“2015 marked another year of solid 

financial performance for Freddie 

Mac - our fourth straight year of 

profitability, although we did 

experience significant quarterly 

market-related earnings volatility.

Our performance was driven by 

our progress in building a better 

Freddie Mac, as evidenced by 

continued growth in purchase 

volumes in the guarantee 

businesses, including a multifamily 

record for the company. We’re 

also building a better housing 

finance system by expanding credit 

risk transfer and efficiently 

disposing of legacy assets, and so 

reducing taxpayer exposure to 

mortgage risk.

“The mortgage markets have 

strong momentum going into 

2016, and we continue to focus 

on serving our customers better 

and fulfilling our mission to 

support the housing needs of 

owners and renters nationwide, 

including responsibly expanding

access to mortgage credit.”

Donald H. Layton

Chief Executive Officer

News Release For Immediate Release // February 18, 2016

Freddie Mac Reports Net Income of $6.4 Billion for Full-Year 2015; 

Comprehensive Income of $5.8 Billion

Company Returns an Additional $5.5 Billion to Taxpayers in 2015

Full-Year and Fourth Quarter 2015 Results

Full-Year: 2015 marks the fourth consecutive year of positive earnings, driven by solid net 

interest income of $14.9 billion, up 5 percent, despite mandated reduction in mortgagerelated investments portfolio.

• Approximately 45 percent of net interest income for the full-year 2015 was derived from 

management and guarantee fees.

• Market-related items created quarterly volatility but had minimal effect on full-year 2015 

results. Full-year interest rate movements resulted in a $0.2 billion (after-tax) estimated 

loss and spread widening resulted in a $0.1 billion (after-tax) estimated loss.

Fourth Quarter: Positive comprehensive income of $1.6 billion driven by solid net 

interest income.

2015 Business Highlights

Business Fundamentals Were Strong and Continued to Improve

Single-Family Guarantee Business

• Purchase volume of $351 billion, up 38 percent from 2014

• Core (post-2008) book grew to 66 percent of credit guarantee portfolio; HARP and 

other relief refinance loans represented an additional 18 percent

Multifamily Business

• Purchase volume of $47.3 billion, up 67 percent from 2014 and consistent with the 

production cap

Reduced Taxpayer Exposure by Transferring Credit Risk to the Private Markets

Single-Family Guarantee Business

• Transferred a portion of credit risk on approximately $180 billion of mortgages, 

up from nearly $150 billion in 2014

Multifamily Business

• More than 90 percent of mortgage loans purchased were designated for securitization, 

comparable to 2014

Continued Reduction of Legacy Assets

Single-Family Guarantee Business

• Legacy book declined to 16 percent of credit guarantee portfolio from 20 percent in 2014

• Serious delinquency rate of 1.32 percent, down from 1.88 percent at the end of 2014

• Completed $2.9 billion of non-performing loan sales, up from $0.6 billion in 2014

Investments Business

• Sold $11 billion of non-agency mortgage-related securities, compared to $14 billion in 

2014

Strong Housing Market Support – Helping Families Buy, Rent or Keep 

Their Homes

• Provided $402 billion in liquidity in 2015, $2.9 trillion since 2009 – funding 12.5 million 

single-family homes and 2.7 million multifamily rental units

• Helped nearly 1.2 million borrowers avoid foreclosure since 2009

$98.2 Billion Returned to Taxpayers Through Dividend Payments, Including $1.7 

Billion March 2016 Obligation

• Senior preferred stock held by Treasury remains $72.3 billion

• Available funding under the Purchase Agreement remains $140.5 billion

Net Income

2015 = $6.4B / 4Q = $2.2B

Comprehensive Income

2015 = $5.8B / 4Q = $1.6B

Treasury Dividend

2015 = $5.5B / 1Q16 = $1.7B
Freddie Mac Fourth Quarter 2015 Financial Results 

February 18, 2016

Page 2

McLean, VA — Freddie Mac (OTCQB: FMCC) today reported net income of $6.4 billion for the full-year 2015, 

compared to net income of $7.7 billion for the full-year 2014. The company also reported comprehensive income

of $5.8 billion for the full-year 2015, compared to comprehensive income of $9.4 billion for the full-year 2014.

Summary Consolidated Statements of Comprehensive Income (Loss) (1)

(1) Columns and rows may not add due to rounding. 

 

Financial Results Discussion

Full-Year 2015 Financial Results – Freddie Mac’s 2015 net income of $6.4 billion and comprehensive income of

$5.8 billion declined $1.3 billion and $3.6 billion, respectively, from 2014. The decline in the company’s full-year 

2015 results was primarily driven by lower settlement income from non-agency mortgage-related securities 

litigation in 2015. Two market-related items also continued to create volatility:

• Net Interest Rate Effect: $0.2 billion (after-tax) estimated fair value loss for the full-year 2015, compared to 

a $2.3 billion (after-tax) estimated fair value loss for the full-year 2014 as interest rates declined less in 

2015 compared to 2014. (See Net Interest Rate Effect table for additional details.)

