This agreement arises out of an investigation by the Division of Enforcement (the “Division”) of the United States Securities and Exchange Commission (the “Commission”) into possible violations of the federal securities laws by the Federal National Mortgage Association (the “Respondent” or “Fannie Mae”) and others that occurred in or about December 2006 through September 6, 2008, arising from, among other things, public statements concerning Fannie Mae’s exposure to SUbprime and Alt-A mortgages (collectively, the “Investigation”). Prior to a public enforcement action being brought by the Commission against Fannie Mae, without admitting or denying liability, Respondent has offered to accept responsibility for its conduct and to not dispute, contest, or contradict the factual statements set forth in Exhibit A, as specifically provided herein. Accordingly, the Commission and the Respondent enter into this Non-Prosecution Agreement (the “Agreement”).
