Second Quarter 2020 

Financial Results Supplement

July 30, 2020
Ä Freddie Mac 2

Adjusted Net Interest Income 

and Adjusted Guarantee Fee Income 

$ Billions

Comprehensive Income

$ Billions

2Q19 3Q19 4Q19 1Q20 2Q20

$1.8 $1.8

$2.4

$0.6

$1.9

Adjusted net interest income Adjusted guarantee fee income

2Q19 3Q19 4Q19 1Q20 2Q20

$1.0

$0.8 $0.7$0.8

$0.4

$2.2

$2.4 $2.4

$2.5

$3.0

Financial Highlights

Note: Totals may not add due to rounding.

Ä Comprehensive income of $1.9 billion, up $1.3

billion from the prior quarter, driven by:

Å Higher investment gains of $1.2 billion, aftertax, primarily due to higher quoted spreads in

the Multifamily business resulting in higher

margins combined with fair value gains due to

improved spreads;

Å Lower credit-related expense of $0.3 billion,

after-tax, primarily reflecting updated estimates

of current expected credit losses in the second

quarter; and

Å Higher combined net interest income and

guarantee fee income of $0.1 billion, after-tax.

1 1

Ä Adjusted net interest income decreased from

the prior quarter, primarily driven by higher loan

prepayments that resulted in an increase in

amortization expense combined with the

additional expense from payments to security

holders for the full monthly coupon rate when

loans pay off mid-month. In addition, the custodial

trust account balance increased due to higher

loan prepayments and earned a minimal yield due

to historically low interest rates.

Å Adjusted guarantee fee income increased from

the prior quarter, due to increased upfront fee

amortization income (net of the hedging impact),

driven by higher loan prepayments compared to

the prior quarter.
Ä Freddie Mac 3

Mortgage-related investments portfolio

Other investments portfolio

06/30/19 09/30/19 12/31/19 03/31/20 06/30/20

$219 $222 $213 $211 $194

$83

$302

$90

$312

$103

$316

$123

$334

$155

$349

Single-Family credit guarantee portfolio

Multifamily guarantee portfolio

06/30/19 09/30/19 12/31/19 03/31/20 06/30/20

$1,935 $1,961 $1,994 $2,020 $2,061

$249

$2,184

$260

$2,221

$271

$2,265

$275

$2,295

$281

$2,342

Total Portfolio Balances

Total guarantee portfolio Portfolio balance highlights 2

$ Billions

Å Total guarantee portfolio: 

Ç Single-Family - grew $126 billion, or 7%, year-overyear.

Ç Multifamily - grew $32 billion, or 13%, year-overyear.

Å Total investments portfolio:

Ç Mortgage-related investments portfolio - decreased

$25 billion, or 11%, year-over-year.

Note: Totals may not add due to rounding.

*In February 2019, FHFA instructed the company to maintain the mortgage-related investments portfolio at or below $225 billion at all times. 

7% YoY 

increase

16% YoY

increase 

Total investments portfolio

$ Billions

FHFA 

Limit 

$225B* 

3

2,4

Total debt outstanding4,6

$ Billions

Discount notes Callable debt

Non-callable debt Other

Weighted average maturity in years

06/30/19 09/30/19 12/31/19 03/31/20 06/30/20

13% 16% 22% 20% 20%

47% 38% 35% 30% 30%

34% 40% 37% 45% 45%

6% 6% 6% 5% 5%

2.6 2.5 2.4 2.4 2.5

$270 $274 $273

Purchase Agreement

 Debt Cap $300B 

 $288 $289

5
Ä Freddie Mac 4

Multifamily(8) Single-Family(7)

Percentage of Loans in Forbearance

12/31/19 06/30/20

É%

2.4%

12/31/19 06/30/20

É%

3.8%

Percentage of loans in the single-family guarantee portfolio that were delinquent and in forbearance 

(based on loan count).

Percentage of loans in the multifamily mortgage portfolio that were in forbearance (based on UPB).
Ä Freddie Mac 5

Draws from Treasury Dividend payments to Treasury

2008-2017 2018 2019 2020 Cumulative

Total

$71.3

$0.3

$71.6

$112.4

$4.1 $3.1

$119.7

Conservatorship Matters and Total Equity

Treasury draws and dividend payments(9)

$ Billions

Note: Totals may not add due to rounding.

