Processed and formatted by SEC Watch - Visit SECWatch.

com

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 18, 2009

FEDERAL HOME LOAN MORTGAGE CORPORATION

(Exact name of registrant as specified in its charter)
Freddie Mac

Federally chartered 000-53330 52-0904874

corporation
(State or other jurisdiction of (Commission (IRS Employer
incorporation) File Number) Identification No.)

8200 Jones Branch Drive 22102

McLean, Virginia
(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (703) 903-2000

Not applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 Processed and formatted by SEC Watch - Visit SECWatch.com

Item 8.01. Other Events

On September 7, 2008, Freddie Mac (formally known as the Federal Home Loan Mortgage Corporation), through the Federal
Housing Finance Agency (FHFA), in its capacity as Conservator of Freddie Mac, entered into a Senior Preferred Stock
Purchase Agreement (Purchase Agreement) with the U.S. Department of the Treasury (Treasury). Under the Purchase
Agreement, Treasury provided us with its commitment to provide up to $100 billion in funding under specified conditions.
The Purchase Agreement was subsequently amended and restated on September 26, 2008. A copy of the Purchase
Agreement, as amended and restated on September 26, 2008, was attached as Exhibit 10.1 to our report on Form 8-K filed on
September 30, 2008.
On February 18, 2009, Secretary of the Treasury Geithner issued a statement regarding Treasury’s commitment to Freddie
Mac and the Federal National Mortgage Association (Fannie Mae). The statement indicated that Treasury is amending the
Purchase Agreement to increase Treasury’s funding commitment to us to up to $200 billion, increase the size of our retained
mortgage portfolio allowed under the Purchase Agreement by $50 billion to $900 billion and correspondingly increase our
allowable debt outstanding. The statement also said that Treasury will continue to purchase Fannie Mae and Freddie Mac
mortgage-backed securities to promote stability and liquidity in the marketplace.
Secretary Geithner stated that “Fannie Mae and Freddie Mac are critical to the functioning of the housing finance system in
this country and play a key role in making mortgage rates affordable and maintaining the stability and liquidity of our
mortgage market” and that “[t]he increased funding will provide forward-looking confidence in the mortgage market and
enable Fannie Mae and Freddie Mac to carry out ambitious efforts to ensure mortgage affordability for responsible
homeowners.”
A copy of the statement by Secretary Geithner is attached as Exhibit 99.1 to this report and is incorporated herein by
reference.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits
The following exhibit is being filed as part of this Report on Form 8-K:

Exhibit Number Description of Exhibit

99.1 Statement by Secretary Tim Geithner on Strengthening Treasury’s Commitment to Fannie Mae and
Freddie Mac dated February 18, 2009
 Processed and formatted by SEC Watch - Visit SECWatch.com

SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.

FEDERAL HOME LOAN MORTGAGE CORPORATION

By: /s/ John R. Dye

John R. Dye
SVP — Principal Deputy General Counsel,
Corporate Affairs

Date: February 24, 2009

 Processed and formatted by SEC Watch - Visit SECWatch.com

EXHIBIT INDEX

Exhibit Number Description of Exhibit

99.1 Statement by Secretary Tim Geithner on Strengthening Treasury’s Commitment to Fannie Mae and
Freddie Mac dated February 18, 2009

Exhibit 99.1
February 18, 2009
tg32
Statement by Secretary Tim Geithner on Treasury’s Commitment to Fannie Mae and
Freddie Mac
Washington, DC — Today, the Treasury Department is increasing its funding commitment to Fannie Mae and Freddie Mac
to ensure the strength and security of the mortgage market, to help maintain mortgage affordability, and to help keep
interest rates low.
Fannie Mae and Freddie Mac are critical to the functioning of the housing finance system in this country and play a key
role in making mortgage rates affordable and maintaining the stability and liquidity of our mortgage market. In 2008, almost
three-quarters of new home loans were financed or guaranteed by Fannie Mae and Freddie Mac.
Using funds already authorized by Congress for this purpose, Treasury is amending the Preferred Stock Purchase
Agreements, contractual agreements between the Treasury and the conserved entities designed to ensure that each
company maintains a positive net worth, to $200 billion each from their original level of $100 billion each. The increased
funding will provide forward-looking confidence in the mortgage market and enable Fannie Mae and Freddie Mac to carry
out ambitious efforts to ensure mortgage affordability for responsible homeowners.
In addition, the Treasury Department will continue to purchase Fannie Mae and Freddie Mac mortgage-backed securities to
promote stability and liquidity in the marketplace. Treasury will also increase the size of the GSEs’ retained mortgage
portfolios allowed under the agreements — by $50 billion to $900 billion — along with corresponding increases in the
allowable debt outstanding.
The increase announced today is not intended to indicate any estimate of possible losses with respect to the companies,
but to provide assurance to market participants that Congress gave these companies a special purpose to support housing
finance. Given the difficulties in the housing market today, we stand firmly behind their ability to provide that support.

Background:
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs) that were created to provide stability in the
secondary mortgage market and promote access to mortgage credit throughout the United States. In 2008, Fannie Mae and
Freddie Mac purchased or guaranteed almost three-quarters of all mortgages being originated in the United States. By
purchasing some mortgages and guaranteeing others, Fannie Mae and Freddie Mac help bring the liquidity of global capital
markets to local banks and other financial institutions, which lowers mortgage costs for borrowers in communities across
the United States. These savings can be achieved because Fannie Mae and Freddie Mac are able to access a broader array
of investors resulting in lower cost of funds than typical local banks.
Last July, Congress granted Treasury new authorities to provide financial support to Fannie Mae and Freddie Mac in order
to provide stability to financial markets, support the availability of mortgage finance, and protect taxpayers.
Even though neither institution is near its current $100 billion limit for funding from Treasury under the Preferred Stock
Purchase Agreements — based on preliminary disclosures from the last quarter of 2008, total funding provided to Freddie
Mac could approach $50 billion and total funding for Fannie Mae could approach $16 billion — it is crucial to maintain
confidence in both of these institutions even under worse-than-expected economic conditions.
Finally, it is important to note that these funding commitments are made under authority provided by the Housing and
Economic Recovery Act and do not use any money allocated under the Emergency Economic Stabilization Act (EESA) or
the Financial Stability Plan.

###