MCLEAN, Va., Feb. 24 /PRNewswire-FirstCall/ -- Summary -- Fourth
quarter 2009 net loss was $6.5 billion. After the dividend payment
of $1.3 billion to the U.S. Department of the Treasury (Treasury)
on the senior preferred stock, net loss attributable to common
stockholders was $7.8 billion, or $2.39 per diluted common share,
for the fourth quarter of 2009. -- Fourth quarter results reflect
net interest income of $4.5 billion, a write-down of $3.4 billion
of the carrying value of the company's Low-Income Housing Tax
Credit (LIHTC) partnership investments and credit-related expenses
of $7.1 billion. -- Full-year 2009 net loss was $21.6 billion.
After dividend payments of $4.1 billion during the year to Treasury
on the senior preferred stock, net loss attributable to common
stockholders was $25.7 billion, or $7.89 per diluted common share,
for the full-year 2009. -- Net worth at December 31, 2009 was $4.4
billion. As a result of the positive net worth, no additional
funding from Treasury was required under the terms of the Senior
Preferred Stock Purchase Agreement (Purchase Agreement) for the
fourth quarter. -- In 2009, Freddie Mac played a critical role in
supporting the nation's housing market by: -- Providing $548.4
billion of liquidity to the mortgage market, helping finance
approximately 2.2 million conforming single-family loans and
approximately 253,000 units of multifamily rental housing. --
Helping more than 272,000 borrowers stay in their homes or sell
their properties through the company's long-standing foreclosure
avoidance programs and the Home Affordable Modification program
(HAMP), including 129,380 loans that remained in HAMP trial periods
as of December 31, 2009 according to information provided by the
Making Home Affordable (MHA) program administrator. -- Refinancing
approximately $379 billion of single-family loans, creating an
estimated $4.5 billion in annual interest savings for borrowers
nationwide - this includes approximately 169,000 borrowers whose
payments were reduced by an average of $2,000 annually under the
Freddie Mac Relief Refinance Mortgage(SM). Freddie Mac (NYSE:FRE)
today reported a net loss of $21.6 billion for the full-year 2009,
compared to a net loss of $50.1 billion for the full-year 2008.
After dividend payments of $4.1 billion during the year on its
senior preferred stock to Treasury, Freddie Mac reported a net loss
attributable to common stockholders of $25.7 billion, or $7.89 per
diluted common share, for the full-year 2009, compared to a net
loss attributable to common stockholders of $50.8 billion, or
$34.60 per diluted common share, for the full-year 2008. For the
quarter ended December 31, 2009, the company reported a net loss of
$6.5 billion, compared to a net loss of $5.4 billion for the
quarter ended September 30, 2009. After the dividend payment of
$1.3 billion on its senior preferred stock to Treasury, Freddie Mac
reported a net loss attributable to common stockholders of $7.8
billion, or $2.39 per diluted common share, in the fourth quarter
of 2009, compared to a net loss attributable to common stockholders
of $6.7 billion, or $2.06 per diluted common share, in the third
quarter of 2009. Fourth quarter and full-year 2009 results were
negatively impacted by $7.1 billion and $29.8 billion in
credit-related expenses, respectively, reflecting the challenging
economic conditions during 2009. In addition, fourth quarter and
full-year 2009 results were affected by $3.4 billion and $4.2
billion in LIHTC partnerships expense, respectively, primarily due
to the write-down of the carrying value of the company's LIHTC
partnership investments to zero as of December 31, 2009. These
results were partially offset by net interest income of $4.5
billion in the fourth quarter of 2009 and $17.1 billion in the
full-year 2009, mainly due to lower funding costs. Freddie Mac had
positive net worth of $4.4 billion at December 31, 2009, compared
to positive net worth of $9.4 billion at September 30, 2009. As a
result of the positive net worth, no additional funding was
required from Treasury under the terms of the Purchase Agreement
for the fourth quarter. The decline in positive net worth for the
fourth quarter of 2009 resulted from the fourth quarter 2009 net
loss of $6.5 billion and the dividend payment of $1.3 billion to
Treasury on the senior preferred stock, partially offset by a $2.7
billion decrease in unrealized losses recorded in accumulated other
comprehensive income (loss) (AOCI) primarily driven by improved
values on the company's available-for-sale (AFS) securities.
