Supplement dated September 28, 1999 To Pricing Supplement dated May 20, 1999 (To Offering Circular dated December 21, 1998) Benchmark BondsSM This Supplement supplements the Pricing Supplement dated May 20, 1999 and relates to the Debt Securities described below (the "Bonds"). You should read it together with the Offering Circular dated December 21, 1998 (the "Offering Circular"), relating to the Global 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 Bonds offered by this Supplement, when issued, will form a single issue with the $2,500,000,000.00 aggregate principal amount of such Bonds (the "Original Bonds") issued in one or more prior transactions. With the exception of the terms set forth below, the Bonds will have the terms set forth in the Pricing Supplement dated May 20, 1999, a copy of which is attached. The Bonds, 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: 6.25% Bonds Due May 15, 2029 2. Aggregate Principal Amount: $1,750,000,000.00 ($4,250,000,000.00 aggregate principal amount outstanding when combined with the Original Bonds) 3. Issue Date: October 01, 1999 4. Interest a. Interest Commencement Date (if other than the Issue Date): May 15, 1999 Additional Information Relating to the Bonds 1. Additional Tax Information: See Annex 1 ______________ "Benchmark Bonds" is a service mark of Fannie Mae. Offering 1. Pricing Date: September 28, 1999 2. Method of Distribution: X Principal __ Agent 3. Dealer(s) Underwriting Commitment Goldman, Sachs & Co. $ 591,000,000 J.P. Morgan Securities Inc. 443,000,000 Lehman Brothers Inc. 443,000,000 Bear, Stearns & Co. Inc. 33,000,000 Credit Suisse First Boston Corporation 40,000,000 First Tennessee Bank National Association 40,000,000 HSBC Securities (USA) Inc. 40,000,000 Merrill Lynch, Pierce, Fenner & Smith Incorporated 40,000,000 Morgan Stanley & Co. Incorporated 40,000,000 Salomon Smith Barney Inc. 40,000,000 Total $ 1,750,000,000 a. Representatives: Goldman, Sachs & Co. J.P. Morgan Securities Inc. Lehman Brothers Inc. b. Stabilizing Manager: Goldman, Sachs & Co. 4. Offering Price: X Fixed Offering Price: 92.898%, plus accrued interest from May 15, 1999 __ Variable Price Offering 5. Purchase Price to Applicable Dealers: 92.623% of principal amount, plus accrued interest from May 15, 1999 a. Concession: .22% b. Reallowance: N/A% Settlement 1. Settlement Date: October 01, 1999 2. Settlement Basis X Delivery versus Payment __Free Delivery   3. Settlement Clearing System X U. S. Federal Reserve Banks __ DTC __ Euroclear __ Cedel __ Other: _____                                       ANNEX 1 To Supplement Dated September 28, 1999 To Pricing Supplement Dated May 20, 1999 Issue (Title): 6.25% Bonds Due May 15, 2029   UNITED STATES TAXATION In the opinion of Arnold & Porter, special tax counsel to Fannie Mae, the following paragraph, when read in conjunction with the discussion under "United States Taxation" in the Offering Circulars, correctly describe the principal United States federal tax treatment of investors who purchase the Bonds. 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.       New Effective Date for Withholding and Information Reporting Regulations The Offering Circular describes new regulations relating to withholding, backup withholding and information reporting with respect to payments to non-U.S. Persons. In April 1999, the IRS announced a delay in the effective date of those regulations. Pursuant to the IRS announcement, the regulations will be effective for payments made after December 31, 2000. The IRS announcement also delayed the date on which certain U.S. information reporting rules will apply to the foreign office of a foreign broker that is a foreign partnership with specific connections with the U.S. These rules will now apply to payments made by such partnerships after December 31, 2000.