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Federal Home Loan Mortgage
Corporation
Type: Public
Founded: 1970
Location: McLean, VA
Key people: Richard Syron, CEO & Chairman
Industry: Mortgage Investment
Products: Financial Services
Revenue: $36.8 billion (2003)
Employees: 5,000
Website: www.freddiemac.com
The Federal Home Loan Mortgage Corporation ("Freddie
Mac") NYSE: FRE, a government sponsored enterprise,
is a stockholder-owned, publicly-traded company chartered
by the United States federal government in 1970 to purchase
mortgages and related securities, and then issue securities
and bonds in financial markets backed by those mortgages
in secondary markets. Freddie Mac, like its competitor
Fannie Mae is regulated by the Office of Federal Housing
Enterprise Oversight (OFHEO) in the United States Department
of Housing and Urban Development.
Freddie Mac makes money by charging a guarantee fee which
is usually a small part of the interest payment of the
loans they have securitized into bonds. (For example,
Freddie Mac may purchase a loan with a rate of 5.19 percent
and put it into a mortgage backed security (MBS) bond
which has a 5.0 percent coupon, keeping 0.19 percent as
the guarantee fee.) Investors, or purchasers of Freddie
Mac MBS, are willing to let Freddie Mac keep this fee
in exchange for assuming the credit risk, that is, Freddie's
guarantee that the principal of the underlying loan will
be paid back regardless of whether the borrower actually
repays. This is how Freddie Mac began making money at
its inception and continues to do so today. But today,
the majority of Freddie Mac's income is derived from the
interest rate difference in the corporate debt Freddie
Mac issues and the MBS that Freddie Mac's retained portfolio
purchases.
The company is based in McLean, Virginia.
* 1 Credit rating
* 2 Investigations
* 3 Awards
Credit rating
* Senior Long-Term Debt: AAA Aaa AAA
* Short-Term Debt A-1+ Prime-1 F-1+
* Subordinated Debt AA- Aa2 AA-
* Preferred Stock AA- Aa3 AA- Watch Negative
* Risk-To-The-Government AA- Not Applicable Not Applicable
* Bank Financial Strength Not Applicable A- Not Applicable
Investigations
As of 2004, Freddie Mac is under investigation for creative
accounting practices that may have been aimed more at
protecting figures than actually managing risk.
Awards
Freddie Mac was named one of the 100 Best Companies for
Working Mothers in 2004 by Working Mothers magazine.
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About Hilton Head Island
With such an amazing variety of things to do on Hilton Head
Island, somewhere, somebody is teeing up for the best round
of golf they've ever played. Somewhere, a family of four is
enjoying their Hilton Head vacation, strolling down a secluded
beach as warm Atlantic waters lap at their feet. Somewhere,
a couple is enjoying the pastel-colored sky of a beautiful Hilton
Head Island sunset. Renowned as one of the world's most family-friendly
destinations, Hilton Head Island offers unlimited opportunities
for holiday memories and was recently named one of the top ten
family beaches in the country. As an intimate getaway for two
or an idyllic backdrop for a family reunion, the Island extends
a variety of outdoor and indoor recreational activities. You'll
notice that there's something different about Hilton Head the
moment you arrive. By design, there is a sensitive nod to the
environment that has become the blueprint for other developments
around the nation. Buildings are set back from the main roads,
showcasing the native pines and oaks. Colors are not flamboyant
and bright; instead, they are subdued and blend with the natural
environment. And bright streetlights here are as rare as snowstorms.
A progressive land purchasing program undertaken by town leadership
ensures that there's plenty of green wherever you go, and strict
development guidelines ensure that the only thing between your
eyes and a breathtaking view are your sunglasses. It's easy
to see why more than 39,000 people have chosen to call the Island
their permanent home. At the very foundation of the Hilton Head
Island vacation experience is the community of full-time residents
who work hard to make sure their Island is a clean, safe and
enjoyable place to visit. You'll notice it in the friendly faces
that greet you wherever you go. There is a relaxed and warm
island attitude in the air, one that whispers "Welcome to Hilton
Head Island. Hilton Head Island was named one of the Top 10
Family Beaches.
Hilton Head Island Attractions & Activities
Hilton Head Island fills your family's days with fun and activities.
Pristine beaches, flexible accommodation options and endless recreation
have made Hilton Head Island a first choice for family vacations.
Both day and evening entertainment for the entire family is far
reaching. Every April, the Verizon Heritage PGA TOUR golf tournament
is played in Hilton Head Island and the Hilton Head Celebrity
Golf Tournament is held on Labor Day Weekend. During the month
of May, Hilton Head Island and the Lowcountry celebrate the area’s
vibrant arts community and diverse cultural heritage through visual
and performing arts events, cultural activities and programs with
BRAVO-Celebrate the Arts! Budget friendly activities are available
day and night on the Island. Families can venture to the top of
the Harbour Town Lighthouse in Sea Pines for only a dollar each
person. This activity offers a clear view of the Island’s south
end as well as the eye pleasing Harbour Town Marina. Also available
in Sea Pines is shopping, waterfront dining and horse back riding.
Families could spend at entire day in Sea Pines alone. Other family
friendly spots include Shelter Cove Harbour, Adventure Cove, the
Coastal Discovery Museum and The Sandbox, An Interactive Children's
Museum. Shelter Cove Harbour offers a variety of experiences such
as shopping, kayaking, sailing and cruise excursions, fireworks
and concerts. Activities at Adventure Cove include laser tag,
bumper cars, video arcade, an indoor play room, miniature golf
and more. Other miniature golf courses include Legendary Golf
and Pirate’s Island Adventure Golf. The Coastal Discovery Museum
offers programs, activities, and exhibits to make learning about
Hilton Head and other sea islands an enjoyable experience. The
museum is a great place to visit any time of the year. With indoor
and outdoor exhibits, activity centers in the Sea Island Classroom,
the History Time-line Exhibit and museum store, plus 11 different
tours and cruises around the island, the museum is a fantastic
way to become familiar with the Island's unique history and ecology.
The Sandbox is a hands-on interactive museum filled with unique
entertaining, and educational play areas to explore. At The Sandbox
all the exhibits are designed to help children learn while having
fun and bonding with each other and their caregivers. There are
no “do not touch” signs at this Museum. Children can sail away
on Captain William Hilton’s ship The Adventure, find their Passport
to the World in the international airport terminal with a simulator
plane ready to take the little ones anywhere, and visit the Loggerhead
sandcastle filled with magic sand. For a more relaxing adventure,
two multi-screened movie theaters and one independent film theater
allow families to catch the latest on the silver screen. In addition,
the stage is always set at the Arts Center of Coastal Carolina,
the South Carolina Repertory Company and the May River Theatre
Company.
Directions to Hilton Head Island
From I-95: Take Exit 8 (eight miles from the Georgia border) and
go east following signs to Hilton Head Island. This is Highway
278 and you will travel about 18 miles and then you cross the
bridge to Hilton Head. Continue over the bridge and look for signs
for the Cross Island Expressway. If you are going to the south
end of the island (Shipyard, Coligny, Forest Beach, Sea Pines)
stay to your left and use the expressway (Toll $1) to save time.
Otherwise, keep right and stay on Highway 278 Business. After
you cross the bridge onto Hilton Head Island, look for the Welcome
Center and Coastal Discovery Museum on your right. The Welcome
Center has brochures on Hilton Head activities, additional maps
and upcoming events. If flying into the Savannah/Hilton Head International
Airport, take I-95 North and follow the above directions.
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