$961,803,899 Federal National Mortgage Association rstuv …€¦ · · 2000-08-05Federal...

Prospectus Supplement(To Prospectus dated January 4, 1990)

$961,803,899Federal National Mortgage Association

rstuvGuaranteed REMIC Pass-Through CertiÑcates

Fannie Mae REMIC Trust 1992-204

The Guaranteed REMIC Pass-Through CertiÑcates oÅered hereby (the ""REMIC CertiÑcates'') represent beneÑcialownership interests in one of two trust funds. The REMIC CertiÑcates, other than the Class 204-RL REMIC CertiÑcate,represent beneÑcial ownership interests in Fannie Mae REMIC Trust 1992-204 (the ""Trust''). The assets of the Trust consistof the ""regular interests'' in a separate trust fund (the ""Lower Tier REMIC''). The assets of the Lower Tier REMIC consist ofFannie Mae Guaranteed Mortgage Pass-Through CertiÑcates (the ""MBS CertiÑcates''), each of which represents a beneÑcialinterest in a pool (the ""Pool'') of Ñrst lien, single-family, Ñxed-rate residential mortgage loans (the ""Mortgage Loans'') havingthe characteristics described herein. The REMIC CertiÑcates are to be issued and guaranteed as to timely distribution ofprincipal and interest by Fannie Mae and are oÅered by Fannie Mae pursuant to its Prospectus for Guaranteed MortgagePass-Through CertiÑcates (the ""MBS Prospectus''), available as described herein, and its Prospectus for Guaranteed REMICPass-Through CertiÑcates (the ""REMIC Prospectus''), attached hereto. Kidder, Peabody & Co. Incorporated (""Kidder,Peabody'') is to receive the REMIC CertiÑcates in exchange for the MBS CertiÑcates pursuant to a Fannie Mae commitmentand will sell them to the public as described below and under ""Plan of Distribution'' herein.

Elections will be made to treat the Lower Tier REMIC and the Trust as ""real estate mortgage investment conduits'' (""REMICs'') pursuant to the InternalRevenue Code of 1986, as amended (the ""Code''). The REMIC CertiÑcates (other than the Class 204-R and Class 204-RL REMIC CertiÑcates) will be designated asthe ""regular interests,'' and the Class 204-R REMIC CertiÑcate will be designated as the ""residual interest,'' in the REMIC constituted by the Trust. The interests in theLower Tier REMIC other than the Class 204-RL REMIC CertiÑcate (the ""Lower Tier Regular Interests'') will be designated as the ""regular interests,'' and theClass 204-RL REMIC CertiÑcate will be designated as the ""residual interest,'' in the Lower Tier REMIC. See ""Certain Additional Federal Income Tax Consequences''herein and ""Certain Federal Income Tax Consequences'' in the REMIC Prospectus. (Cover continued on next page)

THE OBLIGATIONS OF FANNIE MAE UNDER ITS GUARANTY OF THE REMIC CERTIFICATES ARE OBLIGATIONS OF FANNIEMAE ONLY AND ARE NOT BACKED BY THE FULL FAITH AND CREDIT OF THE UNITED STATES. THE REMIC

CERTIFICATES ARE EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OF 1933 ANDARE ""EXEMPTED SECURITIES'' WITHIN THE MEANING OF THE SECURITIES EXCHANGE ACT OF 1934.

Original Final Original FinalPrincipal Interest Distribution Principal Interest DistributionBalance Rate Date Balance Rate Date

Class 204-A ÏÏÏÏÏÏÏÏÏÏ $231,598,572 5.50% April 2019 Class 204-SE ÏÏÏÏÏÏÏÏÏÏ $ 12,321,589 (2) October 2022Class 204-FC ÏÏÏÏÏÏÏÏÏÏ 33,574,173 (1) April 2019 Class 204-F ÏÏÏÏÏÏÏÏÏÏ 54,245,739 (1) October 2022Class 204-SC ÏÏÏÏÏÏÏÏÏÏ 152,000 (1) October 2013 Class 204-S ÏÏÏÏÏÏÏÏÏÏ 36,163,826 (1) October 2022Class 204-SD ÏÏÏÏÏÏÏÏÏÏ 133,131 (1) April 2019 Class 204-FA ÏÏÏÏÏÏÏÏÏÏ 480,901,950 (3) October 2022Class 204-B ÏÏÏÏÏÏÏÏÏÏ 48,090,195 6.00 October 2020 Class 204-SA ÏÏÏÏÏÏÏÏÏÏ (4) (3) May 1999Class 204-C ÏÏÏÏÏÏÏÏÏÏ 23,500,000 6.00 June 2021 Class 204-SB ÏÏÏÏÏÏÏÏÏÏ (5) (3) October 2022Class 204-FG ÏÏÏÏÏÏÏÏÏÏ 12,631,578 (2) January 2022 Class 204-R ÏÏÏÏÏÏÏÏÏÏ (6) (6) October 2022Class 204-SG ÏÏÏÏÏÏÏÏÏÏ 7,368,422 (2) January 2022 Class 204-RL ÏÏÏÏÏÏÏÏÏÏ (7) (7) October 2022Class 204-FE ÏÏÏÏÏÏÏÏÏÏ 21,122,724 (2) October 2022

(1) The interest rate is subject to monthly adjustment by reference to the London interbank oÅered rate for one-month U.S. dollar deposits (""LIBOR''), as describedherein under ""Description of the REMIC CertiÑcatesÌDistributions of Interest.''

(2) The interest rate is subject to monthly adjustment by reference to the average level of the 10-Year Treasury Index (the ""10-Year Treasury Index'') as describedherein under ""Description of the REMIC CertiÑcatesÌDistributions of Interest.''

(3) The interest rate will be Ñxed for the Ñrst twelve Interest Accrual Periods, as described herein under ""Description of the REMIC CertiÑcatesÌDistributions ofInterest.'' Subsequent to the initial twelve Interest Accrual Periods, the interest rate will be subject to monthly adjustment by reference to LIBOR, as describedherein under ""Description of the REMIC CertiÑcatesÌDistributions of Interest.''

(4) The Class 204-SA REMIC CertiÑcates are interest only certiÑcates, have no principal balance and will bear interest on an original notional principal balance of$21,395,917 as described herein under ""Description of the REMIC CertiÑcatesÌDistributions of Interest.''

(5) The Class 204-SB REMIC CertiÑcates are interest only certiÑcates, have no principal balance and will bear interest on an original notional principal balance of$459,506,033 as described herein under ""Description of the REMIC CertiÑcatesÌDistributions of Interest.''

(6) The Class 204-R REMIC CertiÑcate has no principal balance and does not bear interest. The Holder of the Class 204-R REMIC CertiÑcate will be entitled toreceive the proceeds of the remaining assets of the Trust, if any, after the principal balances of the ""regular interests'' therein have been reduced to zero. It is notanticipated that there will be any material assets remaining in such circumstance.

(7) The Class 204-RL REMIC CertiÑcate has no principal balance and does not bear interest. The Holder of the Class 204-RL REMIC CertiÑcate will be entitled toreceive the proceeds of the remaining assets of the Lower Tier REMIC, if any, after the principal balances of the ""regular interests'' therein have been reduced tozero. It is not anticipated that there will be any material assets remaining in such circumstance.

The REMIC CertiÑcates are being oÅered by Kidder, Peabody from time to time in negotiated transactions, at varyingprices to be determined at the time of sale.

The REMIC CertiÑcates are oÅered by Kidder, Peabody, subject to issuance by Fannie Mae and to prior sale or towithdrawal or modiÑcation of the oÅer without notice, when, as and if delivered to and accepted by Kidder, Peabody, andsubject to approval of certain legal matters by counsel. It is expected that the REMIC CertiÑcates, except for the Class 204-Rand Class 204-RL REMIC CertiÑcates, will be available through the book-entry system of the Federal Reserve Banks on orabout October 30, 1992. It is expected that the Class 204-R and Class 204-RL REMIC CertiÑcates in registered, certiÑcatedform will be available for delivery at the oÇces of Kidder, Peabody, New York, New York, on or about October 30, 1992.

£§•October 5, 1992

(Cover continued from previous page)

Interest on each Class of interest bearing REMIC CertiÑcates at the applicable per annuminterest rate set forth on the cover or described herein will be distributed on the 25th day of eachmonth (or, if such 25th day is not a business day, on the Ñrst business day next succeeding such 25thday), commencing in November 1992 (each, a ""Distribution Date''). See ""Description of the REMICCertiÑcatesÌDistributions of Interest'' herein.

The principal distribution on the REMIC CertiÑcates on each Distribution Date will be in anamount equal to the aggregate distributions of principal concurrently made on the MBS CertiÑcates.On each Distribution Date, distributions of principal of the REMIC CertiÑcates will be allocatedamong the Classes of REMIC CertiÑcates in accordance with the priorities described under ""Descrip-tion of the REMIC CertiÑcatesÌDistributions of Principal'' herein. Both the Trust and the LowerTier REMIC are subject to early termination only under the limited circumstances described hereinunder ""Description of the REMIC CertiÑcatesÌGeneralÌOptional Termination'' and in the REMICProspectus under ""The Trust AgreementÌTermination.''

The yield to investors in each Class of REMIC CertiÑcates will be sensitive in varyingdegrees to the rate of principal payments (including prepayments) of the Mortgage Loans,which generally can be prepaid at any time. In addition, the yield to maturity on a Class ofREMIC CertiÑcates may vary depending on the extent to which such Class is purchased at adiscount or premium. Holders of the REMIC CertiÑcates (other than the Class 204-SA andClass 204-SB REMIC CertiÑcates) should consider, in the case of any REMIC CertiÑcatespurchased at a discount, the risk that a slower than anticipated rate of principal paymentscould result in an actual yield that is lower than the anticipated yield and, in the case of anyREMIC CertiÑcates purchased at a premium, the risk that a faster than anticipated rate ofprincipal payments could result in an actual yield that is lower than the anticipated yield.Holders of the Class 204-SA and Class 204-SB REMIC CertiÑcates should consider the riskthat a faster than anticipated rate of principal payments will result in an actual yield thatis lower than the anticipated yield. In addition, the yield on any Class bearing an interestrate that Öuctuates in response to changes in an index will be sensitive to the level of suchindex, and the yield on any Class bearing an interest rate that Öuctuates as a multiple of anindex will be very sensitive to the level of such index. See ""Description of the REMICCertiÑcatesÌYield Considerations'' herein.

The Class 204-R and Class 204-RL REMIC CertiÑcates will be subject to certain transferrestrictions. In addition, any transferee of the Class 204-R or Class 204-RL REMIC CertiÑcate will berequired to execute and deliver an aÇdavit as provided herein and in the REMIC Prospectus. See""Description of the REMIC CertiÑcatesÌCharacteristics of the Class 204-R and Class 204-RLREMIC CertiÑcates'' herein and ""Description of the REMIC CertiÑcatesÌAdditional Characteristicsof Residual CertiÑcates'' and ""Certain Federal Income Tax ConsequencesÌSales of CertiÑcatesÌResidual CertiÑcates Transferred to or Held by DisqualiÑed Organizations'' in the REMIC Prospectus.

These securities have not been approved or disapproved by the Securities and ExchangeCommission or any state securities commission nor has the Securities and Exchange Commission orany state securities commission passed upon the accuracy or adequacy of this Prospectus Supplement,the REMIC Prospectus or the MBS Prospectus. Any representation to the contrary is a criminaloÅense.

This Prospectus Supplement does not contain complete information about the REMICCertiÑcates. Investors should purchase REMIC CertiÑcates only after reading this Pro-spectus Supplement, the REMIC Prospectus, the MBS Prospectus dated August 1, 1992and the Fannie Mae Information Statement dated March 30, 1992 and any supplementsthereto (the ""Information Statement''). The MBS Prospectus and the Information State-ment are incorporated herein by reference and may be obtained from Fannie Mae bywriting or calling its REMIC Prospectus Department at 3900 Wisconsin Avenue, N.W.,Area 2H-3S, Washington, D.C. 20016 (telephone 202-752-7585). Such documents mayalso be obtained from Kidder, Peabody by writing or calling its Prospectus Department at60 Broad Street, 6th Floor, New York, New York 10004 (telephone 212-656-1584).

