"Every step of the way" – our commitment, in good and challenging times

The U.S. mortgage market undoubtedly faced some of its most trying times in 2007. As we move into 2008 the mortgage industry will likely face more challenges, and Freddie Mac remains as committed as ever to working closely with you every step of the way. Our goal is to provide you the business solutions you need, so that together, we can continue to make the dream of homeownership a reality – regardless of the market cycle we're in.

Despite the challenges of 2007, we delivered many solutions to help you create opportunities to reach potential homeowners, realize new possibilities that maintain and enhance your business, and preserve dreams by expanding successful homeownership options that put your borrowers into homes they can afford and keep.

Creating opportunities for more potential homeowners

With your valuable feedback, last year we enhanced our borrower outreach initiatives to help fulfill the homeownership aspirations of America's families. Today, we have more tools and resources that help you reach unique demographic groups so that we can better support your efforts in preparing all of your borrowers for successful homeownership.

• CreditSmart® now offered in five languages. We've expanded this award-winning financial literacy curriculum to include Chinese, Korean and Vietnamese translations, in addition to the English and Spanish versions.
• Mortgage documents translated into Spanish. In addition to our Spanish-based education initiatives, we now offer, jointly with Fannie Mae, 83 non-executable Spanish translations of Mortgage Uniform Instruments. These documents provide you with even more tools to reach – and better serve – this growing market.
• Loan Prospector® capabilities help you consider every borrower an opportunity. Loan Prospector offers you powerful capabilities in today's market. Additionally, it provides ready access to Freddie Mac's credit and purchase terms for a comprehensive set of products, including a variety of low down payment options.

Realizing new possibilities for your business

With today's market challenges and your input, we've taken steps to ensure you'll continue to have a source of liquidity and stability for a variety of mortgages.

• Home Possible® Mortgages expand your reach to first-time homebuyers and low- to moderate-income borrowers. With a combination of low down payment options, flexible credit terms, and sound underwriting, Home Possible Mortgages are playing even a larger role in today's challenging market. Read more about the business possibilities that Home Possible Mortgages can bring in a related article in this issue of Single-Family News.
• Full range of execution capabilities and capital markets expertise for a variety of mortgages across the credit spectrum. We'll help you find the right solutions through a secondary market sale that address market challenges, balance sheet restructuring, and risk-based capital requirements. Together, we'll optimize your liquidity and profitability with a securitization or cash execution with options for servicing-released and servicing-retained cash sales and mandatory or best efforts commitments. With our full service, individualized approach to your needs, our team of experts will assist you with a portfolio strategy and sale solution to make your mortgage holdings work more effectively.

Preserving the dream of homeownership

We're fully committed to helping borrowers build and maintain their hard-earned homeownership equity. Through a continuing dialogue with servicers and others, we're focusing resources on early intervention initiatives and workout policies so that together, we can continue to successfully promote safe and sustainable homeownership.

• CreditSmart® adds a module on homeownership preservation. CreditSmart's newest curriculum module, "Preserving Homeownership: Protecting Your Home Investment," includes steps your borrowers can take to avoid foreclosure and tips on recognizing mortgage fraud.
• Avoiding Foreclosure toolkit offers more tools. Our online Avoiding Foreclosure toolkit, now available in five languages, includes additional materials to help lenders and servicers ensure that borrowers know the options that may be available to them if they have difficulty paying their mortgage.
• Don't Borrow Trouble® consumer awareness campaign. We've launched this national award-winning campaign in almost 50 communities, helping thousands of borrowers across the country learn how to avoid becoming a victim of predatory lending.
• Fraud awareness video on the Internet. We've produced a two-minute video that demonstrates how con artists can take advantage of borrowers facing foreclosure. View our video "Protect Yourself from Mortgage Fraud" on YouTube^TM video and help prevent troubled borrowers from losing their homes to fraudulent schemes.

Whether the market is on the upswing or is experiencing uncertainty, you can count on Freddie Mac to be listening to your needs, working for your success and, making home possible every step of the way.