Freddie Mac had a net worth deficit of $30.6 billion at December
31, 2008. "In a trying and turbulent year, Freddie Mac played a
critical role in supporting the nation's housing recovery," said
Freddie Mac Chief Executive Officer Charles E. Haldeman, Jr. "We
provided a constant source of liquidity - purchasing one out of
every four home loans originated last year - and our presence in
the market helped keep mortgage rates at historic lows. We also
helped approximately 1.8 million borrowers lower their mortgage
payments, and more than a quarter million families avoid
foreclosure. "We start 2010 with some early signs of stabilization
in the housing market, with house prices and home sales likely
nearing the bottom sometime in 2010. We expect that low mortgage
rates, relatively high affordability and the homebuyer tax credit
will help continue to fuel the recovery. Still, the housing
recovery remains fragile, with significant downside risk posed by
high unemployment and a potential large wave of foreclosures.
That's why our commitment to help struggling homeowners is
steadfast - and we will continue working to find ways to keep
families in their homes through both our own programs and the Obama
Administration's Making Home Affordable Program." GAAP Results
Full-Year Three Months Ended Dec. 31, Sept. 30, ($ in millions)
2009 2008(1) 2009 2009(1)(2) ---- ------ ---- --------- Net
interest income $17,073 $6,796 $4,497 $4,462 Management and
guarantee income 3,033 3,370 743 800 Low-income housing tax credit
partnerships (4,155) (453) (3,403) (479) Other non-interest income
(loss) (1,610) (32,092) 883 (1,403) ------ ------- --- ------ Total
revenues 14,341 (22,379) 2,720 3,380 ------ ------- ----- -----
Administrative expenses (1,651) (1,505) (463) (433) Credit-related
expenses (29,837) (17,529) (7,065) (7,877) Other non-interest
expense (5,237) (3,151) (1,223) (628) ------ ------ ------ ----
Total expenses (36,725) (22,185) (8,751) (8,938) ------- -------
------ ------ Loss before income tax benefit (expense) (22,384)
(44,564) (6,031) (5,558) Income tax benefit (expense) 830 (5,552)
(440) 149 --- ------ ---- --- Net loss $(21,554) $(50,116) $(6,471)
$(5,409) ======== ======== ======= ======= Less: Net (income) loss
attributable to noncontrolling interest 1 (3) (1) 1 Net loss
attributable to Freddie Mac $(21,553) $(50,119) $(6,472) $(5,408)
======== ======== ======= ======= Senior preferred stock dividends
declared $(4,105) $(172) $(1,292) $(1,294) ======= ===== =======
======= Total equity (deficit) / GAAP net worth (at period end)
$4,372 $(30,634) $4,372 $9,420 ====== ======== ====== ====== AOCI,
net of taxes (at period end) $(23,648) $(32,357) $(23,648)
$(26,355) ======== ======== ======== ======== (1) Certain amounts
in prior periods have been reclassified to conform to the current
presentation. (2) During the fourth quarter of 2009, the company
identified two errors in loss severity rate inputs used by its
models to estimate the company's single-family loan loss reserves.
These errors affected amounts previously reported. Freddie Mac has
concluded that while these errors are not material to the company's
previously issued consolidated financial statements for the first
three quarters of 2009 or to its consolidated financial statements
for the full- year 2009, the cumulative impact of correcting these
errors in the fourth quarter would have been material to the fourth
quarter of 2009. Freddie Mac revised its previously reported
results for the first three quarters of 2009 to correct these
errors in the appropriate quarterly period. These revisions
resulted in a net increase to provision for credit losses in the
amounts of $124 million, $466 million and $396 million for the
first, second and third quarters of 2009, respectively. The company
will appropriately revise the 2009 results in each of its quarterly
filings on Form 10-Q when next presented throughout 2010. Net
interest income for the fourth quarter of 2009 was $4.5 billion,
relatively unchanged from the third quarter of 2009. Net interest
yield on a fully taxable-equivalent basis for the fourth quarter of
2009 was 215 basis points, compared to 205 basis points for the
third quarter of 2009. The increase in net interest yield in the
fourth quarter was primarily driven by lower funding costs due to
lower interest rates on the company's short- and long-term debt.
Net interest income for the full-year 2009 was $17.1 billion,
compared to $6.8 billion for the full-year 2008. Net interest yield
on a fully taxable-equivalent basis for the full-year 2009 was 194
basis points, compared to 87 basis points for the full-year 2008.
