First Quarter 2014 

Financial Results 

Supplement

May 8, 2014
2

Table of contents

Business Results Credit Supplement

3 - Quarterly Financial Results 20 - National Home Prices

4 - Comprehensive Income 21 - State-by-State Home Prices: June 2006 to March 2014

5 - Senior Preferred Stock Purchase Agreement with Treasury 22 - State-by-State Home Prices: March 2013 to March 2014

6 - Treasury Draw Requests and Dividend Payments 23 - Mortgage Market and Freddie Mac Serious Delinquency Rates

7 - Total Equity and Senior Preferred Stock Activity 24 -

8 - Single-Family Guarantee Fees Charged on New Acquisitions 25 -

9 - Structured Agency Credit Risk (STACR®) Debt Note Issuances 26 -

 10 - Loan Loss Reserves 27 -

 11 - 28 -

 12 - 29 -

 13 - 30 -

 14 - 31 -

 15 - 32 - Multifamily Portfolio Composition

 16 - 33 - Multifamily Securitization Volume

 17 - 34 - Multifamily New Business Volume by State

 18 - 35 - Multifamily Mortgage Portfolio UPB Concentration by State

 36 - Multifamily Mortgage Portfolio by Attribute

 37 - Multifamily Mortgage Portfolio by Attribute, Continued

 38 - Multifamily Market and Freddie Mac Delinquency Rates

Loan Purpose of Single-Family Credit Guarantee Portfolio 

Purchases

Credit Quality of Single-Family Credit Guarantee Portfolio Purchases

Single-Family Credit Guarantee Portfolio Characteristics

Single-Family 1Q 2014 Credit Losses and REO by Region and State

Single-Family Credit Profile by Book Year and Product Feature

Single-Family Serious Delinquency Rates by State and Region

Aging of Single-Family Seriously Delinquent Loans by Judicial and 

Non-Judicial States Real Estate Owned

Single-Family Cumulative Foreclosure Transfer and Short Sale 

Rates by Book Year

Market Liquidity Provided

Single-Family Refinance Activity

Performance of Single-Family Modified Loans

Single-Family Loan Modifications

Single-Family Loan Workouts

Administrative Expenses

Purchase Agreement Portfolio Limits
3

Quarterly financial results

 Line 3: A shift from derivative gains in 4Q13 to 

derivative losses in 1Q14 primarily driven by 

losses on the net pay-fixed swap portfolio as longterm interest rates decreased.

 Line 13: Higher income tax expense primarily 

driven by a higher effective tax rate in 1Q14. In 

2014, the company expects its effective tax rate to 

be marginally below the statutory rate of 35 

percent.

Note: Columns and rows may not add due to rounding.

($ Billions) 1Q 2014

vs

4Q 2013 1Q 2014 4Q 2013

1 Net interest income $3.8 $3.5 ($0.3)

2 (Provision) benefit for credit losses 0.2 (0.1) (0.3)

3 Derivative gains (losses) 1.0 (2.4) (3.3)

4 Net impairment of available-for-sale 

 securities recognized in earnings (1.3) (0.4) 0.9

5 Other non-interest income 6.1 5.8 (0.3)

6 Non-interest income 5.8 3.1 (2.6)

7 Total administrative expenses (0.5) (0.5) 0.0

8 Real estate owned operations expense (0.0) (0.1) (0.0)

9 Temporary Payroll Tax Cut Continuation Act of 

 2011 expense (0.2) (0.2) (0.0)

10 Other non-interest income (expense) 0.3 (0.1) (0.4)

11 Non-interest expense (0.4) (0.8) (0.4)

12 Pre-tax income 9.3 5.8 (3.6)

13 Income tax expense (0.7) (1.7) (1.0)

14 Net income 8.6 4.0 (4.6)

15 Total other comprehensive income, 

net of taxes 1.2 0.5 (0.7)

16 Comprehensive income $9.8 $4.5 ($5.3)
$1.8 $2.9 

$5.6 $5.7 $7.0 

$4.4 

$30.4 

$9.8 

$4.5 

1Q

 2012

2Q

 2012

3Q

2012

4Q

2012

1Q

2013

2Q

2013

3Q

2013

4Q

2013

1Q

2014

Net income

Total other comprehensive income (loss), net of taxes

Comprehensive income

4

Comprehensive income

 2

1 Net income and Comprehensive income include $23.9 billion non-cash benefit from releasing the valuation allowance on deferred tax assets.

2 Consists of the after-tax changes in: (a) the unrealized gains and losses on available-for-sale securities; (b) the effective portion of derivatives previously designated as cash flow 

hedges; and (c) defined benefit plans. 

A

B

C = A + B

 1

$ Billions
Senior Preferred Stock Purchase Agreement with 

Treasury

 Senior preferred stock outstanding and held by Treasury remained $72.3 billion at 

March 31, 2014. 1

» Dividend payments do not reduce prior Treasury draws.

» Any future draws will increase the balance of senior preferred stock outstanding.

 Since entering conservatorship in September 2008, Freddie Mac has:

» Received cumulative draws of $71.3 billion from Treasury. No draws have been requested for 

the past eight quarters; last draw request was $19 million for first quarter 2012.

 Freddie Mac’s net worth was $6.9 billion at March 31, 2014.

» Capital reserve amount is $2.4 billion for quarterly payments in 2014, and will be reduced by 

$600 million each year thereafter until it reaches zero on January 1, 2018. 

» Dividend obligation to Treasury will be $4.5 billion in June 2014. 

» Aggregate cash dividends paid to Treasury will total $86.3 billion including the June dividend 

obligation, versus cumulative cash draws of $71.3 billion received from Treasury through 

March 31, 2014.

 The amount of remaining Treasury funding currently available to Freddie Mac under 

the Purchase Agreement is $140.5 billion. Any future draws will reduce this amount.

1 Senior preferred stock outstanding of $72.3 billion at March 31, 2014 includes cumulative draws of $71.3 billion plus the initial liquidation preference of $1 billion. 5
$0.2 $4.1 $5.7 $6.5 $7.2 

$47.6 

$10.4 

2008 2009 2010 2011 2012 2013 YTD

2014

$44.6 

$6.1 

$13.0 

$7.6 

$0.02 $0.0 $0.0 

2008 2009 2010 2011 2012 2013 YTD

2014

Draw Requests from Treasury Dividend Payments to Treasury

6

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 Amounts may not add due to rounding.

3 Amount does not include the June 2014 dividend obligation of $4.5 billion.

4 Annual amounts represent the total draws requested based on Freddie Mac’s quarterly net deficits for the periods presented. Draw requests are funded in the subsequent quarter 

(e.g., $19 million draw request for 1Q 2012 was funded in 2Q 2012).

5 Represents quarterly cash dividends paid by Freddie Mac to Treasury during the periods presented. Through December 31, 2012, Treasury was entitled to receive cumulative 

quarterly cash dividends at the annual rate of 10% per year on the liquidation preference of the senior preferred stock. However, the fixed dividend rate was replaced with a net 

worth sweep dividend payment beginning in the first quarter of 2013. See the company’s Annual Report on Form 10-K for the year ended December 31, 2013 for more information. 

