RENOVATING HOMES AND RESIDENT SERVICES ARE FOCUS OF FREDDIE MAC AND FREDDIE MAC FOUNDATION $5 MILLION NEW ORLEANS INVESTMENT

Continued Commitment to Help Low and Middle-Income Families Rebuild Their Lives

New Orleans, LA – Freddie Mac [NYSE: FRE] and the Freddie Mac Foundation will continue their Katrina relief efforts by committing a combined $5 million to New Orleans, specifically to help rehabilitate and rebuild housing as well as provide needed resident services for many low-to moderate-income families to stabilize their lives. The company and Foundation will make investments in organizations throughout the next year to support on-going, innovative and effective efforts.

"Part of our mission is to play a stabilizing role for housing. That's why we remain committed to helping Gulf Coast residents. We recognize that access to housing for all families is critical to New Orleans future vitality," explained Ralph F. Boyd, Jr., executive vice president, Freddie Mac, and chairman, Freddie Mac Foundation. "New Orleans has pockets of outstanding affordable housing projects evolving. To propel these forward, we plan to invest in a number of the non-profits that are leading the charge."

Louisiana Senator Mary Landrieu led a group of local dignitaries who attended the announcement ceremonies at the Forest Park Apartments, a property of the NHP Foundation, which is one of the groups receiving grant funds. She said the announcement of Freddie Mac and the Freddie Mac Foundation's continuing commitment comes at a critical time in Louisiana's recovery.

"So many groups and individuals have stepped up in incredible ways that it's difficult to single out anyone. However, what's important about Freddie Mac's most recent commitment is that it serves as a much needed reminder to the rest of the world that the Gulf Coast recovery is far from complete and that we will continue to need help for many years to come," Landrieu added.

Following Hurricanes Katrina and Rita, Freddie Mac and the Freddie Mac Foundation made sizeable contributions of money and resources to provide relief to the Gulf Region. Today, the region is still struggling. Two major issues hindering the region's rebirth are the lack of affordable housing and support services. Freddie Mac and the Foundation's new commitment will help solve these needs by investing in programs that are replicable and already yielding significant results.

To deal with the city's acute housing shortage, Freddie Mac plans to invest $2 million in helping renovate existing housing to spur revitalization. An initial investment includes $130,000 for the New Orleans Chapter of Rebuilding Together to support its work to renovate storm-damaged homes. This contribution will also enable Rebuilding Together to hire 11 new AmeriCorps members who will help more homeowners return to their houses. Also, Freddie Mac will send volunteers to the region to help Rebuilding Together fix homes for local families. Freddie Mac will announce additional neighborhood-based home renovation efforts during the summer.

The Freddie Mac Foundation, which is dedicated to bettering the lives of children and their families, is granting $3 million to a variety of non-profits that are helping children and families in the New Orleans community transition out of crisis. In particular, the Freddie Mac Foundation is focusing a large amount of its investments on resident services that connect families who are moving back into affordable rental housing to the social services that can help put and/or keep them on the path towards self-sufficiency. These commitments include:

Investing $900,000 to support Enterprise Community Partners' efforts to provide needed resident services to families returning to LaFitte public housing in the Treme neighborhood. Enterprise is partnering with Catholic Charities of New Orleans and Providence Community Housing to restore and develop new housing in and around LaFitte. With this grant, the three organizations will link more than 300 returning families to resources such as food, clothing, furniture, transportation, mental and physical heath care, tutoring and job training and other services that will promote self-sufficiency.
Supporting a resident services program in three housing projects that are being rehabbed and built by the NHP Foundation. This $900,000 grant will help stabilize families living in the 877 affordable housing units in these three facilities, which are located in Orleans Parish, Jefferson Parish, and the upper ninth ward. Services will include a pre-kindergarten program, parenting education, an after school enrichment program, and an on-site health and wellness program.

This new commitment of funds and volunteers follows significant investments immediately following Hurricanes Katrina and Rita. Freddie Mac and the Freddie Mac Foundation donated a combined $10 million in humanitarian assistance, with special emphasis on finding temporary or permanent housing for displaced families – including foster families. The company also provided mortgage payment and other relief to affected homeowners; helped mortgage servicers and lenders in the region reestablish their operations; and made a $1 billion investment in state and local mortgage revenue bonds, funding housing for as many as 10,000 families. In addition, the company provided temporary or permanent housing for more than 2,100 families.

Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to support homeownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage pass through securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible more than 50 million times, ensuring financing for one in six homebuyers and more than four million renters.

Created by Freddie Mac in 1991, the Freddie Mac Foundation is dedicated to creating hope and opportunity for children and their families. As the largest corporate funder in the Washington, DC metropolitan area, Freddie Mac and the Freddie Mac Foundation have invested more than $312 million in organizations serving the community. www.FreddieMacFoundation.org

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