Business: Freddie Mac (Federal Home Loan Mortgage Corp.), Variable Rate, Non-Cumulative Preferred Stock, liquidation preference $50 per share, redeemable at the issuer's option on 6/30/2003 and on 6/30 every two years thereafter at $50 per share plus declared and unpaid dividends, and with no stated maturity. Noncumulative distributions of $2.24 (4.48%) per annum are paid quarterly on 3/31, 6/30, 9/30 & 12/31 to holders of record as set by the Board which will be 10 to 45 days prior to the payment date (NOTE: the ex-dividend date is one business day prior to the record date). The initial dividend rate is 4.48% through 6/30/2003. The rate will be reset on 7/01/2003 and on 7/1 every two years thereafter based on the 2-year CMT Rate plus 0.20%. Dividends paid by this preferred security are eligible for the preferential income tax rate of 15% to a maximum of 20% depending on the holder's tax bracket (and under IRS specified holding restrictions) and are also eligible for the dividends received deduction for corporate holders. The security has DRD Protection through 11/20/2002. The security was rated AA- by S&P and aa3 by Moody's at the IPO. In regards to payment of dividends and upon liquidation, the preferred shares rank equally with other preferreds and senior to the common shares of the company. See the IPO prospectus for further information on the preferred stock by clicking on the ‘Link to IPO Prospectus’ provided below.