[Congressional Record Volume 141, Number 124 (Friday, July 28, 1995)]
[Extensions of Remarks]
[Page E1556]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


     FREDDIE MAC'S 25TH ANNIVER- SARY--JULY 24, 1970-JULY 24, 1995

                                 ______


                          HON. THOMAS M. DAVIS

                              of virginia

                    in the house of representatives

                         Friday, July 28, 1995
  Mr. DAVIS. Mr. Speaker, 25 years ago this week, Congress created the 
Federal Home Loan Mortgage Corporation in an effort to relieve an 
ailing mortgage finance system. By utilizing what works best in the 
private and public sectors, Congress established Freddie Mac and 
revolutionized the home finance industry. Since then, Americans across 
the Nation have shared in the success, as housing funds have become 
more affordable and more available. Freddie Mac has continuously 
expanded into new and diverse markets, financing one in every six homes 
nationwide. They have housed over 16 million families since their 
inception in 1970. In my own Commonwealth of Virginia, Freddie Mac has 
purchased over 444,000 loans worth more than $36 billion in its 25 
years.
  As my colleagues are well aware, Freddie Mac keeps the supply of low 
cost money for housing widely available by linking mortgage lenders 
with security investors. It accomplishes its task by purchasing 
investment quality loans from primary lenders, packaging these loans as 
mortgage backed securities, and selling these securities to investors. 
Money is then available to purchase more loans from the lenders, and 
the cycle continues. It is important to point out that Freddie Mac 
accomplishes this without any Federal funding. In fact, it has been a 
major Federal taxpayer. In the past 5 years alone, it has paid over $2 
billion in Federal taxes.
  Today, I would like to commend Freddie Mac for another role it plays. 
As a corporate citizen, Freddie Mac strives to give even more to the 
communities it serves through its Freddie Mac Foundation. The Freddie 
Mac Foundation is dedicated to brightening the future of children, 
youth, and families at risk. Created with an endowment from Freddie Mac 
in 1990, the Foundation has invested more than $8 million in nonprofit 
organizations serving the Washington, DC, area.
  Healthy families help foster healthy communities. Freddie Mac 
understands this and we in Congress should recognize and commend them 
for not only fulfilling their mission, but for taking this mission a 
step further. As their Chairman and CEO, Leland Brendsel, likes to say, 
while Freddie Mac's mission is to make the American dream of decent, 
accessible housing a reality, its foundation and its employees work to 
turn houses into healthy homes for children. They do this throughout 
the country, but we in Virginia, Maryland, and the District of Columbia 
have been particularly blessed by their presence.
  In Virginia, one example of particular note is their long-standing 
partnership with Hunters Woods Elementary School in Reston where the 
Foundation has committed almost $200,000 and the employees have 
committed thousands of hours of time working with the kids on their 
special needs. The entire area will benefit from a recent Freddie Mac 
commitment of $1 million to help establish a Child Protection Center 
for area battered and abused children and their families at Children's 
Hospital. Finally, Freddie Mac's commitment to support our communities 
is probably best exemplified by a Washington Post article, which I 
submit for the Record, highlighting their work to help the District's 
foster care program. This is the kind of public/private partnership 
Freddie Mac brings not only to the community but to its public mission.
  I believe Freddie Mac deserves not only congratulations on its 25th 
anniversary and thanks for doing a good job in meeting its mission, but 
also for its support for children, youth and families at risk in 
communities throughout the country.


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