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Reference Notes® Securities Auction

Reference Notes® securities are sold through an auction process. Bids are submitted via the Internet from a group of participating dealers.

Overview

Auction Type Closed Bid Dutch Auction (uniform price).
Auction Dates To be announced - see Reference Notes® calendar.
Bid Types accepted Competitive (from Dealers and Investors).
Non-Competitive (from Investors Only).
Minimum Bid Size Competitive: $10mm
Non-Competitive: $1mm
Bid Increment Competitive: $1mm
Non-Competitive: $10,000
Maximum Bid Size Competitive Investor: Not to exceed 100% of auction.
Competitive Dealer: Not to exceed 50% of the auction.
Non-Competitive: Not to exceed 20% of the auction size.
Non-Competitive Pool 20% of the total auction size.
Maximum Award Competitive Investor: Not to exceed 100% of auction.
Competitive Dealer: Not to exceed 50% of the auction size, less non-comp bid awards and NLP (excludes investor orders).
Non-Competitive: 20% of the announced auction size.
Allocation of Awards

Competitive: If the total amount of the bids at the stop rate exceeds the amount of the issue left to be allocated, the awards at that bid yield are pro-rated.

Non-Competitive: If the total amount of the Non-Competitive bids exceeds the Non-Competitive pool size, then Non-Competitive awards will be pro-rated.

Bids entered Yield, expressed to the 3rd decimal place.
Dealer Net Long Position If a dealer has a net long position prior to the auction close, the bidder must indicate the amount in the NLP field. Otherwise, the NLP field may be left blank.
Maturities As specified.
Dealer Group Status Dealer Group members must be authorized and identified by Freddie Mac.
All Non-Dealer Group participants All non Dealer Group participants (1) must notify Freddie Mac in advance of the Reference Notes® securities auctions through Freddie Mac's website, and (2) indicate the Dealer Group member(s) through which they wish to submit bids. Any party interested in participating in Freddie Mac's auction must notify Freddie Mac no later than two (2) business days prior to the auction. This notification does not need to occur again unless additions or deletions to the list are desired.
Separate Bidding Identifiers Affiliates of dealers and investors may request to be recognized as a separate bidding entity.
Bidding through Investment Advisors Freddie Mac recognizes Investment Advisors with investment discretion over multiple accounts as one bidder.
Electronic Participation Open internet through secure site with user ID and password access.
Confirmation Awarded Reference Notes® securities will be confirmed on the auction system.
Day Count Convention 30/360. All trades will be settled on a pre-specified date.
Announcement of Results After conclusion of the auction, Dealer Group members who have been awarded Reference Notes® securities will receive award notification through the auction system. In addition, Freddie Mac will release the general auction results on its website and through a press release that will include: amount of bids recognized and accepted, uniform single award yield (stop rate), price and coupon, pro-rata percentage of competitive and non-competitive awards, total non-competitive award, bid to cover ratio and other information Freddie Mac may decide to include.
Disclaimers

The Reference Notes® securities are obligations of Freddie Mac only. The Reference Notes securities, including any interest or return discount on the Reference Notes® securities, are not guaranteed by, and are not debts or obligations of, the United States or any agency or instrumentality of the United States other than Freddie Mac.


This announcement is neither an offer to sell nor a solicitation of offers to buy any of these securities. Any such offering will be made only by an offering circular and pricing supplement.