FREDDIE MAC TO CO-SPONSOR FORECLOSURE AVOIDANCE INITIATIVE WITH 14 TOP FINANCIAL INSTITUTIONS, NEIGHBORWORKS® AMERICA

Washington, DC – Freddie Mac (FRE), one of the nation's largest investors in residential mortgages, announced today it is joining 14 major financial institutions and the NeighborWorks® Center for Foreclosure Solutions to cosponsor a major new effort to help more borrowers across the country avoid foreclosure.

Freddie Mac has agreed to contribute funds towards the $1 million to the NeighborWorks Center to create a multi-pronged effort to boost the industry's capacity to provide effective foreclosure avoidance counseling, undertake new research and work with different public and private organizations to educate the public about foreclosure alternatives.

"We're joining this initiative is to send a very important message to America's late-paying borrowers: You don't have to lose your house. You do have options. But it is up to you to pursue them," said Ingrid Beckles, vice president of default asset management at Freddie Mac. "We are delighted to join NeighborWorks and the other co-sponsors to launch this promising new effort to show borrowers how to avoid unnecessary foreclosures."

Freddie Mac's decision to become a sponsor is based in part on findings from a 2005 company-sponsored study that found 61% of late-paying borrowers unaware there are workout options that could help them keep their homes and 64% unaware that housing counselors are available to help explain these options.  The study also found 74% of borrowers very interested in working with housing counselors to avoid foreclosure. Roper Public Affairs and Media, a division of GFK NOP, conducted the study.

Borrowers can find a comprehensive description of Freddie Mac workout options at www.FreddieMac.com. By working closely with lenders and non-profit organizations like NeighborWorks, Freddie Mac annually helps an estimated 50,000 financially troubled borrowers avoid foreclosure and stay in their homes.

The other co-sponsors include American General Financial Services, Inc., a member of American International Group, and ABN AMRO Mortgage Group, Inc., an indirect subsidiary of LaSalle Bank Corporation, Bank of America, Chase, Citigroup, Countrywide Home Loans, HSBC – North America, National City Mortgage Co., New Century Financial Corporation, Ocwen Loan Servicing, LLC, Option One Mortgage, Residential Capital Corporation, Washington Mutual and Wells Fargo Home Mortgage.

Freddie Mac is a stockholder-owned corporation established by Congress in support of home-ownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage passthrough securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible for one in six homebuyers in America and more than four million renters across America.

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