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Product Overview: Reference REMIC® Securities

Freddie Mac created the Reference REMIC® security in 2005 to demonstrate an ongoing commitment to product innovation. Reference REMIC securities offer investors a structured alternative to a traditional 30- or 15-year mortgage-backed security and build on the success of Freddie Mac’s Guaranteed Maturity Class (GMC) product.

Reference REMIC securities provide many of the key features that have become the hallmark of Freddie Mac’s Reference suite of products. At the core of the Reference REMIC security are attributes that promote liquidity and transparency.

What is a Freddie Mac Guaranteed Maturity Class?

Freddie Mac Guaranteed Maturity Classes (GMCs) are structured mortgage-backed securities with a shortened stated final maturity. Backed by either Gold PCs or hybrid ARMs, Freddie Mac GMCs are generally issued with guaranteed final payment dates ranging from three to 12 years.

The GMC feature is available on a variety of tranche types. At the guaranteed final date, the investor is paid any outstanding principal on the tranche, plus 30 days accrued interest.

Benefits

More Liquid than Other Structured Securities
Reference REMIC securities provide more liquidity than traditional structured securities. Each Reference REMIC security contains at least one Guaranteed Maturity Class (GMC) with a minimum GMC tranche size of $1 billion. GMC securities will be distributed through an underwriting syndicate selected from Freddie Mac’s REMIC dealer group. The syndication process ensures broad dealer sponsorship and secondary market support.

Reference REMIC securities offer an unmatched array of attractive features

 Freddie Mac Reference REMICPrepayment Linked NotesSyndicated CallablesABS
Daily Closing Prices
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Some

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Guaranteed Shortened Final Maturity
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Syndicate Led
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Some

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Issuance Calendar
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Fully Collateralized by Mortgages/MBS
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Collateral Disclosed Pre-Pricing
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Re-REMIC/MACR Eligible
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No Upsize (or "Tapping") Post-Pricing
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Transparent Structures and Pricing
Reference REMIC securities are backed by PCs with pre-disclosed characteristics, making performance analysis more straightforward.

More Predictable Securities
Each Reference REMIC is backed by Freddie Mac Gold PCs, the details of which will be disclosed prior to pricing the GMC offering. All Reference REMIC GMC tranches have limited average life extension risk as a result of the GMC feature that states a maximum final maturity date.

Key features of Reference REMIC securities

Reference REMIC Product Details
Underlying PCs PCs underlying the offered GMC are disclosed prior to pricing
Guaranteed Maturity Class (GMC) Varying maturities based on market conditions and collateral
Structure Announced during pre-marketing period
Par Coupon Issued with the closest coupon that trades at a discount to par
GMC Tranche Size Minimum of $1 billion*
Offering Frequency Calendar-based monthly optional issuance windows
Re-REMIC Eligibility Offering dependent
MACR Eligibility Offering dependent

*From time to time, market conditions may warrant a minimum tranche size below $1 billion.

Investor Tools

"Reference REMIC securities provide many of the key features that have become the hallmark of Freddie Mac’s Reference suite of products."

Freddie Mac takes pride in providing timely customer support. A variety of resources are available to provide investors with the most comprehensive information about Reference REMICs.

Investor Inquiry (800) 336-3672 or Investor_Inquiry@freddiemac.com

Investor Inquiry is Freddie Mac's team of securities specialists who answer hundreds of calls each month from dealers and investors of mortgage securities products. Investor Inquiry answers a wide range of questions from general questions about disclosure to security-specific inquiries. Dealers and investors can reach Investor Inquiry at (800) 336-3672 or Investor_Inquiry@freddiemac.com from 9:00 a.m. to 5:00 p.m, EST, Monday through Friday.

Mortgage Securities Website

Freddie Mac provides a comprehensive array of data, including tax information and historical information for mortgage-related securities and structured products on its website. The latest Offering Circulars and their supplements, as well as new issue announcements, are also available online. To access securities information, visit Freddie Mac's website at www.FreddieMac.com/mbs.

Bloomberg (FMAC <GO>)

A wide range of information is available on Freddie Mac’s Bloomberg page including recently priced REMICs, collateral availability, reference pools, estimated REMIC production and other mortgage securities issuance reports.

For additional information about Freddie Mac Reference REMICs, visit the Reference REMIC page on Freddie Mac's website at www.freddiemac.com/mbs/html/product/reference_remics.html or contact Investor Inquiry at (800) 336-3672.

This product overview is not an offer to sell or solicitation of an offer to buy any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac's Information Statement and related supplements.

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