Freddie Mac Monthly Volume Summary: December 2004

MCLEAN, Va., Jan. 25 /PRNewswire-FirstCall/ -- The following is being issued by Freddie Mac :

Introductory Note:

We released our 2003 financial results (see our Information Statement ("IS") dated September 24, 2004, available on our website, http://www.freddiemac.com/investors, for additional information). When results for 2004 are released, we will provide certain updated balance information reflected within Tables 1 through 6 for 2004 on a quarterly basis. These changes are not expected to significantly affect the overall growth trend reported for the retained portfolio. We also intend to re-estimate and report certain Interest-Rate Risk Sensitivity Disclosures after the release of our 2004 results. Although these disclosures may change, portfolio market value sensitivities are not expected to change by more than 2 percentage points and duration gap is not expected to change by more than 1 month. Additional information concerning Interest-Rate Risk Sensitivity Disclosures can be found in our Information Statement dated September 24, 2004.

December 2004 Highlights: * Total mortgage portfolio grew at an annualized rate of 7.2% in December. * Retained portfolio decreased at an annualized rate of 6.1% in December. * Retained portfolio purchases decreased to $18.0 billion in December, from $18.8 billion in November. * Retained portfolio mortgage purchase agreements, net were $17.1 billion in December, up from $7.7 billion in November. * Total PCs and Structured Securities Issued increased at an annualized rate of 3.7% in December. * Structured securitizations were $11.8 billion in December, down from $18.5 billion in November. * Single-family non-credit enhanced delinquency rate was 24 basis points in November, unchanged from the prior month. * Portfolio market value sensitivity (PMVS-L) averaged 2% in December, unchanged from November; Freddie Mac's duration gap was -1 month in December, compared to 0 months in November.

A glossary of selected Monthly Volume Summary terms is available on the Investor Relations page of our website, http://www.freddiemac.com/investors.

The Monthly Volume Summary includes volume and statistical data pertaining to our portfolios. Inquiries should be addressed to our Investor Relations Department, which can be reached by calling (571) 382-4732 or writing to: 1551 Park Run Drive, Mailstop D40, McLean, VA 22102-3110.

TABLE 1 - TOTAL MORTGAGE PORTFOLIO (1, 2) New Net Annualized Annualized Business Liquid- Increase/ Ending Growth Liquidation Purchases(3) ations(4) (Decrease) Balance Rate Rate(5) Full Year 2003 $834,864 ($737,074) $97,790 $1,414,399 7.4% 54.6% Jan 2004 $36,916 ($24,975) $11,941 $1,426,340 10.1% 20.9% Feb 33,808 (31,094) 2,714 1,429,054 2.3% 26.1% Mar 43,055 (40,486) 2,569 1,431,623 2.2% 33.9% Apr 48,299 (50,862) (2,563) 1,429,060 (2.1%) 42.0% May 50,671 (38,745) 11,926 1,440,986 10.0% 32.5% June 53,283 (33,617) 19,666 1,460,652 16.4% 28.0% July 44,758 (28,935) 15,823 1,476,475 13.0% 23.7% August 37,765 (30,678) 7,087 1,483,562 5.8% 23.9% September 35,199 (29,299) 5,900 1,489,462 4.8% 23.7% October 34,392 (30,630) 3,762 1,493,224 3.0% 24.7% November 34,606 (31,119) 3,487 1,496,711 2.8% 25.0% December 41,882 (32,919) 8,963 1,505,674 7.2% 26.1% Full Year 2004 $494,634 ($403,359) $91,275 $1,505,674 6.5% 28.3% TABLE 2 - RETAINED PORTFOLIO (1, 6) Sales, net Net Retained of Other Increase/ Purchases Activity(7) Liquidations (Decrease) Full Year 2003 $388,066 ($55,649) ($254,223) $78,194 Jan 2004 $9,402 ($2,324) ($11,884) ($4,806) Feb 11,252 (1,172) (12,706) (2,626) Mar 17,361 (2,589) (16,211) (1,439) Apr 19,620 (4,216) (19,517) (4,113) May 