The increase in net interest income and net interest yield during
2009 was primarily driven by a decrease in funding costs as a
result of the replacement of higher cost short- and long-term debt
with lower cost debt, as well as an increase in the average balance
of the company's investments in mortgage loans and mortgage-related
securities. These increases were partially offset by the impact of
declining short-term interest rates on the company's floating-rate
investments. Net interest income and net interest yield during 2009
exclude the cost of funds the company received from Treasury under
the Purchase Agreement, which is reported as dividends paid on
senior preferred stock. Management and guarantee income for the
fourth quarter of 2009 was $743 million, compared to $800 million
for the third quarter of 2009. Management and guarantee income for
the full-year 2009 was $3.0 billion, compared to $3.4 billion for
the full-year 2008. The decreases in management and guarantee
income for both the fourth quarter and full-year 2009 reflect
reduced amortization income related to certain pre-2003 deferred
fees due to an increase in forecasted interest rates, which
resulted in a decrease in projected prepayments. Low-income housing
tax credit partnerships for the fourth quarter of 2009 was an
expense of $3.4 billion, compared to an expense of $479 million for
the third quarter of 2009. Low-income housing tax credit
partnerships for the full-year 2009 was an expense of $4.2 billion,
compared to an expense of $453 million for the full-year 2008. The
increase in LIHTC partnerships expense in both the fourth quarter
and full-year 2009 was mostly driven by the write-down of the
carrying value of the company's LIHTC partnership investments to
zero during the fourth quarter. On February 18, 2010, after
consultation with Treasury and consistent with the terms of the
Purchase Agreement, the Federal Housing Finance Agency (FHFA)
informed Freddie Mac the company may not sell or transfer the
assets and that FHFA sees no other disposition options. As a
result, the company wrote down the carrying value of its LIHTC
investments to zero as of December 31, 2009. This write-down
increases the likelihood that the company will require additional
draws from Treasury under the Purchase Agreement. For a more
detailed discussion, see "Note 5: VARIABLE INTEREST ENTITIES" in
the company's Annual Report on Form 10-K for the year ended
December 31, 2009. Other non-interest income (loss) for the fourth
quarter of 2009 was income of $883 million, compared to a loss of
$1.4 billion for the third quarter of 2009. Other non-interest
income (loss) for the full-year 2009 was a loss of $1.6 billion,
compared to a loss of $32.1 billion for the full-year 2008.
Included in other non-interest income for the fourth quarter of
2009 were net mark-to-market gains of $2.1 billion, compared to net
mark-to-market gains of $42 million in the third quarter of 2009.
Fourth quarter net mark-to-market gains reflect the effect of
higher long-term interest rates and tighter spreads on the
company's derivative portfolio, guarantee asset and trading
securities. Also included in other non-interest income for the
fourth quarter of 2009 was $667 million of net impairment of AFS
securities recognized in earnings, compared to $1.2 billion of net
impairment of AFS securities recognized in earnings during the
third quarter of 2009, as the pace of deterioration in credit
quality of the underlying collateral slowed during the fourth
quarter. Other non-interest loss for the full-year 2009 included
$11.2 billion of net impairment of AFS securities recognized in
earnings. The company adopted an amendment to the accounting
standards for investments in debt and equity securities on April 1,
2009. Consequently, full-year 2009 impairment results are not
directly comparable to the full-year 2008 impairment results. Net
impairment of AFS securities recorded in earnings was $17.7 billion
for the full-year 2008. Other non-interest loss for the full-year
2009 also included net mark-to-market gains of $11.0 billion,
compared to net mark-to-market losses of $17.7 billion for the
full-year 2008. Net mark-to-market gains in 2009 were mainly driven
by higher long-term interest rates and tighter spreads on the
company's derivative portfolio, guarantee asset and trading
securities during the year. Credit-related expenses, consisting of
provision for credit losses and real estate owned (REO) operations
expense, were $7.1 billion for the fourth quarter of 2009, compared
to $7.9 billion for the third quarter of 2009. Credit-related
expenses for the full-year 2009 were $29.8 billion, compared to
$17.5 billion for the full-year 2008. During the fourth quarter of
2009, the company identified two errors in loss severity rate
inputs used by its models to estimate the company's single-family
loan loss reserves. These errors affected amounts previously
reported. Freddie Mac has concluded that while these errors are not
material to the company's previously issued consolidated financial
statements for the first three quarters of 2009 or to its
consolidated financial statements for the full-year 2009, the
cumulative impact of correcting these errors in the fourth quarter
would have been material to the fourth quarter of 2009. Freddie Mac
revised its previously reported results for the first three
quarters of 2009 to correct these errors in the appropriate
quarterly period. As a result, Freddie Mac increased its previously
reported third quarter 2009 provision for credit losses by $396
million to reflect these adjustments. Provision for credit losses
for the fourth quarter of 2009 was $7.0 billion, compared to $8.0
billion for the third quarter of 2009. Provision for credit losses
remained at an elevated level due to continued credit deterioration
and challenging economic conditions. The third quarter results
include an adjustment to the provision for credit losses based on
observed changes in economic drivers impacting borrower behavior
and delinquency trends for certain loans, as well as the
adjustments discussed above. For a more detailed discussion, see
"QUARTERLY SELECTED FINANCIAL DATA" in the company's Annual Report
on Form 10-K for the year ended December 31, 2009. Provision for
credit losses for the full-year 2009 was $29.5 billion, compared to
$16.4 billion for the full-year 2008, reflecting continued credit
losses amid ongoing weakness in the U.S. economy and housing
market. The increase in provision for credit losses during 2009
primarily reflected significant increases in delinquency rates and
foreclosures and higher severity of losses on a per-property basis.
