SFR 2012-1 Chicago: Transaction Summary As part of the Fannie Maes SFR REO 2012-1 offering of eight sub-portfolios

of residential real estate owned (REO) properties, including tenant-occupied units and vacant single family residential properties, Fannie Mae awarded one of the sub-portfolios Chicago, IL to Cogsville Capital Partners Fund I, LP (Cogsville), a diverse-owned investor, in a structured sale transaction. On September 27, 2012 (Closing Date), Fannie Mae sold to Cogsville an interest in the equity cashflows of a newly created limited liability company (SFR 2012-1 Chicago LLC, or LLC) which holds 94 properties transferred to the LLC by Fannie Mae. Fannie Mae has retained an interest in the equity cashflows of the LLC. Cogsville is the Managing Member of the LLC, responsible for managing the operations of the LLC. The equity interest retained by Fannie Mae (Initial Member Interest) entitles Fannie Mae to receive 90% of the distributions to LLC equity until Fannie Mae has received $8,385,512.00 (Shift Threshold), after which Fannie Mae is entitled to receive 50% of the distributions to LLC equity. The equity interest purchased by Cogsville (Managing Member Interest) entitles Cogsville to receive 10% of the distributions to LLC equity until the Shift Threshold has been distributed to Fannie Mae, after which Cogsville is entitled to receive 50% of the distributions to LLC equity1. In addition to receiving distributions on its equity interest, Cogsville will also receive an asset management fee of 20% of gross rental income actually collected, with such fee to be used to compensate Cogsville for managing the entity and provision of asset management and property management services. The purchase price paid by Cogsville for the Managing Member Interest was $2,096,378.00, which resulted in an estimated transaction valuation to Fannie Mae of $11.8mm, or 86.2% of Third Party Valuation (as described below). A Working Capital Reserve to finance working capital expenses and a Replacement Reserve to finance property maintenance, repairs, and improvements were funded upfront by Fannie Mae and Cogsville and over time by cashflow generated by the LLC. The transaction is designed to promote home price stability, improve quality of housing stock, and enhance rental inventory of markets by utilizing a rent and hold strategy. During the initial three year period of the venture, the number of properties that may be sold is limited, and the sale price for any property sold by the LLC during such time must meet or exceed a related minimum price threshold. Further, all properties must be maintained in accordance with applicable legal standards and requirements. In order to assure a smooth transition for existing tenants, Cogsville provided a property management transition plan detailing steps to be taken in connection with their assumption of property management responsibilities from existing property managers. To assist tenants with credit repair, the LLC will offer HUD-approved housing and credit counseling to current and new tenants free of charge. Fannie Mae will receive periodic reporting and business plans from the LLC and Cogsville, and, together with a third party verification agent engaged on Fannie Maes behalf, Fannie Mae will monitor certain activities of the LLC. Credit Suisse was Financial Advisor to Fannie Mae on the Fannie Mae SFR REO 2012-1 offering. LLC Structure and Portfolio Overview

Purchase Price for Managing Member Interest

Fannie Mae

Properties

SFR 2012-1 Chicago LLC

Cogsville

Initial Member Interest(A)

Managing Member Interest(B)

(A) 90% shifts to 50% at Shift Threshold, and to 70% if certain yield and cashflow thresholds are achieved by Cogsville (B) 10% shifts to 50% at Shift Threshold, and to 30% if certain yield and cashflow thresholds are achieved by Cogsville

Sub-Portfolio as of Closing Date # of Properties Chicago, IL 94

# of Units 111

Occupied Units Vacant Units 68 43

Third Party Valuation2 13,689,012

Certain yield and cashflow thresholds achieved by Cogsville, increase Fannie Maes interest to 70% from 50%, and reduce Cogsvilles to 30% from 50% Aggregate of individual property values from a third party provider based on an interior and exterior review of each property included in a transaction; Values were recent relative to the time of offering and were provided to potential investors with data room access during the offering process
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