• Spread Change Effect: $0.1 billion (after-tax) estimated loss for the full-year 2015 due to the impact of 

spread widening on certain mortgage loans and mortgage-related securities measured at fair value, 

compared to a $2.0 billion (after-tax) estimated gain for the full-year 2014 as spreads tightened.

• Additionally, Freddie Mac continues to sell non-performing single-family mortgage loans and reclassified 

$13.6 billion in unpaid principal balance (UPB) of loans from held-for-investment to held-for-sale in the fullyear 2015. An insignificant number of loans were reclassified in 2014. 

 The reclassification of these loans and other related subsequent activity affected various financial 

statement line items and, on a net basis, had a minimal impact in the full-year 2014 and generated a 

pre-tax loss of $0.7 billion in the full-year 2015. The company believes these transactions, which 

reduce legacy risk, are economically beneficial.

Fourth Quarter 2015 Financial Results – The company’s fourth quarter net income of $2.2 billion and

comprehensive income of $1.6 billion increased $2.6 billion and $2.1 billion, respectively, from third quarter 2015.

The increase in the company’s results was primarily driven by improvement in two market-related items:

• Net Interest Rate Effect: $0.3 billion (after-tax) estimated fair value gain for the fourth quarter of 2015 as 

interest rates increased, compared to a $1.4 billion (after-tax) estimated fair value loss for the third quarter 

2015 as interest rates decreased. (See Net Interest Rate Effect table for additional details.)

($ Millions) 12/31/15 9/30/15 Change 2015 2014 Change

1 Net interest income $ 3,587 $ 3,743 $ (156) $ 14,946 $ 14,263 $ 683

2 Benefit (provision) for credit losses 781 528 253 2,665 (58) 2,723

3 Derivative gains (losses) 744 (4,172) 4,916 (2,696) (8,291) 5,595

4 Other non-interest income (loss) (896) 331 (1,227) (903) 8,178 (9,081)

5 Non-interest income (loss) (152) (3,841) 3,689 (3,599) (113) (3,486)

6 Administrative expenses (510) (465) (45) (1,927) (1,881) (46)

7 REO operations expense (95) (116) 21 (338) (196) (142)

8 Other non-interest expense (534) (518) (16) (2,473) (1,013) (1,460)

9 Non-interest expense (1,139) (1,099) (40) (4,738) (3,090) (1,648)

10 Pre-tax income (loss) 3,077 (669) 3,746 9,274 11,002 (1,728)

11 Income tax (expense) benefit (919) 194 (1,113) (2,898) (3,312) 414

12 Net income (loss) $ 2,158 $ (475) $ 2,633 $ 6,376 $ 7,690 $ (1,314)

13 Total other comprehensive income (loss) (517) (26) (491) (577) 1,736 (2,313)

14 Comprehensive income (loss) $ 1,641 $ (501) $ 2,142 $ 5,799 $ 9,426 $ (3,627)

Three Months Ended Full-Year
Freddie Mac Fourth Quarter 2015 Financial Results 

February 18, 2016

Page 3

• Spread Change Effect: $0.3 billion (after-tax) estimated fourth quarter 2015 loss, compared to a $0.6 billion 

(after-tax) estimated loss for the third quarter of 2015, as spreads on certain mortgage loans and 

mortgage-related securities measured at fair value widened less in the fourth quarter than in the third 

quarter.

• Freddie Mac reclassified $2.5 billion and $3.0 billion in UPB of non-performing single-family mortgage

loans from held-for-investment to held-for-sale in the third and fourth quarters of 2015, respectively. 

 The reclassification of these loans and other related subsequent activity affected various financial 

statement line items and, on a net basis, had a minimal impact on the third quarter of 2015 and 

generated a pre-tax loss of $0.3 billion in the fourth quarter of 2015. The company believes these 

transactions, which reduce legacy risk, are economically beneficial.

Net Interest Rate Effect (1)

(1) Columns and rows may not add due to rounding.

Selected Financial Highlights

Net interest income was $14.9 billion for the full-year 2015, an increase of $683 million from the full-year 2014. 

Net interest yield was 77 basis points for the full-year 2015, an increase of 3 basis points from the full-year 2014. 

($ Billions) 12/31/15 9/30/15 Change 2015 2014 Change

Components of Derivative Gains (Losses)

1 Derivative Gains (Losses) $ 0.7 $ (4.2) $ 4.9 $ (2.7) $ (8.3) $ 5.6

2 Less: Accrual of Periodic Cash Settlements (0.6) (0.5) (0.0) $ (2.2) (2.6) 0.4

3 Derivative Fair Value Changes $ 1.3 $ (3.6) $ 4.9 $ (0.5) $ (5.7) $ 5.2

Estimated Net Interest Rate Effect

4 Interest Rate Effect on Derivative Fair Values $ 1.3 $ (3.6) $ 4.9 $ (0.5) $ (5.5) $ 5.1

5 Estimate of Offsetting Interest Rate Effect Related to 

Financial Instruments Measured at Fair Value (0.9) 1.5 (2.3) 0.2 2.0 (1.8)

