Dividends paid on Freddie Mac's common and preferred stock are eligible for the new reduced federal income tax rates on "qualifying dividends" paid to individuals. These rates are effective for tax years beginning in 2003 and continuing through 2008. However, there are limitations on an individual investor's ability to use the reduced rates.

Subject to declaration by Freddie Mac's Board of Directors, dividends on the corporation's common stock and preferred stocks are expected to be paid quarterly each year in March, June, September and December. Historical dividends can be found in the Quarterly Summary of Dividends [PDF 13K]. Through the Computershare Investment Plan (formerly The DirectSERVICE™ Investment Program) investors can reinvest dividends in full or in part at no cost.

The company’s corporate headquarters is located in McLean, VA. Freddie Mac also operates five regional offices in Atlanta, Chicago, Dallas, Los Angeles and New York.

No. Freddie Mac was chartered by Congress as a private company serving a public purpose. While it is sometimes referred to as a “government-sponsored enterprise” or a “corporate instrumentality of the United States,” Freddie Mac is not an agency of the Federal or any state government nor does Freddie Mac receive federal funds. In fact, Freddie Mac is one of the nation’s largest federal taxpayers.

Yes. The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 created a regulatory oversight structure for Freddie Mac divided to address two functions - our housing mission and our safety and soundness. The U.S. Department of Housing and Urban Development (HUD) has oversight responsibilities for the housing mission of Freddie Mac. In 1996, HUD set affordable housing goals for Freddie Mac based on income and population diversity.

If you are a shareholder, please contact our Investor Relations group at (703) 903-3883 or by email at shareholder@freddiemac.com. If you are a debt investor, please contact our Debt Investor Relations group at (571) 382-3700 or (888) 882-6275 or by email at debt_securities@freddiemac.com. If you are an investor in Freddie Mac mortgage-backed securities, please call (800) 336-3672 or email investor_inquiry@freddiemac.com.

Freddie Mac began selling debt securities to the retail market in 1995 in response to requests from the dealer community. Our FreddieNotes securities program is a more focused approach to issuing and distributing retail debt securities that enables Freddie Mac to diversify its investor base and tap new sources of funding.

Yes, if so provided in the applicable Pricing Supplement, Freddie Mac has the right, but not the obligation, to redeem FreddieNotes securities at par, usually beginning one to four years after issuance. Yes. Freddie Mac may choose to redeem FreddieNotes securities when prevailing interest rates are relatively low.

Fannie Mae (FNMA) & Freddie Mac (FHLMC) purchase conforming loans on the seconday market enabling banks to regain capital and issue more loans (otherwise banks would run out of money to lend). Borrowers must qualify under FNMA/FHLMC's guidelines in order to get the lowest rates available.

On January 3, 1989, Freddie Mac stock was converted into a class of stock that could be owned and traded by all investors. (Prior to that date, ownership of the stock was limited by its terms to financial institutions and a small number of other parties.) On August 9, 1989, Congress amended Freddie Mac's charter to convert this class of stock into Voting Common Stock, granting its holders the right to elect 13 directors of the Company.

Freddie Mac is in the business of making homeownership and quality, affordable rental housing more available in America. It accomplishes this by helping to keep the cost of mortgage finance as low as an efficient capital market can. Freddie Mac uses the capital market on behalf of housing in two ways: the securitization of mortgages purchased from lenders throughout the U.S.

Freddie Mac has helped 41 million American families own their own homes or rent decent housing by assuring that lenders have a reliable source of low-cost mortgage money.

Freddie Mac makes sure that mortgage money is widely available at the lowest cost, saving borrowers up to $23 billion a year in mortgage interest payments.

Shares of Freddie Mac common stock may be purchased through a brokerage firm or by contacting Computershare Investor Services (Computershare), the corporation's stock transfer agent, which offers and administers the DirectSERVICE? Investment Program. For more information on Computershare's DirectSERVICE? Investment Program, please visit the Computershare website or call (781) 575-2879.

Freddie Mac has had two common stock splits. The Board of Directors authorized a 3-for-1 stock split effective April 9, 1992 and a 4-for-1 stock split effective January 13, 1997.

Yes. Your real estate broker will know if there are any special terms. It is usually 5% down at competitive interest rates. They have lower closing costs and fees.

Freddie Mac does not issue securities directly to the public. Please contact your broker if you are interested in investing in Freddie Mac mortgage securities.

Yes, if this is an earning divident and you held the undelying stock long enough. To ensure that the dividend qualified for a lower 5% or 15% tax rate, the IRS requires you to hold the stock for at least 60 consecutive days within a 121-day larger window, spanning 60 days before and after the ex-dividend date. Otherwise, the dividend is taxed as regular income.

technology has developed, our ability to match loan transactions has improved and the quality of the data has improved with better systems. Because of this, Freddie Mac now believes that we can provide a national index that extends back an additional five years, which enables researchers and others interested in housing market information to assess the impacts of an additional business cycle on home values.

The Office of Management and Budget (OMB) defines metropolitan and micropolitan statistical areas for purposes of collecting, tabulating, and publishing Federal data. Metropolitan and micropolitan statistical area definitions result from applying published standards to Census Bureau data. In June 2003 the U.S.