21,856 (1,765) (17,678) 2,413 June 27,678 (1,687) (15,701) 10,290 July 28,657 (3,105) (14,395) 11,157 August 23,427 (4,056) (14,355) 5,016 September 15,206 (1,433) (14,418) (645) October 14,945 (768) (14,589) (412) November 18,767 (7,308) (14,778) (3,319) December 17,989 (6,015) (15,315) (3,341) Full Year 2004 $226,160 ($36,438) ($181,547) $8,175 Mortgage Annualized Annualized Purchase Ending Growth Liquidation Agreements, Balance Rate Rate net(8,9) Full Year 2003 $645,466 13.8% 44.8% N/A Jan 2004 $640,660 (8.9%) 22.1% $14,571 Feb 638,034 (4.9%) 23.8% 10,707 Mar 636,595 (2.7%) 30.5% 20,354 Apr 632,482 (7.8%) 36.8% 19,126 May 634,895 4.6% 33.5% 15,934 June 645,185 19.4% 29.7% 25,487 July 656,342 20.8% 26.8% 20,019 August 661,358 9.2% 26.2% 9,633 September 660,713 (1.2%) 26.2% 12,529 October 660,301 (0.7%) 26.5% 14,068 November 656,982 (6.0%) 26.9% 7,684 December 653,641 (6.1%) 28.0% 17,078 Full Year 2004 $653,641 1.3% 28.1% $187,190 TABLE 3 - TOTAL PCs and Structured Securities Issued (1, 10, 11) Net Liquid- Increase/ Ending Annualized Issuances ations(12) (Decrease) Balance Growth Rate Full Year 2003 $713,787 ($642,343) $71,444 $1,162,068 6.6% Jan 2004 $31,653 ($19,570) $12,083 $1,174,151 12.5% Feb 26,368 (26,583)(13) (215) 1,173,936 (0.2%) Mar 32,651 (34,996) (2,345) 1,171,591 (2.4%) Apr 38,219 (43,050) (4,831) 1,166,760 (4.9%) May 41,778 (31,208) 10,570 1,177,330 10.9% June 39,022 (26,647) 12,375 1,189,705 12.6% July 30,709 (21,592) 9,117 1,198,822 9.2% August 23,461 (22,078) 1,383 1,200,205 1.4% September 23,586 (21,650) 1,936 1,202,141 1.9% October 26,541 (22,728)(13) 3,813 1,205,954 3.8% November 23,207 (23,651) (444) 1,205,510 (0.4%) December 27,953 (24,258) 3,695 1,209,205 3.7% Full Year 2004 $365,148 ($318,011) $47,137 $1,209,205(14) 4.1% TABLE 4 - RETAINED PORTFOLIO COMPONENTS (1) Non-Freddie Mac Retained Mortgage- Portfolio Freddie Mac Related Mortgage Ending PCs Securities Loans Balance Full Year 2003 $393,135 $192,061 $60,270 $645,466 Jan 2004 $388,471 $191,807 $60,382 $640,660 Feb 382,916 194,603 60,515 638,034 Mar 376,563 199,213 60,819 636,595 Apr 370,182 201,408 60,892 632,482 May 371,239 202,950 60,706 634,895 June 374,238 210,632 60,315 645,185 July 378,689 217,105 60,548 656,342 August 378,001 222,205 61,152 661,358 September 373,392 226,014 61,307 660,713 October 373,031 226,074 61,196 660,301 November 365,781 229,870 61,331 656,982 December 357,172 234,557 61,912 653,641 Full Year 2004 $357,172 $234,557 $61,912 $653,641 TABLE 5 - Multi-Class Structured Securitization Activity (15) Structured Securitizations Activity Full Year 2003 $298,118 Jan 2004 $13,943 Feb 16,967 Mar 21,855 Apr 27,728 May 16,740 June 16,771 July 19,652 August 19,428 September 13,500 October 18,477 November 18,541 December 11,828 Full Year 2004 $215,430 TABLE 6 - OUTSTANDING PCs (1, 16) Total PCs Issued, net of PC Retained Purchases Portfolio Into PC Sales PCs Retained From (Beginning PC Portfolio Retained Liquidations Balance) Issuances (17) Portfolio (18) Full Year 2003 $749,337 $713,787 ($266,989) $44,389 ($471,591) Jan 2004 $768,933 $31,653 ($4,139) $2,521 ($13,288) Feb 785,680 26,368 (3,812) 1,671 (18,887)(13) Mar 791,020 32,651 (6,957) 3,008 (24,694) Apr 795,028 38,219 (9,540) 3,851 (30,980) May 796,578 41,778 (12,963) 2,061 (21,363) June 806,091 39,022 (13,417) 2,339 (18,568) July 815,467 30,709 (14,608) 3,419 (14,854) August 820,133 23,461 (9,123) 3,097 (15,364) September 822,204 23,586 (3,593) 1,775 (15,223) October 828,749 26,541 (7,094) 1,144 (16,417)(13) November 832,923 23,207 (7,368) 7,724 (16,757) December 839,729 27,953 (4,060) 6,043 (17,632) Full Year 2004 $768,933 $365,148 ($96,674) $38,653 ($224,027) Total PCs Issued, PCs