1. S HORT P AYOFF

2. A short payoff is the sale of a Mortgaged Premises for which the Servicer has received Freddie Mac's approval to sell for less than the total amount necessary to satisfy the Mortgage obligation. The Servicer must comply with the requirements of a short payoff and/or Home Affordable Foreclosure Alternatives, as applicable, regarding a short payoff and charging off a deficiency and IRS Form 1099-A, Acquisition or Abandonment of Secured Property regarding the submission on Freddie Mac's behalf of Internal Revenue Service Form 1099-A.

3. S HORT P AYOFF The Servicer must complete the steps listed in the following slides to report and remit when the Servicer receives the funds for a short payoff.

4. S TEPS Report the short payoff as paid in full-prepaid by the second Business Day after the Servicer receives the settlement proceeds

5. S TEPS Remit the net proceeds as listed on the HUD-1 Settlement Statement to Freddie Mac. Net proceeds may include cash contributions and the mortgage insurance claim payment, if funded at settlement. For any Mortgage in which Freddie Mac has a Percentage of Participation, the remittance must equal Freddie Mac's Percentage of Participation applied to the net proceeds as listed on the HUD-1 Settlement Statement.HUD-1 Settlement StatementHUD-1 Settlement Statement

6. S TEPS The Servicer must review the Detail Adjustment Report (DAR) with respect to charge-offs and report any discrepancies to Freddie Mac by submitting Form 1205, Charge-off Reconciliation, within 30 calendar days following Freddie Mac's posting of the amount to the DAR. The DAR may be accessed through Investor Accounting Manager SM at http://www.freddiemac.com/singlefamily/service/ tools.html. http://www.freddiemac.com/singlefamily/service/ tools.html Note: Freddie Mac will respond to the Servicer within 30 calendar days of receipt of the Servicer's submission.

7. S TEPS Do not report or remit funds on this Mortgage in future cycles