FREDDIE MAC STREAMLINED ACQUISITION FINANCING AVAILABLE IMMEDIATELY

McLean, VA – Freddie Mac announces that, effective immediately, its customers can offer the Freddie Mac Streamlined Acquisition Financing^SM to new borrowers seeking acquisition loans. The product extends the Freddie Mac Streamlined Refinace benefits to contract purchasers of Freddie Mac-financed properties.

"This new product will help our Seller/Servicers close acquisition loans more quickly and leverage Freddie Mac's portfolio advantages," says Mitchel W. Kiffe, Freddie Mac vice president of production and sales. "That should be very attractive to borrowers seeking acquisition financing."

The advantages of choosing Streamlined Acquisition Financing are:

Reduced documentation and lower costs, which could include:
- No appraisal
- No engineering report
- No environmental report
- Reduced property financial documentation
Quicker loan review and approval. Streamlined Acquisitions can be completed in about half the time it takes to originate most new loans.

The benefits to the new borrower include a portfolio retention incentive in an amount equal to up to 1 percent of the unpaid principle balance (UPB) on Freddie Mac's current loan with the existing borrower and third-party report waivers. The third-party report waivers are the same waivers that would have been available to the existing borrower and are found on the Streamlined Refinance checklist.

Any portfolio retention incentive paid to the new borrower may be provided in one of the two following methods, at the option of the new borrower: Freddie Mac will buy the loan from the Seller/Servicer with a buyup to reflect the amount of the portfolio retention incentive payment or Freddie Mac will lower the net spread on the new loan to represent the portfolio incentive payment that would have otherwise been paid in cash. (or you could shorten this to say: "The economic incentive will be in the form of a buyup at purchase or a reduced spread." I'm not sure which description Mitch and Legal prefer.)

Eligible properties include garden, mid-rise and high-rise apartments and cooperatives with minimum occupancies of 90 percent for 90 consecutive days.

The underwriting process and investment decision involved with the new loan will be similar to those used where Freddie Mac is refinancing the loan with the existing borrower. Full standard underwriting due diligence would need to be performed on the new borrower and principals.

Since the introduction of the Freddie Mac Program Plusâ network of multifamily loan originators and servicers in 1993, Freddie Mac has provided financing for over 48,000 multifamily properties totaling more than $147 billion.

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-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible more than 50 million times, ensuring financing for one in six homebuyers and more than four million renters.

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