On December 29, 2011, the Federal Housing Finance Agency (FHFA), pursuant to the Temporary Payroll Tax Cut Continuation Act of 2011, Section 401 ("Act"), directed Freddie Mac and Fannie Mae ("GSEs") to increase guarantee fees by 10 basis points on all Mortgages delivered for inclusion into mortgage-backed securities pools. Additionally, FHFA directed Freddie Mac and Fannie Mae to increase the credit fee on whole loans by a similar amount. To meet the requirements of the Act, FHFA expects to announce plans for additional pricing increases in the future.

Investors will bury this fee into the base price by late January / early February to be ready for April securities.