6 Income Tax Benefit (Expense) - @ 35% (0.1) 0.7 (0.9) 0.1 1.2 (1.2)

7 Estimated Net Effect on Comprehensive Income (4+5+6) $ 0.3 $ (1.4) $ 1.6 $ (0.2) $ (2.3) $ 2.1

Three Months Ended Full-Year

$3.6 $4.0 $3.7 $3.6

$14.3 $14.9 

75 bps

82 bps

77 bps

73 bps 74 bps 77 bps

1Q 2015 2Q 2015 3Q 2015 4Q 2015 2014 2015

Net Interest Income Net Interest Yield

Net Interest Income and Net Interest Yield

$ Billions
Freddie Mac Fourth Quarter 2015 Financial Results 

February 18, 2016

Page 4

• The increases in both net interest income and net interest yield primarily reflect higher amortization income 

driven by increased prepayments during 2015.

• Approximately 45 percent, or $6.6 billion, of net interest income for the full-year 2015 was derived from 

management and guarantee fees, up from approximately 35 percent for the full-year 2014. 

Net interest income for the fourth quarter of 2015 was $3.6 billion, a decrease of $156 million from the third quarter 

of 2015. Net interest yield was 73 basis points for the fourth quarter of 2015, a decrease of 4 basis points from the 

third quarter of 2015.

• The decreases in both net interest income and net interest yield primarily reflect lower amortization income 

due to lower prepayments during the fourth quarter and a decline in the balance of higher-yielding 

mortgage-related assets due to continued liquidations.

Benefit for credit losses was $2.7 billion for the full-year 2015, a shift from a provision for credit losses of $58 

million for the full-year 2014. 

• The shift to a benefit was primarily due to the reclassification of certain seriously delinquent single-family 

loans from held-for-investment to held-for-sale. Freddie Mac reclassified $13.6 billion in UPB of such 

loans in 2015, while an insignificant number of loans were reclassified in 2014. 

• Freddie Mac’s single-family serious delinquency rate continued to improve in 2015, primarily due to better 

performance of newly acquired loans in the Core single-family book, continued loss mitigation and 

foreclosure activities for loans in the Legacy single-family book and sales of certain non-performing loans.

Benefit for credit losses was $781 million for the fourth quarter of 2015, an increase of $253 million from the third

quarter of 2015. 

• The increase primarily reflects an improvement in loss severity and default probability.

$0.5 

$0.9 

$0.5 

$0.8 

($0.1)

$2.7 

1.73%

1.53%

1.41% 1.32%

1.88%

1.32%

1Q 2015 2Q 2015 3Q 2015 4Q 2015 2014 2015

Benefit (Provision) for Credit Losses and Single-Family Serious Delinquency Rates

$ Billions

Benefit (Provision) for Credit Losses Single-Family Serious Delinquency Rates
Freddie Mac Fourth Quarter 2015 Financial Results 

February 18, 2016

Page 5

Derivative losses for the full-year 2015 were $2.7 billion, a decrease of $5.6 billion from the full-year 2014.

• The decrease in derivative losses in the full-year 2015 was driven by a smaller decline in interest rates 

during 2015 versus 2014.

• Derivative gains (losses) include both fair value changes and derivative interest carry (i.e., accrual of 

periodic cash settlements). 

 Fair value changes were a loss of $498 million in the full-year 2015, a decrease in losses of $5.2

billion from the full-year 2014.

 Derivative interest carry, which is economically equivalent to interest expense, was an expense of 

$2.2 billion for the full-year 2015, a decrease of $427 million from the full-year 2014. 

Derivative gains were $744 million for the fourth quarter of 2015, a shift from derivative losses of $4.2 billion in the 

third quarter of 2015. 

• The shift was primarily driven by an increase in long-term interest rates during the fourth quarter of 2015 

versus a decrease in these rates during the third quarter of 2015.

($0.6) ($0.5) ($0.5) ($0.6)

($2.6) ($2.2) ($1.8)

$3.7

($3.6)

$1.3 

($5.7)

($0.5)

1Q 2015 2Q 2015 3Q 2015 4Q 2015 2014 2015

Derivative Gains (Losses)

$ Billions

Derivative Interest Carry Derivative Fair Value Changes

Note: Amounts may not add due to rounding.

$3.1

($2.4) ($4.2) ($8.3)

$0.7

($2.7)

0.89 0.81 0.90 0.76

1.17

2.29

2.03

2.45

2.01

2.19

4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015

2-Year and 10-Year LIBOR Rates

Percent (%)

2-Year 10-Year

Change in 10-Year LIBOR Rate

3Q15: -44 bps 2014: -78 bps

4Q15: +18 bps 2015: -10 bps
Freddie Mac Fourth Quarter 2015 Financial Results 

February 18, 2016

Page 6

Administrative expense was $1.9 billion (10.0 basis points) for the full-year 2015, an increase of $46 million from 

the full-year 2014. 

