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Offering Circular Supplement(To Offering CircularDated June 1, 2010)
$205,854,619
Freddie MacMulticlass Certificates, Series 4327
Offered Classes: REMIC Classes (other than B) shown below
Offering Terms: The underwriter named below is offering the Classes in negotiated transactions at varyingprices
Closing Date: April 30, 2014
REMICClasses
OriginalBalance
PrincipalType(1)
ClassCoupon
InterestType(1)
CUSIPNumber
Final PaymentDate
Group 1A . . . . . . . . . . . . . . . . . . . . $110,922,000 SEQ 4.0% FIX 3137B9ST3 February 15, 2040B(2) . . . . . . . . . . . . . . . . . . . . 42,691,851 SEQ 4.0 FIX 3137B9SU0 April 15, 2044Group 2KV . . . . . . . . . . . . . . . . . . . . 21,007,000 SC/AD/SEQ 4.0 FIX 3137B9SV8 March 15, 2027KZ . . . . . . . . . . . . . . . . . . . . 31,233,768 SC/SEQ 4.0 FIX/Z 3137B9SW6 April 15, 2044ResidualR . . . . . . . . . . . . . . . . . . . . 0 NPR 0.0 NPR 3137B9SX4 April 15, 2044RA . . . . . . . . . . . . . . . . . . . . 0 NPR 0.0 NPR 3137B9SY2 April 15, 2044
(1) See Appendix II to the Offering Circular.(2) This Class is included in the Group 2 Assets and will not be offered.
The Certificates may not be suitable investments for you. You should not purchase Certificates unless you havecarefully considered and are able to bear the associated prepayment, interest rate, yield and market risks ofinvesting in them. Certain Risk Considerations on page S-2 highlights some of these risks.
You should purchase Certificates only if you have read and understood this Supplement, the attached OfferingCircular and the documents identified under Available Information.
We guarantee principal and interest payments on the Certificates. These payments are not guaranteed by, andare not debts or obligations of, the United States or any federal agency or instrumentality other than FreddieMac. The Certificates are not tax-exempt. Because of applicable securities law exemptions, we have notregistered the Certificates with any federal or state securities commission. No securities commission hasreviewed this Supplement.
March 20, 2014
CERTAIN RISK CONSIDERATIONS
Although we guarantee the payments on the Certificates, and so bear the associated credit risk, asan investor you will bear the other risks of owning mortgage securities. This section highlights some ofthese risks. You should also read Risk Factors and Prepayment, Yield and Suitability Considerations inthe Offering Circular for further discussions of these risks.
The Certificates May Not be Suitable Investments for You. The Certificates are complexsecurities. You should not purchase Certificates unless you are able to understand and bear theassociated prepayment, interest rate, yield and market risks.
In particular, the Accrual and Residual Classes have special risks and are not suitable for allinvestors.
Prepayments Can Reduce Your Yield. The yield on your Certificates could be lower than youexpect if:
• You buy your Certificates at a premium over their principal amount and principalpayments are faster than you expect.
• You buy your Certificates at a discount to their principal amount and principal paymentsare slower than you expect.
If you buy any Class at a significant premium and prepayments are fast, you may not even recoveryour investment.
The Certificates are Subject to Market Risks. You will bear all of the market risks of yourinvestment. The market value of your Certificates will vary over time, primarily in response to changesin prevailing interest rates. If you sell your Certificates when their market value is low, you mayexperience significant losses. The underwriter named on the front cover (the “Underwriter”) intendsto make a market for the purchase and sale of the Certificates (other than B) after they are issued, buthas no obligation to do so. A secondary market may not develop. Even if one does develop, it may notbe liquid enough to allow you to sell your Certificates easily or at your desired price.
Our Multiclass Certificates Offering Circular dated June 1, 2010 (the “Offering Circular”),attached to this Supplement, defines many of the terms we use in this Supplement.
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TERMS SHEET
This Terms Sheet contains selected information about this Series. You should refer to theremainder of this Supplement for further information.
In this Supplement, we refer to Classes only by their letter designations. For example, “R” refersto the R Class of this Series.
Payment Dates
We make payments of principal and interest on the Certificates on each monthly Payment Datebeginning in May 2014.
Form of Classes
Regular Classes: Book-entry on Fed System
Residual Classes: Certificated
Interest
The Fixed Rate Classes bear interest at the Class Coupons shown on the front cover.
See Payments — Interest.
Principal
On each Payment Date, we pay:
Group 1
SequentialPay ⎧⎨⎩• The Group 1 Asset Principal Amount to A and B, in that order, until retired
Group 2
SC/SequentialPay
⎧⎨⎩• The Accrual Amount and the Group 2 Asset Principal Amount to KV and KZ, in that
order, until retired
See Payments — Principal and Prepayment and Yield Analysis.
REMIC Status
We will form two Single-Tier REMIC Pools for this Series. We will elect to treat each REMICPool as a REMIC under the Code. R and RA will be “Residual Classes” and the other Classes shownon the front cover will be “Regular Classes.” The Residual Classes will be subject to transferrestrictions. See Certain Federal Income Tax Consequences in this Supplement and the OfferingCircular.
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Weighted Average Lives (in years)*
Group 1PSA Prepayment Assumption
0% 100% 165% 300% 400%
A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.3 6.0 4.1 2.5 1.9B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28.0 19.6 15.6 10.1 7.8Group 1 Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.6 9.7 7.3 4.6 3.5
Group 2PSA Prepayment Assumption
0% 100% 165% 300% 400%
KV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.0 7.0 6.7 5.2 4.3KZ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.5 20.0 16.5 11.4 8.9Group 2 Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.5 20.0 16.0 10.4 8.0
* We calculate weighted average lives based on the assumptions described in Prepayment and Yield Analysis. The actualweighted average lives are likely to differ from those shown, perhaps significantly.
