DON’T BORROW TROUBLE^SM EDUCATION CAMPAIGN TO PREVENT PREDATORY LENDING LAUNCHED IN NORTHERN CALIFORNIA

Counseling Service and Help Line is Directed At Consumers Who Are Likely to Fall Prey to Financial Abuse

Sacramento, CA – At a press conference here today, a coalition of public and private participants launched a major public education campaign aimed at preventing predatory lending and other financial abuses in Northern California.

The City of Sacramento, Freddie Mac (NYSE: FRE), and the Home Loan Counseling Center (HLCC) are major participants in the new campaign which features an education and counseling service to help families avoid predatory lending scams such as exorbitant interest rates, excessive fees and pressuring tactics.

"Predatory lending practices attack the heart of our communities. These practices can strip away home equity and trap unwary borrowers in a dismal cycle that ultimately replaces homeownership with foreclosure," said Craig Nickerson, vice president of Expanding Markets at Freddie Mac. "Don't Borrow Trouble is a proven method to help stop predatory lending and to keep families in their homes, building wealth and strengthening communities."

Northern California's Don't Borrow Trouble^SM Campaign is also a multimedia strategy aimed at low- and moderate-income families who are vulnerable to predatory lending. By combining advertising and face-to-face consumer education and housing counseling, the Campaign helps consumers avoid abusive lending practices.

The City and County of Sacramento have become actively involved in anti-predatory lending activities.

"Predatory lending takes many insidious forms and has ruined the lives of people from all walks of life. The best way to avoid poor financial decisions is through education," said Councilwoman Lauren Hammond, with the City of Sacramento. "That is why I support the Don't Borrow Trouble campaign."

"Too often, our senior citizens and hard-working families fall victim to making the wrong choices when seeking a way to realize their homeownership dreams, or solve a short-term financial problem. Unscrupulous lending practices and quick cash services not only overburden those who can least afford it; but these kinds of questionable financing options also drain the vitality from our communities. Don't Borrow Trouble is an important information resource for all Sacramento County residents to help them choose the right path toward a bright and secure future," said Roger Dickinson Chair for the County Board of Supervisors for the County of Sacramento.

Advertisements have begun on Regional Transit buses and Sacramento radio stations, encouraging consumers to call the Northern California Don't Borrow Trouble help line at (916) 646-2004. It is hoped that individuals will use these resources for advice before they get into financial difficulty when purchasing a home, refinancing, consolidating debt, or taking out a home equity loan. The help line is also a resource for those who find themselves currently in trouble with foreclosure. The Home Loan Counseling Center will provide training to community and faith-based organizations and other groups as a way to reach people who are most likely to need information and assistance.

"Helping individuals and families be successful in life and in owning their home is the mission of The Home Loan Counseling Center. The collective efforts of Don't Borrow Trouble reach even further within the community to stop abusive lending practices through education and outreach. HLCC is pleased to play a lead role in this critical initiative," said Jennifer Harris, Executive Director of the Home Loan Counseling Center.

Organizations participating in the campaign are Wells Fargo Bank, U.S. Bank, River City Bank, American River Bank, Washington Mutual Bank, Sacramento Housing Redevelopment Agency, Human Rights Fair Housing, Legal Services of Northern California and USC Credit Union.

Pioneered in Boston by Mayor Thomas M. Menino and the Massachusetts Community and Banking Council, Freddie Mac is the principal sponsor of the program's expansion throughout the United States. Freddie Mac has brought the Don't Borrow Trouble campaign to more than 36 locations, and has received more than 30,000 inquiries to the Campaigns' help line.

Freddie Mac is a stockholder-owned corporation chartered by Congress in 1970 to create a continuous flow of funds to mortgage lenders. By supplying lenders with the money to make mortgages and packaging the mortgages into marketable securities, Freddie Mac sustains a stable mortgage credit system and reduces the mortgage rates paid by homebuyers. Over the years, Freddie Mac has made home possible for one in six homebuyers in America and two million renters.

###