ALLEGHENY COUNTY CAMPAIGN LAUNCHED TO HELP CONSUMERS AVOID PREDATORY LENDING PRACTICES

Consumers Have New Foreclosure Prevention Ally

Pittsburgh, PA – At a press conference here today, a coalition of private and public organizations headed by the Pittsburgh Community Reinvestment Group (PCRG) and supported by Freddie Mac (NYSE: FRE), are kicking off the Don't Borrow Trouble® Allegheny County campaign. This public education campaign is aimed at preventing predatory lending practices and protecting home ownership in Allegheny County.

The coalition urges consumers to call the Don't Borrow Trouble help line at 866-907-2285. The hotline is staffed by trained professionals who can offer free assistance to individuals seeking information about purchasing a home, refinancing, consolidating debt, taking out a home-equity loan and mortgage foreclosure prevention. Individuals can also be referred to appropriate legal or financial experts.

"Across the nation, increasing numbers of individuals are facing foreclosures or defaults," said Congressman Mike Doyle (PA-14), "I encourage individuals who think they may be in over their heads to call the Don't Borrow Trouble helpline for advice. I commend the numerous public and private organizations who worked together to bring this valuable resource to the Allegheny County community."

"Studies show that 50% of home owners with delinquent mortgages don't call their lender. What they need to know is that there is help. We urge home owners that are having difficulties with their mortgage to seek help and call the Don't Borrow Trouble hotline," said State Senator Jim Ferlo, (PA-38).

"Predatory lending has the potential to debilitate first time buyers by stripping away their home equity. Luckily, it is something that homeowners can avoid by knowing what they should look for in a good lender. It is through initiatives like the Don't Borrow Trouble program that we can help educate our communities to ensure they don't fall victim to these malicious ploys. I am proud to take part in such a valuable program," said State Representative Thomas Petrone, (PA-27).

Steven B. Shivak, executive director of PCRG, added, "PCRG is thrilled working with Freddie Mac to launch the newest Don't Borrow Trouble campaign in Allegheny County. The additional recognition, credibility and resources brought by this collaboration means PCRG will be able to reach out and assist more homeowners than ever before."

Freddie Mac is the principal sponsor of Don't Borrow Trouble's expansion throughout the United States and has brought the campaign to more than 50 locations across the country. The Don't Borrow Trouble Allegheny County campaign also uses brochures, posters, television public service announcements, print advertising and workshops to educate consumers who are most vulnerable to predatory lending practices, including the elderly, minorities and low- to moderate-income individuals. By combining advertising and face-to-face consumer education and housing counseling, the campaign helps consumers avoid abusive lending practices, such as exorbitant interest rates, excessive fees and pressuring tactics.

"Predatory lending practices attack the heart of our communities. These practices can strip away home equity and trap unwary borrowers in a dismal cycle that ultimately replaces homeownership with foreclosure," said Craig Nickerson, vice president of Expanding Markets for Freddie Mac. "Don't Borrow Trouble is a proven method to help stop predatory lending, keep families in their homes, build wealth and strengthen communities. These organizations should be commended for banding together and combining their resources to educate consumers on the perils of predatory lending practices."

Allegheny County Chief Executive Dan Onorato, added, "I strongly support the efforts of PCRG to eradicate predatory lending throughout Allegheny County. I am pleased to support this effort to bring the Don't Borrow Trouble campaign to our communities."

Jim Matthews, co-chair of the Anti-Predatory Lending Initiative Advisory Committee and senior vice president, and corporate CRA manager for National City emphasized that the local lending institutions that partner with the PCRG are responsible lenders, committed to building long term relationships with consumers by offering a broad range of banking and loan products in support of home ownership. "We applaud the efforts of the PGRC, Freddie Mac and all the participants in this broad-based coalition and condemn the practices that deceive, defraud or treat customers unfairly," he said.

Predatory lending practices strip equity away from homeowners by repeatedly refinancing a loan within a short period of time and charging high points and fees with each refinance; packing a loan with single premium credit insurance products like credit life insurance and not adequately disclosing the inclusion, cost or any additional fees associated with the insurance; or charging excessive rates and fees to a borrower who qualifies for lower rates and fees.

Members of the Don't Borrow Trouble Allegheny County campaign are: Pittsburgh Community Reinvestment Group, City of Pittsburgh, Allegheny County Government, Freddie Mac, National City, PNC Bank, Dollar Bank, Allegheny Valley Bank, Parkvale Bank, Pennsylvania Housing Finance Authority, Action Housing Inc., Iron and Glass Bank, Mellon Financial Corp., Neighborhood Legal Services Association, Neighborhood Housing Services Inc., Sky Bank, Bloomfield-Garfield Corp., Fineview Citizens Council, Garfield-Jubilee Association, Highland Park Community Development, Hill Community Development Corp., Lincoln-Larimer Community Development Corp., Spring Garden Neighborhood Council, Citizens Bank, ESB Bank, Fidelity Savings Bank, First National Bank, Northwest Savings Bank, Allegheny County Recorder of Deeds, Pennsylvania Department of Banking, Federal Reserve Bank of Cleveland's/Pittsburgh Branch, Fannie Mae, Fair Housing Partnership, Urban League of Pittsburgh and University of Pittsburgh Law Clinic.

Don't Borrow Trouble was pioneered in Boston by Mayor Thomas M. Menino and the Massachusetts Community and Banking Council.

Freddie Mac is a stockholder-owned company established by Congress in 1970 to support homeownership and rental housing. Freddie Mac fulfills its mission by purchasing residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than four million renters in America.

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