THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Freddie Mac (FRE)

7/12/2006 Proxy Information

In the ordinary course of business, we were a party during 2005, and expect to continue to be a party during 2006, to certain business transactions with institutions a‚liated with members of our Board. Management believes that the terms and conditions of the transactions were no more and no less favorable to us than the terms of similar transactions with una‚liated institutions to which we are, or expect to be, a party. Those transactions that are required to be disclosed by SEC registrants under rules promulgated by the SEC are described below. In October 2001, Freddie Mac purchased a revolving credit facility, which was initially secured by certain multifamily properties in New York City. A subsidiary of CIT, of which Mr. Peek is Chairman and Chief Executive O‚cer, was a 50% limited partner in the borrower. The credit facility could be drawn on in multiple tranches and was initially funded in the amount of approximately $133 million in October 2001. In July 2002, the borrower exercised its option to expand the credit facility to approximately $157 million. The principal was repaid in January 2005 in a single payment of approximately $157 million and the credit facility was terminated at that time.

The credit facility bore interest at a …oating rate based on the 1-month Freddie Mac Reference BillÈ Index. Freddie Mac Reference BillsÈ securities are short-term debt obligations of Freddie Mac that we auction to dealers on a regular schedule. At the time the credit facility was repaid, the borrower had multiple tranches outstanding, bearing interest rates of 2.774% and 5.25%

6/14/2005 Proxy Information

Transactions with Institutions Related to Directors

In the ordinary course of business, we were a party during 2004, and expect to continue to be a party during 2005, to certain business transactions with institutions affiiated with members of our Board. Management believes that the terms and conditions of the transactions were no more and no less favorable to us than the terms of similar transactions with unaffliated institutions to which we Proposal 1: Election of Directors are, or expect to be, a party. Those transactions that are required to be disclosed under rules promulgated by the SEC are described below.

Bank of America Corporation, of which Mr. McQuade was President from April through June, 2004, is the parent of Bank of America, N.A., which has been a major seller of mortgage loans to Freddie Mac. From January 1, 2004 through December 31, 2004, we purchased approximately $4.1 billion of mortgage loans from Bank of America. Bank of America is also one of the counterparties with which we execute derivative transactions in the ordinary course of business. In addition, Banc of America Securities LLC, also a subsidiary of Bank of America, has acted as an underwriter of our debt and mortgage securities, for which it has received customary underwriting compensation. During the period January 1, 2004 through December 31, 2004, Lazard Ltd, formerly Lazard Frfieres & Co. LLC, of which Mr. Lewis is a Managing Director and Co-Chairman of Investment Banking, acted as sole underwriter of three Freddie Mac debt offerings, for which it received customary underwriting compensation.

Legal Proceedings

For information about legal proceedings related to the restatement where one or more current or former executive officers or directors are or have been named parties, see NOTE 13: LEGAL CONTINGENCIES to the consolidated Financial statements in the accompanying Annual Report. Indemnification and Other Reimbursements of Directors, Officers and Employees Our bylaws provide for indemnification and advancement of reasonable fees and expenses (including legal fees) to any director, officer or employee who is a party or threatened to be made a party to any action, suit or proceeding, whether civil, criminal, administrative or investigative and whether formal or informal, by reason of the fact that he or she is or was a director, officer or employee of Freddie Mac, although indemnification is not permitted in the case of willful misconduct, knowing violation of criminal law or improper personal benefit. Consistent with our bylaws, the Board has authorized, and has delegated authority to the GNC over, the advancement of reasonable fees and expenses (including legal fees) incurred by our current and former directors, officers and employees in connection with certain legal proceedings described in NOTE 13: LEGAL CONTINGENCIES to the consolidated financial statements in the accompanying Annual Report. In addition, the Board has authorized, and has delegated authority to the GNC over, the reimbursement of reasonable fees and expenses (including legal fees) incurred by our current or former directors, officers and employees who are interviewed or who provide testimony in certain limited internal or external investigations and proceedings in which they are not parties or are not threatened to be made parties (to whom we refer as information witnesses) and who, therefore, are not eligible for advancement or indemnification under our bylaws. The GNC has hired special outside counsel to make advancement determinations under our bylaws for reimbursements to information witnesses. Each current or former director, officer and employee receiving advancement under our bylaws or reimbursement as an information witness has executed a written undertaking to repay amounts ultimately determined to be ineligible for indemnification or reimbursement.