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TABLE OF CONTENTS

Page Page

Description of the REMIC Characteristics of the Class 204-RCertiÑcates ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S- 4 and Class 204-RL REMIC

CertiÑcatesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-19General ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S- 4

Yield Considerations ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-20Structure ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S- 4

General ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-20MBS DistributionsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S- 4

The Class 204-S, Class 204-SA,Fannie Mae GuarantyÏÏÏÏÏÏÏÏÏÏÏÏ S- 4Class 204-SB, Class 204-SC

Characteristics of REMIC and Class 204-SD REMICCertiÑcates ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S- 4 CertiÑcates ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-21

Interest Only Classes ÏÏÏÏÏÏÏÏÏÏÏÏÏ S- 5The Class 204-SE and Class 204-SG

REMIC CertiÑcates ÏÏÏÏÏÏÏÏÏÏÏÏ S-22Authorized DenominationsÏÏÏÏÏÏÏÏ S- 5

Record Date ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S- 5 Final Distribution DatesÏÏÏÏÏÏÏÏÏÏÏÏ S-23

REMIC Trust Factors ÏÏÏÏÏÏÏÏÏÏÏÏ S- 5 Reinvestment RiskÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-23

Optional Termination ÏÏÏÏÏÏÏÏÏÏÏÏ S- 5 Weighted Average Lives of theREMIC CertiÑcates ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-23The MBS CertiÑcates ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S- 6

Decrement Tables ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-25Prepayment Considerations andRisks ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S- 6

Certain Additional FederalDistributions of Interest ÏÏÏÏÏÏÏÏÏÏÏÏ S- 7 Income Tax Consequences ÏÏÏÏÏÏÏ S-27

General ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S- 7 REMIC Elections and Special TaxAttributesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-27

The Class 204-SA and Class 204-SBREMIC CertiÑcates ÏÏÏÏÏÏÏÏÏÏÏÏ S- 7 Taxation of BeneÑcial Owners of

Regular CertiÑcates ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-27Floating Rate CertiÑcates ÏÏÏÏÏÏÏÏÏ S- 7

Taxation of BeneÑcial Owners ofCalculation of the Treasury Index ÏÏÏÏ S- 8Residual CertiÑcates ÏÏÏÏÏÏÏÏÏÏÏÏÏ S-28

Calculation of LIBOR ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S- 9Legal Investment ConsiderationsÏÏÏÏ S-29

Distributions of PrincipalÏÏÏÏÏÏÏÏÏÏÏ S-10

Plan of Distribution ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-29Assumptions Relating to Tables ÏÏÏÏÏ S-10

General ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-29Pricing Assumptions ÏÏÏÏÏÏÏÏÏÏÏÏÏ S-10

Increase in REMIC CertiÑcates ÏÏÏ S-29PSA AssumptionsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-11

Principal Balance Schedules ÏÏÏÏÏÏÏÏ S-12 Legal MattersÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-30

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DESCRIPTION OF THE REMIC CERTIFICATES

The following summaries describing certain provisions of the REMIC CertiÑcates do not purportto be complete and are subject to, and are qualiÑed in their entirety by reference to, the REMICProspectus, the MBS Prospectus and the provisions of the Trust Agreement (deÑned below).Capitalized terms used and not otherwise deÑned in this Prospectus Supplement have the respectivemeanings assigned to such terms in the REMIC Prospectus, the MBS Prospectus or the TrustAgreement (as the context may require).

General

Structure. The REMIC CertiÑcates will be issued and guaranteed by the Federal NationalMortgage Association (""Fannie Mae''), a corporation organized and existing under the laws of theUnited States, under the authority contained in Section 304(d) of the Federal National MortgageAssociation Charter Act (12 U.S.C. 1716 et seq.). A description of Fannie Mae and its business,together with certain Ñnancial statements and other Ñnancial information are contained in theInformation Statement incorporated herein by reference. The REMIC CertiÑcates in the Classes andaggregate original principal balances set forth on the cover page hereof will be issued pursuant to atrust agreement dated as of October 1, 1992 (the ""Trust Agreement''), executed by Fannie Mae in itscorporate capacity and in its capacity as Trustee. The Trust and the Lower Tier REMIC will becreated pursuant to the Trust Agreement, and elections will be made to treat each of the Trust and theLower Tier REMIC as a REMIC for federal income tax purposes.

The assets of the Trust will consist of the Lower Tier Regular Interests. The entire beneÑcialownership interest in the Trust will be evidenced by the REMIC CertiÑcates, other than theClass 204-RL REMIC CertiÑcate, as described herein.

The assets of the Lower Tier REMIC will consist of the MBS CertiÑcates. The Lower TierRegular Interests and the Class 204-RL REMIC CertiÑcate, in the aggregate (the ""Lower TierInterests''), will evidence the entire beneÑcial ownership interest in the distributions of principal andinterest on the MBS CertiÑcates. Each of the Lower Tier Regular Interests will be designated as a""regular interest'' in the Lower Tier REMIC. The Class 204-RL REMIC CertiÑcate will be designatedas the ""residual interest'' in the Lower Tier REMIC and will have the characteristics described herein.

MBS Distributions. The MBS CertiÑcates will provide that principal and interest on theunderlying Mortgage Loans will be passed through monthly, commencing on the 25th day of themonth following the month of the initial issuance of the MBS CertiÑcates.

Fannie Mae Guaranty. Pursuant to its guaranty of the MBS CertiÑcates, Fannie Mae willguaranty the timely payment of scheduled installments of principal of and interest on the underlyingMortgage Loans, whether or not received, together with the full principal balance of any foreclosedMortgage Loan, whether or not such balance is actually recovered. In addition, Fannie Mae will beobligated to distribute on a timely basis to the Holders of REMIC CertiÑcates required installments ofprincipal and interest and to distribute the principal balance of each Class of REMIC CertiÑcates infull no later than the applicable Final Distribution Date, whether or not suÇcient funds are availablein the CertiÑcate Account. If Fannie Mae were unable to perform these guaranty obligations,distributions to CertiÑcateholders would consist solely of payments and other recoveries on theMortgage Loans and, accordingly, delinquencies and defaults on the Mortgage Loans would aÅectdistributions to CertiÑcateholders. The guaranties of Fannie Mae are not backed by the full faith andcredit of the United States. See ""Description of the REMIC CertiÑcatesÌFannie Mae's Guaranty'' inthe REMIC Prospectus and ""Description of CertiÑcatesÌThe Corporation's Guaranty'' in the MBSProspectus.

Characteristics of REMIC CertiÑcates. The REMIC CertiÑcates, other than the Class 204-R andClass 204-RL REMIC CertiÑcates, will be issued and maintained and may be transferred by Holdersonly on the book-entry system of the Federal Reserve Banks. Book-entry REMIC CertiÑcates may be

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held of record only by entities eligible to maintain book-entry accounts with a Federal Reserve Bank.Such entities whose names appear on the book-entry records of a Federal Reserve Bank as the entitiesfor whose accounts such REMIC CertiÑcates have been deposited are herein referred to as ""Holders''or ""CertiÑcateholders''. A Holder is not necessarily the beneÑcial owner of a book-entry REMICCertiÑcate. BeneÑcial owners ordinarily will hold book-entry REMIC CertiÑcates through one ormore Ñnancial intermediaries, such as banks, brokerage Ñrms and securities clearing organizations andmust depend on such intermediaries for the enforcement of their rights. See ""Description of theREMIC CertiÑcatesÌDenominations, Book-Entry Form'' in the REMIC Prospectus.

The Class 204-R and Class 204-RL REMIC CertiÑcates will not be issued in book-entry form butwill be issued in fully registered, certiÑcated form. As to the Class 204-R or Class 204-RL REMICCertiÑcate, ""Holder'' or ""CertiÑcateholder'' refers to the registered owner thereof. The Class 204-Rand Class 204-RL REMIC CertiÑcates will be transferable at the corporate trust oÇce of the TransferAgent, or at the agency of the Transfer Agent in New York, New York. The Transfer Agent initiallywill be State Street Bank and Trust Company in Boston, Massachusetts (""State Street''). A servicecharge may be imposed for any registration of transfer of the Class 204-R or Class 204-RL REMICCertiÑcate and Fannie Mae may require payment of a sum suÇcient to cover any tax or othergovernmental charge. See ""Characteristics of the Class 204-R and Class 204-RL REMIC CertiÑcates''herein.

The distribution to the Holders of the Class 204-R and Class 204-RL REMIC CertiÑcates of theproceeds of any remaining assets of the Trust and the Lower Tier REMIC, respectively, will be madeonly upon presentation and surrender of the respective CertiÑcates at the oÇce of the Paying Agent,initially State Street.

Interest Only Classes. The Class 204-SA and Class 204-SB REMIC CertiÑcates will each beinterest only certiÑcates, have no principal balance and bear interest on a notional principal balance.The notional principal balance of an interest only Class of REMIC CertiÑcates is used for purposes ofthe determination of interest distributions on such Class and does not represent an interest in theprincipal distributions of the MBS CertiÑcates or the underlying Mortgage Loans. Although aninterest only Class of REMIC CertiÑcates will not have a principal balance, a REMIC Trust Factorwill be published which will be applicable to the notional principal balance, and references herein tothe principal balances of the REMIC CertiÑcates shall be deemed to refer to the notional principalbalances of the Class 204-SA and Class 204-SB REMIC CertiÑcates, as applicable.

Authorized Denominations. The REMIC CertiÑcates, other than the Class 204-R andClass 204-RL REMIC CertiÑcates, will be issued in minimum denominations of $1,000 and integralmultiples of $1 in excess thereof. Each of the Class 204-R and Class 204-RL REMIC CertiÑcates willbe issued as a single certiÑcate and will not have a principal balance.

Record Date. Each monthly distribution on the REMIC CertiÑcates will be made to Holders ofrecord on the last day of the preceding month.

REMIC Trust Factors. As soon as practicable following the eleventh calendar day of eachmonth, Fannie Mae will publish or otherwise make available for each Class of REMIC CertiÑcates thefactor (carried to eight decimal places) which, when multiplied by the original principal balance of aREMIC CertiÑcate of such Class, will equal the amount of principal remaining to be distributed withrespect to such REMIC CertiÑcate after giving eÅect to the distribution of principal to be made on thefollowing Distribution Date.

Optional Termination. Consistent with its policy described under ""Description of CertiÑ-catesÌTermination'' in the MBS Prospectus, Fannie Mae has agreed in the Trust Agreement not toeÅect indirectly an early termination of the Trust or the Lower Tier REMIC through the exercise ofits right to repurchase the Mortgage Loans underlying any MBS CertiÑcate unless only one MortgageLoan remains in the related Pool or the principal balance of such Pool at the time of repurchase is lessthan one percent of the original principal balance thereof.

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The MBS CertiÑcates

The MBS CertiÑcates underlying the REMIC CertiÑcates are Fannie Mae Guaranteed MortgagePass-Through CertiÑcates, which will have an aggregate unpaid principal balance of $961,803,899,Pass-Through Rates of 8.00% and the general characteristics described in the MBS Prospectusincorporated herein by reference. The Mortgage Loans that underlie the MBS CertiÑcates areconventional Level Payment Mortgage Loans, each secured by a Ñrst mortgage or deed of trust on aone- to four-family (""single-family'') residential property, and all of which have an original maturityof up to 30 years, as described under ""The Mortgage Pools'' and ""Yield Considerations'' in the MBSProspectus. The weighted average coupon of the Mortgage Loans in each Pool (""WAC'') at the issuedate of the related MBS CertiÑcate or the current WAC as of October 1, 1992 (the ""REMIC IssueDate''), if available, will be within the range of 8.25% to 10.50% per annum. The weighted averageremaining term to maturity, in months, of the Mortgage Loans in each Pool (""WAM'') at the issuedate of the related MBS CertiÑcate, less the number of months elapsed from such issue date throughthe REMIC Issue Date (""Adjusted WAM''), or the current WAM as of the REMIC Issue Date, ifavailable, is not expected to be less than 180 or greater than 360. The weighted average of the currentWAMs (or Adjusted WAMs, to the extent the current WAMs are not available) of all the MBSCertiÑcates underlying the REMIC CertiÑcates is expected to be approximately 353 months. Theweighted average calculated loan age of the Mortgage Loans in each Pool (""CAGE'') is determined bysubtracting the original WAM for such pool from 360 months, and adding thereto the number ofmonths elapsed since the issue date of the related MBS CertiÑcate. The weighted average of theCAGEs of the Pools at the REMIC Issue Date is expected to be approximately 7 months. Followingthe issuance of the REMIC CertiÑcates, Fannie Mae will prepare a Final Data Statement setting forththe Pool number, the current WAC (or original WAC, if the current WAC is not available) and thecurrent WAM (or Adjusted WAM, if the current WAM is not available) of each MBS CertiÑcateunderlying the REMIC CertiÑcates, along with the weighted average of all the current or originalWACs and the weighted average of all the current or Adjusted WAMs, based on the current unpaidprincipal balances of the MBS CertiÑcates as of the REMIC Issue Date. The Final Data Statementwill not accompany this Prospectus Supplement but will be made available by Fannie Mae. To requestthe Final Data Statement, telephone Fannie Mae at (202) 752-7585. The contents of the Final DataStatement and other data speciÑc to the REMIC CertiÑcates are available in electronic form by callingFannie Mae at (202) 752-6000.

