NCSHA 2015 Annual Conference September 28, 2015 Mortgage Financing Executions to Fit the Time Danny Gardner, VP Affordable Lending & Access to Credit

 Provide Stability in the Secondary Market for Residential Mortgages  Respond Appropriately to the Private Capital Market  Provide Ongoing Assistance to the Secondary Market for Residential Mortgages (Including Activities Relating to Low-Mod Mortgages Involving a Reasonable Return That May be Less than Return on Other Activities) By Increasing Mortgage Liquidity and Attracting Capital to Mortgages  Promote Access to Mortgage Credit Throughout the Nation By Increasing Liquidity and Attracting Capital »Meet Specific Targets for Purchase of Mortgages Securing Housing for Low-Mod families Freddie Mac’s Public Statutory Purposes © Freddie Mac 2

3© Freddie Mac September 2015 Private Labels Remain Out of the MBS Market Source: Inside MBS & ABS * Data as of March, 2015 Percentage of MBS Issuances, by Entity 65% 7% 28% Percent

4© Freddie Mac September 2015 Providing a Constant Source of Liquidity  Purchase volume in 1H 2015: $181.4 billion  Households helped: »299,000 home purchases »504,000 refinances »First-time buyers - 100,000+ »Moderate- and lower-income borrowers - ~295,000

5© Freddie Mac September 2015 Confirming Our Commitment to Community Lenders FreddieMac.com/singlefamily/community_lenders

6© Freddie Mac September 2015 Assisting State Housing Finance Agencies  Reinvigorating relationships with state and local HFAs nationwide  Building partnerships to support HFAs’ mission  Making it easier for HFAs to work with us  Designing products to meet the needs of HFAs. »providing low down payment options »Supporting down payment assistance programs »Lowering mortgage rates  Delivering mortgage products that help HFAs reach more potential homeowners

Benefits Include:  No Loan Level Delivery Fees  May be submitted through Loan Prospector SM, Desktop Underwriter, or manually underwritten  No minimum borrow contribution  No reserves required  Lower mortgage insurance costs: »Lower monthly mortgage insurance (MI) payments. »No upfront MI Premium. »MI may be canceled with Home Possible loans per Single-Family Seller/Servicer Guide MI cancellation requirements. HFA Advantage © Freddie Mac 14

HFA Advantage vs FHA: Insurance Costs HFA Advantage 97%FHAComments Upfront MIPNo upfront MI premium to pay or finance 1.75%FHA: MIP calculated using the initial base loan amount, not the amount financed. MIP cannot be dropped on loans with base LTVs >90% (excludes upfront MIP) and amortization terms >15 years. Monthly MI Rate (%)*.80%**.60%*** >95% LTV =.85%FHA: No FICO cuts Home Possible & Home Possible Advantage: MI based on FICO ranges ** FICOs *** FICOs Lower monthly MI rates and payments with Home Possible Advantage! Lower mortgage insurance costs! (*) MI premium rate examples. Lenders must confirm applicable rates directly from their MI providers. 8

Freddie Mac HFA Advantage Program* Terms Specific to Housing Finance Agencies 9 HFA Advantage SM Mortgage HFA PricingHFA Credit Enhancement Options HFA On-boardingHFA Support and Training Enhanced 97% LTV and 105% TLTV Mortgage HFA income limits Homeownership Education – per HFA program or Home Possible ® mortgages Use of Loan Prospector ® recommended for broader product flexibility No charge for using Loan Prospector AUS alternatives in lieu of Loan Prospector considered HFA Pricing Market competitive standard HFA Guarantee Fee (Gfee) reflecting market conditions and sales executions Loan level delivery fees exception for HFAs Cash & Guarantor executions Long term contracts that may be amended subject to 90 days advance notice. Eligible Credit Enhancements Charter level mortgage insurance coverage Negotiated Options: No MI (12 months recourse ) Representation and warranty relief through a QC review of all Home Possible Advantage mortgages “White Glove” Process Streamlined application process and less required documentation Dedicated Freddie Mac representative to assist you through the application process Reduced application fees Helpful Resources HFA-focused webinars Lender training materials and tutorials Available consumer- focused homebuyer education (e.g., CreditSmart ® ) Additional Freddie Mac training: Loan Prospector Selling System Loan Delivery Loan Quality Advisor SM Customizable HFA marketing collateral Dedicated website for HFAs *FOR DISCUSSION PURPOSES ONLY. Information in this presentation does not constitute an agreement between Sellers and Freddie Mac and the terms of this program are subject to change. Sellers must refer to their Purchase Documents for final program requirements.