Freddie Mac to Treat MGIC, PMI, Radian as Type I Insurers Following Remediation Plan Reviews

Plans Intended to Help MIs Regain AA Ratings, Enhance Capital Positions MCLEAN, Va., June 20


MCLEAN, Va., June 20 /PRNewswire-FirstCall/ -- Freddie Mac today said it
would continue to treat Mortgage Guaranty Insurance Corporation (MGIC), PMI
Mortgage Insurance Co. (PMI) and Radian Guaranty, Inc. (Radian) as Type I
Insurers under Freddie Mac's Private Mortgage Insurer Eligibility
Requirements. Freddie Mac (NYSE: FRE) is one of the nation's largest investors
in residential mortgages.


Today's announcement follows Freddie Mac's review of the business and
financial remediation plans the companies stated they are implementing to
regain AA ratings from one or more rating agencies.  Freddie Mac retains the
right to rescind or modify this decision at any time.



Freddie Mac is a stockholder-owned corporation established by Congress in
1970 to support homeownership and rental housing. Freddie Mac purchases
single-family and multifamily residential mortgages and mortgage-related
securities, which it finances primarily by issuing mortgage-related securities
and debt instruments in the capital markets. Over the years, Freddie Mac has
made home possible more than 50 million times, ensuring financing for one in
six homebuyers and more than four million renters.



SOURCE  Freddie Mac