Federal Home Loan Mortgage Corporation - Page 36

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               Conclusion                                                             
               Because the terms and the economic substance of the prior              
          approval purchase contracts indicate that petitioner and                    
          originators entered into option contracts, we hold that                     
          petitioner properly treated the 0.5-percent nonrefundable portion           
          of the commitment fees as option premiums.                                  
               To reflect the foregoing,                                              
                                                  An appropriate order will           
                                             be issued.                               

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