Fourth Quarter 2018 

Financial Results Supplement

February 14, 2019
Ä Freddie Mac 2

Financial Highlights

Note: Totals may not add due to rounding.

Comprehensive income (loss) Litigation settlements/judgments

DTA Write-down

4Q17 1Q18 2Q18 3Q18 4Q18

$2.1

$2.2

$2.2

$2.6

$0.2 $1.5

$2.4

$(5.4)

Adjusted net interest income Adjusted guarantee fee income

4Q17 1Q18 2Q18 3Q18 4Q18

$1.0 $1.0

$1.1 $1.1 $1.1

$1.9 $1.8$1.9 $1.9 $1.8

Adjusted Net Interest Income 

and Adjusted Guarantee Fee Income 

$ Billions

Comprehensive Income

$ Billions

Å Adjusted net interest income and

adjusted guarantee fee income were

substantially unchanged from the

prior quarter.

Ä 4Q18 comprehensive income

included $0.6 billion in market-related

losses. There will be a $1.5 billion

dividend requirement to the U.S.

Treasury in March 2019. 

1 1

$(3.3)
Ä Freddie Mac 3

Total Portfolio Balances

Total debt outstanding4,5

$ Billions

Total guarantee portfolio Portfolio balance highlights 2

$ Billions

Total investments portfolio

$ Billions

Single-family credit guarantee portfolio

Multifamily guarantee portfolio

12/31/2017 3/31/2018 6/30/2018 9/30/2018 12/31/2018

$1,829 $1,836 $1,855 $1,875 $1,896

$203

$2,032

$213

$2,049

$220

$2,075

$226

$2,101

$237

$2,133

+5% YoY 

increase Å Total guarantee portfolio: 

Ç Single-family - grew $67 billion, or 4% year-overyear.

Ç Multifamily - grew $34 billion, or 17% year-overyear.

Å Total investments portfolio:

Ç Mortgage-related investments portfolio - decreased

$35 billion, or 14% year-over-year.

Mortgage-related investments portfolio

Other investments portfolio

12/31/2017 3/31/2018 6/30/2018 9/30/2018 12/31/2018

$253 $241 $236 $228 $218

$90

$343

$70

$311

$74

$310

$83

$311

$63

$281

-18% YoY 

decrease

Discount notes Callable debt

Non-callable debt Other

Weighted average maturity in years

12/31/2017 3/31/2018 6/30/2018 9/30/2018 12/31/2018

14% 10% 13% 15% 11%

36% 40% 40% 39% 42%

41% 40% 36% 36% 37%

9% 10% 11% 10% 10%

2.6 2.9 3.0 2.9 2.9

3

2,4

Note: Totals may not add due to rounding.

*PSPA limit pertains to the mortgage-related investments portfolio only.

PSPA

2018 Year end

Limit $250B*

PSPA 2018 Debt Cap $346.1B

$317 $282 $279 $281 $256
Ä Freddie Mac 4

Conservatorship and Regulatory Matters

Treasury draw requests and dividend payments

$ Billions

Draw Requests from Treasury Dividend Payments to Treasury

2008-2015 2016 2017 2018 Cumulative

Total

$71.3

$0.3

$71.6

$96.5

$5.0

$10.9

$4.1

$116.5

with DTA valuation allowance without DTA valuation allowance

12/31/2015 12/31/2016 12/31/2017 Remaining

PSPA Funding*

$53

$43

$35

$26

$21 $22

$140.2

 6

DFAST7 - Additional draws needed under

severely adverse scenario

$ Billions

Note: Totals may not add due to rounding.

*As of December 31, 2018.

