$1,206,582,262. Guaranteed REMIC Pass-Through CertiÑcates Fannie Mae REMIC Trust

Transcription

1 Prospectus Supplement (To REMIC Prospectus dated May 1, 2002) $1,206,582,262 Guaranteed REMIC Pass-Through CertiÑcates Fannie Mae REMIC Trust The CertiÑcates Original Final We, the Federal National Mortgage Association Class Principal Interest Interest CUSIP Distribution (""Fannie Mae''), will issue the classes of certiñcates Class Group Balance Type Rate Type Number Date listed in the chart on this page. PF ÏÏÏÏÏÏÏÏÏ 1 $ 46,760,000 PAC/AD (1) FLT 31393UDD2 December 2033 Payments to CertiÑcateholders SG(2) ÏÏÏÏÏÏÏ 1 11,690,000 PAC/AD (1) INV 31393UDE0 December 2033 PJ(2)ÏÏÏÏÏÏÏÏ 1 11,690,000(3) NTL (1) INV/IO 31393UDF7 December 2033 We will make monthly payments on the certiñ- PZ ÏÏÏÏÏÏÏÏÏ 1 50,000 PAC 6.00% FIX/Z 31393UDG5 December 2033 cates. You, the investor, will receive YF ÏÏÏÏÏÏÏÏÏ 1 10,800,000 SUP (1) FLT 31393UDH3 December 2033 interest accrued on the balance of your certiñcate YS ÏÏÏÏÏÏÏÏÏ 1 2,700,000 SUP (1) INV 31393UDJ9 December 2033 (except in the case of the accrual classes), FA ÏÏÏÏÏÏÏÏÏ 2 50,000,000 PT (1) FLT 31393UDK6 December 2033 and SA ÏÏÏÏÏÏÏÏÏ 2 20,000,000 PT (1) INV 31393UDL4 December 2033 principal to the extent available for payment on QD ÏÏÏÏÏÏÏÏÏ 2 12,000,000 PT (1) INV 31393UDM2 December 2033 your class. UG ÏÏÏÏÏÏÏÏÏ 2 18,000,000 PT (1) INV 31393UDN0 December 2033 We may pay principal at rates that vary from time FC(2) ÏÏÏÏÏÏÏ 3 25,000,000 PT (1) FLT 31393UDP5 December 2033 to time. We may not pay principal to certain SB ÏÏÏÏÏÏÏÏÏ 3 25,000,000 PT (1) INV 31393UDQ3 December 2033 classes for long periods of time. UA(2) ÏÏÏÏÏÏÏ 3 25,000,000(3) NTL (1) INV/IO 31393UDR1 December 2033 The Fannie Mae Guaranty FH(2) ÏÏÏÏÏÏÏ 4 43,000,000 PT (1) FLT 31393UDS9 December 2033 GI(2) ÏÏÏÏÏÏÏ 4 4,777,778(3) NTL 4.50 FIX/IO 31393UDT7 December 2033 We will guarantee that required payments of prin- FE ÏÏÏÏÏÏÏÏÏ 4 25,000,000 SEQ (1) FLT 31393UDU4 June 2027 cipal and interest on the certiñcates are distributed FG ÏÏÏÏÏÏÏÏÏ 4 18,000,000 SEQ (1) FLT 31393UDV2 December 2033 to investors on time. SD ÏÏÏÏÏÏÏÏÏ 4 23,000,000 PT (1) INV 31393UDW0 December 2033 The Trust and its Assets UM ÏÏÏÏÏÏÏÏÏ 4 19,000,000 PT (1) INV 31393UDX8 December 2033 QK ÏÏÏÏÏÏÏÏÏ 4 24,000,000 PT (1) INV 31393UDY6 December 2033 The trust will own WA ÏÏÏÏÏÏÏÏÏ 4 20,000,000 PT (1) INV 31393UDZ3 December 2033 Fannie Mae MBS and UX ÏÏÏÏÏÏÏÏÏ 5 3,150,000 SUP 4.00 FIX 31393UEA7 December 2033 underlying REMIC and RCR certiñcates ZP ÏÏÏÏÏÏÏÏÏ 5 110,000 PAC 4.00 FIX/Z 31393UEB5 December 2033 backed by Fannie Mae MBS. PU(2) ÏÏÏÏÏÏÏ 5 26,740,000 PAC/AD 4.00 FIX 31393UEC3 November 2033 The mortgage loans underlying the Fannie Mae IO ÏÏÏÏÏÏÏÏÏ 5 11,538,461(3) NTL 6.50 FIX/IO 31393UED1 December 2033 MBS are Ñrst lien, single-family, Ñxed-rate loans. MF ÏÏÏÏÏÏÏÏÏ 6 75,160,000 PAC/AD (1) FLT 31393UEE9 November 2033 MQ(2) ÏÏÏÏÏÏ 6 18,790,000 PAC/AD (1) INV 31393UEF6 November 2033 MI(2) ÏÏÏÏÏÏÏ 6 18,790,000(3) NTL (1) INV/IO 31393UEG4 November 2033 Carefully consider the risk factors starting on MZ ÏÏÏÏÏÏÏÏÏ 6 150,000 PAC 6.00 FIX/Z 31393UEH2 December 2033 page S-10 of this prospectus supplement and GZ ÏÏÏÏÏÏÏÏÏ 6 11,650,000 SUP 6.00 FIX/Z 31393UEJ8 December 2033 on page 10 of the REMIC prospectus. Unless FK ÏÏÏÏÏÏÏÏÏ 7 97,516,131 SC/PT (1) FLT 31393UEK5 May 2018 you understand and are able to tolerate these SK ÏÏÏÏÏÏÏÏÏ 7 28,000,000 SC/PT (1) INV 31393UEL3 May 2018 risks, you should not invest in the certiñcates. WN ÏÏÏÏÏÏÏÏÏ 7 22,000,000 SC/PT (1) INV 31393UEM1 May 2018 You should read the REMIC prospectus as QL ÏÏÏÏÏÏÏÏÏ 7 26,000,000 SC/PT (1) INV 31393UEN9 May 2018 well as this prospectus supplement. UC ÏÏÏÏÏÏÏÏÏ 7 21,516,131 SC/PT (1) INV 31393UEP4 May 2018 The certiñcates, together with interest thereon, MA(2) ÏÏÏÏÏÏ 8 78,412,500 PAC/AD 3.50 FIX 31393UEQ2 April 2033 are not guaranteed by the United States and do FM(2)ÏÏÏÏÏÏÏ 8 130,687,500 PAC/AD (1) FLT 31393UER0 April 2033 not constitute a debt or obligation of the QM(2) ÏÏÏÏÏÏ 8 130,687,500(3) NTL (1) INV/IO 31393UES8 April 2033 United States or any agency or instrumentality ZM ÏÏÏÏÏÏÏÏÏ 8 2,200,000 PAC 6.00 FIX/Z 31393UET6 December 2033 thereof other than Fannie Mae. KZ ÏÏÏÏÏÏÏÏÏ 8 50,000,000 SUP 6.00 FIX/Z 31393UEU3 December 2033 The certiñcates are exempt from registration XA ÏÏÏÏÏÏÏÏÏ 9 11,000,000 PAC 4.00 FIX 31393UEV1 August 2007 under the Securities Act of 1933 and are XB ÏÏÏÏÏÏÏÏÏ 9 42,600,000 PAC 4.00 FIX 31393UEW9 September 2014 ""exempted securities'' under the Securities XC(2) ÏÏÏÏÏÏÏ 9 51,800,000 PAC 5.00 FIX 31393UEX7 February 2020 Exchange Act of XD ÏÏÏÏÏÏÏÏÏ 9 22,400,000 PAC 5.00 FIX 31393UEY5 December 2021 XI ÏÏÏÏÏÏÏÏÏ 9 10,720,000(3) NTL 5.00 FIX/IO 31393UEZ2 September 2014 If you own certiñcates of certain classes, you can KJ ÏÏÏÏÏÏÏÏÏ 9 50,000,000 NSJ/SCH 4.25 FIX 31393UFA6 May 2022 exchange them for the corresponding RCR certiñ- XZ ÏÏÏÏÏÏÏÏÏ 9 12,700,000 NSJ/SUP 5.00 FIX/Z 31393UFB4 July 2022 cates to be issued at the time of the exchange. The JI ÏÏÏÏÏÏÏÏÏ 9 7,500,000(3) NTL 5.00 FIX/IO 31393UFC2 May 2022 PS, FB, FD, PQ, PT, PX, PY, PV, PW, IP, MS, CX(2) ÏÏÏÏÏÏÏ 9 30,000,000 SEQ (4) PO 31393UFD0 December 2023 MC, ME, MG, MH, MD, MJ, MK, ML, CT, XK CI(2)ÏÏÏÏÏÏÏÏ 9 30,000,000(3) NTL 5.00 FIX/IO 31393UFE8 December 2023 and IK Classes are the RCR classes, as further R ÏÏÏÏÏÏÏÏÏ 0 NPR 0 NPR 31393UFF5 December 2033 described in this prospectus supplement. RL ÏÏÏÏÏÏÏÏÏ 0 NPR 0 NPR 31393UFG3 December 2033 The dealer will oåer the certiñcates from time to time in negotiated transactions at varying prices. We expect the settlement date to be November 28, (1) Based on LIBOR. (3) Notional balances. These classes are interest only classes. (2) Exchangeable classes. (4) Principal only class. Citigroup The date of this Prospectus Supplement is October 16, 2003.