and net of Structured Retained Securities Annualized Portfolio Annualized in the Growth PCs Growth Cash and Rate (Ending Rate on Annualized Investment Out- on Out- Balance) Total PCs, Liquidation Portfolio standing standing (19) net(20) Rate(21) (22) PCs(23) PCs(24) Full Year 2003 $768,933 2.6% 62.9% $16,769 $752,164 3.2% Jan 2004 $785,680 26.1% 20.7% $18,512 $767,168 23.9% Feb 791,020 8.2% 28.8%(13) 17,252 773,768 10.3% Mar 795,028 6.1% 37.5% 20,672 774,356 0.9% Apr 796,578 2.3% 46.8% 17,609 778,969 7.1% May 806,091 14.3% 32.2% 17,121 788,970 15.4% June 815,467 14.0% 27.6% 21,052 794,415 8.3% July 820,133 6.9% 21.9% 20,614 799,519 7.7% August 822,204 3.0% 22.5% 21,867 800,337 1.2% September 828,749 9.6% 22.2% 20,599 808,150 11.7% October 832,923 6.0% 23.8%(13) 13,885 819,038 16.2% November 839,729 9.8% 24.1% 2,172 837,557 27.1% December 852,033 17.6% 25.2% 0 852,033 20.7% Full Year 2004 $852,033 10.8% 29.1% $0 $852,033 13.3% TABLE 7 - DELINQUENCIES (25) Single-Family (90 days or more delinquent) Multifamily Non Credit Credit All (60 days or more Enhanced Enhanced Loans delinquent) Dec 2003 0.27% 2.95% 0.86% 0.05% Jan 2004 0.27% 3.03% 0.87% 0.05% Feb 0.27% 3.00% 0.86% 0.07% Mar 0.25% 2.97% 0.83% 0.06% Apr 0.24% 2.77% 0.78% 0.06% May 0.23% 2.78% 0.77% 0.06% June 0.23% 2.67% 0.74% 0.05% July 0.23% 2.68% 0.74% 0.05% August 0.23% 2.70% 0.74% 0.05% September 0.23% 2.67% 0.73% 0.05% October 0.24% 2.70% 0.73% 0.05% November 0.24% 2.76% 0.75% 0.06% TABLE 8 - INTEREST-RATE RISK SENSITIVITY DISCLOSURES (26) Portfolio Market Portfolio Market Value Level Value Yield Curve Duration Gap (PMVS-L)(50 bp)(27) (PMVS-YC)(25 bp)(27) (in months)(28) Monthly Quarterly Monthly Quarterly Monthly Quarterly Average Average Average Average Average Average Jan 2004 3% -- 0% -- 0 -- Feb 3% -- 0% -- 0 -- Mar 3% 3% 0% 0% 0 0 Apr 2% -- 0% -- 0 -- May 1% -- 0% -- 0 -- June 1% 1% 0% 0% 0 0 July 1% -- 0% -- 0 -- August 2% -- 0% -- 0 -- September 2% 1% 0% 0% 0 0 October 2% -- 0% -- 0 -- November 2% -- 0% -- 0 -- December 2% 2% 0% 0% (1) 0 Full Year 2004 2% -- 0% -- 0 -- ENDNOTES (1) Ending balances and activity are based on unpaid principal balances and exclude mortgage loans and mortgage-related securities traded, but not yet settled. (2) Total mortgage portfolio (Table 1) is defined as Total PCs issued (Table 3) plus the sum of mortgage loans (within Table 4) and non- Freddie Mac mortgage-related securities (within Table 4). (3) Total mortgage portfolio New Business Purchases (Table 1) is defined as Retained Portfolio Purchases (Table 2) plus PC Issuances (Table 3) less PC Purchases Into Retained Portfolio (Table 6). (4) Includes sales of non-Freddie Mac mortgage-related securities. (5) The calculation of annualized liquidation rates for the total mortgage portfolio excludes the effect of sales of non-Freddie Mac mortgage-related securities from the Retained Portfolio. (6) Excludes mortgage-related securities held in connection with our PC market-making and support activities, which are reflected in the "Investments" caption on the consolidated balance sheets. (7) Includes a reduction in the retained portfolio for mortgage-related securities that have been sold net of additions to the retained portfolio for delinquent mortgage loans and balloon reset mortgage loans that have been purchased out of PC pools. (8) Mortgage Purchase Agreements, net includes: i) monthly purchase commitments of mortgage-related securities for the retained portfolio offset by monthly sales commitments of mortgage-related securities out of the retained portfolio, ii) mortgage-related securities that we expect to purchase pursuant to options written by us and held by certain counterparties, and