During the fourth quarter and full-year 2009, the company
experienced further deterioration in its single-family guarantee
portfolio. -- Single-family serious delinquency rate, excluding
Structured Transactions, was 3.87% at December 31, 2009, compared
to 3.33% at September 30, 2009 and 1.72% at December 31, 2008. The
increase is due in part to a slowing of the foreclosure process,
due to HAMP and other loss mitigation programs, as well as extended
statutory foreclosure timelines in many states and servicer
capacity constraints. -- Single-family net charge-offs increased to
$2.4 billion in the fourth quarter of 2009, compared to $2.2
billion in the third quarter of 2009. Single-family net charge-offs
were $7.6 billion for the full-year 2009, compared to $2.7 billion
for the full-year 2008. REO operations income (expense) for the
fourth quarter of 2009 was an expense of $88 million, compared to
income of $96 million for the third quarter of 2009, reflecting
lower recoveries of property write-downs in the fourth quarter
compared to the third quarter. REO operations expense for the
full-year 2009 was $307 million, compared to $1.1 billion for the
full-year 2008. The decrease was primarily due to a stabilization
in home prices during 2009, compared to a sharp decline in home
prices during 2008. Other non-interest expense for the fourth
quarter of 2009 was $1.2 billion, compared to $628 million for the
third quarter of 2009. Other non-interest expense for the full-year
2009 was $5.2 billion, compared to $3.2 billion for the full-year
2008. The increase in other non-interest expense for the fourth
quarter of 2009, compared to the third quarter of 2009, was driven
by a $481 million increase in losses on loans purchased from the
company's PC pools due to an increase in purchase volume of
delinquent and modified loans as more modifications were settled in
the fourth quarter of 2009. The increase in other non-interest
expense for the full-year 2009 compared to the full-year 2008 was
primarily driven by a $3.1 billion increase in losses on loans
purchased due to both an increase in volume and a decline in the
fair value of loans purchased from PC pools. Other non-interest
expense for the full-year 2008 included a securities administrator
loss on investment activity of $1.1 billion related to investments
made by Freddie Mac in Lehman Brothers Holdings Inc. in the
company's role as securities administrator for certain
trust-related assets. Income tax benefit (expense) for the fourth
quarter of 2009 was an expense of $440 million, compared to a
benefit of $149 million for the third quarter of 2009, primarily
due to a decrease in the estimated 2009 taxable loss. Income tax
benefit (expense) for the full-year 2009 was a benefit of $830
million, compared to an expense of $5.6 billion for the full-year
2008. Income tax expense for the full-year 2008 was primarily
driven by the company's establishment of a partial valuation
allowance against the net deferred tax asset in the third quarter
of 2008. The company is required to assess the realizability of the
deferred tax asset on a quarterly basis. At December 31, 2009, the
company had a remaining net deferred tax asset of $11.1 billion,
representing the tax effect of net unrealized losses on its AFS
securities, which management believes is more likely than not of
being realized because of the company's conclusion that it has the
intent and ability to hold its AFS securities until temporary
unrealized losses are recovered. AOCI, net of taxes as of December
31, 2009 was a loss of $23.6 billion, compared to a loss of $26.4
billion as of September 30, 2009 and a loss of $32.4 billion as of
December 31, 2008. The decrease in unrealized losses recorded in
AOCI for both the fourth quarter and full-year 2009 was primarily
attributable to improved values on the company's AFS securities.
