FREDDIE MAC TO PASS-THROUGH PRINCIPAL PREPAYMENTS ON CERTAIN SINGLE-FAMILY LOANS IN 31 ADJUSTABLE-RATE MORTGAGE PARTICIPATION CERTIFICATE POOLS

McLean, VA – Freddie Mac (NYSE: FRE) today announced it will pass-through full prepayments of principal that represent repurchases of 451 “hybrid” adjustable-rate mortgage loans from 31 single-family adjustable-rate Mortgage Participation Certificate (PC) pools. Freddie Mac will reflect the prepayment activity in its February 2007 Pool Factors and will pass-through the principal prepayments on the March 2007 distribution date for these adjustable-rate PCs. The adjustable-rate loans and related PCs are all still in their fixed-rate periods and have not commenced index-based adjustment to their rates.

One of Freddie Mac's sellers recently notified the company that during the second half of 2006 it inadvertently delivered certain adjustable-rate mortgage loans with a LIBOR index into Freddie Mac PC pools that bear a prefix for Treasury indices. These errors triggered the repurchases.

Of the adjustable-rate PC pools affected, seven have been resecuritized into nine Freddie Mac Giant adjustable-rate PCs. For a complete list of the affected adjustable-rate PC and Giant adjustable-rate PC pools and information on the impact of the repurchases on such securities, see the attached schedule.

If you are an investor in any of the Freddie Mac securities listed on the attachment and you have further questions, please contact Freddie Mac Investor Inquiry at 1-800-336-3672.

Freddie Mac is a stockholder-owned company established by Congress in 1970 to support homeownership and rental housing. Freddie Mac fulfills its mission by purchasing residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than four million renters in America.

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