Fannie Mae-No Politics (FNMA)

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The following is a press release from Standard & Poor's :

OVERVIEW
-- We assigned an overall ABOVE AVERAGE ranking to Freddie Mac as a
multifamily mortgage loan master servicer. The outlook is stable.
-- This is the first time we assigned a servicer ranking to Freddie Mac .
-- We based our opinion on the company's seasoned management team,
effective technology, solid audit and compliance controls and comprehensive
servicer oversight program.

NEW YORK ( Standard & Poor's ) June 7, 2013 -- Standard & Poor's Ratings Services
today assigned its ABOVE AVERAGE ranking to Freddie Mac as a multifamily
mortgage loan master servicer. The ranking pertains to the Asset Management &
Operations group (AMO) within the Freddie Mac Multifamily division. The
outlook is stable for the master servicer ranking, and the company's financial
position is Sufficient.

The mission for the multifamily division of Freddie Mac is to promote an ample
supply of affordable rental housing by purchasing mortgages collateralized by
apartment buildings with five or more units. Freddie Mac Multifamily has been
originating and servicing multifamily mortgages for over 20 years. Since 1993
Freddie Mac has provided more than $290 billion in financing for approximately
60,000 multifamily properties. The mortgages are purchased from approved
Program Plus Seller/Servicers and Targeted Affordable Housing Correspondents,
according to Freddie Mac guidelines.

It has over 500 employees with headquarter offices located in McLean, Va. , and
four regional offices. Freddie Mac has been a market leader in the multifamily
mortgage industry and continued to provide liquidity in the wake of the
financial collapse of 2008.

On Sept. 6, 2008 , the Federal Housing Finance Agency (FHFA) placed Freddie Mac
and Fannie Mae in conservatorship. During conservatorship FHFA said Freddie
Mac would continue business as usual. The goals of conservatorship are to
restore confidence in the government-sponsored entities (GSEs), enhance the
GSE's capacity to fulfill their mission and mitigate the systemic risk that
has contributed to market instability.

KEY RANKING FACTORS
Strengths:
-- Employee training and development program;
-- Historically low mortgage loan delinquency rates;
-- Integrated and effective technology systems;
-- Financial support and implicit guarantee from the U.S. government;
-- Solid audit and control program;
-- Experienced senior management team; and
-- Comprehensive sub-servicer (seller/servicer) oversight program.
Weaknesses:
-- Longer than average audit cycle (24-36 months);
-- Homogenous multifamily property portfolio, no commercial property
types; and
-- Currently in conservatorship with an uncertain future.

Freddie Mac Multifamily AMO does not act as the master servicer under any CMBS
securitized transactions so their servicing obligations differ slightly from
those typically observed at other CMBS master servicers we rank. Nonetheless,
AMO has historically performed many similar servicing and asset management
activities for the Freddie Mac loan and bond portfolio. Further, the master
servicing functions currently being performed by AMO are consistent with our
published servicer ranking criteria.

As of Dec. 31, 2012 , AMO actively managed a portfolio of 8,276 loans totaling
$90.6 billion . This does not include over $37 billion in multifamily mortgages
that Freddie Mac purchased through its seller/servicer network and then
securitized under the Freddie Mac K-Deal program. For its portfolio loans, AMO
performs the master servicing functions and oversees 33 seller/servicers which
handle the day-to-day primary servicing and borrower customer service.

OUTLOOK
Our outlook on the master servicing ranking is stable. AMO has well
established capacity, processes and systems and a demonstrated ability to
administer the Freddie Mac Multifamily mortgage loan portfolio. Freddie Mac is
in conservatorship, and therefore has limited opportunity to control its
destiny. However, we believe that adequate resources and commitment exists to
ensure servicing standards and customer service levels are consistently
achieved during our 12 to 18 month ranking surveillance cycle.

RELATED CRITERIA
--
"https://www.globalcreditportal.com/ratingsdirect/showArticlePage.do?object_id=
2088106&rev_id=15&sid=879405&sind=A&", Sept. 21, 2004
--
"https://www.globalcreditportal.com/ratingsdirect/showArticlePage.do?object_id=
5360120&rev_id=2&sid=879405&sind=A&", April 16, 2009

RELATED RESEARCH
--
"https://www.globalcreditportal.com/ratingsdirect/showArticlePage.do?object_id=
4821536&rev_id=49&sid=879405&sind=A&"


Primary Credit Analyst: Timothy E Steward, New York (1) 212-438-3799;
[e-mail]
Secondary Contact: Mark I Goldberg, New York 212-438-7779;
[e-mail]


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