Fannie Mae officially announced recently its new subordinated Benchmark Note program for 2001, which will be issued on a quarterly basis in 2001, the first year of a three-year phase in, and on a semi-annual basis thereafter.

Fannie Mae expects to raise $15 billion through issuance of the notes over the period. Following a three-year phase-in period, the sum of core capital and outstanding subordinated debt will equal or exceed 4% of on-balance-sheet assets, after setting aside capital sufficient to support off-balance-sheet mortgage-backed securities.

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