Fannie Mae and Freddie Mac Loan Modifications

1. Government will support low mortgage rates for Fannie Mae and Freddie Mac loans so homeowners will gain new access to refinancing and more importantly lower monthly payments.

2. Certain Fannie and Freddie loans either in their portfolios or in mortgage backed securities will be refinanced.  The Administration will provide guidelines by March 4, 2009. These certain loans will include loans where the first mortgage does not exceed 105% of the current market value.  Refinanced loans will be a 15- or 30-year loan with a fixed market rate of interest.

3. Government will continue to purchase Fannie and Freddie backed loans.