The Assets
The Group 1 Assets (the “PC Assets”) consist of Freddie Mac PCs with the followingcharacteristics:
Principal BalanceOriginal Term
(in years) Interest Rate
$153,613,851* 30 4.0%
* Backed by High LTV Mortgages. See General Information — The Mortgages.
The Group 2 Assets (the “Multiclass Assets”) consist of:
Class
Percentage ofClass in
This SeriesBalance inThis Series
Class Factorfor Month ofClosing Date
ClassCoupon
Principal/Interest Type Final Payment Date
4196-B(1)(2) 100% $ 9,548,917 1.00000000 4.0% SEQ/FIX April 15, 20434327-B(2)(3) 100 42,691,851 1.00000000 4.0 SEQ/FIX April 15, 2044
(1) MACR Class.(2) Backed by High LTV Mortgages. See General Information — The Mortgages.(3) 4327-B is a Group 1 Class of this Series.
See General Information — Structure of Transaction and Exhibit I.
We will publish a Supplemental Statement applicable to this Series shortly after the Closing Date.The Supplemental Statement will contain a schedule of the Assets and other information. See AvailableInformation.
Mortgage Characteristics (as of April 1, 2014)
PC Assets — Assumed Mortgage Characteristics
Principal Balance
Remaining Termto Maturity(in months)
Loan Age(in months)
Per AnnumInterest Rate
Per AnnumInterest Rate
of Related PCs
$153,613,851 331 18 4.465% 4.0%
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Multiclass Assets — Mortgage Characteristics
Series
Weighted AverageRemaining Term
to Maturity(in months)
Weighted AverageLoan Age
(in months)
Weighted AveragePer Annum
Interest Rate
Per AnnumInterest Rate
of Related PCs
4196 342 14 4.383% 4.0%4327*
* See Assumed Mortgage Characteristics above.
The actual characteristics of the Mortgages differ from those shown, in some cases significantly.
See General Information — The Mortgages.
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AVAILABLE INFORMATION
We incorporate by reference in this Supplement the Incorporated Documents listed underAdditional Information in the Offering Circular. For purposes of this Supplement, the “IncorporatedDocuments” also include, if you are investing in a Group 2 Class, our Offering Circular Supplementfor the Series 4196 Multiclass Assets (the “Multiclass Asset Offering Circular”), the front cover,Term Sheet and MACR table from which are in Exhibit I. Information relating to 4327-B from thisSeries is included in this Supplement.
When we incorporate documents by reference, that means we are disclosing information to you byreferring to those documents rather than by providing you with separate copies. The IncorporatedDocuments are considered part of this Supplement. You should purchase Certificates only if you haveread and understood this Supplement, the Offering Circular and the Incorporated Documents.Information that we incorporate by reference will automatically update information in this Supplement.We will also publish a Supplemental Statement applicable to this Series shortly after the Closing Date.The Supplemental Statement will contain a schedule of the Assets and other information. You shouldrely only on the most current information provided or incorporated by reference in this Supplement andany applicable Supplemental Statement.
You may read and copy any document we file with the SEC at the SEC’s public reference room at100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for furtherinformation on the public reference room. The SEC also maintains a website at http://www.sec.govthat contains reports, proxy and information statements, and other information regarding companiesthat file electronically with the SEC.
You can obtain, without charge, copies of the Incorporated Documents, any documents wesubsequently file with the SEC, the Trust Agreement and current information concerning the Assetsand Certificates, as well as the disclosure documents and current information for any other securitieswe issue, from our Investor Inquiry Department or our internet website as described on page 7 of theOffering Circular. You can also obtain the documents listed above from the Underwriter at:
RBC Capital Markets, LLCThree World Financial Center200 Vesey Street, 8th Floor
New York, New York 10281(212) 428-7940
GENERAL INFORMATION
The Trust Agreement
We will form a trust fund to hold the Assets and to issue the Certificates, each pursuant to theMulticlass Certificates Master Trust Agreement dated June 1, 2010 and a Terms Supplement dated theClosing Date (together, the “Trust Agreement”). We will act as Trustee and Administrator under theTrust Agreement.
You should refer to the Trust Agreement for a complete description of your rights and obligationsand those of Freddie Mac. You will acquire your Certificates subject to the terms and conditions of theTrust Agreement, including the Terms Supplement.
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Form of Certificates
The Regular Classes are issued, held and transferable on the Fed System. The Residual Classesare issued and held in certificated form and are transferable at the office of the Registrar.
Only a Fed Participant can be a Holder of a Regular Class. As an investor in Certificates, you arenot necessarily the Holder.
See Description of Certificates — Form, Holders and Payment Procedures in the OfferingCircular.
Denominations of Certificates
See Description of Certificates — Form, Holders and Payment Procedures in the OfferingCircular for the minimum denominations of the Classes.
Structure of Transaction
General
This Series has two Single-Tier REMIC Pools, structured as follows:REMIC Pool Classes Issued from REMIC Pool REMIC Pool Assets
A Group 1 Regular Classes and R Group 1 AssetsB Group 2 Regular Classes and RA Group 2 Assets
See Description of Certificates — REMIC Pool Structures in the Offering Circular.
The PC Assets
The PC Assets are Gold PCs and/or Gold Giant PCs.
The Multiclass Assets
The Multiclass Assets consist of previously issued Freddie Mac MACR Certificates and B fromthis Series, which represent interests in their underlying PCs.
For additional information about the Series 4196 Multiclass Assets, see the Multiclass AssetOffering Circular and other related information on our internet website. We have attached the frontcover, Terms Sheet and MACR table from the Multiclass Asset Offering Circular as an Exhibit to thisSupplement. Information relating to 4327-B from this Series is included in this Supplement.
