PRICING SUPPLEMENT dated March 14, 2001(to the OÅering Circular dated January 5, 2001)

$2,000,000,000 VFreddie Mac

GLOBAL DEBT FACILITY5.875% Subordinated Debt Securities due March 21, 2011

Freddie SUBSSM*

This Pricing Supplement relates to the oÅer of $2,000,000,000 of 5.875% Subordinated Debt Securities dueMarch 21, 2011 of Freddie Mac. You should read it together with our Global Debt Facility OÅering Circulardated January 5, 2001 (the ""OÅering Circular''). In this Pricing Supplement, the term Freddie SUBS refers toall Subordinated Debt Securities issued under the Freddie SUBS program generally, and the term 5.875%Freddie SUBS refers to the speciÑc securities oÅered in this Pricing Supplement. Other capitalized terms usedin this Pricing Supplement and not deÑned have the meanings given to them in the OÅering Circular.

Freddie SUBS are unsecured subordinated debt obligations of Freddie Mac, ranking junior in right ofpayment to all of Freddie Mac's existing and future Senior Obligations, as speciÑed in this Pricing Supplement.In certain cases, we will defer the payment of interest on Freddie SUBS for periods not to exceed Ñve years.See ""Description of the Securities Ì Subordination'' and ""Ì Interest.''

Freddie SUBS are being oÅered globally for sale in the United States, Europe, Asia and elsewhere where itis lawful to make such oÅers. We have applied to list the 5.875% Freddie SUBS on the Luxembourg StockExchange. The 5.875% Freddie SUBS will be issued in book-entry form on the book-entry system of the U.S.Federal Reserve Banks on March 21, 2001.

Freddie SUBS are not suitable investments for all investors. In particular, no investor should purchaseFreddie SUBS unless the investor understands and is able to bear the interest deferral, subordination, yield,market and liquidity risks associated with these securities. See ""Risk FactorsÌThe Debt Securities MayNot Be Suitable For You'' in the OÅering Circular, and ""Risk Factors'' and ""Description of the Securities'' inthis Pricing Supplement.

Freddie SUBS are obligations of Freddie Mac only. Freddie SUBS, including any interest or return ofdiscount on Freddie SUBS, are not guaranteed by, and are not debts or obligations of, the United States orany agency or instrumentality of the United States other than Freddie Mac. Freddie SUBS are not tax-exempt. Non-U.S. owners generally will be subject to United States federal income and withholding taxunless they establish an exemption. Because of applicable U.S. securities law exemptions, we have notregistered Freddie SUBS with any U.S. federal or state securities commission. No U.S. securities commis-sion has reviewed the OÅering Circular or this Pricing Supplement.

Initial Public Proceeds toOÅering Price(1) Underwriting Discount Freddie Mac(1)(2)

Per Security ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 99.389% 0.35% 99.039%Total ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,987,780,000 $7,000,000 $1,980,780,000

(1) Plus accrued interest, if any, from March 21, 2001.(2) Before deducting estimated expenses of $250,000.

Joint Lead Managers

Goldman, Sachs & Co. Merrill Lynch & Co.Co-Managers

Salomon Smith BarneyBlaylock & Partners, L.P. Credit Suisse First BostonFirst Tennessee Bank N.A. JPMorganMorgan Stanley Dean Witter Bear, Stearns & Co. Inc.

* ""Freddie SUBS'' is a service mark of Freddie Mac.

ADDITIONAL INFORMATION

We prepare an annual Information Statement that describes our business and operations andcontains our audited consolidated Ñnancial statements (""Information Statement''). We also preparequarterly Information Statement Supplements that include unaudited consolidated Ñnancial data andother information concerning our business and operations (""Information StatementSupplements'').

You should read this Pricing Supplement together with our OÅering Circular, our InformationStatement dated March 31, 2000, and our Information Statement Supplements dated May 15, 2000,August 14, 2000, November 14, 2000 and January 31, 2001. We have attached our OÅering Circularand the January 31, 2001 Information Statement Supplement.

This Pricing Supplement incorporates by reference the Information Statement and the Informa-tion Statement Supplements that are not attached. This means that we are disclosing information toyou by referring to these documents rather than by providing you with separate copies of them orreprinting the information in this Pricing Supplement. These documents are considered part of thisPricing Supplement. You can obtain copies of any of these documents by contacting us at:

Freddie MacDebt Securities Marketing OÇce

8200 Jones Branch DriveMcLean, Virginia U.S.A. 22102-3110

Telephone: 1-800-336-FMPC(within Washington, DC metropolitan area: 703-903-3700)

E-Mail: debt securities@freddiemac.com.www.freddiemac.com

Our OÅering Circular, Information Statement and Information Statement Supplements also areavailable on our Internet Web-Site (www.freddiemac.com).

CONTENTS

Page

SummaryÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-3Risk FactorsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-6RatingÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-7Listing ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-7Capitalization ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-8Regulatory Capital Requirements ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-8Description of the Securities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-9Certain United States Federal Tax Consequences ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-11Plan of DistributionÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-12OÅering Circular ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Appendix AInformation Statement Supplement dated January 31, 2001ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Appendix B

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SUMMARY

This summary contains selected information about Freddie SUBS and the 5.875% Freddie SUBS.It does not contain all of the information you should consider before investing. You also should readthe more detailed information contained elsewhere in this Pricing Supplement and the OÅeringCircular and in the documents incorporated by reference.

IssuerÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Federal Home Loan Mortgage Corporation (""Freddie Mac''), ashareholder-owned government-sponsored enterprise.

Securities OÅeredÏÏÏÏÏÏÏÏÏÏÏÏ $2,000,000,000 of 5.875% Subordinated Debt Securities dueMarch 21, 2011 (""5.875% Freddie SUBS'')

Form ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Freddie SUBS are U.S. dollar denominated Debt Securities is-sued, maintained and transferred through the Fed Book EntrySystem.

DenominationsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Freddie SUBS will be issued in minimum denominations of $1,000,and additional increments of $1,000.

Ratings ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ The 5.875% Freddie SUBS have been rated ""Aa2'' by Moody'sInvestors Service, Inc. (""Moody's'') and ""AA-'' by Standard &Poor's Credit Markets Services, a division of The McGraw-HillCompanies, Inc. (""Standard & Poor's'').

Issue Date ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ March 21, 2001

Maturity Date ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ March 21, 2011

Payment of Principal ÏÏÏÏÏÏÏÏÏ We will repay 100% of the principal amount of Freddie SUBS atmaturity.

No Redemption ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Freddie SUBS are not redeemable by us prior to maturity.

Payment of Interest ÏÏÏÏÏÏÏÏÏÏ We will pay interest on the 5.875% Freddie SUBS, semi-annuallyin arrears each March 21 and September 21 (the ""Interest Pay-ment Dates''), commencing September 21, 2001, at the rate of5.875% per annum, calculated on the basis of a 360-day yearconsisting of twelve 30-day months.

Subordination ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Freddie SUBS are unsecured subordinated debt obligations ofFreddie Mac issued under Section 306(a) of the Federal HomeLoan Mortgage Corporation Act (the ""Freddie Mac Act''). FreddieSUBS rank junior in right of payment to all of Freddie Mac'sexisting and future Senior Obligations. Senior Obligations includeall of Freddie Mac's debt obligations, liabilities in respect ofFreddie Mac's guarantees of mortgage-related securities, FreddieMac's outstanding 8.25% Subordinated Capital Debentures due2016 and Zero Coupon Subordinated Capital Debentures due2019, and all other obligations except obligations that by theirterms expressly rank equally with or junior to Freddie SUBS. AtDecember 31, 2000, we had $444,460 million of outstanding totalliabilities and $822,310 million of total guaranteed mortgage-related securities (including $246,209 million held in our retainedportfolio), all of which would have constituted Senior Obligationsas of that date. We may also issue and sell additional obligationsthat will rank senior in right of payment to Freddie SUBS andadditional Freddie SUBS that will rank equally with the 5.875%Freddie SUBS. See ""Description of the Securities ÌSubordination.''

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Deferral of InterestÏÏÏÏÏÏÏÏÏÏÏ We will defer payment of interest on all outstanding Freddie SUBSif, as of the Ñfth Business Day prior to any Interest Payment Dateon any Freddie SUBS (each, a ""Deferral Determination Date''):

‚ Our ""core capital'' is below 125% of our ""critical capital''requirement, or

‚ (1) Our ""core capital'' is below our ""minimum capital'' require-ment and (2) the U.S. Secretary of the Treasury, acting on ourrequest, exercises discretionary authority pursuant to Sec-tion 306(c) of the Freddie Mac Act to purchase our debtobligations.

See ""Description of the Securities Ì Interest.''

