Freddie Mac 2004 Annual Report Download - page 26

PROPERTIES
We own a 75 percent interest in a limited partnership that owns our principal oÇces, consisting of four
oÇce buildings in McLean, Virginia that comprise approximately 1.2 million square feet. We occupy the
headquarters complex under a long-term lease from the partnership. We also lease other oÇce space in
McLean, Virginia; Washington, D.C.; Reston, Virginia; Atlanta, Georgia; Chicago, Illinois; Dallas, Texas;
New York, New York; and Woodland Hills, California.
LEGAL PROCEEDINGS
We are involved as a party to a variety of legal proceedings arising from time to time in the ordinary
course of business including, among other things, contractual disputes, personal injury claims, employment-
related litigation and other legal proceedings incidental to our business.
Furthermore, we are frequently involved, directly or indirectly, in litigation involving mortgage foreclo-
sures. We also are involved in proceedings arising from our termination of a seller/servicer's eligibility to sell
mortgages to, and service mortgages for, us. In these cases, the former seller/servicer sometimes seeks
damages against us for wrongful termination under a variety of legal theories. In addition, we are sometimes
sued in connection with the origination or servicing of mortgages. These suits generally involve claims alleging
wrongful actions of seller/servicers. Our contracts with our seller/servicers generally provide for them to
indemnify us against liability arising from their wrongful actions.
We are also subject to various legal proceedings, including regulatory investigations and administrative
and civil litigation, arising from the restatement. These proceedings include class action and stockholder
derivative lawsuits, administrative enforcement proceedings commenced by OFHEO, and investigations by
the SEC, Department of Labor, the U.S. Attorney's oÇce and the FEC. Recently, we have been named in
multiple lawsuits alleging violations of federal and state antitrust laws and state consumer protection laws in
connection with the setting of our guarantee fees.
Litigation and claims resolution are subject to many uncertainties and are not susceptible to accurate
prediction. For additional information on these proceedings, see ""NOTE 13: LEGAL CONTINGENCIES''
and ""NOTE 14: INCOME TAXES'' to the consolidated Ñnancial statements.
Freddie Mac
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