Wednesday, October 29, 2008

Fannie Mae to Take Valuation Allowance Against Deferred Tax Asset

/PRNewswire-FirstCall/ -- Fannie Mae (NYSE:FNM) announced today that it has determined to take a valuation allowance against its deferred tax asset. While the amount of the valuation allowance has not yet been determined, it is likely to be substantially all of the value of the deferred tax asset as of September 30, 2008.

The Company is in the process of completing its Quarterly Report on Form 10-Q for the quarter ended September 30, 2008. Further information concerning the amount of the valuation allowance and the effect of taking that allowance on the results of operations for the third quarter as well as other information such as balance sheet information, including stockholders' equity and net worth, and results of operations for the third quarter, will be included in the Form 10-Q when it is filed with the Securities and Exchange Commission.

Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. In 2008, we mark our 70th year of service to America's housing market. Our job is to help those who house America.

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