FREDDIE MAC ANNOUNCES ENHANCEMENTS TO MORTGAGE-BACKED SECURITIES DISCLOSURES

Policy and Practice Changes Designed to Improve Transparency

McLean, VA – Freddie Mac (NYSE:FRE) today announced that as part of its ongoing review of mortgage-backed security disclosure policies and practices, the company will enhance its disclosures for ARM and ARM Giant PC securities and Initial Interest fixed-rate and ARM PC securities, beginning in September 2005.

"Freddie Mac is committed to remaining at the forefront of mortgage-backed securities disclosure practices," said Mark Hanson, vice president of mortgage funding. "Expanding disclosure capabilities increases the transparency of our ARM PCs and contributes to investors' increased understanding of our securities. That, in turn, helps Freddie Mac continue to serve our vital mission of providing liquidity, stability and affordability to America's housing finance system."

Effective with the company’s September 2005 disclosure, the enhancements will be as follows:

1. Freddie Mac will expand its disclosures for ARM PCs and ARM Giant PCs by providing the following elements at the time securities are issued.
   • Original weighted average loan age (WALA)
   • Original weighted average original loan term (WAOLT)
   • Current weighted average remaining months to maturity (WARM)
   • Current weighted average loan age (WALA)
   • Current weighted average original loan term (WAOLT)

   Original WALA and WAOLT will be disclosed at issuance and current WARM, WALA and WAOLT will be updated monthly.

   Freddie Mac currently discloses Original WARM for ARM and ARM Giant PC securities. The Original WARM calculation is being changed to reflect the weighted average of the current number of scheduled monthly payments, which remain on the mortgages in a PC pool without giving effect to full and partial unscheduled principal payments.

2. Freddie Mac will disclose the original and current weighted average months to amortization (WAMTAM) for Initial Interest fixed-rate securities and ARM PC securities. In addition, the ARM PC Component File will give first principal and interest (P & I) information as of each adjustment date.

For additional information about these enhancements, please contact Freddie Mac Investor Inquiry at (800) 336-3672 or Investor_Inquiry@FreddieMac.com.

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 two million renters in America.

###