Table 4.—LOAN GUARANTEES: ASSUMPTIONS UNDERLYING THE 2008 SUBSIDY ESTIMATES (In percentages, unless noted otherwise) Composition of Subsidy Defaults, net of recoveries Interest Fees All other Loan maturity (years) Borrower rate Department of Agriculture Farm Service Agency: CCC Export Loan Guarantees: GSM 102 2.39 2.96 ...... -0.57 ...... 3 5.00 Facilities -0.05 4.12 ...... -4.17 ...... 5 5.00 Agricultural Credit Insurance Fund: Farm Operating—Unsubsidized 2.42 3.32 ...... -0.90 ...... 4 9.02 Farm Operating—Subsidized 13.34 2.29 11.05 ...... ...... 6 8.75 Farm Ownership—Unsubsidized 0.40 1.28 ...... -0.88 ...... 18 8.05 Rural Utilities Service: Water and Waste Disposal Loan Guarantees -0.82 ...... ...... -0.82 ...... 20 ...... Rural Housing Service: Community Facility Loan Guarantees 3.68 4.54 ...... -0.86 ...... 20 ...... Rural Housing Insurance Fund: Guaranteed 502 Single Family Housing, Purchase 1.20 3.20 ...... -2.00 ...... 29 ...... Guaranteed 502, Refinance 0.81 1.31 ...... -0.50 ...... 30 ...... Guaranteed 538 Multi-Family Housing 9.40 0.42 16.91 -7.94 ...... 36 7.82 Rural Business Cooperative Services: Business and Industry Loan Guarantees 4.32 7.33 ...... -3.01 ...... 17 9.44 NAD Bank Loan Guarantees 7.69 10.84 ...... -3.14 ...... 17 9.44 Renewable Energy Loan Guarantees 9.69 11.97 ...... -2.28 ...... 17 9.44 Department of Education Federal Student Aid: Federal Family Education Loan Program: Weighted Average of Total Commitments 1.07 0.87 1.92 -4.68 2.96 19 6.90 Subsidized Stafford 15.42 0.43 14.69 -2.25 2.55 9 6.52 Unsubsidized Stafford -3.73 0.37 -4.15 -2.38 2.43 9 6.46 PLUS -5.96 0.43 -5.14 -4.00 2.75 8 8.50 Consolidated -4.78 1.78 -1.58 -8.78 3.81 19 7.05 Department of Energy Energy Programs: Title 17 Innovative Technology Loan Guarantees ...... 14.95 ...... -14.95 ...... 30 6.50 Department of Health and Human Services Agency, Bureau, Program and Risk Category Subsidy rateHealth Resources and Services Administration: Health Centers Loan Guarantees: Health Facilities Construction Loans 3.41 3.41 ...... ...... ...... 20 8.25 Department of Housing and Urban Development Public and Indian Housing Programs: Indian Housing Loan Guarantees 2.42 3.42 ...... -1.00 ...... 30 6.50 Title VI Indian Housing Guarantees 12.12 12.12 ...... ...... ...... 20 6.50 Native Hawaiian Housing Loan Guarantees 2.42 3.42 ...... -1.00 ...... 30 6.50 Community Planning and Development: Community Development Loan Guarantees (Section 108) 2.25 2.25 ...... ...... ...... 10 5.30 Housing Programs: FHA General and Special Risk Insurance Fund: Multifamily Development -0.83 4.46 ...... -5.29 ...... 40 7.01 Section 221(d)(3) Cooperatives 5.67 12.58 ...... -6.91 ...... 40 5.33 Tax Credit New Construction -3.20 1.46 ...... -4.66 ...... 40 4.60 Apartment Refinance -2.75 1.98 ...... -4.73 ...... 35 6.73 Section 241 Supplemental Loans 2.99 10.12 ...... -7.12 ...... 30 4.93 Multifamily Operating Loss Loans 15.43 20.46 ...... -5.03 ...... 