FANNIE MAE
                                                            Medium-Term Notes,
                                                                        Series B

         This Pricing Supplement relates to the issue of Medium-Term Notes, Series B described below (the "Notes"). You should read it together with the Offering Circular dated September 15, 1998 (the "Offering Circular") relating to the Medium-Term Notes, Series B of the Federal National Mortgage Association ("Fannie Mae"). Capitalized terms used in this Pricing Supplement have the meanings we gave to them in the Offering Circular, unless we specify otherwise.

          The Notes, together with interest thereon, are not guaranteed by the United States and do not constitute a debt or obligation of the United States or any agency or instrumentality thereof other than Fannie Mae.

CUSIP Number:   31364GGJ2

Certain Securities Terms

1.    Principal Amount:   $100,000,000.00

2.    Issue Date (expected Settlement Date):   November 13, 1998

3.    Maturity Date:   November 15, 2002

       a.    Amount Payable on the Maturity Date:    100% of principal amount

4.    Subject to Redemption Prior to Maturity Date
                 No
          X    Yes; in whole or in part, at our option, at a redemption price of 100% of the principal amount redeemed, plus accrued interest thereon to the date of redemption
                  X   at any time (and from time to time) on or after  November 15, 1999
               __   on ___________
               __   on each Interest Payment Date commencing ________

5.    Interest Category:  Fixed Rate Notes

6.    Interest

       a.    Frequency of Interest Payments
                 X     Semiannually
                        Other:                                       

       b.    Interest Payment Dates:  15th day of each May and November

       c.    First Interest Payment Date:  May 15, 1999

       d.    Interest rate per annum:  5.55%
 
 
 
 
 
 

Offering

1.    Pricing Date:  November 5, 1998

2.    Method of Distribution:      X    Principal             Non-Underwritten

3.    The following dealers have agreed jointly and severally to purchase all the Notes:

        PaineWebber Incorporated
        HSBC Securities, Inc.
        Lehman Brothers Inc.
        Chase Securities Inc.

       a.    Representative(s):  PaineWebber Incorporated

4.    Offering Price:
          X      Fixed Offering Price:     100% , plus accrued interest, if any, from November 13, 1998
                  Variable Price Offering

5.    If Fixed Offering Price, discount to Dealers:     .175% of Principal Amount

6.    Price to Dealers:     99.825% of Principal Amount

7.    Our Proceeds:     $99,825,000.00

8.    Concession:     .135% Reallowance:    .10%