There may have been material changes since we prepared the Multiclass Asset Offering Circular,including changes in prepayment rates, prevailing interest rates and other economic factors. Thesechanges may limit the usefulness of, and be inconsistent with the assumptions used in preparing, theMulticlass Asset Offering Circular.
The Mortgages
The Mortgages underlying the Assets (the “Mortgages”) are fixed-rate, first lien residentialmortgages and mortgage participations.
For purposes of this Supplement, we have made certain assumptions regarding the Mortgagesunderlying the PC Assets, as shown under Terms Sheet — Mortgage Characteristics. The weightedaverage remaining term to maturity, weighted average loan age and weighted average interest rate of
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the Mortgages underlying the Series 4196 Multiclass Assets, as of April 1, 2014, are shown underTerms Sheet — Mortgage Characteristics. However, the actual characteristics of most of theMortgages differ from those assumed or shown, perhaps significantly. This is the case even if theweighted average characteristics of the Mortgages are the same as those of mortgages having thecharacteristics assumed or shown.
The Assets are backed by High LTV Mortgages. A “High LTV Mortgage” is a Mortgage thathas a loan-to-value ratio at origination of greater than 105% and equal to or lower than 125% and maybe a fixed-rate Relief Refinance Mortgage originated under our Home Affordable Refinance Program.We pool High LTV Mortgages separately from our other Mortgages.
We may furnish some or all of the Assets from our own portfolio. Assets from our portfolio, orfrom other sources, may emphasize specific Mortgage characteristics, such as loan purpose, source oforigination, geographic distribution or loan size, or specific borrower characteristics, such as creditscore or equity in the property. You can obtain information about the underlying Mortgagecharacteristics for the Assets from our internet website.
PAYMENTS
Payment Dates; Record Dates
We make payments of principal and interest on the Certificates on each Payment Date, beginningin the month following the Closing Date. A “Payment Date” is the 15th of each month or, if the 15this not a Business Day, the next Business Day.
On each Payment Date, any payment on a Certificate is made to the Holder of record as of the endof the preceding calendar month.
Method of Payment
You will receive payments on your Certificates in the manner described under Description ofCertificates — Form, Holders and Payment Procedures in the Offering Circular.
Categories of Classes
For purposes of principal and interest payments, we have categorized the Classes as shown under“Principal Type” and “Interest Type” on the front cover. Appendix II to the Offering Circular explainsthe abbreviations used for categories of Classes.
Interest
We pay 30 days’ interest on each Payment Date to the Holders of each Class on which interest hasaccrued, except that the Accrual Class receives payments as described below. We calculate eachinterest payment on the outstanding balance of the Class immediately before the Payment Date and onthe basis of a 360-day year of twelve 30-day months.
Accrual Period
The “Accrual Period” for each Payment Date is the preceding calendar month.
Fixed Rate Classes
The Fixed Rate Classes bear interest at the Class Coupons shown on the front cover.
S-8
Accrual Class
KZ is an Accrual Class. The Accrual Class does not receive interest payments; rather, interestaccrued on the Accrual Class during each Accrual Period is added to its principal amount on the relatedPayment Date. We pay principal on the Accrual Class, including accrued interest that has been addedto its principal amount, as described under Terms Sheet — Principal.
Principal
We pay principal on each Payment Date to the Holders of the Classes on which principal is thendue. Holders receive principal payments on a pro rata basis among the Certificates of their Class.
Amount of Payments
The principal payments on the Certificates on each Payment Date equal:
• The amount of interest accrued on the Accrual Class during the related Accrual Period andnot payable as interest on that Payment Date (the “Accrual Amount”).
• The amount of principal required to be paid in the same month on the Assets of eachGroup (the “Group 1 Asset Principal Amount” and the “Group 2 Asset PrincipalAmount”).
Allocation of Payments
On each Payment Date, we pay the Accrual Amount and the Asset Principal Amounts for thatPayment Date as described under Terms Sheet — Principal. Principal allocable to the Classes receivingpayments from a particular Asset Group will be allocated only to those Classes and will not beavailable for Classes receiving payments from the other Asset Group.
Class Factors
General
We make Class Factors available on or about the fifth business day of each month after theClosing Date. See Description of Certificates — Payments — Class Factors in the Offering Circular.
Use of Factors
You can calculate principal and interest payments by using the Class Factors.
For example, the reduction (or for the Accrual Class, the increase) in the balance of a Certificatein February will equal its original balance times the difference between its January and February ClassFactors. The amount of interest to be paid on (or for the Accrual Class, added to the principal balanceof) a Certificate in February will equal 30 days’ interest at its Class Coupon, accrued during the relatedAccrual Period, on the balance of that Certificate determined by its January Class Factor.
Guarantees
We guarantee to each Holder of a Certificate the timely payment of interest at its Class Couponand the payment of its principal amount as described in this Supplement. See Description ofCertificates — Payments — Guarantees in the Offering Circular.
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1% Clean-up Call
We have a separate 1% Clean-up Call Right as to each REMIC Pool. If we exercise either suchright, all of the related Classes then outstanding will be paid in full and will retire. The Series 4196Multiclass Assets may become subject to the similar 1% Clean-up Call Right in their Series. SeeDescription of Certificates — Payments — 1% Clean-up Call in the Offering Circular.
Residual Proceeds
Upon surrender of their Certificates to the Registrar, the Holders of each Residual Class willreceive the proceeds of any remaining assets of the related REMIC Pool after all required principal andinterest payments on the Classes have been made. Any remaining assets are likely to be insignificant.See Description of Certificates — Payments — Residual Classes in the Offering Circular.
