FREDDIE MAC BUYS $90 MILLION PORTFOLIO OF MORTGAGES FROM PRIMARY CAPITAL ADVISORS USING PREMIER LEASE-UP EXECUTION

All 1,420 Units Are Affordable To Low- and Moderate-Income Borrowers

McLean, VA – Freddie Mac (NYSE:FRE) announced that it has recently purchased a portfolio of mortgages totaling $90 million from Primary Capital Advisors. Freddie Mac's purchase enabled the borrower to lock its long-term, fixed-rate financing at a competitive rate while the properties were still being leased. The mortgages are secured by five properties in the Carolinas, Georgia, and Texas, consisting of a total of 1,420 garden-style units, built within the last three years. One hundred percent of the units are affordable to low- and moderate-income renters. Half of the tenants in the Columbia, SC, units are military personnel.

"Freddie Mac provided the ability to lock the interest rate earlier, before 80 percent occupancy. While these were softer markets, the strong, repeat borrower fit our criteria as an experienced developer with excellent sponsorship and lease-up capabilities," said Michael McRoberts, Freddie Mac's Southeast Regional Office managing director. "We've modeled this new product to take more lease-up risk and even some construction risk in limited cases to provide permanent financing and a way to avoid interest-rate risk for our repeat borrowers on new construction."

"Freddie Mac did an excellent job of working quickly with us to structure a credit facility that met all of the borrower's needs, while not compromising credit quality. With rates being as low as they were over the summer, the borrower wanted to secure fixed-rate, nonrecourse financing on five pre-stabilized properties located throughout the Southeast and Southwest. Freddie Mac's speed and creativity left the other competitors well behind," said John Bray, director, Primary Capital Advisors.

Freddie Mac's Premier Lease-Up execution is for qualifying loans on newly constructed or substantially renovated, market-rate properties in lease-up and utilizes Freddie Mac's Extended Early Rate-Lock execution. Using this execution, the borrower can lock the interest rate well in advance of property stabilization prior to completion of construction and with occupancy as low as 40 percent. The execution may have up to an 18-month rate-lock period.

Since the introduction of the Freddie Mac Program Plus network of multifamily loan originators and servicers in 1993, Freddie Mac has provided financing for over 40,000 multifamily properties totaling more than $100 billion.

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 passthrough securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible for one in six homebuyers and nearly four million renters.

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