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Freddie Mac Stops Foreclosure Sales on Loans Eligible for New Obama Home Affordable Modification Program

McLean, VA – Freddie Mac (NYSE: FRE) today announced it is suspending foreclosure sales on mortgages eligible for the Home Affordable Modification Program announced today as part of the Obama Administration’s Making Home Affordable plan. Freddie Mac’s previously announced suspension of foreclosure sales on occupied properties will expire on March 6, 2009.

“Today’s announcement underscores Freddie Mac’s commitment to the successful implementation of President Obama’s Making Home Affordable initiative, and builds on our ongoing efforts to prevent unnecessary foreclosures,” said Ingrid Beckles, Senior Vice President of default asset management at Freddie Mac.

Specifically, Freddie Mac will instruct its servicers not to complete a foreclosure sale on a mortgage eligible for the Home Affordable Modification program unless they completed their effort to contact the borrower and either the borrower did not respond or lacked the capacity or willingness to participate in the Home Affordable Modification program or any other Freddie Mac workout program.

For all other mortgages, in accordance with its longstanding policies, Freddie Mac gives Servicers broad authority to postpone foreclosure sales on a case-by-case basis when the Servicers are working with borrowers to avoid foreclosure using any of Freddie Mac’s many workout options.

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.

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