On December 21, 2017, written agreements between the Consolidated Revenue Fund and each corporation amended the terms of the respective senior preferred share certificates issued under the SPAS to allow each corporation to hold a capital reserve of $3 billion on a quarterly basis. Under the 2017 written agreements, each corporation paid a dividend to the Consolidated Revenue Fund equal to the amount whose net worth exceeded $3 billion at the end of each quarter. These conditions applied to the payment of the dividend dated December 31, 2017 and to dividend payments for each quarter thereafter until the signing of the written agreements dated September 30, 2019. FHFA Administrator Mel Watt issued a statement regarding the 2017 letters of agreement when they were announced. C. In consideration for Buyer`s commitment, Seller has agreed to sell 1,000,000 Priority Preferred Shares to Buyer in the form of seller`s Senior Preferred Shares variable, which is attached to Exhibit A of the Amended and Amended Agreement, with an initial liquidation preference of $1,000 per share. For each dividend period from January 1, 2013 to December 31, 2017 inclusively, the amount of the dividend for a dividend period means the amount by which the net amount of assets at the end of the fiscal quarter immediately preceding less the amount of the applicable capital reserve exceeds zero. For each dividend period beginning on January 1, 2018, the dividend amount for a dividend period means the amount by which the net amount of assets at the end of the immediately preceding fiscal quarter exceeds zero. In any event, the net amount of assets means (i) the total assets of the Company (such non-binding assets and any amount not covered thereof) as recorded in the Company`s balance sheet on the applicable date specified in this Certificate in accordance with GAAP, less (ii) the total liabilities of the Company (such liabilities without any obligation with respect to the Company`s share capital, including this certificate), as disclosed in the Company`s balance sheet as of the date of applicability specified in this certificate, which has been prepared in accordance with GAAP. The amount of the applicable capital reserve is understood at the time of determination for each dividend period from 1 January 2013 to 31 inclusive. December 2013 $3,000,000,000; and for each dividend period that occurs in each 12-month period thereafter, $3,000,000,000 reduced by an equal amount for each of those 12-month periods up to and including December 31, 2017, so that for each dividend period beginning on January 1, 2018, the amount of the applicable capital reserve is zero. For the avoidance of doubt, if the calculation of the dividend amount for a dividend period does not exceed zero, no dividend amount may be accumulated or payable for that dividend period.

On January 14, 2021, the Federal Housing Finance Agency (FHFA) and the U.S. Department of the Treasury announced changes to preferred share purchase agreements (PSPAs). The PSPA govern the financial relationship between the Treasury as the primary preferred shareholder and investor and Fannie Mae and Freddie Mac (the GSEs). As part of the PSPAs, which were completed the day after the GSE entered the conservatory, the Treasury promised capital support to GSEs to « give confidence to the financial markets and ensure the continuous flow of mortgages ». Treasury holds more than 5% of the outstanding common shares of our common shares as a result of the warrant we issued to Treasury on September 7, 2008. Discussions regarding the beneficial ownership of our common shares and our transactions with the Treasury are included in form 10-K 2011 under Certain Relationships and Related Transactions and Independence of the AdministratorTransactions Involving Related Personal Transactions with the Treasury and are incorporated herein by reference. Regular commitment fees. With effect from 1. In January 2013, the periodic commitment fees provided for in the agreement will be suspended as long as the above-mentioned changes to the provisions on the payment of dividends remain in force. .