Results published in August of following year.
Ä Freddie Mac 5

Interest-rate Risk Measures

GAAP Adverse Scenario8 (Before-Tax)

$ Billions

Pre-Hedge Accounting Post-Hedge Accounting

% Change

12/31/2017 3/31/2018 6/30/2018 9/30/2018 12/31/2018

($3.1)

($3.3) ($3.4)($3.3)

$(2.7)

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

$(0.2)

84% 83%

86% 85%

93%

PMVS-Level9 and Average Duration Gap10

PMVS-L (50 bps) ($ Millions)

4Q17 1Q18 2Q18 3Q18 4Q18

$17 $8 $23 $18 $11

Average Duration Gap (Months)

4Q17 1Q18 2Q18 3Q18 4Q18

0 0 0 0 0
Ä Freddie Mac 6

Key Economic Indicators

National home prices increased by an average of 4.7%

over the past year

Quarterly ending interest rates

30-year PMMS 10-year LIBOR

12/31/2017 3/31/2018 6/30/2018 9/30/2018 12/31/2018

3.99%

4.44% 4.55%

4.72% 4.55%

2.39%

2.78%

2.93%

3.11%

2.72%

United States (Not Seasonally Adjusted)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

168

188

Freddie Mac House Price Index (December 2000 = 100)

(2006 Peak)

National home prices have surpassed the 2006 peak

Unemployment rate and job creation

Average monthly net new jobs (non-farm)

National unemployment rate (as of the last month in

each quarter)

4Q17 1Q18 2Q18 3Q18 4Q18

221,000 218,000 217,000

190,000

254,000

4.1% 4.1% 3.9% 3.8% 3.8%
Ä Freddie Mac 7

Single-family Financial Highlights and 

Key Metrics

Note: Totals may not add due to rounding.

(73%) (74%) (75%) (77%) (78%)

Single-family segment earnings

$ Millions

4Q17 1Q18 2Q18 3Q18 4Q18

$822 $786

$915

$1,183

$1,024 Guarantee fees charged on new acquisitions (bps)11

Home Purchase UPB Refinance UPB

4Q17 1Q18 2Q18 3Q18 4Q18

$57

$38

$58 $62 $55

$41

$98

$28

$66

$26

$84

$19

$81

$22

$77

36 40 41 41 41

Core single-family portfolio (loans originated post-2008)

Legacy and relief refinance single-family portfolio

4Q17 1Q18 2Q18 3Q18 4Q18

$1,424 $1,446 $1,481 $1,516 $1,550

$405

$1,829

$390

$1,836

$374

$1,855

$359

$1,875

$346

$1,896

+4% YoY 

increase

Credit guarantee portfolio

$ Billions

Serious delinquency rates

Core single-family portfolio (loans originated post-2008)

Legacy and relief refinance single-family portfolio

Total

4Q17 1Q18 2Q18 3Q18 4Q18

0.35% 0.32% 0.25% 0.22% 0.22%

2.59%

2.41%

2.14% 2.01% 1.93%

1.08% 0.97% 0.82% 0.73% 0.69%

(78%) (79%) (80%) (81%) (82%)

During the fourth quarter of 2018, the company changed how it calculates certain components of its Segment Earnings for the

Single-family Guarantee and Capital Markets segments. Prior period results have been revised to conform to the current period

presentation.

New business activity

$ Billions
Ä Freddie Mac 8

4Q17 1Q18 2Q18 3Q18 4Q18

15%

17%

18% 17%18%

New business activity with debt-toincome ratio > 45% (%)

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

Loan Purpose

Relief Refinance (includes HARP)

All Other

Total Purchases and Guarantees

4Q17 1Q18 2Q18 3Q18 4Q18

68% 66% 67% 66% 65%

76% 76% 78% 79% 77%

76% 76% 78% 79% 77%

Relief Refinance (includes HARP)