*As of June 30, 2020.

Ç Pursuant to the September 2019 Letter Agreement, the company will not have a dividend requirement on the senior preferred stock until its Net Worth Amount exceeds $20.0 billion. 

2017 2018 2019 YTD 2020*

$(0.3)

$4.5

$9.1

$11.4

Total equity / Net worth

$ Billions
Ä Freddie Mac 6

United States (Not Seasonally Adjusted)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

168

203

National house prices continued upward trend

Average monthly net new jobs (non-farm)

National unemployment rate (as of the last month in

each quarter)

2Q19 3Q19 4Q19 1Q20 2Q20

159,000 203,000 210,000

(303,000)

(4,429,000)

3.7% 3.5% 3.5% 4.4%

11.1%

Key Economic Indicators

National house prices increased by an average of 3.9%

over the past year 

Quarterly ending interest rates

Unemployment rate and job creation

Freddie Mac House Price Index (December 2000 = 100)

(2006 Peak)

30-year mortgage rate, based on Primary Mortgage

Market Survey (PMMS)

10-year LIBOR

06/30/19 09/30/19 12/31/19 03/31/20 06/30/20

3.73% 3.64% 3.74% 3.50%

3.13%

1.96%

1.57%

1.89%

0.72% 0.64%
Ä Freddie Mac 7

Home purchase UPB Refinance UPB

New Busn G-fee

2Q19 3Q19 4Q19 1Q20 2Q20

$65 $76 $63 $55 $60

$37

$102

$58

$134

$84

$147

$83

$138

$172

$232

44 45

48 49 48

Core single-family portfolio (loans originated after 2008)

Legacy and relief refinance single-family portfolio

2Q19 3Q19 4Q19 1Q20 2Q20

$1,613 $1,654 $1,701 $1,739 $1,794

$322

$1,935

$307

$1,961

$293

$1,994

$281

$2,020

$267

$2,061

Single-Family Guarantee 

Financial Highlights and Key Metrics

Credit guarantee portfolio

$ Billions

New business activity

$ Billions

Guarantee fees charged on new acquisitions (bps)10

Serious delinquency rates7

7% YoY 

increase

Note: Totals may not add due to rounding.

(83%) (84%) (85%) (86%) (87%)

2Q19 3Q19 4Q19 1Q20 2Q20

$955

$1,250

$1,420

$588

$753

Single-Family Guarantee Segment Earnings

$ Millions

Core single-family portfolio (loans originated after 2008)

Legacy and relief refinance single-family portfolio

Total

2Q19 3Q19 4Q19 1Q20 2Q20

0.23% 0.24% 0.26% 0.26%

1.95%

1.82% 1.77% 1.84% 1.79%

4.44%

0.63% 0.61% 0.63% 0.60%

2.48%
Ä Freddie Mac 8

2Q19 3Q19 4Q19 1Q20 2Q20

77% 77% 75% 74% 72%

2Q19 3Q19 4Q19 1Q20 2Q20

750 752 752 752

758

2Q19 3Q19 4Q19 1Q20 2Q20

14% 13% 13%14%

10%

Home purchase Cash-out refinance

Other refinance

Investment properties as a % of purchases

2Q19 3Q19 4Q19 1Q20 2Q20

64% 57% 43% 40% 26%

18% 16% 20% 21%

18%

18% 27% 37% 39% 56%

5% 4% 4% 5%

3%

Single-Family Guarantee 

Loan Purchase Credit Characteristics

Weighted average original loan-to-value ratio (OLTV)

New business activity with debt-to-income ratio > 45 % 

Weighted average original credit score

Loan purpose and investment properties as a

percentage of loan purchases

Investment properties as a

percentage of loan purchases
Ä Freddie Mac 9

Reference pool UPB at issuance

Reference pool UPB outstanding

2016 2017 2018 2019 YTD 2020*

$598

$858

$1,144

$1,376

$1,526

$457

$648

$838

$906 $896

26%

35%

44% 45%

43%

Single-Family Guarantee 

Credit Risk Transfer (CRT) Ä STACR / ACIS 

Total single-family credit guarantee portfolio with

transferred credit risk

$ Billions

Cumulative single-family transferred credit risk

based on outstanding balance at period end

$ Billions

First loss positions: Retained by Freddie Mac

Mezzanine loss positions: Retained by Freddie Mac

First loss positions: Transferred to third parties

Mezzanine loss positions: Transferred to third parties

06/30/19 09/30/19 12/31/19 03/31/20 06/30/20

$5.9 $6.0 $5.9 $6.2 $6.1

$1.3 $1.4 $1.1 $1.4 $1.0

$6.7 $7.3 $8.0 $9.3 $9.5

$28.1 $27.9 $26.9

$28.2

$24.6

*As of June 30, 2020.

