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Freddie Mac, SEC Reach Agreement to Settle Final Restatement-Related Investigation

McLean, VA – Freddie Mac (NYSE: FRE) today announced that it had reached an agreement with the U.S. Securities and Exchange Commission (SEC) to settle the SEC's investigation related to the company's restatement of financial results for the years 2000 through 2002. The proposed settlement is subject to final approval by the court. Under the terms of the proposed settlement, Freddie Mac neither admits nor denies allegations of federal securities law violations. The company also agrees to a payment of $50 million.

"We take these charges seriously, and that's why the Freddie Mac of today is a very different company than the Freddie Mac of the past," said Richard F. Syron, Freddie Mac's chairman and chief executive officer. "Today's agreement would resolve the last investigation related to the company's legacy restatement issues. This is another milestone enabling us to focus entirely on those things that are most important – further advancing our housing mission, effectively serving our customers and building our business for the future."

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.

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