$ Billions

4 5

Draws From Treasury Dividend Payments to Treasury

3

($ Billions) Cumulative 

Total

Total Senior Preferred Stock 

Outstanding $72.3

Less: Initial Liquidation Preference1 $1.0

 Treasury Draws $71.3

($ Billions) Cumulative 

Total

Dividend Payments as of 03/31/14 $81.8

2Q 2014 Dividend Obligation $4.5

 Total Dividend Payments2 $86.3
7

Total equity and Senior Preferred Stock activity

1 See the company’s 10-Q for the quarter ended March 31, 2014 for a description of the company’s dividend obligation to Treasury.

2 Includes the initial liquidation preference of Freddie Mac’s senior preferred stock of $1.0 billion.

Note: Columns may not add due to rounding.

($ Billions)

1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014

1 Beginning balance - Total equity / GAAP net worth $8.8 $10.0 $7.4 $33.4 $12.8

2 Capital draw funded by Treasury - - - - -

3 Net income 4.6 5.0 30.5 8.6 4.0

4 Total other comprehensive income (loss), net of taxes 2.4 (0.6) (0.0) 1.2 0.5

5 Comprehensive income 7.0 4.4 30.4 9.8 4.5

6 Dividends paid to Treasury (5.8) (7.0) (4.4) (30.4) (10.4)

7 Other - - - - -

8 Ending balance - Total equity / GAAP net worth1 $10.0 $7.4 $33.4 $12.8 $6.9

9 Aggregate liquidation preference of the senior preferred stock2 $72.3 $72.3 $72.3 $72.3 $72.3

10 Remaining senior preferred stock funding available $140.5 $140.5 $140.5 $140.5 $140.5
20

25 27

38

51

2009 2010 2011 2012 2013

8

Single-family guarantee fees charged on new 

acquisitions

1 Effective April 1, 2012, guarantee fees charged on single-family loans sold to Freddie Mac were increased by 10 basis points. Under the Temporary Payroll Tax Cut Continuation Act 

of 2011, Freddie Mac is required to remit the proceeds from this increase to Treasury. Given the April 1, 2012 effective date, the impact of the increase on average guarantee fees for 

full-year 2012 was 7.5 basis points. 

2 Represents the estimated rate of management and guarantee fees for new acquisitions during the period assuming amortization of delivery fees using the estimated life of the related 

loans rather than the original contractual maturity date of the related loans. Also includes the effect of pricing adjustments that are based on the relative performance of our PCs 

compared to comparable Fannie Mae securities. 

Quarterly

In Basis Points, Annualized

Annual

In Basis Points

1

Legislated 10 Basis Point Guarantee Fee Remitted to Treasury

Single-Family Guarantee Fee Charged on New Acquisitions (excluding amounts remitted to Treasury) 2

1

49 51

53 55 56

1Q

2013

2Q

2013

3Q

2013

4Q

2013

1Q

2014
$0.5

$0.6 

$1.0

3Q13 4Q13 1Q14

Structured Agency Credit Risk (STACR®) debt note 

issuances

9

$ Billions

1 The reference pool for the April 2014 STACR debt note issuance represented an unpaid principal balance of $28.1 billion.

2 Includes the first loss risk held by Freddie Mac.

($ Billions) Cumulative 

Total

STACR Debt Note Issuance as of 03/31/14 $2.1

April 2014 Issuance1 $1.0

 Total Issuance $3.1

$22.6 $35.3 $32.4

STACR Reference Pool2

($ Billions)
($3.3) ($2.9) ($3.0)

($2.5) ($2.1) ($1.9)

($0.6) ($0.4) ($0.9) 

$1.8 

$0.2 

$0.6 

($0.7) ($0.5) ($0.6)

($1.1)

($0.2)

$0.1 

$38.3

$35.8

$33.8

$30.9

$28.6

$26.4 $25.0 $24.7 $24.1

1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014

Net Charge-offs Provision (Benefit) Loan Loss Reserves (Period End Balances)

10

Loan loss reserves

 1 

1 Includes amounts related to certain loans purchased under financial guarantees and reflected within other expenses on the company’s consolidated statements of comprehensive 

income.

2 Consists of the allowance for loan losses and the reserve for guarantee losses. 

 2

$ Billions
8k 

14k 

16k 

4k 

5k 

8k 

14k 13k 

4k 

5k

Northeast Southeast North Central Southwest West

12/31/13 03/31/14

47,308 43,567 

14,385

(18,126) 

12/31/13

 Inventory

Acquisitions Dispositions 03/31/14

 Inventory

11

Real estate owned1

Property Inventory 

1Q 2014 Activity

Geographic Distribution2

Based on Number of Properties in Inventory

Historical Trend

Ending Property Inventory

1 Includes single-family and multifamily REO. Multifamily ending property inventory was 1 property as of December 31, 2013 and 2 properties as of March 31, 2014.

2 Region designation: West (AK, AZ, CA, GU, HI, ID, MT, NV, OR, UT, WA); Northeast (CT, DE, DC, MA, ME, MD, NH, NJ, NY, PA, RI, VT, VA, WV); Southeast (AL, FL, GA, KY, MS, 

NC, PR, SC, TN, VI); North Central (IL, IN, IA, MI, MN, ND, OH, SD, WI); and Southwest (AR, CO, KS, LA, MO, NE, NM, OK, TX, WY).

((Number of Properties)

 In 1Q14, REO inventory declined primarily due to lower single-family foreclosure activity 

as a result of Freddie Mac’s loss mitigation efforts and a declining amount of delinquent 

loans.

 The Southeast region comprised 31 percent of the company’s REO property inventory at 

March 31, 2014. In this region, Florida comprised 20 percent of the company’s singlefamily inventory at March 31, 2014 and has been one of the states with high REO severity 

rates in the last several years.

 The North Central region comprised 30 percent of Freddie Mac’s REO property inventory 

as of March 31, 2014. This region generally has experienced more challenging economic 

conditions, and includes a number of states with longer foreclosure timelines due to the 

local laws and foreclosure process for single-family mortgage loans. Seven of the nine 

states in the North Central region require a judicial foreclosure process. The North Central 

region experienced a decline in REO acquisition activity during 1Q14 compared to 4Q13 

primarily due to a decline in the number of loans that transitioned to serious delinquency

in recent periods.

((Number of Properties)

((Number of Properties)

59k 

47k 

53k 

51k 

49k 48k

45k 

47k

44k

1Q

2012

2Q

2012

3Q

2012

4Q

2012

1Q

2013

2Q

2013

3Q

2013

4Q

2013

1Q

2014
12

Market liquidity provided

Number of Families Freddie Mac Helped 

to Own or Rent a Home1

In Thousands

Purchase and Issuance Volume2

(Single-Family and Multifamily)

$ Billions

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 Includes cash purchases of single-family and multifamily mortgage loans, issuances of Freddie Mac mortgage-related securities through the company’s guarantor swap program, 

issuances of other guarantee commitments, issuances of other structured securities and purchases of non-Freddie Mac mortgage-related securities.

