FREDDIE MAC

TECHNOLOGY | CULTURE | BUSINESS
CANDIDATES | SAMPLE JOB LISTINGS | ARTICLES

TECHNOLOGY OVERVIEW

Freddie Mac has an IBM 3090 mainframe, more than 350 Sun Solaris servers, 125 NT servers, and 90 Novell servers. Languages used include C, C++, COBOL, Java, Perl, AWK (an interpretive language used with UNIX), Visual Basic, PeopleSoft, SAS, Stata, XML, Focus, and Shell. Additional software used includes Crystal Reports, SAP, Sybase, Oracle, Paradox, MS-Access, and Lotus Notes. Additional software tools used include Harvest, Rational Rose, Web Gain Studio, Sapient Framework, Patrol, and Autosys.

Communications gear and software used at Freddie Mac includes Cisco routers, NQ Series, Network File System, Domain Name System, Token Ring and Ethernet protocols, Dynamic Host Configuration Protocol and SCSI buses. Other hardware and software includes hand scanners, wireless technology, and speech recognition.

An example of Freddie Mac's technology projects was the development of an Internet-based version of its automated underwriting system, Loan Prospector. Loan Prospector uses statistical computer modeling of traditional underwriting factors and a link to credit agencies to determine a mortgage score. Lenders can enter key information to determine, in a few minutes, whether a loan application should be approved quickly, or if more information is needed to approve the borrower, simplifying a process that used to take several days.

CULTURE OVERVIEW

Freddie Mac observes 10 holidays and offers employees 8 sick days. Employees earn 10 standard days of vacation and may take up to 25 days, buying days they need or selling unused days. Medical insurance options include preferred provider organizations (PPOS) and health maintenance organizations (HMOs). Dental and vision care are available, as is domestic partner health care coverage. Home and regional offices may have their workstation sites evaluated for ergonomic considerations. The company offers health care and dependent care pre-tax accounts. Additional insurance plans available include short-term and long-term disability, life, business travel, and accidental death and dismemberment.

A 401(k) plan includes a company-matching contribution. Employees may purchase company stock at a 15 percent discount and are eligible to receive annual bonuses. Interest-free loans are available to buy computers. Subsidized childcare is available at nearby childcare centers, as well as emergency back up care. Adoption expenses are reimbursed. The Educational Assistance Program reimburses employees for completing college, university, or professional certification courses. Headquarters has an onsite fitness center, a convenience store where evening meals can be ordered in advance for pick up, dry cleaning services, a library, mail services, film drop-off, and a cafeteria serving two meals a day. Free coffee and sodas are available all day throughout the company's offices. Parking is free. Wellness credits, earned through not smoking and having blood pressure and cholesterol rates monitored, can be converted to cash or other benefits, such as extra vacation. There is a bonus for employee referrals. Employees who bring in new employees are also eligible for an employee referral award and drawing. Recent prizes have included an all-expenses-paid one-week trip anywhere in the world, and a fully-loaded Volkswagen Bug.

Dress is business casual. Headquarters is a three-building suburban campus, with two of the buildings connected by breezeways. Employee work sites range from cubicles to private offices. All have ergonomic chairs. Hours are flexible, with core hours. Travel represents less than five percent of an employee's time. Telecommuting options are available and commuting vans are common, as some employees commute from Dale City, Virginia, or Annapolis or Baltimore, Maryland. There have been no layoffs, but hiring has slowed somewhat this year.

BUSINESS OVERVIEW

SSome interesting facts, according to Freddie Mac research:

• The lowest mortgage rate ever was 6.49 percent, the week of October 10, 1998
• The highest was 18.63 percent, the week of October 9, 1981.
• Freddie Mac buys a mortgage every five seconds.

The secondary mortgage market was designed to reduce regional differences in loan rates. In 1970, when Freddie Mac was chartered, mortgage rates differed by up to 1.7 percent across the country. Now, they vary by only 0.1 percent. This stability helps reduce mortgage loan rates to homeowners.

Freddie Mac’s business activity increases access to mortgages, by allowing lending institutions to re-capture their capital and loan it out to additional homeowners. Competitors include Fannie Mae, also a government-chartered organization with a mission to improve the secondary mortgage market.

Some notable technology achievements:

• Freddie Mac purchased the first electronic mortgage available under new federal guidelines published in the Electronic Signatures in Global and National Commerce Act (E-SIGN).
• Freddie Mac was the first corporation to market bonds over the Internet.

On a more serious note, after the September 11, 2001 tragedies, the company announced a "Peace of Mind Plan" to ensure that no homeowners directly impacted by the tragedies with Freddie Mac mortgages would lose their homes as a result of the attacks.

Freddie Mac's community focus is shown in its record as one of the largest corporate funders in the Washington, DC region. Over the past decade, Freddie Mac philanthropy has topped $100 million. In addition, it offers an extensive volunteer program for employees. Among the organizations supported by Freddie Mac’s giving and employee volunteerism are Habitat for Humanity, Healthy Families America (a child abuse prevention program), Wednesday's Child (finding homes for children in foster care), and partnerships with several local elementary schools.

CANDIDATES

There are 1,009 technical professionals at Freddie Mac. Most work at the McLean, Virginia headquarters or Reston, Virginia office, with a few technical positions in the five regional offices in Dallas, Texas; Atlanta, Georgia; New York City; Chicago, Illinois; and Los Angeles, California. Technical professionals work in the Information Systems Services (ISS) and Technology Infrastructure & Operations (TIO) departments, as well as in all the company's major divisions. TIO is responsible for network operations, data architecture, and strategy engineering and integration and has a six-month program that allows entry-level employees to rotate assignments within the department to select the area they want to work in.

Careers at Freddie Mac include both technical and management positions. A background in business and/or finance is extremely valuable.

Freddie Mac hired 200 technical professionals in 2000 and expects to hire just under that in the next year. Turnover is 4.4%. Freddie Mac has an active college recruiting program and is maintaining its recruiting schedule this year for technical candidates at the University of Virginia, James Madison University, George Mason, the University of Maryland, Howard University, Virginia Tech, and Morgan State. The company has an 11-week training program for Liberal Arts graduates and a strong internship program. Candidates are found through Internet postings (36%), employee referrals (34%), college recruiting (6%), job fairs (2%), and advertisements (1%).

Freddie Mac looks for candidates who excel in a fast-paced environment, who are flexible and can work on multiple projects, and who are customer-focused. Entry-level candidates are given a programming aptitude test. They should have good analytical and problem-solving skills and excellent communication skills. A Bachelor's degree is preferred, with majors in Computer Science, Liberal Arts, or Business Administration.

ARTICLES

Computerworld, "Hire Callings," September 24, 2001

Interactive Week, "Freddie, Fannie Agree to XML Standard,"June 18, 2001

Washingtonian, "Great Places to Work," October, 2001

Washington Post, "Coaxing Staffers to Aim Hire," December 7, 1999

Washington Post, "Freddie Mac Giving Employees a Chance to Change Fields," April 8, 2001

The Wall Street Journal, "Why Big Lenders Are So Afraid of Fannie Mae and Freddie Mac," April 5, 2001