Fannie Mae Increases 2002 Mortgage Loan Limit to $300,700

WASHINGTON, DC - Fannie Mae (FNM/NYSE), the nation's largest source of financing for home mortgages, today announced that its single-family mortgage loan limit will increase to $300,700 for 2002. The increase in the loan limit is based on the change between October 2000 and October 2001 in the average home price, as published in the Federal Housing Finance Board Monthly Interest Rate Survey, which the Board announced today. This method of calculating the annual change in the loan limit is set forth in the Housing and Community Development Act of 1980.

The company noted that in 2002, the increase will allow approximately 220,000 more families to take advantage of savings provided by having a Fannie Mae mortgage. For example, with the difference between rates for a Fannie Mae mortgage and a jumbo mortgage, these families will save up to $26,900 over the life of a 30-year mortgage.

Limits for multi-unit loans also will increase for 2002 as follows: two-family loans to $384,900; three-family loans to $465,200; and four-family loans to $578,150. The limit for second mortgages will increase to $150,350.

The maximum amount for one-to-four-family mortgages in Alaska, Hawaii, and the U.S. Virgin Islands is 50 percent higher than the limits for the rest of the country. The loan limit for second mortgages will increase to $225,525, in Alaska, Hawaii, and the U.S. Virgin Islands.

Fannie Mae is a New York Stock Exchange company and the largest non-bank financial services company in the world. It operates pursuant to a federal charter and is the nation's largest source of financing for home mortgages. Fannie Mae is working to shrink the nation's "homeownership gaps" through a $2 trillion "American Dream Commitment" to increase homeownership rates and serve 18 million targeted American families by the end of the decade. Since 1968, Fannie Mae has provided more than $3.0 trillion of mortgage financing for more than 41 million families.

Style Usage: Fannie Mae's Board of Directors has authorized the company to operate as "Fannie Mae," and the company's stock is now listed on the NYSE as "Fannie Mae." In order to facilitate clarity and avoid confusion, news organizations are asked to refer to the company exclusively as "Fannie Mae."

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