$546

$406

$349

$456 $453

$138 $138

$106 $71 $52

0

100

200

300

400

500

600

2009 2010 2011 2012 2013 1Q

2013

2Q

2013

3Q

2013

4Q

2013

1Q

2014

2,480

2,089

1,830

2,472 2,458

723 743

545 447

295

0

500

1,000

1,500

2,000

2,500

3,000

2009 2010 2011 2012 2013 1Q

2013

2Q

2013

3Q

2013

4Q

2013

1Q

2014

Number of Families Freddie Mac Helped to Own or Rent a Home1 (In Thousands)

 Refinance borrowers (includes HARP)

 Purchase borrowers

 Multifamily rental units

Freddie Mac Purchase and Issuance Volume2

Cumulative Totals 

Since 2009

11,624

$2.3 Trillion

7,815

2,136

1,673
13

Single-family refinance activity1

1 Consists of all single-family refinance mortgage loans that the company either purchased or guaranteed during the period, including those associated with other guarantee commitments and 

Other Guarantee Transactions. 

2 Some loans have multiple borrowers, but the company has counted them as one borrower for this purpose. For the periods presented, a borrower may be counted more than once if the 

company purchased more than one refinance loan relating to the same borrower.

3 The relief refinance mortgage initiative is Freddie Mac’s implementation of the Home Affordable Refinance Program (HARP). Under the program, the company allows eligible borrowers who 

have mortgages with high current LTV ratios to refinance their mortgages without obtaining new mortgage insurance in excess of what was already in place. HARP is targeted at borrowers 

with current LTV ratios above 80%; however, Freddie Mac’s program also allows borrowers with LTV ratios at or below 80% to participate. 

2009 2010 2011 2012 2013 1Q

2014

Cumulative 

Total

Number of Borrowers2 (In Thousands)

Other Refinance 1,595 947 740 996 944 81 5,303

Relief Refinance - LTV ≤ 80% 83 324 268 253 270 29 1,227

Relief Refinance - LTV > 80% to 100% (HARP) 3 72 166 126 191 168 17 740

Relief Refinance - LTV > 100% to 125% (HARP) 3 14 43 59 144 110 9 379

Relief Refinance - LTV > 125% (HARP) 3 0 0 0 99 63 4 166

 Total Number of Borrowers 1,764 1,480 1,193 1,683 1,555 140 7,815

$ Volume (In Billions)

Other Refinance $345 $200 $168 $228 $210 $17 $1,168

Relief Refinance - LTV ≤ 80% $15 $58 $42 $36 $37 $4 $192

Relief Refinance - LTV > 80% to 100% (HARP) 3 $17 $38 $27 $37 $30 $2 $151

Relief Refinance - LTV > 100% to 125% (HARP) 3 $3 $10 $13 $30 $21 $2 $79

Relief Refinance - LTV > 125% (HARP) 3 $0 $0 $0 $20 $11 $1 $32

 Total $ Volume $380 $306 $250 $351 $309 $26 $1,622
0

30

60

1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014

Number of Loans 

(000) 

0

50

100

150

200

250

300

2009 2010 2011 2012 2013

Number of Loans

(000)

Repayment plans

14

Loan modifications Forbearance agreements Short sales and deed-in-lieu of foreclosure transactions

Single-family loan workouts1

Home Retention Actions 2 Foreclosure Alternatives 2

 133

 275

 46

41 41 208

1 Consists of both home retention actions and foreclosure alternatives.

2 These categories are not mutually exclusive and a borrower in one category may also be included within 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 or a short sale or deed-in-lieu transaction in a later period.

40

 169 168 34

Number of Families Avoiding Foreclosure1 (In Thousands)

Families Retaining Homes

Cumulative Totals Since 

2009

987

8 out of every 10
0

10

20

30

1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014

Number of 

Loans

(000)

0

40

80

120

160

200

2009 2010 2011 2012 2013

Number of 

Loans

(000)

No change in terms Term extension

Change in interest rate, and in certain cases, term extension Change in interest rate, term extension and 

principal forbearance 

15

Single-family loan modifications

1 Includes completed loan modifications under HAMP and under the company’s other modification programs. Excludes those loan modification activities for which the borrower has 

started the required process, but the modification has not been made permanent or effective, such as loans in a modification trial period.

2 Principal forbearance is a change to a loan’s terms to designate a portion of the principal as non-interest bearing and non-amortizing.

Note: Totals may not recalculate due to rounding.

Single-family Loan Modifications 

(HAMP and non-HAMP) 1

2

65

170

109

21 19 21

70

23

83

19
16

Quarterly Percentages of Modified Single-Family Loans

(HAMP and non-HAMP) 1

Performance of single-family modified loans

1 Represents the percentage of loans that are current and performing (no payment is 30 days or more past due) or have been paid in full. Excludes loans in modification trial periods.

2 Loan modifications are recognized as completed in the quarterly period in which the servicer has reported the modification as effective and the agreement has been accepted by the 

company. For loans that have been remodified (e.g., where a borrower has received a new modification after defaulting on the prior modification) the rates reflect the status of each 

modification separately. For example, in the case of a remodified loan where the borrower is performing, the previous modification would be presented as being in default in the 

applicable period.

Time Since Modification 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013

3 to 5 months 85% 87% 84% 85% 86% 85% 84% 83%

6 to 8 months 80% 83% 82% 81% 81% 79% 82% N/A

9 to 11 months 77% 81% 78% 78% 78% 80% N/A N/A

12 to 14 months 76% 78% 76% 75% 78% N/A N/A N/A

15 to 17 months 74% 77% 73% 76% N/A N/A N/A N/A

18 to 20 months 73% 75% 74% N/A N/A N/A N/A N/A

21 to 23 months 71% 76% N/A N/A N/A N/A N/A N/A

24 to 26 months 73% N/A N/A N/A N/A N/A N/A N/A

% Current and Performing

Quarter of Loan Modification Completion2
17

Administrative expenses

Quarterly Annual

$1,685 $1,597 $1,506 $1,561

$1,805

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2009 2010 2011 2012 2013

$ Millions

$432 $444 $455 $474 $468

0

200

400

600

1Q

2013

2Q

2013

3Q

2013

4Q

2013

1Q

2014

$ Millions
Mortgage-related investments portfolio ending balance

Mortgage-related investments portfolio limit

18

Purchase Agreement portfolio limits

Indebtedness 1, 3

($ Billions)

Mortgage Assets 1, 2

($ Billions)

1 The company’s Purchase Agreement with Treasury limits the amount of mortgage assets the company can own and indebtedness it can incur. Under the Purchase Agreement, 

mortgage assets and indebtedness are calculated without giving effect to the January 1, 2010 change in the accounting guidance related to the transfer of financial assets and 

consolidation of variable interest entities (VIEs). See the company’s Annual Report on Form 10-K for the year ended December 31, 2013 for more information. 

