FREDDIE MAC TO EXPAND DISCLOSURE ON PC SECURITIES

McLean VA – Freddie Mac (NYSE:FRE) today announced that the company expects to provide nine new loan-level disclosures and expand two existing disclosures on its single-family fixed-rate and adjustable-rate mortgage (ARM) Participation Certificate (PC) securities. Beginning in June 2008, Freddie Mac expects to provide the nine new disclosures and expand its Loan Purpose disclosure for all newly issued PC securities and for PC securities issued on or after December 1, 2005. Beginning no later than August 2008, Freddie Mac expects to expand its Third Party Origination (TPO) disclosure on all newly issued PC securities.

Freddie Mac expects to update its PC pool-level disclosures accordingly. However, the company will not provide the new Metropolitan Statistical Area (MSA) or Metropolitan Division disclosure at the pool level.

In addition, beginning in June 2008, Freddie Mac will also disclose Initial Interest Period on a pool-level only for all newly issued PC securities and for all applicable previously issued PC securities.

The company will continue to provide monthly loan-level updates to its single-family mortgage PC securities issued after December 1, 2005. Monthly updates to PC securities disclosures will also continue to be available at the pool level for new and previously issued PC securities.

"This latest expansion of Freddie Mac's loan- and pool-level disclosures demonstrates our continued commitment to providing the market a more transparent view of our mortgage-backed securities," said Mark Hanson, vice president of mortgage funding. "These expanded disclosures are timely, particularly in light of continuing volatility in the housing and mortgage markets, and we believe they will help investors better evaluate our securities and help support our mission to provide liquidity, stability and affordability to America's home financing system."

Freddie Mac's new loan-level variables will include:

Income Documentation Type – Yes (Verified / Waived) or No (Not Verified / Not Waived)
Asset Documentation Type – Yes (Verified / Waived) or No (Not Verified / Not Waived)
Employment Documentation Type – Yes (Verified / Waived) or No (Not Verified / Not Waived)
Original Combined Loan-to-Value (CLTV) Ratio
Number of Borrowers
First Time Homebuyer (FTHB) Flag
Mortgage Insurance Percentage
Metropolitan Statistical Area (MSA) or Metropolitan Division*
Original Debt-to-Income (DTI) Ratio

*MSA or Metropolitan Division will be provided on the loan-level only.

Freddie Mac's expanded loan-level variables will include:

Third Party Origination (TPO) – Broker, Correspondent or Retail Descriptor
Loan Purpose – Cash-Out or No Cash-Out Descriptor on Refinance Mortgages

Loan-level disclosure is available on the company's Web site at www.FreddieMac.com/mbs under "Security Lookup." Descriptions of the new loan-level variables are available at www.FreddieMac.com/mbs/docs/fs_lld.pdf [PDF 973K]. Additionally, disclosure calculations available at www.FreddieMac.com/mbs/docs/pc_algorithms.pdf [PDF 1.3M] will be updated to reflect calculations used to produce loan- and pool-level disclosures when the company begins providing the additional disclosures.

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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