Capital Levels ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ We will use the core, critical and minimum capital levels, as mostrecently veriÑed by the OÇce of Federal Housing EnterpriseOversight (""OFHEO''), pursuant to its then current methodologyfor calculating those levels, prior to any such Deferral Determina-tion Date to determine whether we must defer interest on alloutstanding Freddie SUBS. If legislation is enacted that revisesthe deÑnition of core, critical or minimum capital, or if OFHEOceases to announce any of these capital levels, we will calculateany revised or no longer announced capital levels in accordancewith the most recent statutory deÑnition and OFHEO methodologyand requirements. An independent third party will verify any capi-tal levels we are required to calculate. Upon such third partyveriÑcation, we will publicly announce the results. See ""Regula-tory Capital Requirements.''

Limit on Deferral ÏÏÏÏÏÏÏÏÏÏÏÏÏ We may not defer interest on any Freddie SUBS for more than Ñveconsecutive years nor beyond their Maturity Date.

Accrual of Interest onDeferred Amounts ÏÏÏÏÏÏÏÏÏ If we defer the payment of interest on Freddie SUBS, interest will

continue to accrue and compound at the stated interest rates ofsuch Freddie SUBS.

Resumption of InterestPayments ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ We will pay all deferred interest, and interest thereon, on all

Freddie SUBS as soon as, after giving eÅect to such payments,we no longer would be required to defer interest under the termsdescribed above, and have repaid all obligations, if any, pur-chased by the U.S. Secretary of the Treasury as described above.We will make this payment in respect of all Freddie SUBS on thenext scheduled Interest Payment Date of any issue of FreddieSUBS, unless we elect to make the payment earlier.

If we have not resumed interest payments on an issue of FreddieSUBS by its Maturity Date or have deferred interest on an issue ofFreddie SUBS for Ñve consecutive years, then we must paydeferred interest, and interest thereon, on that issue of FreddieSUBS regardless of our core capital level or our repayment ofobligations purchased by the U.S. Secretary of the Treasury. Evenif we are required to make any payment on Freddie SUBS,because Freddie SUBS are subordinated, Holders of FreddieSUBS will be entitled to receive payments only after we havemade payment in full of all amounts then due to holders of Senior

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Obligations. In no event will Holders of Freddie SUBS be able toaccelerate the maturity of their Freddie SUBS, but will have claimsonly for amounts then due and payable on their Freddie SUBS.After we have fully paid all deferred interest on any issue ofFreddie SUBS, future interest payments on that issue of FreddieSUBS will be subject to further deferral as described above.

No Dividends DuringDeferral Periods ÏÏÏÏÏÏÏÏÏÏÏ During periods when we defer the payment of interest on Freddie

SUBS, we may not declare or pay dividends on, or redeem,purchase or acquire, our common stock or preferred stock.

Notices ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ We will give prompt notice of any event that would require deferralof the payment of interest on Freddie SUBS. We will also givenotice of the resumption of the payment of interest on FreddieSUBS.

No AccelerationÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Freddie SUBS do not permit Holders to accelerate the maturity ofthe securities upon default or the occurrence of any other event.

Tax Status ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Freddie SUBS and income derived from Freddie SUBS generallyare subject to taxation by the United States and generally are notexempt from taxation by other U.S. or non-U.S. taxing jurisdic-tions. Unless they establish an exemption by Ñling a form W-8BENor otherwise, Non-U.S. Owners generally will be subject to U.S.income and withholding tax. See ""Certain United States FederalTax Consequences'' in this Pricing Supplement and in the OÅeringCircular.

IdentiÑcation NumbersÏÏÏÏÏÏÏÏ CUSIP: 3134A4EW0ISIN: US3134A4EW03Common Code: 12647107

Listing Application ÏÏÏÏÏÏÏÏÏÏÏ We have applied to list the 5.875% Freddie SUBS on the Luxem-bourg Stock Exchange.

Ineligibility for StrippingÏÏÏÏÏÏÏ Freddie SUBS are not eligible to be separated or ""stripped'' intoseparate interest and principal components.

Eligibility for Reopening ÏÏÏÏÏÏ We may ""reopen'' (issue additional Freddie SUBS as part of)outstanding issues of Freddie SUBS.

Governing Law ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Freddie SUBS will be governed by the federal laws of the UnitedStates. The local laws of the State of New York will be deemed toreÖect the federal laws of the United States, unless there isapplicable precedent under federal law or the application of NewYork law would frustrate the purposes of the Freddie Mac Act orthe Global Facility Agreement.

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RISK FACTORS

Prospective purchasers of Freddie SUBS should consider carefully the risk factors set forthbelow, and in the OÅering Circular, as well as all other information contained or incorporated byreference in this Pricing Supplement and the OÅering Circular, in evaluating an investment in FreddieSUBS.

Freddie SUBS are Subordinated to Senior Obligations

Freddie SUBS are unsecured subordinated debt obligations of Freddie Mac issued underSection 306(a) of the Freddie Mac Act. Freddie SUBS rank junior in right of payment to all ofFreddie Mac's existing and future Senior Obligations. This means that we cannot make anypayments of principal or interest on Freddie SUBS while we are in default on any payment due inrespect of Senior Obligations. In the event of a liquidation or dissolution of Freddie Mac, our assetswould be available to pay obligations under Freddie SUBS only after all payments had been made ofamounts due on Senior Obligations.

Senior Obligations include Freddie Mac's debt obligations, liabilities in respect of Freddie Mac'sguarantees of mortgage-related securities, Freddie Mac's outstanding 8.25% Subordinated CapitalDebentures due 2016 and Zero Coupon Subordinated Capital Debentures due 2019, and all otherobligations except obligations that by their terms expressly rank equally with or junior to FreddieSUBS.

At December 31, 2000, we had outstanding total liabilities of $444,460 million, all of which wouldhave constituted Senior Obligations as of that date. Senior Obligations also include any liabilitiesrelated to $822,310 million of Freddie Mac's guaranteed mortgage-related securities (including$246,209 million held in our retained portfolio) as of that date on which Freddie Mac guaranteespayment of principal and interest. Over time, as the result of portfolio growth, asset and liabilitymanagement and other factors, we may issue substantial amounts of additional Senior Obligationsand may sell guaranteed mortgage-related securities currently held in our retained portfolio. We alsoexpect to issue additional Freddie SUBS that will rank equally with the 5.875% Freddie SUBS. See""Description of the Securities Ì The Freddie SUBS Program'' and ""Ì Reopenings.''

Interest Payments May be Deferred

If (1) our core capital is below 125% of our critical capital requirement, or (2)(a) our corecapital is below our minimum capital requirement and (b) the U.S. Secretary of the Treasury, actingon our request, exercises discretionary authority under Section 306(c) of the Freddie Mac Act topurchase our debt obligations, then we must defer the payment of interest on Freddie SUBS oÅeredin this Pricing Supplement and on other outstanding Freddie SUBS for periods not to exceed Ñveyears.

We will pay all deferred interest, and interest on that deferred interest, on all Freddie SUBS assoon as, after giving eÅect to all such payments, we no longer would be required to defer interest,and we have repaid all debt obligations, if any, purchased by the U.S. Secretary of the Treasury, asdescribed above. We will make this payment for all Freddie SUBS on the next scheduled InterestPayment Date that occurs for any issue of Freddie SUBS unless we elect to make the paymentearlier.

If we have not resumed interest payments on an issue of Freddie SUBS by its Maturity Date orhave deferred interest on an issue of Freddie SUBS for Ñve consecutive years, then we must paydeferred interest, and interest thereon, on that issue of Freddie SUBS regardless of our capitallevels or our repayment of debt obligations purchased by the U.S. Secretary of the Treasury. Even ifwe are required to make any payment on Freddie SUBS, because Freddie SUBS are subordinated,Holders of Freddie SUBS will be entitled to receive payments only after we have made payment infull of all amounts then due in respect of any Senior Obligations.

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Holders Have No Acceleration Rights

Holders of Freddie SUBS will not be able to accelerate the maturity of their Freddie SUBS.Holders will have claims only for amounts then due and payable on their Freddie SUBS. After wehave fully paid all deferred interest on Freddie SUBS, and if Freddie SUBS remain outstanding,future interest payments on Freddie SUBS will be subject to further deferral as described above.

Holders May Have Adverse Tax Consequences

In the event of deferral of interest payments, you generally will be required to accrue income, forUnited States federal income tax purposes, in respect of the accrued but unpaid interest on FreddieSUBS held by you, as described below under ""Certain United States Federal Tax Consequences.''As a result, you may recognize income for United States federal income tax purposes in advance ofthe receipt of payment. Additionally, you will not receive the payment of that interest if you disposeof your Freddie SUBS prior to the end of the day preceding the date for the payment of accruedinterest. Even though any income with respect to deferred interest will constitute ordinary income, ifyou sell your Freddie SUBS you generally will recognize a capital loss to the extent that the sellingprice (which may not reÖect the full amount of deferred interest) is less than your adjusted taxbasis. Subject to certain limited exceptions, capital losses cannot be applied to oÅset ordinaryincome for United States federal income tax purposes. See ""Certain United States Federal TaxConsequences'' in this Pricing Supplement and in the OÅering Circular.

