1. Targeted Affordable Housing: Tapping into Tax-Exempt Financing
NCSHA 2016
David Leopold, Vice President, Targeted Affordable Sales & Investments

2. No longer new execution for 4% LIHTC, over $1 billion committed
Tax-Exempt Loan
No longer new execution for 4% LIHTC, over $1 billion committed
Documented as a loan instead of a bond
Private placement structure with back to back funding
Credit parameters same as our traditional bond credit enhancement: DCR / 90% LTV
Terms up to 18 years
Immediate funding and forward commitments executions available
Both fixed and floating rates available

3. Tax-Exempt Bond Placement Direct Placement of Tax-Exempt Loan
Side-by-Side Comparison: Tax-Exempt Bond Placement and Direct Placement of Tax-Exempt Loan
Bond Purchaser
Government Entity as Issuer
Borrower $
Tax-Exempt Bond Placement
Tax Exempt Bonds (payable solely from “Borrower Note”)
Purchase Price (pursuant to “Bond Purchase Agreement”)
Loan to Borrower (pursuant to “Loan Agreement”)
Direct Placement of Tax-Exempt Loan
Borrower Note
Funding Lender
Governmental Lender
Government Lender Note (payable solely from “Borrower Note”) (Governed by “Funding Loan Agreement”)
Funding Loan to City as “Governmental Lender”
Borrower Note

4. More efficient execution
Tax-Exempt Loan
Freddie Mac is bringing capital market strength to 4% LIHTC financing through securitization.
Aggressive rates and significant cost savings compared to traditional publically offered bond credit enhancements
Less documentation
More efficient execution

5. Bond Products Comparison Chart
Tax-Exempt Loan
More efficient, more cost effective alternative to publically offered tax-exempt bond credit enhancement
Private placement loan product with fewer documents and participants
Immediate and Forward Executions available
Fixed and Variable rate executions available
Min DCR
Max. 90% LTV
Terms up to 18 years
Max amortization of 35 years
Minimum 10 years prepayment protection
Credit Enhancement for Direct Placement Bonds
Private placement bond product with fewer documents and participants
Terms up to 15 years
Minimum 7 years prepayment protection
Cash Loan with Short Term Bonds
Cash loan, secured by the property, that provides collateral for tax-exempt bonds with 4% LIHTC
Bonds paid off when units placed in service. Cash loan remains in place.
Cash loan coupled with privately placement bonds.
Yield maintenance followed by defeasance
Bond Credit Enhancement with 4% LIHTC
Traditional, publicly offered bond credit enhancement
Public bond offering with multiple participants
Terms up to 35 years
Fee Maintenance is required
Bond Credit Enhancement with Other Affordability Components
New or replacement credit facility for tax-exempt housing bonds
Public offering or private placement bond executions available.
Min DCR*
Max. 85% LTV*
Terms up to 30 years
Max amortization of 30 years
*Higher leverage may be available in Tier 1 and Tier 2 Markets.

6. Bridge to Resyndication
New efficient 24-month acquisition bridge for LIHTC eligible property in anticipation of resyndication
For experienced sponsors in markets with available bond cap and predictable 4% LIHTC allocation process
Max Sizing: 1.15 DCR, 85% LTV
Floating rate, no hedge requirement
Allows for rate lock of TEL or other Freddie Mac perm mortgage to coincide with LIHTC closing

7. Vice President, Affordable Sales & Investments Freddie Mac Multifamily
David D. Leopold
Vice President, Affordable Sales & Investments
Freddie Mac Multifamily

8. Fannie Mae Multifamily Affordable Housing Presentation to NCSHA
Month dd, yyyy
4/27/2017
Fannie Mae Multifamily Affordable Housing Presentation to NCSHA
January 13, 2015
Presentation Title
Presentation Title Goes Here 8

9. Eclipsing the Competition
4/27/2017
Eclipsing the Competition
Experienced and Dedicated Affordable Team
Fannie Mae has shown its commitment to affordable housing by creating a team that focuses solely on affordable housing – this team encompasses many business divisions including credit, legal, product development and pricing
A dedicated team allows for a consistent approach to the DUS Lenders across the platform
A dedicated team allows for a high level of calibration across the team due to the geographic diversity of the team
A team dedicated to addressing product developments as market dynamics evolve
Single MBS Structure Delivers Unparalleled Flexibility
Allows for increased flexibility to structure loans more creatively.
Since our loans do not have to “fit” into a large securitized pool, the unique aspects of the transaction can be tailor-made for each MBS issuance.
Presentation Title Goes Here 9

