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Notice to Holders of Freddie Mac Securities Utilizing "BBA LIBOR"

May 2, 2015

Certain Freddie Mac securities accrue monthly interest based on the London interbank offered rate (“LIBOR”) where LIBOR was calculated using rates set by the British Bankers’ Association (the “BBA”).

The BBA recently announced that responsibility for the administration of LIBOR was transferred to the ICE Benchmark Administration Limited (“IBA”) on January 31, 2014.  Thereafter, IBA announced that as of February 3, 2014, it would be the primary source of LIBOR data, and that at the time of the transition, “ICE LIBOR” would be calculated using the same methodologies as what was previously known as “BBA LIBOR.”

As a result of the change in administration of LIBOR and the related announcements of the IBA, Freddie Mac has determined that for accrual periods beginning on or after February 11, 2014, Freddie Mac will continue to calculate LIBOR for existing securities using the method described in the applicable Offering Circular for rates set by the BBA, but henceforth all references to the BBA should be read to refer to the IBA.  Thus, any references to BBA LIBOR from February 11, 2014, going forward shall be deemed to refer to ICE LIBOR.        

Please contact Investor Inquiry at Investor_Inquiry@FreddieMac.com if you have any questions.

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