iii) the net amount of monthly mortgage loan purchases and sales. In some instances, commitments may settle during the same period in which we have entered into the related commitment. Substantially all of these commitments are settled by delivery of a mortgage-related security; the rest are net settled for cash. For all periods presented, we have purchased all of the mortgage-related securities associated with written options in accordance with their contractual terms. Monthly mortgage loan purchases and sales are presented based upon settlement date as opposed to trade date due to data constraints. (9) We did not recalculate Mortgage Purchase Agreements, net as part of our 2003 financial results process and therefore that data is not available for 2003. (10) Represents (a) PCs, (b) Structured Securities backed by non-Freddie Mac mortgage-related securities and (c) other credit guarantees (as described in endnote 14b and 14c below). (11) Total PCs issued and Structured Securities exclude Structured Securities where we have resecuritized PCs and other previously issued Structured Securities. These excluded Structured Securities do not increase our credit related exposure and consist of single class Structured Securities backed by PCs, Real Estate Mortgage Investment Conduit (REMIC) and principal-only strips. The notional balance of interest-only strips is excluded because this table is based on unpaid principal balance. Also excluded are modifiable and combinable REMIC tranches and Interest and Principal classes, where the holder has the option to exchange the security tranches for other pre-defined security tranches. Additional information concerning "Resecuritization" can be found in our Information Statement dated September 24, 2004. (12) Represents liquidations of all PCs and Structured Securities backed by non-Freddie Mac mortgage-related securities and other credit guarantees of mortgage loans held by third parties. Includes prepayment activity and delinquent mortgage loans and balloon reset mortgage loans purchased out of PC pools. (13) The liquidations reported in Table 3 and Table 6 for February 2004 and October 2004 include approximately $735 million and $785 million, respectively, related to the exchange with a third party of outstanding PCs for the related underlying mortgage loans. Absent these transactions, the February 2004 and October 2004 annualized liquidation rates would have been 27.7 percent and 22.6 percent, respectively. Furthermore, absent these two transactions, the December 2004 year-to-date annualized liquidation rate would have been 28.9 percent. (14) Includes, as of December 31, 2004, a) $4 billion of Structured Securities backed by GNMA Certificates; b) $6 billion that pertain to our guarantee of the payment of P&I on tax exempt multifamily housing revenue bonds that support pass-through certificates issued by third parties and multifamily mortgage loans that are originated and held by state and municipal agencies to support tax exempt multifamily housing revenue bonds and c) $2 billion of single family mortgage loans held by third parties for which we provide a guarantee. (15) Includes activity where we have resecuritized PCs and other previously issued Structured Securities related to multi-class Structured Securities, primarily REMICs as well as principal-only stripped securities and other Structured Securities backed by non- Freddie Mac mortgage-related securities. These amounts exclude resecuritizations of PCs into single-class securities. (16) Represents (a) PCs, (b) Structured Securities backed by non-Freddie Mac mortgage-related securities and (c) other credit guarantees (as described in