FREDDIE MAC SETS MULTIFAMILY FUNDING RECORD IN 2004

Large Majority of Business Goes To Affordable Housing

McLean, VA – Freddie Mac announced today that it closed $23.8 billion in new multifamily business transactions in 2004, a record for the company. This volume includes approximately $2 billion in targeted affordable housing products, which finance apartments that receive some form of government subsidy, up from $776 million in 2003. All together, Freddie Mac's multifamily transactions financed approximately 450,000 apartment homes affordable to families earning low or moderate incomes.

"It's a testament to the strength of Freddie Mac's partnership with its correspondent lenders that we have been able to achieve record volumes year after year in spite of increasingly intense competition and tough markets," said Adrian Corbiere, senior vice president of Freddie Mac's Multifamily Sourcing Division.

"Freddie Mac worked hard to meet borrowers' needs with continued process improvements designed to improve turnaround times, competitive pricing and innovative product enhancements," added Corbiere. "Freddie Mac's correspondent lenders responded by providing outstanding representation in their markets and bringing Freddie Mac more of their business."

Highlights of Freddie Mac's multifamily business in 2004 are

Nearly $9 billion through our flow programs, which included over $1 billion of targeted affordable housing products and approximately $4 billion of loans with our fixed-to-float feature
$4 billion through our institutional sales program, including approximately $1 billion in targeted affordable housing products
Nearly $2 billion in Capped ARM flow financings and $500 million in credit facilities included in our flow and institutional sales programs, most of which use Freddie Mac Reference Bills® securities as an index
$425 million in seniors housing mortgages related to our flow and institutional sales programs
A record $1.3 billion in low-income housing tax-credit investments

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 made home possible for one in six homebuyers.

###