2 Represents the unpaid principal balance (UPB) of the company’s mortgage-related investments portfolio. The company discloses its mortgage assets on this basis monthly in its 

Monthly Volume Summary reports, which are available on its Web site and in Current Reports on Form 8-K filed with the Securities and Exchange Commission (SEC).

3 Represents the par value of the company’s unsecured short-term and long-term debt securities issued to third parties to fund its business activities. The company discloses its 

indebtedness on this basis monthly in its Monthly Volume Summary reports, which are available on its Web site and in Current Reports on Form 8-K filed with the SEC.

Indebtedness limit

Total debt outstanding

$461 $434

$553 $553 $553 $553 

$470

12/31/13 03/31/14 06/30/14 09/30/14 12/31/14

$511 

$458

$780

$663 $663 $663 $663 

$564 

12/31/13 03/31/14 06/30/14 09/30/14 12/31/14 01/01/15
19

Credit

Supplement
1 National home prices use the Freddie Mac House Price Index for the U.S., which is a value-weighted average of the state indexes where the value weights are based on Freddie Mac’s 

single-family credit guarantee portfolio. Other indices of home prices may have different results, as they are determined using different pools of mortgage loans and calculated under 

different conventions than Freddie Mac’s. The Freddie Mac House Price Index for the U.S. is a non-seasonally adjusted monthly series; quarterly growth rates are calculated as a 3-month 

change based on the final month of each quarter. Seasonal factors typically result in stronger house-price appreciation during the second and third quarters. Historical quarterly growth 

rates change as new data becomes available. Values for the most recent periods typically see the largest changes. Cumulative decline calculated as the percent change from June 2006 

to March 2014. 

 Source: Freddie Mac. 20

National home prices have experienced a cumulative 

decline of 15% since June 20061

3.0 

4.8 

2.7 

0.4

1.3 

2.1

(0.8) 

(1.6) 

0.8 0.8

(2.2)

(4.4)

(3.2) 

(0.9)

(2.9)

(5.4)

(2.7)

1.2

0.0 

(1.6)

(0.3)

0.7 

(2.5)(2.8)

(1.2)

1.1

(1.1)

(2.0)

0.5 

4.1 

1.2 

0.2 

2.8 

5.4 

1.6

(0.7)

1.2

(6)

(4)

(2)

0

2

4

6

1Q

2005

4Q

2005

3Q

2006

2Q

2007

1Q

2008

4Q

2008

3Q

2009

2Q

2010

1Q

2011

4Q

2011

3Q

2012

2Q

2013

1Q

2014

Percent 

(%)
-6%

AL

4%

AK

≥ 0%

-13 to -1%

≤-22%

-21 to -14%

-4%

AR

-28%

AZ

-20%

CA

7%

CO

CT -23%

DC 26%

DE -16%

 -35%

FL

-16%

GA

 0%

HI

1%

IA

-16%

ID

-24%

IL

-5%

IN

-1%

KS KY -4%

2%

LA

-11%

-21%

-15%

ME

-21%

MI

-17%

MN

-13%

MO

-7%

MS

4%

MT

NC -7%

38%

ND

2%

NE

-12%

NM

-41%

NV

-11%

NY

-15%

OH

7%

OK

-11%

OR

-9%

PA

RI -29%

-9%

SC

9%

SD

TN -1%

17%

TX

0%

UT -14%

VA

-6%

VT

-14%

WA

-16%

WI

 1%

WV

6%

WY

-20%

NH

MA

MD

NJ -23%

Home price performance by state

June 2006 to March 20141

United States -15%

1 The Freddie Mac House Price Index for the U.S. is a value-weighted average of the state indexes where the value weights are based on Freddie Mac’s single-family credit 

guarantee portfolio. Other indices of home prices may have different results, as they are determined using different pools of mortgage loans and calculated under different 

conventions. The Freddie Mac House Price Index for the U.S. is a non-seasonally adjusted monthly series.

Source: Freddie Mac

21
6%

AL

1%

AK

≥ 9%

4 to 8%

-3 to 0%

1 to 3%

-1%

AR

12%

AZ

16%

CA

8%

CO

CT 0%

DC 10%

DE 5%

9%

FL

9%

GA

8%

HI

3%

IA

6%

ID

6%

IL

3%

IN

3%

KS KY 1%

2%

LA

4%

-3%

ME

11%

MI

6%

MN

4%

MO

1%

MS

7%

MT

NC 3%

6%

ND

4%

NE

NJ 2%

2%

NM

18%

NV

2%

NY

4%

OH

2%

OK

11%

OR

0%

PA

RI 2%

4%

SC

2%

SD

TN 5%

8%

TX

7%

UT

3%

VA

7%

WA

3%

WI

 1%

WV

4%

WY

3%

0%

VT

6%

MD

MA

NH

Home price performance by state

March 2013 to March 20141

United States 8%

1 The Freddie Mac House Price Index for the U.S. is a value-weighted average of the state indexes where the value weights are based on Freddie Mac’s single-family credit 

guarantee portfolio. Other indices of home prices may have different results, as they are determined using different pools of mortgage loans and calculated under different 

conventions. The Freddie Mac House Price Index for the U.S. is a non-seasonally adjusted monthly series.

Source: Freddie Mac

22
0

4

8

12

16

20

24

28

32

Mar09Jun09Sep09Dec09Mar10Jun10Sep10Dec10Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13

Seriously Delinquent (%) 

 Total Mortgage Market Prime Subprime Freddie Mac

23

1 Source: National Delinquency Survey from the Mortgage Bankers Association. Categories represent first lien single-family loans. Data is not yet available for the first quarter of 2014. 

2 See “MD&A – RISK MANAGEMENT – Credit Risk – Mortgage Credit Risk – Single-Family Mortgage Credit Risk – Credit Performance – Delinquencies” in Freddie Mac’s Form 10-K for 

the year ended December 31, 2013, for information about the company’s reported delinquency rates. The single-family serious delinquency rate at March 31, 2014 was 2.20%. 

1 1 1

19.92%

5.41%

3.08%

2.39%

Single-family Serious Delinquency Rates 

Mortgage market and Freddie Mac serious delinquency 

rates

 2
44 53 47 41

20 20 22 18 27

47

56 47 53 59

73

52 52 53

50

35 

4

12 12 20 15 10 

3

16 14 9 8 8 

2005 2006 2007 2008 2009 2010 2011 2012 2013 1Q

2014

Purchase Other Refinance HARP Relief Refinance (Non-HARP)

24

Total 

Refinance 

Loans:

53%

Loan purpose of single-family credit guarantee 

portfolio purchases

1 The relief refinance mortgage initiative is Freddie Mac’s implementation of the Home Affordable Refinance Program (HARP). Under the program, the company allows eligible 

borrowers who have mortgages with high current LTV ratios to refinance their mortgages without obtaining new mortgage insurance in excess of what was already in place. HARP is 

targeted at borrowers with current LTV ratios above 80%; however, Freddie Mac’s relief refinance initiative also allows borrowers with LTV ratios at or below 80% to participate. 