endnote 14b and 14c above) held by third parties. (17) Excludes Freddie Mac securities purchased in connection with PC market making and support activities, which are reflected in the "Investment" caption on our consolidated balance sheets. (18) Liquidations include prepayment activity and delinquent mortgage loans and balloon reset mortgage loans purchased out of PC pools and exclude liquidations on PCs and Structured Securities backed by non- Freddie Mac mortgage-related securities held in the retained portfolio. (19) Total PCs Issued, net of Retained Portfolio PCs represents Total PCs and Structured Securities (as defined in endnote 10) less PCs and Structured Securities held in the retained portfolio. (20) Calculated based on the ending balance of Total PCs Issued, net of Retained Portfolio PCs. (21) In our December 2004 Monthly Volume Summary, we revised how we calculate the Annualized Liquidation Rate on Table 6 (Outstanding PCs), which is presented as a percentage of Total PCs Issued, net of Retained Portfolio PCs, to include both liquidations due to repayment activity and liquidations due to the purchase out of PC pools of delinquent loans and balloon reset mortgages. This change aligns the methodologies for calculating liquidation rates between Table 1 (Total Mortgage Portfolio), Table 2 (Retained Portfolio) and Table 6. Consequently, we have revised the Annualized Liquidation Rates for all periods presented on Table 6. The Annualized Liquidation Rate for Full Year 2004 was 28.4 percent under the previously reported methodology. (22) Represents the ending balance of PCs and Structured Securities held in connection with our PC market-making and support activities that historically have been reflected in the "Investment" caption on our consolidated balance sheets. As previously announced in our Information Statement Supplement dated October 4, 2004, we began ceasing the operations of our PC market-making and support activities (predominantly related to our Securities Sales & Trading Group business unit) during the fourth quarter of 2004. (23) Represents the ending balance of PCs and Structured Securities held by third parties. (24) Calculated based on the ending balance of Outstanding PCs. (25) Includes delinquencies on mortgage loans where Freddie Mac has transferred primary or full default risk to various third parties, as well as Structured Securities backed by alternative collateral deals. Previously reported delinquency data is subject to change to reflect currently available information. For example, delinquency data reported for some Structured Securities may be omitted or subsequently revised by servicers of the underlying loans, which may require revision to previously reported numbers. For periods presented in this report, revisions to previously reported delinquency rates have not been significant nor have they significantly affected the overall trend of our Single-Family "Credit Enhanced" and "All Loans" delinquency rates. Delinquencies on mortgage loans underlying alternative collateral deals may be categorized as delinquent on a different schedule than other mortgage loans due to variances in industry practice. (26) Our PMVS and Duration Gap measures provide useful estimates of key interest-rate risk exposures. While we believe that PMVS and Duration Gap are useful risk management tools, they should be understood as estimates rather than precise measurements. Methodologies employed to calculate Interest-Rate Risk Sensitivity Disclosures are regularly changed on a prospective basis to reflect improvements in underlying estimation processes. (27) Rounded to the nearest percent. (28) Rounded to the nearest month.