Fannie Mae (FNMA)

[Dollars1]

Dear Shareholder,

Earlier this summer, you read Bethany McLean’s New York Times op-ed in which she pointedly asked “isn’t it time to fix what we have and ease Fannie and Freddie out of conservatorship?”

Ms. McLean reveals the full story in her new book, Shaky Ground: The Strange Saga of the U.S. Mortgage Giants, set to be released next week.

The author highlights that “most American homeowners don’t know that they are in an intimate financial relationship with these enormous companies,” and that the U.S. Government’s decision to keep Fannie and Freddie in perpetual conservatorship is “fundamentally unstable” for our economy and could prove to have devastating consequences for the housing market.

If you are interested in better understanding our investment in these two systemically important financial institutions, we recommend that you add this book to your Fall reading list.

Kind regards,

Investor Relations

The Funds' investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the Funds, and it may be obtained by calling Shareholder Services at 1-866-202-2263 or visiting our website www.fairholmefunds.com. Read it carefully before investing.
Fairholme Distributors, LLC (9/15)

Fairholme Funds, Inc.
4400 Biscayne Blvd.
9th Floor
Miami, FL 33137