Outstanding reference pool UPB as a

percentage of total single-family portfolio

Ç This slide reflects STACR and ACIS CRT transactions only. It excludes senior subordinate securitization structures and lender risk-sharing transactions.
Ä Freddie Mac 10

Ñ120% AMI >120% AMI

2016 2017 2018 2019 YTD 2020*

94% 91% 93% 94% 96%

6% 9% 7% 6% 4%

2Q19 3Q19 4Q19 1Q20 2Q20

69% 69% 69% 69% 69%

2Q19 3Q19 4Q19 1Q20 2Q20

1.31 1.34 1.32

1.42

1.36

Weighted average original loan-to-value ratio (OLTV)

for new business activity

Multifamily acquisitions of units by area median

income (AMI) (% of eligible units acquired)

Multifamily 

Financial Highlights and Key Metrics

Weighted average original debt service coverage

ratio (ODSCR) for new business activity

Multifamily comprehensive income (loss)

$ Millions

*As of June 30, 2020.

2Q19 3Q19 4Q19 1Q20 2Q20

$440

$591

$502

$(174)

$1,063

(89%)
Ä Freddie Mac 11

Multifamily securitization activity11,12

$ Billions

Primary securitization products

Other securitization products

2016 2017 2018 2019 YTD 2020*

$49.9

$60.7

$66.3 $67.9

$21.3

$2.2

$52.1

$6.8

$67.5 $6.5

$72.8

$7.5

$75.4

$3.4

$24.7

New loan purchase activity LIHTC new business activity

2016 2017 2018 2019 YTD 2020*

$56.8

$56.8

$73.2

$73.2

$77.5 $77.9

$30.1

$0.5

$78.0

$0.5

$78.4

$0.1

$30.2

Multifamily 

Key Metrics, continued

New business activity

$ Billions

Note: Totals may not add due to rounding.

*As of June 30, 2020.

Ç The multifamily loan purchase cap is $100.0 billion for the five-quarter period from the fourth

quarter of 2019 through the fourth quarter of 2020, and at least 37.5% must be missiondriven affordable housing. As of June 30, 2020, the total cumulative new business activity

subject to the cap was $47.6 billion, and approximately 40% was mission-driven affordable

housing. 
Ä Freddie Mac 12

12/31/16 12/31/17 12/31/18 12/31/19 06/30/20

17

21

24

27

28

Guarantee portfolio Mortgage-related securities

Unsecuritized loans and other

12/31/16 12/31/17 12/31/18 12/31/19 06/30/20

$158

$203

$237

$13 $271 $281

$7

$7

$6 $5

$42

$213 $39

$249 $36

$280 $33

$36

$322

Freddie Mac (60+ day) FDIC insured institutions (90+ day)

MF CMBS market (60+ day)

2Q16 2Q17 2Q18 2Q19 2Q20

0.10%

0.12%

1.56%

Multifamily market and Freddie Mac delinquency

rates8

Multifamily Portfolio Metrics

Total portfolio

$ Billions

51% increase 

since 2016

(74%) (82%)

Note: Totals may not add due to rounding.

1Q20

(85%) (88%) (88%)

$309

12/31/16 12/31/17 12/31/18 12/31/19 06/30/20

3,404

3,946

4,289 4,305 4,371

Total portfolio unit count

In Thousands

Total portfolio loan count

In Thousands

$321
Ä Freddie Mac 13

Capital Markets investments portfolio 

$ Billions

Mortgage investments portfolio

Other investments portfolio

2Q19 3Q19 4Q19 1Q20 2Q20

$173 $171 $168 $171 $147

$81

$254

$87

$258

$100

$268

$120

$291

$152

$299

Capital Markets cash window securitization

$ Billions

Capital Markets comprehensive income

$ Millions 

2Q19 3Q19 4Q19 1Q20 2Q20

$433

$10

$539

$210

$124

2Q19 3Q19 4Q19 1Q20 2Q20

$45

$59

$73

$59

$130

Liquid Securitization pipeline

Less liquid

2Q19 3Q19 4Q19 1Q20 2Q20

$118 $116 $119 $116 $84

$16 $21 $19 $26

$35

$39 $34 $30 $28

$27

$173 $171 $168 $171

$147

Capital Markets 

Financial Highlights and Key Metrics

Capital Markets mortgage investments portfolio

$ Billions

15% YoY

Decrease

(68%) (68%) (71%) (68%)

Note: Totals may not add due to rounding.

