Build Long-Term Shareholder Value

Our financial priorities are to build long-term shareholder value. We do it through:

• asset selection,

• risk management, and

• access to low-cost financing.

Asset selection is the process by which we evaluate mortgage debt outstanding and determine which assets meet our business objectives. It requires a superior understanding of the many factors that affect the value of mortgages, including, prepayment behavior and credit characteristics. We maintain a high-quality mortgage portfolio in our investment and securitization businesses, and we're well positioned to work with the broad array of mortgage loan products in the marketplace.

Risk management is a core competency at Freddie Mac. Our consistently low level of risk through many different interest-rate cycles demonstrates the durable risk management framework that lets us grow our investment business in a safe and sound manner. This, in turn, lets us fulfill our public mission. Since 1998, we have managed our risk effectively through six cycles where interest rates moved between 150 and 250 basis points in a relatively short period of time. Throughout these extreme interest rate moves, Freddie Mac's risk profile has remained low.

Low-cost financing. Every day we strive to be the premier provider of debt securities around the globe, attracting low-cost funds to support homeownership in America. By bringing Wall Street to Main Street, we enable homeowners to benefit from our success in obtaining financing alongside the largest and most creditworthy institutions in the world.