FREDDIE MAC SETTLES WITH FEDERAL ELECTION COMMISSION

McLean, VA – Freddie Mac (NYSE: FRE) today announced that it has entered into a conciliation agreement [PDF 390K] with the Federal Election Commission (FEC), ending the FEC's investigation of political fundraising activities by former company executives in 2003 and prior periods. Under the terms of the voluntary settlement, Freddie Mac will pay a civil penalty of $3.8 million.
 
"Freddie Mac takes these issues, which relate to prior management of both the company and its Government Relations operation, very seriously," said spokesman David Palombi.  "The settlement announced today is part of the company's ongoing efforts to put behind us regulatory and legal issues dating back to 2003 and earlier."

In 2003 Freddie Mac retained an outside law firm to investigate the company's campaign finance law compliance. Freddie Mac voluntarily disclosed the findings of its outside counsel to the FEC and cooperated fully with the Commission's subsequent investigation.

The conciliation agreement will be posted on Freddie Mac's web site, www.FreddieMac.com.

Freddie Mac is a stockholder-owned company established by Congress in 1970 to support homeownership and rental housing. Freddie Mac fulfills its mission by purchasing residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than four million renters in America.

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