A Message from the Chairman and CEO

Freddie Mac is a unique organization with unique responsibilities. In the last few years alone, we have acted to stabilize the market following 9/11, in the aftermath of Hurricane Katrina, and once again by addressing the liquidity crisis that grew out of the subprime mortgage market crisis. We make housing more affordable for families every day. And as a publicly held company, we deliver lasting value for our investors.

We are also an organization with unique reasons to insist on ethical conduct. As a government-sponsored enterprise (GSE), we have a special public trust. Our Board of Directors has approved this Code of Conduct as our guide to ethical standards of business conduct and decision-making. The Code is a statement of who we are and how we should conduct ourselves with co-workers, business partners, vendors, clients and customers – as well as competitors, financial institutions, regulators and all others we deal with in our business. It builds on our strong prior edition of the Code, by underscoring our commitment to strong risk management, adding new learning aids for employees, and reflecting key changes in law and Company policy.

As you read and absorb this Code of Conduct, give thought to its underlying principles: Do the right thing. Don’t cut corners. Treat others as you would like to be treated. Act at all times with integrity. And if in doubt about something not covered by an explicit rule in the Code, take the high road and obey its spirit.

This last principle bears explaining. No code of conduct can cover every situation. Compliance with its literal words may not always suffice. As a GSE, we have a special position that we must never compromise. Public trust takes a long time to build and a short time to breach. Accordingly, the guidance expressed in this Code should be considered minimum standards – the least you can do. If you have any questions about whether something might present a conflict of interest or raise other issues under the Code, please contact the Corporate Compliance Division.

Insisting on strong corporate governance and ethical standards is the right thing – and the smart thing – to do. Acting with integrity, even when not legally mandated, is good business practice. The Board, along with our entire senior management team, knows you understand how important ethical conduct is for this Company. And we are confident your commitment to Freddie Mac will enable us to keep playing a vital role – in good times and bad – for America’s families, the housing sector and the broader economy.

Thanks for all you do for Freddie Mac to fulfill our public trust.

Richard F. Syron
Chairman and CEO