2 TABLE OF CONTENTS Page AVAILABLE INFORMATION ÏÏÏÏÏÏÏÏÏÏ S- 3 Group 6 Cash Flow Distribution REFERENCE SHEETÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S- 4 Amount and GZ Accrual Amount ÏÏÏ S-23 ADDITIONAL RISK FACTORSÏÏÏÏÏÏÏÏÏ S-10 Group 7 Principal Distribution Amount ÏÏÏ S-23 DESCRIPTION OF THE Group 8 Principal Distribution Amount ÏÏÏ S-23 CERTIFICATES ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-11 ZM Accrual Amount ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-23 GENERALÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-11 Group 8 Cash Flow Distribution StructureÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-11 Amount and KZ Accrual Amount ÏÏÏ S-24 Fannie Mae Guaranty ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-12 Group 9 Principal Distribution Amount ÏÏ S-24 Characteristics of CertiÑcatesÏÏÏÏÏÏÏÏÏÏÏ S-12 Group 9 Cash Flow Distribution Authorized Denominations ÏÏÏÏÏÏÏÏÏÏÏÏÏ S-13 Amount ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-24 Distribution Dates ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-13 XZ Accrual Amount and Remaining Group 9 Cash Flow Distribution Record Date ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-13 Amount ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-24 Class Factors ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-13 STRUCTURING ASSUMPTIONS ÏÏÏÏÏÏÏÏÏÏÏÏÏ S-25 No Optional Termination ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-13 Pricing Assumptions ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-25 Voting the Group 7 Underlying REMIC Prepayment Assumptions ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-25 CertiÑcates ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-13 Structuring Ranges and Rates ÏÏÏÏÏÏÏÏÏÏ S-25 COMBINATION AND RECOMBINATIONÏÏÏÏÏÏÏ S-13 Initial EÅective Ranges ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-26 General ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-13 YIELD TABLES ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-27 Procedures ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-14 General ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-27 Additional Considerations ÏÏÏÏÏÏÏÏÏÏÏÏÏ S-14 The Fixed Rate Interest Only Classes ÏÏÏ S-27 THE TRUST MBS ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-14 The Inverse Floating Rate Classes ÏÏÏÏÏÏ S-29 THE GROUP 7 UNDERLYING REMIC The Principal Only Class ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-35 CERTIFICATES ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-16 WEIGHTED AVERAGE LIVES OF THE FINAL DATA STATEMENT ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-16 CERTIFICATES ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-35 DISTRIBUTIONS OF INTEREST ÏÏÏÏÏÏÏÏÏÏÏÏÏ S-17 DECREMENT TABLES ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-37 Categories of Classes ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-17 CHARACTERISTICS OF THE R AND General ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-18 RL CLASSES ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-43 Interest Accrual Periods ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-18 CERTAIN ADDITIONAL FEDERAL Accrual Classes ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-18 INCOME TAX CONSEQUENCES ÏÏÏÏÏ S-44 Notional Classes ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-18 REMIC ELECTIONS AND SPECIAL TAX Floating Rate and Inverse Floating Rate ATTRIBUTES ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-44 ClassesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-19 TAXATION OF BENEFICIAL OWNERS OF CALCULATION OF LIBOR ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-19 REGULAR CERTIFICATES ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-44 DISTRIBUTIONS OF PRINCIPAL ÏÏÏÏÏÏÏÏÏÏÏÏ S-19 TAXATION OF BENEFICIAL OWNERS OF Categories of Classes ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-19 RESIDUAL CERTIFICATES ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-45 Principal Distribution Amount ÏÏÏÏÏÏÏÏÏ S-20 TAXATION OF BENEFICIAL OWNERS OF Group 1 Principal Distribution Amount ÏÏ S-21 RCR CERTIFICATES ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-45 PZ Accrual Amount ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-21 General ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-45 Group 1 Cash Flow Distribution Strip RCR Classes ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-46 Amount ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-21 Combination RCR ClassesÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-47 Group 2 Principal Distribution Amount ÏÏ S-21 ExchangesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-47 Group 3 Principal Distribution Amount ÏÏ S-21 TAX RETURN DISCLOSURE REQUIREMENTS ÏÏ S-47 Group 4 Principal Distribution Amount ÏÏ S-22 PLAN OF DISTRIBUTION ÏÏÏÏÏÏÏÏÏÏÏÏÏ S-48 Group 5 Principal Distribution Amount ÏÏ S-22 General ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-48 ZP Accrual Amount ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-22 Increase in CertiÑcates ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-48 Group 5 Cash Flow Distribution LEGAL MATTERS ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-48 Amount ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-22 EXHIBIT A ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ A- 1 Group 6 Principal Distribution Amount ÏÏ S-23 SCHEDULE 1 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ A- 2 MZ Accrual Amount ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-23 PRINCIPAL BALANCE SCHEDULES ÏÏ B- 1 Page S-2

