FREDDIE MAC SETS NEW MULTIFAMILY RECORD FOR BUSINESS TRANSACTED IN 2005

McLean, VA – Freddie Mac announced today that it closed a record $26.2 billion in new multifamily business transactions in 2005, a 10 percent increase over the 2004 volume of $23.8 billion. This volume includes approximately $2 billion in targeted affordable housing products, which finance apartments that receive some form of government subsidy. All together, Freddie Mac’s multifamily transactions financed approximately 436,000 apartment homes affordable to families earning low or moderate incomes.

"The past year was both challenging and exciting as Freddie Mac sought to be more flexible and innovative for our correspondent lenders while maintaining the quality of our investments," said Adrian Corbiere, senior vice president of Freddie Mac’s Multifamily Sourcing Division. "We are pleased to be able to say that we did both."

"In the days ahead, we intend to build on that foundation, devoting our time and attention to streamlining our financing process and enhancing our products menu to better meet the needs of borrowers and lenders in the multifamily arena," said Michael C. May, senior vice president of Freddie Mac’s Multifamily Sourcing Division. "And by achieving those goals, we will continue to make our mission of providing access to decent, affordable housing more attainable in the years to come."

Highlights of Freddie Mac’s multifamily business in 2005 are:

Nearly $10 billion through Freddie Mac’s flow programs, which included over $1.1 billion of targeted affordable housing products and approximately $6 billion of loans with its fixed-to-float feature;
Over $1 billion through Freddie Mac’s structured programs, including over $630 million in targeted affordable housing products;
$2.2 billion in Capped ARM flow financings and approximately $440 million in credit facilities included in Freddie Mac’s flow and structured programs, most of which use Freddie Mac Reference Bills® securities as an index;
$800 million in seniors housing mortgages related to Freddie Mac’s flow and structured programs; and
$1.3 billion in low-income housing tax-credit investments.

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 40,000 multifamily properties totaling more than $100 billion.

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.

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