FREDDIE MAC'S DELEGATED UNDERWRITING MODEL HELPS FUND TWO HOPE VI DEVELOPMENTS IN ATLANTA

329 Units Will Be Available For Mixed-Income Families And Seniors

McLean, VA – Freddie Mac (NYSE: FRE) announced it has recently teamed with Wachovia Multifamily Capital in issuing forward commitments to fund two 30-year permanent loans for two multifamily buildings that are part of the HOPE VI revitalization of an Atlanta public housing property.  The HOPE VI program is designed to revitalize the nation's most severely distressed public housing.

The Housing Authority of the City of Atlanta and the City of Atlanta are redeveloping McDaniel Glen. Once constructed, the new housing, which will be called Columbia Residences and Columbia Seniors, will contain a total of 329 units consisting of mixed-income families and seniors, including those qualifying for public housing. 

The loans were originated and underwritten through Wachovia's participation in the initial phase of Freddie Mac's Delegated Underwriting for Tax Credit  Housing. Through the use of Freddie Mac's Forward Commitment executions, Wachovia was able to allow the borrower, Columbia Residential, to fix the permanent loan interest rates at initial closing, thereby eliminating interest rate risk over the 24-month construction and lease-up period.

The Forward Commitments were issued in the amount of nearly $5.6 million for the two developments, which have combined total project costs of $36 million. The financing structure for both properties contained HOPE VI subordinate debt provided by The Housing Authority of the City of Atlanta.

The transaction also included 9 percent Low-Income Housing Tax Credits awarded by the Georgia Housing and Finance Agency and purchased by private investors through Wachovia's Tax Credit Investment group. The Department of Housing and Urban Development will provide rental assistance to the qualified tenants in the form of Section 8 and Public Housing rental assistance to be administered by The Housing Authority of the City of Atlanta.

"Columbia Residential is a long-term customer of Wachovia in terms of tax credit equity and construction lending. This was our first opportunity to also deliver permanent debt to them and they appreciated the efficiencies of it all coming from one source," said Kevin Hall, vice president, Affordable Housing, Wachovia Securities.  "These deals were done under Freddie Mac's Delegated Underwriting model.  We are thrilled to provide financing to an important customer on a project that will help stabilize and improve the Mechanicsville community in Atlanta."

"We're pleased that our Delegated Underwriting model enabled Wachovia to expedite processing of this loan and satisfy the requirements of the borrower," said Kimball Griffith, Freddie Mac director of Affordable Sales and Investments. "This development is a successful example of how a HOPE VI redevelopment with a mixed-income tenant base can transform and improve the quality of the surrounding neighborhood. The City of Atlanta is an important partner in this development by contributing approximately $3 million for the rehabilitation of an adjacent park and nearby elementary school, and several non-profit organizations have committed to invest economically or provide services in the area."

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 48,000 multifamily properties totaling more than $147 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 more than four million renters. 

Wachovia Corporation (NYSE:WB) is one of the nation's largest diversified financial services companies, providing a broad range of retail banking and brokerage, asset and wealth management, and corporate and investment banking products and services. Wachovia has retail and commercial banking operations in 21 states with 3,375 retail banking offices from Connecticut to Florida and west to Texas and California. In addition, two core businesses operate under the Wachovia Securities brand name: retail brokerage with 750 offices in 47 states and service affiliate offices in Latin America, and corporate and investment banking in selected industries nationwide. Other nationwide businesses include mortgage lending in all 50 states and auto finance covering 46 states. Globally, Wachovia serves clients through more than 40 international offices. Online banking is available at wachovia.com; online brokerage products and services at wachoviasec.com, and investment products and services at evergreeninvestments.com. At December 31, 2006, Wachovia had assets of $707 billion and market capitalization of $108 billion.

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