FREDDIE MAC STATEMENT IN RESPONSE TO NEW YORK ATTORNEY GENERAL SUBPOENAS

McLean, VA – Accurate appraisals are fundamental to our effective credit risk management as well as to the long-term success of the homebuyers we are chartered to serve. In fact, Freddie Mac has no incentive to accept inflated appraisals on the loans we purchase and guarantee. Indeed, Freddie Mac has a long-standing commitment to fighting mortgage fraud, as evidenced by its leadership role in the industry through our active internal fraud investigations, quality control activities, Freddie Mac-instituted remedial steps, and assistance with criminal prosecutions. We look forward to cooperating fully with the New York Attorney General’s investigation and have agreed to appoint an Independent Examiner, as requested, to review the appraisal practices cited in the Attorney General’s complaint.

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-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible more than 50 million times, ensuring financing for one in six homebuyers and more than four million renters.

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