Freddie Mac REO UpdateFreddie Mac REO Update

The U.S. Conference of MayorsThe U.S. Conference of Mayors7878thth Annual Meeting Annual Meeting

Eric WillEric WillSr. REO Sales DirectorFreddie Mac / REO (HomeSteps)

June 11, 2010

© Freddie Mac

Freddie Mac REO UpdateFreddie Mac REO Update

2

HomeSteps is a branded programcreated by Freddie Mac to market its REO

assets, while reducing the negative stigma of foreclosed homes.

Our BrandOur Brand

© Freddie Mac

Freddie Mac REO UpdateFreddie Mac REO Update

3

Our MissionOur Mission

To effectively manage Freddie Mac’scredit losses on its REO in a way that

benefits communities and provides affordable housing opportunities.

© Freddie Mac

Freddie Mac REO UpdateFreddie Mac REO Update

4

Our MissionOur Mission

Credit LossesCommunity Stabilization

Home Ownership

© Freddie Mac

Freddie Mac REO UpdateFreddie Mac REO Update

5

60,000 Homes Nationwide60,000 Homes Nationwide

85% Urban / MSA85% Urban / MSA

15% Rural15% Rural

Our PortfolioOur Portfolio

Investor29%

Owner Occupant71%

2009 Sales2009 Sales

© Freddie Mac

Freddie Mac REO UpdateFreddie Mac REO Update

6

Good Neighbor PracticesGood Neighbor Practices

Properly secure and maintain homes

Bring homes to FHA standards whenever possible

Use well-trained, licensed, and experienced vendors

Price homes at fair market value

Deploy Regional Area Managers in high volume areas

Perform regular inspections to ensure properties are properly being maintained

Establish Preservation & Maintenance programs in volume markets

© Freddie Mac

Freddie Mac REO UpdateFreddie Mac REO Update

7

Disposition StrategiesDisposition Strategies

Listing in MLS via experienced listing brokers

www.homesteps.com

Repair Strategies

Develop incentives for owner occupants and real estate agents

(i.e. buyers closing costs, home warranties, advance HOA payments, commission bonuses, etc.)

Auctions & Bulk Sales (Used as a last resort. Very small percentage of homes sold via this channel.)

© Freddie Mac

Freddie Mac REO UpdateFreddie Mac REO Update

8

Community StabilizationCommunity Stabilization

National Community Stabilization Trust “First Look”

NSP Down Payment Assistance Programs

NSP / Affordable / Owner Occupant Auctions (Las Vegas, Inland Empire, Phoenix)

REO Rental Program

Home Buyer Education (Believing In A Place Called Home)

© Freddie Mac

Freddie Mac REO UpdateFreddie Mac REO Update

9

Community PartnershipCommunity Partnership

Build strong relationships with individual cities (e.g. City of Chicago)

Ensure vacant property registration

Participate In joint affordable initiatives with cities and non-profits

Partner with government, industry, and real estate organizations on REO issues

(OCC, NCST, NAREB, NAHREP, AREAA, REOMAC, NAR, NFHA, etc.)