Fannie Mae considering preferred stock transaction; co provides investors Q2 capital levels submitted to OFHEO

Co announced the estimated June 30, 2007 capital levels it has submitted to the Office of Federal Housing Enterprise Oversight (OFHEO). The information is being provided in advance of OFHEO's classification because Fannie Mae is considering a preferred stock transaction this week. The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 requires the Director of OFHEO to determine the capital level and classification of Fannie Mae not less than quarterly, and to report the results to Congress. This determination is expected shortly. The information submitted to OFHEO indicates that Fannie Mae's June 30, 2007 core capital of $42.375 bln exceeded the OFHEO-directed minimum capital requirement of $39.416 bln by $2.959 bln, and exceeded the statutory minimum capital requirement of $30.320 bln by $12.055 bln.