Advanced. Mortgage Portfolio. Management. Mortgage Portfolio. Sale Options



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Advanced Mortgage Portfolio Management Mortgage Portfolio Sale Options

We offer you a dependable, competitive source of liquidity for your mortgage sales in all market conditions and geographic areas. Our team of experts is ready to work with you to develop a solid strategy that addresses immediate needs and long-term planning. By using our portfolio services, you ll make your mortgage holdings work more effectively, while enhancing your portfolio strategy in a changing market. More options for the loans you originate. As you look to the secondary market for profitable sale options for your holdings, we ll work with you to offer consistent, competitive bids for loans that you originate not just traditional fixed-rate mortgages. Asolid mortgage portfolio strategy Prepare for sale opportunities now or in the future. You ll strengthen your position by managing your portfolio to geographic risks and variations in local economies so you ll always be there to meet the needs of more families in the communities you serve. No matter the size of your institution, we ll help you assess how selling mortgage portfolios into the secondary market will help you manage these and other challenges: n Reduce credit risk. Many lenders have built up considerable risk concentrations due to a lack of geographic or originationyear diversification. You can transfer that risk to Freddie Mac, continue to service your borrowers loans, and take back a highly liquid Freddie Mac mortgage-backed security. n Fine-tune your balance sheet. Selling seasoned loans to Freddie Mac can help you address the challenges of rising interest rates. And while ARMs have less price volatility than fixed-rate mortgages, they still have plenty of interest rate risk from prepayments, especially as the ARM approaches its interest rate adjustment date. n Lower capital management risk. You can use the extra capital to support investments in additional earning assets, for acquisitions, expansion of your branch network, share repurchases and almost any asset or activity that can generate more revenue, income, and growth. As you assess the best ways to manage these challenges, our mortgage portfolio experts are here to assist you.

Whether you re a lender with a national or regional presence, or a community bank, credit union or depository institution, we ll help you position your mortgage holdings to reduce your risk exposure and enhance your profitability. Even if you ve never done business with Freddie Mac or sold into the secondary market, we ll work with you to meet your individual business needs. In most cases, it s as easy as starting with your loan data. We ll analyze your mortgage holdings and show you a variety of options to: We have solutions for you n Adjust your loan-to-deposit ratios and manage your risk-based capital requirements by choosing a securities sale option. Holding Freddie Mac securities requires less capital than holding whole loans. Or, consider a swap and sell to strengthen your liquidity. n Manage your balance sheet and restructure your holdings based on changing market conditions. n Determine more competitive options for the loans you re holding. Under our negotiated bulk sales transactions, we purchase a wide range of mortgage types and we ll provide you with a competitive bid for everything from fixed-rate mortgages and ARMs, to balloon/reset mortgages, and 1- to 2-unit mortgages.

Our team of portfolio experts is always available. Whether you re actively considering a portfolio sale, or simply want an assessment of your mortgage assets, our experts will tap into a combination of securitization and capital markets expertise, and cash transactions experience when working with you to develop a customized solution to meet your business objectives. A comprehensive approach toyour needs mortgage portfolio If you re looking for a market assessment, or just want to know your best options for managing your mortgage portfolio, our team of experts can help with: n Portfolio analysis of the loans in your portfolio and help you strengthen the value of individual portfolio segments. n Sale options using a securitization or cash execution that enhance liquidity and flexibility in any market condition. n Assistance in finding the right due diligence solution from the scrubbing of loan files to the delivery of mortgages to Freddie Mac. Discover the untapped potential in your mortgage portfolio now! A mortgage portfolio strategy isn t just a year-end issue. Our portfolio analysis service and sale options help you obtain maximum benefits today and position your mortgage holdings for future growth. Whether you re a secondary market officer, chief financial officer or otherwise responsible for your mortgage holdings, we can provide you with a customized portfolio management and sale solution using either a cash or securities execution. Should you decide to sell, we have resources ready to quickly address your needs and guide you through the entire process. Contact your Freddie Mac representative today and discover how you can benefit from our portfolio analysis and sale options. This brochure contains material of general interest. It is neither intended to be, nor does it constitute, investment advice.

8200 Jones Branch Drive, McLean, Virginia 22102 FreddieMac.com Publication Number 467 n October 2010