PRICING SUPPLEMENT DATED  JULY 14, 1997
(To Offering Circular dated April 3, 1996)

REVISED

                                                                FANNIE MAE

                                                  $525,000,000 5.52% Debentures
                                                           Due January 15, 1998
                                                                 Series SM-1998-Y
                                                         CUSIP NO. 31359MCK7

          This Pricing Supplement relates to the issue of Debentures described below (the "Debentures") and should be read in conjunction with the Offering Circular dated April 3, 1996 (the "Offering Circular") relating to the Debentures 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 DEBENTURES, 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.

Certain Securities Terms

1.     Original Principal Amount:   $525,000,000.00

2.     Issue Date (expected Settlement Date):   July 17, 1997

3.     Maturity Date:   January 15, 1998

4.     Subject to Redemption Prior to Maturity Date
           X      No
               Yes; in whole or in part, at the option of the Corporation, at any time (and from
                  time to time) on or after  ________  at a redemption price of 100% of the
                  principal amount redeemed, plus accrued interest thereon to the date of redemption

5.     Interest

        a.     Interest rate per annum:   5.52%

        b.     Frequency of Interest Payments:   At Maturity

        c.     Interest Payment Date: January 15,1998

        

Offering

1.     Method of Distribution:   Selling Group

2.     Commission to member(s) of the Debenture Selling Group: .0375% of the original principal         amount of the Debentures confirmed and delivered to them.

3.     Offering Price:  100% of the original principal amount, plus accrued interest, if any,
        from July 17, 1997.

Additional Information

In May 1997, the U.S. Department of Housing and Urban Development issued a rule that makes final, with limited amendments, interim revised HUD Book-Entry Regulations that were issued in December 1996, effective January 1, 1997 (Federal Register, vol. 61, p. 63,944 (December 2, 1996)). The final rule, including those amendments, will become effective on June 30, 1997. (See Federal Register, vol. 62, p. 28,975 (May 29, 1997).) The HUD Book-Entry Regulations apply to all Securities that are issued or maintained on the Fed Book-Entry System.