PREPAYMENT AND YIELD ANALYSIS
General
Mortgage Prepayments
The rates of principal payments on the Assets and the Certificates will depend on the rates ofprincipal payments, including prepayments, on the underlying Mortgages. The Mortgages are subjectto prepayment at any time without penalty. Mortgage prepayment rates fluctuate continuously and, insome market conditions, substantially. See Prepayment, Yield and Suitability Considerations —Prepayments in the Offering Circular for a discussion of Mortgage prepayment considerations andrisks.
High LTV Mortgages may have different prepayment and default characteristics than othermortgages. High loan-to-value ratios are frequently associated with a lower likelihood of voluntaryprepayment and a greater risk of default. However, at this time, we do not have sufficient informationto determine whether or how the prepayment and default characteristics of High LTV Mortgages willcompare with those of other mortgages over an extended period of time.
Yield
As an investor in the Certificates, your yield will depend on:
• Your purchase price.
• The rate of principal payments on the underlying Mortgages.
• The actual characteristics of the underlying Mortgages.
• The delay between each Accrual Period and the related Payment Date.
• If you own a Group 2 Class, the payment characteristics of the Multiclass Assets in theirown Series, as described in the Terms Sheet of the Multiclass Asset Offering Circular orthis Supplement, as applicable.
See Prepayment, Yield and Suitability Considerations — Yields in the Offering Circular for adiscussion of yield considerations and risks.
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Suitability
The Certificates may not be suitable investments for you. See Prepayment, Yield and SuitabilityConsiderations — Suitability in the Offering Circular for a discussion of suitability considerations andrisks.
Modeling Assumptions
To prepare the tables in this Supplement, we have made several assumptions. Unless otherwisenoted, each table employs the following assumptions (the “Modeling Assumptions”), among others:
• The Mortgages underlying the PC Assets have the characteristics shown under TermsSheet — Mortgage Characteristics.
• As of April 1, 2014, each Mortgage underlying the Series 4196 Multiclass Assets has aremaining term to maturity equal to the weighted average remaining term to maturity, aloan age equal to the weighted average loan age, and an interest rate equal to the weightedaverage interest rate, of all the Mortgages underlying the same PC.
• As of the Closing Date, the Assets have the balances shown under Terms Sheet — TheAssets.
• The Multiclass Assets receive payments as described in the Multiclass Asset OfferingCircular or this Supplement, as applicable.
• The Classes and Assets always receive payments on the 15th of the month, whether or nota Business Day.
• We do not exercise our 1% Clean-up Call Right.
The Modeling Assumptions, like any other stated assumptions, are likely to differ from actualexperience in many cases. For example, the Mortgages have characteristics more diverse than thoseassumed, many Payment Dates will occur on a Business Day after the dates assumed and we mayexercise our 1% Clean-up Call Right. Moreover, Mortgage prepayment rates will differ from thepercentages of PSA shown in the tables. These differences will affect the actual payment behavior,weighted average lives and yields of the Classes, perhaps significantly.
See Prepayment, Yield and Suitability Considerations — Tabular Information in Supplements inthe Offering Circular for descriptions of weighted average life and yield calculations and the PSAprepayment model.
Prepayment and Weighted Average Life Considerations
Accretion Directed Class
Payments of principal on the Accretion Directed Class should be stable under relatively slowprepayment scenarios because the Accrual Amount will be dedicated to making principal payments onthat Class until it retires. The weighted average life of the Accretion Directed Class cannot exceed itsweighted average life as shown in the following table under any prepayment scenario, even a scenariowhere there are no prepayments. Based on the Modeling Assumptions, the Accretion Directed Classwould retire on, but not before, its Final Payment Date if the underlying Mortgages were to prepay atany constant rate at or below the rate shown for that Class until it retires.
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The principal payment stability of the Accretion Directed Class is supported primarily by itsreceipt of the Accrual Amount. It is protected against early retirement by the Classes shown in thetable below. When those Classes retire, however, the Accretion Directed Class, if outstanding, willbecome sensitive to Mortgage prepayments and may retire before its Final Payment Date.
Accretion Directed Class
Class
Maximum WeightedAverage Life
(in years) Final Payment DatePrepayment Rate
at or below Protected By
KV . . . . 7.0 March 15, 2027 114% PSA The Classes in either of Series 4196 orthis Series that must retire before theGroup 2 Assets begin to reduce
The underlying Mortgages have characteristics that differ from the Modeling Assumptions. As aresult, even if the Mortgages prepay at a rate at or somewhat below the rate shown for the AccretionDirected Class, that Class could retire before its Final Payment Date and its weighted average lifecould shorten.
Sequential Pay Classes
The Sequential Pay Classes receive principal payments from their related Assets in a prescribedsequence.
The Multiclass Assets
The Group 2 Assets consist of Sequential Pay Classes, including B from this Series. TheseSequential Pay Classes receive principal payments from their related Assets in a prescribed sequencewith other Classes in their Series.
See Prepayment and Yield Analysis in the Multiclass Asset Offering Circular and thisSupplement.
Declining Balances Table
The following table shows:
• Percentages of original balances (as of the Closing Date) that would be outstanding aftereach of the Payment Dates shown at various percentages of PSA.
• Corresponding weighted average lives.
We have prepared this table using the Modeling Assumptions. However, for 0% PSA (except inthe case of Group 2) we have assumed that each Mortgage underlying the PC Assets has (a) an interestrate 2.5% higher than that of the related PCs and (b) a remaining term to maturity of 360 months and aloan age of 0 months.