35 6.31 Housing Finance Authority Risk Sharing -1.25 2.09 ...... -3.34 ...... 38 5.72 GSE Risk Sharing -1.42 0.86 ...... -2.28 ...... 30 5.00 Health Care and Nursing Homes -0.68 5.41 ...... -6.10 ...... 40 7.07 Health Care Refinance -1.58 3.73 ...... -5.31 ...... 35 6.02 Hospitals -2.66 2.33 ...... -4.99 ...... 25 5.36 Other Rental -1.82 4.22 ...... -6.04 ...... 40 5.44 Section 234 Condominiums -0.88 2.68 ...... -3.56 ...... 30 6.79 Section 203(k) Rehabilitation Mortgage 1.89 5.63 ...... -3.74 ...... 30 7.73 Home Equity Conversion Mortgages -1.90 2.00 ...... -3.89 ...... 30 4.57 Title I Property Improvement 0.52 3.53 ...... -3.00 ...... 20 13.00 Title I Manufactured Housing 0.13 5.78 ...... -5.65 ...... 20 13.00 FHA Mutual Mortgage Insurance Fund: Mutual Mortgage Insurance Program -0.51 2.39 ...... -3.72 0.81 30 6.86 Government National Mortgage Association: Guarantees of Mortgage-Backed Securities -0.21 ...... ...... -0.21 ...... 30 9.00 Department of the Interior Bureau of Indian Affairs: Indian Guaranteed Loans 6.56 5.04 3.32 -1.80 ...... 16 9.00 Indian Insured Loans 4.14 5.04 ...... -0.90 ...... 10 9.00 Department of Transportation Office of the Secretary:Minority Business Resource Center 2.03 2.03 ...... ...... ...... 2 9.94 Federal Highway Administration: TIFIA Loan Guarantees 10.00 10.00 ...... ...... ...... 37 5.21 Federal Railroad Administration: Railroad Rehabilitation and Improvement Financing Guarantees ...... 3.81 ...... -3.81 ...... 25 5.14 Maritime Administration: Maritime Guaranteed Loan Program: Weighted Average 4.35 9.24 ...... -4.88 ...... 25 6.50 Department of Veterans Affairs Benefits Programs: Housing Guaranteed Loans -0.37 1.26 ...... -1.62 ...... 30 6.82 Guaranteed Loan Sale Securities 2.14 2.90 ...... ...... -0.76 30 6.43 International Assistance Programs Agency for International Development: Development Credit Authority (DCA): Loan Guarantees 4.88 5.86 ...... -0.98 ...... 7 4.91 Line of Credit 24.40 25.44 ...... -1.04 ...... 8 5.40 Overseas Private Investment Corporation: OPIC Loan Guarantees 2.74 11.03 ...... -8.30 ...... 9 7.30 OPIC Investment Funds -3.94 9.45 ...... -13.39 ...... 12 7.73 Small Business Administration General Business Loan Programs: 7(a) General Business Loan Guarantees ...... 3.37 ...... -3.37 ...... 13 9.53 Section 504 Certified Development Companies Debentures ...... 1.71 ...... -2.05 0.33 20 6.00 SBIC Debentures ...... 7.17 ...... -7.20 0.03 10 5.85 Secondary Market Guarantee ...... ...... ...... ...... ...... 20 7.19 Other Independent Agencies Export-Import Bank of the United States: Short, Medium, and Long Term Guarantees and Insurance Program: Risk Category A 1.41 3.07 ...... -1.67 ...... 7 6.60 Risk Category B -2.46 ...... ...... -2.46 ...... 7 6.60 4 Assumptions reflect an illustrative example for informational purposes only. The assumptions will be determined at the time of execution, and will reflect the actual terms and conditions of the * Nonzero amount rounds to zero, based on units for this column. 