3 AVAILABLE INFORMATION You should purchase the certiñcates only if you have read and understood this prospectus supplement and the following documents (the ""Disclosure Documents''): our Prospectus for Fannie Mae Guaranteed REMIC Pass-Through CertiÑcates dated May 1, 2002 (the ""REMIC Prospectus''); our Prospectus for Fannie Mae Guaranteed Mortgage Pass-Through CertiÑcates (Single- Family Residential Mortgage Loans) dated April 1, 2003 (the ""MBS Prospectus''); if you are purchasing any Group 7 Class or the R or RL Class, the disclosure documents relating to the Group 7 Underlying REMIC CertiÑcates (the ""Underlying REMIC Disclosure Documents''); and any Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K that we Ñle with the SEC during the period speciñed in the Ñnal paragraph of this page. You can obtain copies of the Disclosure Documents by writing or calling us at: Fannie Mae MBS Helpline 3900 Wisconsin Avenue, N.W., Area 2H-3S Washington, D.C (telephone ). In addition, the Disclosure Documents, together with the class factors, are available on our corporate Web site at You also can obtain copies of the Disclosure Documents, except the Underlying REMIC Disclosure Documents, by writing or calling the dealer at: Citigroup Global Markets Inc. Prospectus Department Brooklyn Army Terminal th Street, Suite 8-G Brooklyn, New York (telephone ). In the Ñrst quarter of 2003, we began Ñling periodic reports with the SEC under the Securities Exchange Act of These Ñlings will include the Form 10-Ks, Form 10-Qs and Form 8-Ks. Our SEC Ñlings are available at the SEC's Web site at You may also read and copy any document we Ñle with the SEC by visiting the SEC's Public Reference Room at 450 Fifth Street, NW, Washington, D.C Please call the SEC at SEC-0330 for further information about the operation of the Public Reference Room. We are providing the address of the SEC's Web site solely for the information of prospective investors. We do not intend the Internet address to be an active link. Information contained in any Form 10-K, Form 10-Q and Form 8-K that we Ñle with the SEC prior to the termination of the oåering of the certiñcates is hereby incorporated by reference in this prospectus supplement. In cases where we ""furnish'' information to the SEC on Form 8-K, as provided under the Securities Exchange Act of 1934, that information is not incorporated by reference in this prospectus supplement. S-3

4 REFERENCE SHEET This reference sheet is not a summary of the transaction and does not contain complete information about the certiñcates. You should purchase the certiñcates only after reading this prospectus supplement and each of the additional disclosure documents listed on page S-3. Assets Underlying Each Group of Classes Group Assets 1 Group 1 MBS 2 Group 2 MBS 3 Group 3 MBS 4 Group 4 MBS 5 Group 5 MBS 6 Group 6 MBS 7 Class TE REMIC CertiÑcate Class PE REMIC CertiÑcate Class LE REMIC CertiÑcate Class OG REMIC CertiÑcate Class YE RCR CertiÑcate Class ME RCR CertiÑcate 8 Group 8 MBS 9 Group 9 MBS Assumed Characteristics of the Mortgage Loans Underlying the Trust MBS (as of November 1, 2003) Approximate Approximate Original Weighted Average Weighted Approximate Approximate Term to Remaining Term Average Weighted Principal Maturity to Maturity Loan Age Average Balance (in months) (in months) (in months) Coupon Group 1 MBS $ 72,000, % Group 2 MBS $100,000, % Group 3 MBS $ 50,000, % Group 4 MBS $172,000, % Group 5 MBS $ 30,000, % Group 6 MBS $105,750, % Group 8 MBS $261,300, % Group 9 MBS $220,500, % The actual remaining terms to maturity, weighted average loan ages and interest rates of most of the mortgage loans will diåer from the weighted averages shown above, perhaps signiñcantly. Characteristics of the Group 7 Underlying REMIC CertiÑcates Exhibit A describes the Group 7 Underlying REMIC CertiÑcates, including certain information about the related mortgage loans. To learn more about the Group 7 Underlying REMIC CertiÑcates, you should obtain from us the current class factors and the related disclosure documents as described on page S-3. Class Factors The class factors are numbers that, when multiplied by the initial principal balance of a certiñcate, can be used to calculate the current principal balance of that certiñcate (after taking into S-4

