed Multifamily Structures, or Fannie Mae GeMS(TM), an
expanded multifamily mortgage-backed securities (MBS) execution that will
include DUS Megas, DUS REMICs and syndicated DUS Megas. Syndicated Mega deals
will be managed by broker-dealers and offered in issuance sizes similar to
DUS REMIC transactions. This expansion builds on Fannie Mae's successful DUS
REMIC issuances, providing additional Fannie Mae GeMS products with similar
features and liquidity. Fannie Mae's suite of multifamily MBS products helps
to provide a continuous source of stable funding to support the nation's
rental housing market.

"Fannie Mae is a leading provider of capital and liquidity for affordable
workforce rental housing, and our role is more important now than ever," said
Kenneth J. Bacon, Executive Vice President, Multifamily Mortgage Business.
"When many financial institutions pulled out of the multifamily financing
market during the financial crisis, we stayed and increased our participation
to help keep credit flowing."

"The introduction of Fannie Mae GeMS syndicated Mega offerings supports
our commitment to provide transparency, consistency and liquidity to
multifamily investors in the fixed-income markets," said Kimberly H. Johnson,
Vice President, Capital Markets.

Fannie Mae GeMS securities expand the MBS products already offered within
Fannie Mae's Multifamily DUS program. Fannie Mae revitalized its multifamily
MBS program in 2009, increasing issuance and using the company's portfolio to
enhance liquidity for multifamily MBS products.

In addition to $16.4 billion of DUS MBS, Fannie Mae also issued $4.8
billion of DUS structured securities in 2010. The structured products
offerings continue to expand under the Fannie Mae GeMS umbrella. There were
two Floater/Inverse Interest-Only REMIC structures issued in 2010, a first
for Fannie Mae multifamily collateral. Other new structures are expected to
join the roster of multifamily structured product offerings in 2011.

Syndicated DUS Megas and DUS REMIC structures are customized to meet
investor demand, creating opportunities for participation in larger,
regularly-issued deals while enjoying the benefits of block size and
collateral diversity. The Fannie Mae GeMS execution is designed to be more
nimble than conduit-style deals, and provide the flexibility to enable Fannie
Mae to quickly address reverse inquiries.

Fannie Mae GeMS executions will be managed by broker-dealers from a
syndicate group. DUS REMICs issued in 2009 and 2010 have been managed by
dealers from the following syndicate group: Amherst Securities Group, L.P.;
Bank of America Merrill Lynch; Citi; Credit Suisse; Deutsche Bank Securities;
Jefferies, and J.P. Morgan.

Fannie Mae's DUS program was initiated in 1988, allowing DUS lenders to
underwrite, close, service and sell multifamily mortgage loans to the
company. The issuance of DUS mortgage-backed securities (MBS) began in 1994.
As of September 30, 2010, the DUS market consisted of $44.6 billion in
outstanding DUS MBS. In 2010, DUS MBS production reached $16.4 billion, and
"Fannie Mae is committed to continue pursuing multifamily MBS production
opportunities going forward," added Bacon.

The majority of DUS MBS are backed by a single loan on a multifamily
property. Typical deal terms are:

    - $5-10 million loan size
    - 10-year balloon term with 9.5 years of call protection
    - 30-year amortization
    - 80% loan-to-value ratio
    - 1.25x debt service coverage ratio

DUS products provide investment opportunities in high credit quality,
prepayment-protected multifamily mortgage-backed securities that possess
attractive features.

Additional information is available on Fannie Mae's Basics of Multifamily
MBS web page, or by contacting Fannie Mae's Fixed-Income Securities Marketing
Help Line at 1-800-237-8627.

Certain statements in this release may be considered forward-looking
statements within the meaning of federal securities laws. In addition, not
all DUS MBS will have the characteristics discussed in this release. Before
investing in any Fannie Mae issued security, you should read the prospectus
and prospectus supplement pursuant to which such security is offered. You
should also read our most current Annual Report on Form 10-K and our reports
on Form 10-Q and Form 8-K filed with the US Securities and Exchange
Commission("SEC") available on the Investors page of our Web site at
www.fanniemae.com and on the SEC's Web site at www.sec.gov.

Fannie Mae exists to expand affordable housing and bring global capital
to local communities in order to serve the U.S. housing market. Fannie Mae
has a federal charter and operates in America's secondary mortgage market to
enhance the liquidity of the mortgage market by providing funds to mortgage
bankers and other lenders so that they may lend to home buyers. Our job is to
help those who house America.

Janis Smith, Fannie Mae, +1-202-752-2078