There is No Existing Trading Market for Freddie SUBS

Freddie SUBS are a new issue of securities with no established trading market. We haveapplied to list the 5.875% Freddie SUBS on the Luxembourg Stock Exchange. An active market forFreddie SUBS may or may not develop or be sustained in the future. Although certain of the Dealershave indicated to us that they intend to make a market in Freddie SUBS, they are not obligated to doso and may discontinue any such market-making at any time without notice. Accordingly, we cannotassure you regarding the liquidity of, or trading markets for, Freddie SUBS.

Additionally, Freddie SUBS may trade at prices that do not fully reÖect the amount of accruedbut unpaid interest or deferred interest. Any deferral of interest payments will likely have an adverseeÅect on the market price of Freddie SUBS. In addition, as a result of the interest deferral provisionof Freddie SUBS, the market price of Freddie SUBS may be more volatile than the market prices ofother debt securities on which original issue discount or interest accrues that are not subject to suchdeferrals and may be more sensitive generally to adverse changes in Freddie Mac's Ñnancialcondition.

RATING

The 5.875% Freddie SUBS have been rated ""Aa2'' by Moody's and ""AA¿'' by Standard &Poor's.

A security rating is not a recommendation to buy, sell or hold securities and may be revised orwithdrawn at any time by the assigning rating organization.

LISTING

We have applied to list the 5.875% Freddie SUBS on the Luxembourg Stock Exchange.

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CAPITALIZATION

The Information Statement and Information Statement Supplements include capitalizationtables as of the end of the related annual and quarterly periods.

We engage in transactions aÅecting stockholders' equity from time to time and issue or retiredebentures, notes and other debt obligations on an ongoing basis. Accordingly, on any datesubsequent to our most recent Information Statement and Information Statement Supplements,stockholders' equity may diÅer, and the amount of debt obligations outstanding will diÅer, and maydiÅer substantially, from the Ñgures contained in the relevant capitalization table.

REGULATORY CAPITAL REQUIREMENTS

Under the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (the ""GSEAct''), we are required to maintain core capital at a level that meets or exceeds required critical andminimum capital standards.

""Core capital'' is the sum of:

‚ the stated value of our outstanding common stock,

‚ the stated value of our non-cumulative perpetual preferred stock,

‚ paid in capital, and

‚ retained earnings.

""Critical capital'' is the sum of:

‚ 1.25% of on-balance sheet assets,

‚ 0.25% of net outstanding mortgage-backed securities, and

‚ 0.25% of other oÅ-balance sheet obligations, except as adjusted by the Director ofOFHEO to reÖect the credit risk of such obligations relative to that of mortgage-relatedsecurities.

""Minimum capital'' is the sum of:

‚ 2.50% of on-balance sheet assets,

‚ 0.45% of net outstanding mortgage-backed securities, and

‚ 0.45% of other oÅ-balance sheet obligations, except as adjusted by the Director ofOFHEO to reÖect the credit risk of such obligations relative to that of mortgage-relatedsecurities (see 12 CFR Û 1750.4 for existing adjustments made by the Director ofOFHEO).

We provide core, critical and minimum capital information to OFHEO on a monthly basis, andOFHEO classiÑes our capital adequacy on a quarterly basis. OFHEO typically releases our quarterlyclassiÑcation, as well as our core capital level and required critical and minimum capital levels,approximately 90 days after each quarter end.

The following table shows Freddie Mac's minimum, critical and core capital as of the dates shown.Values for required minimum capital and core capital are the values OFHEO has released in connectionwith its quarterly capital classifications, except for year-end 2000 which is based on our submission toOFHEO. Values for required critical capital are based on the minimum capital values and on thecomponents of the calculation of minimum capital that OFHEO provided to us in connection with eachclassification, except for components related to year-end 2000 which are based on our submission toOFHEO, applying OFHEO's interim methodology, as follows: one-half of the portion of the minimum

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capital requirement associated with on-balance sheet assets, plus five-ninths of the portion of theminimum capital requirement associated with off-balance sheet obligations.

December 31,

2000 1999 1998 1997 1996

(Dollars in millions)

Core Capital ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $14,380 $12,692 $10,715 $7,376 $6,743Required Critical Capital ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 7,240 6,291 5,294 3,664 3,380Core Capital as a Percentage of Required Critical

Capital ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 199% 202% 202% 201% 199%Required Minimum Capital ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $14,178 $12,287 $10,333 $7,082 $6,517

OFHEO has released our critical capital level as of September 30, 2000, and has announced itsintention to publicly release our critical capital level along with our minimum and core capital levels inits quarterly capital classiÑcation announcements beginning with the classiÑcation for the fourthquarter of 2000. Pending adoption of a regulation, OFHEO plans to compute our critical capital levelon an interim basis, consistent with the GSE Act, as described above.

DESCRIPTION OF THE SECURITIES

The Freddie SUBS Program

We expect to issue Freddie SUBS at least semiannually in an amount such that, following athree-year phase-in period, the sum of our core capital, loan loss reserves and outstanding FreddieSUBS will equal or exceed the sum of four percent (4%) of on-balance sheet assets and 0.45percent (0.45%) of oÅ-balance sheet mortgage-related securities.

Freddie SUBS will be issued as Fed Book-Entry Securities in book-entry form on the book-entrysystem of the U.S. Federal Reserve Banks. Freddie SUBS may be held indirectly through theclearing systems operated by Euroclear and Clearstream. Fed Book-Entry Securities will not beexchangeable for deÑnitive securities. Freddie SUBS are not eligible to be separated or ""stripped''into their separate interest components and principal components.

Freddie SUBS will be oÅered globally for sale in the United States, Europe, Asia and elsewherewhere it is lawful to make such oÅers.

Freddie SUBS may not be redeemed prior to maturity. Freddie SUBS will not contain anyprovisions permitting the Holders to accelerate the maturity thereof on the occurrence of any defaultor other event.

Interest

The 5.875% Freddie SUBS will be Fixed Rate Debt Securities and will accrue interest fromMarch 21, 2001 at a rate of 5.875% per annum. Interest will be calculated on the basis of a 360-dayyear consisting of twelve 30-day months. The Interest Payment Dates will be March 21 andSeptember 21 of each year, commencing September 21, 2001. The SpeciÑed Payment Currency forthe 5.875% Freddie SUBS will be U.S. dollars.

We will defer the payment of interest on all Freddie SUBS if, as of any Deferral DeterminationDate:

‚ our ""core capital'' is below 125% of our ""critical capital'' requirement, or

‚ (1) our ""core capital'' is below our ""minimum capital'' requirement and (2) the U.S.Secretary of the Treasury, acting on our request, exercises discretionary authority pursuantto Section 306(c) of the Freddie Mac Act to purchase our debt obligations.

See ""Regulatory Capital Requirements.''

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We will use the core, critical and minimum capital levels most recently announced by OFHEO,pursuant to its then current methodology for calculating those levels, prior to any such DeferralDetermination Date to determine whether we must defer interest on all outstanding Freddie SUBS.

If legislation is enacted that revises the deÑnition of core, critical or minimum capital, or ifOFHEO ceases to announce any of these capital levels, we will calculate any revised or no longerannounced capital levels in accordance with the most recent statutory deÑnitions and OFHEOmethodology and requirements. An independent third party will verify any capital levels that we arerequired to calculate. Upon such third party veriÑcation, we will publicly announce the results.

Based on our most recent OFHEO submission regarding our core capital and minimum capitallevels, and the critical capital methodology described above, at December 31, 2000, we had corecapital of $14,380 million or approximately 199% of our critical capital requirement of $7,240 millionand $202 million above our minimum capital requirement of $14,178 million as of that date.

We may not defer interest on Freddie SUBS for more than Ñve consecutive years or beyondtheir Maturity Date. If we defer the payment of interest on Freddie SUBS, interest will continue toaccrue on the 5.875% Freddie SUBS and will compound at a rate of 5.875% per annum.

We will pay all deferred interest, and interest on that deferred interest, on Freddie SUBS assoon as, after giving eÅect to such payments, we no longer would be required to defer interest underthe terms described above, and we have repaid all debt obligations, if any, purchased by theU.S. Secretary of the Treasury as described above. We will make this payment in respect of allFreddie SUBS on the next scheduled Interest Payment Date for any issue of Freddie SUBS, unlesswe elect to make the payment earlier.