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Percentages of Original Balances Outstanding* and Weighted Average Lives
Group 1
A B Group 1 AssetsPSA Prepayment Assumption PSA Prepayment Assumption PSA Prepayment Assumption
Date 0% 100% 165% 300% 400% 0% 100% 165% 300% 400% 0% 100% 165% 300% 400%
Closing Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100April 15, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 91 86 77 71 100 100 100 100 100 99 93 90 84 79April 15, 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 81 72 55 43 100 100 100 100 100 98 86 80 67 59April 15, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 71 59 36 22 100 100 100 100 100 96 79 70 54 44April 15, 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 62 47 21 6 100 100 100 100 100 95 73 62 43 32April 15, 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 54 37 9 0 100 100 100 100 87 94 67 54 35 24April 15, 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 46 28 0 0 100 100 100 99 64 92 61 48 28 18April 15, 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 39 19 0 0 100 100 100 79 47 90 56 42 22 13April 15, 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 32 12 0 0 100 100 100 63 35 89 51 36 17 10April 15, 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 25 6 0 0 100 100 100 50 26 87 46 32 14 7April 15, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 19 0 0 0 100 100 99 39 19 85 42 28 11 5April 15, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 14 0 0 0 100 100 86 31 14 83 38 24 9 4April 15, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 9 0 0 0 100 100 74 24 10 80 34 21 7 3April 15, 2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 4 0 0 0 100 100 64 19 7 78 31 18 5 2April 15, 2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 0 0 0 0 100 98 55 15 5 75 27 15 4 1April 15, 2029 . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 0 0 0 0 100 87 47 12 4 73 24 13 3 1April 15, 2030 . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 0 0 0 0 100 77 39 9 3 70 21 11 2 1April 15, 2031 . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 0 0 0 0 100 68 33 7 2 66 19 9 2 1April 15, 2032 . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 0 0 0 0 100 59 28 5 1 63 16 8 1 0April 15, 2033 . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 0 0 0 0 100 50 23 4 1 59 14 6 1 0April 15, 2034 . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 0 0 0 0 100 43 18 3 1 56 12 5 1 0April 15, 2035 . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 0 0 0 0 100 36 15 2 0 52 10 4 1 0April 15, 2036 . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 0 0 0 0 100 29 12 1 0 47 8 3 0 0April 15, 2037 . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 0 0 0 0 100 23 9 1 0 43 6 2 0 0April 15, 2038 . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 0 0 0 0 100 17 6 1 0 38 5 2 0 0April 15, 2039 . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 0 0 0 0 100 12 4 0 0 32 3 1 0 0April 15, 2040 . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 0 0 0 96 7 2 0 0 27 2 1 0 0April 15, 2041 . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 0 0 0 74 2 1 0 0 21 1 0 0 0April 15, 2042 . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 0 0 0 51 0 0 0 0 14 0 0 0 0April 15, 2043 . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 0 0 0 26 0 0 0 0 7 0 0 0 0April 15, 2044 . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Weighted AverageLife (Years) . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.3 6.0 4.1 2.5 1.9 28.0 19.6 15.6 10.1 7.8 19.6 9.7 7.3 4.6 3.5
Group 2
KV KZ Group 2 AssetsPSA Prepayment Assumption PSA Prepayment Assumption PSA Prepayment Assumption
Date 0% 100% 165% 300% 400% 0% 100% 165% 300% 400% 0% 100% 165% 300% 400%
Closing Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100April 15, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 94 94 94 94 104 104 104 104 104 100 100 100 100 100April 15, 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 88 88 88 88 108 108 108 108 108 100 100 100 100 100April 15, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 81 81 81 81 113 113 113 113 113 100 100 100 100 100April 15, 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 74 74 74 74 117 117 117 117 117 100 100 100 100 100April 15, 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 67 67 67 40 122 122 122 122 122 100 100 100 100 89April 15, 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 60 60 58 0 127 127 127 127 115 100 100 100 99 69April 15, 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 52 52 10 0 132 132 132 132 85 100 100 100 83 51April 15, 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 44 44 0 0 138 138 138 113 63 100 100 100 68 38April 15, 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 36 36 0 0 143 143 143 90 46 100 100 100 54 28April 15, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 27 26 0 0 149 149 149 71 34 100 100 99 42 20April 15, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 18 0 0 0 155 155 148 56 25 100 100 89 34 15April 15, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 9 0 0 0 161 161 132 44 18 100 100 79 26 11April 15, 2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 0 0 0 167 167 115 35 13 100 100 69 21 8April 15, 2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 0 0 0 167 165 98 27 9 100 99 59 16 6April 15, 2029 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 0 0 0 167 150 84 21 7 100 90 50 12 4April 15, 2030 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 0 0 0 167 136 71 16 5 100 81 42 10 3April 15, 2031 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 0 0 0 167 122 60 12 3 100 73 36 7 2April 15, 2032 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 0 0 0 167 106 50 9 2 100 63 30 6 1April 15, 2033 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 0 0 0 167 91 41 7 2 100 55 25 4 1April 15, 2034 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 0 0 0 167 78 34 5 1 100 46 20 3 1April 15, 2035 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 0 0 0 167 65 27 4 1 100 39 16 2 0April 15, 2036 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 0 0 0 167 53 21 3 1 100 32 13 2 0April 15, 2037 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 0 0 0 159 42 16 2 0 95 25 10 1 0April 15, 2038 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 0 0 0 133 32 12 1 0 80 19 7 1 0April 15, 2039 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 0 0 0 105 23 8 1 0 63 14 5 0 0April 15, 2040 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 0 0 0 69 14 5 0 0 41 8 3 0 0April 15, 2041 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 0 0 0 31 6 2 0 0 19 4 1 0 0April 15, 2042 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 0 0 0 6 1 0 0 0 4 1 0 0 0April 15, 2043 and after . . . . . . . . . . . . . . . . . . . . . 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Weighted AverageLife (Years) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.0 7.0 6.7 5.2 4.3 25.5 20.0 16.5 11.4 8.9 25.5 20.0 16.0 10.4 8.0
* Rounded to nearest whole percentage.
