Justice Department Drops Investigation of Fannie Mae

August 24, 2006

WASHINGTON, DC -- Fannie Mae (FNM/NYSE) announced that it has been advised by the United States Attorney's Office for the District of Columbia, which has been investigating Fannie Mae's accounting policies and practices, that it is discontinuing its investigation and does not plan to file charges against the company. Fannie Mae was initially notified in October, 2004 of the U.S. Attorney's investigation of the company.

The company announced in May that it had agreed to comprehensive settlements resolving matters with the Office of Federal Housing Enterprise Oversight (OFHEO) and the U.S. Securities and Exchange Commission (SEC).

In its latest 12b-25 filing, the company stated that it would complete its ongoing restatement by the end of 2006.

"We will continue to work closely and cooperatively with our regulators as we move forward to carry out the terms of our agreements, complete our restatement and build a better company," said Daniel H. Mudd, President and Chief Executive officer.


Contact ALTA at 202-296-3671 or communications@alta.org.

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