Freddie Mac to Offer Reverse REMIC Giant PC Securities

For Immediate Release

March 26, 2009
Contact: corprel@freddiemac.com
or (703) 903-3933

McLean, VA – Freddie Mac (NYSE: FRE) announced today that beginning with March 2009 REMIC settlements, the company will offer Reverse REMIC Giant PC securities, a new mortgage-related security intended to provide liquidity to the U.S. residential mortgage market and new options for investors.

The Reverse REMIC program permits a pro-rata portion of all outstanding Freddie Mac REMIC security classes from a previously issued REMIC group – which, in aggregate, constitute a pass-through from the mortgage collateral backing the original REMIC group – to be recombined into a Pass-Through ReREMIC class. This pass-through Re-REMIC class in turn becomes the collateral backing a new Freddie Mac Giant PC security that is eligible collateral for all Freddie Mac resecuritization programs. Additionally, if the collateral backing the original REMIC met Securities Industry and Financial Markets Association (SIFMA) TBA (“to be announced”) market good-delivery guidelines at origination, the new Giant security also will meet those same good-delivery guidelines.

“Freddie Mac Reverse REMIC Giant PC securities are designed to provide a new, additional dimension of liquidity to the residential mortgage-backed securities market,” said Mark Hanson, vice president for mortgage funding. “Historically, remaining tranches in REMIC securities lacked the liquidity sought by investors. Freddie Mac Reverse REMIC securities provide a new alternative investment vehicle by converting them into Freddie Mac Giant PC securities.”

Beginning with March 30 REMIC settlements, Freddie Mac will issue 15-, 20- and 30-year Reverse REMIC Giant PCs under the following prefixes:

Z4: 30-year Reverse REMIC Giant PC
Z5: 15-year Reverse REMIC Giant PC
Z6: 20-year Reverse REMIC Giant PC

Additionally, 40-year, 10/20 Initial Interest Fixed-Rate, 100% Relocation Mortgages, Reduced Minimum Servicing, and Prepayment Penalty Reverse REMIC Giant PCs are available thru the following, existing prefixes:

K3 40-year Giant PC
H0 10/20 Initial Interest Fixed-Rate Giant PC
N3 30-year 100% Relocation Giant PC
M3 15-year 100% Relocation Giant PC
P5 30-year Various Prepayment Penalty Giant PC
P6 15-year Various Prepayment Penalty Giant PC
L0 30-year Reduced Minimum Servicing, 12.5bps
L4 15-year Reduced Minimum Servicing, 12.5bps
K0 30-year Reduced Minimum Servicing, <12.5bps
K1 15-year Reduced Minimum Servicing, <12.5bps

This announcement is not an offer to sell any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac’s Annual Report on Form 10-K for the year ended December 31, 2008, filed with the Securities and Exchange Commission (“SEC”) on March 11, 2009, and all documents that Freddie Mac files with the SEC pursuant to Section 13(a), 13(c) or 14 of the Securities Exchange Act of 1934, excluding any information “furnished” to the SEC on Form 8-K.

Freddie Mac’s press releases sometimes contain forward-looking statements. A description of factors that could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements can be found in the company’s Annual Report on Form 10-K for the year ended December 31, 2008 and its reports on Form 10-Q and Form 8-K, filed with the SEC and available on the Investor Relations page of the company’s Web site at www.FreddieMac.com/investors and the SEC’s Web site at www.sec.gov.

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.

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