• The increase was mostly driven by costs associated with the FHFA-mandated termination of the 

company’s pension plans in 2015.

Variability of Earnings

Freddie Mac’s financial results are subject to significant earnings variability from period to period. This variability is 

primarily driven by:

• Interest-Rate Volatility – Freddie Mac holds assets and liabilities that expose it to interest-rate risk. 

Through its use of derivatives, the company manages its exposure to interest-rate risk on an economic 

basis to a low level as measured by the company’s models. However, the way the company accounts for 

its financial assets and liabilities (i.e., some are measured at amortized cost, while others are measured at 

fair value), including derivatives, creates volatility in the company’s earnings when interest rates fluctuate. 

Based upon the composition of its financial assets and liabilities, including derivatives, at December 31, 

2015, the company generally recognizes fair value losses in earnings when interest rates decline. This 

volatility generally is not indicative of the underlying economics of its business. This volatility and the 

declining capital reserve required under the terms of the Purchase Agreement (ultimately reaching zero in 

2018) will increase the risk of the company having a negative net worth and being required to draw from 

Treasury. The company is exploring ways in which it can limit or manage its exposure to this volatility.

• Spread Volatility – Spread volatility (i.e., credit spreads, liquidity spreads, risk premiums, etc.), or optionadjusted spreads, is the risk associated with changes in interest rates in excess of benchmark rates. 

Freddie Mac holds assets and liabilities that expose it to spread volatility, which may contribute to 

significant earnings volatility. For financial assets and liabilities measured at fair value, the company 

generally recognizes fair value losses when spreads widen. However, the company may enter into 

transactions or take other steps to limit or manage its exposure to spread volatility. 

• Non-Recurring Events – From time to time, Freddie Mac has experienced and will likely continue to 

experience significant earnings volatility from non-recurring events, including events such as settlements 

with counterparties and changes in certain valuation allowances.

($0.45) ($0.50) ($0.47) ($0.51)

($1.88) ($1.93)

9.4 bps

10.4 bps

9.7 bps

10.5 bps

9.8 bps 10.0 bps

1Q 2015 2Q 2015 3Q 2015 4Q 2015 2014 2015

Administrative Expense and Efficiency Ratio (1)

$ Billions

Administrative Expense Efficiency Ratio

 

(1) Efficiency (in basis points) is the ratio of administrative expense to the average total mortgage portfolio, and is calculated on an annualized basis.
Freddie Mac Fourth Quarter 2015 Financial Results 

February 18, 2016

Page 7

Segment Financial Results and Business Highlights

Freddie Mac’s operations consist of three reportable segments, which are based on the types of business activities 

they perform — Single-family Guarantee, Multifamily and Investments. Certain activities that are not part of a 

reportable segment are included in the All Other category. 

Summary of Segment Earnings (Loss) and Comprehensive Income (Loss) (1)(2)

(1) Columns and rows may not add due to rounding. 

(2) The financial performance of the company’s Single-family Guarantee segment is measured based on its contribution to GAAP net income (loss). The financial 

performance of the company’s Investments segment and Multifamily segment are measured based on each segment's contribution to GAAP comprehensive 

income (loss).

Single-family Guarantee Segment

Providing liquidity to the U.S. housing market while continuing to transfer credit risk to the private market 

• Single-family Guarantee segment earnings were $1.8 billion for the full-year 2015, an increase of $231

million from the full-year 2014. The increase was primarily driven by higher management and guarantee 

fee income due to higher amortization of upfront fees resulting from higher loan liquidations and lower 

provision for credit losses due to decreases in newly-impaired single-family mortgage loans, partially offset 

by the net effect of mortgage loan reclassifications and other related subsequent activity in 2015.

• Core book continued to grow and was 66 percent of single-family credit guarantee portfolio at December 

31, 2015.

 HARP and other relief refinance loans were an additional 18 percent.

 Legacy book declined to 16 percent.

• Average management and guarantee fees charged on new acquisitions were 44.2 basis points (net of

legislated 10 basis point guarantee fee remitted to Treasury as part of the Temporary Payroll Tax Cut 

Continuation Act of 2011) in the full-year 2015, down from 47.4 basis points in the full-year 2014.

• Single-family serious delinquency rate continued to decline and was 1.32 percent at December 31, 2015, 

the lowest since September 2008.

• Completed sales of $2.9 billion in UPB of non-performing unsecuritized single-family loans during the fullyear 2015, an increase of $2.3 billion from the full-year 2014. 

• Completed credit risk transfer transactions during the full-year 2015 that, upon initial execution, covered 

$181.2 billion in principal of the mortgage loans in the Core book.

