PO Box 10092 Cleveland, OH 44110 Phone 2316-451-6211 Fax 216-451-3350 E Mail: rfdavet@earthlink.

net February 27, 2006 The Honorable Warren B. Rudman Paul, Weiss, Rifkind, Wharton & Garrison, LLP 1615 L Street, NW, Suite 1300 Washington, DC 20036-5694 RE: A REPORT TO THE SPECIAL REVIEW COMMITTEE OF THE BOARD OF DIRECTORS OF FANNIE MAE (Report). Dear Senator Rudman: I have completed my initial review of your Report and have come away with the impression that you and your firm were duped by the Board of Directors of Fannie Mae and quite possibly OFHEO officials. Since 1996, I have been in contact with the Audit Committee of the Board of Directors at Fannie Mae pursuant to their fiduciary responsibilities to shareholders and stakeholders, reporting to the committee the mischief of management. Despite being repeatedly assured by members of the Audit Committee and members of management that my concerns were dutifully being taken up at Audit Committee’s meetings, they appear nowhere in your Report. I also have had numerous correspondence with OFHEO which to date has fallen upon deaf ears. The gist of my reporting to the Audit Committee reflects the concern of shareholders and stakeholders at the very core of Fannie’s business and to the fundamental problem prompting the “creative” accounting you referred to in your Report at all levels of Fannie . Specifically, I am referring to Fannie Mae being the “mother” of all what has come to me known as predatory lending practices which are only cursorily mentioned in your Report. Mother Fannie, as you are aware, in their annual effort to secure the implicit guarantee of the US Treasury, proffers to congress on an annual basis its Servicer/Guidelines as an explanation of why congress should not concern itself with safety and soundness issues when it comes to Fannie Mae’s business. Mother Fannie touts that all Seller/Servicers are contractually bound to adhere to those Guidelines which should abate any anxiety of those concerned about safety and soundness issues. Only one problem…..no one audits for compliance with those Guidelines which is the very reason why our courts across the country have been burdened with vast increases in foreclosure lawsuits.

Page 2 Monday, February 27, 2006 The Honorable Warren B. Rudman Attendant with the predatory lending practices are the issues of ownership, debt collectors calling themselves “servicers”, agents, nominees, lost notes, holders, Fannie’s reliance on the errant servicers financial information, etc. all words and actions that would confuse any CPA as to the location of debt which, in turn, wreaks havoc with financials. My contact with the Audit Committee of the Board of Directors of Fannie Mae depict a different scenario that what is projected by your Report, that is, the culprits are gone and the current folks are cooperative. Specifically, in my instance I am referring to the fact that current Audit Committee members as well as current members of management including corporate secretary Phil Weber have been complicit with in allowing predatory lender Nationsbanc Mortgage Corp. to perpetrate a fraud against me under the color of law. In support , I am attaching my correspondence with the Audit Committee of Fannie of October 21, 2005 as well as November 7, 2005, which to date I have had no response nor are they alluded to in your Report as mandated by Sarbanes Oxley pursuant to the Audit Committee’s fiduciary responsibilities. FYI, I am also attaching my correspondence to the members of the Audit Committee of seller/servicer Nationsbanc Mortgage Corp. reporting their conduct in their campaign IN TERROREM being waged against me. If the thought that I might be unique has entered your mind , please visit a website called www.msfruad.org. There is no doubt in my mind that that “Mother” Fannie has allowed and in fact have encouraged the predatory lending practices that have bogged down America’s court system. The likes of which the Nationsbanc’s, Ameriquest, Ocwen, Fairbanks, EMC Mortgage, etc. could all be held accountable by Mother Fannie tomorrow by virtue of their contractual Agreement to abide by Servicer Guidelines. Frankly speaking, the $10.5 billion reported meltdown thus far at Fannie is miniscule compared with the liability inherent in their failure to mandate compliance with the Seller/Servicer Guidelines which would be placed on the doorstep of the American taxpayers. As a shareholder, stakeholder in Fannie Mae as well as being a taxpayer I would like to ask you to amend your Report to insist that Fannie’s Seller/Servicers Agreements be immediately audited for compliance and

that Congress refuse any implicit or explicit guarantee of the US Treasury until Fannie is complaint with

Page 3 Monday, February 27, 2006 The Honorable Warren B. Rudman this request. I stand ready to assist you and your staff in formulating a procedure to accomplish this task. Please confirm your receipt of this correspondence as well and giving me an outline of your anticipated course of action. Thank you. Sincerely yours, TRANSMITED ELECTRONICALLY WITHOUT SIGNATURE Richard Davet Encls. 10-21-05 Corresp Audit Committee FNMA 11-07-05 Corresp. Audit Committee FNMA 02-15-06 Corresp. Audit Committee, Nationsbanc Mortgage Corp. P.S. I would appreciate you sending me the name(s) of the individuals charged with the criminal investigations in this matter so they possibly might help me as a victim of Fannie. Cc: SEC FTC OCC OFHEO NYSE The Federal Reserve Board The Federal Deposit Insurance Corporation Ohio State Regulators Deloitte & Touche Board of Directors, Fannie Mae Congressional Representatives

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