This Supplement supplements the Pricing Supplement dated February 13, 2003, and relates to the Debt Securities described below (the "Notes"). You should read it together with the Offering Circular dated January 23, 2003 (the "Offering Circular"), relating to the Universal Debt Facility of the Federal National Mortgage Association ("Fannie Mae"). Unless defined below, capitalized terms have the meanings we gave to them in the Offering Circular.

The Notes offered by this Supplement, when issued, will form a single issue with the $2,000,000,000.00 aggregate principal amount of such Notes (the "Outstanding Notes") that we issued in one or more prior transactions. With the exception of the terms set forth below, the Notes will have the terms set forth in the Pricing Supplement dated February 13, 2003, a copy of which is attached.

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 of any agency or instrumentality thereof other than Fannie Mae.

Certain Securities Terms

1.

Title: 4.75% Notes Due February 21, 2013

2.

Aggregate Principal Amount: $1,000,000,000.00 ($3,000,000,000.00 aggregate principal amount outstanding when combined with the Outstanding Notes)

3.

Issue Date: April 11, 2003

4.

Interest

a.

Interest Commencement Date: February 18, 2003

______________ 
"Callable Benchmark Notes" is a registered trademark of Fannie Mae. 
 

Offering

1.

Pricing Date:

April 10, 2003

2.

Method of Distribution:

X Principal

__ Non-underwritten

3.

Dealers

Underwriting Commitment

Citigroup Global Markets Inc.

$ 235,000,000

Deutsche Bank Securities Inc.

230,000,000

Morgan Stanley & Co. Incorporated

230,000,000

Bear, Stearns & Co. Inc.

60,000,000

Credit Suisse First Boston LLC

30,000,000

First Tennessee Bank National Association

30,000,000

Goldman, Sachs & Co.

30,000,000

HSBC Securities (USA) Inc.

35,000,000

J.P. Morgan Securities Inc.

30,000,000

Lehman Brothers Inc.

30,000,000

Merrill Lynch, Pierce, Fenner & Smith Incorporated

30,000,000

UBS Warburg LLC

30,000,000

Total

$ 1,000,000,000

a.

Representative(s):

Citigroup Global Markets Inc. Deutsche Bank Securities Inc. Morgan Stanley & Co. Incorporated

b.

Stabilizing Manager:

Morgan Stanley & Co. Incorporated

4.

Offering Price:

X

Fixed Offering Price: 100.318% of principal amount, plus accrued interest from February 18, 2003

__

Variable Price Offering

5.

Dealer Purchase Price: 100.093% of principal amount, plus accrued interest from February 18, 2003

a.

Concession:

0.09%

b.

Reallowance:

N/A

6.  Pricing Methodology:  See Annex 1

7.  Supplemental Plan of Distribution:  See Annex 2

Settlement

1.

Settlement Date:

April 11, 2003

ANNEX 1
TO PRICING SUPPLEMENT DATED APRIL 10, 2003
RELATING TO: 4.75% Notes Due February 21, 2013
 
 

We have determined the offering price of the Notes using a valuation methodology applied to a yield curve of selected Fannie Mae noncallable Benchmark Securities (the “Curve”).  The Curve is adjusted with a set of constant maturity yield adjustment spreads derived from Fannie Mae's Constant Maturity Debt Index ("CMDI").  The methodology also incorporates European swaption volatility levels provided by Tullett & Tokyo on the TTKL interest rate swaption volatility data series found on the Bloomberg PROFESSIONAL service.

The maturities defining the Curve are 3-months, 6-months, 1-year, 2-years, 3-years, 4-years, 5-years, 7-years, 10-years, 20-years and 30-years. In consultation with our Callable Benchmark Notes Dealers, we define which outstanding noncallable Benchmark Security should represent each maturity point on the Curve.  We expect that the 2-year, 3-year, 4-year, 5-year, 7-year, 10-year and 30-year values will be fed directly by TradeWeb LLC to Bloomberg.  The 20-year maturity point is a straight line interpolation calculated by Bloomberg between the 10-year and 30-year maturity points.  Since our short-term securities are not included on TradeWeb, at least once per
day, we expect to supply to Bloomberg a set of 3-month, 6-month and 1-year funding spreads that will be used in the generation of the Curve.  We expect that the list of current Benchmark Securities and the 3-month, 6-month and 1-year spreads used in constructing the Curve will be accessible on Bloomberg.

The valuation methodology is expected to be available on Bloomberg to investors, dealers and other market participants for use in valuation analysis and secondary market trading of the Notes.  The CMDI is available on Bloomberg, Moneyline Telerate and Reuters.

Although TradeWeb, Tullett & Tokyo and Bloomberg provide the information described above, they are under no obligation to provide or continue to provide such information.  Neither Fannie Mae nor the Dealers will have any responsibility for the information provided by TradeWeb, Tullett & Tokyo or Bloomberg.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

ANNEX 2
SUPPLEMENT DATED APRIL 10, 2003
TO PRICING SUPPLEMENT DATED FEBRUARY 13, 2003
RELATING TO: 4.75% Notes Due February 21, 2013
 
 

We will sell $1,000,000,000 principal amount of the Notes to the Dealers listed under “Offering” in this Pricing Supplement at the Dealer Purchase Price specified in this Pricing Supplement.  In addition, to facilitate secondary market transactions, from time to time we may sell up to $250,000,000 principal amount of the Notes (the “Additional Notes”) in connection with agreements by Fannie Mae to repurchase the Additional Notes.  The Additional Notes will be held in an account at the Federal Reserve Bank of New York.  It is expected that the Additional Notes will be available for sale to approved dealers through a multiple price auction process.  We expect that the results of each auction will be posted as soon as possible following the completion of each auction on Bloomberg, Telerate and Reuters.  We may discontinue sales of Additional Notes at any time without notice.

This Pricing Supplement may also be used in connection with the issuance by Fannie Mae of any Additional Notes.