($ Millions) 12/31/15 9/30/15 Change 2015 2014 Change

Segment Earnings (loss), net of taxes

1 Single-family Guarantee $ 638 $ 591 $ 47 $ 1,778 $ 1,547 $ 231

2 Multifamily 173 (103) 276 $ 827 $ 1,636 $ (809)

3 Investments 1,347 (963) 2,310 $ 3,771 $ 4,520 $ (749)

4 All Other - - - $ - $ (13) $ 13

5 Total Segment Earnings (loss), net of taxes $ 2,158 $ (475) $ 2,633 $ 6,376 $ 7,690 $ (1,314)

Comprehensive income (loss) of segments

6 Single-family Guarantee $ 651 $ 591 $ 60 $ 1,790 $ 1,537 $ 253

7 Multifamily 20 (84) 104 $ 566 $ 1,459 $ (893)

8 Investments 969 (1,008) 1,977 $ 3,415 $ 6,471 $ (3,056)

9 All Other 1 - 1 $ 28 $ (41) $ 69

10 Comprehensive income (loss) of segments $ 1,641 $ (501) $ 2,142 $ 5,799 $ 9,426 $ (3,627)

Three Months Ended Full-Year
Freddie Mac Fourth Quarter 2015 Financial Results 

February 18, 2016

Page 8

Multifamily Segment

Providing financing for workforce housing and transferring credit risk to private investors 

• Multifamily segment comprehensive income was $566 million for the full-year 2015, a decrease of $893

million from the full-year 2014. The decrease was primarily driven by spread widening in the commercial 

mortgage backed securities market during 2015.

• New purchase volume of $47.3 billion in the full-year 2015, an increase of $19.0 billion from the full-year 

2014. 

 The full year 2015 new multifamily business activity (excluding certain targeted loan types) was 

subject to a production cap of $30.0 billion in UPB based on FHFA’s 2015 Conservatorship 

Scorecard.

− In May 2015, FHFA expanded the affordable housing categories that were excluded from the 

2015 production cap.

 Approximately 63 percent of the $47.3 billion in new business activity for the full-year 2015 counted

towards the 2015 production cap, while the remaining 37 percent was uncapped.

 Provided workforce housing through new initiatives such as purchases of $2.6 billion of small 

balance loans and $1.0 billion of manufactured housing community loans.

• Continuing the company’s focus on transferring credit risk to private investors, more than 90 percent of the

new multifamily mortgage loans purchased in the full-year 2015 were designated for subsequent 

securitization into K-deals and other similar types of transactions.

 Sold $36.1 billion of multifamily mortgage loans through 29 K-deal offerings and nine small balance 

loan securitizations in the full-year 2015.

 Resecuritized $3.4 billion of less liquid non-agency mortgage-related securities, transferring a 

portion of the credit risk to private investors.

• Multifamily delinquency rate remained very low at two basis points at December 31, 2015, reflecting 

continued strong portfolio performance.

• Provided financing for more than 650,000 rental units in the full-year 2015. Nearly 90 percent of the eligible 

units financed are affordable to families earning low to median incomes.

Investments Segment

Reducing less liquid assets using an economically sensible approach

• Investments segment comprehensive income was $3.4 billion for the full-year 2015, a decrease of $3.1

billion from the full-year 2014. The decrease was primarily driven by lower settlement income related to 

non-agency mortgage-related securities litigation and lower fair value gains on non-agency mortgagerelated securities, partially offset by lower derivative losses as interest rates declined less in 2015 than in 

2014.

• Continued to actively reduce the balance of the company’s mortgage-related investments portfolio, 

focusing on reducing the balance of less liquid assets. Investments segment less liquid assets were

$100.9 billion at December 31, 2015, down $26.0 billion, or 21 percent, from December 31, 2014, due to 

ongoing portfolio liquidations and: 

 Sales of $11.4 billion of non-agency mortgage-related securities.

 Securitization of $8.2 billion of single-family reperforming and modified loans.

• The Investments segment securitization pipeline assets, which represent the company’s performing singlefamily loans purchased for cash and held until securitized, were $10.0 billion at December 31, 2015, up 

$2.5 billion from December 31, 2014.

• Continued to maintain a presence in the agency mortgage-related securities market. Liquid assets held by 

the Investments segment were $148.8 billion at December 31, 2015, down $18.4 billion from December 

31, 2014.

• Managed the company’s interest-rate risk on an economic basis to a low level as measured by its models.

 Duration gap averaged near zero months for the full-year 2015.
Freddie Mac Fourth Quarter 2015 Financial Results 

February 18, 2016

Page 9

Housing Market Support

Freddie Mac supports the U.S. housing market by executing its community mission to ensure credit availability for 

new and refinanced mortgages as well as rental housing and helping struggling homeowners avoid foreclosure. 

Since the beginning of 2009, Freddie Mac has helped approximately 12.5 million American families own or rent a 

home and nearly 1.2 million families avoid foreclosure. 

Providing Liquidity – Freddie Mac provides access to financing for new and refinanced mortgages and rental 

housing. In 2015, the company:

• Provided $402.0 billion in liquidity to the market mostly through its purchases of loans, funding 

approximately 1.6 million single-family homes and more than 650,000 multifamily rental units. 

