FREDDIE MAC ANNOUNCES TIER ONE MORTGAGE SERVICERS FOR 2004

Awards for Excellence in Investor Reporting and Default Management

McLean, VA – Freddie Mac today announced that 23 single-family mortgage servicers achieved Tier One performance rankings for superior investor reporting and default management during the two or more quarters during 2004. The company also inducted 12 servicers into its Tier One Hall of Fame for achieving Tier One status for four consecutive years.

Freddie Mac ranks its servicers each month on a wide range of activities covering two primary performance benchmarks – accurate and timely investor reporting and superior default management. Default management minimizes 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 financial rewards and national recognition. Over the years, Freddie Mac's Tier One program has become an industry standard for measuring servicing performance.

"Our Tier One Servicers have achieved this status through hard work, persistence and commitment to be the best," said Janet Eakes, senior 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 and Hall of Fame honorees for 2004 are AMCORE Mortgage Inc.; Bank of America Consumer Real Estate; Chase Home Finance; Chevy Chase Bank, FSB; Colonial Savings, F.A.; Countrywide Home Loans, Inc.; First Horizon Home Loan Corp.; HSBC Mortgage Corp. (USA); M&T Mortgage Corp.; National City Mortgage Co.; Sovereign Bank; and Wells Fargo Home Mortgage.

The additional 2004 Tier One recipients announced by Freddie Mac are Bank of Oklahoma, NA; Citimortgage, Inc.; Doral Financial Corporation; First Federal Savings Bank; IndyMac Bank; PHH Mortgage; Provident Funding Associates; R&G Crown Bank; SunTrust Mortgage, Inc.; U. S. Bank Home Mortgage and Ulster Savings Bank.

The Tier One Hall of Fame and Tier One honorees combined service 56 percent of the 10 million loans owned by Freddie Mac.

Since 1998 when Freddie Mac created the servicer performance awards, it has proudly paid out more than $12 million in performance rewards and incentives to mortgage servicers for their superior servicing.

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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