All Other

Total Purchases and Guarantees

4Q17 1Q18 2Q18 3Q18 4Q18

708 709 707 707 712

745 745 746 746 747

745 744 745 746 747

Single-family Loan Purchase 

Credit Characteristics

Home Purchase Cash-out refinance

Other refinance

4Q17 1Q18 2Q18 3Q18 4Q18

58% 58% 69% 76% 71%

23% 23%

19% 15% 18%

19% 19% 12% 9% 11%
Ä Freddie Mac 9

Total Single-family credit guarantee portfolio with

transferred credit risk

$ Billions

Reference pool UPB at issuance

Reference pool UPB outstanding

2014 2015 2016 2017 2018

$205

$385

$598

$858

$1,144

$193

$329

$457

$648

$838

12%

19%

26%

35%

44%

Outstanding reference pool UPB as a

percentage of total Single-family portfolio

Cumulative Single-family transferred credit risk

based on outstanding balance at period end

$ Billions

First loss positions: Retained by Freddie Mac

Mezzanine loss positions: Retained by Freddie Mac

First loss positions: Transferred to third parties

Mezzanine loss positions: Transferred to third parties

12/31/2017 3/31/2018 6/30/2018 9/30/2018 12/31/2018

$4.7 $5.1 $5.6 $5.5 $5.9

$1.5

$1.7

$1.9 $1.6

$2.4

$2.8 $3.1 $3.9 $4.4

$5.3

$22.0

$23.4

$24.5

$24.8

$26.4

Single-family Credit Risk Transfer Ä 

STACR / ACIS 
Ä Freddie Mac 10

Multifamily Financial Highlights and 

Key Metrics

(45%) (54%) (64%) (74%) (82%)

Multifamily comprehensive income

$ Millions

4Q17 1Q18 2Q18 3Q18 4Q18

$660

$404

$526 $505

$(199)

Multifamily acquisitions of units by area median

income (% of eligible units acquired)

É100% AMI >100% - 120%

>120% AMI

2014 2015 2016 2017 2018

90% 88% 86% 83% 85%

6% 6% 8% 8% 8%

4% 6% 6% 9% 7%

Total portfolio

$ Billions

Guarantee Portfolio Mortgage-related Securities

Unsecuritized Loans and Other

12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018

$91 $120

$158

$203

$237 $25

$19 $13

$7

$7

$53

$169

$49

$188

$42

$213 $39

$249

$36

$280

+66% increase 

since 2014 Multifamily market and Freddie Mac delinquency

rates (%)

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

MF CMBS Market (60+ day)

4Q14 4Q15 4Q16 4Q17 4Q18

0.01

0.14

1.16

Note: Totals may not add due to rounding.

3Q18

(54%) (82%) (64%) (74%) (85%)
Ä Freddie Mac 11

Multifamily Key Metrics, continued

New funding volume

$ Billions

Purchase Volume Subject to Cap

Purchase Volume Not Subject to Cap

2014 2015 2016 2017 2018

$25.9

$30.0

$36.5 $33.7 $32.6

$2.4

$28.3

$17.3

$47.3

$20.3

$56.8

$39.5

$73.2

$44.9

$77.5

Cap = $25.9

Cap = $30.0

Cap = $36.5

Cap = $35.0

Multifamily securitization volume12

$ Billions

K Certificate UPB SB Certificate UPB

2009-2013 2014 2015 2016 2017 2018

$71.5

$21.3

$35.6

$47.3

$56.7

$61.6

$1.8

$37.4

$3.9

$51.2

$5.5

$62.2 $7.0

$68.6

13

Note: Totals may not add due to rounding.

Excludes LIHTC new business activity.
Ä Freddie Mac 12

Capital Markets Financial Highlights 

and Key Metrics

(60%) (63%) (62%) (62%)

Note: Totals may not add due to rounding.

(66%)

4Q17 1Q18 2Q18 3Q18 4Q18

$0.6

$1.0 $1.0

$0.9

$0.6

Capital Markets investments portfolio 

$ Billions

Mortgage Investments Portfolio

Other Investments Portfolio

4Q17 1Q18 2Q18 3Q18 4Q18

$196 $190 $188 $180 $167

$89

$285

$70

$260

$73

$261

$83

$263

$62

$229

-20% YoY

decrease

Capital Markets cash window securitization

$ Billions

4Q17 1Q18 2Q18 3Q18 4Q18

$35

$29

$38

$42

$38

Capital Markets mortgage investments portfolio

$ Billions

Liquid Securitization Pipeline

Less Liquid

4Q17 1Q18 2Q18 3Q18 4Q18

$130 $126 $124 $118 $114

$10 $11 $13 $12 $9

$56 $53 $51 $50 $45

$196 $190 $188 $180

$167

-15% YoY

decrease

Capital Markets comprehensive income

$ Billions

During the fourth quarter of 2018, the company changed how it calculates certain components of its Segment Earnings

for the Single-family Guarantee and Capital Markets segments. Prior period results have been revised to conform to the

current period presentation.

