Fannie and Freddie:

Agency Q&A

What do you expect prepayment risk to be like in 2003? What are your expectations based on?

Peter Niculescu, executive vice-president of Fannie Mae’s mortgage portfolio business: Fannie Mae’s low-risk growth business model enables us to manage credit and interest rate risk inherent in our business through a wide range of economic and interest rate environments. Managing prepayment risk is something our disciplined risk managers do every day. While prepayments may continue to rise