Freddie Mac Monthly Volume Summary: JANUARY 2005

MCLEAN, Va., Feb. 23 /PRNewswire-FirstCall/ -- The following is being issued by Freddie Mac :

Introductory Note:

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

January 2005 Highlights: * Total mortgage portfolio grew at an annualized rate of 7.8% in January. * Retained portfolio decreased at an annualized rate of 11.1% in January. * Retained portfolio purchases decreased to $14.5 billion in January, from $18.0 billion in December. * Retained portfolio mortgage purchase agreements, net were $12.2 billion in January, down from $17.1 billion in December. * Total PCs and Structured Securities Issued increased at an annualized rate of 8.2% in January. * Structured securitizations were $16.2 billion in January, up from $11.8 billion in December. * Single-family non-credit enhanced delinquency rate was 24 basis points in December, unchanged from the prior month. * Portfolio market value sensitivity (PMVS-L) averaged 2% in January, unchanged from December; Freddie Mac's duration gap was zero months in January, compared to -1 month in December.

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) Non- Freddie Annual New Mac Annual -ized Business Mortgage- Net -ized Liquid- Purchases Related Liquid- Increase/ Ending Growth ation Securities Securities ations(4) (Decrease) Balance Rate Rate Jan 2004 $36,916 ($303) ($24,672) $11,941 $1,426,340 10.1% 20.9% Feb 33,808 (13) (31,081) 2,714 1,429,054 2.3% 26.1% Mar 43,055 (64) (40,422) 2,569 1,431,623 2.2% 33.9% Apr 48,299 (775) (50,087) (2,563) 1,429,060 (2.1%) 42.0% May 50,671 (66) (38,679) 11,926 1,440,986 10.0% 32.5% Jun 53,283 (52) (33,565) 19,666 1,460,652 16.4% 28.0% Jul 44,758 (46) (28,889) 15,823 1,476,475 13.0% 23.7% Aug 37,765 (1,330) (29,348) 7,087 1,483,562 5.8% 23.9% Sep 35,199 (35) (29,264) 5,900 1,489,462 4.8% 23.7% Oct 34,392 (21) (30,609) 3,762 1,493,224 3.0% 24.7% Nov 34,606 (15) (31,104) 3,487 1,496,711 2.8% 25.0% Dec 41,882 (397) (32,522) 8,963 1,505,674 7.2% 26.1% Full Year 2004 $494,634 ($3,117) ($400,242) $91,275 $1,505,674 6.5% 28.3% Jan 2005 $35,888 ($115) ($25,977) $9,796 $1,515,470 7.8% 20.7% TABLE 2 - RETAINED PORTFOLIO (1, 5) Retained Sales, net of Net Increase/ Purchases Other Activity(6) Liquidations (Decrease) 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 Jun 27,678 (1,687) (15,701) 10,290 Jul 28,657 (3,105) (14,395) 11,157 Aug 23,427 (4,056) (14,355) 5,016 Sep 15,206 (1,433) (14,418) (645) Oct 14,945 (768) (14,589) (412) Nov 18,767 (7,308) (14,778) (3,319) Dec 17,989 (6,015) (15,315) (3,341) Full Year 2004 $226,160 ($36,438) ($181,547) $8,175 Jan 2005 $14,488 ($7,098) ($13,453) ($6,063) Annualized Ending Annualized Liquidation Mortgage Purchase Balance Growth Rate Rate Agreements, net(7) 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 Jun 645,185 19.4% 29.7% 25,487 Jul 656,342 20.8% 26.8% 20,019 Aug 661,358 9.2% 26.2% 9,633 Sep 660,713 (1.2%) 26.2% 12,529 Oct 660,301 (0.7%) 26.5% 14,068 Nov 656,982 (6.0%) 26.9% 7,684 Dec 653,641 (6.1%) 28.0% 17,078 Full Year 2004 $653,641 1.3% 28.1% $187,190 Jan 2005 $647,578 (11.1%) 24.7% $12,247 TABLE 3 - TOTAL PCs and Structured Securities Issued (1, 8, 9) Net Annualized Increase/ Ending Growth Issuances Liquidations(10) (Decrease) Balance Rate Jan 2004 $31,653 ($19,570) $12,083 $1,174,151 12.5% Feb 26,368 (26,583)(11) (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% Jun 39,022 (26,647) 12,375 1,189,705 12.6% Jul 30,709 (21,592) 9,117 1,198,822 9.2% Aug 23,461 (22,078) 1,383 1,200,205 1.4% Sep 23,586 (21,650) 1,936 1,202,141 1.9% Oct 26,541 (22,728)(11) 3,813 1,205,954 3.8% Nov 23,207 (23,651) (444) 1,205,510 (0.4%) Dec 27,953 (24,258) 3,695 1,209,205 3.7% Full Year 2004 $365,148 ($318,011) $47,137 $1,209,205 4.1% Jan 2005 $26,135 ($17,850) $8,285 $1,217,490(12) 8.2% TABLE 4 - RETAINED PORTFOLIO COMPONENTS (1) Non-Freddie Retained Mac Mortgage- Portfolio Freddie Related Mortgage Ending Mac PCs Securities Loans Balance 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 Jun 374,238 210,632 60,315 645,185 Jul 378,689 217,105 60,548 656,342 Aug 378,001 222,205 61,152 661,358 Sep 373,392 226,014 61,307 660,713 Oct 373,031 226,074 61,196 660,301 Nov 365,781 229,870 61,331 656,982 Dec 357,172 234,557 61,912 653,641 Full Year 2004 $357,172 $234,557 $61,912 $653,641 Jan 2005 $349,598 $235,697 $62,283 $647,578 TABLE 5 - Multi-Class Structured Securitization Activity (13) Structured Securitizations Activity Jan 2004 $13,943 Feb 16,967 Mar 21,855 Apr 27,728 May 16,740 Jun 16,771 Jul 19,652 Aug 19,428 Sep 13,500 Oct 18,477 Nov 18,541 Dec 11,828 Full Year 2004 $215,430 Jan 2005 $16,171 TABLE 6 - OUTSTANDING PCs (1, 14) Total PCs Issued, net of Retained PC Portfolio Purchases PC Sales PCs Into From (Beginning PC Retained Retained Liquidations Balance) Issuances