The record outlined above demonstrates true market leadership. We wanted to ensure that you had the ficts at your disposal. Our commitment to our mission is unmatched by that of any other financial institution. No one in the financial sector – including FHA – provides more capital to finance homes for minorities or low and moderate-income borrowers than Fannie Mae. Going forward, we want to work with you to shape legislation that ensures a strong workd-class regulator, but does not impede our ability to pursus our mission and continue to lead the market in the innovative provision of affordable credit to underserved communities.

Very truly yours,

FDR/md

ce: The Honorable Michael Oxley w/Enclosures The Honorable Barney Frank w/Enclosures

Enclosures

Fannie Mae and Primary Market Performance Low-Mod Lending

50%

40%

0%

1997

1998

1999

2000

2001

2002

Primary Market

Fannie Mae

Source: FMIS data for Fannie Mae and Home Mortgage Disclosure Act data for the conventional conforming primary market. Comperes single-family, owner-occupied, purchase money mortgages in Metropolitan Statistical Areas. Primary market excludes subprime lending. Manufactured housing lending Included in 2001 primary market.

6%

5%

0%