Fannie Mae Announces Deed for Lease(TM) Program

WASHINGTON, Nov. 5 /PRNewswire-FirstCall/ -- Fannie Mae (NYSE: FNM) is
implementing the Deed for Lease(TM) Program under which qualifying homeowners
facing foreclosure will be able to remain in their homes by signing a lease in
connection with the voluntary transfer of the property deed back to the
lender.

"The Deed for Lease Program provides an additional option for qualifying
homeowners who are facing foreclosure and are not eligible for modifications,"
said Jay Ryan, Vice President of Fannie Mae. "This new program helps eliminate
some of the uncertainty of foreclosure, keeps families and tenants in their
homes during a transitional period, and helps to stabilize neighborhoods and
communities."

The new program is designed for borrowers who do not qualify for or have not
been able to sustain other loan-workout solutions, such as a modification.
Under Deed for Lease, borrowers transfer their property to the lender by
completing a deed in lieu of foreclosure, and then lease back the house at a
market rate.

To participate in the program, borrowers must live in the home as their
primary residence and must be released from any subordinate liens on the
property. Tenants of borrowers in this circumstance may also be eligible for
leases under the program. Borrowers or tenants interested in a lease must be
able to document that the new market rental rate is no more than 31% of their
gross income.

Leases under the new program may be up to 12 months, with the possibility of
term renewal or month-to-month extensions after that period. A Deed for Lease
property that is subsequently sold includes an assignment of the lease to the
buyer.

For additional information about the Deed for Lease Program, including full
details on program eligibility, please review the Guide Announcement on
www.efanniemae.com.

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.

SOURCE Fannie Mae

Amy Bonitatibus of Fannie Mae, +1-202-752-4144, or Resource Center,
+1-800-732-6643