If we have not resumed interest payments on an issue of Freddie SUBS by its Maturity Date orhave deferred interest on an issue of Freddie SUBS for Ñve consecutive years, then we must paydeferred interest, and interest thereon, on that issue of Freddie SUBS regardless of our core capitallevels or our repayment of all debt obligations purchased by the U.S. Secretary of the Treasury.Even if we are required to make any payment on Freddie SUBS, because Freddie SUBS aresubordinated, Holders of Freddie SUBS will be entitled to receive payments only after we have madepayment in full of all amounts then due in respect of Senior Obligations. In no event will Holders ofFreddie SUBS be able to accelerate the maturity of their Freddie SUBS. Holders will have claimsonly for amounts then due and payable on their Freddie SUBS. After we have fully paid all deferredinterest on Freddie SUBS, future interest payments on outstanding Freddie SUBS will be subject tofurther deferral as described above.

During periods when we defer the payment of interest on Freddie SUBS, we may not declare orpay dividends on, or redeem, purchase or acquire, our common stock or our preferred stock.

You should read ""Certain United States Federal Tax Consequences'' in this Pricing Supplementfor a discussion of selected United States federal income tax considerations in the event of adeferral of interest payments under Freddie SUBS.

Subordination

Freddie SUBS are unsecured subordinated debt obligations of Freddie Mac issued underSection 306(a) of the Freddie Mac Act. Freddie SUBS rank junior in priority of payment to our""Senior Obligations.'' ""Senior Obligations'' include all existing and future liabilities of Freddie Mac,other than liabilities that by their terms expressly rank equally with or junior to Freddie SUBS. SeniorObligations include all of Freddie Mac's debt obligations, liabilities in respect of Freddie Mac'sguarantees of mortgage-related securities, and Freddie Mac's 8.25% Subordinated Capital Deben-tures due 2016 and Zero Coupon Subordinated Capital Debentures due 2019.

In the event and during the continuation of any default in the payment of any amount due inrespect of Senior Obligations, unless and until the default has been cured or waived or has ceased

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to exist, we can pay no principal of or interest on Freddie SUBS unless we have made adequateprovision for the payment in full of all amounts then due in respect of all Senior Obligations.

Upon any distribution of assets of Freddie Mac resulting from any dissolution, winding up, totalor partial liquidation or reorganization (whether in bankruptcy, insolvency, reorganization orreceivership proceedings), or upon an assignment for the beneÑt of creditors or any othermarshalling of assets and liabilities of Freddie Mac, payments on Freddie SUBS will be subordinatedin right of payment to the prior payment of amounts then due in respect of Senior Obligations, butthe obligation of Freddie Mac to make payments on Freddie SUBS will not otherwise be aÅected.Because Freddie SUBS are subordinated in right of payment to Senior Obligations, in the event of adistribution of assets upon insolvency, holders of Senior Obligations may recover more ratably thanHolders of Freddie SUBS. Holders of Freddie SUBS will be subrogated to the rights of holders ofSenior Obligations subject to the payment in full of all Senior Obligations upon any distribution ofassets in any proceedings in respect of Freddie SUBS.

At December 31, 2000, we had outstanding total liabilities of $444,460 million, all of which wouldhave constituted Senior Obligations as of that date. Senior Obligations also include any liabilitiesrelated to $822,310 million of Freddie Mac's mortgage-related securities (including $246,209 millionheld in our retained portfolio) as of that date on which Freddie Mac guarantees payment of principaland interest. Over time, as the result of portfolio growth, asset and liability management and otherfactors, we may issue substantial amounts of additional Senior Obligations and may sell guaranteedmortgage-related securities currently held in our portfolio. We also expect to issue additionalFreddie SUBS that will rank equally with the 5.875% Freddie SUBS.

Reopenings

We may increase the size of this issue of the 5.875% Freddie SUBS from time to time withoutthe consent of any Holder by issuing additional Freddie SUBS with the same terms (other than thedate of issuance, interest commencement date and oÅering price, which may vary). We may reopenthis issue of the 5.875% Freddie SUBS one or more times to increase the size and liquidity of theissue when there is requisite investor demand and the reopening is consistent with our fundingneeds and overall market conditions. The evaluation of these criteria and the decision whether toreopen the 5.875% Freddie SUBS are in our sole discretion. We cannot assure you that we willreopen this issue of the 5.875% Freddie SUBS or, if reopened, what the total issue size will be.

Notices

We will give prompt notice of any event that would require deferral of the payment of interest onFreddie SUBS. We will also give notice of the resumption of the payment of interest on FreddieSUBS. We will give all notices by broadcast through the communications system of the U.S. FederalReserve Banks. If and so long as any Freddie SUBS are listed on the Luxembourg Stock Exchangewe also will give notices in a general circulation newspaper in Luxembourg (which is expected to bethe Luxemburger Wort) or, if publication in Luxembourg is not practical, elsewhere in Europe. Noticeby publication will be considered given on the date of publication or, if published more than once, onthe date of Ñrst publication.

CERTAIN UNITED STATES FEDERAL TAX CONSEQUENCES

Freddie SUBS and payments on the Freddie SUBS generally are not exempt from taxation bythe United States or other U.S. or non-U.S. taxing jurisdictions.

The following summary supplements the summary under ""Certain United States Federal TaxConsequences'' in the OÅering Circular. These two summaries do not discuss all of the taxconsequences that may be relevant to a BeneÑcial Owner in light of its particular circumstances orto BeneÑcial Owners subject to special rules. You are advised to consult your own tax advisor

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regarding the U.S. federal tax consequences to you of purchasing, owning and disposing of FreddieSUBS.

We will defer the payment of interest on Freddie SUBS upon the occurrence of an eventdescribed under ""Description of the Securities Ì Interest.'' Notwithstanding the potential forinterest deferral, we believe that the stated interest on the 5.875% Freddie SUBS will be treated as""unconditionally payable'' within the meaning of the OID Regulations. Accordingly, the statedinterest will be ""qualiÑed stated interest.'' Consequently, interest paid on Freddie SUBS generallywill be taxable to a U.S. Owner as ordinary interest income at the time it accrues or is received inaccordance with the U.S. Owner's method of accounting for U.S. federal income tax purposes. Ifpayments of interest actually were deferred, you generally would be required to include currentlyinterest (and interest on that interest) in your income at the stated rate as original issue discount,notwithstanding that the interest is not being paid currently.

In the event that, at the time of issuance of Freddie SUBS, the stated interest was not treated asunconditionally payable, Freddie SUBS would be treated as issued with original issue discount. Inthat case, a U.S. Owner, regardless of such U.S. Owner's regular method of accounting, would berequired to include the stated interest in income as it accrues, which may be before any receipt ofthe cash attributable to such income.

See ""Certain United States Federal Tax Consequences'' in the OÅering Circular.

PLAN OF DISTRIBUTION

Subject to the terms and conditions set forth in the Dealer Agreement, we have agreed to sell toeach of the Dealers named below, and each of the Dealers, for whom Goldman, Sachs & Co. andMerrill Lynch, Pierce, Fenner & Smith Incorporated are acting as joint lead managers (the ""LeadManagers''), has severally agreed to purchase, the amount of the 5.875% Freddie SUBS set forthopposite its name below:

Dealer Principal Amount

Goldman, Sachs & Co. ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 720,000,000Merrill Lynch, Pierce, Fenner & Smith

IncorporatedÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 720,000,000Salomon Smith Barney Inc. ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 105,000,000Blaylock & Partners, L.P. ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 100,000,000Credit Suisse First Boston Corporation ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 100,000,000First Tennessee Bank National Association ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 95,000,000J.P. Morgan Securities Inc. ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 68,000,000Morgan Stanley & Co. Incorporated ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 50,000,000Bear, Stearns & Co. Inc. ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 42,000,000

TotalÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $2,000,000,000

In the Dealer Agreement, the Dealers have severally agreed, subject to its terms and conditions,to purchase all the 5.875% Freddie SUBS if any are purchased.

The Lead Managers have advised us that the Dealers propose initially to oÅer the 5.875%Freddie SUBS to the public at the initial public oÅering price set forth on the cover page of thisPricing Supplement, and to certain other Dealers at that price less a concession not in excess of0.24% of the principal amount of the 5.875% Freddie SUBS. After the initial public oÅering, the publicoÅering price and concession may be changed. Goldman, Sachs & Co. will receive a portion of theunderwriting discount equal to 0.05% of the principal amount of the 5.875% Freddie SUBS forservices provided to Freddie Mac in connection with the Freddie SUBS Program.

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Prior to this oÅering, there has been no public market for Freddie SUBS. We have applied to listthe 5.875% Freddie SUBS on the Luxembourg Stock Exchange. Certain of the Dealers have advisedus that they intend to make a market in the 5.875% Freddie SUBS, but are not obligated to do so andmay discontinue any such market making at any time without notice. No assurance can be given asto the liquidity of the trading market for Freddie SUBS.