For a more detailed discussion of results, see "MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS" in the company's Annual Report on Form 10-K for the
year ended December 31, 2009. For a discussion of risks and
uncertainties that could adversely affect the company's business,
financial condition, results of operations, capital position, cash
flows, strategies and/or prospects, see "BUSINESS", "RISK FACTORS"
and "NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES" in the
company's Annual Report on Form 10-K for the year ended December
31, 2009. Net Worth and Senior Preferred Stock Freddie Mac's net
worth was $4.4 billion at December 31, 2009. As a result of the
positive net worth, no additional funding was required from
Treasury under the terms of the Purchase Agreement for the fourth
quarter. On December 24, 2009, Treasury announced that it had
amended the Purchase Agreement. Under the newly amended agreement,
the $200 billion cap on Treasury's funding commitment to Freddie
Mac will increase as necessary to accommodate any cumulative
reduction in Freddie Mac's net worth during 2010, 2011 and 2012. In
addition, the annual 10% reduction in the size of Freddie Mac's
mortgage-related investments portfolio, the first of which is
effective on December 31, 2010, will be calculated based on the
maximum allowable size of the mortgage-related investments
portfolio, rather than the actual balance of the mortgage-related
investments portfolio as of December 31 of the preceding year.
Therefore, the unpaid principal balance of the company's
mortgage-related investments portfolio may not exceed $810 billion
as of December 31, 2010. Further, under the amended Purchase
Agreement, the determination and payment of the periodic commitment
fee that Freddie Mac must pay to Treasury will be delayed by one
year and will be payable quarterly beginning March 31, 2011. The
aggregate liquidation preference of the company's senior preferred
stock was $51.7 billion as of December 31, 2009. Based on the
current aggregate liquidation preference of $51.7 billion,
Treasury, the holder of the senior preferred stock, is entitled to
annual cash dividends of approximately $5.2 billion, which exceeds
the company's annual historical earnings in most periods. Including
the $1.3 billion quarterly dividend paid on December 31, 2009, the
company has paid aggregate dividends of $4.3 billion in cash on the
senior preferred stock to Treasury at the direction of FHFA, acting
as Conservator. Freddie Mac expects to request additional draws
under the Purchase Agreement in future periods due to a variety of
factors that could adversely affect the level and volatility of the
company's net worth. For a discussion of these factors, see
"LIQUIDITY AND CAPITAL RESOURCES - Capital Resources" in the
company's Annual Report on Form 10-K for the year ended December
31, 2009. Freddie Mac is under conservatorship and is dependent
upon the continued support of Treasury and FHFA to continue
operating its business. Adoption of Accounting Standards Relating
to Transfers of Financial Assets and Consolidation of Variable
Interest Entities (VIEs) - SFAS 166 and SFAS 167 Effective January
1, 2010, the company prospectively adopted: (i) the amendment to
the accounting standards for transfers of financial assets and (ii)
the amendment to the accounting standards on consolidation of VIEs.
