FREDDIE MAC ANNOUNCES TIER ONE MORTGAGE SERVICERS

Awards for Excellence in Investor Reporting and Default Management

McLean, VA – Freddie Mac today announced that 27 single-family mortgage servicers achieved Tier One performance rankings for both their superior investor reporting and default management during the same two or more quarters during 2003. The company also inducted 10 servicers into its 2003 Tier One Hall of Fame for achieving Tier One status for four consecutive years.

Freddie Mac ranks its servicers each month on the basis of several performance benchmarks that cover a wide range of activities, such as investor reporting and minimizing credit losses by helping delinquent borrowers overcome short-term financial difficulties and avoid foreclosure. Servicers are ranked in four tiers ranging from Tier One (superior results) to Tier Four (unacceptable results) based on their investor reporting and default management.

Servicers who achieve an overall top Tier One rating for at least two quarters in a year receive a number of benefits, including fee waivers, financial rewards and national recognition.

"Our Tier One Servicers have achieved this status through hard work, persistence and commitment to be the best," said Janet Eakes, vice president of Mortgage Sourcing Operations for Freddie Mac. "They helped thousands of families across America to remain homeowners and assisted their companies in achieving heroic levels of performance, efficiency and profitability."

The Tier One recipients are Alliance Mortgage Co.; AMCORE Mortgage, Inc.; Arvest Mortgage Co.; Bank of America Mortgage; Cendant Mortgage Corp.; Chase Home Finance; Chevy Chase Bank, FSB; Colonial Savings; Commercial Federal Bank; Countrywide Home Loans, Inc.; Doral Mortgage Corp.; Fifth Third Bank; First Horizon Home Loan Corp.; Guaranty Residential Lending, Inc.; HSBC Mortgage Corp. (USA); IndyMac Bank; M&T Mortgage Corp.; Matrix Financial Services Corp.; National City Mortgage Co.; Principal Residential Mortgage, Inc.; Regions Mortgage; Sovereign Bank; SunTrust Mortgage Inc.; U.S. Bank Home Mortgage; Ulster Savings Bank; Washington Mutual Bank, FA; and Wells Fargo Home Mortgage, Inc.

The Hall of Fame recipients are Alliance Mortgage Co.; Bank of America Mortgage; Chevy Chase Bank, FSB; Colonial Savings; Countrywide Home Loans, Inc.; First Horizon Home Loan Corp.; Guaranty Residential Lending, Inc.; HSBC Mortgage Corp. (USA); National City Mortgage Co.; and Wells Fargo Home Mortgage, Inc.

In 2003, the Hall of Fame recipients serviced 38 percent of the 10 million loans owned by Freddie Mac, while the Tier One recipients serviced an additional 26 percent of Freddie Mac's loans.

Since 1996 when Freddie Mac created the servicer performance awards, it has proudly paid out more than $20 million in incentives to mortgage servicers for their loss mitigation efforts, including settled workouts and certain partial reinstatements of loans in foreclosure.

Freddie Mac is a stockholder-owned corporation established by Congress in support of 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 opened doors for one in six homebuyers and more than two million renters in America.

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