FREDDIE MAC ANNOUNCES TENDER OFFER FOR PREFERRED STOCK OF HOME OWNERSHIP FUNDING CORPORATION AND HOME OWNERSHIP FUNDING CORPORATION II

McLean, VA – Freddie Mac (NYSE:FRE) announced today that it is offering to purchase for cash any and all of the outstanding shares of the Step-Down Preferred Stock (the “shares”) issued by each of Home Ownership Funding Corporation and Home Ownership Funding Corporation II, in accordance with the terms and conditions contained in Freddie Mac’s Offer to Purchase dated November 10, 2005.

The purchase price for shares of Home Ownership Funding Corporation, CUSIP #437296205, is $258.66, and the purchase price for shares of Home Ownership Funding Corporation II, CUSIP #437297203, is $258.75. The offer will expire at 5:00 p.m., New York City time, on December 9, 2005, with settlement expected to occur on December 12, 2005. Shareholders will have the option to tender their Shares by 5:00 p.m., New York City time, on November 22, 2005, and receive the purchase price on November 23, 2005. Freddie Mac will use available cash to fund the purchase of any shares accepted in the tender offer.

Lehman Brothers will act as the dealer-manager for the tender offer. Investor inquiries should be directed to Lehman Brothers at 212-528-7581 or 800-438-3242. The information agent for the tender offer is Global Bondholder Services Corporation.

This press release shall not constitute a tender offer to purchase or a solicitation of acceptance of the tender offer, which may be made only pursuant to the terms of the offer to purchase and related letter of transmittal. In any jurisdiction where the laws require the tender offer to be made by a licensed broker or dealer, the tender offer shall be deemed made on behalf of Freddie Mac by Lehman Brothers or another licensed broker or dealer to be designated by Freddie Mac.

Freddie Mac is a stockholder-owned company established by Congress in 1970 to support homeownership and rental housing. Freddie Mac fulfills its mission by purchasing 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 for one in six homebuyers and nearly four million renters in America.

###