5 account principal payments in the same month). We publish the class factors on or shortly after the 11th day of each month. Settlement Date We expect to issue the certiñcates on November 28, Distribution Dates We will make payments on the certiñcates on the 25th day of each calendar month, or on the next business day if the 25th day is not a business day. Book-Entry and Physical CertiÑcates We will issue the book-entry certiñcates through the U.S. Federal Reserve Banks, which will electronically track ownership of the certiñcates and payments on them. We will issue physical certiñcates in registered, certiñcated form. We will issue the classes of certiñcates in the following forms: Fed Book-Entry All classes of certiñcates other than the R and RL Classes Physical R and RL Classes Exchanging CertiÑcates Through Combination and Recombination If you own certain certiñcates, you will be able to exchange them for a proportionate interest in the related RCR certiñcates as shown on Schedule 1. We will issue the RCR certiñcates upon such exchange. You can exchange your certiñcates by notifying us and paying an exchange fee. We use the principal and interest of the certiñcates exchanged to pay principal and interest on the related RCR certiñcates. Schedule 1 lists the available combinations of the certiñcates eligible for exchange and the related RCR certiñcates. Interest Rates During each interest accrual period, the Ñxed rate classes will bear interest at the applicable annual interest rates listed on the cover of this prospectus supplement or on Schedule 1. During the initial interest accrual period, the Öoating rate and inverse Öoating rate classes will bear interest at the initial interest rates listed below. During subsequent interest accrual periods, the Öoating rate and inverse Öoating rate classes will bear interest based on the formulas indicated below, but always subject to the speciñed maximum and minimum interest rates: Initial Maximum Minimum Formula for Interest Interest Interest Calculation of Class Rate Rate Rate Interest Rate(1) PF ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1.55% 7.50% 0.45% LIBOR 45 basis points SG ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 17.85% 21.15% 0.00% 21.15% (3 LIBOR) PJ ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5.95% 7.05% 0.00% 7.05% LIBOR YF ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2.60% 7.50% 1.50% LIBOR 150 basis points YS ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 19.60% 24.00% 0.00% 24% (4 LIBOR) FA ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1.55% 8.50% 0.45% LIBOR 45 basis points SA ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 8.45% 9.55% 1.50% 9.55% LIBOR QD ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 8.45% 9.55% 1.50% 9.55% LIBOR UG ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 8.45% 9.55% 1.50% 9.55% LIBOR FC ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1.63% 8.00% 0.53% LIBOR 53 basis points S-5

6 Initial Maximum Minimum Formula for Interest Interest Interest Calculation of Class Rate Rate Rate Interest Rate(1) SB ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 9.35% 10.45% 3.00% 10.45% LIBOR UA ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.02% 0.02% 0.00% 7.47% LIBOR FH ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1.60% 8.50% 0.50% LIBOR 50 basis points FE ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2.10% 9.00% 1.00% LIBOR 100 basis points FG ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2.10% 9.00% 1.00% LIBOR 100 basis points SD ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6.90% 8.00% 0.00% 8% LIBOR UM ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6.90% 8.00% 0.00% 8% LIBOR QK ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6.90% 8.00% 0.00% 8% LIBOR WA ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6.90% 8.00% 0.00% 8% LIBOR MF ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1.50% 7.50% 0.40% LIBOR 40 basis points MQ ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 18.00% 21.30% 0.00% 21.3% (3 LIBOR) MI ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6.00% 7.10% 0.00% 7.1% LIBOR FK ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1.62% 8.50% 0.50% LIBOR 50 basis points SK ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 8.38% 9.50% 1.50% 9.5% LIBOR WN ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 8.38% 9.50% 1.50% 9.5% LIBOR QL ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 8.38% 9.50% 1.50% 9.5% LIBOR UC ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 8.38% 9.50% 1.50% 9.5% LIBOR FM ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1.50% 7.50% 0.40% LIBOR 40 basis points QM ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6.00% 7.10% 0.00% 7.1%-LIBOR PS ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 23.80% 28.20% 0.00% 28.2% (4 LIBOR) FB ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1.65% 8.00% 0.55% LIBOR 55 basis points FD ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2.10% 9.00% 1.00% LIBOR 100 basis points MS ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 24.00% 28.40% 0.00% 28.4% (4 LIBOR) (1) We will establish LIBOR on the basis of the ""BBA Method.'' We will apply interest payments from exchanged REMIC certiñcates to the corresponding RCR certiñcates, on a pro rata basis, following any exchange. Notional Classes A notional class will not receive any principal. Its notional principal balance is the balance used to calculate accrued interest. The notional principal balances will equal the percentages of the outstanding balances speciñed below immediately before the related distribution date: Class PJ ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 100% of the SG Class UA ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 100% of the FC Class GI ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ % of the FH Class IO ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ % of the UX, ZP and PU Classes IP ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ % of the PU Class MI ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 100% of the MQ Class QM ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 100% of the FM Class XI ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 20% of the XA and XB Classes JI ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 15% of the KJ Class CI ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 100% of the CX Class IK ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 10% of the XC Class S-6

7 Distributions of Principal Group 1 Principal Distribution Amount PZ Accrual Amount To the PF and SG Classes, pro rata, to zero, and thereafter to the PZ Class. Group 1 Cash Flow Distribution Amount 1. To Aggregate Group I to its Planned Balance. 2. To the YF and YS Classes, pro rata, to zero. 3. To Aggregate Group I to zero. For a description of Aggregate Group I, see ""Description of the CertiÑcatesÌDistributions of PrincipalÌGroup 1 Principal Distribution Amount'' in this prospectus supplement. Group 2 Principal Distribution Amount To the FA, QD, SA and UG Classes, pro rata, to zero. Group 3 Principal Distribution Amount To the FC and SB Classes, pro rata, to zero. Group 4 Principal Distribution Amount (a) 25% to the FH Class to zero, (b) 25% to the FE and FG Classes, in that order, to zero, (c) % to the SD Class to zero, (d) % to the UM Class to zero, (e) % to the QK Class to zero, and (f) % to the WA Class to zero. Group 5 Principal Distribution Amount ZP Accrual Amount To the PU Class to zero, and thereafter to the ZP Class. Group 5 Cash Flow Distribution Amount 1. To Aggregate Group II to its Planned Balance. 2. To the UX Class to zero. 3. To Aggregate Group II to zero. For a description of Aggregate Group II, see ""Description of the CertiÑcatesÌDistributions of PrincipalÌGroup 5 Principal Distribution Amount'' in this prospectus supplement. Group 6 Principal Distribution Amount MZ Accrual Amount To the MF and MQ Classes, pro rata, to zero, and thereafter to the MZ Class. S-7