10. Eclipsing the Competition - Continued
4/27/2017
Eclipsing the Competition - Continued
DUS Lender Network Delivers Excellent Service
Strong relationship management at origination through the life-of-the-loan
Since Lender controls the loan process, the deals can close faster which translates to certainty, speed and ease of execution
Lender has delegation to underwrite transactions in accordance with Fannie Mae guidelines
Risk Sharing Model Aligns Interests
Risk Sharing means interests are aligned and drives strong credit quality
Competitive Pricing and Terms Win Business
Asset quality, financial strength of the sponsor and market dynamics drive the approach
Added consideration for deeper affordability, properties with 50 or less units and Green
Who is the competition? Freddie Mac, FHA and Local Banks
Quality Information on competing bids
Borrower’s goal – What are they trying to obtain?
Complete submissions – Allows quicker turnaround
Expedited Response time
Streamlining with the soft quote process
Hard quote process requires more in depth review initially, but allows for delegation of final underwriting back to the lender.
Explain that we will have an initial pre-review period as our organization begin to know each other and align from a credit culture perspective. The more volume we see, the faster this process happens to allow us to delegate more back to you all.
Presentation Title Goes Here

11. Fannie Mae is Committed to Affordable Multifamily
Month Year
Fannie Mae is Committed to Affordable Multifamily
MAH Production
In Billions
2011
2012
2013
2014
Total MF
$24
$34
$29
MAH
$2.3
$3.8
$2.6
2015 overall volume for all Multifamily is $42.3 billion
Through 3Q only
Consistent. Commitment to the business. Despite new market entrants in the space and increased competitive forces, we have maintained the leading position in affordable housing. And we will continue to ensure that we are focused on what it takes to continue to be the market leader into the future.
So that is how we are doing. Now let’s talk about how we are doing it.
Presentation Title Goes Here

12. Fannie Mae is in every market, every day
Month Year
4/27/2017
Fannie Mae is in every market, every day
Very Low Income <=50%AMI
Low Income <=60% AMI
80 – 20 Mixed Income
Fannie Mae MAH pursues business with recorded affordability restrictions
Fannie Mae offers the most flexibility with our single-asset security
Fixed and Floating Rate Options
No minimum or maximum loan size and terms 5-30 yrs.
Taxable and Tax-Exempt Solutions
This slide provides you with a very high level overview of the types of deals that are available in the Fannie Mae MAH platform.
With respect to flexibility, I want to emphasize that we allow loan terms from 5-30 years. Our single asset security allows us to match specific deal terms to a specific investor rather than having to pool a bunch of like loans for securitization later.
With Chase, we believe that our best initial opportunities together are going to be for fixed rate preservation deals so the next slides walk us through more detail on this product set.
[note to presenter: Do not emphasize Floating or Tax-Exempt. Do not emphasize Substantial Rehab. ]
Fannie Mae offers the fastest and most reliable execution for all financing types
Acquisitions and Refinance
Moderate and Substantial Rehab
Preservation
Presentation Title Goes Here
Presentation Title Goes Here 12

13. Month Year
Choose the Fannie Mae Tax Exempt Bond Financing Solution that Works for You!
Fannie Mae offers very competitive pricing with the most flexibility, as well as the fastest and most reliable execution.
Presentation Title Goes Here

14. MBS as Tax Exempt Bond Collateral (M.TEB)
Month Year
MBS as Tax Exempt Bond Collateral (M.TEB)
Obtain a lower interest rate and significant savings over the life of the loan when combining the ease of our MBS execution with the benefit of tax exempt bonds.
Benefits
Close faster with our unique delegated model
Available for fixed-rate and variable-rate bonds
20-25 bps better pricing than traditional bond credit enhancement
Interest-only is available
Fannie Mae guaranteed direct pass through of principal and interest is more attractive to bond buyers
No minimum or maximum loan size
Competitive Advantage
Loan terms up to 30 years
Declining prepayment options OR yield maintenance
LTV’s up to 90%
Available for taxable as well as tax-exempt bonds
No master or special servicer with Life-of-loan servicing
Delegated underwriting model provides certainty of execution
Wide investor base offering attractive pricing due to the appeal of the MBS
The industry’s most experienced Affordable Housing experts
Presentation Title Goes Here

