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'2 6!Sector alternative ton    .-@Times New Roman-. 02 giFannie Mae and Freddie Mac   &    & .-@Times New Roman-.  2 gp.-@Times New Roman-. ?2 %the Mortgage Holding Subsidiary model '        " .--- @ ! t---- $ttww--'@Times New Roman-. +2 Commercial bank, thrift,    .-@Times New Roman-. *2 #or other financial firm,     .-@Times New Roman-. 32 Ksubject to capital regulation        .--- @ !E4---- $bb--'@Times New Roman-. 2 eMortgage Holding    .-@Times New Roman-. !2 Subsidiary (MHS):l    .-@Times New Roman-. !2  A wholly owned orl  .-@Times New Roman-. 2 majority   .-@Times New Roman-.  2 - .-@Times New Roman-. 2 ownedi .-@Times New Roman-. 2 > subsidiary   .-@Times New Roman-. 2 +not subject to    .-@Times New Roman-. "2 4capital regulation   .-@Times New Roman-. $2 -Bank originates andf      .-@Times New Roman-. %2 sells home mortgages      .-@Times New Roman-. *2  to its MHS and services,       .-@Times New Roman-. 2 Mthose mortgages   .---&8 RRRRRMUMM--'@Times New Roman-. *2 Bank invests sufficient,      .-@Times New Roman-. +2 equity capital to enable       .-@Times New Roman-. *2 its MHS to maintain at e        .-@Times New Roman-. *2 least an AA debt ratinge     .---&8 --'@Times New Roman-.  2 XNon .-@Times New Roman-.  2 ~-.-@Times New Roman-. 2  insured, non   .-@Times New Roman-.  2 -.-@Times New Roman-. 2  government   .-@Times New Roman-.  2 e-.-@Times New Roman-. 2 m guaranteed   .-@Times New Roman-. F2 [*debt funding raised in the capital markets            .---%--'--%--'--&8 --'@Times New Roman-. 2 Figure 1    .---&8 VwVVUUUUwUvUvVvVwVwYUQY--'--&8 wwvvvww--'՜.+,0(    On-screen ShowELY AND COMPANYy  Times New RomanArial WingdingsDefault DesignMicrosoft Graph ChartdA Private-Sector alternative to Fannie Mae and Freddie Mac the Mortgage Holding Subsidiary model3Balance sheet composition of an MHS (not to scale)_Spread of the 30-year mortgage commitment rate over LIBOR swap rates Weekly data for 2001-2003Slide 4Lowering origination costs significantly reduces the effective mortgage interest rate Based on a 30-year, $100,000, 6% fixed-rate mortgageAnnual reduction in effective interest rate by lowering mortgage origination costs Based on a 30-year, $100,000, 6% fixed-rate mortgage  Fonts UsedDesign TemplateEmbedded OLE Servers Slide Titles _ϔwBert ElyBert Ely  !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVXYZ[\]^_`abcdefhijklmnpqrstuvyRoot EntrydO)PicturesCurrent UseroSummaryInformation(W@PowerPoint Document( DocumentSummaryInformation8g