Prepayment Considerations and Risks

The rate of principal payments of the MBS CertiÑcates, and therefore of distributions on theREMIC CertiÑcates, is related directly to the rate of payments of principal of the underlying MortgageLoans, which may be in the form of scheduled amortization or prepayments (for this purpose, theterm ""prepayment'' includes prepayments and liquidations resulting from default, casualty or con-demnation and payments made pursuant to any guaranty of payment by, or option to repurchase of,Fannie Mae). In general, when the level of prevailing interest rates declines suÇciently relative to theinterest rates on Ñxed-rate mortgage loans, the rate of prepayment is likely to increase, although theprepayment rate is inÖuenced by a number of other factors, including general economic conditions andhomeowner mobility. See ""Maturity and Prepayment Assumptions'' in the MBS Prospectus.

Acceleration of mortgage payments as a result of transfers of the mortgaged property is anotherfactor aÅecting prepayment rates. The Mortgage Loans underlying the MBS CertiÑcates willgenerally provide by their terms that, in the event of the transfer or prospective transfer of title to theunderlying mortgaged property, the full unpaid principal balance of the Mortgage Loan is due andpayable at the option of the holder. As set forth under ""Description of CertiÑcatesÌCollection andOther Servicing Procedures'' in the MBS Prospectus, Fannie Mae is required to exercise its right toaccelerate the maturity of Mortgage Loans containing enforceable ""due-on-sale'' provisions uponcertain transfers of the mortgaged property.

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Prepayments of mortgage loans commonly are measured relative to a prepayment standard ormodel. The model used in this Prospectus Supplement, the Public Securities Association's standardprepayment model (""PSA''), represents an assumed rate of prepayment each month of the thenoutstanding principal balance of a pool of new mortgage loans. PSA does not purport to be either anhistorical description of the prepayment experience of any pool of mortgage loans or a prediction of theanticipated rate of prepayment of any pool of mortgage loans, including the Mortgage Loansunderlying the MBS CertiÑcates backing the REMIC CertiÑcates. 100% PSA assumes prepaymentrates of 0.2% per annum of the then unpaid principal balance of such pool of mortgage loans in theÑrst month of the life of such mortgage loans and an additional 0.2% per annum in each monththereafter (for example, 0.4% per annum in the second month) until the 30th month. Beginning inthe 30th month and in each month thereafter during the life of such mortgage loans, 100% PSAassumes a constant prepayment rate of 6% per annum. Multiples will be calculated from thisprepayment rate series; for example, 185% PSA assumes prepayment rates will be 0.37% per annum inmonth one, 0.74% per annum in month two, reaching 11.1% per annum in month 30 and remainingconstant at 11.1% per annum thereafter. 0% PSA assumes no prepayments.

Distributions of Interest

General. The interest bearing REMIC CertiÑcates will bear interest at the respective per annuminterest rates set forth on the cover or described herein. Interest on the interest bearing REMICCertiÑcates is calculated on the basis of a 360-day year consisting of twelve 30-day months and isdistributable monthly on each Distribution Date, commencing in November 1992. Interest to bedistributed on each interest bearing REMIC CertiÑcate on a Distribution Date will consist of onemonth's interest on the outstanding principal balance of such REMIC CertiÑcate immediately prior tosuch Distribution Date. Interest to be distributed on the interest bearing REMIC CertiÑcates on aDistribution Date will accrue on such REMIC CertiÑcates, other than the Class 204-F, Class 204-S,Class 204-FA, Class 204-SA, Class 204-SB, Class 204-FC, Class 204-SC, Class 204-SD, Class 204-FE,Class 204-SE, Class 204-FG and Class 204-SG REMIC CertiÑcates, during the calendar monthpreceding the month in which such Distribution Date occurs; in the case of the Class 204-F,Class 204-S, Class 204-FA, Class 204-SA, Class 204-SB, Class 204-FC, Class 204-SC, Class 204-SD,Class 204-FE, Class 204-SE, Class 204-FG and Class 204-SG REMIC CertiÑcates, interest will accrueon such REMIC CertiÑcates during the one-month period beginning on the 25th day of such precedingmonth and ending on the 24th day of the month of such Distribution Date (each, an ""Interest AccrualPeriod''). The eÅective yield on the interest bearing REMIC CertiÑcates, other than the Class 204-F,Class 204-S, Class 204-FA, Class 204-SA, Class 204-SB, Class 204-FC, Class 204-SC, Class 204-SD,Class 204-FE, Class 204-SE, Class 204-FG and Class 204-SG REMIC CertiÑcates, will be reducedbelow the yield otherwise produced because interest payable with respect to an Interest Accrual Periodwill not be distributed until the 25th day following the end of such Interest Accrual Period and will notbear interest during such delay.

The Class 204-SA and Class 204-SB REMIC CertiÑcates. The Class 204-SA REMIC CertiÑ-cates will be interest only certiÑcates, have no principal balance and bear interest at the Öoating ratedescribed below during each Interest Accrual Period on a notional principal balance equal to theoutstanding principal balance of the Class 204-FA REMIC CertiÑcates immediately prior to eachDistribution Date minus 459,506,033 (initially equal to $21,395,917).

The Class 204-SB REMIC CertiÑcates will be interest only certiÑcates, have no principal balanceand bear interest at the Öoating rate described below during each Interest Accrual Period on a notionalprincipal balance equal to the lesser of $459,506,033 and the outstanding principal balance of theClass 204-FA REMIC CertiÑcates immediately prior to each Distribution Date (initially equal to$459,506,033). See ""GeneralÌInterest Only Classes'' herein.

Floating Rate CertiÑcates. The following Classes of REMIC CertiÑcates will bear interest duringtheir initial Interest Accrual Period (and the Class 204-FA, Class 204-SA and Class 204-SB REMICCertiÑcates will bear interest during each Interest Accrual Period through the Interest Accrual Period

S-7

ending October 24, 1993) at the respective Initial Interest Rates set forth below, and will bear interestduring each Interest Accrual Period thereafter at the respective rates determined as described below:

Initial Maximum Minimum Formula forInterest Interest Interest Calculation of

Class Rate Rate Rate Interest Rate

204-F ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4.25000% 10.00000% 1.25% LIBOR ° 125 basis points

204-S ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 8.62500% 13.12500% 0.00% 13.12500% ¿ (1.5 £ LIBOR)

204-FAÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3.75000% 10.00000% 0.75% LIBOR ° 75 basis points

204-SAÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6.25000% 9.25000% 0.00% 9.25000% ¿ LIBOR

204-SBÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6.25000% 9.25000% 0.00% 9.25000% ¿ LIBOR

204-FCÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3.45000% 9.50000% 0.45% LIBOR ° 45 basis points

204-SCÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 712.38750% 1,065.63750% 0.00% 1,065.63750% ¿ (117.75 £ LIBOR)

204-SDÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 712.38750% 1,065.63750% 0.00% 1,065.63750% ¿ (117.75 £ LIBOR)

204-FEÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5.77000% 9.50000% 0.00% 10-Year Treasury Index ¿ 50 basis points

204-SEÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6.39428% 16.28571% 0.00% 17.14285% ¿ (1.7142857 £ 10-Year Treasury Index)

204-FGÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5.77000% 9.50000% 0.00% 10-Year Treasury Index ¿ 50 basis points

204-SGÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6.39428% 16.28571% 0.00% 17.14285% ¿ (1.7142857 £ 10-Year Treasury Index)

The yields with respect to such Classes of REMIC CertiÑcates will be aÅected by changes in thelevel of the 10-Year Treasury Index or LIBOR, as applicable, which changes may not correlate withchanges in mortgage interest rates. It is possible that lower mortgage interest rates could occurconcurrently with an increase in the level of the 10-Year Treasury Index or LIBOR. Conversely,higher mortgage interest rates could occur concurrently with a decrease in the level of the 10-YearTreasury Index or LIBOR.

Calculation of the Treasury Index

The 10-Year Treasury Index for each Interest Accrual Period following the initial Interest AccrualPeriod will be determined two business days prior to the Ñrst day of such Interest Accrual Period (the""Treasury Index Determination Date''). Commencing in November 1992 and thereafter on each suchTreasury Index Determination Date in the case of the Class 204-FE, Class 204-SE, Class 204-FG andClass 204-SG REMIC CertiÑcates, until the payment in full of such Classes of REMIC CertiÑcates,State Street will ascertain the average level of the 10-Year Treasury Index in eÅect for the weekending on the last Friday immediately preceding the related Treasury Index Determination Date. The10-Year Treasury Index for any period means the average of the yield for each business day duringsuch period, expressed as a per annum percentage rate, on U.S. Treasury securities adjusted to aconstant maturity of ten years, as published by the Federal Reserve Board in its Statistical ReleaseNo. H.15 (519). Statistical Release No. H.15 (519) is published on Monday or Tuesday of each weekand may be obtained by writing or calling the Publications Department at the Board of Governors ofthe Federal Reserve System, 21st and C Streets, Washington, D.C. 20551 (202) 452-3244. If StateStreet has not yet received Statistical Release No. H.15 (519) for such week, then State Street will usesuch Statistical Release from the immediately preceding week.

Yields on U.S. Treasury securities at ""constant maturity'' are derived from the U.S. Treasury'sdaily yield curve. This curve, which relates the yield on a security to its time to maturity, is based onthe closing market bid yields on actively traded Treasury securities in the over-the-counter market.These market yields are calculated from composites of quotations reported by Ñve leading U.S.Government securities dealers to the Federal Reserve Bank of New York. This method provides ayield for a given maturity even if no security with that exact maturity is outstanding. In the event thatthe 10-Year Treasury Index is no longer published, Fannie Mae will designate a new index based uponcomparable data and methodology. State Street's determination of the 10-Year Treasury Index, in theabsence of manifest error, will be Ñnal and binding.

S-8

Calculation of LIBOR

On the second business day preceding the Ñrst day of each Interest Accrual Period (each, a""LIBOR Determination Date''), commencing in November 1992 in the case of the Class 204-F,Class 204-S, Class 204-FC, Class 204-SC and Class 204-SD REMIC CertiÑcates and in October 1993in the case of the Class 204-FA, Class 204-SA and Class 204-SB REMIC CertiÑcates, until theprincipal balances of such Classes of REMIC CertiÑcates have been reduced to zero, Fannie Mae or itsagent (initially State Street) will request each of the designated reference banks meeting the criteriaset forth herein (the ""Reference Banks'') to inform State Street of the quotation oÅered by itsprincipal London oÇce for making one-month United States dollar deposits in leading banks in theLondon interbank market, as of 11:00 a.m. (London time) on such LIBOR Determination Date. (Forpurposes of calculating LIBOR, ""business day'' means a day on which banks are open for dealing inforeign currency and exchange in London, Boston and New York City.) In lieu of making a request ofthe Reference Banks, State Street may rely on the quotations for those Reference Banks that appearat such time on the Reuters Screen LIBO Page (as deÑned in the International Swap DealersAssociation, Inc. Code of Standard Wording, Assumptions and Provisions for Swaps, 1986 Edition),to the extent available.

LIBOR will be established by State Street on each LIBOR Determination Date as follows:

(a) If on any LIBOR Determination Date two or more Reference Banks provide such oÅeredquotations, LIBOR for the next Interest Accrual Period shall be the arithmetic mean of suchoÅered quotations (rounded upwards if necessary to the nearest whole multiple of 1/32%).

(b) If on any LIBOR Determination Date only one or none of the Reference Banks providessuch oÅered quotations, LIBOR for the next Interest Accrual Period shall be whichever is thehigher of (i) LIBOR as determined on the previous LIBOR Determination Date or (ii) theReserve Interest Rate. The ""Reserve Interest Rate'' shall be the rate per annum which StateStreet determines to be either (i) the arithmetic mean (rounded upwards if necessary to thenearest whole multiple of 1/32%) of the one-month United States dollar lending rates that NewYork City banks selected by State Street are quoting, on the relevant LIBOR Determination Date,to the principal London oÇces of at least two of the Reference Banks to which such quotationsare, in the opinion of State Street, being so made, or (ii) in the event that State Street candetermine no such arithmetic mean, the lowest one-month United States dollar lending ratewhich New York City banks selected by State Street are quoting on such LIBOR DeterminationDate to leading European banks.

(c) If on the November 1992 LIBOR Determination Date, State Street is required but isunable to determine the Reserve Interest Rate in the manner provided in paragraph (b) above,LIBOR shall be 3.0%.

Each Reference Bank (i) shall be a leading bank engaged in transactions in Eurodollar deposits inthe international Eurocurrency market; (ii) shall not control, be controlled by, or be under commoncontrol with Fannie Mae; and (iii) shall have an established place of business in London. If any suchReference Bank should be unwilling or unable to act as such or if Fannie Mae should terminate theappointment of any such Reference Bank, State Street will promptly appoint another leading bankmeeting the criteria speciÑed above.