• Purchased refinance loans of $197.7 billion which accounted for 56 percent of the company’s single-family 

mortgage purchase volume. 

Freddie Mac made significant progress on several fronts in 2015 to responsibly increase access to housing finance 

for America’s families. To reach more borrowers, the company expanded and diversified its lender base and 

introduced new product offerings to meet their needs – namely the company’s three percent down mortgage Home 

Possible AdvantageSM. The company also entered into partnerships with state housing finance agencies and 

expanded industry and lender alliances. For renters, the company significantly grew its Small Balance Loan 

program that funds smaller rental properties and introduced a new program to finance manufactured housing 

communities. Making housing more accessible and affordable for borrowers and renters continues to be a top 

priority for Freddie Mac in 2016. 

Market Liquidity Provided (1)

(1) Based on UPB and includes other guarantee commitments. 

(2) Includes Ginnie Mae Certificates, Housing Finance Agency initiative-related guarantees, and other securitization products.

(3) Excludes Multifamily issuances of K-deals and the securitization of small balance loans. 

(4) Consists of non-Freddie Mac mortgage-related securities purchased for the company’s mortgage-related investments portfolio.

($ Billions)

2009 2010 2011 2012 2013 2014 2015 Cumulative

Total

1 Single-family purchases or issuances(1) $ 483 $ 390 $ 321 $ 427 $ 423 $ 255 $ 351 $ 2,650

2 Relief refinance mortgages (includes HARP) 35 106 82 123 99 27 20 492

3 Other refinance mortgages 345 200 168 228 210 94 178 1,423

4 Purchase mortgages 94 78 71 76 114 134 153 720

5 Other(2) 9 6 - - - - - 15

6 Multifamily loan purchases or guarantees(1)(3) $ 17 $ 16 $ 20 $ 29 $ 26 $ 28 $ 47 $ 183

7 Other(4) $ 46 $ - $ 8 $ - $ 4 $ 8 $ 4 $ 70

8 Total (lines 1+6+7) $ 546 $ 406 $ 349 $ 456 $ 453 $ 291 $ 402 $ 2,903
Freddie Mac Fourth Quarter 2015 Financial Results 

February 18, 2016

Page 10

Preventing Foreclosures – Freddie Mac helps struggling borrowers retain their homes or otherwise avoid 

foreclosure. 

• The company completed approximately 94,000 single-family loan workouts in 2015, bringing the total 

number of homeowners the company has helped to avoid foreclosure to nearly 1.2 million since the 

beginning of 2009. 

• When foreclosure is unavoidable, Freddie Mac has helped to further stabilize communities by focusing its 

real estate owned home sales on owner-occupants, who have made up two–thirds of its purchasers since 

the beginning of 2009.

Number of Families Helped

(1) 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.

(2) Represents single-family loan workouts. These categories are not mutually exclusive and a borrower in one category may also be included in another category in the 

same period. For the periods presented, a borrower may subsequently go into foreclosure.

(Thousands)

2009 2010 2011 2012 2013 2014 2015 Cumulative

Total

1 Number of families helped to own or rent a home 2,480 2,089 1,830 2,472 2,458 1,627 2,237 15,193

2 Relief refinance borrowers (includes HARP)(1) 169 533 453 687 611 179 130 2,762

3 Other refinance borrowers (1) 1,595 947 740 996 944 429 780 6,431

4 Purchase borrowers (1) 460 378 326 353 515 606 677 3,315

5 Multifamily rental units 256 231 311 436 388 413 650 2,685

6 Number of families helped to avoid foreclosure(2) 133 275 208 169 168 120 94 1,167

7 Loan modifications 65 170 109 70 83 67 54 618

8 Repayment plans 34 31 33 33 29 25 21 206

9 Forbearance agreements 15 35 20 13 12 9 6 110

10 Short sales & deed-in-lieu of foreclosure transactions 19 39 46 53 44 19 13 233

11 Total (lines 1+6) 2,613 2,364 2,038 2,641 2,626 1,747 2,331 16,360
Freddie Mac Fourth Quarter 2015 Financial Results 

February 18, 2016

Page 11

About Freddie Mac’s Conservatorship

Since September 2008, Freddie Mac has been operating under conservatorship, with FHFA as Conservator. The 

support provided by Treasury pursuant to the Senior Preferred Stock Purchase Agreement (Purchase Agreement) 

enables the company to maintain access to the debt markets and have adequate liquidity to conduct its normal 

business operations. 

Treasury Draw Requests and Dividend Payments

 (1) The initial $1 billion liquidation preference of senior preferred stock was issued to Treasury in September 2008 as consideration for Treasury’s funding 

commitment. The company received no cash proceeds as a result of issuing this initial $1 billion liquidation preference of senior preferred stock.

(2) Amount does not include the March 2016 dividend obligation of $1.7 billion.

• Dividend obligation to Treasury in March 2016 will be $1.7 billion, based on Freddie Mac’s net worth of 

$2.9 billion at December 31, 2015, less the 2016 capital reserve amount of $1.2 billion.

