Exhibit 18.1
Board of Directors
Freddie Mac
8200 Jones Branch Drive MS 200
Dear Directors:
We are providing this letter to you for inclusion as an exhibit
to your
Form 10-Q
filing pursuant to Item 601 of
Regulation S-K.
We have been provided a copy of
the Company’s Quarterly
Report on
Form 10-Q
for the period ended
March 31, 2010. Note 2: Change in
Accounting Principles therein describes a change in accounting
principle for amortizing deferred items related to mortgage
loans and investments in securities from an effective interest
method over the estimated life of these assets to an effective
interest method over the contractual lives of these assets as
described in
ASC 310-20-35.
It should be understood that the preferability of one acceptable
method of accounting over another for calculating the effective
yield under the interest method has not been addressed in any
authoritative accounting literature, and in expressing our
concurrence below we have relied on management’s
determination that this change in accounting principle is
preferable. Based on our reading of management’s stated
reasons and justification for this change in accounting
principle in the
Form 10-Q,
and our discussions with management as to their judgment about
the relevant business planning factors relating to the change,
we concur with management that such change represents, in the
Company’s circumstances, the adoption of a preferable
accounting principle in conformity with Accounting Standards
Codification 250, Accounting Changes and Error Corrections.
We have not audited any financial statements of
the Company as
of any date or for any period subsequent to
December 31,
2009. Accordingly, we will inform you should other matters come
to our attention during the completion of an audit of the
financial statements covering the period of the accounting
change that would affect our conclusion.
Very truly yours,
/s/ PricewaterhouseCoopers
LLP
PricewaterhouseCoopers LLP
McLean, Virginia