1 1

Percent (%)
25

Credit quality of single-family credit guarantee portfolio 

purchases

1 Original LTV ratios are calculated as the unpaid principal balance (UPB) of the mortgage Freddie Mac guarantees including the credit-enhanced portion, divided by the lesser of the 

appraised value of the property at the time of mortgage origination or the mortgage borrower’s purchase price. Second liens not owned or guaranteed by Freddie Mac are excluded 

from the LTV ratio calculation. The existence of a second lien mortgage reduces the borrower’s equity in the home and, therefore, can increase the risk of default.

2 Credit score data is based on FICO scores at the time of origination and may not be indicative of the borrowers’ current creditworthiness. FICO scores can range between 

approximately 300 to 850 points.

3 HARP is the portion of the company’s relief refinance initiative targeted at borrowers with current LTV ratios above 80%. 

2009 2010 2011 2012 2013 1Q 

2014

Weighted Average Original LTV Ratio1

Relief refinance (includes HARP) 80% 77% 77% 97% 91% 86%

All other 66% 67% 67% 68% 71% 75%

 Total purchases 67% 70% 70% 76% 75% 77%

Weighted Average Credit Score2

Relief refinance (includes HARP) 738 747 744 740 727 711

All other 757 758 759 762 756 747

 Total purchases 756 755 755 756 749 740

2009 2010 2011 2012 2013 1Q

2014

Purchase of Relief Refinance Mortgages > 80% LTV (HARP loans)3

$ Billions $19.6 $47.9 $39.7 $86.9 $62.5 $5.2

% of single-family credit guarantee portfolio purchases 4% 12% 12% 20% 15% 10%
26

Single-family 1Q 2014 credit losses and REO 

by region and state

1 Based on the unpaid principal balance (UPB) of the single-family credit guarantee portfolio at March 31, 2014. 

2 UPB amounts exclude $394 million of Other Guarantee Transactions since these securities are backed by non-Freddie Mac issued securities for which loan characteristic data was not 

available. 

3 Based on the number of loans that are three monthly payments or more past due or in the process of foreclosure. 

4 Based on the UPB of loans at the time of REO acquisition. 

5 Consist of the aggregate amount of charge-offs, net of recoveries, and REO operations (income) expense for 1Q 2014.

6 Region designation: West (AK, AZ, CA, GU, HI, ID, MT, NV, OR, UT, WA); Northeast (CT, DE, DC, MA, ME, MD, NH, NJ, NY, PA, RI, VT, VA, WV); Southeast (AL, FL, GA, KY, MS, NC, 

PR, SC, TN, VI); North Central (IL, IN, IA, MI, MN, ND, OH, SD, WI); and Southwest (AR, CO, KS, LA, MO, NE, NM, OK, TX, WY).

7 Represents the four states that had the largest cumulative declines in home prices during the housing crisis that began in 2006, as measured using Freddie Mac’s home price index.

8 Represents selected states in the North Central region that have experienced adverse economic conditions since 2006.

9 Represents two states with a judicial foreclosure process in which there are a significant number of seriously delinquent loans within Freddie Mac’s single-family credit guarantee 

portfolio.

($ Billions) % of Total

UPB2

($ Millions) % of Total

Serious 

Delinquency 

Rate3 

(%)

1Q 2014 

Acquisitions

($ Millions)

REO

Inventory

($ Millions)

% of Total

Inventory ($ Millions) % of Total

Region6

1 West $465 28% $7,896 20% 1.55% $423 $1,080 15% $79 8%

2 Northeast 430 26 15,014 38 3.10% 411 1,517 22 258 27

3 North Central 289 18 5,118 13 1.67% 422 1,778 26 228 23

4 Southeast 272 16 9,378 23 3.07% 810 2,125 30 356 37

5 Southwest 195 12 2,242 6 1.25% 151 461 7 46 5

6 Total $1,651 100% $39,648 100% 2.20% $2,217 $6,961 100% $967 100%

State

7 Arizona, California, Florida & Nevada7 $423 26% $11,204 28% 2.63% $861 $2,130 31% $310 32%

8 Illinois, Michigan & Ohio8 174 10 3,732 10 1.95% 291 1,326 19 168 17

9 New York & New Jersey9 145 9 8,759 22 4.98% 91 274 4 103 11

10 All other 909 55 15,953 40 1.72% 974 3,231 46 386 40

11 Total $1,651 100% $39,648 100% 2.20% $2,217 $6,961 100% $967 100%

Total Portfolio UPB1 Seriously Delinquent Loans REO Acquisitions & Balance4 Credit Losses5
0

1

2

3

4

5

6

1Q

 2011

2Q

2011

3Q

2011

4Q

2011

1Q

2012

2Q

 2012

3Q

2012

4Q

2012

1Q

2013

2Q

2013

3Q

2013

4Q

2013

1Q

2014

Percent

West Northeast North Central Southeast Southwest Total

0

2

4

6

8

10

12

14

1Q

 2011

2Q

2011

3Q

2011

4Q

2011

1Q

2012

2Q

 2012

3Q

2012

4Q

2012

1Q

2013

2Q

2013

3Q

2013

4Q

2013

1Q

2014

Percent

California Florida Illinois New Jersey New York Total

1.2%

Single-family serious delinquency rates by state and 

region

27

Single-family Serious Delinquency Rates 

By State1,2

Single-family Serious Delinquency Rates 

By Region1,3

1 Based on the number of loans that are three monthly payments or more past due or in the process of foreclosure. See “MD&A – RISK MANAGEMENT – Credit Risk – Mortgage 

Credit Risk – Single-Family Mortgage Credit Risk – Credit Performance – Delinquencies” in Freddie Mac’s Form 10-K for the year ended December 31, 2013, for information about 

the company’s reported delinquency rates. 

2 States presented are those with the highest number of seriously delinquent loans within Freddie Mac’s single-family credit guarantee portfolio as of March 31, 2014. 

3 Region designation: West (AK, AZ, CA, GU, HI, ID, MT, NV, OR, UT, WA); Northeast (CT, DE, DC, MA, ME, MD, NH, NJ, NY, PA, RI, VT, VA, WV); Southeast (AL, FL, GA, KY, MS, 

NC, PR, SC, TN, VI); North Central (IL, IN, IA, MI, MN, ND, OH, SD, WI); and Southwest (AR, CO, KS, LA, MO, NE, NM, OK, TX, WY).

1.7%

2.2%

3.1%

3.1%

5.6%

6.0%

2.2%

2.5%

4.3%

1.3%

1.6%
Aging of single-family seriously delinquent loans by 

judicial and non-judicial states

28

1 Excludes loans underlying certain single-family Other Guarantee Transactions since the geographic information is not available to us for these loans. As of March 31, 2014, the 

states and territories classified as having a judicial foreclosure process consist of: CT, DE, FL, HI, IA, IL, IN, KS, KY, LA, ME, ND, NE, NJ, NM, NY, OH, OK, OR, PA, PR, SC, SD, VI, 

VT and WI. All other states are classified as having a non-judicial foreclosure process. Judicial foreclosures are those conducted under the supervision of a court.