In connection with these legal proceedings and investigations, we have paid an aggregate of approximately $16.8 million of advancements and reimbursements through May 31, 2005 for all current and former directors, officers and employees. We anticipate continuing to make additional advancements under our bylaws and to provide reimbursements to information witnesses in 2005.

9/24/2004 Proxy Information

In the ordinary course of business, we were a party during 2003, and expect to continue to be a party during 2004, to certain business transactions with institutions affiliated with members of our Board. Management believes that the terms and conditions of the transactions were no more and no less favorable to us than the terms of similar transactions with unaffiliated institutions to which we are, or expect to be, a party. These transactions are described below.

In 2003 and through August 31, 2004, Ms. Engler's husband was employed by Electronic Data Systems Corporation, or EDS, as President of EDS State and Local Government and Vice President of EDS Government Solutions for North America. EDS provides services to Freddie Mac that are negotiated at arm's length. In 2003, EDS received revenues from Freddie Mac in the amount of $24,121,676. Mr. Engler's employment with EDS ended on August 31, 2004. As discussed above in ""Corporate Governance íDirector Independence,''

Mr. Johnson is Chairman and Chief Executive Officer of GreenPoint, which is the parent of GreenPoint Mortgage Funding, Inc. and GreenPoint Bank. Through these wholly-owned subsidiaries, GreenPoint regularly sells mortgage loans to Freddie Mac. For the period commencing on January 1, 2003 and ending on June 30, 2004, GreenPoint sold mortgages to Freddie Mac in the aggregate principal amount of approximately $4.2 billion. In February 2004, GreenPoint announced that it had entered Election of Directors into an Agreement and Plan of Merger with North Fork under which GreenPoint and its subsidiaries will be acquired by North Fork in an all stock merger transaction. Upon the closing of the merger, which is expected to take place on or before September 30, 2004, Mr. Johnson intends to resign as Chairman and CEO and as a member of the board of directors of GreenPoint, and is expected to join the board of directors of North Fork. Our relationship with GreenPoint is expected to continue after Mr. Johnson resigns as Chairman and CEO of GreenPoint.

Bank of America Corporation, of which Mr. McQuade was President from April through June, 2004, is the parent of Bank of America, N.A., which has been a major seller of mortgage loans to Freddie Mac. From January 1, 2003 through June 30, 2004, we purchased approximately $14.9 billion of mortgage loans from Bank of America. Bank of America is also one of the counterparties with which we execute derivative transactions in the ordinary course of business. In addition, Bank of America Securities LLC has acted as an underwriter of our debt and mortgage securities, for which it has received standard underwriting compensation.

2/27/2004 Proxy Information

In the ordinary course of business, we were a party during 2003 or 2002, or expect to be a party during 2004, to certain business transactions with institutions affiliated with members of our Board. Management believes that the terms and conditions of the transactions were no less favorable to Freddie Mac than the terms of similar transactions with unaffiliated institutions to which we are, or expect to be, a party. These transactions are described below. Citigroup Global Markets Inc., formerly known as Salomon Smith Barney Inc., is the brokerdealer affiliate of Citigroup, Inc., where Mr. Jones is Chairman and Chief Executive Officer of the Global Investment Management Group and Chairman and Chief Executive Officer of Citigroup Asset Management. During 2003 and 2002, Citigroup Global Markets participated as an underwriter in the offer and sale of our equity, mortgage-related and debt securities to the public. Citigroup Global Markets and Citibank, N.A., the commercial banking affiliate of Citigroup, Inc., also were our counterparties in certain derivatives transactions that involved payments to and from Freddie Mac. These transactions were conducted at arm's length in the ordinary course of business. Citigroup Global Markets received standard underwriter's discounts for its underwriting activities. Citigroup Global Markets and its affiliates expect to engage in similar transactions with Freddie Mac in 2004.