8 Group 6 Cash Flow Distribution Amount and GZ Accrual Amount 1. To Aggregate Group III to its Planned Balance. 2. To the GZ Class to zero. 3. To Aggregate Group III to zero. For a description of Aggregate Group III, see ""Description of the CertiÑcatesÌDistributions of PrincipalÌGroup 6 Principal Distribution Amount'' in this prospectus supplement. Group 7 Principal Distribution Amount To the FK, SK, WN, QL and UC Classes, pro rata, to zero. Group 8 Principal Distribution Amount ZM Accrual Amount To the MA and FM Classes, pro rata, to zero, and thereafter to the ZM Class. Group 8 Cash Flow Distribution Amount and KZ Accrual Amount 1. To Aggregate Group IV to its Planned Balance. 2. To the KZ Class to zero. 3. To Aggregate Group IV to zero. For a description of Aggregate Group IV, see ""Description of the CertiÑcatesÌDistributions of PrincipalÌGroup 8 Principal Distribution Amount'' in this prospectus supplement. Group 9 Principal Distribution Amount Group 9 Cash Flow Distribution Amount To Aggregate Group V to its Planned Balance. XZ Accrual Amount and Remaining Group 9 Cash Flow Distribution Amount 1. If and only if the principal balance of the Group 9 MBS is less than the Group 9 First SpeciÑed Balance, the XZ Class SpeciÑed Amount to the XZ Class to zero. 2. To the KJ Class to its Scheduled Balance. 3. To the XZ Class to zero. 4. To the KJ Class to zero. 5. To Aggregate Group V to zero. 6. To the CX Class to zero. For a description of Aggregate Group V and the XZ Class SpeciÑed Amount, see ""Description of the CertiÑcatesÌDistributions of PrincipalÌGroup 9 Principal Distribution Amount'' in this prospectus supplement. We will apply principal payments from exchanged REMIC CertiÑcates to the corresponding RCR certiñcates, on a pro rata basis, following any exchange. S-8

9 Weighted Average Lives (years)* Group 1 Classes 0% 100% 275% 400% 450% 800% PF, SG, PJ and PS ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ PZ ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ YF and YSÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Group 2 Classes 0% 100% 200% 350% 500% FA, SA, QD and UG ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Group 3 Classes 0% 100% 250% 300% 500% 600% FC, SB, UA and FB ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Group 4 Classes 0% 100% 150% 300% 500% FH, GI, SD, UM, QK, WA and FD ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ FE ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ FG ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Group 5 Classes 0% 100% 170% 200% 230% 600% 1200% UX ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ ZP ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ PU, PQ, PT, PX, PY, PV, PW and IP ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ IO ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Group 6 Classes 0% 100% 300% 370% 400% 800% MF, MQ, MI and MS ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ MZÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ GZ ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Group 7 Classes 0% 100% 255% 350% 500% FK, SK, WN, QL and UC ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Group 8 Classes 0% 100% 240% 370% 400% 800% MA, FM, QM, MC, ME, MG, MH, MD, MJ, MK and ML ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ ZMÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ KZ ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Group 9 Classes 0% 100% 203% 220% 246% 250% 251% 325% 500% XA ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ XB ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ XC, XK and IKÏÏÏÏ XD ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ XI ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ KJ and JI ÏÏÏÏÏÏÏÏÏ XZ ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ CX, CI and CT ÏÏÏÏ * Determined as speciñed under ""Description of the CertiÑcatesÌWeighted Average Lives of the CertiÑcates'' in this prospectus supplement. S-9

10 ADDITIONAL RISK FACTORS any related Support classes remain out- standing, or The rate of principal payments on the certiñcates will be aåected by the rate of principal payments on the underlying mortgage loans. The rate at which you receive principal payments on the certiñcates will be sensitive to the rate of principal payments on the mortgage loans underlying the related MBS, including prepayments. Because borrowers generally may prepay their mortgage loans at any time without penalty, the rate of principal payments on the mortgage loans is likely to vary over time. It is highly unlikely that the mortgage loans will prepay at any constant prepayment rate until maturity. Payments on the Group 7 Classes also will be aåected by the payment priorities governing the Group 7 Underlying REMIC CertiÑcates. If you invest in any Group 7 Classes, the rate at which you receive payments also will be aåected by the priority sequences governing principal payments on the Group 7 Underlying REMIC CertiÑcates. Weighted average lives of the Non-Sticky Jump classes are especially sensitive to prepayments under certain scenarios. The weighted average lives of the Non-Sticky Jump classes are especially sensitive to the rate of principal pay- ments, including prepayments, of the related mortgage loans. This sensitivity to prepayments is not necessarily proportional to the changes in prepayment rates. In some scenarios, small changes in prepayment rates of the related mortgage loans may have a dramatic eåect on the weighted average lives of the Non-Sticky Jump classes. For an illustration of this sensitivity, see the related decrement tables for these classes in this prospectus supplement. In addition, principal payments on the Group 7 Underlying REMIC CertiÑcates are governed by principal balance schedules. As a result, the Group 7 Underlying REMIC CertiÑ- cates may receive principal payments at rates faster or slower than would otherwise have been the case. In some cases, they may receive no principal payments for extended periods. Pre- payments on the related mortgage loans may have occurred at a rate faster or slower than the rate initially assumed. This prospectus supple- ment contains no information as to whether the Group 7 Underlying REMIC CertiÑcates have adhered to their principal balance schedules, the Group 7 Underlying REMIC CertiÑcate otherwise have performed as origi- nally anticipated. You may obtain additional information about the Group 7 Underlying REMIC CertiÑ- cates by reviewing their current class factors in light of other information available in the re- lated disclosure documents. You may obtain that document from us as described on page S-3. at any of the prepayment rates we assumed in this prospectus supplement, or Yields may be lower than expected due to unexpected rate of principal payments. The ac- tual yield on your certiñcates probably will be lower than you expect: if you buy your certiñcates at a premium and principal payments are faster than you expect, or if you buy your certiñcates at a discount and principal payments are slower than you expect. Furthermore, in the case of interest only certiñcates and certiñcates purchased at a premium, you could lose money on your investment if prepayments occur at a rapid rate. As described in the related underlying disclosure documents, the Group 7 Underlying REMIC CertiÑcates may be later in payment priority than certain other classes issued from the related underlying REMIC trusts. As a re- sult, such other classes may receive principal before principal is paid on the Group 7 Underlying REMIC CertiÑcates, possibly for long periods. You must make your own decisions about the various applicable assumptions, including prepayment assumptions, when deciding whether to purchase the certiñcates. Weighted average lives and yields on the certiñcates are aåected by actual characteristics S-10