(57%) 

18% YoY

increase

$269
Ä Freddie Mac 14

Number of single-family loan workouts14

In Thousands

 Housing Market Support

Loan modifications

Repayment plans

Forbearance agreements

Short sales and deed-in-lieu

of foreclosure transactions

2017 2018 2019 YTD 2019* YTD 2020*

45

60

29

17 12

10

11

9

4

5

15

16

7

4

105

122

5

75

3

90

2

47

1

26

Multifamily rental units

Single-Family purchase borrowers

Single-Family refinance borrowers

2017 2018 2019 YTD 2019* YTD 2020*

820 866 809

342 313

828

884 987

445 435

663

2,311

442

2,192

782

2,578

257

1,044

918

1,666

Number of families Freddie Mac helped 

to own or rent a home13

In Thousands

Note: Totals may not add due to rounding.

*As of June 30.

Home

Retention

Actions

Foreclosure

Alternatives

15

15

15

15
Ä Freddie Mac 15

Endnotes

1 For additional information regarding Freddie MacÖs non-GAAP financial measures and reconciliations to the comparable amounts under GAAP, see the companyÖs Press Release for the

quarter ended June 30, 2020.

2 Based on unpaid principal balances (UPB) of loans and securities. Excludes mortgage-related securities traded, but not yet settled.

Effective January 2020, FHFA instructed Freddie Mac to include 10% of the notional value of interest-only securities the company holds when calculating the size of its mortgage-related

investments portfolio. As a result, the balance of the mortgage-related investments portfolio as determined under this FHFA guidance was $199.4 billion as of June 30, 2020, including

$5.3 billion representing 10% of the notional amount of the interest-only securities the company held at that date.

3 Primarily Freddie MacÖs K Certificate and SB (Small Balance) Certificate transactions.

4 The companyÖs Purchase Agreement with Treasury limits the amount of mortgage assets the company can own and indebtedness it can incur. See the companyÖs Annual Report on

Form 10-K for the year ended December 31, 2019 for more information.

5 The other investments portfolio is primarily used for short-term liquidity management, cash and other investments held by consolidated trusts, and other investments, which include

investments in debt securities used to pledge as collateral, LIHTC partnerships, and secured lending activities.

6 Represents the companyÖs aggregate indebtedness for purposes of the Purchase Agreement debt cap and primarily includes the par value of other short-term and long-term debt used

to fund its business activities.

Beginning in 2020, the company offset amounts recognized as payables under repurchase agreements accounted for as collateralized borrowings and amounts recognized as

receivables under reverse repurchase agreements accounted for as collateralized borrowings when such amounts meet the conditions for offsetting repurchase and reverse repurchase

agreements in FASB ASC Subtopic 210-20 (Balance Sheet - Offsetting). Previously, such amounts were presented on a gross basis, with amounts recognized as payables under

repurchase agreements accounted for as collateralized borrowings included in Other Debt and amounts recognized as receivables under reverse repurchase agreements accounted for

as collateralized borrowings included in Other Investments. Prior periods have been revised to conform to the current period presentation.

7 Information related to single-family loans in forbearance is based on information reported by servicers. Single-family loans in forbearance are reported as delinquent during the

forbearance period to the extent that payments are past due based on the loan's original contractual terms, irrespective of the forbearance agreement. Single-family servicers are not

required to report forbearance information to the company if the borrower continues to make payments during the forbearance period and remains in current status.

8 Multifamily loans in forbearance are reported as current as long as the borrower is in compliance with the forbearance agreement, including the agreed upon repayment plan. Loans in

forbearance are therefore not included in the multifamily delinquency rates, if the borrower is in compliance with the forbearance agreement.

