1. Consumer Federation of America Financial Services Conference
Danny Gardner, VP of Affordable Lending & Access to Credit
December 1, 2016

2. Post-crisis Challenges
Industry Challenges
Increased capital, reduced profitability
Higher origination costs – up 2X
Higher servicing costs
Up 2.5X for performing loans
Up 5X for non-performing loans
Tighter credit box
Reputational risk
Legal/Regulatory risk
Borrower Challenges
Thin credit files/non-traditional evidence of creditworthiness
High house prices (and rents)
Down payments and debt

3. Rent or Buy Your Next Home?
Gauging the Market
Rent or Buy Your Next Home?
When Do You Plan to Move?
Source: Harris Poll conducted for Freddie Mac

4. Moving Affordable Lending Forward
Products - Home Possible® suite
Pilots
Bank of America/Self Help Venture Fund
Quicken
Easter Seals
New American Funding and Alterra
Outreach and education
13 Borrower Help Centers and toll-free call-in Network
Events with lenders, realtors,  counseling organizations, and other housing professionals
Research and market insights
Technology, tools, and on-line resources

5. Moving Affordable Lending Forward with Home Possible
Borrower Profile
Key Features
Borrower Benefit
First-time homebuyers
Repeat homebuyers
Homebuyers in underserved areas
New immigrants
Very low-, low-, & moderate-income households
Down payment
3% with Home Possible Advantage®
5% with Home Possible®
Eligible income of ≤100% AMI (more in high-cost areas)
No income limit in underserved areas
Lender-paid Single Premium MI & Financed Single Premium MI OK
Temporary subsidy buy- down OK
Homebuyer education required for 1 borrower if all are first-time buyers
Low down payment
No minimum borrower contribution of own funds
Flexible down payment & closing cost funding options
Stop paying MI at 80% LTV
<97% no cash-out refi
No reserves required on 1-unit owner-occupied properties

6. Moving Affordable Lending Forward with Home Possible Advantage
Source: Freddie Mac

7. Growing Responsible Affordable Lending – Together

8. A Better Freddie Mac …and a better housing finance system
For families ...innovating to improve the liquidity, stability and affordability of mortgage markets
For customers ...competing to earn their business
For taxpayers ...reducing their exposure to mortgage risks