15. Inaugural Fannie Mae M.TEB Structure
Month Year
Inaugural Fannie Mae M.TEB Structure
$21,750,000 Illinois Housing Development Authority – Fullerton Court Apartments
Development Type: Acq/Rehab
Closing Date: January 26, 2015
Bond Rating: Moody’s “Aaa”
Term: Single 16 year Bond Maturity
Bond Rate: 3.00%
Bond Security: Fannie Mae MBS
Underwriter: RBC Capital Markets
Investors: CRA Investors, Insurance Companies and Money Managers
Redemption: “Yield Maintenance” 1st 10 years; Par Call Thereafter
Structure Savings:
Estimated Savings of BP over traditional Fannie Mae Credit Enhancement Structure
Estimated Savings of 5 Basis Points over Taxable Conventional Fannie Mae MBS
Borrower previously financed transactions using a Fannie Mae taxable conventional MBS for permanent financing and short term tax exempt cash collateralized bond to qualify development for 4% LIHTC. For a larger project – there was a desire to move away from the “dual transaction structure…”
Fannie Mae credit structures were examined. The M.TEB structure was selected with several modifications to previous transactions.
MBS to be purchased shortly after bond closing
Simple single maturity monthly pay bond structure
Rate on MBS same as Bond Rate
Traditional rating agency cash flows not required due to match of MBS payments to bond payments
MBS payments passed through to bondholders the next business day following receipt by Trustee
Disclosure benefits for bond purchasers as information on Fannie Mae MBS pool accessible on Fannie Mae website and Bloomberg
Structure expected to attract “cross-over” buyers from MBS market as well as traditional tax exempt bond and CRA investors
Pricing expected to more closely track spreads to 10 Year Tsy similar to conventional MBS pricing
Source: RBC Capital Markets
Presentation Title Goes Here

16. Flexible Application of M.TEB Structure
Month Year
Flexible Application of M.TEB Structure
New Construction
Reduced Occupancy Affordable Rehabilitation (ROAR)
M.TEB – Variable Rate with Structured ARM
Construction loan or letter of credit required
No Construction loan needed; rehab costs of up to $120,000 /unit
Term of 10 years (up to 18 years); LTV of 75%
Permanent bond pricing locked at issuance
Minimum occupancy of 50% and minimum DSC of 1.0% (interest-only)
Interest rate is established as the applicable index of 1 or 3 month LIBOR plus the Margin
Monthly payment of interest during construction phase
MBS Structure modified to provide Fannie Mae direct credit enhancement during rehab period which will convert to MBS upon completion of rehab
Interest Rate Cap Required for a minimum of 5 years
Upon Conversion, MBS will be delivered to the Trustee and secure the Bonds
Increased leverage opportunities when underwritten to as-improved rents
Varying Prepayment Options – One year lock-out followed by prepayment premiums starting at 1-4%
During the Construction phase, Borrower will pay debt service on the bonds and construction loan or letter of credit
Interest rate savings similar to full MBS Tax Exempt Pass Through Bond execution
Presentation Title Goes Here

