FREDDIE MAC EARLY RATE-LOCK OPENS THE DOOR TO MORE AFFORDABLE RENTALS IN THE BRONX

Parkchester North Was Able To Refinance Existing Construction/Rehab Mortgage

McLean, VA – Freddie Mac announced today that it's Early Rate-Lock (ERL) Delivery was the instrument used to unlock the door to more affordable housing with the recent $90 million mortgage Freddie Mac purchased from the Community Preservation Corp. (CPC). Freddie Mac's purchase of the mortgage enabled the borrower, the unit owners of the Parkchester North Condominium, to refinance the existing construction/rehabilitation mortgage on their condominium community.

Parkchester North is comprised of nearly four thousand affordable units and is located in the east Bronx, New York. Built in the late thirties as moderate-income rental housing, Parkchester was the largest privately built planned community in America at that time.

The Parkchester Preservation Company (PPC), a joint venture between two private investors and the for-profit arm of CPC (CPC Resources), purchased unsold condominium units in 1998 and worked with CPC to close a construction loan that enabled the property's building systems to be completely modernized. The result is today's revitalized community, which includes many beautifully restored public spaces and major retail chains.

"We appreciate Freddie Mac's willingness to work with us to create a financing package that meets the needs of this vibrant and critical community in the Bronx," said Michael D. Lappin, spokesperson for PPC and president and CEO of CPC. "Without the renovation, this entire section of the Bronx was in danger of collapse."

"Freddie Mac and CPC were able to work together with us to bring this transaction to a successful close. We believe Parkchester residents and the surrounding community will greatly benefit from what has been accomplished through our collective efforts," said Harry Brown, president, Parkchester North Condominium.

"We're delighted to continue to support efforts to provide good-quality, unsubsidized affordable housing for homeowners and renters with low or moderate incomes in this community. Freddie Mac's Parkchester loans to date total about $220 million against 12,271 units, which includes a $130 million permanent loan we provided in 2003 for extensive rehabilitation of building systems in the Parkchester South Condominium," said Adrian Corbiere, Freddie Mac's senior vice president of Multifamily Sourcing.

Since the introduction of the Freddie Mac Program Plus network of multifamily loan originators and servicers in 1993, Freddie Mac has provided financing for over 30,000 multifamily properties totaling more than $75 billion. That volume represents more than two million rental units across the country, a large portion of which are affordable to people whose income levels are at or below area median income" including newly established households, single-parent households, large family households at lower salaries as well as other renters.

Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to support homeownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage passthrough securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible for one in six homebuyers and nearly four million renters in America.

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