# of Seriously 

Delinquent 

Loans

Percent

# of Seriously 

Delinquent 

Loans

Percent

# of Seriously 

Delinquent 

Loans

Percent

Judicial Review States1

 Less than or equal to 1 year 73,887 23% 59,129 23% 54,249 23%

 More than 1 year and less than or equal to 2 years 45,464 14% 30,604 12% 27,853 12%

 More than 2 years 76,125 24% 65,154 26% 61,022 26%

Non-Judicial States1

 Less than or equal to 1 year 78,209 24% 60,175 24% 54,636 24%

 More than 1 year and less than or equal to 2 years 26,764 8% 17,968 7% 16,263 7%

 More than 2 years 23,062 7% 19,731 8% 18,427 8%

Combined1

 Less than or equal to 1 year 152,096 47% 119,304 47% 108,885 47%

 More than 1 year and less than or equal to 2 years 72,228 22% 48,572 19% 44,116 19%

 More than 2 years 99,187 31% 84,885 34% 79,449 34%

Total 323,511 100% 252,761 100% 232,450 100%

As of 03/31/13 As of 12/31/13 As of 03/31/14
29

Single-family credit guarantee portfolio characteristics1

1 Portfolio characteristics are based on the unpaid principal balance (UPB) of the single-family credit guarantee portfolio. Approximately $1 billion in UPB for Other Guarantee Transactions 

is included in total UPB and percentage seriously delinquent but not included in the calculation of other statistics since these securities are backed by non-Freddie Mac issued securities for 

which loan characteristic data was not available. 

2 For a description of Alt-A, see the “Glossary” in the company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014. 

3 Beginning September 1, 2010, the company fully discontinued purchases of interest-only loans.

4 Represents the FICO score of the borrower at loan origination. The company estimates that less than 1% of loans within the portfolio are missing origination FICO scores and as such are 

excluded. 

5 Indicates year of loan origination (except for HARP and other relief refinance loans). Calculated based on the loans remaining in the portfolio as of March 31, 2014, rather than all loans 

originally guaranteed by the company and originated in the respective year. Each Book Year category represents the percentage of loans referenced in line 1 of the same vertical column. 

Individual book years exclude HARP and other relief refinance loans originated in that year. See endnote (6). 

6 HARP and other relief refinance loans are presented separately rather than in the year in which the refinancing occurred (from 2009 to 2014). All other refinance loans are presented 

within the year that the refinancing occurred.

7 Excludes credit enhancement coverage occurring subsequent to the company’s purchase or guarantee, such as STACR debt notes or other risk transfer transactions (i.e., K certificate 

transactions). Including subsequently obtained coverage, the percentage for the total portfolio with credit enhancement was 19% as of March 31, 2014.

8 Based on the number of loans that are three monthly payments or more past due or in the process of foreclosure. 

Note: Individual categories are not mutually exclusive, and therefore are not additive across columns. 

Option FICO FICO

Original 

LTV

FICO < 620 & 

Original 

Attribute Alt-A2 Interest-only3 ARM < 6204 620 - 6594 > 90% LTV > 90%4

1 UPB $ Billions $1,651 $55 $33 $6 $47 $95 $261 $13

2 Percent of Total Portfolio 100% 3% 2% 0% 3% 6% 16% 1%

3 Average UPB per loan $154,848 $154,270 $223,688 $197,819 $126,234 $132,838 $169,771 $137,156

4 Fixed Rate (% of total portfolio) 94% 63% 17% 0% 95% 94% 98% 98%

5 Owner Occupied 90% 82% 80% 76% 95% 93% 91% 95%

6 Original Loan-to-Value (OLTV) 75% 73% 74% 71% 81% 80% 107% 107%

7 OLTV > 90% 16% 4% 3% 2% 27% 23% 100% 100%

8 Current Loan-to-Value (CLTV) 69% 86% 91% 84% 82% 79% 97% 102%

9 CLTV > 90% 16% 44% 50% 39% 36% 32% 59% 67%

10 CLTV > 100% 9% 31% 34% 26% 25% 21% 33% 48%

11 CLTV > 110% 5% 21% 21% 17% 16% 13% 20% 31%

12 Average FICO Score4 739 710 718 707 584 643 725 582

13 FICO < 6204 3% 5% 3% 4% 100% 0% 5% 100%

Book Year5

14 2014 1% 0% 0% 0% 0% 1% 1% 0%

15 2013 17% 0% 0% 0% 1% 6% 11% 1%

16 2012 16% 0% 0% 0% 1% 3% 7% 0%

17 2011 7% 0% 0% 0% 1% 2% 2% 0%

18 2010 7% 0% 1% 0% 1% 3% 2% 0%

19 2009 7% 0% 1% 0% 2% 3% 1% 1%

20 New single-family book (2009 to 2014) 55% 0% 2% 0% 6% 18% 24% 2%

21 HARP and other relief refinance loans6 21% 0% 0% 0% 30% 23% 60% 56%

22 2005 to 2008 Legacy single-family book 15% 84% 94% 71% 43% 39% 10% 26%

23 Pre-2005 Legacy single-family book 9% 16% 4% 29% 21% 20% 6% 16%

24 % of Loans with Credit Enhancement7 13% 11% 9% 15% 22% 19% 49% 52%

25 % Seriously Delinquent8 2.20% 9.66% 11.55% 11.67% 9.29% 6.65% 2.93% 8.87%

Total Portfolio 

as of 

March 31, 2014
30

Single-family credit profile by book year and product 

feature1

1 Portfolio characteristics are based on the unpaid principal balance (UPB) of the single-family credit guarantee portfolio. Approximately $1 billion in UPB for Other Guarantee Transactions 

is included in total UPB and percentage seriously delinquent but not included in the calculation of other statistics since these securities are backed by non-Freddie Mac issued securities for 

which loan characteristic data was not available. 

2 Indicates year of loan origination (except for HARP and other relief refinance loans). Calculated based on the loans remaining in the portfolio as of March 31, 2014, rather than all loans 

originally guaranteed by the company and originated in the respective year. Individual book years exclude HARP and other relief refinance loans originated in that year. See endnote (3). 

3 HARP and other relief refinance loans are presented separately rather than in the year in which the refinancing occurred (from 2009 to 2014). All other refinance loans are presented within 

the year that the refinancing occurred.

4 Represents the average of the borrowers’ FICO scores at origination. The company estimates that less than 1% of loans within the portfolio are missing FICO scores and as such are 

excluded. 

5 Beginning September 1, 2010, the company fully discontinued purchases of interest-only loans.

6 Represents the four states that had the largest cumulative declines in home prices during the housing crisis that began in 2006, as measured using Freddie Mac’s home price index.

7 Represents selected states in the North Central region that have experienced adverse economic conditions since 2006.

8 Represents two states with a judicial foreclosure process in which there are a significant number of seriously delinquent loans within Freddie Mac’s single-family credit guarantee portfolio.