1 Lifetime defaults as a percentage of disbursements. 2 Recoveries as a percentage of lifetime defaults. 3 Recovery rate includes interest and penalties.UNDERLYING THE 2008 SUBSIDY ESTIMATES Loan Characteristics Grace period (years) Upfront fees Annual fees Other fees Default rate 1 Recovery rate 2 Percent guaranteed ...... 0.57 ...... ...... 3.49 ...... 98.00 ...... 4.17 ...... ...... 5.68 ...... 95.00 ...... 1.00 ...... ...... 4.28 7.40 90.00 ...... ...... ...... ...... 3.00 3.47 90.00 ...... 1.00 ...... ...... 2.19 27.42 90.00 ...... 1.00 ...... ...... ...... ...... 82.05 ...... 1.00 ...... ...... 5.98 2.59 86.05 ...... 2.00 ...... ...... 4.21 0.65 90.00 ...... 0.50 ...... ...... 1.65 0.58 90.00 ...... 1.00 0.50 ...... 79.80 ...... 90.00 ...... 1.88 0.25 ...... 12.36 33.23 78.22 ...... 2.00 0.25 ...... 15.35 25.38 80.73 ...... 1.00 0.25 ...... 20.70 27.60 78.43 * 1.98 0.40 ...... 11.61 3115.42 97.00 * 2.25 ...... ...... 11.65 3122.94 97.00 * 2.38 ...... ...... 10.05 3122.94 97.00 ...... 4.00 ...... ...... 4.48 3108.69 97.00 ...... 1.00 1.05 ...... 14.50 3108.10 97.00 4 414.95 ...... ...... 439.26 450.00 95.001 ...... ...... ...... 13.59 74.06 80.00 ...... 1.00 ...... ...... 6.70 2.53 100.00 ...... ...... ...... ...... 17.81 ...... 95.00 ...... 1.00 ...... ...... 6.70 2.53 100.00 ...... ...... ...... ...... 14.25 80.00 100.00 ...... ...... 0.45 0.45 18.38 72.32 100.00 ...... ...... 0.80 0.80 43.45 67.26 100.00 ...... ...... 0.45 0.45 9.81 74.94 85.00 ...... ...... 0.45 0.45 8.39 70.64 80.00 ...... ...... 0.80 0.80 13.80 ...... 100.00 ...... ...... 0.80 ...... 25.54 ...... 100.00 ...... ...... 0.50 0.50 11.16 82.57 90.00 ...... ...... 0.50 ...... 1.39 ...... 50.00 ...... ...... 0.57 0.57 13.88 51.72 100.00 ...... ...... 0.50 ...... 12.66 60.38 80.00 ...... ...... 0.50 0.50 6.38 63.38 100.00 ...... ...... 0.50 0.50 16.89 71.34 100.00 ...... 1.50 0.50 ...... 9.13 63.92 100.00 ...... 1.50 0.50 ...... 13.68 48.45 100.00 ...... 2.00 0.50 ...... 24.79 117.54 100.00 ...... ...... 1.00 ...... 4.97 15.00 90.00 ...... ...... 1.00 ...... 8.59 15.00 90.00 ...... 1.38 0.50 ...... 10.02 72.34 100.00 ...... ...... 0.06 0.02 ...... 99.77 100.00 ...... 2.00 ...... ...... 7.46 9.65 90.00 ...... 1.00 ...... ...... 7.46 9.65 90.00...... ...... ...... ...... 2.24 ...... 75.00 5 ...... ...... ...... 73.66 63.46 100.00 6 3.81 ...... ...... 30.52 95.00 80.00 ...... 4.88 ...... ...... 19.18 38.00 100.00 ...... 1.66 ...... 0.02 6.97 75.71 25.00 ...... ...... ...... ...... 4.25 ...... 100.00 5 0.43 0.78 ...... 13.57 ...... 50.00 ...... 0.50 1.00 ...... 57.48 ...... 50.00 4 0.50 1.25 ...... 24.06 40.00 100.00 11 0.50 1.25 ...... 16.31 ...... 100.00 ...... 2.02 0.49 ...... 6.95 50.66 66.95 ...... 0.88 0.17 ...... 3.39 42.51 100.00 ...... 3.00 0.72 ...... 31.01 76.39 100.00 ...... ...... ...... ...... ...... ...... 100.00 1 0.12 1.63 ...... 3.70 ...... 100.00 1 0.12 2.46 ...... ...... ...... 100.00 reflect the actual terms and conditions of the loan and guarantee contracts.