In connection with the oÅering, the Lead Managers may purchase and sell the 5.875% FreddieSUBS in the open market. These transactions may include short sales, stabilizing transactions andpurchases to cover positions created by short sales. Short sales involve the sale by the LeadManagers of a greater number of 5.875% Freddie SUBS than they are required to purchase in theoÅering. Stabilizing transactions consist of certain bids or purchases for the purpose of preventingor retarding a decline in the market price of the 5.875% Freddie SUBS while the oÅering is inprogress. The Lead Managers also may impose a penalty bid. This occurs when a particular Dealeris required to repay the Lead Managers a portion of the dealer discount received by it because theLead Managers have repurchased 5.875% Freddie SUBS sold by or for the account of such Dealerin stabilizing or short covering transactions. These activities by the Lead Managers may stabilize,maintain or otherwise aÅect the market price of the 5.875% Freddie SUBS. As a result, the price ofthe 5.875% Freddie SUBS may be higher than the price that might otherwise exist in the openmarket. If these activities are commenced, they may be discontinued by the Lead Managers at anytime. These transactions may be eÅected in the over-the-counter market or otherwise.

In the Dealer Agreement, Freddie Mac and the Dealers have agreed to indemnify each otheragainst certain liabilities.

The Dealers and certain of their aÇliates engage in transactions with and perform services forFreddie Mac in the ordinary course of business.

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Appendix A

OÅering Circular dated January 5, 2001

Freddie MacGlobal Debt Facility VOÅered Securities: Debt Securities.

Reference We may designate some Debt Securities as Reference Securities, which are U.S. dollar orSecuritiesSM: Euro denominated, regularly scheduled issues in large principal amounts.

Amount: No prescribed limit.

Maturities: One day or longer.

OÅering Terms: We oÅer the Debt Securities within the United States and internationally, primarily throughDealers, on the terms described in this OÅering Circular and related Pricing Supplements.

Currencies: U.S. dollars, Euros or other currencies speciÑed in the Pricing Supplement.

Priority: The Debt Securities will be unsecured general obligations or unsecured subordinatedobligations of Freddie Mac.

Tax Status: The Debt Securities are not tax-exempt. Non-U.S. owners generally will be subject toUnited States federal income and withholding tax unless they establish an exemption.

Form of Securities: Non-U.S. dollar denominated Debt Securities: Registered (global or deÑnitive).

U.S. dollar denominated Debt Securities: Book-entry (U.S. Federal Reserve Banks) orregistered (global or deÑnitive).

We will describe speciÑc terms, pricing information and other information for each issue of Debt Securities in aPricing Supplement, including whether the Debt Securities are general obligations or subordinated obligations,whether principal is payable at maturity or periodically, whether principal is redeemable prior to maturity, and whetherinterest will be paid and if so, whether at a Ñxed or variable rate.

We may list some Debt Securities issued under this Facility on the Luxembourg Stock Exchange or the SingaporeExchange Securities Trading Limited and have applied for these listings. Our application with the Luxembourg StockExchange applies to Debt Securities issued within twelve months of the date of this OÅering Circular. We may alsoissue unlisted Debt Securities and Debt Securities listed on other exchanges under this Facility.

Some Debt Securities are complex Ñnancial instruments and may not be suitable investments for you. Youshould consider carefully the risk factors described beginning on page 10. You should not purchase DebtSecurities unless you understand and are able to bear these and any other applicable risks.

Because of applicable U.S. securities law exemptions, we have not registered the Debt Securities with any U.S.federal or state securities commission. No U.S. securities commission has reviewed this OÅering Circular.

The Debt Securities are obligations of Freddie Mac only. The Debt Securities, including any interest or return ofdiscount on the Debt Securities, are not guaranteed by, and are not debts or obligations of, the United States or anyagency or instrumentality of the United States other than Freddie Mac.

The Index of DeÑned Terms (Appendix A) shows where deÑnitions of capitalized terms appear in this OÅeringCircular.

Arranger

LEHMAN BROTHERS""Reference Securities'' is a service mark of Freddie Mac.

A-1

If you intend to purchase Debt Securities, you should rely only on the information in this OÅering Circularand in any related Pricing Supplement for those Debt Securities, including the information in any documents weincorporate by reference. We have not authorized anyone to provide you with diÅerent information. We are notoÅering the Debt Securities in any jurisdiction that prohibits their oÅer. This OÅering Circular, any relatedPricing Supplements and any incorporated documents speak only as of their dates, regardless of the date youreceive these documents or purchase Debt Securities. These documents may not be correct after their dates.

Some jurisdictions may restrict by law the distribution of this OÅering Circular or any Pricing Supplementand the oÅer, sale and delivery of Debt Securities. Persons who receive this OÅering Circular or any PricingSupplement should know and observe these restrictions, which include but are not limited to the following:

United Kingdom: We may not distribute this OÅering Circular, any Pricing Supplement or any otherapplicable supplement or amendment in the United Kingdom to any person unless thatperson is of a kind described in Article 11(3) of the Financial Services Act 1986(Investment Advertisements) (Exemptions) Order 1996, as amended, or is a person towhom we may otherwise lawfully issue or distribute this OÅering Circular and anyPricing Supplement or any other supplement or amendment. Any Debt Security (includ-ing a Debt Security denominated in British pounds sterling (""Sterling'')) in respect ofwhich the issue proceeds are to be accepted by Freddie Mac in the United Kingdom andwhich is issued pursuant to an exempt transaction under regulation 13(1) or 13(3) ofthe Banking Act 1987 (Exempt Transactions) Regulations 1997 (the ""Banking ActRegulations'') will constitute commercial paper, a shorter term debt security or a longerterm debt security, each as issued in accordance with regulations made under section 4of the Banking Act 1987 (in each case as deÑned in the Banking Act Regulations), asspeciÑed in the applicable Pricing Supplement. Freddie Mac is not an authorizedinstitution or a European authorized institution (as such terms are deÑned in theBanking Act Regulations).

Japan: We have not registered the Debt Securities under the Securities and Exchange Law ofJapan (the ""Securities and Exchange Law''), and we may not directly or indirectly oÅerand sell Debt Securities in Japan or to any resident of Japan or to any person forreoÅering or resale, directly or indirectly, in Japan or to any resident of Japan except incompliance with, or under an available exemption from, the registration requirements ofthe Securities and Exchange Law and in compliance with other relevant laws of Japan.

For a further description of some additional restrictions on offers, sales and deliveries of DebtSecurities and on the distribution of the Offering Circular, any Pricing Supplement or any othersupplement or amendment, see ""Distribution Arrangements Ì Selling Restrictions'' and ""GeneralInformation.''

Neither the Luxembourg Stock Exchange nor the Singapore Exchange Securities Trading Limited (the""Singapore Stock Exchange'') assumes responsibility for the correctness of any of the statements made oropinions expressed or reports contained or incorporated by reference in this OÅering Circular. Admission to theOÇcial List of the Luxembourg Stock Exchange or the Singapore Stock Exchange is not to be taken as anindication of the merits of Freddie Mac or the Debt Securities.

After making all reasonable inquiries as of the date of this OÅering Circular, we conÑrm that this OÅeringCircular contains all information about the Debt Securities which, when read together with the applicable PricingSupplement and the documents incorporated by reference, is material, in the context of the initial issue of theDebt Securities. We also conÑrm that the information in this OÅering Circular, as of its date, is true and accuratein all respects and is not misleading and that there are no facts the omission of which makes this OÅeringCircular as a whole or any such information misleading in any material respect.

Neither this Offering Circular nor any Pricing Supplement describes all of the risks and investmentconsiderations applicable to Debt Securities whose principal or interest we pay in or determine by reference toone or more currencies or to one or more interest rate, currency or other indices or formulas. We and the Dealersdisclaim any responsibility to advise prospective investors of these risks and investment considerations as theyexist at the date of this Offering Circular or any Pricing Supplement or as these risks may change from time totime. Prospective investors should consult their own financial and legal advisors as to the risks and investmentconsiderations arising from an investment in such Debt Securities. Such Debt Securities are not an appropriateinvestment for investors who are unsophisticated regarding currency transactions or transactions involving theapplicable interest rate, currency or other indices or formulas. See ""Risk Factors.''

This OÅering Circular replaces and supersedes the OÅering Circular dated December 30, 1999, forissues of Debt Securities priced on and after the date of this OÅering Circular. This OÅering Circular relatesto Debt Securities issued under the Facility and not to any other securities of Freddie Mac, includingDebentures, Medium-Term Notes, Discount Notes, Euro Discount Notes and Reference BillsSM. We oÅerthose other securities under separate oÅering circulars.

""Reference Bills'' is a service mark of Freddie Mac.

