FANNIE MAE

                                                            Medium-Term Notes,
                                                                        Series B

          This Pricing Supplement relates to the issue of Medium-Term Notes, Series B described below (the "Notes") and should be read in conjunction with the Offering Circular dated June 24, 1997 (the "Offering Circular") relating to the Medium-Term Notes, Series B of the Federal National Mortgage Association (the "Corporation" or "Fannie Mae"). Unless otherwise defined herein, capitalized terms used herein have the meanings given to them in the Offering Circular.

          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 THE CORPORATION.

CUSIP Number:   31364FHB0

Certain Securities Terms

1.    Principal Amount:   $50,000,000.00

2.    Issue Date (expected Settlement Date):   November 21, 1997

3.    Maturity Date:   November 22, 2004

       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 the option of the Corporation, at any time (and from time to time)
                 on or after  November 22, 2000  at a redemption price of 100% of the principal amount
                 redeemed, plus accrued interest thereon to the date of redemption

5.    Interest Category:  Fixed Rate Notes

6.    Interest

       a.    Frequency of Interest Payments
                 X     Semiannually
                       Other:                                       

       b.    Interest Payment Dates:  22nd day of each May and November

       c.    First Interest Payment Date:  May 22, 1998

       d.    Interest rate per annum:  6.50%
 

Offering

1.    Pricing Date:  November 13, 1997

2.    Method of Distribution:      X    Principal             Non-Underwritten

3.    Dealer:                                                                              Underwriting Commitment

         Norwest Investment Services, Inc..................................       $50,000,000.00

       a.    If Multiple Dealers, Representative(s):  N/A

4.    Offering Price:
          X      Fixed Offering Price:    100% , plus accrued interest, if any, from November 21, 1997
                  Variable Price Offering

5.    If Fixed Offering Price, discount to Dealer:     .25% of Principal Amount

6.    Price to Dealer:     99.75% of Principal Amount

7.    Proceeds to Corporation:     $49,875,000.00

8.    Concession:     .20% and reallowance:    .175%
 

United States Taxation

          In the opinion of Arnold & Porter, special tax counsel to the Corporation, the following paragraphs, when read in conjunction with the discussion under "United States Taxation" in the Offering Circular, correctly describe the principal aspects of the current United States federal tax treatment of investors who purchase the Notes described in the Offering Circular. The discussion does not purport to deal with all tax consequences applicable to all categories of investors, some of which may be subject to special rules.

1997 Tax Legislation

          The Taxpayer Relief Act of 1997 modified the federal income taxation of capital gains. The maximum tax rate on capital gains received by individuals from the sale or disposition of investments (other than collectibles) held for more than 18 months is 20 percent. If an individual holds an investment for more than one year, but not for more than 18 months, the maximum rate is 28 percent. Finally, the top capital gains tax rate for individuals will drop to 18 percent for assets purchased after January 1, 2000, and held for more than five years. Investors should consult their own tax advisors for more information or for the capital gains rate applicable to a specific Note they own.

Final Regulations Relating to Withholding and Information Reporting

          The Offering Circular describes proposed regulations issued by the IRS relating to withholding, backup withholding and information reporting with respect to payments made to Non-U.S. Persons. In October 1997, the IRS finalized those regulations. Those final regulations generally are effective for payments made after December 31, 1998. However, withholding certificates that are valid under the present rules and that are held by a Withholding Agent on December 31, 1998, remain valid until the earlier of December 31, 1999 or the expiration date of the certificate under the present rules (unless otherwise invalidated due to changes in the circumstances of the person whose name is on the certificate).

          When effective, the new regulations will streamline and, in some cases, alter the types of statements and information that must be furnished to a Withholding Agent to claim a reduced rate of withholding. While various IRS forms (such as IRS Forms 1001 and 4224) currently are used to claim exemption from withholding or a reduced withholding rate, the preamble to the regulations states that the IRS intends most certifications to be made on revised Forms W-8. The regulations also clarify the duties of Withholding Agents and modify the rules concerning withholding on payments made to Non-U.S. Persons through foreign intermediaries. With some exceptions, the new regulations treat a payment to a foreign partnership as a payment directly to the partners.