The establishment of LIBOR on each LIBOR Determination Date by State Street and StateStreet's calculation of the rate of interest for the applicable Classes of REMIC CertiÑcates for therelated Interest Accrual Period shall (in the absence of manifest error) be Ñnal and binding. Eachsuch rate of interest may be obtained by telephoning Fannie Mae at (202) 752-6547.

S-9

Distributions of Principal

The Class 204-A, Class 204-B, Class 204-C, Class 204-FC, Class 204-SC, Class 204-SD,Class 204-FE, Class 204-SE, Class 204-FG and Class 204-SG REMIC CertiÑcates are ""TargetedPrincipal REMIC CertiÑcates.''

Principal will be distributed monthly on the REMIC CertiÑcates in an amount equal to theaggregate distributions of principal concurrently made on the MBS CertiÑcates (the ""PrincipalDistribution Amount'').

On each Distribution Date, the Class 204-FA REMIC CertiÑcates will receive an amount equal to50.000000052% of the Principal Distribution Amount, which percentage is equal to the proportionthat the original principal balance of the Class 204-FA REMIC CertiÑcates bears to the aggregateoriginal principal balance of the REMIC CertiÑcates, until the principal balance thereof has beenreduced to zero.

On each Distribution Date the excess of the Principal Distribution Amount over the amountapplied pursuant to the preceding paragraph will be applied to the distribution of principal of thefollowing Classes of REMIC CertiÑcates in the following order of priority:

(i) to the Targeted Principal REMIC CertiÑcates in the order and in the proportions setforth in the following table, in an amount up to the amount necessary to reduce the outstandingprincipal balances thereof to their respective Targeted Principal Balances as set forth in thePrincipal Balance Schedules herein for such Distribution Date:

Allocated to

Class listed in thepreceding column Class 204-A Class 204-FC Class 204-FG Class 204-FE

Class 204-SC ÏÏÏÏÏÏÏÏÏÏ 0.1074110154% 87.2449427720% 12.6476462126% 0% 0%Class 204-SD ÏÏÏÏÏÏÏÏÏÏ 0.1074110154% 87.2449427720% 12.6476462126% 0% 0%Class 204-B ÏÏÏÏÏÏÏÏÏÏ 100% 0% 0% 0% 0%Class 204-C ÏÏÏÏÏÏÏÏÏÏ 100% 0% 0% 0% 0%Class 204-SG ÏÏÏÏÏÏÏÏÏÏ 36.8421100000% 0% 0% 63.1578900000% 0%Class 204-SE ÏÏÏÏÏÏÏÏÏÏ 36.8421052632% 0% 0% 0% 63.1578947368%

(ii) concurrently, to the Class 204-F and Class 204-S REMIC CertiÑcates, in proportion totheir original principal balances (or 60% and 40%, respectively), until the principal balancesthereof have been reduced to zero; and

(iii) to the Targeted Principal REMIC CertiÑcates in the order and in the proportions setforth in clause (i) above, without regard to their Targeted Principal Balances and until therespective principal balances thereof have been reduced to zero.

Assumptions Relating to Tables

Pricing Assumptions. Unless otherwise speciÑed, the information in the tables in this Prospec-tus Supplement has been prepared on the basis of the following assumptions (the ""Pricing Assump-tions''): (i) each Mortgage Loan bears interest at a rate of 8.70% per annum and has an original termto maturity of 360 months; (ii) the following principal amounts of the Mortgage Loans have theremaining terms to maturity and CAGEs, respectively, as speciÑed: $87,436,720Ì329 months and31 months; $131,155,077Ì344 months and 16 months; $306,028,514Ì355 months and 5 months;$218,591,794Ì357 months and 3 months; and $218,591,794Ì360 months and 0 months; (iii) theMortgage Loans prepay at the speciÑed constant percentages of PSA speciÑed in the related table;(iv) the closing date for the sale of the REMIC CertiÑcates is October 30, 1992; and (v) the Ñrstdistribution on the REMIC CertiÑcates is made in November 1992.

S-10

PSA Assumptions. The Principal Balance Schedules have been prepared on the basis of thePricing Assumptions and the assumption that the Mortgage Loans prepay at the approximateconstant level set forth below:

Principal BalanceSchedule Reference Related CertiÑcates PSA Level

Targeted Principal Balances Targeted Principal REMIC CertiÑcates 185%

There is no assurance that the principal balances of the Classes of REMIC CertiÑcates speciÑedabove will conform on any Distribution Date to the applicable balances speciÑed for such DistributionDate in the Principal Balance Schedules below, or that distributions of principal will begin or end onthe respective Distribution Dates speciÑed therein. Because any excess of the principal available fordistribution on any Distribution Date over the amount necessary to reduce the principal balances ofthe applicable Classes of REMIC CertiÑcates to their respective scheduled principal amounts will bedistributed, the ability to so reduce the principal balances of such Classes will not be enhanced by theaveraging of high and low principal payments. Moreover, because of the diverse remaining terms tomaturity of the Mortgage Loans (which will include recently originated Mortgage Loans), thespeciÑed Classes of REMIC CertiÑcates may not be reduced to their respective scheduled principalamounts, even if prepayments occur at a constant level at the rate speciÑed above.

S-11

Principal Balance Schedules

Class 204-A Class 204-B Class 204-C Class 204-FC Class 204-SCTargeted Targeted Targeted Targeted Targeted

Distribution Principal Principal Principal Principal PrincipalDate Balance Balance Balance Balance Balance

Initial Balance ÏÏÏÏÏÏÏÏÏÏÏÏÏ $231,598,572.00 $48,090,195.00 $23,500,000.00 $33,574,173.00 $152,000.00

November 1992 ÏÏÏÏÏÏÏÏÏÏÏÏ 230,261,971.86 48,090,195.00 23,500,000.00 33,380,409.96 150,354.45

December 1992 ÏÏÏÏÏÏÏÏÏÏÏÏ 228,810,970.00 48,090,195.00 23,500,000.00 33,170,062.43 148,568.06

January 1993 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 227,246,064.89 48,090,195.00 23,500,000.00 32,943,202.67 146,641.44

February 1993 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 225,567,867.01 48,090,195.00 23,500,000.00 32,699,919.20 144,575.34

March 1993 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 223,777,098.60 48,090,195.00 23,500,000.00 32,440,316.69 142,370.65

April 1993ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 221,874,593.09 48,090,195.00 23,500,000.00 32,164,515.99 140,028.39

May 1993 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 219,861,294.54 48,090,195.00 23,500,000.00 31,872,653.94 137,549.73

June 1993 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 217,738,256.73 48,090,195.00 23,500,000.00 31,564,883.31 134,935.97

July 1993 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 215,506,642.17 48,090,195.00 23,500,000.00 31,241,372.62 132,188.53

August 1993 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 213,167,720.92 48,090,195.00 23,500,000.00 30,902,306.00 129,308.98

September 1993ÏÏÏÏÏÏÏÏÏÏÏÏ 210,722,869.23 48,090,195.00 23,500,000.00 30,547,882.94 126,299.02

October 1993 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 208,173,568.02 48,090,195.00 23,500,000.00 30,178,318.14 123,160.47































May 1996 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 105,913,361.95 48,090,195.00 23,500,000.00 15,353,952.77 0.00

June 1996 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 102,794,024.99 48,090,195.00 23,500,000.00 14,901,751.55 0.00

July 1996 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 99,705,772.74 48,090,195.00 23,500,000.00 14,454,056.58 0.00

August 1996 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 96,648,300.23 48,090,195.00 23,500,000.00 14,010,823.66 0.00

September 1996ÏÏÏÏÏÏÏÏÏÏÏÏ 93,621,305.46 48,090,195.00 23,500,000.00 13,572,009.01 0.00

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October 1996 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 90,624,489.42 $48,090,195.00 $23,500,000.00 $13,137,569.28 $ 0.00

November 1996 ÏÏÏÏÏÏÏÏÏÏÏÏ 87,657,555.98 48,090,195.00 23,500,000.00 12,707,461.55 0.00

December 1996 ÏÏÏÏÏÏÏÏÏÏÏÏ 84,720,211.92 48,090,195.00 23,500,000.00 12,281,643.31 0.00

January 1997 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 81,812,166.90 48,090,195.00 23,500,000.00 11,860,072.46 0.00

February 1997 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 78,933,133.38 48,090,195.00 23,500,000.00 11,442,707.32 0.00

March 1997 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 76,082,826.68 48,090,195.00 23,500,000.00 11,029,506.63 0.00

April 1997ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 73,260,964.85 48,090,195.00 23,500,000.00 10,620,429.51 0.00






October 1997 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 56,911,692.31 48,090,195.00 23,500,000.00 8,250,322.91 0.00












October 1998 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 27,026,086.62 48,090,195.00 23,500,000.00 3,917,893.36 0.00









July 1999 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6,864,522.78 48,090,195.00 23,500,000.00 995,129.95 0.00

August 1999 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4,735,139.96 48,090,195.00 23,500,000.00 686,439.50 0.00

September 1999ÏÏÏÏÏÏÏÏÏÏÏÏ 2,627,122.25 48,090,195.00 23,500,000.00 380,846.29 0.00

October 1999 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 540,259.67 48,090,195.00 23,500,000.00 78,319.88 0.00

November 1999 ÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 46,341,491.12 23,500,000.00 0.00 0.00

December 1999 ÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 43,997,316.23 23,500,000.00 0.00 0.00

January 2000 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 41,676,681.31 23,500,000.00 0.00 0.00

February 2000 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 39,379,354.98 23,500,000.00 0.00 0.00

March 2000 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 37,105,108.10 23,500,000.00 0.00 0.00

April 2000ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 34,853,713.76 23,500,000.00 0.00 0.00

May 2000 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 32,624,947.28 23,500,000.00 0.00 0.00

June 2000 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 30,418,586.19 23,500,000.00 0.00 0.00

July 2000 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 28,234,410.18 23,500,000.00 0.00 0.00

August 2000 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 26,072,201.10 23,500,000.00 0.00 0.00

September 2000ÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 23,931,742.91 23,500,000.00 0.00 0.00

S-13



October 2000 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 0.00 $21,812,821.72 $23,500,000.00 $ 0.00 $ 0.00











September 2001ÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 0.00 23,367,005.55 0.00 0.00

October 2001 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 0.00 21,490,584.64 0.00 0.00

November 2001 ÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 0.00 19,633,103.00 0.00 0.00

December 2001 ÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 0.00 17,794,374.20 0.00 0.00

January 2002 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 0.00 15,974,213.66 0.00 0.00

February 2002 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 0.00 14,172,438.59 0.00 0.00

March 2002 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 0.00 12,388,867.99 0.00 0.00

April 2002ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 0.00 10,623,322.63 0.00 0.00

May 2002 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 0.00 8,875,625.02 0.00 0.00

June 2002 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 0.00 7,145,599.44 0.00 0.00

July 2002 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 0.00 5,433,071.86 0.00 0.00

August 2002 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 0.00 3,737,869.95 0.00 0.00

September 2002ÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 0.00 2,059,823.09 0.00 0.00

October 2002 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 0.00 398,762.30 0.00 0.00

November 2002 andthereafter ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 0.00 0.00 0.00 0.00

S-14

Class 204-SD Class 204-FE Class 204-SE Class 204-FG Class 204-SGTargeted Targeted Targeted Targeted Targeted


Initial Balance ÏÏÏÏÏÏÏÏÏÏÏÏÏ $133,131.00 $21,122,724.00 $12,321,589.00 $12,631,578.00 $7,368,422.00

November 1992 ÏÏÏÏÏÏÏÏÏÏÏÏ 133,131.00 21,122,724.00 12,321,589.00 12,631,578.00 7,368,422.00

December 1992 ÏÏÏÏÏÏÏÏÏÏÏÏ 133,131.00 21,122,724.00 12,321,589.00 12,631,578.00 7,368,422.00

January 1993 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 133,131.00 21,122,724.00 12,321,589.00 12,631,578.00 7,368,422.00

February 1993 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 133,131.00 21,122,724.00 12,321,589.00 12,631,578.00 7,368,422.00

March 1993 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 133,131.00 21,122,724.00 12,321,589.00 12,631,578.00 7,368,422.00

April 1993ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 133,131.00 21,122,724.00 12,321,589.00 12,631,578.00 7,368,422.00

May 1993 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 133,131.00 21,122,724.00 12,321,589.00 12,631,578.00 7,368,422.00

June 1993 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 133,131.00 21,122,724.00 12,321,589.00 12,631,578.00 7,368,422.00

July 1993 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 133,131.00 21,122,724.00 12,321,589.00 12,631,578.00 7,368,422.00

August 1993 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 133,131.00 21,122,724.00 12,321,589.00 12,631,578.00 7,368,422.00

