<html><head></head><body style="word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space; "><div><blockquote type="cite"><div style="word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space; "><div><blockquote type="cite"><div style="word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space; "><p class="date">September 13, 2012</p><span class="h1">Fannie Mae Launches New HomeRight Community Relief Program</span><h2 class="subhead">New Guidelines Streamline Housing Market Recovery and Relief to Borrowers
</h2><div><a href="http://fanniernae.com/portal/about-us/media/corporate-news/2012/5820.html">http://fanniernae.com/portal/about-us/media/corporate-news/2012/5820.html</a></div><dl><dt><h3>Andrew Wilson</h3></dt><dt><h4>202.752.5168</h4></dt></dl><p>WASHINGTON,
DC – Today, Fannie Mae (FNMA/OTC) announced that it will launch
HomeRight, a three point community relief program designed to help more
homeowners avoid foreclosure and improve community and housing market
stability. As the weak housing market continues to be a burden on
overall economic recovery, this new program will address the factors
inhibiting market stabilization, such as negative equity held by many
homeowners and the large quantity of vacant and REO properties held in
Fannie Mae and other lenders' portfolios.</p><p>Through participation in the Home Affordable Modification Program -
Principal Reduction Alternatives (HAMP - PRA), as well as Fannie Mae's
new pilot program HomeRight, servicers will be required to write down
mortgages owned by Fannie Mae to reflect their current market value. As
recent Fitch Ratings analysis shows, using principal reduction (PR) to
reduce loan-to-value ratio (LTV) increases the borrowers' ability to
pay, and the re-default rate is significantly lower for loans modified
with principal reduction, compared with loans modified only with payment
reduction options. Principal reduction will also help create more
demand in the housing market, as having equity in the home allows for
young families to trade up to bigger places, and for empty nesters to
downsize more easily.</p><p>HomeRight will also address the growing backlog of REO properties by
implementing new initiatives designed to reduce the number of vacant
homes on the market, balance the decline in home values, and provide
stability to displaced homeowners affected by foreclosure. Homeowners
who were foreclosed on between 2007-2011 will have the option to buy
back their former home -- or, if unavailable, a comparable home in the
same neighborhood -- at its current market value. Lease options will
also be implemented for those unwilling or unable to explore
homeownership. These lease options will also be extended to current
homeowners facing foreclosure who wish to remain in their home, but can
no longer afford to own. A new help desk and call center will be created
to help administer this new program and ensure its efficiency.</p><p>Finally, through the HomeRight program, Fannie Mae is working with
non-profit and community organizations dedicated to providing affordable
housing to the growing number of displaced families facing
homelessness. These organizations will be provided grants to be used in
the rehabilitation of homes in distressed markets, which once completed
will be turned over to those communities to provide long term affordable
housing options.</p><p>These new initiatives will continue Fannie Mae's goals of fostering a
liquid, efficient, competitive, and resilient national housing finance
market, while protecting the American dream of homeownership and stable
housing options for all.</p>
<div class="disclaimer"><p><em>Fannie Mae exists to expand affordable
housing and bring global capital to local communities in order to serve
the U.S. housing market. Fannie Mae has a federal charter and operates
in America's secondary mortgage market to enhance the liquidity of the
mortgage market by providing funds to mortgage bankers and other
lenders so that they may lend to home buyers. Our job is to help those
who house America.</em></p></div></div></blockquote></div><br></div></blockquote></div><br></body></html>