A-2

TABLE OF CONTENTS

Description Page Description Page

Freddie MacÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4 Various Matters Regarding Freddie Mac ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 38Available InformationÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4 Events of Default ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 39Summary ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6 Rights Upon Event of Default ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 40Risk Factors ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 10 Amendment ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 40

The Debt Securities May Not Be Suitable For YouÏÏÏÏÏÏÏÏÏÏ 10 Replacement ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 42Structured Securities May Be Complex and Involve Greater Debt Securities Owned by Freddie MacÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 42

Risks ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 10 Notice ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 42Exchange Rate Risks and Exchange Controls May AÅect the Governing Law ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 43

Timing or Amount of Interest and Principal Paid on Your Certain United States Federal Tax Consequences ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 43Debt Securities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 11 U.S. Owners ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 44

Various Factors Could Adversely AÅect the Trading Value In GeneralÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 44and Yield of Your Debt Securities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 12 Payments of Interest ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 44Secondary Markets and Market Values ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 12 Debt Obligations with Original Issue Discount ÏÏÏÏÏÏÏÏÏÏÏÏ 45Subordinated Debt Securities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 13 Callable Debt ObligationsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 46Redeemable Debt Securities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 13 Debt Obligations with a Term of One Year or Less ÏÏÏÏÏÏÏ 46Fixed Rate and Zero Coupon Debt Securities ÏÏÏÏÏÏÏÏÏÏÏÏ 14 Acquisition Premium and Market Discount ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 47Step Debt Securities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 14 Debt Obligations Purchased at a Premium ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 48Variable Rate Debt Securities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 14 Accrual Method ElectionÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 48Fixed/Variable Rate Debt SecuritiesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 15 Disposition or Retirement of Debt Obligations ÏÏÏÏÏÏÏÏÏÏÏÏ 49Debt Securities Eligible for StrippingÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 15 Exchange of Amounts in Non-U.S. Currency ÏÏÏÏÏÏÏÏÏÏÏÏÏ 50

Legal Investment Considerations May Restrict Certain Stripped Debt Obligations ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 50InvestorsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 16 Non-U.S. Owners ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 51

Credit Ratings May Not ReÖect All Risks ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 16 Interest ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 51Description of the Debt Securities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 16 Disposition or Retirement of Debt Obligations ÏÏÏÏÏÏÏÏÏÏÏÏ 52

General ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 16 U.S. Federal Estate and Gift TaxesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 52SpeciÑed Currencies and SpeciÑed Payment Currencies ÏÏ 17 Information Reporting and Backup WithholdingÏÏÏÏÏÏÏÏÏÏÏÏÏ 52Denominations ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 18 Application of Proceeds ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 53Status of Debt Securities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 18 Legal Investment ConsiderationsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 53Maturity, Redemption and Optional RepaymentÏÏÏÏÏÏÏÏÏÏÏ 18 Distribution Arrangements ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 53Interest Payments ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 19 DistributionÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 53Corrections ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 27 Sales to Dealers as Principal ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 53Business Day Convention ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 28 Non-Underwritten Sales ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 54Subordinated Debt Securities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 28 Targeted Registered Debt Securities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 54Targeted Registered Issues ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 28 Sales Directly to InvestorsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 54Reopened Issues ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 29 Stabilization and Other Market Transactions ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 54Repurchase ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 29 Additional Information ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 55

Clearance and Settlement ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 29 Trading Markets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 55General ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 29 Selling Restrictions ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 56Clearance and Settlement ProceduresÌPrimary General ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 56

DistributionÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 30 United Kingdom ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 56Clearance and Settlement ProceduresÌSecondary Market JapanÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 57

Transfers ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 31 France ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 57Book-Entry Debt Securities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 31 Germany ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 57

Title ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 32 Hong KongÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 57Payments ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 32 SingaporeÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 57Fiscal AgentÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 33 Targeted Registered Debt Securities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 58

Registered Debt Securities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 33 Legality of the Debt Securities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 58Title ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 33 General InformationÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 58Payments ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 34 CapitalizationÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 60Global Agent ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 35 Selected Financial Information ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 60Exchange for DeÑnitive Debt SecuritiesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 35 Form of Pricing Supplement ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 62

Currency ConversionsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 37 *Appendix A Ì Location of DeÑned Terms ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 66Payment for Debt Securities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 37Payment on DTC Registered Debt SecuritiesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 37 * We use capitalized terms throughout this OÅering Circular. Appendix A

Global Facility Agreement ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 38 provides the page locations of the deÑnitions of these terms.Binding EÅect of the Global Facility AgreementÏÏÏÏÏÏÏÏÏÏÏÏÏ 38

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FREDDIE MAC

The Federal Home Loan Mortgage Corporation (""Freddie Mac'') was chartered on July 24,1970 by the Federal Home Loan Mortgage Corporation Act (the ""Freddie Mac Act''). Our statutorypurposes are:

‚ to provide stability in the secondary market for residential mortgages;

‚ to respond appropriately to the private capital market;

‚ to provide ongoing assistance to the secondary market for residential mortgages(including mortgages on housing for low- and moderate-income families involving areasonable economic return that may be less than the return earned on other activities);and

‚ to promote access to mortgage credit throughout the United States (including centralcities, rural areas and underserved areas) by increasing the liquidity of mortgageinvestments and improving the distribution of investment capital available for residentialmortgage Ñnancing.

To meet these statutory purposes, we purchase residential mortgages and mortgage-relatedsecurities from mortgage lenders, other mortgage sellers and securities dealers. We Ñnance ourpurchases primarily through the sale of guaranteed mortgage securities, debt securities, otherliabilities and equity capital.

AVAILABLE INFORMATION

We prepare an annual Information Statement that describes our business and operations andcontains our audited consolidated Ñnancial statements (""Information Statement''). We also preparequarterly Information Statement Supplements that include unaudited consolidated Ñnancial data andother information concerning our business and operations (each an ""Information StatementSupplement''). These documents are incorporated by reference in this OÅering Circular, whichmeans that we are disclosing information to you by referring you to those documents. Thesedocuments are considered part of this OÅering Circular. You should read this OÅering Circular, andany applicable supplements or amendments, in conjunction with our most recent InformationStatement and any subsequent Information Statement Supplements we incorporate by reference inthis OÅering Circular. As of the date of this OÅering Circular, our current Information Statement isdated March 31, 2000 and our current Information Statement Supplement is dated November 14,2000. You should rely only on the most current information provided or incorporated by reference inthis OÅering Circular and any applicable supplement or amendment.

You can obtain any of these documents, the Global Facility Agreement and any other docu-ments that we make available by contacting us at:

Freddie MacDebt Securities Marketing OÇce

8200 Jones Branch DriveMcLean, Virginia U.S.A. 22102-3110

Telephone: 1-800-336-FMPC(within Washington, DC metropolitan area: 703-903-3700)

E-Mail: debt securities@freddiemac.com.www.freddiemac.com

You also can read the Information Statement and any other information about Freddie Mac atthe oÇces of the New York Stock Exchange. Since we are not subject to the periodic reportingrequirements of the Securities Exchange Act of 1934, we do not Ñle reports or other information withthe U.S. Securities and Exchange Commission.

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In connection with the application to list the Debt Securities to be issued under the Facility onthe Luxembourg Stock Exchange, we have deposited copies of the Freddie Mac Act and Bylaws ofFreddie Mac and a legal notice relating to the issuance of the Debt Securities with the ChiefRegistrar of the District Court of Luxembourg, where copies may be inspected or obtained uponrequest. So long as any Debt Securities are listed on the Luxembourg Stock Exchange or theSingapore Stock Exchange, and the rules of such exchanges or any relevant authority so require,copies of the OÅering Circular (and all documents incorporated by reference) will be available freeof charge from the principal oÇces of the listing agent for such Debt Securities in Luxembourg andthe oÇce of Allen & Gledhill in Singapore. You may inspect copies of the Fiscal Agency Agreementand the Global Agency Agreement at the principal oÇces of the listing agent in Luxembourg and atthe oÇce of Allen & Gledhill in Singapore. You also may inspect copies of the Freddie Mac Act, theBylaws of Freddie Mac and the Global Facility Agreement at the oÇce of Allen & Gledhill inSingapore.

We have agreed, in connection with the listing of the Debt Securities on the Luxembourg StockExchange and the Singapore Stock Exchange that, so long as any Debt Securities remainoutstanding and listed on one of those exchanges, in the event of any material adverse change inthe business or the Ñnancial position of Freddie Mac that is not reÖected in this OÅering Circular asthen amended or supplemented (including the documents incorporated by reference), we willprepare an amendment or supplement to this OÅering Circular or publish a new OÅering Circular ifwe subsequently oÅer or list Debt Securities. If the terms of the Facility are modiÑed or amended in amanner that would make this OÅering Circular, as amended or supplemented, inaccurate ormisleading, we will prepare a further amendment to this OÅering Circular or a new OÅering Circular.

