SECOND QUARTER 2014 HIGHLIGHTS

The Enterprises' Foreclosure Prevention Actions:

• Approximately 79,800 foreclosure prevention actions were completed during the second quarter, bringing the total to nearly
  3.3 million since the start of conservatorships in September 2008. About 2.7 million of these actions have helped troubled homeowners stay in their homes including nearly 1.7 million permanent loan modifications.
• Approximately 37 percent of all permanent loan modifications in the second quarter helped to reduce homeowners' monthly
  payments by over 30 percent.
• About a quarter of borrowers who received permanent loan modifications during the quarter had portions of their mortgage
  balance forborne.
• As of June 30, 2014, about 13 percent of loans modified in the second quarter of 2013 had missed two or more payments, one year after modification.
• Approximately 14,500 short sales and deeds-in-lieu were completed during the quarter, bringing the total to about 581,400
  since the start of conservatorships.

The Enterprises' Mortgage Performance:

• The number of 60+ days delinquent loans declined 5 percent to the lowest level since the start of conservatorships.
• The serious delinquency rate fell to 2.1 percent at the end of the quarter compared with 6.2 percent for Federal Housing
  Administration (FHA) loans, 3.4 percent for Veterans Affairs (VA) loans and 4.8 percent for all loans (Industry average).

The Enterprises' Foreclosures:

• Third-party sales and foreclosure sales fell 10 percent to 42,800 while foreclosure starts increased slightly to more than 85,500 in the second quarter.
• REO inventory declined 10 percent during the quarter to approximately 131,500, as property dispositions outpaced property
  acquisitions.