FREDDIE MAC ANNOUNCES PARTICIPATION IN ITS FIRST TRANSACTION THROUGH NY LIBERTY BOND PROGRAM

Program Created After 9/11 To Aid Lower Manhattan

McLean, VA – Freddie Mac announced today that it has participated in its first transaction through the New York Liberty Bond program, created after 9/11 to provide financing for the economic recovery and rehabilitation of lower Manhattan. Freddie Mac agreed to guarantee $95 million in Liberty Bonds for American Property Financing and the borrower, controlled by Glenwood Management, a major New York developer.

"We appreciate the opportunity to work with Freddie Mac who provided the permanent financing for this project and in doing so, contributed to the development and economic recovery of lower Manhattan. This replaces the construction financing, which stabilizes the building by giving it 30 years of long-term financing," said Alan Wiener, chairman of American Property Financing.

"We're thrilled that we can help make possible efforts to redevelop and revitalize this area through the New York Liberty Bond program. We're participating in a number of collaborative ventures aimed at strengthening and improving communities in the New York area," said Adrian Corbiere, Freddie Mac's senior vice president of Multifamily Sourcing.

The New York Liberty Bonds are a category of low-cost, tax-exempt private activity bonds, and are an integral part of the federal assistance made available to New York to support the Lower Manhattan rebuilding effort. The New York State Housing Finance Agency issues these tax-exempt bonds and requires that five percent of the units be affordable at 150 percent of area median income.

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 made home possible for one in six homebuyers and nearly four million renters in America.

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