September 1993ÏÏÏÏÏÏÏÏÏÏÏÏ 133,131.00 21,122,724.00 12,321,589.00 12,631,578.00 7,368,422.00

October 1993 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 133,131.00 21,122,724.00 12,321,589.00 12,631,578.00 7,368,422.00




































S-15



October 1996 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $111,571.72 $21,122,724.00 $12,321,589.00 $12,631,578.00 $7,368,422.00




































October 1999 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 665.14 21,122,724.00 12,321,589.00 12,631,578.00 7,368,422.00

November 1999 ÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 21,122,724.00 12,321,589.00 12,631,578.00 7,368,422.00

December 1999 ÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 21,122,724.00 12,321,589.00 12,631,578.00 7,368,422.00

January 2000 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 21,122,724.00 12,321,589.00 12,631,578.00 7,368,422.00

February 2000 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 21,122,724.00 12,321,589.00 12,631,578.00 7,368,422.00

March 2000 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 21,122,724.00 12,321,589.00 12,631,578.00 7,368,422.00

April 2000ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 21,122,724.00 12,321,589.00 12,631,578.00 7,368,422.00

May 2000 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 21,122,724.00 12,321,589.00 12,631,578.00 7,368,422.00

June 2000 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 21,122,724.00 12,321,589.00 12,631,578.00 7,368,422.00

July 2000 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 21,122,724.00 12,321,589.00 12,631,578.00 7,368,422.00

August 2000 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 21,122,724.00 12,321,589.00 12,631,578.00 7,368,422.00

September 2000ÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 21,122,724.00 12,321,589.00 12,631,578.00 7,368,422.00

S-16



October 2000 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 0.00 $21,122,724.00 $12,321,589.00 $12,631,578.00 $7,368,422.00




































October 2003 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 21,122,724.00 12,321,589.00 1,093,674.51 637,976.93

November 2003 ÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 21,122,724.00 12,321,589.00 174,798.40 101,965.75











S-17



October 2004 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 0.00 $11,786,447.35 $ 6,875,427.62 $ 0.00 $ 0.00












October 2005 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 2,563,801.34 1,495,550.78 0.00 0.00


December 2005 ÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 1,134,324.46 661,689.27 0.00 0.00

January 2006 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 430,554.54 251,156.82 0.00 0.00

February 2006 andthereafter ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.00 0.00 0.00 0.00 0.00

S-18

Characteristics of the Class 204-R and Class 204-RL REMIC CertiÑcates

The Class 204-R and Class 204-RL REMIC CertiÑcates will not have principal balances and willnot bear interest. The Holder of the Class 204-R REMIC CertiÑcate will be entitled to receive theproceeds of the remaining assets of the Trust, if any, after the principal balances of all Classes ofREMIC CertiÑcates have been reduced to zero, and the Holder of the Class 204-RL REMICCertiÑcate will be entitled to receive the proceeds of the remaining assets of the Lower Tier REMIC, ifany, after the principal balances of the Lower Tier Interests have been reduced to zero. It is notanticipated that there will be any material assets remaining in either such circumstance.

The Class 204-R and Class 204-RL REMIC CertiÑcates will be subject to certain transferrestrictions. No transfer of record or beneÑcial ownership in the Class 204-R or Class 204-RL REMICCertiÑcate (whether pursuant to a purchase, a default under a secured lending agreement orotherwise) will be allowed to a ""disqualiÑed organization,'' which term includes governmental entities(other than certain taxable instrumentalities) and tax-exempt entities not subject to tax on unrelatedbusiness income. Any transferee of the Class 204-R or Class 204-RL REMIC CertiÑcate must executeand deliver (i) an aÇdavit stating that neither the transferee nor any person for whose account suchtransferee is acquiring the Class 204-R or Class 204-RL REMIC CertiÑcate is a disqualiÑedorganization, as provided in the REMIC Prospectus, and (ii) an Internal Revenue Service Form W-9on which the transferee provides its taxpayer identiÑcation number. In addition, a pass-throughentity (including a nominee) that holds the Class 204-R or Class 204-RL REMIC CertiÑcate may besubject to additional taxes if a disqualiÑed organization is a record holder therein. The Revenue Act of1992 (H.R. 11), approved by the House of Representatives on October 6, 1992 and the Senate onOctober 8, 1992 (the ""Conference Bill''), provides that each partner in a ""large partnership'' holding aresidual interest in a REMIC shall be treated as a disqualiÑed organization for purposes of the taximposed on a pass-through entity. A ""large partnership'' would be deÑned as any partnership in whichthere are at least 250 partners in a taxable year. The Conference Bill also would disallow 70% of anylarge partnership's miscellaneous itemized deductions, including deductions for servicing and guarantyfees and any expenses of the REMIC, although the remaining deductions would not be subject to the2% Öoor applicable to individual partners. These provisions are proposed to be eÅective for taxableyears ending on or after December 31, 1993. No prediction can be made regarding whether theConference Bill will be enacted or, if so, what the ultimate eÅective date will be. See ""Description ofthe REMIC CertiÑcatesÌAdditional Characteristics of Residual CertiÑcates'' and ""Certain FederalIncome Tax ConsequencesÌSales of CertiÑcatesÌResidual CertiÑcates Transferred to or Held byDisqualiÑed Organizations'' in the REMIC Prospectus.

In addition, no transfer of record or beneÑcial ownership in the Class 204-R or Class 204-RLREMIC CertiÑcate (whether pursuant to a purchase, a default under a secured lending agreement orotherwise) will be allowed to any person that is not a ""U.S. Person'' without the written consent ofFannie Mae. The term ""U.S. Person'' means a citizen or resident of the United States, a corporation,partnership or other entity created or organized in or under the laws of the United States or anypolitical subdivision thereof, or an estate or trust that is subject to U.S. federal income tax regardlessof the source of its income.

Under the Proposed Regulations(as deÑned below under the heading ""Certain Additional FederalIncome Tax Consequences''), a transfer of a ""noneconomic residual interest'' to a U.S. Person wouldbe disregarded for all federal tax purposes unless no signiÑcant purpose of the transfer was to impedethe assessment or collection of tax. The Class 204-R or Class 204-RL REMIC CertiÑcate would betreated as constituting a noneconomic residual interest unless, at the time of the transfer, (i) thepresent value of the expected future distributions on the Class 204-R or Class 204-RL REMICCertiÑcate is no less than the product of the present value of the ""anticipated excess inclusions'' withrespect to such CertiÑcate and the highest rate of tax speciÑed in section 11(b)(1) of the Code for theyear in which the transfer occurs, and (ii) the transferor reasonably expects that the transferee willreceive distributions from the Trust, in the case of a transfer of the Class 204-R REMIC CertiÑcate, orfrom the Lower Tier REMIC, in the case of a transfer of the Class 204-RL REMIC CertiÑcate, in an

S-19

amount suÇcient to satisfy the liability for income tax on any ""excess inclusions'' at or after the timewhen such liability accrues. Anticipated excess inclusions are the excess inclusions that areanticipated to be allocated to each calendar quarter (or portion thereof) following the transfer of theClass 204-R or Class 204-RL REMIC CertiÑcate, determined as of the date such CertiÑcate istransferred and based on events that have occurred as of that date and on the PrepaymentAssumption. See ""Certain Federal Income Tax ConsequencesÌTaxation of BeneÑcial Owners ofRegular CertiÑcatesÌOriginal Issue Discount'' and ""ÌTaxation of BeneÑcial Owners of ResidualCertiÑcatesÌExcess Inclusions'' in the REMIC Prospectus. Each of the Class 204-R andClass 204-RL REMIC CertiÑcates would constitute a noneconomic residual interest under theProposed Regulations. Each transferee of the Class 204-R or Class 204-RL REMIC CertiÑcate mustalso aÇrm in the aÇdavit relating to disqualiÑed organizations discussed above that no purpose of thetransfer is to avoid or impede the assessment or collection of tax.

The Holder of the Class 204-R REMIC CertiÑcate will be considered to be the holder of theresidual interest in the REMIC constituted by the Trust, and the Holder of the Class 204-RL REMICCertiÑcate will be considered to be the holder of the residual interest in the REMIC constituted by theLower Tier REMIC. See ""Certain Federal Income Tax Consequences'' in the REMIC Prospectus.Pursuant to the Trust Agreement, Fannie Mae will be obligated to provide to such Holders (i) suchinformation as is necessary to enable them to prepare their federal income tax returns and (ii) anyreports regarding the REMIC CertiÑcates that may be required under the Code.

Yield Considerations

General. There can be no assurance that the Mortgage Loans will have the characteristicsassumed herein or will prepay at any of the rates assumed herein or at any other particular rate, thatthe pre-tax yields on the REMIC CertiÑcates will correspond to any of the pre-tax yields shown hereinor that the aggregate purchase prices of the REMIC CertiÑcates will be as assumed. In addition, therecan be no assurance that the 10-Year Treasury Index or LIBOR will correspond with the levels shownherein. Because the rate of distributions of principal of the REMIC CertiÑcates will be directly relatedto the rate of principal payments (including prepayments) of the Mortgage Loans, which will likelyinclude Mortgage Loans that have remaining terms to maturity shorter or longer than those assumedand interest rates higher or lower than those assumed, the distributions on the REMIC CertiÑcatesare likely to diÅer from those assumed, even if all the Mortgage Loans prepay at the indicatedconstant percentages of PSA. In addition, it is not likely that the Mortgage Loans will prepay at aconstant rate until maturity, that all of such Mortgage Loans will prepay at the same rate or that thelevel of the 10-Year Treasury Index or LIBOR will remain constant. The timing of changes in the rateof prepayments or the level of the 10-Year Treasury Index or LIBOR may signiÑcantly aÅect theactual yield to maturity to investors, even if the average rate of principal prepayments or the averagelevel of the 10-Year Treasury Index or LIBOR is consistent with the expectations of investors. Ingeneral, the earlier the payment of principal of the Mortgage Loans or change in the level of the10-Year Treasury Index or LIBOR, the greater the eÅect on an investor's yield to maturity. As aresult, the eÅect on an investor's yield of principal prepayments or the level of the 10-Year TreasuryIndex or LIBOR occurring at a rate or level higher (or lower) than the rate or level anticipated by theinvestor during the period immediately following the issuance of the REMIC CertiÑcates will not beoÅset by a subsequent like reduction (or increase) in the rate of principal prepayments or level of the10-Year Treasury Index or LIBOR, as the case may be. Investors must make their own decisions as tothe appropriate assumptions, including prepayment assumptions, to be used in deciding whether topurchase the REMIC CertiÑcates.

The tables below indicate the sensitivity of the pre-tax corporate bond equivalent yields tomaturity of certain Classes of REMIC CertiÑcates to various constant prepayment rates and tochanges in the 10-Year Treasury Index or LIBOR. The yields set forth in the tables were calculated bydetermining the monthly discount rates that, when applied to the assumed stream of cash Öows to bepaid on the applicable Classes of REMIC CertiÑcates, would cause the discounted present value of

S-20

such assumed stream of cash Öows to equal the assumed aggregate purchase prices of such Classes ofREMIC CertiÑcates and converting such monthly rates to corporate bond equivalent rates. Suchcalculations do not take into account variations that may occur in the interest rates at which investorsmay be able to reinvest funds received by them as distributions on the REMIC CertiÑcates andconsequently do not purport to reÖect the return on any investment in the REMIC CertiÑcates whensuch reinvestment rates are considered.

The Class 204-S, Class 204-SA, Class 204-SB, Class 204-SC and Class 204-SD REMIC CertiÑ-cates. The yields to investors in the Class 204-S, Class 204-SA, Class 204-SB,Class 204-SC and Class 204-SD REMIC CertiÑcates will be highly sensitive to the level ofLIBOR, and to the rate of principal payments (including prepayments) of the MortgageLoans, which generally can be prepaid at any time. As indicated in the tables below, a highlevel of LIBOR will have a material negative eÅect on the yields to investors in theClass 204-S, Class 204-SA, Class 204-SB, Class 204-SC and Class 204-SD REMIC CertiÑ-cates. It is possible that, under certain prepayment or LIBOR scenarios, investors in theClass 204-SA, Class 204-SB, Class 204-SC and Class 204-SD REMIC CertiÑcates wouldnot fully recoup their initial investments.

Changes in LIBOR may not correlate with changes in prevailing mortgage interest rates. It ispossible that lower prevailing mortgage interest rates, which might be expected to result in fasterprepayments, could occur concurrently with an increased level of LIBOR.

The information set forth in the following tables has been prepared on the basis of the PricingAssumptions and on the assumptions that (i) on the LIBOR Determination Date in November 1992in the case of the Class 204-S, Class 204-SC and Class 204-SD REMIC CertiÑcates and in October1993 in the case of the Class 204-SA and Class 204-SB REMIC CertiÑcates, and on each LIBORDetermination Date thereafter, LIBOR will be at the level shown and (ii) the aggregate purchaseprices of the Class 204-S, Class 204-SA, Class 204-SB, Class 204-SC and Class 204-SD REMICCertiÑcates (including accrued interest) are $27,889,467, $583,817, $80,398,877, $1,896,595 and$2,006,945, respectively.

