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:   31364GR76

Certain Securities Terms

1.    Principal Amount:   $250,000,000.00

2.    Issue Date (expected Settlement Date):  May 19, 1999

3.    Maturity Date:   May 19, 2003

       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  May 19, 2000
               __   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:  19th day of each May and November

       c.    First Interest Payment Date:  November 19, 1999

4. Interest rate per annum:  6.00%

Offering

1.    Pricing Date:  May 12, 1999

2.    Method of Distribution:      X    Principal            Non-Underwritten

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

        Morgan Stanley & Co. Incorporated
        First Tennessee Bank National Association
        Fuji Securities Inc.
        HSBC Securities, Inc.
        Prudential Securities Incorporated
        Paribas Corporation

       a.    Representative(s): Morgan Stanley & Co. Incorporated

4.    Offering Price:
          X      Fixed Offering Price:     100% , plus accrued interest, if any, from May 19, 1999
                  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:     $249,562,500.00

8.    Concession:     .125% Reallowance:   .075%