Our policy related to the MERS registration of mortgages that are sold to, or serviced for, Fannie Mae

is summarized below: A lender that decides to register mortgages in MERS must generate an 18-digit Mortgage Identification Number (MIN) for each mortgage that it registers. The MIN will be used solely in connection with MERS; we will continue to rely on the Fannie Mae loan number to identify each mortgage we purchase or securitize. - For new mortgage deliveries to Fannie Mae, the lender must report the MERS registration when it delivers the mortgage to us (by entering the applicable MIN on the Loan Schedule or Schedule of Mortgages). After we purchase or securitize the mortgage, we will notify MERS to ensure that the MERS records are updated to reflect our ownership interest. (PLEASE NOTE THAT IT IS IMPORTANT TO REGISTER THE MIN ON THE MERS SYSTEM PRIOR TO DELIVERY OF THE LOAN (AND THE ASSOCIATED MIN) TO FANNIE MAE.) - For mortgages in existing Fannie Mae servicing portfolios, the lender will need to report our ownership interest to MERS when it registers the mortgage. (Note: If the original assignment of the mortgage to Fannie Mae was recorded in the public records, the servicer will first need to prepare an assignment from Fannie Mae to MERS and send it to us for execution.) MERS will promptly notify us when a lender reports that we have an ownership interest in mortgages that it is registering with MERS. The lender will not need to include in the delivery package for a MERSregistered mortgage a copy of the assignment of the mortgage to MERS, nor will the lender be required to prepare and submit an unrecorded assignment of the mortgage to Fannie Mae, unless we specify otherwise for a particular transaction or transactions.

 If a loan is registered with MERS and the servicing of the mortgage is subsequently transferred to another lender that is a MERS member, the transferee will not need to prepare an unrecorded assignment of the MERS-registered mortgage as part of the custody documents unless we specify otherwise for a particular transaction or transactions. However, if servicing of a MERS-registered mortgage is transferred to a lender that is not a member of MERS, or if the MERS registration for an active mortgage is terminated for any reason, an assignment from the servicer to Fannie Mae in recordable form but unrecorded will be required. The lender will be responsible for the accurate and timely preparation and recordation of security instruments, assignments, lien releases, and other documents relating to MERS-registered mortgages and must take all reasonable steps to ensure that information on MERS is updated and accurate at all times. The lender will also be solely responsible for any failure to comply with the provisions of the MERS Member Agreement, Rules, and procedures and for any liability that it or Fannie Mae incurs as a result of the registration of mortgages with MERS or any specific MERS transaction. Registration of Fannie Mae-owned or -securitized mortgages in MERS does not change the lender's (or the mortgage servicer's) responsibility for complying with all applicable provisions of the Fannie Mae Mortgage Selling and Servicing Contract, the Fannie Mae Guides and with the terms and conditions of the lender's Master Agreement or any negotiated contract that it has with us, unless we specify otherwise. In addition, MERS' failure to perform any obligation with respect to a MERS- registered mortgage does not relieve the lender (or the mortgage servicer) from its responsibility for performing any obligation required by the terms of its Fannie Mae contracts or the provisions of the Fannie Mae Guides. The following guidelines address those provisions of the current Selling and Servicing Guides to accommodate the registration of mortgages in MERS.

Mortgage Deliveries Mortgages submitted to us as either a cash or MBS pool delivery may be registered on MERS before they are delivered to us. When a MERSregistered mortgage is delivered to us, the lender must provide the MIN on the Loan Schedule (Form 1068 or 1069) or Schedule of Mortgages (Form 2005) that it submits to us. When we purchase or securitize a MERS-registered mortgage, we will transmit (through MORNET) information to MERS about our acquisition of the mortgage so that the MERS record for that mortgage can be updated to reflect our ownership interest. If, during our transmission, MERS notifies us about a problem with the MIN that the lender reported to us, we will contact the lender to verify the correct MIN and to arrange for a prompt resubmission of the corrected information to MERS. If the lender reported a MIN for a mortgage that was not actually registered in MERS, the lender must prepare an unrecorded assignment of the mortgage to Fannie Mae and send it to our Document Delivery Facility or the applicable document custodian. The loan delivery package for a MERS-registered mortgage does not have to include a copy of the assignment of the mortgage to MERS or an unrecorded assignment of the mortgage from MERS to Fannie Mae, unless we specify otherwise for a particular transaction. By delivering a MERS-registered mortgage to us, the lender warrants that the assignment to MERS has been recorded and agrees that, in the event that either its membership in MERS or the MERS registration for an active mortgage is terminated for any reason while we have an ownership interest in the mortgage, it will prepare (in recordable form) an assignment of the mortgage to Fannie Mae and deliver the assignment to us (or to the applicable document custodian). For each MERS-registered mortgage, the lender should indicate the applicable MIN on all documents related to the mortgage, regardless of whether the lender retains the documents or sends them to Fannie Mae or the applicable document custodian. Our Certification Service Center requests that the MIN is placed on the top right hand corner of the first page of the Note to expedite the processing of your loans.

Existing Servicing Portfolios A servicer may choose to register in MERS some, all, or none of the Fannie Mae-owned or -securitized mortgages that it is currently servicing (or acquires for servicing in the future). When a servicer decides to register an existing Fannie Mae-owned or -securitized mortgage in MERS, it should assign a MIN to the mortgage, request MERS to register the mortgage (reporting our ownership interest in the mortgage), and record in the public records an assignment of the mortgage to MERS. If a servicer decides to register in MERS all of the mortgages it is servicing, Fannie Mae may be the mortgagee of record for some of the mortgages. When this is the case, the servicer will need to prepare an assignment of the mortgage from Fannie Mae to MERS and send the assignment to our Document Delivery Facility for execution. After we return the executed assignment, the servicer must record the new assignment in the public records. The servicer must assign a MIN to the mortgage and request MERS to register the mortgage (reporting our ownership interest in the mortgage). For more information, please visit the AllRegs website (http://www.allregs.com/efnma/) and perform a search under Fannie Mae Single Family for MERS.

MORNET is a registered trademark of Fannie Mae. MERS is a registered trademark of Mortgage Electronic Registrations Systems, Inc. and AllRegs is a registered trademark of Mortgage Resource Center Corporation.