Portfolio(15) Portfolio (16) Jan 2004 $768,933 $31,653 ($4,139) $2,521 ($13,288) Feb 785,680 26,368 (3,812) 1,671 (18,887)(11) 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) Jun 806,091 39,022 (13,417) 2,339 (18,568) Jul 815,467 30,709 (14,608) 3,419 (14,854) Aug 820,133 23,461 (9,123) 3,097 (15,364) Sep 822,204 23,586 (3,593) 1,775 (15,223) Oct 828,749 26,541 (7,094) 1,144 (16,417)(11) Nov 832,923 23,207 (7,368) 7,724 (16,757) Dec 839,729 27,953 (4,060) 6,043 (17,632) Full Year 2004 $768,933 $365,148 ($96,674) $38,653 ($224,027) Jan 2005 $852,033 $26,135 ($4,735) $7,390 ($12,931) PCs and Total PCs Structured Issued, Annualized Securities net of Growth in the Annualized Retained Rate on Cash and Growth Portfolio Total Annualized Investment Rate on PCs (Ending PCs, Liquidation Portfolio Outstanding Outstanding Balance)(17) net(18) Rate(19) (20) PCs(21) PCs(22) Jan 2004 $785,680 26.1% 20.7% $18,512 $767,168 23.9% Feb 791,020 8.2% 28.8%(11) 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% Jun 815,467 14.0% 27.6% 21,052 794,415 8.3% Jul 820,133 6.9% 21.9% 20,614 799,519 7.7% Aug 822,204 3.0% 22.5% 21,867 800,337 1.2% Sep 828,749 9.6% 22.2% 20,599 808,150 11.7% Oct 832,923 6.0% 23.8%(11) 13,885 819,038 16.2% Nov 839,729 9.8% 24.1% 2,172 837,557 27.1% Dec 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% Jan 2005 $867,892 22.3% 18.2% $0 $867,892 22.3% TABLE 7 - DELINQUENCIES (23) Single-Family (90 days Multifamily or more delinquent) Non Credit Credit (60 days or more Enhanced Enhanced All Loans delinquent) 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% Jun 0.23% 2.67% 0.74% 0.05% Jul 0.23% 2.68% 0.74% 0.05% Aug 0.23% 2.70% 0.74% 0.05% Sep 0.23% 2.67% 0.73% 0.05% Oct 0.24% 2.70% 0.73% 0.05% Nov 0.24% 2.76% 0.75% 0.06% Dec 0.24% 2.75% 0.73% 0.06% TABLE 8 - INTEREST-RATE RISK SENSITIVITY DISCLOSURES (24) Portfolio Market Portfolio Market Value Level Value Yield Curve Duration Gap (PMVS-L) (50bp)(25) (PMVS-YC) (25 bp)(25) (in months)(26) 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 -- Jun 1% 1% 0% 0% 0 0 Jul 1% -- 0% -- 0 -- Aug 2% -- 0% -- 0 -- Sep 2% 1% 0% 0% 0 0 Oct 2% -- 0% -- 0 -- Nov 2% -- 0% -- 0 -- Dec 2% 2% 0% 0% (1) 0 Full Year 2004 2% -- 0% -- 0 -- Jan 2005 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) Effective January 2005, we have separated Non-Freddie Mac Mortgage- Related Securities Sales from Liquidations (Table 1). This change had no effect on the Annualized Liquidation Rate in Table 1. (5) Excludes mortgage-related securities held in connection with our PC market-making and support activities, which are reflected in the "Investments" caption on our consolidated balance sheets. (6) 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. (7) Mortgage Purchase Agreements, net includes: a) 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, b) mortgage-related securities that we expect to purchase pursuant to options written by us and held by certain counterparties, and c) 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. (8) Represents (a) PCs, (b) Structured Securities backed by non-Freddie Mac mortgage-related securities and (c) other credit guarantees (as described in Endnote 12 below). (9) 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. (10) 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. (11) 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 in Table 6 would have been 27.7 percent and 22.6 percent, respectively. (12) Includes, as of January 31, 2005, a) $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 b) $2 billion of single family mortgage loans held by third parties for which we provide a guarantee. (13) 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. (14) Represents (a) PCs, (b) Structured Securities backed by non-Freddie Mac mortgage-related securities and (c) other credit guarantees (as described in Endnote 12 above) held by third parties. (15) 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. (16) 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. (17) Total PCs Issued, net of Retained Portfolio PCs represents Total PCs and Structured Securities (as defined in Endnote 8) less PCs and Structured Securities held in the retained portfolio. (18) Calculated based on the ending balance of Total PCs Issued, net of Retained Portfolio PCs. (19) We calculate the Annualized Liquidation Rate in 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. (20) 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. (21) Represents the ending balance of PCs and Structured Securities held by third parties. (22) Calculated based on the ending balance of Outstanding PCs. (23) 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. (24) 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. (25) Rounded to the nearest percent. (26) Rounded to the nearest month.