 The applicable capital reserve amount is $1.2 billion for 2016, and will be $600 million for 2017 and 

zero beginning on January 1, 2018. 

• Aggregate cash dividends paid to Treasury will total $98.2 billion (including the March 2016 dividend 

obligation), $26.9 billion more than cumulative cash draws of $71.3 billion received from Treasury through 

December 31, 2015.

• Treasury maintains a liquidation preference of $72.3 billion on the company’s senior preferred stock as of 

December 31, 2015. 

 The payment of dividends does not reduce the outstanding liquidation preference under the Purchase 

Agreement.

 Freddie Mac is not permitted to redeem the senior preferred stock prior to the termination of 

Treasury’s funding commitment under the Purchase Agreement.

• The amount of remaining funding available to Freddie Mac under the Purchase Agreement with Treasury

remains $140.5 billion, and will be reduced by any future draws.

 

$44.6 

$6.1 

$13.0 

$7.6 

$0.02 $0.0 $0.0 $0.0 

2008 2009 2010 2011 2012 2013 2014 2015

Draw Requests from Treasury

$ Billions

$0.2 

$4.1 $5.7 $6.5 $7.2 

$47.6 

$19.6 

$5.5(2) 

2008 2009 2010 2011 2012 2013 2014 2015

Dividend Payments to Treasury

$ Billions

($ Billions) Cumulative

 Total

Total Senior Preferred Stock 

Outstanding $ 72.3 

Less: Initial Liquidation Preference(1) 1.0 

 Treasury Draws $ 71.3 

($ Billions) Cumulative 

Total

Dividend Payments as of 12/31/15 $ 96.5 

1Q16 Dividend Obligation 1.7 

 Total Dividend Payments $ 98.2 
Freddie Mac Fourth Quarter 2015 Financial Results 

February 18, 2016

Page 12

Additional Information

For more information, including that related to Freddie Mac’s financial results, conservatorship and related matters, 

see the company’s Annual Report on Form 10-K for the year ended December 31, 2015, and the company’s 

Financial Results Supplement. These documents are available on the Investor Relations page of the company’s 

Web site at www.FreddieMac.com/investors.

Additional information about Freddie Mac and its business is also set forth in the company’s filings with the SEC, 

which are available on the Investor Relations page of the company’s Web site at www.FreddieMac.com/investors

and the SEC’s Web site at www.sec.gov. Freddie Mac encourages all investors and interested members of the 

public to review these materials for a more complete understanding of the company’s financial results and related 

disclosures.

Webcast Announcement

Management will host a conference call at 8 a.m. Eastern Time on February 18, 2016 to discuss the company’s 

results with the media. The conference call will be concurrently webcast. To access the live audio webcast, use 

the following link: https://www.webcaster4.com/Webcast/Page/1315/13193. The replay will be available on the 

company’s Web site at www.FreddieMac.com/investors for approximately 30 days. All materials related to the call 

will be available on the Investor Relations page of the company’s Web site at www.FreddieMac.com/investors.

* * * *

This press release contains forward-looking statements, which may include statements pertaining to the 

conservatorship, the company’s current expectations and objectives for its Single-family Guarantee, Multifamily 

and Investments segments, its efforts to assist the U.S. residential mortgage market, liquidity, capital management, 

economic and market conditions and trends, market share, the effect of legislative and regulatory developments 

and new accounting guidance, credit quality of loans the company owns or guarantees, and results of operations 

and financial condition on a GAAP, Segment Earnings and fair value basis. Forward-looking statements involve 

known and unknown risks and uncertainties, some of which are beyond the company’s control. Management’s 

expectations for the company’s future necessarily involve a number of assumptions, judgments and estimates, and 

various factors, including changes in market conditions, liquidity, mortgage spreads, credit outlook, actions by the 

U.S. government (including FHFA, Treasury and Congress), 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 company’s Annual Report on Form 10-K for 

the year ended December 31, 2015, which is available on the Investor Relations page of the company’s Web site 

at www.FreddieMac.com/investors and the SEC’s Web site 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 press release.

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's 

residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital 

to lenders. Today Freddie Mac is making home possible for approximately one in four home borrowers and is the

largest source of financing for multifamily housing. Additional information is available at FreddieMac.com, Twitter 

@FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.