Clark & Weinstock, a government affairs firm in Washington, D.C., provides services to Freddie Mac. Mr. Gribbin, a presidential appointee, was a Managing Director of Clark & Weinstock and retired from the firm effective April 1, 2003. In 2003 and 2002, Freddie Mac paid $421,000 and $424,000, respectively, to the firm. Clark & Weinstock expects to provide similar services to Freddie Mac in 2004. Freddie Mac's relationship with Clark & Weinstock began in 1996, has continued after Mr. Gribbin's retirement from the firm, and is expected to continue after Mr. Gribbin leaves Freddie Mac's Board. Powers, Crane & Company, LLC, a government affairs firm in New York, provides services to Freddie Mac. In 2003 and 2002, Freddie Mac paid $242,000 and $50,000, respectively, to the firm, of which Mr. Powers, a presidential appointee, and his son are Principals and owners. Powers, Crane & Company expects to provide similar services to Freddie Mac in 2004 and such services are expected to continue after Mr. Powers leaves Freddie Mac's Board.

As of 2003, Ms. Engler's husband is employed by Electronic Data Systems Corporation ("EDS''), as President of EDS State and Local Government and Vice President of EDS Government Solutions for North America. EDS provides services to Freddie Mac that are negotiated at arm's length. In 2003, EDS received revenues from Freddie Mac in the amount of $24,121,676. His employment with Electronic Data Systems Corp. ends August 31, 2004.

Legal Proceedings For additional information about legal proceedings related to the restatement where one or more current or former executive officers or directors are or have been named parties, see "SUBSEQUENT EVENTS Illegal Proceedings'' in the accompanying Annual Report.

4/2/2002 Proxy Information

Salomon Smith Barney, Inc. ("Salomon'') is the broker-dealer affiliate of Citigroup, Inc. (where Mr. Jones is Chairman and Chief Executive Officer of the Global Investment Management and Private Banking Group). During 2001, Salomon participated as an underwriter in the offer and sale of Freddie Mac equity, mortgage-related and debt securities to the public. Salomon and Citibank, N.A. (the commercial banking affiliate of Citigroup, Inc.) also were Freddie Mac's counterparties in certain derivatives transactions that involved payments to and from Freddie Mac. The amount of these securities and derivatives transactions was approximately $204 billion (including notional amounts that serve as a factor in determining periodic amounts to be received and paid and generally do not represent actual amounts to be exchanged). That amount includes approximately $33 billion of short-term discount notes purchased from Freddie Mac in daily dealer group sales to provide Freddie Mac with current working capital. These transactions were conducted at arm's length in the ordinary course of business. Salomon received standard underwriter's discounts for its underwriting activities. Salomon and its affiliates expect to engage in similar transactions with Freddie Mac in 2002. Clark and Weinstock, a government affairs firm in Washington, D.C. provides services to Freddie Mac. In 2001 Freddie Mac paid $364,377 to the firm, of which Mr. Gribbin is Managing Director. Clark and Weinstock expects to provide similar services to Freddie Mac in 2002. During 2002 the Corporation retained PricewaterhouseCoopers as its independent public accountants for 2002. Since 1995 Mr. O'Malley has been Retired Chairman and Chairman Emeritus of Price Waterhouse LLP, a predecessor firm to PricewaterhouseCoopers. As Retired Chairman and Chairman Emeritus of Price Waterhouse LLP, Mr. O'Malley provides no services to PricewaterhouseCoopers. Mr. O'Malley receives retirement benefits arising from his past services to Price Waterhouse LLP. These benefits are received from a trust established in accordance with the auditor independence standards of the U.S. Securities and Exchange Commission. In addition, Mr. O'Malley rents personal office space from PricewaterhouseCoopers at market rates. During 2001 PricewaterhouseCoopers provided consulting services to Freddie Mac, involving payments from the Corporation of approximately $850,000.