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SUMMARY

This Summary contains selected information about the Debt Securities. It does not contain all of theinformation you should consider before investing in the Debt Securities. You should refer to the remainderof this OÅering Circular and to any related Pricing Supplement for further information. If a PricingSupplement contains diÅerent information from this OÅering Circular, you should rely on the PricingSupplement.

Issuer ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Freddie Mac, a shareholder-owned government-sponsoredenterprise.

Debt Securities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Unsecured subordinated or unsubordinated notes, bonds and otherdebt securities issued from time to time under the Global DebtFacility (the ""Facility''). We have established the Facility under theGlobal Debt Facility Agreement dated as of January 5, 2001 (the""Global Facility Agreement'').

Reference Securities ÏÏÏÏÏÏÏÏ We will designate some Debt Securities as Reference Securities,which are U.S. dollar or Euro denominated, regularly scheduledissues in large principal amounts. Reference NotesSM are U.S.dollar denominated, non-callable Debt Securities with maturities ofone to ten years. Reference BondsSM are U.S. dollar denominated,non-callable Debt Securities with maturities of more than ten years.Callable Reference NotesSM are U.S. dollar denominated, callableDebt Securities with maturities of one to ten years. 0ReferenceNotesSM are Euro denominated, non-callable Debt Securities withmaturities of one to ten years. 0Reference BondsSM are Eurodenominated, non-callable Debt Securities with maturities of morethan ten years. Issuances may consist of new issues of ReferenceSecurities or the ""reopening'' of an existing issue.

Other Debt Securities ÏÏÏÏÏÏÏ We will issue other Debt Securities from time to time in U.S. dollars orother currencies with maturities of one day or longer. Debt Securi-ties with maturities of one to ten years will be called ""Notes'' andthose with maturities of more than ten years will be called ""Bonds.''These Debt Securities may be callable or non-callable.

ArrangerÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Lehman Brothers International (Europe).

AmountÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ We may issue Debt Securities in an unlimited amount.

Legal Status ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Unless otherwise speciÑed in the applicable Pricing Supplement, theDebt Securities will be unsecured general obligations having thesame priority as all of our other unsecured and unsubordinateddebt and ranking senior to any subordinated debt. If speciÑed in theapplicable Pricing Supplement, the Debt Securities will be un-secured subordinated obligations with such terms, including but notlimited to terms relating to priority or payment suspension, limita-tion or deferral (if any), as are set forth in the applicable PricingSupplement (""Subordinated Debt Securities''). The United Statesdoes not guarantee the Debt Securities or any interest or return ofdiscount on the Debt Securities. The Debt Securities are not debtsor obligations of the United States or any agency or instrumentalityof the United States other than Freddie Mac.

Pricing Supplements ÏÏÏÏÏÏÏÏÏÏ We will oÅer Debt Securities by means of a ""Pricing Supplement'' thatwill describe the speciÑc terms, pricing information and otherinformation for each issue of Debt Securities.

SpeciÑed Currencies ÏÏÏÏÏÏÏÏÏÏ We may denominate and make payments of principal and interest onthe Debt Securities in any of the following SpeciÑed Currencies or

""Reference Notes,'' ""Reference Bonds,'' ""Callable Reference Notes,'' ""0Reference Securities,'' ""0Reference Notes''and ""0Reference Bonds'' are service marks of Freddie Mac.

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in another currency speciÑed in the applicable Pricing Supplementssubject to compliance with all relevant laws and regulations.

Australian dollars New Zealand dollarsCanadian dollars SterlingDanish kroner Swedish kronorEuros Swiss francsHong Kong dollars U.S. dollarsJapanese yen (""Yen'')

Government or monetary authorities or clearing systems may requirethat Debt Securities denominated in certain currencies or currencyunits have certain denominations or have minimum or maximummaturities. The current minimum maturity for Debt Securities listedon the Luxembourg Stock Exchange is seven days and for DebtSecurities listed on the Singapore Stock Exchange is one month.

DenominationsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ We will issue and maintain U.S. dollar-denominated Debt Securities inminimum principal amounts and additional increments of U.S.$1,000, unless otherwise indicated in the related Pricing Supple-ment. We will issue and maintain 0Reference Securities in minimumprincipal amounts and additional increments of 01,000, unlessotherwise indicated in the related Pricing Supplement. The denomi-nations for all other non-U.S. dollar denominated Debt Securitieswill be as set forth in the applicable Pricing Supplement.

Unless otherwise permitted by then current laws and regulations,Debt Securities (including Debt Securities denominated in Ster-ling), in respect of which the issue proceeds are to be accepted byus in the United Kingdom, must have a minimum denomination of100,000 (or its equivalent in other currencies), unless such DebtSecurities may not be redeemed until the third anniversary of theirdate of issue and are to be listed on an EEA Exchange (as deÑnedin the Banking Act Regulations) (an ""EEA Exchange'').

Redemption andRepayment ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ We may have the option to redeem some Debt Securities, in whole or

in part, before their Maturity Dates. Also, holders of some DebtSecurities may have the option to require repayment of their DebtSecurities, in whole or in part, before their Maturity Dates. ThePricing Supplement for an issue of Debt Securities will say whetherthe Debt Securities are redeemable at our option or repayable atyour option and will describe the redemption or repayment right.

Unless otherwise permitted by then current laws and regulations,Debt Securities (including Debt Securities denominated in Ster-ling), in respect of which the issue proceeds are to be accepted byus in the United Kingdom, must have a minimum redemptionamount of 100,000 (or its equivalent in other currencies), unlesssuch Debt Securities may not be redeemed until the third anniver-sary of their date of issue and are to be listed on an EEA Exchange.

Payment Terms ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ The related Pricing Supplement will specify the payment terms of theDebt Securities.

PrincipalÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ The principal amount payable at maturity or upon redemption orrepayment may be a Ñxed amount, which may be at par or aspeciÑed amount above or below par. The principal amount paya-ble at maturity also may be a variable amount determined byreference to one or more indices, such as interest or exchange rateindices, or other formulas. The principal may be amortized throughperiodic payments during the term of the Debt Securities.

InterestÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Debt Securities may bear interest at Ñxed or variable rates (or acombination of Ñxed and variable rates), or may bear interest thatis indexed by reference to an interest or currency exchange rate orin some other manner, or may not bear interest.

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Stripping ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ We may provide that some Debt Securities may be stripped intointerest and principal components.

Form of Debt Securities ÏÏÏÏÏÏÏ We will issue Debt Securities in either book-entry form or registeredform and not in bearer form.

Book-Entry Debt Securities ÏÏ Debt Securities denominated and payable in U.S. dollars that areissued in book-entry form on the book-entry system (""Fed Book-Entry System'') of the U.S. Federal Reserve Banks (singly, a""Federal Reserve Bank'' and collectively, the ""Federal ReserveBanks''). Debt Securities on the Fed Book-Entry System may beheld of record only by entities eligible to maintain book-entryaccounts with a Federal Reserve Bank (""Fed Participants''). Hold-ers may not exchange Book-Entry Debt Securities for deÑnitiveDebt Securities.

Registered Debt Securities ÏÏ Debt Securities that are not Book-Entry Debt Securities. We generallywill issue Registered Debt Securities in global registered form butmay issue Registered Debt Securities in deÑnitive registered form ifspeciÑed in the applicable Pricing Supplement. Holders may ex-change Registered Debt Securities in global registered form fordeÑnitive Debt Securities only in the limited circumstances de-scribed in this OÅering Circular. See ""Description of the DebtSecurities Ì Registered Debt Securities Ì Exchange for DeÑnitiveDebt Securities.''

Fiscal AgentsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ The Federal Reserve Banks will act as Fiscal Agents for Book-EntryDebt Securities under a Fiscal Agency Agreement (the ""FiscalAgency Agreement'').

Global Agent ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Citibank, N.A.'s London oÇce (""Citibank Ì London'') will act as theGlobal Agent for Registered Debt Securities under a Global AgencyAgreement (the ""Global Agency Agreement'').

Clearance and Settlement ÏÏÏÏÏ Depending on the terms of an issue of Debt Securities and where theyare oÅered, the Debt Securities may clear and settle through one ormore of the following: the Federal Reserve Banks, DTC, Euroclear,Clearstream, Luxembourg or another designated clearing system.Most Debt Securities denominated and payable in U.S. dollars,including all U.S. dollar denominated Reference Securities, willclear and settle through the Fed Book-Entry System if distributedwithin the United States and through Euroclear and/or Clear-stream, Luxembourg if distributed outside the United States. MostDebt Securities denominated and payable in a SpeciÑed Currencyother than U.S. dollars, including all 0Reference Securities, willclear and settle through DTC if distributed within the United Statesand through Euroclear and/or Clearstream, Luxembourg, if distrib-uted outside the United States.