Media Contact: Lisa Gagnon (703) 903-3385 Investor Contact: Robin Phillips (571) 382-4732
December 31, 2015 September 30, 2015 December 31, 2015 December 31, 2014

Interest income

Mortgage loans $ 15,793 $ 15,595 $ 62,226 $ 63,605

Investments in securities 1,058 1,145 4,794 5,843

Other 25 19 70 32

Total interest income 16,876 16,759 67,090 69,480

Interest expense (13,237) (12,963) (51,916) (54,916)

Expense related to derivatives (52) (53) (228) (301)

Net interest income 3,587 3,743 14,946 14,263

Benefit (provision) for credit losses 781 528 2,665 (58)

4,368 4,271 17,611 14,205

Non-interest income (loss)

Gains (losses) on extinguishment of debt (85) 4 (240) (422)

Derivative gains (losses) 744 (4,172) (2,696) (8,291)

Impairment of available-for-sale securities:

(37) (38) (241) (860)

(10) (16) (51) (78)

(47) (54) (292) (938)

(317) 256 508 1,494

Other income (loss) (447) 125 (879) 8,044

Non-interest income (loss) (152) (3,841) (3,599) (113)

Non-interest expense

Salaries and employee benefits (233) (231) (975) (914)

Professional services (136) (130) (497) (527)

Occupancy expense (16) (14) (56) (58)

Other administrative expense (125) (90) (399) (382)

Total administrative expense (510) (465) (1,927) (1,881)

(95) (116) (338) (196)

(262) (248) (967) (775)

Other (expense) income (272) (270) (1,506) (238)

Non-interest expense (1,139) (1,099) (4,738) (3,090)

Income before income tax (expense) benefit 3,077 (669) 9,274 11,002

Income tax (expense) benefit (919) 194 (2,898) (3,312)

Net income (loss) 2,158 (475) 6,376 7,690

(588) (61) (806) 1,584

50 35 182 197

Changes in defined benefit plans 21 0 47 (45)

(517) (26) (577) 1,736

Comprehensive income (loss) $ 1,641 $ (501) $ 5,799 $ 9,426

Net income (loss) $ 2,158 $ (475) $ 6,376 $ 7,690

(1,740) 0 (6,399) (10,026)

$ 418 $ (475) $ (23) $ (2,336)

$ 0.13 $ (0.15) $ (0.01) $ (0.72)

3,234 3,234 3,235 3,236

Undistributed net worth sweep and senior 

preferred stock dividends

Weighted average common shares outstanding 

(in millions) — basic and diluted

Net interest income after benefit (provision) for 

credit losses

Real estate owned operations (expense) 

income

Temporary Payroll Tax Cut Continuation Act 

of 2011 expense

Net income (loss) attributable to common 

stockholders

Net income (loss) per common share — basic 

and diluted

Total other comprehensive income (loss), 

net of taxes and reclassification 

adjustments

Total other-than-temporary impairment of 

available-for-sale securities

Portion of other-than-temporary 

impairment recognized in AOCI

Net impairment of available-for-sale 

securities recognized in earnings

Other gains (losses) on investment securities 

recognized in earnings

Other comprehensive income (loss), net of 

taxes and reclassification adjustments:

Changes in unrealized gains (losses) related 

to available-for-sale securities

Changes in unrealized gains (losses) related 

to cash flow hedge relationships

FREDDIE MAC

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Twelve Months Ended

(in millions, except share-related amounts)

Three Months Ended

(in millions, except share-related amounts)
December 31, 2015 December 31, 2014

Assets

$ 5,595 $ 10,928

 14,533 8,535

 63,644 51,903

Investments in securities, at fair value 114,215 136,987

 24,992 12,368

 1,729,201 1,688,212

 6,074 6,034

Derivative assets, net 395 822

Real estate owned, net 1,725 2,558

Deferred tax assets, net 18,205 19,498

 7,471 7,694

Total assets $ 1,986,050 $ 1,945,539

Liabilities and equity

Liabilities

$ 6,183 $ 6,325

Debt, net (includes $7,184 and $5,862 at fair value) 1,970,427 1,929,542

Derivative liabilities, net 1,254 1,963

Other liabilities 5,246 5,058

Total liabilities 1,983,110 1,942,888

Commitments and contingencies

Equity

Senior preferred stock, at redemption value 72,336 72,336

Preferred stock, at redemption value 14,109 14,109

 - -

Additional paid-in capital - -

Retained earnings (accumulated deficit) (80,773) (81,639)

AOCI, net of taxes, related to:

 1,740 2,546

Cash flow hedge relationships (621) (803)

Defined benefit plans 34 (13)

Total AOCI, net of taxes 1,153 1,730

 (3,885) (3,885)

Total equity 2,940 2,651

Total liabilities and equity $ 1,986,050 $ 1,945,539

Treasury stock, at cost, 75,817,924 shares and 75,819,987 shares

Mortgage loans held-for-investment (net of allowance for loan losses of 

$15,331 and $21,761)

Restricted cash and cash equivalents

FREDDIE MAC

CONSOLIDATED BALANCE SHEETS

(in millions, except share-related amounts)

Cash and cash equivalents

Other assets

Accrued interest payable

Common stock, $0.00 par value, 4,000,000,000 shares authorized, 

725,863,886 shares issued and 650,045,962 shares and 650,043,899 

shares outstanding

Available-for-sale securities (includes $778 and $839, related to net 

unrealized gains on securities for which other-than-temporary 

impairment has been recognized in earnings)

Securities purchased under agreements to resell

Accrued interest receivable

Mortgage loans held-for-sale (includes $17,660 and $12,130 at fair 

value)