S-13
FINAL PAYMENT DATES
The Final Payment Date for each Class is the latest date by which it will be paid in full and willretire. We calculate Final Payment Dates using highly conservative assumptions. The actual retirementof each Class may occur earlier than its Final Payment Date.
CERTAIN FEDERAL INCOME TAX CONSEQUENCES
General
Any discussion of tax matters herein and in the Offering Circular was not intended or written tobe used, and cannot be used, by any person for the purpose of avoiding tax penalties that may beimposed on such person. Such discussion was written to support the promotion and marketing of theCertificates. Investors should consult their own independent tax advisors regarding the Certificates andeach investor’s particular circumstances.
Subject to the assumptions described under Certain Federal Income Tax Consequences — REMICElection in the Offering Circular, the REMIC Pools will each qualify as a REMIC for federal incometax purposes.
Regular Classes
The Regular Classes are “regular interests” in the related REMIC Pool. See GeneralInformation —Structure of Transaction. They are treated as debt instruments for federal income taxpurposes and may be issued with original issue discount (“OID”) or at a premium. Based in part oninformation provided by the Underwriter regarding the initial prices at which it would have expected tosell or will sell substantial portions of the Regular Classes, we expect to report income to the InternalRevenue Service and to Holders of the Regular Classes assuming they are issued as follows:
• OID: KZ.
• De Minimis OID: B.
• Premium: A and KV.
OID generally results in recognition of taxable income in advance of the receipt of cashattributable to that income. The Pricing Speed used for OID and premium calculations is 165% PSA.See Certain Federal Income Tax Consequences — Taxation of Regular Classes — Original IssueDiscount and — Premium in the Offering Circular. Mortgage prepayment rates will differ, perhapssignificantly, from the Pricing Speed.
The Assets are backed by High LTV Mortgages. Special tax considerations may apply to a realestate investment trust (“REIT”) that holds Regular Classes backed by High LTV Mortgages.Accordingly, we may be obligated to provide additional information, pursuant to regulations underCode Section 6049, on such Regular Classes. See Certain Federal Income Tax Consequences — Statusof REMIC Certificates in the Offering Circular.
Residual Classes
Each Residual Class is the “residual interest” in its related REMIC Pool. See GeneralInformation — Structure of Transaction. Special tax considerations apply to the Residual Classes. Thetaxation of the Residual Classes can produce a significantly less favorable after-tax return than if(a) the Residual Classes were taxable as debt instruments or (b) no portion of the taxable income on the
S-14
Residual Classes were treated as “excess inclusions.” In certain periods, taxable income and theresulting tax liability on a Residual Class may exceed any payments on that Class. See Certain FederalIncome Tax Consequences — Taxation of Residual Classes in the Offering Circular.
A substantial tax may be imposed on certain transferors of a Residual Class and certain beneficialowners of a Residual Class that are “pass-through entities.” See Certain Federal Income TaxConsequences — Transfers of Interests in a Residual Class — Disqualified Organizations in theOffering Circular. You should not purchase a Residual Class before consulting your tax advisor.
We intend to report accruals of OID and market discount and to amortize premium with respect tothe Series 4196 Multiclass Assets using the Pricing Speed shown above, regardless of the PricingSpeed used in their Series.
Certain Transfers of Residual Classes
The REMIC Regulations disregard:
1. A transfer of a “noneconomic residual interest” unless no significant purpose of the transfer isto impede the assessment or collection of tax.
2. Except in certain cases, a transfer of a residual interest to a foreign investor or a transfer of aresidual interest from a foreign investor to a U.S. investor. Accordingly, the Trust Agreementprohibits the transfer of an interest in a Residual Class to or from a foreign investor withoutour written consent.
See Certain Federal Income Tax Consequences — Transfers of Interests in a Residual Class —Additional Transfer Restrictions in the Offering Circular. In the case of a transfer that is disregarded,the transferor would continue to be treated as the owner of the residual interest and thus wouldcontinue to be subject to tax on its allocable portion of the net income of the REMIC.
Foreign Account Tax Compliance Act
Investors should be aware that under legislation enacted in 2010 and related administrativeguidance (commonly known as “FATCA”), certain payments in respect of Regular Classes after June30, 2014 and payments of the gross proceeds from the sale or other disposition of such Classes afterDecember 31, 2016 received by a non-U.S. entity may be subject to withholding of U.S. federalincome tax at a rate of 30 percent if such non-U.S. entity fails to take the required steps to providecertain information regarding its “United States accounts” or its direct or indirect “substantial U.S.owners.” The required steps and the information to be provided will depend on whether the non-U.S.entity is considered a “foreign financial institution” for this purpose, and if an intergovernmentalagreement exists between the United States and an applicable foreign country that may modify theapplicable requirements.
FATCA applies to debt instruments issued after June 30, 2014. Investors should consult their taxadvisors regarding the potential application and impact of the FATCA withholding rules based on theirparticular circumstances, including the applicability of any intergovernmental agreement modifyingthese rules and the grandfathering rules for debt instruments.
ERISA CONSIDERATIONS
Fiduciaries of employee benefit plans should review ERISA Considerations in the OfferingCircular.
S-15
ACCOUNTING CONSIDERATIONS
You should consult your accountant for advice on the appropriate accounting treatment for yourCertificates. See Accounting Considerations in the Offering Circular.
LEGAL INVESTMENT CONSIDERATIONS
You should consult your legal advisor to determine whether the Certificates are a legal investmentfor you and whether you can use the Certificates as collateral for borrowings. See Legal InvestmentConsiderations in the Offering Circular.
PLAN OF DISTRIBUTION
Under an agreement with the Underwriter, we have agreed to sell all of the REMIC Certificates tothe Underwriter in exchange for the Assets.