Sensitivity of the Class 204-S REMIC CertiÑcates to Prepayments and LIBOR(Pre-Tax Yields to Maturity)

PSA Prepayment Assumption

LIBOR 50% 100% 185% 350% 500%

1.00% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 15.6% 15.7% 15.9% 30.5% 41.8%3.00% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 11.6% 11.7% 12.0% 26.7% 38.0%5.00% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 7.8% 7.9% 8.2% 22.9% 34.2%7.00% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4.1% 4.2% 4.5% 19.1% 30.4%8.75% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1.0% 1.1% 1.4% 15.9% 27.1%

Sensitivity of the Class 204-SA REMIC CertiÑcates to Prepayments and LIBOR(Pre-Tax Yields to Maturity)


LIBOR 50% 100% 185% 350% 500%

1.00% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 264.6% 171.7% 50.0% (88.3)% *3.00% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 253.3% 168.2% 50.0% (88.3)% *5.00% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 241.1% 164.5% 50.0% (88.3)% *7.00% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 228.0% 160.8% 50.0% (88.3)% *9.25% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 211.7% 156.5% 50.0% (88.3)% *

* The pre-tax yield to maturity will be less than (99.9)%.

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Sensitivity of the Class 204-SB REMIC CertiÑcates to Prepayments and LIBOR(Pre-Tax Yields to Maturity)


LIBOR 50% 100% 185% 350% 500%

1.00% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 45.3% 42.7% 38.2% 29.0% 20.3%3.00% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 36.2% 33.6% 29.0% 19.7% 11.0%5.00% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 25.7% 23.1% 18.5% 9.1% 0.3%7.00% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 13.1% 10.4% 5.7% (3.9)% (13.0)%9.25% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ * * * * *

* The pre-tax yield to maturity will be less than (99.9)%.

Sensitivity of the Class 204-SC REMIC CertiÑcates to Prepayments and LIBOR(Pre-Tax Yields to Maturity)


LIBOR 50% 100% 185% 350% 500%

1.00% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 75.3% 64.1% 43.9% 43.9% 36.6%3.00% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 50.9% 38.5% 17.0% 17.0% 8.5%5.00% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 26.6% 12.3% (10.8)% (10.8)% (20.7)%7.00% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.5% (16.5)% (41.3)% (41.3)% (52.5)%9.05% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (38.4)% (57.2)% (80.8)% (80.8)% (92.0)%

Sensitivity of the Class 204-SD REMIC CertiÑcates to Prepayments and LIBOR(Pre-Tax Yields to Maturity)


LIBOR 50% 100% 185% 350% 500%

1.00% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 71.3% 70.6% 67.0% 66.0% 58.8%3.00% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 52.3% 50.9% 45.6% 44.2% 35.3%5.00% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 33.6% 30.9% 23.1% 21.1% 10.1%7.00% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 13.9% 8.8% (2.7)% (5.6)% (19.0)%9.05% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (19.2)% (28.4)% (43.6)% (47.3)% (61.5)%

The Class 204-SE and Class 204-SG REMIC CertiÑcates. The yields to investors in theClass 204-SE and Class 204-SG REMIC CertiÑcates will be highly sensitive to the level ofthe 10-Year Treasury Index. As indicated in the tables below, a high level of the 10-YearTreasury Index will have a material negative eÅect on the yields to investors in theClass 204-SE and Class 204-SG REMIC CertiÑcates. In addition, the yields on theClass 204-SE and Class 204-SG REMIC CertiÑcates will be sensitive to the rate ofprincipal payments (including prepayments) of the Mortgage Loans, which generally canbe prepaid at any time.

Changes in the 10-Year Treasury Index may not correlate with changes in prevailing mortgageinterest rates. It is possible that lower prevailing mortgage interest rates, which might be expected toresult in faster prepayments, could occur concurrently with increased levels of the 10-Year TreasuryIndex.

The information set forth in the following tables has been prepared on the basis of the PricingAssumptions and on the assumptions that (i) the interest rates applicable to the Class 204-SE andClass 204-SG REMIC CertiÑcates for each Interest Accrual Period subsequent to their Ñrst InterestAccrual Period will be based on the level of the 10-Year Treasury Index shown and (ii) the aggregatepurchase prices of the Class 204-SE and Class 204-SG REMIC CertiÑcates (including accruedinterest) are $8,266,407 and $4,943,385, respectively.

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Sensitivity of the Class 204-SE REMIC CertiÑcatesto Prepayments and the 10-Year Treasury Index

(Pre-Tax Yields to Maturity)

PSA Prepayment Assumption10-YearTreasury Index 50% 100% 185% 350% 500%

4.27% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 15.3% 15.6% 16.5% 16.0% 17.0%6.27% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 10.3% 10.7% 11.7% 11.2% 12.2%8.27% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5.6% 6.0% 7.1% 6.5% 7.7%

10.00% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1.8% 2.2% 3.4% 2.7% 3.9%

Sensitivity of the Class 204-SG REMIC CertiÑcatesto Prepayments and the 10-Year Treasury Index

(Pre-Tax Yields to Maturity)

PSA Prepayment Assumption10-YearTreasury Index 50% 100% 185% 350% 500%

4.27% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 15.4% 15.8% 16.9% 16.9% 18.5%6.27% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 10.4% 10.9% 12.2% 12.2% 13.8%8.27% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5.7% 6.3% 7.7% 7.7% 9.3%

10.00% ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1.9% 2.5% 3.9% 3.9% 5.5%

Final Distribution Dates

The Final Distribution Date for REMIC CertiÑcates of a particular Class is the date by which theprincipal thereof is required to be fully paid and is speciÑed on the cover page. The Final DistributionDates of the respective Classes of REMIC CertiÑcates have been determined so that distributions onthe underlying MBS CertiÑcates will be suÇcient to retire each such Class on or before its FinalDistribution Date without the necessity of any call on Fannie Mae under its guaranty of the REMICCertiÑcates. However, because (i) some prepayments of the Mortgage Loans are likely, and(ii) certain of the Mortgage Loans have terms to maturity that are shorter than, and bear interest atrates that are lower than, the term to maturity and interest rate assumed in calculating the FinalDistribution Dates, the actual Ñnal payment of any Class of REMIC CertiÑcates likely will occurearlier, and could occur signiÑcantly earlier, than its Final Distribution Date. However, there can beno assurance that the Ñnal distribution of principal of any or all Classes of the REMIC CertiÑcates willbe earlier than the Final Distribution Date for such Class.

Reinvestment Risk

Because the Mortgage Loans underlying the MBS CertiÑcates may be prepaid at any time, it isnot possible to predict the rate at which distributions of principal of the REMIC CertiÑcates will bereceived. Accordingly, since prevailing interest rates are subject to Öuctuation, there can be noassurance that investors in the REMIC CertiÑcates will be able to reinvest the distributions thereon atyields equaling or exceeding the yields on the REMIC CertiÑcates. It is possible that yields on anysuch reinvestments will be lower, and may be signiÑcantly lower, than the yields on the REMICCertiÑcates. Prospective investors in the REMIC CertiÑcates should carefully consider the relatedreinvestment risks in light of other investments that may be available to such investors. See""Prepayment Considerations and Risks'' herein.

Weighted Average Lives of the REMIC CertiÑcates

The weighted average life of a REMIC CertiÑcate is determined by (a) multiplying the amount ofthe reduction, if any, of the principal balance of such REMIC CertiÑcate from one Distribution Dateto the next Distribution Date by the number of years from the date of issuance to the second such

S-23

Distribution Date, (b) summing the results and (c) dividing the sum by the aggregate amount of thereductions in principal balance of such REMIC CertiÑcate referred to in clause (a).

The weighted average lives of the REMIC CertiÑcates will be inÖuenced by, among other factors,the rate at which principal is paid on the Mortgage Loans. In general, the weighted average lives ofthe REMIC CertiÑcates will be shortened if the level of prepayments of principal of the MortgageLoans increases. However, the weighted average lives will depend upon a variety of other factors,including the timing of changes in such rate of principal payments, the priority sequence ofdistributions of principal of the REMIC CertiÑcates and the distribution of principal of certainClasses of the REMIC CertiÑcates in accordance with the Principal Balance Schedules herein. Theinteraction of such factors may have diÅerent eÅects on the various Classes of REMIC CertiÑcatesand the eÅects on any Class may vary at diÅerent times during the life of such Class. Accordingly, noassurance can be given as to the weighted average life of any Class of REMIC CertiÑcates. Further, tothe extent the prices of the REMIC CertiÑcates represent discounts or premiums to their respectiveoriginal principal balances, variability in the weighted average lives of such Classes of REMICCertiÑcates could result in variability in the related yields to maturity. For an example of how theweighted average lives of the REMIC CertiÑcates are aÅected by the foregoing factors at variousconstant prepayment rates, see the Decrement Tables below.

If the amount distributable as principal of the REMIC CertiÑcates on any Distribution Dateexceeds (or is less than) the amount required to reduce the principal balances of certain Classes ofREMIC CertiÑcates with higher principal payment priorities to their respective scheduled balances asset forth in the Principal Balance Schedules, such excess principal (or no principal) will be distributedon the remaining Classes of REMIC CertiÑcates on such Distribution Date. Accordingly, the rate ofprincipal payments on the Mortgage Loans is expected to have a greater eÅect on the weighted averagelives of the Class 204-F and Class 204-S REMIC CertiÑcates than on the weighted average lives of theTargeted Principal REMIC CertiÑcates. See ""Distributions of Principal'' herein.

S-24

Decrement Tables

The following tables indicate the percentages of the original principal balances of the speciÑedClasses of REMIC CertiÑcates that would be outstanding after each of the dates shown at variousconstant percentages of PSA and the corresponding weighted average lives of such Classes of REMICCertiÑcates. The tables have been prepared on the basis of the Pricing Assumptions, except that withrespect to the information set forth under 0% PSA, it has been assumed that each Mortgage Loanunderlying the MBS CertiÑcates bears an interest rate of 10.50% per annum and has an original andremaining term to maturity of 360 months. It is not likely that (i) all of the underlying MortgageLoans will have the interest rates, CAGEs or remaining terms to maturity assumed or (ii) theunderlying Mortgage Loans will prepay at a constant level of PSA. In addition, the diverse remainingterms to maturity of the Mortgage Loans (which will include recently originated Mortgage Loans)could produce slower or faster principal distributions than indicated in the tables at the variousconstant percentages of PSA speciÑed, even if the distributions of the weighted average remainingterms to maturity and the weighted average CAGEs of the Mortgage Loans are identical to thedistributions of the remaining terms to maturity and CAGEs speciÑed in the Pricing Assumptions.