Governing LawÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ The Debt Securities will be governed by the federal laws of the UnitedStates. The local laws of the State of New York will be deemed toreÖect the federal laws of the United States, unless there isapplicable precedent under federal law or the application of NewYork law would frustrate the purposes of the Freddie Mac Act orthe Global Facility Agreement.

Tax StatusÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ The Debt Securities and income derived from the Debt Securitiesgenerally are subject to taxation by the United States and generallyare not exempt from taxation by other U.S. or non-U.S. taxingjurisdictions. Unless they establish an exemption by Ñling a formW-8BEN or otherwise, Non-U.S. Owners generally will be subject toUnited States federal income and withholding tax. See ""CertainUnited States Federal Tax Consequences Ì Non-U.S. Owners ÌInterest.''

We will not pay additional interest or other amounts or redeem theDebt Securities prior to maturity if any jurisdiction imposes any

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withholding or other tax on payments on the Debt Securities. If anyparticular issue of Debt Securities is ""targeted to foreign markets''under U.S. tax regulations, the related Pricing Supplement willdescribe any special tax considerations that apply.

Listing ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ We will specify in the applicable Pricing Supplement the exchange, ifany, on which we will list a particular issue of Debt Securities. Wemay list some Debt Securities issued under this Facility on theLuxembourg Stock Exchange or the Singapore Stock Exchangeand have applied for such listings. Our application with the Luxem-bourg Stock Exchange applies to Debt Securities issued withintwelve months of the date of this OÅering Circular. We may list anissue of Debt Securities on one, both or neither of these ex-changes. We may also list an issue of Debt Securities on otherexchanges or no exchange at all.

Luxembourg Listing Agent: ÏÏÏÏ Banque G πen πerale du Luxembourg, S.A.

Method of DistributionÏÏÏÏÏÏÏÏÏ In general, we will sell the Debt Securities to one or more Dealers asprincipals for resale to investors either at a Ñxed price or at varyingprices determined by the relevant Dealer or Dealers. These salesmay be by auction or other methods. The applicable Pricing Sup-plement will specify the names of this Dealer or these Dealers.Alternatively, we may allow Dealers to solicit purchases of DebtSecurities on an agency basis or we may sell Debt Securitiesdirectly to investors.

OÅering PriceÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Debt Securities may be oÅered at Ñxed prices equal to par, or at adiscount to or premium over par, or at varying prices relating toprevailing market prices at the time of resale as determined by theapplicable Dealer, as speciÑed in the applicable PricingSupplement.

Selling Restrictions ÏÏÏÏÏÏÏÏÏÏÏ Some jurisdictions restrict the oÅers and sales of Debt Securities andthe distribution of oÅering materials. If any particular issue of DebtSecurities is ""targeted to foreign markets'' under U.S. tax regula-tions, the Pricing Supplement for the Debt Securities will describethe selling restrictions that apply. See ""Distribution Arrange-ments Ì Selling Restrictions.''

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RISK FACTORS

This section describes some of the general risks and considerations that you should examinebefore investing in the Debt Securities. These risks and considerations may vary depending on yourparticular circumstances and on various economic, interest rate and exchange rate scenarios.Therefore, you should consult your own Ñnancial and legal advisors to determine the suitability for youof a particular issue of Debt Securities.

The Debt Securities May Not Be Suitable For You

The Debt Securities are not suitable investments for all investors. Before investing in aparticular issue of Debt Securities, you should:

‚ possess, either alone or with an investment advisor, the expertise and analytical toolsnecessary to evaluate, in the context of your Ñnancial situation, the particular features ofthe Debt Securities, the risks and beneÑts of investing in the Debt Securities and theeÅect of the Debt Securities on your overall investment portfolio;

‚ have suÇcient Ñnancial resources and liquidity to bear the risks associated with the DebtSecurities;

‚ understand the information contained and incorporated in this OÅering Circular and anyrelated Pricing Supplement;

‚ understand the terms of the Debt Securities; and

‚ understand any applicable legal investment restrictions.

Sophisticated institutional investors generally do not purchase complex Debt Securities asstand-alone investments. Rather, they may invest in complex Debt Securities to reduce the risk oftheir overall portfolio or to enhance their yield by adding an appropriate level of risk to their overallportfolio. You should not purchase any Debt Securities unless you understand and are able to bearthe associated yield, market, liquidity and structure risks, including risks associated with anyredemption provisions, periodic interest rate adjustments and exchange rates and controls. Youshould decide whether to invest in an issue of Debt Securities based on your own Ñnancial needsand the anticipated performance of the Debt Securities under a variety of economic, interest rateand exchange rate scenarios.

Structured Securities May Be Complex and Involve Greater Risks

If principal or interest on an issue of Debt Securities is either directly or inversely determined byreference to one or more interest rates, currencies (including exchange rates and swap indicesbetween currencies or currency units) or other indices or formulas, then an investment in the DebtSecurities would entail signiÑcant risks not associated with an investment in a conventional Ñxedrate debt security. These risks include the possibility that:

‚ the applicable index or indices may change signiÑcantly;

‚ changes in the applicable index or indices may not correlate with changes in interestrates or currencies generally or with changes in other indices;

‚ changes in the applicable index or indices will be magniÑed or diminished if the DebtSecurities' principal or interest formula contains a leverage factor or a deleverage factor;

‚ the applicable index or indices may be subject to maximum (""Cap'') or minimum(""Floor'') interest rate or exchange rate limitations;

‚ the timing of changes in an applicable index or indices may aÅect your actual yield, evenif the average level is consistent with your expectations (in general, the earlier thechange in the applicable index or indices, the greater the eÅect on yield);

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‚ two or more indices or formulas that you may expect to move in tandem or in some otherrelationship to each other may unexpectedly converge, diverge or otherwise not move asexpected;

‚ currency devaluations may occur or monetary authorities may impose or modify currencyexchange controls;

‚ the resulting interest rate may be less than the interest rate payable on a conventionalÑxed rate debt security we issued at the same time and, in some cases, may be as low aszero;

‚ you may receive repayments of principal at times other than you expect;

‚ you may lose all or a substantial portion of the principal of your Debt Security (whetherpayable at maturity, upon redemption or otherwise); and

‚ the value of Debt Securities with complex formulas or other terms may be volatile.

These risks may depend on a number of interrelated factors that we cannot control, includingÑnancial, economic and political events. In recent years, certain interest rates, currencies, currencyunits, exchange rates and indices have been highly volatile. This volatility may continue in the future.Past Öuctuations in any particular interest rate, currency, currency unit, exchange rate or index donot necessarily indicate the Öuctuations that may occur in the future.

You should have knowledge of, and access to, appropriate analytical tools to evaluatequantitatively the eÅect of the particular features of the Debt Securities you are consideringpurchasing and the resulting eÅects upon their yields and values.

Exchange Rate Risks and Exchange Controls May AÅect the Timing or Amount of Interest andPrincipal Paid on Your Debt Securities

We will denominate each issue of Debt Securities in one or more SpeciÑed Currencies in whichwe will pay principal and any interest. We may determine the amount of principal or interestpayments on an issue of Debt Securities by reference to one or more SpeciÑed Currencies(including exchange rates and swap indices between currencies or currency units) that may bediÅerent from the denominated SpeciÑed Currency. You may conduct your Ñnancial activities in acurrency other than the Debt Securities' denominated SpeciÑed Currencies or other than theSpeciÑed Currencies that determine the amount of the Debt Securities' principal or interestpayments. In those cases, an investment in the Debt Securities involves more risks than if the DebtSecurities were denominated in or indexed solely to your currency. These risks include thepossibility that:

‚ the rate of exchange between the applicable SpeciÑed Currency and your currency maychange signiÑcantly (including changes as a result of devaluation of the SpeciÑedCurrency or revaluation of your currency);

‚ changes in exchange rates may decrease the eÅective yield on the Debt Securities and,in certain circumstances, you could lose all or a substantial portion of the principal of theDebt Securities;

‚ if the value of your currency appreciates relative to the value of the applicable SpeciÑedCurrency, the yield on the Debt Securities, the value of payments on the Debt Securitiesand the market value of the Debt Securities all would decrease in terms of your currency.A depreciation in the value of your currency relative to the value of the applicableSpeciÑed Currency would have the opposite eÅect; and

‚ authorities with jurisdiction over the applicable SpeciÑed Currency or your currency mayimpose or modify currency exchange controls.

In recent years, certain exchange rates and indices have been highly volatile. This volatility maycontinue in the future. Past Öuctuations in any particular exchange rate or index, however, do notnecessarily indicate the Öuctuations that may occur in the future.

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Government and monetary authorities have imposed, and may impose in the future, exchangecontrols that could aÅect exchange rates as well as the availability of the applicable SpeciÑedCurrency when payments of principal or interest are due on an issue of Debt Securities. Even in theabsence of actual exchange controls, it is possible that when payment