The Underwriter is offering the Certificates (other than B, which is included in the Group 2Assets) to the public in negotiated transactions at varying prices to be determined at the time of sale,plus accrued interest on each interest-bearing Class from the first day of its initial Accrual Period. TheUnderwriter is offering the Certificates subject to their issuance by us and subject to the Underwriter’sright to reject any order. The Underwriter may make sales to or through securities dealers. The dealersmay receive compensation in the form of discounts, concessions or commissions from the Underwriterand commissions from any purchasers for which they act as agents.
Our agreement with the Underwriter provides that we will indemnify it against certain liabilities.
LEGAL MATTERS
Our General Counsel or one of our Deputy General Counsels will render an opinion on thelegality of the Certificates. Cleary Gottlieb Steen & Hamilton LLP is representing the Underwriter onlegal matters concerning the Certificates.
S-16
Offering Circular Supplement(To Offering CircularDated June 1, 2010)
$186,893,964
Freddie MacMulticlass Certificates, Series 4196
Offered Classes: REMIC Classes shown below and MACR Class shown on Appendix A
Offering Terms: The underwriter named below is offering the Classes in negotiated transactions at varyingprices; we have agreed to purchase all of AI
Closing Date: April 30, 2013
REMICClasses
OriginalBalance
PrincipalType(1)
ClassCoupon
InterestType(1)
CUSIPNumber Final Payment Date
Group 1HF . . . . . . . . . . . . . . . . . . . $48,626,932 SC/PT/SUP (2) FLT 3137B1BK7 March 15, 2043HS . . . . . . . . . . . . . . . . . . . 40,522,445 SC/PT/SUP (2) INV/S 3137B1BL5 March 15, 2043Group 2AB . . . . . . . . . . . . . . . . . . . 50,000,000 PT 1.25% FIX 3137B1BG6 April 15, 2028AI . . . . . . . . . . . . . . . . . . . 32,142,857 NTL(PT) 3.5 FIX/IO 3137B1BH4 April 15, 2028Group 3A . . . . . . . . . . . . . . . . . . . 38,195,670 SEQ 4.0 FIX 3137B1BF8 June 15, 2040VA . . . . . . . . . . . . . . . . . . . 4,774,459 AD/SEQ 4.0 FIX 3137B1BP6 September 15, 2030VZ . . . . . . . . . . . . . . . . . . . 4,774,458 SEQ 4.0 FIX/Z 3137B1BQ4 April 15, 2043ResidualR . . . . . . . . . . . . . . . . . . . 0 NPR 0.0 NPR 3137B1BM3 April 15, 2043
(1) See Appendix II to the Offering Circular.(2) See Terms Sheet — Interest.
The Certificates may not be suitable investments for you. You should not purchase Certificates unless you havecarefully considered and are able to bear the associated prepayment, interest rate, yield and market risks ofinvesting in them. Certain Risk Considerations on page S-2 highlights some of these risks.
You should purchase Certificates only if you have read and understood this Supplement, the attached OfferingCircular and the documents identified under Available Information.
We guarantee principal and interest payments on the Certificates. These payments are not guaranteed by, andare not debts or obligations of, the United States or any federal agency or instrumentality other than FreddieMac. The Certificates are not tax-exempt. Because of applicable securities law exemptions, we have notregistered the Certificates with any federal or state securities commission. No securities commission hasreviewed this Supplement.
April 3, 2013
Exhibit I — Series 4196 Front Cover, Terms Sheet and MACR Table
I-1
TERMS SHEET
This Terms Sheet contains selected information about this Series. You should refer to theremainder of this Supplement for further information.
In this Supplement, we refer to Classes only by their letter designations. For example, “R” refersto the R Class of this Series.
Payment Dates
We make payments of principal and interest on the Certificates on each monthly Payment Datebeginning in May 2013.
Form of Classes
Regular and MACR Classes: Book-entry on Fed System
Residual Class: Certificated
Interest
The Fixed Rate Classes bear interest at the Class Coupons shown on the front cover andAppendix A.
The Floating Rate and Inverse Floating Rate Classes bear interest as shown in the following table.The initial Class Coupons apply only to the first Accrual Period. We determine LIBOR using the BBAMethod.
ClassInitial Class
Coupon Class Coupon FormulaClass Coupon Subject to
Minimum Rate Maximum Rate
HF . . . . . . . . . . . . . . . . 1.2047% LIBOR + 1.0% 1.0% 5.5%HS . . . . . . . . . . . . . . . . 5.15436 5.4% � (LIBOR × 1.19999997) 0 5.4
See Appendix V to the Offering Circular and Payments — Interest.
Notional Class
ClassOriginal NotionalPrincipal Amount Reduces Proportionately With
AI $32,142,857 AB (PT)
See Payments — Interest — Notional Class.
MACR Class
This Series includes a MACR Class. Appendix A shows the characteristics of the MACR Classand the Combination of REMIC and MACR Classes.
See Appendix III to the Offering Circular for a description of MACR Certificates and exchangeprocedures and fees.
I-2
Principal
REMIC Classes
On each Payment Date, we pay:
Group 1
SC/Pass-Through/Support ⎧⎨⎩• The Group 1 Asset Principal Amount to HF and HS, pro rata, until retired
Group 2
Pass-Through ⎧⎨⎩• The Group 2 Asset Principal Amount to AB, until retired
Group 3
AccretionDirected andAccrual ⎧⎨⎩• The Accrual Amount to VA, until retired, and then to VZ
SequentialPay ⎧⎨⎩• The Group 3 Asset Principal Amount to A, VA and VZ, in that order, until retired
See Payments — Principal and Prepayment and Yield Analysis.
MACR Class
On each Payment Date when any outstanding MACR Certificates are entitled to principalpayments, we allocate such payments from the applicable REMIC Certificates to those MACRCertificates, as described under MACR Certificates in the Offering Circular.