11 of the underlying mortgage loans. We have assumed that the mortgage loans underlying the Trust MBS have certain characteristics. However, the actual mortgage loans probably will have diåerent characteristics from those we assumed. As a result, your yields could be lower than you expect, even if the mortgage loans prepay at the indicated constant prepayment rates. In addition, slight diåerences between the assumed mortgage loan characteristics and the actual mortgage loans could aåect the weighted average lives of the classes of certiñcates. Level of Öoating rate index aåects yields on certain certiñcates. The yield on any Öoating rate or inverse Öoating rate certiñcate will be aåected by the level of its interest rate index. If the level of the index diåers from the level you expect, then your actual yield may be lower than you expect. Delay classes have lower yields and market values. Since certain classes do not receive interest immediately following each interest accrual period, these classes have lower yields and lower market values than they would if there were no such delay. Reinvestment of certiñcate payments may not achieve same yields as certiñcates. The rate of principal payments of the certiñcates is uncertain. You may be unable to reinvest the payments on the certiñcates at the same yields provided by the certiñcates. Unpredictable timing of last payment af- fects yields on certiñcates. The actual Ñnal payment of your class is likely to occur earlier, and could occur much earlier, than the Ñnal distribu- tion date listed on the cover page of this pro- spectus supplement. If you assume that the actual Ñnal payment will occur on the Ñnal distribution date speciñed, your yield could be lower than you expect. Some investors may be unable to buy cer- tain classes. Investors whose investment activi- ties are subject to legal investment laws and regulations, or to review by regulatory authorities, may be unable to buy certain certiñcates. You should obtain legal advice to determine whether you may purchase the certiñcates. Uncertain market for the certiñcates could make them diçcult to sell and cause their values to Öuctuate. We cannot be sure that a market for resale of the certiñcates will develop. Further, if a market develops, it may not continue or be suçciently liquid to allow you to sell your certif- icates. Even if you are able to sell your certiñ- cates, the sale price may not be comparable to similar investments that have a developed mar ket. Moreover, you may not be able to sell small or large amounts of certiñcates at prices compa- rable to those available to other investors. You should purchase certiñcates only if you under- stand and can tolerate the risk that the value of your certiñcates will vary over time and that your certiñcates may not be easily sold. DESCRIPTION OF THE CERTIFICATES The material under this heading summarizes certain features of the CertiÑcates. You will Ñnd additional information about the CertiÑcates in the other sections of this prospectus supplement, as well as in the additional Disclosure Documents and the Trust Agreement. If we use a capitalized term in this prospectus supplement without deñning it, you will Ñnd the deñnition of that term in the applicable Disclosure Document or in the Trust Agreement. General Structure. We will create the Fannie Mae REMIC Trust speciñed on the cover of this prospectus supplement (the ""Trust'') and a separate trust (the ""Lower Tier REMIC'') pursuant to a trust agreement dated as of November 1, 2003 (the ""Issue Date''). We will issue the Guaranteed REMIC Pass-Through CertiÑcates (the ""REMIC CertiÑcates'') pursuant to that trust agreement. We will issue the Combinable and Recombinable REMIC CertiÑcates (the ""RCR CertiÑcates'' and, together with the REMIC CertiÑcates, the ""CertiÑcates'') pursuant to a separate trust agreement dated as of the Issue Date (together with the trust agreement relating to the REMIC CertiÑcates, the ""Trust Agreement''). We will execute the Trust Agreement in our corporate capacity and as trustee S-11

12 (the ""Trustee''). In general, the term ""Classes'' includes the Classes of REMIC CertiÑcates and RCR CertiÑcates. The Trust and the Lower Tier REMIC each will constitute a ""real estate mortgage investment conduit'' (""REMIC'') under the Internal Revenue Code of 1986, as amended (the ""Code''). The REMIC CertiÑcates (except the R and RL Classes) will be ""regular interests'' in the Trust. The R Class will be the ""residual interest'' in the Trust. The interests in the Lower Tier REMIC other than the RL Class (the ""Lower Tier Regular Interests'') will be the ""regular interests'' in the Lower Tier REMIC. The RL Class will be the ""residual interest'' in the Lower Tier REMIC. The assets of the Trust will consist of the Lower Tier Regular Interests. The assets of the Lower Tier REMIC will consist of eight groups of Fannie Mae Guaranteed Mortgage Pass-Through CertiÑcates (the ""Group 1 MBS,'' ""Group 2 MBS,'' ""Group 3 MBS,'' ""Group 4 MBS,'' ""Group 5 MBS,'' ""Group 6 MBS,'' ""Group 8 MBS'' and ""Group 9 MBS'' and, together, the ""Trust MBS''), and certain previously issued REMIC and RCR certiñcates (the ""Group 7 Underlying REMIC CertiÑcates'') evidencing beneñcial ownership interests in the related Fannie Mae REMIC trusts (the ""Underlying REMIC Trusts'') as further described in Exhibit A. The assets of the Underlying REMIC Trusts evidence direct or indirect beneñcial ownership interests in certain Fannie Mae Guaranteed Mortgage Pass-Through CertiÑcates (together with the Trust MBS, the ""MBS''). Each MBS represents a beneñcial ownership interest in a pool of Ñrst lien, one- to four-family (""single-family''), Ñxed-rate residential mortgage loans (the ""Mortgage Loans'') having the characteristics described in this prospectus supplement. Fannie Mae Guaranty. We guarantee that we will distribute to CertiÑcateholders: required installments of principal and interest on the CertiÑcates on time, and the principal balance of each Class of CertiÑcates no later than its Final Distribution Date, whether or not we have received suçcient payments on the MBS. In addition, we guarantee that we will distribute to each holder of an MBS: scheduled installments of principal and interest on the underlying Mortgage Loans on time, whether or not the related borrowers pay us, and the full principal balance of any foreclosed Mortgage Loan, whether or not we recover it. Our guaranty obligations with respect to the Group 7 Underlying REMIC CertiÑcates are described in the Underlying REMIC Disclosure Documents. Our guarantees are not backed by the full faith and credit of the United States. See ""Description of the CertiÑcatesÌThe Fannie Mae Guaranty'' in the REMIC Prospectus, ""Description of the CertiÑcatesÌFannie Mae Guaranty'' in the MBS Prospectus and ""Description of the CertiÑcatesÌGeneralÌFannie Mae Guaranty'' in the Underlying REMIC Disclosure Documents. Characteristics of CertiÑcates. We will issue the CertiÑcates (except the R and RL Classes) in book-entry form on the book-entry system of the U.S. Federal Reserve Banks. Entities whose names appear on the book-entry records of a Federal Reserve Bank as having had CertiÑcates deposited in their accounts are ""Holders'' or ""CertiÑcateholders.'' A Holder is not necessarily the beneñcial owner of a CertiÑcate. BeneÑcial owners ordinarily will hold CertiÑcates through one or more Ñnancial S-12

