Company: Freddie Mac

Founders: Chartered by Congress as a private corporation

Industry: Credit Services / Financial Services

History:

Freddie Mac is a stockholder-owned corporation that was established to provide reliable, continuous, and low-cost credit flow to finance more affordable housing for Americans. It is a government-sponsored enterprise (GSE) that works by purchasing mortgages from lenders, packaging the mortgages into securities, and guaranteeing and selling these securities to investors. Although chartered by the government, Freddie Mac does not receive direct federal government aid. The McLean, Virginia-based company is the nation’s second largest mortgage buyer and was ranked 50^th in Fortune 500 in 2007.

In 1970, the U.S. Congress created the charter for Federal Home Loan Mortgage Corporation to form a national secondary market for traditional home mortgages to balance out the inequality in American regions in terms of the availability of home mortgages as well as their interest rates. A year later, the company introduced the first conventional mortgage security, the Mortgage Participation Certificate (PC).

In 1984, the company achieved the $100 billion mark for home financing and also distributed 15 million shares of participating, preferred, nonvoting stock to individual member savings establishments across the nation.

In 1993, the increasing mortgage finances went beyond the $1 trillion mark.

In 1995, the company introduced Loan Prospector, an automated underwriting service that had been designed to restructure the mortgage process and to reduce loan origination costs.

In 1997, the company adopted Freddie Mac as its official name.

In 2002, an agreement was made that required Freddie Mac and its competitors to register their stock with the Securities and Exchange Commission for the first time.

Today, Freddie Mac continues to focus on its primary priorities including corporate governance, affordable housing, accurate financial management, public policy, and its mission to make homeownership and rental feasible for more people.

Leadership:

Executive Management

· Richard F. Syron, Chairman & CEO

· Patricia Cook, Executive VP and Chief Business Officer

· Anthony Piszel, Executive VP and Chief Financial Officer

· Mike Perlman, Executive VP of Operations and Technology

· Robert E. Bostrom, Executive VP and General Counsel

· Paul G. George, Executive VP of Human Resources

· Ralph F. Boyd, Jr., Executive VP of Community Relations and Chairman and CEO of the Freddie Mac Foundation

Board of Directors

· Richard F. Syron

· Barbara T. Alexander

· Geoffrey T. Boisi

· Michelle Engler

· Robert R. Glauber

· Richard Karl Goeltz

· Thomas S. Johnson

· William M. Lewis, Jr.

· Shaun F. O’Malley

· Nicolas P. Retsinas

· Stephen A. Ross

Quotes:

London’s Financial Times Interviews CEO Syron

September 28, 2007

“Our current problem is caused by three things. One is that for the first time in history we have the world’s largest emerging economy being a net exporter of both capital and labour. Now we all know about capital, that’s increased liquidity. Because they’ve exported labour, it’s kept inflation down, and there’s a lot of central banks worldwide that have relatively lower rates. The second thing is advances in technology have de-institutionalised the mortgage market and made it much more spread around and diversified . . . The third thing is the old tension between fear and greed, and greed won out for a while. That’s why I think to fix this over the longer run, you have to fix the mortgage brokerage business and the origination business.”