AMERICA’S COMMUNITY BANKERS AND FREDDIE MAC RENEW ALLIANCE AGREEMENT

Scottsdale, AZ – America's Community Bankers (ACB) and Freddie Mac announced today during the ACB's National Real Estate Lending Conference & Marketplace that they have renewed their alliance agreement. The alliance package provides product, technology and execution solutions to help ACB members compete in a purchase-money market and put more borrowers into homes.

Dave Stevens, Freddie Mac senior vice president for Single Family Lending, said, "We're happy to renew our agreement with the ACB and offer community lenders a collection of exceptional alliance offerings. This is one more step that demonstrates Freddie Mac's continued commitment to community lenders. In a changing marketplace it's more important than ever that ACB members have the tools and options they need to compete in all market conditions, including the post-refinance market."

"We're delighted to renew our strategic alliance with Freddie Mac," said Curtis L. Hage, chairman of ACB Business Partners, Inc., ACB's for-profit subsidiary. "This relationship provides ACB member community banks with additional options and technology to expand homeownership opportunities so that we never have to turn away a qualified borrower." Hage, a past chairman of ACB, is chairman and CEO, Home Federal Bank, Sioux Falls, S.D.

Features of the alliance include:

Access to a variety of mortgage products including construction to permanent mortgages to help bankers gain business in a purchase market.
Set-up advantages for Mortgagebot's bank-branded website to originate mortgages and quickly underwrite them with Freddie Mac's Loan Prospector^® service.
Private-label subservicing for lenders who want to originate mortgages without the cost of new servicing operations.
Cash and guarantor loan selling executions—an important funding source for community lenders.
Exclusive training sessions on many Freddie Mac products and solutions, especially in the areas of technology and affordable housing.

More than 200 lenders have taken advantage of the alliance offerings since it was first announced in February 2002.

Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to support homeownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage passthrough securities and debt instruments in the capital markets. Over the years, Freddie Mac has opened the doors for one in six homebuyers and more than two million renters across America.

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