FREDDIE MAC ANNOUNCES CREDIT ENHANCEMENT OF $62.5 MILLION MORTGAGE FROM MMA FINANCIAL

Freddie Mac Flexibility Allows Borrower To Refinance Seniors Housing Continuing Care Retirement Center

McLean, VA – Freddie Mac (NYSE:FRE) announced that its ability to recently offer a flexible financing structure, involving a floating-rate bond credit enhancement, led to its recent credit enhancement of a $62.5 million mortgage from MMA Financial.  Freddie Mac's credit enhancement of the mortgage enabled the borrower, Presbyterian Homes and Services of Minnesota, to refinance existing debt and cover closing costs on Boutwells Landing, a seniors housing continuing care retirement center (CCRC) located in Oak Park Heights, MN.

The CCRC development offers independent living and assisted living/memory care. It comprises 410 units in 71 buildings, including townhomes, brownstones, and one main building on 67 acres. Oak Park Heights is 20 miles northeast of St. Paul in the St. Croix River Valley.

"The innovative financing on this pre-stabilized seniors housing campus involved a combination of an interest rate cap and an interest rate swap, care and service agreements, and a flexible entry fee structure that provided residents with a variety of rental payment options. As a result of Freddie Mac's ability to look at the big picture and understand complicated rent and entry fee structures, they were able to satisfy our clients immediate and long-term debt requirements," said Ken Dayton, senior vice president, MMA Financial.

"We were extremely pleased to complete the Boutwells financing. It was a complex transaction with lots of moving parts that got done efficiently and cost effectively. With the long-term credit enhancement commitment from Freddie, we feel we have the Boutwells campus positioned very well for the long term", said Mark Meyer, CFO, Presbyterian Homes and Services of Minnesota.

"It was a very collaborative effort between our regional offices, our Structured and Affordable Sourcing group, our Seniors Housing group, and MMA. The borrower was impressed that every person important to the deal traveled to see the facility and meet with them to work through any issues," said Rich Martinez, Central Regional Office managing director.

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.

###