9 Excludes credit enhancement coverage occurring subsequent to the company’s purchase or guarantee, such as STACR debt notes or other risk transfer transactions (i.e., K certificate 

transactions). Including subsequently obtained coverage, the percentage for the total portfolio with credit enhancement was 19% as of March 31, 2014.

10 Based on the number of loans that are three monthly payments or more past due or in the process of foreclosure.

Attribute 2014 2013 2012 2011 2010 2009

New singlefamily book 

(2009 to 2014)

HARP and 

other relief 

refinance 

loans3

2005 to 2008 

Legacy singlefamily book

Pre-2005 

Legacy singlefamily book

1 UPB $ Billions $1,651 $20 $285 $260 $116 $110 $116 $907 $343 $255 $146

2 Original Loan-to-Value (OLTV) 75% 75% 71% 69% 69% 69% 69% 70% 89% 75% 73%

3 OLTV > 90% 16% 14% 10% 7% 5% 4% 3% 7% 45% 11% 11%

4 Current Loan-to-Value (CLTV) 69% 75% 68% 60% 58% 59% 62% 63% 80% 86% 49%

5 CLTV > 100% 9% 0% 0% 0% 0% 0% 1% 0% 20% 28% 2%

6 CLTV > 110% 5% 0% 0% 0% 0% 0% 0% 0% 12% 18% 1%

7 Average FICO Score4 739 747 754 761 756 754 751 756 735 703 710

8 FICO < 6204 3% 0% 0% 0% 0% 0% 1% 0% 4% 8% 7%

9 Adjustable-rate 6% 6% 5% 5% 8% 4% 1% 5% 1% 15% 12%

10 Interest-only5 2% 0% 0% 0% 0% 0% 0% 0% 0% 12% 1%

11 Investor 6% 7% 6% 4% 5% 5% 3% 5% 9% 6% 5%

12 Condo 7% 8% 7% 5% 5% 6% 7% 6% 9% 11% 8%

Geography

13 Arizona, California, Florida & Nevada6 26% 32% 27% 26% 21% 18% 17% 24% 28% 31% 22%

14 Illinois, Michigan & Ohio7 10% 8% 10% 10% 9% 10% 9% 10% 13% 9% 14%

15 New York & New Jersey8 9% 7% 8% 7% 10% 9% 10% 8% 8% 10% 11%

16 All other states 55% 53% 55% 57% 60% 63% 64% 58% 51% 50% 53%

17 % of Loans with Credit Enhancement9 13% 24% 18% 13% 10% 8% 8% 13% 12% 18% 10%

18 % Seriously Delinquent10 2.20% 0.00% 0.01% 0.05% 0.20% 0.40% 0.87% 0.24% 0.65% 8.25% 3.16%

Total Portfolio 

as of 

March 31, 2014

Book Year 2
0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

11.00%

12.00%

Yr1

Q1

Yr1

Q3

Yr2

Q1

Yr2

Q3

Yr3

Q1

Yr3

Q3

Yr4

Q1

Yr4

Q3

Yr5

Q1

Yr5

Q3

Yr6

Q1

Yr6

Q3

Yr7

Q1

Yr7

Q3

Yr8

Q1

Yr8

Q3

Yr9

Q1

Yr9

Q3

Yr10

Q1

Yr10

Q3

Yr11

Q1

Cumulative Foreclosure Transfer and Short Sale Rate

Quarter Post Origination

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

31

Single-family cumulative foreclosure transfer and 

short sale rates1 by book year

1 Rates are calculated for each year of origination as the number of loans that have proceeded to foreclosure transfer or short sale and resulted in a credit loss, excluding any 

subsequent recoveries, divided by the number of loans originated in that year that were acquired in the company’s single-family credit guarantee portfolio. Includes Other Guarantee 

Transactions where loan characteristic data is available. 

2007

2006

2005

2004

2014

2008

2009 2011 2010 2013 2012
32

Total Multifamily (MF) Portfolio

UPB $ Billions

Multifamily portfolio composition

$167 $165

$135

$154

$164 $169 $177 $180

12/31/07 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 03/31/14

MF loan portfolio MF investment securities portfolio MF guarantee portfolio
$2.1

$6.4

$13.7

$21.2

$28.0

$3.9

2009 2010 2011 2012 2013 YTD

2014

33

K-Deal Securitization Volume1

UPB $ Billions

Multifamily securitization volume

1 Total UPB represents the total collateral UPB of multifamily loans sold via Freddie Mac’s K Certificate transactions.

2 Data as of March 31, 2014. 

2
Multifamily new business volume by state1 (%)

AL

1.0%

AK

0.0%

> 5%

> 3% - 5%

≤ 1%

> 1% - 3%

AR

0.1%

AZ

2.0%

CA

7.0%

CO

3.7%

CT 

0.3%

DC

1.2%

DE

0.0%

FL

5.5%

GA

6.2%

HI

0.0%

IA

0.9%

ID

<0.1%

IL

1.9%

IN

0.8%

KS

0.1%

KY

0.7%

LA

0.0%

MD

2.4%

ME

0.0%

MI

0.9%

MN

1.4%

MO

0.6%

MS

0.0%

MT

0.0%

NC

2.6%

ND

0.0%

NE 

1.1%

NJ

1.2%

NM

0.0%

NV

1.7%

NY

14.1%

OH

5.0%

OK

0.4%

OR

0.9%

PA

1.2%

RI

<0.1%

SC

<0.1%

SD

0.5%

TN

1.7%

TX

23.5%

UT

1.0% VA

2.4%

VT

0.0%

WA 

2.0%

WI

0.8%

WV

0.0%

WY

0.1%

NH

0.0%

34

MA 3.0%

MF New Business Volume $3.0B

For the Three Months Ended March 31, 2014

1 Based on the unpaid principal balance (UPB) of the multifamily loan purchases and issuance of other guarantee commitments and other structured securities. Percentages shown 

above are rounded to the nearest tenth of a percent although classifications are based on unrounded figures.
Multifamily mortgage portfolio UPB concentration by 

state1

AL

0.9%

AK

0.0%

AR

0.3%

AZ

2.4%

CA

16.6%

CO

3.0%

CT

0.9%

DC

0.7%

DE

0.2%

FL

7.0%

GA

4.3%

HI

0.2%

IA

0.2%

ID

<0.1%

IL

2.5%

IN

0.7%

KS

0.8%

KY

0.5%

LA

0.7%

MA 1.9%

MD

4.9%

ME

<0.1%

MI

1.0%

MN

1.2%

MO

1.1%

MS

0.3%

MT

<0.1%

NC

2.8%

ND

0.1%

NE

0.5%

NJ

2.7%

NM

0.3%

NV

1.1%

NY

8.5%

OH

2.0%

OK

0.5%

OR

0.9%

PA

2.5%

RI

0.2%

SC

0.9%

SD

<0.1%

TN

1.4%

TX

12.9%

UT

0.6% VA

5.3%

VT

0.0%

WA

3.4%

WI

0.7%

WV

<0.1%

WY

<0.1%

NH

0.1%

35

> 5%

> 2% - 5%

≤ 1%

> 1% - 2%

MF Mortgage Portfolio $132.6B2

As of March 31, 2014

1 Based on the unpaid principal balance (UPB) of unsecuritized mortgage loans, other guarantee commitments, and collateral underlying other structured securities and K Certificate 

transactions. Percentages shown above are rounded to the nearest tenth of a percent although classifications are based on unrounded figures. 