13 intermediaries, such as banks, brokerage Ñrms and securities clearing organizations. See ""Description of CertiÑcatesÌDenominations and Form'' in the REMIC Prospectus. We will issue the R and RL CertiÑcates in fully registered, certiñcated form. The ""Holder'' or ""CertiÑcateholder'' of the R or RL CertiÑcate is its registered owner. The R or RL CertiÑcate can be transferred at the corporate trust oçce of the Transfer Agent, or at the oçce of the Transfer Agent in New York, New York. U.S. Bank National Association (""US Bank'') in Boston, Massachusetts will be the initial Transfer Agent. We may impose a service charge for any registration of transfer of the R or RL CertiÑcate and may require payment to cover any tax or other governmental charge. See also ""ÌCharacteristics of the R and RL Classes'' below. The Holder of the R Class will receive the proceeds of any remaining assets of the Trust, and the Holder of the RL Class will receive the proceeds of any remaining assets of the Lower Tier REMIC, in each case only by presenting and surrendering the related CertiÑcate at the oçce of the Paying Agent. US Bank will be the initial Paying Agent. Authorized Denominations. We will issue the CertiÑcates, other than the R and RL Classes, in minimum denominations of $1,000 and whole dollar increments. We will issue the R and RL Classes as single CertiÑcates with no principal balances. Distribution Dates. We will make monthly payments on the CertiÑcates on the 25th day of each month (or, if the 25th is not a business day, on the Ñrst business day after the 25th). We refer to each of these dates as a ""Distribution Date.'' We will make the Ñrst payments to CertiÑcateholders the month after we issue the CertiÑcates. Record Date. On each Distribution Date, we will make each monthly payment on the CertiÑcates to Holders of record on the last day of the preceding month. Class Factors. On or shortly after the eleventh calendar day of each month, we will publish a factor (carried to eight decimal places) for each Class of CertiÑcates. When the applicable class factor is multiplied by the original principal balance (or notional principal balance) of a CertiÑcate of any Class, the product will equal the current principal balance (or notional principal balance) of that CertiÑcate after taking into account payments on the Distribution Date in the same month (as well as any addition to principal in the case of the Accrual Classes). No Optional Termination. We have no option to eåect an early termination of the Lower Tier REMIC or the Trust. Further, we will not repurchase the Mortgage Loans underlying any MBS in a ""clean-up call.'' See ""Description of the CertiÑcatesÌTermination'' in the MBS Prospectus. Voting the Group 7 Underlying REMIC CertiÑcates. Holders of the Group 7 Underlying REMIC CertiÑcates may be asked to vote on issues arising under the related trust agreements. If so, the Trustee will vote the Group 7 Underlying REMIC CertiÑcates as instructed by Holders of CertiÑcates of the related Classes. The Trustee must receive instructions from Holders of CertiÑcates having principal balances totaling at least 51% of the aggregate principal balance of the related Classes. In the absence of such instructions, the Trustee will vote in a manner consistent, in its sole judgment, with the best interests of CertiÑcateholders. Combination and Recombination General. You are permitted to exchange all or a portion of the SG, PJ, FC, UA, FH, GI, PU, MQ, MI, MA, FM, QM, XC, CX and CI Classes of REMIC CertiÑcates for a proportionate interest in the related RCR CertiÑcates in the combinations shown on Schedule 1. You also may exchange all or a portion of the RCR CertiÑcates for the related REMIC CertiÑcates in the same manner. This process may occur repeatedly. Holders of RCR CertiÑcates will be the beneñcial owners of a proportionate interest in the related REMIC CertiÑcates and will receive a proportionate share of the distributions on the related REMIC CertiÑcates. S-13

14 The Classes of REMIC CertiÑcates and RCR CertiÑcates that are outstanding at any given time, and the outstanding principal balances (or notional principal balances) of these Classes, will depend upon any related distributions of principal, as well as any exchanges that occur. REMIC CertiÑcates and RCR CertiÑcates may be exchanged only in the proportions shown on Schedule 1. Procedures. If a CertiÑcateholder wishes to exchange CertiÑcates, the CertiÑcateholder must notify our Structured Transactions Department through one of our ""REMIC Dealer Group'' dealers in writing or by telefax no later than two business days before the proposed exchange date. The exchange date can be any business day other than the Ñrst or last business day of the month subject to our approval. The notice must include the outstanding principal balance of both the CertiÑcates to be exchanged and the CertiÑcates to be received, and the proposed exchange date. After receiving the Holder's notice, we will telephone the dealer with delivery and wire payment instructions. Notice becomes irrevocable on the second business day before the proposed exchange date. In connection with each exchange, the Holder must pay us a fee equal to 1/32 of 1% of the outstanding principal balance (exclusive of any notional principal balance) of the CertiÑcates to be exchanged. In no event, however, will our fee be less than $2,000. We will make the Ñrst distribution on a REMIC CertiÑcate or an RCR CertiÑcate received in an exchange transaction on the Distribution Date in the following month. We will make that distribution to the Holder of record as of the close of business on the last day of the month of the exchange. Additional Considerations. The characteristics of RCR CertiÑcates will reöect the characteristics of the REMIC CertiÑcates used to form those RCR CertiÑcates. You should also consider a number of factors that will limit a CertiÑcateholder's ability to exchange REMIC CertiÑcates for RCR CertiÑcates or vice versa: At the time of the proposed exchange, a CertiÑcateholder must own CertiÑcates of the related Class or Classes in the proportions necessary to make the desired exchange. A CertiÑcateholder that does not own the CertiÑcates may be unable to obtain the necessary REMIC CertiÑcates or RCR CertiÑcates. The CertiÑcateholder of needed CertiÑcates may refuse to sell them at a reasonable price (or any price) or may be unable to sell them. Certain CertiÑcates may have been purchased and placed into other Ñnancial structures and thus be unavailable. Principal distributions will decrease the amounts available for exchange over time. Only the combinations listed on Schedule 1 are permitted. The Trust MBS The following table contains certain information about the Trust MBS. The Trust MBS included in each speciñed Group will have the aggregate unpaid principal balance and Pass-Through Rate shown below and the general characteristics described in the MBS Prospectus. The Trust MBS provides that principal and interest on the related Mortgage Loans are passed through monthly. The Mortgage Loans underlying the Trust MBS are conventional, Ñxed-rate, fully-amortizing mortgage loans secured by Ñrst mortgages or deeds of trust on single-family residential properties. These Mortgage Loans have original maturities of up to 30 years in the case of the Group 1, Group 2, Group 3, Group 4, Group 5, Group 6 and Group 8 MBS, and up to 20 years in the case of the Group 9 MBS. See ""The Mortgage Pools'' and ""Yield, Maturity, and Prepayment Considerations'' in the MBS Prospectus. S-14