REMIC Status
We will form a single REMIC Pool for this Series. We will elect to treat the REMIC Pool as aREMIC under the Code. R will be the “Residual Class” and the other Classes shown on the frontcover will be “Regular Classes.” The Residual Class will be subject to transfer restrictions. SeeCertain Federal Income Tax Consequences in this Supplement and the Offering Circular.
Weighted Average Lives (in years)*
Group 1PSA Prepayment Assumption
0% 100% 300% 466% 750% 1,000%
HF, HS and Group 1 Assets . . . . . . . . . . . . . 27.2 20.7 5.5 1.7 1.1 0.8
Group 2PSA Prepayment Assumption
0% 100% 355% 600% 800%
AB, AI and Group 2 Assets . . . . . . . . . . . . . . . . . . . . . 8.6 5.3 3.0 1.9 1.4
* We calculate weighted average lives based on the assumptions described in Prepayment and Yield Analysis. The actualweighted average lives are likely to differ from those shown, perhaps significantly.
I-3
Group 3PSA Prepayment Assumption
0% 100% 150% 300% 400%
A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.3 7.7 6.0 3.7 3.0B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28.6 22.8 19.5 12.4 9.7VA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.7 9.7 9.3 7.1 6.0VZ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28.6 22.8 20.1 13.7 11.0Group 3 Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.6 10.7 8.7 5.4 4.3
The Assets
The Group 1 Assets (the “Multiclass Assets”) consist of:
Class
Percentage ofClass in
This SeriesBalance inThis Series
Class Factorfor Month ofClosing Date
ClassCoupon
Principal/Interest Type Final Payment Date
4182-HA(1)(2) 96.7508547635% $89,149,377 0.99795596 3.0% SUP/FIX March 15, 2043
(1) MACR Class.(2) Backed by Super-Conforming Mortgages. See General Information — The Mortgages.
The Group 2 and 3 Assets (the “PC Assets”) consist of Freddie Mac PCs with the followingcharacteristics:
Group Principal BalanceOriginal Term
(in years) Interest Rate
2 $50,000,000 15 3.5%3* 47,744,587 30 4.0
* Backed by High LTV Mortgages. See General Information — The Mortgages.
We have agreed to sell the Group 2 Assets to the Underwriter for inclusion in this Series.
See General Information — Structure of Transaction and Exhibit I.
We will publish a Supplemental Statement applicable to this Series shortly after the Closing Date.The Supplemental Statement will contain a schedule of the Assets and other information. See AvailableInformation.
Mortgage Characteristics (as of April 1, 2013)
Multiclass Assets — Mortgage Characteristics
Series
Weighted AverageRemaining Term
to Maturity(in months)
Weighted AverageLoan Age
(in months)
Weighted AveragePer Annum
Interest Rate
Per AnnumInterest Rate
of Related PCs
4182 357 3 3.611% 3.0%
PC Assets — Assumed Mortgage Characteristics
Group Principal Balance
Remaining Termto Maturity(in months)
Loan Age(in months)
Per AnnumInterest Rate
Per AnnumInterest Rate
of Related PCs
2 $50,000,000 151 24 3.923% 3.5%3 47,744,587 355 2 4.380 4.0
The actual characteristics of the Mortgages differ from those shown, in some cases significantly.
See General Information — The Mortgages.
I-4
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I-5
If you intend to purchase Certificates, you shouldrely only on the information in this Supplementand the Offering Circular, including theinformation in the Incorporated Documents. Wehave not authorized anyone to provide you withdifferent information.
This Supplement, the Offering Circular and theIncorporated Documents may not be correctafter their dates.
We are not offering the Certificates in anyjurisdiction that prohibits their offer.
TABLE OF CONTENTSDescription Page
Offering Circular Supplement
Certain Risk Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-2Terms Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-3Available Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-6General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-6
The Trust Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-6Form of Certificates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-7Denominations of Certificates . . . . . . . . . . . . . . . . . . . . . . . . . S-7Structure of Transaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-7The Mortgages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-7
Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-8Payment Dates; Record Dates . . . . . . . . . . . . . . . . . . . . . . . . . S-8Method of Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-8Categories of Classes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-8Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-8Principal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-9Class Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-9Guarantees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-91% Clean-up Call . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-10Residual Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-10
Prepayment and Yield Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . S-10General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-10Prepayment and Weighted Average Life Considerations . . . . . . S-11Declining Balances Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-12
Final Payment Dates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-14Certain Federal Income Tax Consequences . . . . . . . . . . . . . . . . . . . S-14
General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-14Regular Classes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-14Residual Classes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-14Foreign Account Tax Compliance Act . . . . . . . . . . . . . . . . . . . S-15
ERISA Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-15Accounting Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-16Legal Investment Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . S-16Plan of Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-16Legal Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-16Exhibit I — Series 4196 Front Cover, Terms Sheet and
MACR Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-1
Offering Circular
Freddie Mac . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Additional Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Risk Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Application of Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20Description of Certificates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20MACR Certificates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33Prepayment, Yield and Suitability Considerations . . . . . . . . . . . . . . 33The Trust Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40Certain Federal Income Tax Consequences . . . . . . . . . . . . . . . . . . . 44ERISA Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60Accounting Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61Legal Investment Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . 61Plan of Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61Increase in Size . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62Appendix I — Index of Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-1Appendix II — Standard Definitions and Abbreviations for
Classes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-1Appendix III — MACR Certificate Exchanges . . . . . . . . . . . . . . . . III-1Appendix IV — Retail Class Principal Payments . . . . . . . . . . . . . . . IV-1Appendix V — Interest Rate Indices . . . . . . . . . . . . . . . . . . . . . . . . V-1
$205,854,619
Freddie MacMulticlass Certificates,
Series 4327
March 20, 2014