2 Consists of the UPB of unsecuritized multifamily loans, other guarantee commitments, and guaranteed Freddie Mac mortgage-related securities. Excludes the UPB associated with 

unguaranteed subordinated tranches in K Certificate transactions and other structured securities.
36

Multifamily mortgage portfolio by attribute1

1 Based on the unpaid principal balance (UPB) of the multifamily mortgage portfolio. 

2 Based on the UPB of mortgages two monthly payments or more past due or in the process of foreclosure. 

3 Based on either: (a) the year of acquisition, for loans recorded on the company’s consolidated balance sheets; or (b) the year that the company issued its guarantee, for the 

remaining loans in its multifamily mortgage portfolio.

4 Presents the six states with the highest UPB at March 31, 2014.

Year of Acquisition or Guarantee3

1 2007 and prior $40.6 0.43% $34.2 0.24% $33.0 0.15%

2 2008 16.0 0.22 13.2 0.18 12.6 -

3 2009 12.1 - 11.2 - 11.0 -

4 2010 11.8 - 10.9 0.13 10.7 0.07

5 2011 16.9 - 15.9 - 15.7 -

6 2012 25.6 - 23.7 - 23.5 -

7 2013 6.0 - 23.7 - 23.2 -

8 2014 N/A N/A N/A N/A 2.9 -

Total $129.0 0.16% $132.8 0.09% $132.6 0.04%

Maturity Dates

9 2014 $7.1 0.28% $2.1 0.12% $1.4 0.20%

10 2015 9.2 0.15 6.9 0.05 6.5 -

11 2016 12.6 0.05 11.2 - 10.7 -

12 2017 10.6 0.19 10.0 0.43 9.8 0.27

13 2018 17.3 - 17.0 - 16.9 -

14 2019 18.2 - 17.5 0.07 17.6 0.05

15 Beyond 2019 54.0 0.27 68.1 0.09 69.7 0.03

Total $129.0 0.16% $132.8 0.09% $132.6 0.04%

Geography4

16 California $21.2 0.10% $22.4 0.03% $22.3 - %

17 Texas 16.0 0.13 16.7 0.02 16.9 -

18 New York 10.8 0.09 11.4 0.12 11.5 0.08

19 Florida 9.0 0.04 9.3 0.28 9.2 -

20 Virginia 7.0 - 7.0 0.37 6.9 0.38

21 Maryland 6.6 - 6.7 - 6.5 -

22 All other states 58.4 0.26 59.3 0.08 59.3 0.04

 Total $129.0 0.16% $132.8 0.09% $132.6 0.04%

UPB

($ Billions)

March 31, 2014

UPB

($ Billions)

Delinquency 

Rate2 

(%) 

December 31, 2013

Delinquency 

Rate2

(%) 

March 31, 2013

Delinquency 

Rate2 

 (%) 

UPB

($ Billions)
37

Multifamily mortgage portfolio by attribute, continued1

1 Based on the unpaid principal balance (UPB) of the multifamily mortgage portfolio. 

2 Based on the UPB of mortgages two monthly payments or more past due or in the process of foreclosure. 

3 DSCR – Debt Service Coverage Ratio – is an indicator of future credit performance for multifamily loans. DSCR estimates a multifamily borrower’s ability to service its mortgage 

obligation using the secured property’s cash flow, after deducting non-mortgage expenses from income. The higher the DSCR, the more likely a multifamily borrower will be able to 

continue servicing its mortgage obligation.

Current Loan Size

1 > $25M $49.1 - % $50.6 0.05% $50.1 0.05%

2 > $5M & <= $25M 71.0 0.26 73.2 0.11 73.4 0.03

3 > $3M & <= $5M 5.7 0.17 6.0 0.11 6.0 0.06

4 > $750K & <= $3M 3.0 0.56 2.8 0.17 2.9 0.17

5 <= $750K 0.2 0.37 0.2 0.46 0.2 0.26

6 Total $129.0 0.16% $132.8 0.09% $132.6 0.04%

Legal Structure

7 Unsecuritized Loans $73.7 0.06% $59.2 0.08% $55.9 0.02%

8 K Certificates 41.8 0.06 59.8 0.07 62.8 0.05

9 Other Freddie Mac mortgage-related securities 4.2 3.07 4.8 0.59 4.8 0.28

10 Other guarantee commitments 9.3 - 9.0 - 9.1 -

11 Total $129.0 0.16% $132.8 0.09% $132.6 0.04%

Credit Enhancement

12 Credit Enhanced $52.2 0.34% $70.2 0.11% $73.3 0.07%

13 Non-Credit Enhanced 76.8 0.04 62.6 0.07 59.3 0.02

14 Total $129.0 0.16% $132.8 0.09% $132.6 0.04%

Other

15 Original LTV > 80% $5.6 2.34% $5.6 0.19% $5.6 0.19%

16 Original DSCR below 1.103 $2.2 3.76% $2.2 - % $2.2 - %

March 31, 2014

UPB

($ Billions)

Delinquency 

Rate2

(%) 

December 31, 2013

Delinquency 

Rate2 

(%) 

March 31, 2013

Delinquency 

Rate2 

 (%) 

UPB

($ Billions)

UPB

($ Billions)
0.00%

Multifamily market and Freddie Mac delinquency rates

Percent

1 See “MD&A – RISK MANAGEMENT – Credit Risk – Mortgage Credit Risk – Multifamily Mortgage Credit Risk ” in Freddie Mac’s Form 10-K for the year ended December 31, 

2013, for information about the company’s reported multifamily delinquency rate. The multifamily delinquency rate at March 31, 2014 was 0.04%. 

Source: Freddie Mac, FDIC Quarterly Banking Profile, TREPP (CMBS multifamily 60+ delinquency rate, excluding REOs), American Council of Life Insurers (ACLI). Non-Freddie 

Mac data is not yet available for the first quarter of 2014.

 

38

6.24%

0.83%

0.09%

1

0

2

4

6

8

10

12

14

4Q 2009 2Q 2010 4Q 2010 2Q 2011 4Q 2011 2Q 2012 4Q 2012 2Q 2013 4Q 2013

Freddie Mac (60+ day) FDIC Insured Institutions (90+ day)

MF CMBS Market (60+ day) ACLI Investment Bulletin (60+ day)
39

Safe Harbor Statements

Freddie Mac obligations

Freddie Mac’s 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 company’s current expectations and objectives for its single-family, multifamily and investment businesses, its loan workout 

initiatives and other efforts and other programs 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 we guarantee, 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, 2013, Quarterly Report on Form 10-Q for the quarter 

ended March 31, 2014 and Current Reports on Form 8-K, 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. The company undertakes no obligation to update forwardlooking statements it makes to reflect events or circumstances after the date of this presentation.