Freddie Mac 2008 Annual Report Download - page 17

The multifamily property market is affected by the relative affordability of single-family home prices, construction
cycles, and general economic factors, such as employment rates, all of which influence the supply and demand for
apartments and pricing for rentals. Our multifamily loan purchases are largely through established institutional channels
where we are generally providing post-construction financing to large apartment project operators with established track
records. Property location and rental cash flows provide support to capitalization values on multifamily properties, on which
investors base lending decisions.
Our Multifamily segment also includes certain equity investments in various limited partnerships that sponsor low-and
moderate-income multifamily rental apartments, which benefit from low-income housing tax credits, or LIHTC. These
activities support our mission to supply financing for affordable rental housing. We also guarantee the payment of principal
and interest on multifamily mortgage loans and securities that are originated and held by state and municipal housing finance
agencies to support tax-exempt and taxable multifamily housing revenue bonds. By engaging in these activities, we provide
liquidity to this sector of the mortgage market.
Our Competition
Historically, our principal competitors have been Fannie Mae, the FHLBs, Ginnie Mae and other financial institutions
that retain or securitize mortgages, such as commercial and investment banks, dealers, thrift institutions, and insurance
companies. During 2008, almost all of our competitors, other than Fannie Mae, the FHLBs and Ginnie Mae, have ceased
their activities in the residential mortgage finance business. We compete on the basis of price, products, structure and service.
Ginnie Mae, which has become a more significant competitor during 2008, guarantees the timely payment of principal and
interest on mortgage-related securities backed by federally insured or guaranteed loans, primarily those insured by FHA or
guaranteed by VA. Ginnie Mae’s growth has been primarily due to competitive pricing of Ginnie Mae securities, which are
backed by the full faith and credit of the U.S., the increase in the FHA loan limit and the availability, through FHA, of a
mortgage product for borrowers seeking greater than 80% financing who could not otherwise qualify under the tighter
lending standards now prevailing for conventional mortgages.
Employees
At March 2, 2009, we had 4,927 full-time and 85 part-time employees. Our principal offices are located in McLean,
Virginia.
Available Information
SEC Reports
Our financial disclosure documents are available free of charge on our website at www.freddiemac.com. (We do not
intend this internet address to be an active link and are not using references to this internet address here or elsewhere in this
annual report on Form 10-K to incorporate additional information into this annual report on Form 10-K.) We file reports,
proxy statements and other information with the SEC. We make available free of charge through our website our annual
reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all other SEC reports and
amendments to those reports as soon as reasonably practicable after we electronically file the material with, or furnish it to,
the SEC. In addition, our Forms 10-K, 10-Q and 8-K, and other information filed with the SEC, are available for review and
copying free of charge at the SEC’s Public Reference Room at 100 F Street, N.E., Room 1580, Washington, D.C. 20549.
The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.
The SEC also maintains an Internet site (www.sec.gov) that contains reports, proxy and information statements, and other
information regarding companies that file electronically with the SEC. Our corporate governance guidelines, codes of
conduct for employees and members of the Board of Directors (and any amendments or waivers that would be required to be
disclosed) and the charters of the Audit, Business and Risk, Compensation and Nominating and Governance committees of
the Board of Directors are also available on our website at www.freddiemac.com. Printed copies of these documents may be
obtained upon request from our Investor Relations department.
During the conservatorship, we do not expect to prepare or provide proxy statements for the solicitation of proxies from
stockholders. Accordingly, rather than incorporating information that is required by Form 10-K by reference to such a proxy
statement, we will provide such information by filing an amendment to our Form 10-K on or before April 30, 2009.
Information about Certain Securities Issuances by Freddie Mac
Pursuant to SEC regulations, public companies are required to disclose certain information when they incur a material
direct financial obligation or become directly or contingently liable for a material obligation under an off-balance sheet
arrangement. The disclosure must be made in a current report on Form 8-K under Item 2.03 or, if the obligation is incurred
in connection with certain types of securities offerings, in prospectuses for that offering that are filed with the SEC.
Freddie Mac’s securities offerings are exempted from SEC registration requirements. As a result, we are not required to
and do not file registration statements or prospectuses with the SEC with respect to our securities offerings. To comply with
the disclosure requirements of Form 8-K relating to the incurrence of material financial obligations, we report our incurrence
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