FREDDIE MAC LAUNCHES NEW SERVICER PERFORMANCE AWARD

New ‘Tier One Gold’ Honors Outstanding Small and Mid-Sized Servicers

McLean, VA – Freddie Mac today announced it is expanding its Tier One Premium Awards Program by adding a new Tier One Gold designation to recognize small and mid-sized servicers with small default portfolios who achieve outstanding servicing performance.

Freddie Mac also announced it is renaming the current Tier One Performance awards for larger servicers as Tier One Platinum in order to distinguish it from the new Tier One Gold award.

"Nearly 40 percent of Freddie Mac's servicers are small to medium sized institutions," said Janet Eakes, vice president of sourcing operations at Freddie Mac. "Our new Tier One Gold program means that these servicers, like larger institutions, can now achieve best-in-class recognition for servicing excellence and top scores in investor reporting and default management on our Servicer Performance Profiles."

Starting with the 2005 performance rankings, Freddie Mac will award its new Tier One Gold award to servicers if they achieve a Tier One rating in Investor Reporting for two quarters in a calendar year, a Tier One rating in Default Management based on an averaged annual calculation, and maintain on average at least one seriously delinquent loan per month.

Tier One Gold servicers will receive several financial and professional rewards, including a $1,000 performance bonus payout, a $500 non-cash waiver towards Freddie Mac training classes and events, and industry recognition through publications and events. Maintaining Tier One Gold and/or Tier One Platinum status for four consecutive years with no material foreclosure timeline penalties earns servicers Freddie Mac's elite Hall of Fame designation and additional incentives.

Since their introduction in 1996, Freddie Mac's Servicer Performance Profiles have become the industry standard for measuring servicing performance. The Servicer Performance Profiles provide servicers with a blueprint for achieving quality servicing, and give Freddie Mac an objective tool for rating and rewarding servicers based on their performance.

Freddie Mac is a stockholder-owned corporation chartered by Congress in 1970 to create a continuous flow of funds to mortgage lenders. By supplying lenders with the money to make mortgages and packaging the mortgages into marketable securities, Freddie Mac sustains a stable mortgage credit system and reduces the mortgage rates paid by homebuyers. Over the years, Freddie Mac has made home possible for one in six homebuyers in America and two million renters.

###