1. 2016 Mountain Plains Housing Summit Opportunities for HFA and GSE Collaboration
Richard Arnott, HFA Engagement
Affordable Lending and Access to Credit
Single Family Division
May 4, 2016

2. 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
This slide *must* be shown after the title slide in all external presentations. For talking points, click on View, Notes Page.
[Use the points that best fit the situation and the audience.]
Before we jump into the presentation, let me take a moment to set a backdrop.
FM is here because of you and for you.
We believe deeply in our mission: To provide liquidity and stability and to promote affordability in the housing market. You’re an important part of that.
Operating under conservatorship hasn’t dampened our commitment. In fact, we’re putting our all into serving families, customers, and taxpayers better than ever.
For families, we’re
enhancing mortgage products to better meet their needs.
supporting education and counseling opportunities to help them prepare to own.
working with servicers to help struggling homeowners keep their homes or exit homeownership as smoothly as possible.
promoting workforce and affordable housing.
bottom line, helping to make home possible.
For customers, we’re
helping to expand access to credit responsibly.
giving greater purchase certainty.
making it easier to work with us by simplifying processes and employing more capable systems and technology.
supporting the growth and success of their business.
working to be their trusted adviser and investor of choice.
focusing on creating a positive experience with us.
For taxpayers, we’re
transforming [for MF: strengthening] our capabilities to manage credit risk.
shifting credit risk away from them and to private investors.
strengthening the mortgage markets by creating a securitization infrastructure that the GSEs will use, and will be available to other entities, in the future.
We’re helping to lead the way forward today, and positioning the company to remain a leader for tomorrow.
Applying our strengths, we’re building a better company and a better housing finance system.
For you. And with you.

3. Building Critical Partnerships with HFAs
Reinventing relationships with HFAs nationwide
Supporting HFAs’ critical mission
Providing multiple Freddie Mac resources through a team-based approach
Exploring new test-and-learn initiatives and value-added products based on HFA feedback
Leveraging partnerships with third parties
Making it easier for HFAs to work with us
Delivering mortgage products that help HFAs reach more potential homeowners
Providing low down payment options
Supporting down payment assistance programs
Offering preferential pricing

4. Freddie Mac HFA Advantage® Mortgage: Enhanced 97% LTV / 105% TLTV
Benefits include:
HFA-established income limits
No minimum borrower contribution and no reserve requirement
HFA-determined homebuyer education
Lower mortgage insurance costs
Charter level coverage = lower monthly MI payments
No upfront MI premium
Credit enhancement options including immediate rep and warranty relief
No delivery fees
May be submitted through Loan ProspectorSM, Desktop Underwriter, or manually underwritten
Cash and guarantor executions

5. HFA Advantage® or FHA? A Look at the Numbers
96.5% LTV
3.75% rate*
Upfront and monthly MI
97% LTV
4.125% rate*
Borrower paid monthly MI
HFA paid single MI premium
Down payment
$6,125
$5,250
Down payment savings
$875
Monthly payment
$1,315
$1,308
$1,223
Upfront MI**
1.75%
0.00%
Annual MI
0.85%
0.60%
MI term
Life of loan
Cancels at 78% LTV
Monthly savings $7
$92
Annual savings
$84
$1,104
Savings over 5 years
$420
$5,520
* Note rates drawn from an HFA website January 2016
** FHA includes an upfront MIP (1.75%) and a renewal premium (0.85%). PMI premiums vary based on select transaction features. Higher FICO scores further reduce PMI premiums. Scenarios are intended for comparison purposes only and should not be relied on for actual rate quotes, loan estimates, or other borrower disclosures. Comparisons are made at the highest LTV ratios allowed for the product. Consult the Freddie Mac Single-Family Seller/Servicer Guide for detailed requirements that apply to HFA Advantage and other 30-year fixed rate mortgage products.

6. What is the Duty to Serve?
The Housing and Economic Recovery Act of 2008 established for Fannie Mae and Freddie Mac a duty to serve very low-, low-, and moderate-income families in three specified underserved markets: Each year, FHFA is required to evaluate and rate each Enterprise’s performance in each underserved market and report the results to Congress.

7. Expanding Homeownership Opportunities Together
Critical feedback
Emerging markets with non-traditional credit profiles
Continued need for down payment resources and flexibility
Persistent need in underserved markets
Neighborhood stabilization challenges
Desire for execution options
Freddie Mac is exploring HFA feedback-driven opportunities
Meaningful changes to broad offerings
Collaborative test-and-learn initiatives
Tailored solutions
Enhanced communication, collaboration, and consultation

8. HFA Engagement Team Preston Lee, HFA Engagement (Local HFAs)
Office Phone: 703/ ,
Richard Arnott, HFA Engagement (State HFAs)
Cell Phone: 781/ ,
  Erin Quinn, HFA Engagement
Office Phone: 571/ ,
Peter Bernet, HFA Engagement
Office Phone: 571/ ,
Jeffrey Farrell, HFA Engagement
Office Phone: 571/ ,
Lenders interested in learning more about HFA Advantage and how to work with housing finance agencies who offer it should contact their account executive and/or customer relationship manager.
Lenders who do not have an account executive or customer relationship manager should contact Dennis Smith (571/ or