To: SPI Staff

From: Robert Klein

RE: FHLMC Exhibit 57 Clarifications

Several months ago, in an effort to reduce overallowable requests, Freddie Mac published Exhibit 57 ( Exhibit57.pdf), identifying new allowable amounts for various services.  Safeguard has been in communication with Freddie Mac representatives to clarify their expectations with respect to several of these allowables.  Below is a summary of the clarifications we have received and the policies we will be implementing.

Securing ? One knob lock is to be installed on the front door of each unit at a property.  Any necessary lock changes on secondary doors, detached garages, outbuildings, gates, and other openings that are not accessible from the main structure will require prior approval.

Yard Maintenance ? The regional timeframes defining grass-cut seasons in the FHA guidelines will be followed.

Winterization ? The regional timeframes defining winterization season in the FHA guidelines will be followed.  Freddie Mac has indicated that winterizations may be completed outside of these timeframes as local weather warrants.

If you have any questions about these points, please speak with your supervisor or contact Kathy Cogan (kathy.cogan@safeguardproperties.com) at ext. 1394.