15 We expect the characteristics of the Trust MBS and the related Mortgage Loans as of the Issue Date to be as follows: Group 1 MBS Aggregate Unpaid Principal BalanceÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $72,000,000 MBS Pass-Through Rate ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6.00% Range of WACs (annual percentages) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6.25% to 8.50% Range of WAMs ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 241 months to 360 months Approximate Weighted Average WAMÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 354 months Approximate Weighted Average WALA (weighted average loan age) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5 months Group 2 MBS Aggregate Unpaid Principal BalanceÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $100,000,000 MBS Pass-Through Rate ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5.00% Range of WACs (annual percentages) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5.25% to 7.50% Range of WAMs ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 241 months to 360 months Approximate Weighted Average WAMÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 357 months Approximate Weighted Average WALA ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2 months Group 3 MBS Aggregate Unpaid Principal BalanceÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $50,000,000 MBS Pass-Through Rate ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5.50% Range of WACs (annual percentages) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5.75% to 8.00% Range of WAMs ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 241 months to 360 months Approximate Weighted Average WAMÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 357 months Approximate Weighted Average WALA ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2 months Group 4 MBS Aggregate Unpaid Principal BalanceÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $172,000,000 MBS Pass-Through Rate ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4.50% Range of WACs (annual percentages) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4.75% to 7.00% Range of WAMs ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 241 months to 360 months Approximate Weighted Average WAMÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 357 months Approximate Weighted Average WALA ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2 months Group 5 MBS Aggregate Unpaid Principal BalanceÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $30,000,000 MBS Pass-Through Rate ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6.50% Range of WACs (annual percentages) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6.75% to 9.00% Range of WAMs ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 241 months to 360 months Approximate Weighted Average WAMÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 338 months Approximate Weighted Average WALA ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 18 months Group 6 MBS Aggregate Unpaid Principal BalanceÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $105,750,000 MBS Pass-Through Rate ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6.00% Range of WACs (annual percentages) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6.25% to 8.50% Range of WAMs ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 241 months to 360 months Approximate Weighted Average WAMÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 352 months Approximate Weighted Average WALA ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6 months S-15

16 Group 8 MBS Aggregate Unpaid Principal BalanceÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $261,300,000 MBS Pass-Through Rate ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6.00% Range of WACs (annual percentages) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6.25% to 8.50% Range of WAMs ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 241 months to 360 months Approximate Weighted Average WAMÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 338 months Approximate Weighted Average WALA ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 17 months Group 9 MBS Aggregate Unpaid Principal BalanceÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $220,500,000 MBS Pass-Through Rate ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5.00% Range of WACs (annual percentages) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5.25% to 7.50% Range of WAMs ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 181 months to 240 months Approximate Weighted Average WAMÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 237 months Approximate Weighted Average WALA ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3 months The Group 7 Underlying REMIC CertiÑcates The Group 7 Underlying REMIC CertiÑcates represent beneñcial ownership interests in the related Underlying REMIC Trusts. The assets of those trusts evidence direct or indirect beneñcial ownership interests in certain MBS having the general characteristics set forth in the MBS Prospectus. Distributions on the Group 7 Underlying REMIC CertiÑcates will be passed through monthly, beginning in the month after we issue the CertiÑcates. The general characteristics of the Group 7 Underlying REMIC CertiÑcates are described in the related Underlying REMIC Disclosure Documents. See Exhibit A for additional information about the Group 7 Underlying REMIC CertiÑcates. Each MBS evidences beneñcial ownership interests in a pool of conventional, Ñxed-rate, fullyamortizing mortgage loans secured by Ñrst mortgages or deeds of trust on single-family residential properties, as described under ""The Mortgage Pools'' and ""Yield, Maturity, and Prepayment Considerations'' in the MBS Prospectus. For further information about the Group 7 Underlying REMIC CertiÑcates, telephone us at There may have been material changes in facts and circumstances since the dates we prepared the related Underlying REMIC Disclosure Documents. These may include changes in prepayment speeds, prevailing interest rates and other economic factors. As a result, the usefulness of the information set forth in those documents may be limited. Final Data Statement After issuing the CertiÑcates, we will prepare a Final Data Statement containing certain information, including the principal balances of the Group 7 Underlying REMIC CertiÑcates as of the Issue Date and, with respect to the Trust MBS, the Pool number, the current WAC (or original WAC, if the current WAC is not available) and the current WAM (or Adjusted WAM, if the current WAM is not available) of the Mortgage Loans underlying each of the Trust MBS as of the Issue Date. The Final Data Statement also will include the weighted averages of all the current or original WACs and the weighted averages of all the current or Adjusted WAMs, based on the current unpaid principal balances of the Mortgage Loans underlying each of the Trust MBS as of the Issue Date. You may obtain the Final Data Statement by telephoning us at In addition, the Final Data Statement is available on our corporate Web site at S-16