FREDDIE MAC AMENDS 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 amending its offer 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. As described in Supplement No. 1 to Freddie Mac's Offer to Purchase, dated December 7, 2005, the offer price for shares of Home Ownership Funding Corporation, CUSIP #437296205, is being increased from $258.66 to $305.00 per share, and the offer price for shares of Home Ownership Funding Corporation II, CUSIP #437297203, is being increased from $258.75 to $305.09 per share. Freddie Mac is increasing the offer prices in order to induce the tender of a greater number of shares.

In addition, Freddie Mac announced that the expiration date of the revised offer is being extended from 5:00 p.m., New York City time, on December 9, 2005 to 12:00 midnight, New York City time, on December 20, 2005, with settlement expected to occur on December 21, 2005. Freddie Mac also announced that the early tender date of the revised offer will occur at 5:00 p.m., New York City time, on December 12, 2005, with early settlement expected to occur on December 13, 2005. Holders that have previously tendered their shares will receive the incremental increase in the offer price on December 13, 2005. As of 12:01 a.m., New York City time, on December 7, 2005, 87,000 shares had been tendered.

Lehman Brothers is acting 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, as supplemented and extended, 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.

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