Fannie Estimates Core Capital Level

Fannie Mae has estimated that its core capital level stood at approximately $42.4 billion as of June 30, 2007, which would exceed its minimum capital requirement.Fannie Mae said the information has been submitted to the Office of Federal Housing Enterprise Oversight and was being publicized in advance of OFHEO's determination of its capital levels because Fannie is considering a preferred stock transaction this week. The data indicate that Fannie's June 30 core capital stood at $42.375 billion, exceeding the OFHEO-directed minimum capital requirement of $39.416 billion and the statutory requirement of $30.320 billion, the government-sponsored enterprise said. Fannie Mae noted that it has not prepared any financial statements since those for fiscal year 2006, which were filed with the Securities and Exchange Commission on Aug. 16, 2007. The GSE said the information represents its best estimate of capital levels but remains subject to change because the preparation of its 2007 financial statements is still under way. Fannie can be found online at http://www.fanniemae.com.