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For Immediate Release June
20,
2008
FREDDIE MAC TO TREAT MGIC, PMI, RADIAN AS TYPE I INSURERS FOLLOWING REMEDIATION PLAN REVIEWSPlans Intended to Help MIs Regain AA Ratings, Enhance Capital PositionsMcLean, VA – Freddie Mac today said it would continue to treat Mortgage Guaranty Insurance Corporation (MGIC), PMI Mortgage Insurance Co. (PMI) and Radian Guaranty, Inc. (Radian) as Type I Insurers under Freddie Mac's Private Mortgage Insurer Eligibility Requirements. Freddie Mac (NYSE:FRE) is one of the nation's largest investors in residential mortgages. Today's announcement follows Freddie Mac's review of the business and financial remediation plans the companies stated they are implementing to regain AA ratings from one or more rating agencies. Freddie Mac retains the right to rescind or modify this decision at any time. 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-related 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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