(66%) (66%) (66%) (66%) (68%)
Ä Freddie Mac 13

Housing Market Support

Note: Totals may not add due to rounding.

Number of families Freddie Mac helped 

to own or rent a home14

In Thousands

Multifamily rental units Purchase borrowers

Refinance borrowers

2015 2016 2017 2018

650

739

820 866

677

745

828

884

910

2,237

937

2,421

663

2,311

442

2,192

Number of single-family loan workouts15

In Thousands

Loan modifications

Repayment plans

Forbearance agreements

Short sales and deed-in-lieu

of foreclosure transactions

2015 2016 2017 2018

54

43 45

60

21

12 10

11

6

5

15

16

13

94

9

69 5

75

3

90

Home

Retention

Actions

Foreclosure

Alternatives

16

16

16

16
Ä Freddie Mac 14

Endnotes

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

year ended December 31, 2018.

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

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

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

Form 10-K for the year ended December 31, 2018 for more information.

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

to fund its business activities.

6 Excludes the initial $1 billion liquidation preference of senior preferred stock issued to Treasury in September 2008 as consideration for TreasuryÑs funding commitment and the $3.0

billion increase in the aggregate liquidation preference of the senior preferred stock pursuant to the December 21, 2017 Letter Agreement. The company received no cash proceeds as

a result of issuing the initial $1Öbillion liquidation preference of senior preferred stock or the $3.0 billion increase on December 31, 2017.

7 For additional information, see Regulation and Supervision / Federal Housing Finance Agency / Capital Standards in the companyÑs Annual Report on Form 10-K for the year ended

December 31, 2018. (DFAST: Dodd-Frank Act Stress Test)

8 The company evaluates the potential benefits of fair value hedge accounting by evaluating a range of interest rate scenarios and identifying which of those scenarios produces the most

adverse GAAP earnings outcome. At December 31, 2018, the GAAP adverse scenario before fair value hedge accounting was a non-parallel shift in which long-term rates decrease by

100 basis points, while the adverse scenario after fair value hedge accounting was a non-parallel shift in which short and medium-term rates decrease by 100 basis points.

9 Portfolio Market Value Sensitivity (PMVS) is the company's estimate of the change in the market value of its financial assets and liabilities from an instantaneous shock to interest rates,

assuming spreads are held constant and no rebalancing actions are undertaken. PMVS-Level or PMVS-L measures the estimated sensitivity of the companyÑs portfolio market value to

parallel movements in interest rates.

10 Duration gap measures the difference in price sensitivity to interest rate changes between our financial assets and liabilities and is expressed in months relative to the market value of

assets.

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

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

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

12 Excludes other types of Multifamily securitization products.

13 Includes K Certificates without subordination, which are fully guaranteed and issued without subordinate or mezzanine securities.

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

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

15 Consists of both home retention actions and foreclosure alternatives.

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

a home retention action in one period may subsequently lose his or her home through a foreclosure alternative in a later period.
Ä Freddie Mac 15

Safe Harbor Statements

Freddie Mac obligations

Freddie MacÑs 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 companyÑs current expectations and objectives for its Single-family Guarantee, Multifamily and Capital Markets segments, its efforts

to assist the housing market, liquidity and capital management, economic and market conditions and trends, market share, the effect of

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

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

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

some of which are beyond the companyÑs control. ManagementÑs expectations for the companyÑs 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 companyÑs Annual Report on Form 10-K for the year ended December 31, 2018,

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

investors and the SECÑs website at www.sec.gov. The company undertakes no obligation to update forward-looking statements it makes

to reflect events or circumstances occurring after the date of this presentation.