9 Excludes the initial $1 billion liquidation preference of the senior preferred stock issued to Treasury in September 2008 and the $9.5 billion increase to-date in the aggregate liquidation

preference of the senior preferred stock pursuant to the Letter Agreements. 

10 Represents the estimated average rate of guarantee fees for new acquisitions during the period assuming amortization of upfront fees using the estimated life of the related loans rather

than the original contractual maturity date of the related loans. Includes the effect of fee adjustments that are based on the price performance of Freddie MacÖs PCs relative to

comparable Fannie Mae securities. Net of legislated 10 basis point guarantee fee remitted to Treasury as part of the Temporary Payroll Tax Cut Continuation Act of 2011.

11 Multifamily's primary securitization products are K Certificates and SB Certificates. In these transactions, the company guarantees the senior securities, but does not issue or guarantee

the mezzanine or subordinated securities. The interest-rate risk and a large majority of expected and stress credit risk is sold to third-party investors through the mezzanine and

subordinated securities, thereby reducing the company's risk exposure. 

12 Excludes re-securitization UPB of primary and other securitization products.

13 Based on the companyÖs purchases of loans and issuances of mortgage-related securities. For the periods presented, a borrower may be counted more than once if the company

purchased more than one loan (purchase or refinance mortgage) relating to the same borrower.

14 Consists of both home retention actions and foreclosure alternatives.

15 Categories are not mutually exclusive, and a borrower in one category may also be included in another category in the same or another period. For example, a borrower helped through

a home retention action in one period may subsequently lose his or her home through a foreclosure alternative in a later period.
Ä Freddie Mac 16

Safe Harbor Statements

Freddie Mac obligations

Freddie MacÖs securities are obligations of Freddie Mac only. The securities, including any interest or return of discount on the securities,

are not guaranteed by and are not debts or obligations of the United States or any federal agency or instrumentality other than Freddie

Mac.

No offer or solicitation of securities 

This presentation includes information related to, or referenced in the offering documentation for, certain Freddie Mac securities,

including offering circulars and related supplements and agreements. Freddie Mac securities may not be eligible for offer or sale in

certain jurisdictions or to certain persons. This information is provided for your general information only, is current only as of its specified

date, and does not constitute an offer to sell or a solicitation of an offer to buy securities. The information does not constitute a sufficient

basis for making a decision with respect to the purchase or sale of any security. All information regarding or relating to Freddie Mac

securities is qualified in its entirety by the relevant offering circular and any related supplements. Investors should review the relevant

offering circular and any related supplements before making a decision with respect to the purchase or sale of any security. In addition,

before purchasing any security, please consult your legal and financial advisors for information about and analysis of the security, its

risks, and its suitability as an investment in your particular circumstances.

Forward-looking statements 

Freddie Mac's presentations may contain forward-looking statements, which may include statements pertaining to the conservatorship,

the companyÖs current expectations and objectives for its Single-family Guarantee, Multifamily, and Capital Markets segments, its efforts

to assist the housing market, liquidity and capital management, economic and market conditions and trends, the effects of the COVID-19

pandemic and actions taken in response thereto on its business, financial condition, and liquidity, its market share, the effect of

legislative and regulatory developments and new accounting guidance, credit quality of loans the company owns or guarantees, the

costs and benefits of the companyÖs credit risk transfer transactions, and results of operations and financial condition on a GAAP,

Segment Earnings, non-GAAP, and fair value basis. Forward-looking statements involve known and unknown risks and uncertainties,

some of which are beyond the companyÖs control. ManagementÖs expectations for the companyÖs future necessarily involve a number of

assumptions, judgments, and estimates, and various factors, including changes in market conditions, liquidity, mortgage spreads, credit

outlook, uncertainty about the duration and severity, and effects of, the COVID-19 pandemic and actions taken in response thereto,

actions by the U.S. government (including FHFA, Treasury, Congress, and state and local governments), and the impacts of legislation

or regulations and new or amended accounting guidance, could cause actual results to differ materially from these expectations. These

assumptions, judgments, estimates, and factors are discussed in the companyÖs Annual Report on Form 10-K for the year ended

December 31, 2019, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020, and June 30, 2020, and Current Reports

on Form 8-K, which are available on the Investor Relations page of the companyÖs website at www.freddiemac.com/investors and the

SECÖs website at www.sec.gov. The company undertakes no obligation to update forward-looking statements it makes to reflect events

or circumstances occurring after the date of this presentation.