Percent of Original Principal Balances Outstanding

Class 204-A and Class 204-FC Class 204-SC Class 204-SD

PSA Prepayment PSA Prepayment PSA PrepaymentAssumption Assumption Assumption

Date 0% 100% 185% 350% 500% 0% 100% 185% 350% 500% 0% 100% 185% 350% 500%

Initial PercentÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100October 1993ÏÏÏÏÏÏÏÏÏÏ 99 94 90 90 90 98 89 81 81 81 100 100 100 100 100October 1994ÏÏÏÏÏÏÏÏÏÏ 98 84 74 74 72 96 71 51 51 47 100 100 100 100 100October 1995ÏÏÏÏÏÏÏÏÏÏ 97 73 56 56 36 94 49 17 17 0 100 100 100 100 77October 1996ÏÏÏÏÏÏÏÏÏÏ 96 62 39 36 10 92 29 0 0 0 100 100 84 77 22October 1997ÏÏÏÏÏÏÏÏÏÏ 94 52 25 18 0 89 10 0 0 0 100 100 53 38 0October 1998ÏÏÏÏÏÏÏÏÏÏ 93 43 12 4 0 87 0 0 0 0 100 91 25 8 0October 1999ÏÏÏÏÏÏÏÏÏÏ 91 34 * 0 0 83 0 0 0 0 100 72 * 0 0October 2000ÏÏÏÏÏÏÏÏÏÏ 89 25 0 0 0 80 0 0 0 0 100 54 0 0 0October 2001ÏÏÏÏÏÏÏÏÏÏ 87 17 0 0 0 76 0 0 0 0 100 36 0 0 0October 2002ÏÏÏÏÏÏÏÏÏÏ 85 9 0 0 0 72 0 0 0 0 100 20 0 0 0October 2003ÏÏÏÏÏÏÏÏÏÏ 82 2 0 0 0 67 0 0 0 0 100 5 0 0 0October 2004ÏÏÏÏÏÏÏÏÏÏ 79 0 0 0 0 61 0 0 0 0 100 0 0 0 0October 2005ÏÏÏÏÏÏÏÏÏÏ 76 0 0 0 0 55 0 0 0 0 100 0 0 0 0October 2006ÏÏÏÏÏÏÏÏÏÏ 73 0 0 0 0 49 0 0 0 0 100 0 0 0 0October 2007ÏÏÏÏÏÏÏÏÏÏ 69 0 0 0 0 41 0 0 0 0 100 0 0 0 0October 2008ÏÏÏÏÏÏÏÏÏÏ 64 0 0 0 0 33 0 0 0 0 100 0 0 0 0October 2009ÏÏÏÏÏÏÏÏÏÏ 60 0 0 0 0 24 0 0 0 0 100 0 0 0 0October 2010ÏÏÏÏÏÏÏÏÏÏ 54 0 0 0 0 14 0 0 0 0 100 0 0 0 0October 2011ÏÏÏÏÏÏÏÏÏÏ 48 0 0 0 0 3 0 0 0 0 100 0 0 0 0October 2012ÏÏÏÏÏÏÏÏÏÏ 42 0 0 0 0 0 0 0 0 0 89 0 0 0 0October 2013ÏÏÏÏÏÏÏÏÏÏ 34 0 0 0 0 0 0 0 0 0 73 0 0 0 0October 2014ÏÏÏÏÏÏÏÏÏÏ 26 0 0 0 0 0 0 0 0 0 56 0 0 0 0October 2015ÏÏÏÏÏÏÏÏÏÏ 17 0 0 0 0 0 0 0 0 0 37 0 0 0 0October 2016ÏÏÏÏÏÏÏÏÏÏ 7 0 0 0 0 0 0 0 0 0 15 0 0 0 0October 2017ÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0October 2018ÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0October 2019ÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0October 2020ÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0October 2021ÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0October 2022ÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Weighted Average

Life (years)** ÏÏÏÏÏÏ 17.1 5.5 3.5 3.3 2.6 12.7 3.0 2.0 2.0 1.8 22.2 8.3 5.2 4.8 3.5

* Indicates an amount above zero and less than 0.5% of the original principal balance is outstanding.** The weighted average life of a REMIC CertiÑcate is determined as speciÑed under ""Weighted Average Lives of the REMIC CertiÑcates''

herein.

S-25

Class 204-FG Class 204-FEClass 204-B Class 204-C and Class 204-SG and Class 204-SE

PSA Prepayment PSA Prepayment PSA Prepayment PSA PrepaymentAssumption Assumption Assumption Assumption

Date 0% 100% 185% 350% 500% 0% 100% 185% 350% 500% 0% 100% 185% 350% 500% 0% 100% 185% 350% 500%

Initial PercentÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100October 1993ÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100October 1994ÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100October 1995ÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100October 1996ÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100October 1997ÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 60 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100October 1998ÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 0 100 100 100 100 83 100 100 100 100 100 100 100 100 100 100October 1999ÏÏÏÏÏÏÏÏÏÏ 100 100 100 58 0 100 100 100 100 0 100 100 100 100 85 100 100 100 100 100October 2000ÏÏÏÏÏÏÏÏÏÏ 100 100 45 10 0 100 100 100 100 0 100 100 100 100 7 100 100 100 100 100October 2001ÏÏÏÏÏÏÏÏÏÏ 100 100 0 0 0 100 100 91 42 0 100 100 100 100 0 100 100 100 100 72October 2002ÏÏÏÏÏÏÏÏÏÏ 100 100 0 0 0 100 100 2 0 0 100 100 100 79 0 100 100 100 100 49October 2003ÏÏÏÏÏÏÏÏÏÏ 100 100 0 0 0 100 100 0 0 0 100 100 9 23 0 100 100 100 100 34October 2004ÏÏÏÏÏÏÏÏÏÏ 100 75 0 0 0 100 100 0 0 0 100 100 0 0 0 100 100 56 88 23October 2005ÏÏÏÏÏÏÏÏÏÏ 100 39 0 0 0 100 100 0 0 0 100 100 0 0 0 100 100 12 68 16October 2006ÏÏÏÏÏÏÏÏÏÏ 100 5 0 0 0 100 100 0 0 0 100 100 0 0 0 100 100 0 52 11October 2007ÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 100 45 0 0 0 100 100 0 0 0 100 100 0 40 7October 2008ÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 100 0 0 0 0 100 80 0 0 0 100 100 0 30 5October 2009ÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 100 0 0 0 0 100 11 0 0 0 100 100 0 23 3October 2010ÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 100 0 0 0 0 100 0 0 0 0 100 67 0 17 2October 2011ÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 100 0 0 0 0 100 0 0 0 0 100 30 0 13 1October 2012ÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 100 0 0 0 0 100 0 0 0 0 100 0 0 10 1October 2013ÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 100 0 0 0 0 100 0 0 0 0 100 0 0 7 1October 2014ÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 100 0 0 0 0 100 0 0 0 0 100 0 0 5 *October 2015ÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 100 0 0 0 0 100 0 0 0 0 100 0 0 4 *October 2016ÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 100 0 0 0 0 100 0 0 0 0 100 0 0 3 *October 2017ÏÏÏÏÏÏÏÏÏÏ 78 0 0 0 0 100 0 0 0 0 100 0 0 0 0 100 0 0 2 *October 2018ÏÏÏÏÏÏÏÏÏÏ 9 0 0 0 0 100 0 0 0 0 100 0 0 0 0 100 0 0 1 *October 2019ÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 57 0 0 0 0 100 0 0 1 *October 2020ÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 13 0 0 * *October 2021ÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 * *October 2022ÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Weighted Average

Life (years)** ÏÏÏÏÏÏ 25.4 12.7 8.0 7.2 5.2 26.5 15.0 9.5 8.9 6.3 27.1 16.5 10.6 10.5 7.5 27.7 18.5 12.2 15.2 10.8

Class 204-F and Class 204-S Class 204-FA Class 204-SA‰ Class 204-SB‰

PSA Prepayment PSA Prepayment PSA Prepayment PSA PrepaymentAssumption Assumption Assumption Assumption

Date 0% 100% 185% 350% 500% 0% 100% 185% 350% 500% 0% 100% 185% 350% 500% 0% 100% 185% 350% 500%

Initial PercentÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100October 1993ÏÏÏÏÏÏÏÏÏÏ 100 100 100 77 56 99 97 94 90 86 89 24 0 0 0 100 100 99 94 90October 1994ÏÏÏÏÏÏÏÏÏÏ 100 100 100 43 0 99 91 86 75 66 76 0 0 0 0 100 96 90 78 69October 1995ÏÏÏÏÏÏÏÏÏÏ 100 100 100 11 0 98 85 75 59 46 62 0 0 0 0 100 89 79 62 48October 1996ÏÏÏÏÏÏÏÏÏÏ 100 100 100 0 0 98 79 66 46 32 47 0 0 0 0 100 83 69 48 33October 1997ÏÏÏÏÏÏÏÏÏÏ 100 100 100 0 0 97 74 58 36 22 30 0 0 0 0 100 77 61 38 23October 1998ÏÏÏÏÏÏÏÏÏÏ 100 100 100 0 0 96 68 51 28 15 11 0 0 0 0 100 72 54 29 16October 1999ÏÏÏÏÏÏÏÏÏÏ 100 100 100 0 0 95 63 45 22 10 0 0 0 0 0 100 66 47 23 11October 2000ÏÏÏÏÏÏÏÏÏÏ 100 100 100 0 0 94 59 39 17 7 0 0 0 0 0 98 61 41 18 8October 2001ÏÏÏÏÏÏÏÏÏÏ 100 100 100 0 0 93 54 34 13 5 0 0 0 0 0 97 57 36 14 5October 2002ÏÏÏÏÏÏÏÏÏÏ 100 100 100 0 0 92 50 30 10 3 0 0 0 0 0 96 52 31 11 4October 2003ÏÏÏÏÏÏÏÏÏÏ 100 100 100 0 0 90 46 26 8 2 0 0 0 0 0 94 48 27 8 2October 2004ÏÏÏÏÏÏÏÏÏÏ 100 100 100 0 0 89 42 23 6 2 0 0 0 0 0 93 44 24 6 2October 2005ÏÏÏÏÏÏÏÏÏÏ 100 100 100 0 0 87 39 20 5 1 0 0 0 0 0 91 41 21 5 1October 2006ÏÏÏÏÏÏÏÏÏÏ 100 100 90 0 0 85 35 17 4 1 0 0 0 0 0 89 37 18 4 1October 2007ÏÏÏÏÏÏÏÏÏÏ 100 100 78 0 0 83 32 15 3 1 0 0 0 0 0 87 34 15 3 1October 2008ÏÏÏÏÏÏÏÏÏÏ 100 100 66 0 0 80 29 12 2 * 0 0 0 0 0 84 30 13 2 *October 2009ÏÏÏÏÏÏÏÏÏÏ 100 100 57 0 0 78 26 11 2 * 0 0 0 0 0 81 27 11 2 *October 2010ÏÏÏÏÏÏÏÏÏÏ 100 100 48 0 0 75 23 9 1 * 0 0 0 0 0 78 25 9 1 *October 2011ÏÏÏÏÏÏÏÏÏÏ 100 100 40 0 0 71 21 8 1 * 0 0 0 0 0 75 22 8 1 *October 2012ÏÏÏÏÏÏÏÏÏÏ 100 98 34 0 0 68 18 6 1 * 0 0 0 0 0 71 19 7 1 *October 2013ÏÏÏÏÏÏÏÏÏÏ 100 85 28 0 0 64 16 5 * * 0 0 0 0 0 67 17 5 1 *October 2014ÏÏÏÏÏÏÏÏÏÏ 100 74 23 0 0 59 14 4 * * 0 0 0 0 0 62 14 4 * *October 2015ÏÏÏÏÏÏÏÏÏÏ 100 62 18 0 0 54 12 3 * * 0 0 0 0 0 57 12 4 * *October 2016ÏÏÏÏÏÏÏÏÏÏ 100 51 14 0 0 49 10 3 * * 0 0 0 0 0 51 10 3 * *October 2017ÏÏÏÏÏÏÏÏÏÏ 100 41 11 0 0 43 8 2 * * 0 0 0 0 0 45 8 2 * *October 2018ÏÏÏÏÏÏÏÏÏÏ 100 31 8 0 0 36 6 1 * * 0 0 0 0 0 37 6 1 * *October 2019ÏÏÏÏÏÏÏÏÏÏ 100 21 5 0 0 28 4 1 * * 0 0 0 0 0 29 4 1 * *October 2020ÏÏÏÏÏÏÏÏÏÏ 100 13 3 0 0 20 2 1 * * 0 0 0 0 0 21 2 1 * *October 2021ÏÏÏÏÏÏÏÏÏÏ 55 5 1 0 0 10 1 * * * 0 0 0 0 0 11 1 * * *October 2022ÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Weighted Average

Life (years)** ÏÏÏÏÏÏ 29.1 24.3 18.8 1.8 1.1 21.8 11.6 8.0 4.8 3.5 3.7 0.7 0.5 0.3 0.2 22.7 12.1 8.3 5.0 3.7

* Indicates an amount above zero and less than 0.5% of the original principal balance is outstanding.** The weighted average life of a REMIC CertiÑcate is determined as speciÑed under ""Weighted Average Lives of the REMIC CertiÑcates''

herein.‰ In the case of the Class 204-SA and Class 204-SB REMIC CertiÑcates, the Decrement Table indicates the percentage of the respective

original notional principal balances outstanding.

S-26

CERTAIN ADDITIONAL FEDERAL INCOME TAX CONSEQUENCES

The following tax discussion, when read in conjunction with the discussion of ""Certain FederalIncome Tax Consequences'' in the REMIC Prospectus, describes the current federal income taxtreatment of investors in the REMIC CertiÑcates. These two tax discussions do not purport to dealwith all federal tax consequences applicable to all categories of investors, some of which may be subjectto special rules. Investors should consult their own tax advisors in determining the federal, state, localand any other tax consequences to them of the purchase, ownership and disposition of the REMICCertiÑcates.

On September 27, 1991, the IRS issued proposed regulations (the ""Proposed Regulations'') thatprovide some guidance regarding the federal income tax consequences associated with the purchase,ownership and disposition of the REMIC CertiÑcates. Generally, the Proposed Regulations areproposed to be eÅective for any REMIC the Closing Date of which is on or after November 12, 1991.While certain material provisions of the Proposed Regulations are discussed below, investors shouldconsult their own tax advisors regarding the possible application of the Proposed Regulations in theirspeciÑc circumstances. No assurance can be given that Ñnal regulations will adopt the provisions ofthe Proposed Regulations without amendment, nor can any prediction be made as to when such Ñnalregulations will be adopted.

