Freddie Mac Continues Drive to Make Innovative Mortgage Technologies Available to All Lenders

Acquisition of Former Tuttle Decision Systems Applications From

Microsoft Promises Broader Distribution of On-Line Mortgage

Lending Services, More Efficient Links between Primary and Secondary

Mortgage Markets



Apr 19, 2001, 01:00 ET from Freddie Mac

    MCLEAN, Va., April 19 /PRNewswire/ -- Freddie Mac (NYSE:   FRE) today
 announced that it has taken steps to provide more lenders with access to tools
 that will empower them to further streamline the mortgage process, reduce
 origination costs and seamlessly integrate their processes with those of
 mortgage investors.  Through the acquisition of the Tuttle Decision Systems
 (TDS) applications from Microsoft's former subsidiary, HomeAdvisor
 Technologies, Inc., Freddie Mac will soon offer mortgage lenders of all sizes
 technologies that will enable them to provide on-line mortgage services on
 their own websites.
     Freddie Mac played a leading role in defining and deploying the TDS
 technologies which power Gold Cash Xtra(R), the company's cash-based mortgage
 purchase process.  For over 5 years, Freddie Mac has licensed the technologies
 it is now formally acquiring, first from Tuttle Decision Systems and
 subsequently from Microsoft, as part of a technology alliance announced last
 year.
     "Freddie Mac has long believed that developing and providing access to
 advanced mortgage technology is a powerful way of fulfilling its mission of
 providing a stable, reliable and inexpensive supply of mortgage credit," said
 Pete Maselli, senior vice president of Business Development at Freddie Mac.
 "Our mission both empowers and motivates us to provide the widest possible
 distribution of this technology throughout the market."
     "We are pleased Freddie Mac is acquiring these leading-edge mortgage
 technologies," said Stephen P. Renock IV, President and CEO of CUNA Mutual
 Mortgage.  "Credit unions are already providing their members access to these
 systems.  Those members have been benefiting -- and now they will continue to
 do so -- through the convenience, reduced cost and simplified process."
     "We are glad that Freddie Mac has taken this step," said Blaise Johnson,
 executive vice president of Gate City Bank of Fargo, North Dakota.  "Gate City
 has been more competitive since we started using the Tuttle-Freddie Mac
 applications in 1997, thanks in part to the pipeline management tools and Gold
 Cash Xtra."
     Microsoft had earlier made a decision to exit the mortgage technology
 field in order to focus on its real estate businesses.  Microsoft will
 continue to own and operate the popular MSN HomeAdvisor Website as well as
 Realty Desktop, the Internet-based transaction management platform it
 currently offers to the real estate industry.  In addition, Microsoft will
 separately sell off the TDS subsidiary, Tuttle Risk Management Services Inc.
 (TRMS), which will not be acquired by Freddie Mac.
     Microsoft's search for a strategic buyer that would ensure the continuing
 development and broad dissemination of the mortgage technology culminated in
 the transaction with Freddie Mac.  "We will continue to improve the TDS
 technologies and will empower as many lenders as possible to take advantage of
 that technology," Maselli said.  "Small lenders in particular will benefit
 from our ability to make this technology available quickly, broadly and at an
 affordable cost."
     TDS will function under all the same operating restrictions and with the
 same regulatory oversight as does Freddie Mac.  Freddie Mac's charter
 prohibits the corporation from originating mortgage loans.  TDS's sole
 business is the development and distribution of mortgage software for lenders
 and for mortgage investors.  TDS does not originate mortgage loans, and TDS
 will now operate under Freddie Mac's charter prohibitions.
     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 passthrough
 securities and debt instruments in the capital markets.  Over the years,
 Freddie Mac has opened the doors for one in six homebuyers and more than two
 million renters across America.  Additional information may be found on the
 company's website, http://www.freddiemac.com .
 
 

SOURCE Freddie Mac
    MCLEAN, Va., April 19 /PRNewswire/ -- Freddie Mac (NYSE:   FRE) today
 announced that it has taken steps to provide more lenders with access to tools
 that will empower them to further streamline the mortgage process, reduce
 origination costs and seamlessly integrate their processes with those of
 mortgage investors.  Through the acquisition of the Tuttle Decision Systems
 (TDS) applications from Microsoft's former subsidiary, HomeAdvisor
 Technologies, Inc., Freddie Mac will soon offer mortgage lenders of all sizes
 technologies that will enable them to provide on-line mortgage services on
 their own websites.
     Freddie Mac played a leading role in defining and deploying the TDS
 technologies which power Gold Cash Xtra(R), the company's cash-based mortgage
 purchase process.  For over 5 years, Freddie Mac has licensed the technologies
 it is now formally acquiring, first from Tuttle Decision Systems and
 subsequently from Microsoft, as part of a technology alliance announced last
 year.
     "Freddie Mac has long believed that developing and providing access to
 advanced mortgage technology is a powerful way of fulfilling its mission of
 providing a stable, reliable and inexpensive supply of mortgage credit," said
 Pete Maselli, senior vice president of Business Development at Freddie Mac.
 "Our mission both empowers and motivates us to provide the widest possible
 distribution of this technology throughout the market."
     "We are pleased Freddie Mac is acquiring these leading-edge mortgage
 technologies," said Stephen P. Renock IV, President and CEO of CUNA Mutual
 Mortgage.  "Credit unions are already providing their members access to these
 systems.  Those members have been benefiting -- and now they will continue to
 do so -- through the convenience, reduced cost and simplified process."
     "We are glad that Freddie Mac has taken this step," said Blaise Johnson,
 executive vice president of Gate City Bank of Fargo, North Dakota.  "Gate City
 has been more competitive since we started using the Tuttle-Freddie Mac
 applications in 1997, thanks in part to the pipeline management tools and Gold
 Cash Xtra."
     Microsoft had earlier made a decision to exit the mortgage technology
 field in order to focus on its real estate businesses.  Microsoft will
 continue to own and operate the popular MSN HomeAdvisor Website as well as
 Realty Desktop, the Internet-based transaction management platform it
 currently offers to the real estate industry.  In addition, Microsoft will
 separately sell off the TDS subsidiary, Tuttle Risk Management Services Inc.
 (TRMS), which will not be acquired by Freddie Mac.
     Microsoft's search for a strategic buyer that would ensure the continuing
 development and broad dissemination of the mortgage technology culminated in
 the transaction with Freddie Mac.  "We will continue to improve the TDS
 technologies and will empower as many lenders as possible to take advantage of
 that technology," Maselli said.  "Small lenders in particular will benefit
 from our ability to make this technology available quickly, broadly and at an
 affordable cost."
     TDS will function under all the same operating restrictions and with the
 same regulatory oversight as does Freddie Mac.  Freddie Mac's charter
 prohibits the corporation from originating mortgage loans.  TDS's sole
 business is the development and distribution of mortgage software for lenders
 and for mortgage investors.  TDS does not originate mortgage loans, and TDS
 will now operate under Freddie Mac's charter prohibitions.
     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 passthrough
 securities and debt instruments in the capital markets.  Over the years,
 Freddie Mac has opened the doors for one in six homebuyers and more than two
 million renters across America.  Additional information may be found on the
 company's website, http://www.freddiemac.com .
 
 SOURCE  Freddie Mac

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