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consideration of Treasury’s commitment to provide funds to us under the terms and conditions set forth in the senior
preferred stock purchase agreement. The senior preferred stock purchase agreement was subsequently amended on September
26, 2008, May 6, 2009, December 24, 2009 and August 17, 2012. See “Business—Conservatorship and Treasury Agreements
—Treasury Agreements” for a description of the terms of the senior preferred stock purchase agreement, the senior preferred
stock and the warrant, including the revisions to the agreement and the senior preferred stock set forth in the August 2012
amendment to the agreement.
As of December 31, 2013, we had received an aggregate of $116.1 billion from Treasury under the senior preferred stock
purchase agreement, and the remaining amount of funding available to us under the agreement was $117.6 billion. Through
December 31, 2013, we had paid an aggregate of $113.9 billion to Treasury in dividends on the senior preferred stock. Our
dividend payment on the senior preferred stock for the first quarter of 2014 will be $7.2 billion.
Treasury Making Home Affordable Program
In February 2009, the Obama Administration announced its Homeowner Affordability and Stability Plan, a plan to provide
stability and affordability to the U.S. housing market. Pursuant to this plan, in March 2009, the Administration announced the
details of its Making Home Affordable Program, a program intended to provide assistance to homeowners and prevent
foreclosures. One of the primary initiatives under the Making Home Affordable Program is the Home Affordable
Modification Program, or HAMP, which is aimed at helping borrowers whose loan is either currently delinquent or at
imminent risk of default by modifying their mortgage loan to make their monthly payments more affordable. In addition to
our participation in the Administration’s initiatives under the Making Home Affordable Program, Treasury engaged us to
serve as program administrator for loans modified under HAMP and other initiatives under the Making Home Affordable
Program pursuant to a financial agency agreement between Treasury and us, dated February 18, 2009. Our principal activities
as program administrator include:
• implementing the guidelines and policies of the Treasury program;
• preparing the requisite forms, tools and training to facilitate efficient loan modifications by servicers;
• creating, making available and managing the process for servicers to report modification activity and program
performance;
• calculating incentive compensation consistent with program guidelines;
• acting as record-keeper for executed loan modifications and program administration;
• coordinating with Treasury and other parties toward achievement of the program’s goals, including assisting with
development and implementation of updates to the program and initiatives expanding the program’s reach;
• helping servicers implement the program; and
• performing other tasks as directed by Treasury from time to time.
In May 2013, the Administration announced an extension of HAMP for an additional year through December 31, 2015.
FHFA directed us to continue modifying loans under HAMP in accordance with the program’s extended guidelines, and our
role as program administrator has been extended accordingly.
Under our arrangement with Treasury, Treasury has agreed to compensate us for a significant portion of the work we have
performed in our role as program administrator for HAMP and other initiatives under the Making Home Affordable Program.
We expect we will have received an aggregate of approximately $334 million from Treasury for our work as program
administrator from 2009 through 2013, as well as an additional amount of approximately $81 million for this period to be
passed through to third-party vendors engaged by us for HAMP and other initiatives under the Making Home Affordable
Program. We expect to continue to receive reimbursements from Treasury for our work as program administrator for HAMP
and other initiatives under the Making Home Affordable Program in future years, even after the termination of HAMP,
through the completion of our role as program administrator.
Treasury Housing Finance Agency Initiative
In October 2009, we entered into a memorandum of understanding with Treasury, FHFA and Freddie Mac that established
terms under which we, Freddie Mac and Treasury would provide assistance to state and local housing finance agencies
(“HFAs”) so that the HFAs could continue to meet their mission of providing affordable financing for both single-family and
multifamily housing. Pursuant to this HFA initiative, we, Freddie Mac and Treasury have provided assistance to the HFAs
through two primary programs: a temporary credit and liquidity facilities (“TCLF”) program, which was intended to improve
the HFAs’ access to liquidity for outstanding HFA bonds, and a new issue bond (“NIB”) program, which was intended to
support new lending by the HFAs. We entered into various agreements in November and December 2009 to implement these