17. Index Bonds Credit Enhancement of variable rate tax-exempt
Month Year
Index Bonds
Credit Enhancement of variable rate tax-exempt
Index Bonds or Floating Rate Notes (FRNs) with
no put option, liquidity support or remarketing costs.
Key Terms and Benefits
10-30 year terms
Amortization up to 35 years
LTV up to 85%
Minimum DSCR of 1.00x at the Underwriting Rate
Interest rate cap period – 5 years
New money issues, refundings or credit substitutions
Marshall Field Garden Apartments
2015 Illinois Housing Development Authority – Variable Rate Issue
$102,000,000
10 year term
SIFMA Index bps
4% LIHTC – Acquisition & Rehab
Katy Perry - ROAR
All property types, not just LIHTC
Flexibility with YM/Prepayment vs. FRE TEL – min 10 yrs.
For Mod Rehab that requires greater flexibility
Allows tenant relocation
Begins as a cash loan before stabilization, then securitized
Rehab costs between typically up to $120,000 per unit
Quoted 6 transactions to-date for $77MM from 3 Lenders and 4 Sponsors; first close in January 2016.
Key Benefits:
One loan for construction and permanent financing
During rehab, allows:
occupancy minimum of 50%
interest-only
DSCR minimum of 1.0x (IO basis) or 0.75x amortizing
Fannie Mae offers a SIFMA Floating Rate Note Product that may be applicable on certain multifamily financings.
Structure would typically not be ideal for a tax credit development given the term is less than 15 years. However, the relatively low leverage of the bond issue and financial strength of the borrower provided comfort to the tax credit investor.
RBC Capital Markets recently discussed a derivation of this structure for a proposed new construction development. RBC proposed the following:
Fannie Mae SIFMA Floating Rate Notes with a term of 3-10 years;
A bank would provide a construction loan to the borrower at closing. (A letter of credit could also be used, but Fannie Mae downgrade requirements may favor a construction loan);
Fannie Mae would credit enhance the bonds from bond closing to simplify the credit analysis for investors and the bonds would qualify for a “Aaa” rating. Fannie’s credit enhancement fee would be reduced during the construction phase when the Bank’s loan proceeds will cash-collateralize Fannie Mae’s credit enhancement;
The Fannie Mae Credit Enhancement will secure principal and interest on the bonds including the balloon payment. A SIFMA interest rate cap is obtained to protect against rising rates.
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18. Index Bonds: Pricing Considerations
Month Year
Index Bonds: Pricing Considerations
Pricing of Floating Rate Notes is structured as a “spread” to the SIFMA or LIBOR index
Pricing spreads change over time similar to the way credit spreads change
In the current environment, investors generally do not want maturities beyond seven years
Current pricing is approximately SIFMA basis points in high demand states and SIFMA basis points in other states
Higher
Demand
Tighter Spreads
Large volume of high net worth investors or high income taxes =
As you saw on the Marshall Field’s example, pricing for Initial Acquisition/Rehab Fannie Mae 10 year SIFMA Floating Rate Note (“FRN”) in April, 2015 was SIFMA basis points
FRNs issued in states with a large volume of high net worth investors and/or income taxes will trade at tightest spreads.
Tax exempt bonds issued in states with income tax are generally exempt from the tax making them more valuable. The following are examples of high demand states:
High Demand States
New York
California
Connecticut
New Jersey
Maryland
Virginia
North Carolina
Georgia
Presentation Title Goes Here

19. Reduced Occupancy Affordable Rehab (ROAR)
Month Year
Reduced Occupancy Affordable Rehab (ROAR)
Immediate, permanent financing for major rehab allowing tenant displacement; no separate construction loan.
Benefits
Interest-only payments during the renovation period
Proceeds are fully funded at closing
Up to 90% of “as stabilized” LTV during the rehab period
During rehab:
Minimum occupancy of 50%
Minimum DSCR of 1.0x (interest-only basis)
Rehab costs up to $120,000 per unit
Increased leverage opportunities when underwritten to as-improved rents.
Competitive Advantage
One loan solution for construction and permanent financing
Initial cash execution and our single asset security allow for flexible loan terms and prepayment structures that can be tailored for any transaction
Competitive pricing and terms
Experienced, dedicated affordable team partners with you to provide expert solutions
Katy Perry - ROAR
For Mod Rehab that requires greater flexibility
Allows tenant relocation
Begins as a cash loan before stabilization, then securitized
Rehab costs between typically up to $120,000 per unit
Quoted 6 transactions to-date for $77MM from 3 Lenders and 4 Sponsors; first close in January 2016.
Key Benefits:
One loan for construction and permanent financing
During rehab, allows:
occupancy minimum of 50%
interest-only
DSCR minimum of 1.0x (IO basis) or 0.75x amortizing
Presentation Title Goes Here

20. Reduced Occupancy Affordable Rehab (ROAR) Key Terms
Month Year
Reduced Occupancy Affordable Rehab (ROAR) Key Terms
Terms
Eligible Properties
Stabilized MAH; rehab range typically $40K-$120K/unit
Eligible Sponsors
Strong sponsors with demonstrated tenant-in-place rehab track record
LTV
Up to 90% “as stabilized”
Term
5-30 years
Amortization
Up to 35 years
Rehab Period
12-18 months
Minimum Loan Size
$5 million
Loan Disbursement
Fully funded at closing; rehab funds escrowed by Lender
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21. Tabaré Borbón Customer Account Manager Multifamily Affordable Housing
Visit the new Multifamily website today!