Freddie Mac Announces K-701 Offering of K Certificates Backed Only By 7-Year Multifamily Mortgages

Freddie Mac Announces K-701 Offering of K Certificates Backed Only By 7-Year Multifamily Mortgages

McLean, VA – February 14, 2011 – (RealEstateRama) — Freddie Mac (OTC: FMCC) today announced its first ever offering of Structured Pass-Through Certificates (“K Certificates”) backed only by multifamily mortgages with a 7-year term. The company expects to offer approximately $861 million in K Certificates (“K-701 Certificates”), which are expected to price the week of February 21, 2011, and settle on or about March 9, 2011.

The K-701 Certificates will be offered to the market by a syndicate of dealers led by Morgan Stanley & Co. Incorporated and J.P. Morgan Securities LLC as Co-Lead Managers and Joint Bookrunners for the transaction. Barclays Capital Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman, Sachs & Co., Jefferies & Company, Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo Securities LLC have been named as Co-Managers for the transaction. The K-701 Certificates are backed by 44 recently originated multifamily mortgages and are guaranteed by Freddie Mac.

“We are very pleased to offer our first ‘700-series’ of K Certificates, which are comprised entirely of multifamily mortgages with an original maturity of 7-years,” said David Brickman, vice president of Multifamily CMBS Capital Markets for Freddie Mac. “Because of the strong growth in our multifamily mortgage purchases, we can now tailor securities that segregate our collateral by maturity and provide tighter principal windows to better meet the specific needs of investors. Going forward, we hope to issue K Certificate securities backed by specific collateral such as 5- and 10-year multifamily mortgages.”

K Certificates provide Freddie Mac with an efficient vehicle to securitize multifamily loans. The certificates provide investors with stable cash flows, structured credit enhancement and the Freddie Mac guarantee.

The preliminary offering circular supplement relating to the K-701 Certificates can be found at http://www.freddiemac.com/mbs/data/k701oc.pdf [PDF 3.6M]. This announcement is not an offer to sell any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac’s Annual Report on Form 10-K for the year ended December 31, 2009, filed with the Securities and Exchange Commission (“SEC”) on February 24, 2010, and all documents that Freddie Mac files with the SEC pursuant to Section 13(a), 13(c) or 14 of the Securities Exchange Act of 1934, excluding any information “furnished” to the SEC on Form 8-K.

Freddie Mac’s press releases sometimes contain forward-looking statements. A description of factors that could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements can be found in the company’s Annual Report on Form 10-K for the year ended December 31, 2009 and its reports on Form 10-Q and Form 8-K, filed with the SEC and available on the Investor Relations page of the company’s Web site at www.FreddieMac.com/investors and the SEC’s Web site at www.sec.gov .

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.

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Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac raises capital on Wall Street and throughout the world's capital markets to finance mortgages for families across America. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters

Contact:

(703) 903-3933

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