The adoption of these amendments will have a significant impact on
the company's consolidated financial statements and other financial
disclosures beginning with the first quarter of 2010. As a result
of the adoption, Freddie Mac recognized a significant decline in
its total equity (deficit) on January 1, 2010, which will increase
the likelihood that the company will require a draw from Treasury
under the Purchase Agreement for the first quarter of 2010. The
cumulative effect of these changes in accounting principles as of
January 1, 2010 is a net decrease of approximately $11.7 billion to
the company's total equity (deficit), which includes the changes to
the opening balances of its AOCI and retained earnings (accumulated
deficit). For more information, see "NOTE 1: SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES" in the company's Annual Report on Form 10-K
for the year ended December 31, 2009. Supporting the Nation's
Housing Recovery Freddie Mac has remained a major and constant
source of mortgage funding during the housing crisis. In 2009, the
company purchased or guaranteed approximately one out of every four
home loans originated during the year. Freddie Mac provided $548.4
billion of liquidity to the mortgage market, helping finance
approximately 2.2 million conforming single-family loans and
approximately 253,000 units of multifamily rental housing. This
included approximately $379 billion in single-family refinance
volume, creating an estimated $4.5 billion in aggregate annual
interest savings for approximately 1.8 million borrowers. In
addition, through the Obama Administration's Housing Finance Agency
initiative, the company delivered approximately $11.8 billion in
affordable housing financing to local markets across the country,
which included the company's guarantee of $0.1 billion of bonds
under the Multifamily Credit Enhancement Initiative. Freddie Mac
also supported the mortgage market by helping struggling borrowers
avoid foreclosure. In 2009, the company helped more than 272,000
borrowers stay in their homes or sell their properties through the
company's long-standing traditional foreclosure avoidance programs
and HAMP. During 2009, the company completed (measured in number of
loans): -- 65,044 loan modifications -- 33,725 repayment plans --
21,355 forbearance agreements -- 22,591 pre-foreclosure sales
Additionally, 129,380 loans remained in HAMP trial periods as of
December 31, 2009, according to information provided by the MHA
program administrator. During the fourth quarter of 2009, the MHA
program continued to be the centerpiece of the company's efforts to
help struggling borrowers lower their mortgage payments to more
affordable levels. Freddie Mac's key programs implementing MHA -
HAMP and the Freddie Mac Relief Refinance Mortgage(SM) - continued
to gain traction during the quarter. During the second half of
2009, Freddie Mac accelerated its efforts to convert more HAMP
trial period loans into permanent modifications by implementing
document collection and signature services, and door-knocking
programs and by reaching out to distressed borrowers through local
nonprofit organizations. Based on information provided by the MHA
program administrator, 13,927 HAMP loan modifications were
completed through December 31, 2009. Only a portion of completed
HAMP loan modifications reported by the MHA program administrator
are reflected in the company's loan modification results, due to
timing differences around completed loan status between the company
and the MHA program administrator. In addition, Freddie Mac
continued the purchase of refinance mortgages originated under the
Freddie Mac Relief Refinance Mortgage(SM). The company helped to
refinance approximately 169,000 loans totaling $34.7 billion of
unpaid principal balance as of December 31, 2009 under this
program. Freddie Mac is currently working with Treasury to support
the Home Affordable Foreclosure Alternatives Program. This program
will provide incentives to servicers and borrowers to pursue
pre-foreclosure sales and deeds-in-lieu of foreclosure in cases
where a borrower is eligible for a MHA modification but unable to
complete the modification process. Additional Information For more
information, including that related to Freddie Mac's
conservatorship and related actions, see the company's Annual
Report on Form 10-K for the year ended December 31, 2009, and the
company's Consolidated Financial Statements, Core Tables and
financial results supplement. These documents are available on the
Investor Relations page of the company's Web site at
http://www.freddiemac.com/investors. Additional information about
Freddie Mac and its business is also set forth in the company's
filings with the SEC, which are available on the Investor Relations
page of the company's Web site at
http://www.freddiemac.com/investors and the SEC's Web site at
http://www.sec.gov/. Freddie Mac encourages all investors and
interested members of the public to review these materials for a
more complete understanding of the company's financial results and
related disclosures. This press release contains forward-looking
statements, which may include statements pertaining to the
conservatorship and the company's current expectations and
objectives for the company's efforts under the MHA program and
other programs to assist the U.S. residential mortgage market,
future business plans, liquidity, capital management, economic and
market conditions and trends, market share, legislative and
regulatory developments, implementation of new accounting
standards, credit losses, internal control remediation efforts, and
results of operations and financial condition. Management's
expectations for the company's future necessarily involve a number
of assumptions, judgments and estimates, and various factors,
including changes in market conditions, liquidity, mortgage-to-debt
option-adjusted spread, credit outlook, actions by FHFA, the
Federal Reserve, and Treasury, and the impacts of legislation or
regulations and new or amended accounting standards, could cause
actual results to differ materially from these expectations. These
assumptions, judgments, estimates and factors are discussed in the
company's Annual Report on Form 10-K for the year ended December
31, 2009, which is available on the Investor Relations page of the
company's Web site at http://www.freddiemac.com/investors and the
SEC's Web site at http://www.sec.gov/. The company undertakes no
obligation to update forward-looking statements it makes to reflect
events or circumstances after the date of this press release or to
reflect the occurrence of unanticipated events. 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. For more information, visit http://www.freddiemac.com/.
DATASOURCE: Freddie Mac CONTACT: Media, Michael Cosgrove,
+1-703-903-2123; Investors, Linda Eddy, +1-703-903-3883 Web Site:
http://www.freddiemac.com/
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