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Focus on: Guaranteed Securities

Freddie Mac Guaranteed Maturity Securities (GMS) are structured mortgage-backed securities with a shortened stated final maturity. Freddie Mac GMS are backed by either Gold PCs or Hybrid ARMs and have been issued with final dates of five to fifteen years. Shorter or longer finals are also possible.

The GMS feature is available on a variety of types including PAC, TAC, Scheduled, Support and Sequential tranches. At the guaranteed final date, the investor is paid any outstanding principal on the bond, plus 30 days of accrued interest.

These securities offer the investor high credit quality, a competitive yield, and limited extension risk. Additionally, GMS appeal to investors with maturity restrictions that preclude them from buying mortgage-backed securities or CMOs, which typically have 30-year stated maturity dates

Investor Benefits

Extension Protection: With shorter stated final maturities than many other mortgage securities, GMS offer investors protection to mitigate extension risk.

Enhanced Yields: Investors of GMS receive the benefits of higher yielding mortgage-backed securities.

Superior Credit Quality: GMS carry the Freddie Mac guarantee of scheduled payment of principal and timely interest.

Stated Final: GMS allow investors with maturity constraints to buy mortgage-backed securities.

Sound Alternative: GMS are an excellent alternative to 15-year mortgage-backed securities and comparable mortgage-backed CMOs, agency debt, balloon mortgages or corporate bonds. Examples of GMS: Described as MR Classes (Mandatory Redemption) Example #1: Series 2301-G (Sequential) To view on Bloomberg, type: FHR 2301 G and

PSA 05075100 125 150 300 500

Weighted Average Life at Pricing Guaranteed Final Maturity 10.38 8.43 7.58 6.81 6.10 5.47 3.09 1.94 Non-Guaranteed Final Maturity 14.14 9.70 8.24 7.11 6.21 5.48 3.09 1.94

Payment Window Guaranteed Final Maturity 5/01-12/12 5/01-12/12 5/01-12/12 5/01-12/12 5/01-12/12 5/01-12/12 5/01-10/08 5/01-11/05 Non-Guaranteed Final Maturity 5/01-3/22 5/01-10/18 5/01-4/17 5/01-11/15 5/01-9/14 5/01-8/13 5/01-10/08 5/01-11/05

Example #2: Series 2320-FE (Support) To view on Bloomberg, type: FHR 2320 FE and

PSA 05075100 125 150 300 500

Weighted Average Life at Pricing Guaranteed Final Maturity 14.96 14.96 14.61 13.75 12.63 11.49 5.61 1.55 Non-Guaranteed Final Maturity 21.65 17.44 15.59 14.00 12.64 11.49 5.61 1.55

Payment Window Guaranteed Final Maturity 5/16-5/16 5/16-5/16 7/14-5/16 11/12-5/16 8/11-5/16 7/10-6/15 6/01-10/10 6/01-4/04 Non-Guaranteed Final Maturity 4/21-9/24 6/16-2/21 7/14-6/19 11/12-12/17 8/11-8/16 7/10-6/15 6/01-10/10 6/01-4/04

To execute a GMS

Contact Structured Finance Marketing at (866) 903-2767 or contact one of our REMIC dealers including:

Bank of America Securities LLC Merrill Lynch & Co. Bear, Stearns & Co. Inc. Nomura Securities CS First Boston Corporation Salomon Smith Barney Goldman, Sachs & Co. Securities Sales & Trading Group Greenwich Capital Markets, Inc. UBS Warburg LLC J.P. Morgan Chase & Co. Lehman Brothers

For additional information about guaranteed maturity securities, contact Structured www.freddiemac.com/mbs Finance Marketing at (866) 903-2767.

This fact sheet is not an offer to sell any Freddie Mac securities. Offers for any given are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac’s information statement and related supplements. © 2001 by Freddie Mac. Information from this document may be used with proper attribution. Alteration of this document is strictly prohibited.

Publication 443