REMIC Elections and Special Tax Attributes

Elections will be made to treat the Lower Tier REMIC and the Trust as REMICs for federalincome tax purposes. The REMIC CertiÑcates, other than the Class 204-R and Class 204-RL REMICCertiÑcates, will be designated as the ""regular interests,'' and the Class 204-R REMIC CertiÑcate willbe designated as the ""residual interest,'' in the REMIC constituted by the Trust. The Lower TierRegular Interests will be designated as the ""regular interests,'' and the Class 204-RL REMICCertiÑcate will be designated as the ""residual interest,'' in the Lower Tier REMIC.

As a consequence of the qualiÑcation of the Trust and the Lower Tier REMIC as REMICs, theREMIC CertiÑcates generally will be treated as ""qualifying real property loans'' for mutual savingsbanks and domestic building and loan associations, ""regular or residual interests in a REMIC'' fordomestic building and loan associations, ""real estate assets'' for real estate investment trusts, and,except for the Class 204-R and Class 204-RL REMIC CertiÑcates, as ""qualiÑed mortgages'' for otherREMICs. See ""Certain Federal Income Tax ConsequencesÌSpecial Tax Attributes'' in the REMICProspectus.

Taxation of BeneÑcial Owners of Regular CertiÑcates

The Class 204-SA, Class 204-SB, Class 204-C, Class 204-SG, Class 204-SE and Class 204-SREMIC CertiÑcates will be, and certain other Classes of REMIC CertiÑcates may be, issued withoriginal issue discount for federal income tax purposes, which generally will result in recognition ofsome taxable income in advance of the receipt of the cash attributable to such income. ThePrepayment Assumption that will be used in determining the rate of accrual of original issue discountwill be 185% PSA. See ""Certain Federal Income Tax ConsequencesÌTaxation of BeneÑcial Ownersof Regular CertiÑcatesÌOriginal Issue Discount'' in the REMIC Prospectus. No representation ismade as to whether the Mortgage Loans underlying the MBS CertiÑcates will prepay at that or anyother rate. See ""Description of the REMIC CertiÑcatesÌFinal Distribution Dates'' and ""ÌWeightedAverage Lives of the REMIC CertiÑcates'' herein. In addition, the Class 204-SC and Class 204-SDREMIC CertiÑcates will be, and certain other Classes of REMIC CertiÑcates may be, treated ashaving been issued at a premium for federal income tax purposes. It is possible, however, that theClass 204-SC and Class 204-SD REMIC CertiÑcates may be excluded from the rules generallyapplicable to debt instruments issued at a premium because such REMIC CertiÑcates provide forrelatively small distributions of principal. See ""Certain Federal Income Tax ConsequencesÌTaxation

S-27

of BeneÑcial Owners of Regular CertiÑcatesÌCertiÑcates Purchased at a Premium'' in the REMICProspectus.

Taxation of BeneÑcial Owners of Residual CertiÑcates

The Proposed Regulations provide that an organization to which section 593 of the Code appliesand which is the beneÑcial owner of the Class 204-R or Class 204-RL REMIC CertiÑcate may not useits allowable deductions to oÅset any ""excess inclusions'' with respect to such CertiÑcate if suchCertiÑcate does not have ""signiÑcant value.'' For this purpose, the Class 204-R REMIC CertiÑcatewould have signiÑcant value under the Proposed Regulations if (i) its issue price would be at least 2%of the aggregate issue prices of all the REMIC CertiÑcates (other than the Class 204-RL REMICCertiÑcate) and (ii) its ""anticipated weighted average life'' would be at least 20% of the ""anticipatedlife'' of the Trust. Similarly, the Class 204-RL REMIC CertiÑcate would have signiÑcant value if(i) its issue price would be at least 2% of the aggregate issue prices of the Lower Tier Interests and(ii) its anticipated weighted average life would be at least 20% of the anticipated life of the Lower TierREMIC. The anticipated weighted average lives of the Class 204-R and Class 204-RL REMICCertiÑcates are based on the Prepayment Assumption and are determined as described in ""Descrip-tion of the REMIC CertiÑcatesÌWeighted Average Lives of the REMIC CertiÑcates'' herein, and theanticipated life of the Trust and the Lower Tier REMIC is the period of time that the Trust and theLower Tier REMIC are expected to be in existence, based on the Prepayment Assumption. TheClass 204-R and Class 204-RL REMIC CertiÑcates will not satisfy either requirement discussedabove. Thus, under the Proposed Regulations, neither the Class 204-R nor the Class 204-RL REMICCertiÑcate would have signiÑcant value, the result of which would be to prevent an organization towhich section 593 of the Code applies and which is the beneÑcial owner of the Class 204-R orClass 204-RL REMIC CertiÑcate from using its allowable deductions to oÅset any excess inclusionswith respect to such CertiÑcate. See also ""Certain Federal Income Tax ConsequencesÌTaxation ofBeneÑcial Owners of Residual CertiÑcatesÌExcess Inclusions'' in the REMIC Prospectus.

The Treasury Department also has the authority to issue regulations that would treat all taxableincome of the Trust (or the Lower Tier REMIC) as excess inclusions if the Class 204-R (orClass 204-RL) REMIC CertiÑcate does not have ""signiÑcant value.'' Although the TreasuryDepartment did not exercise this authority in the Proposed Regulations, future regulations maycontain such a rule. If such a rule were adopted, it is unclear whether the test for signiÑcant value thatis contained in the Proposed Regulations and discussed above would be applicable. If no such rule isapplicable, the rate that would be used for purposes of computing the portion of the taxable income ofthe Trust (or the Lower Tier REMIC) that will not be treated as excess inclusions is 8.21% (which is120% of the ""federal long-term rate''). See ""Certain Federal Income Tax ConsequencesÌTaxation ofBeneÑcial Owners of Residual CertiÑcatesÌExcess Inclusions'' and ""ÌForeign InvestorsÌResidualCertiÑcates'' in the REMIC Prospectus. The federal income tax consequences of any considerationpaid to a transferee on the transfer of the Class 204-R or Class 204-RL REMIC CertiÑcate are unclear;any transferee receiving such consideration should consult its own tax advisors.

The Conference Bill provides that ""taxable income,'' for purposes of computing the ""alternativeminimum taxable income'' of a beneÑcial owner of the Class 204-R or Class 204-RL REMICCertiÑcate, may be less than such owner's allocable share of excess inclusions. The resultingalternative minimum taxable income of a beneÑcial owner of the Class 204-R or Class 204-RL REMICCertiÑcate, however, cannot be less than the amount of excess inclusions allocated to such owner forthat year. The Conference Bill also provides that the amount of any ""alternative minimum tax netoperating loss deduction'' of the beneÑcial owner of the Class 204-R or Class 204-RL REMICCertiÑcate is computed without regard to any excess inclusions. These provisions are proposed to beeÅective as of January 1, 1987, unless an election is made to apply these provisions only to taxableyears beginning after the date of enactment. In addition, these provisions shall not apply to abeneÑcial owner of the Class 204-R or Class 204-RL REMIC CertiÑcate that is an organization towhich section 593 of the Code applies, except to the extent provided in regulations. No prediction can

S-28

be made regarding whether the Conference Bill will be enacted or, if so, what the ultimate eÅectivedate will be. See also, ""Certain Federal Income Tax ConsequencesÌTaxation of BeneÑcial Owners ofResidual CertiÑcatesÌExcess Inclusions'' in the REMIC Prospectus.

The Treasury Department has adopted temporary regulations that clarify that amounts distrib-uted on the Class 204-R REMIC CertiÑcate that do not constitute an excess inclusion will qualify,subject to certain conditions, as ""portfolio interest'' within the meaning of section 871(h) of the Code.The regulations further clarify that such distributions on the Class 204-RL REMIC CertiÑcate alsowill qualify, subject to certain conditions, as portfolio interest, but only to the extent that theMortgage Loans were issued after July 18, 1984. See ""Certain Federal Income Tax ConsequencesÌForeign InvestorsÌResidual CertiÑcates'' in the REMIC Prospectus.

Under the proposed IRS regulations relating to original issue discount, the Lower Tier RegularInterests would be treated as a single debt instrument for original issue discount purposes because theywere issued to the Trust in a single transaction. Although there can be no assurance that Ñnalregulations will apply this aggregation rule to the Lower Tier Regular Interests, Fannie Mae intends tocalculate the taxable income (or net loss) of the Trust and of the Lower Tier REMIC (and to reportto the Class 204-R and Class 204-RL CertiÑcateholders) by treating the Lower Tier Regular Interestsas a single debt instrument. A failure of the Lower Tier Regular Interests to qualify as a single debtinstrument for original issue discount purposes could have a material adverse impact on the beneÑcialowner of the Class 204-RL REMIC CertiÑcate.

LEGAL INVESTMENT CONSIDERATIONS

Institutions whose investment activities are subject to legal investment laws and regulations or toreview by certain regulatory authorities may be subject to restrictions on investment in certain Classesof the REMIC CertiÑcates. Any Ñnancial institution that is subject to the jurisdiction of theComptroller of the Currency, the Board of Governors of the Federal Reserve System, the FederalDeposit Insurance Corporation, the OÇce of Thrift Supervision, the National Credit Union Adminis-tration or other federal or state agencies with similar authority should review any applicable rules,guidelines and regulations prior to purchasing the REMIC CertiÑcates. Financial institutions shouldreview and consider the applicability of the Federal Financial Institutions Examination CouncilSupervisory Policy Statement on Securities Activities (to the extent adopted by their respectivefederal regulators), which, among other things, set forth guidelines for investing in certain types ofmortgage related securities, including securities such as the REMIC CertiÑcates. In addition, Ñnancialinstitutions should consult their regulators concerning the risk-based capital treatment of any REMICCertiÑcate. Investors should consult their own legal advisors in determining whether and to whatextent the REMIC CertiÑcates constitute legal investments or are subject to restrictions oninvestment.

PLAN OF DISTRIBUTION

General. Kidder, Peabody proposes to oÅer the REMIC CertiÑcates directly to the public fromtime to time in negotiated transactions at varying prices to be determined at the time of sale. Kidder,Peabody may eÅect such transactions to or through dealers and such dealers may receive compensa-tion in the form of discounts, concessions or commissions from any purchaser of such REMICCertiÑcates, for whom they may act as agents.

Increase in REMIC CertiÑcates. Fannie Mae and Kidder, Peabody may agree to oÅer herebyREMIC CertiÑcates in addition to those contemplated as of the date hereof. In such event, the MBSCertiÑcates will be increased in principal balance, but it is expected that all additional MBSCertiÑcates will have the same characteristics as described herein under ""Description of the REMICCertiÑcatesÌThe MBS CertiÑcates.'' The proportion that the original principal balance of each Classof REMIC CertiÑcates bears to the aggregate original principal balance of all the REMIC CertiÑcates

S-29

will remain the same. The dollar amounts reÖected in the Principal Balance Schedules will beincreased in pro rata amounts that correspond to the increase of the principal balance of the REMICCertiÑcates.

LEGAL MATTERS

Certain legal matters will be passed upon for Kidder, Peabody by Cleary, Gottlieb, Steen &Hamilton.

S-30

No dealer, salesman or other person has beenauthorized to give any information or to make anyrepresentations in connection with this oÅeringother than those contained in this Prospectus Sup-plement, the REMIC Prospectus, the MBS Pro- $961,803,899spectus and the Information Statement and, ifgiven or made, such information or representationsmust not be relied upon as having been authorized.This Prospectus Supplement, the REMIC Pro-spectus, the MBS Prospectus and the Information Federal NationalStatement do not constitute an oÅer to sell or asolicitation of an oÅer to buy any of the REMIC Mortgage AssociationCertiÑcates oÅered hereby in any state to anyperson to whom it is unlawful to make such oÅer orsolicitation in such state. The delivery of thisProspectus Supplement, the REMIC Prospectus,the MBS Prospectus and the Information State-ment at any time does not imply that the informa- rstuvtion contained herein or therein is correct as of anytime subsequent to the date hereof.

Guaranteed REMIC

Pass-Through CertiÑcates

Fannie Mae REMIC Trust 1992-204

PROSPECTUS SUPPLEMENTTABLE OF CONTENTS

Page

Prospectus Supplement

Table of Contents ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S- 3Description of the REMIC

CertiÑcatesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S- 4Certain Additional Federal Income Tax

Consequences ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-27Legal Investment Considerations ÏÏÏÏÏÏÏÏ S-29Plan of Distribution ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-29Legal Matters ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-30 £§•

REMIC Prospectus

Prospectus Supplement ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2Summary of Prospectus ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3Description of the REMIC

CertiÑcatesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 8The Trust AgreementÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 14Certain Federal Income Tax

Consequences ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 16October 5, 1992Legal Opinion ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 26

ERISA ConsiderationsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 26

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