FREDDIE MAC SETS MULTIFAMILY FUNDING RECORD IN 2003

Records For Volume Set In Both Flow And Negotiated Transactions Programs

McLean, VA – Freddie Mac announced it closed a record $22.6 billion in multifamily investments in 2003, due in great part to the teamwork between Freddie Mac and its seller/servicers.

"Freddie Mac's Multifamily Division set volume records in both our flow and negotiated transactions programs, in spite of one of the toughest multifamily markets in recent years. We appreciate the extraordinary efforts of our correspondents and staff who made this achievement possible," said Adrian Corbiere, senior vice president and head of Freddie Mac's Multifamily Division.

When Freddie Mac stepped up its competitive pricing and enhanced several products mid-year, such as alternative yield maintenance schedules, a built-in interest-rate cap for ARMs, and the availability of 6-, 8-, and 9-year terms with its Fixed-to-Float Option, Freddie Mac seller/servicers responded positively. So much so that Freddie Mac's flow funding volume jumped from $2 billion in the first half of 2003 to nearly $7 billion by year-end. As always, Freddie Mac multifamily purchases emphasized its commitment to expanding the availability of affordable housing, with more than 90 percent of the units funded in 2003 affordable to families earning low to moderate incomes.

"The past year really showcased the strength of the Freddie Mac/Program Plus franchise," said Adrian. "We'll maintain a similarly strong presence in the multifamily markets in 2004 by continuing to enhance our programs, offering competitive market pricing and working closely with our correspondents to provide the level of service borrowers have come to expect."

Freddie Mac recorded the following results in key areas of our multifamily business in 2003:

$6.9 billion through flow programs, a record that financed more than 185,000 rental units
$8.2 billion in negotiated transactions, a record that supported over 215,000 rental units
$958 million of investments in Low-Income Housing Tax Credits
More than $690 million in our targeted affordable housing products, including Bond Credit Enhancements and Affordable Forward Commitments
$4 billion in mortgages featuring our new Fixed-to-Float option, a significant growth in this financing option, which was introduced in mid-2002
More than $3 billion featuring its Early Rate-Lock option
Nearly $500 million in seniors housing mortgages
Over $400 million in ARM flow financings that use Freddie Mac Reference Bills^® as an index and more than $330 million in credit facility commitments indexed to our Reference Bills

Since the introduction of the Freddie Mac Program Plus network of multifamily loan originators and servicers in 1993, Freddie Mac has provided financing for over 30,000 multifamily properties totaling more than $75 billion. That volume represents more than two million rental units across the country, a large portion of which are affordable to people whose income levels are at or below area median income – including newly established households, single-parent households, large family households at lower salaries as well as other renters.

Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to support 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 the doors for one in six homebuyers.

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