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April 2008 Selling System Enhancements

New selling system capabilities enhance your Guarantor execution options

With our recent selling system enhancements we introduced new capabilities to allow you to deliver more of your loans to Freddie Mac through our Guarantor execution options in the selling system. With these system changes, you have additional flexibility for your ARM sales and the ability to sell a variety of fixed-rate mortgages with minimum pool amounts of $250,000.

New life cap flexibility for certain ARMs sold through our WAC ARM Guarantor execution

Based on customer requests, we've added the capability to sell more ARM products using the WAC ARM Guarantor execution in the selling system by expanding the range of life caps for certain ARMs from 5 or 6 percent to less than or equal to 6 percent. This additional flexibility allows you to:

• Enhance your WAC ARM Guarantor execution
• Expand your ARM pooling options for the loans you sell to us

As a result of our expanded range of life caps, we've updated the name of all impacted ARMs to reflect this new flexibility. For example, a nonconvertible 5/1 1-year Constant Maturity Treasury (CMT)-indexed ARM with a 2/2/5 or 6 cap structure is now identified as, "nonconvertible 5/1 1-year CMT-indexed ARM 2/2/2-6."

Expand your securities execution options when you sell mortgages under our fixed-rate Mini Guarantor path in the selling system

We've expanded our selling system capabilities to allow you to sell mortgages under our fixed-rate Mini Guarantor execution, where the minimum pool amount is $250,000. The following fixed-rate mortgages are eligible for mini-Gold Participation Certificate Pools:

• 15-, 20-, 30-, and 40-year fixed-rate mortgages
• 15- and 30-year FHA/VA mortgages
• 5- and 7-year balloon/reset mortgages

In addition, we implemented new delivery requirements to better identify loans you sell to us:

In our February 20 Single-Family Seller/Servicer Guide (Guide) Bulletin, we announced new delivery requirements for your third-party origination (TPO) mortgages. With this release, we updated the selling system to allow you to deliver mortgages using these new requirements.

• Effective April 21, you can begin delivering your loans using the following SCCs: SCC 211 = Correspondent TPO Mortgage or SCC 212 = Mortgage Broker TPO Mortgage. These SCCs will replace SCC 002 (Wholesale Home Mortgage). The new SCCs must be delivered on and after August 4. The selling system will allow you to identify your loans with SCC 211, 212 or 002. However, you can deliver only one of the three SCCs, not a combination of the three.

• You will continue to identify your Retail Mortgages (mortgages not Wholesale Home Mortgages) using SCC 018. There are no changes to our requirements for delivering a Retail Mortgage. You will continue to identify your Retail Mortgages with SCC 018 even when the new TPO mortgage SCC requirements take effect August 4.

• We've updated the definition of a Correspondent, Mortgage Broker, and added a definition of Retail Mortgage. You should familiarize yourself with these new and revised definitions available in the Guide Glossary. The news definitions will be effective August 4.