Third Quarter 2019 

Financial Results Supplement

October 30, 2019
Ä Freddie Mac 2

3Q18 4Q18 1Q19 2Q19 3Q19

$2.6

$1.5

$1.7

$1.8 $1.8

Comprehensive Income

$ Billions

Adjusted net interest income Adjusted guarantee fee income

3Q18 4Q18 1Q19 2Q19 3Q19

$1.1 $1.1 $1.0 $1.0

$0.8

$1.9 $1.8 $1.8

$2.1

$2.3

Financial Highlights

Note: Totals may not add due to rounding.

Ä Comprehensive income of $1.8 billion,

unchanged from the prior quarter, driven by

strong and consistent business

performance.

1 1

Å Adjusted net interest income declined from

the prior quarter, primarily driven by higher

amortization expense resulting from an

increase in loan prepayments combined

with a decrease in interest income on

unsecuritized loans.

Å Adjusted guarantee fee income increased

from the prior quarter, primarily driven by

higher amortization of single-family upfront

fees resulting from an increase in loan

prepayments.

Adjusted Net Interest Income 

and Adjusted Guarantee Fee Income 

$ Billions
Ä Freddie Mac 3

Mortgage-related investments portfolio

Other investments portfolio

9/30/2018 12/31/2018 3/31/2019 6/30/2019 9/30/2019

$228 $218 $219 $219 $222

$83

$311

$63

$281

$77

$296

$83

$302

$90

$312

Single-family credit guarantee portfolio

Multifamily guarantee portfolio

9/30/2018 12/31/2018 3/31/2019 6/30/2019 9/30/2019

$1,875 $1,896 $1,914 $1,935 $1,961

$226

$2,101

$237

$2,133

$243

$2,157

$249

$2,184

$260

$2,221

Total Portfolio Balances

Total guarantee portfolio Portfolio balance highlights 2

$ Billions

Å Total guarantee portfolio: 

Ç Single-family - grew $86 billion, or 5%, year-overyear.

Ç Multifamily - grew $34 billion, or 15%, year-overyear.

Å Total investments portfolio:

Ç Mortgage-related investments portfolio - decreased

$6 billion, or 3%, year-over-year.

Note: Totals may not add due to rounding.

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

6% YoY 

increase

0.3% YoY

increase 

Total investments portfolio

$ Billions

FHFA 

2019 Limit

$225B* 

3

2,4

Total debt outstanding4,5

$ Billions

Discount notes Callable debt

Non-callable debt Other

Weighted average maturity in years

9/30/2018 12/31/2018 3/31/2019 6/30/2019 9/30/2019

15% 11% 17% 13% 15%

39% 42% 37% 45% 37%

36% 37% 34% 32% 39%

10% 10% 12% 10% 9%

2.9 2.9 2.6 2.6 2.5

$281 $256 $273

Purchase Agreement

 2019 Debt Cap $300B 

 $280 $282
Ä Freddie Mac 4

Draws from Treasury Dividend payments to Treasury

2008-2016 2017 2018 YTD 2019* Cumulative

Total

$71.3

$0.3

$71.6

$101.5

$10.9

$4.1 $3.1

$119.7

Conservatorship Matters

Treasury draws and dividend payments

$ Billions

Note: Totals may not add due to rounding.

 6

*As of September 30, 2019.

Ç Pursuant to the September 2019 Letter Agreement, the company will not have a dividend requirement on the senior

preferred stock until its Net Worth Amount exceeds $20.0 billion. The company's Net Worth Amount was $6.7 billion at

September 30, 2019.
Ä Freddie Mac 5

National home prices have surpassed the 2006 peak

United States (Not Seasonally Adjusted)

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

168

196

Average monthly net new jobs (non-farm)

National unemployment rate (as of the last month in

each quarter)

3Q18 4Q18 1Q19 2Q19 3Q19

189,000

233,000

174,000 152,000 157,000

3.7% 3.9% 3.8% 3.7% 3.5%

Key Economic Indicators

National home prices increased by an average of 3.4%

over the past year

Quarterly ending interest rates

Unemployment rate and job creation

Freddie Mac House Price Index (December 2000 = 100)

(2006 Peak)

30-year Primary Mortgage Market Survey (PMMS)

10-year LIBOR

9/30/2018 12/31/2018 3/31/2019 6/30/2019 9/30/2019

4.72% 4.55%

4.06%

3.73% 3.64%

3.11%

2.72%

2.41%

1.96%

1.57%
Ä Freddie Mac 6

Home purchase UPB Refinance UPB

New Busn G-fee

3Q18 4Q18 1Q19 2Q19 3Q19

$62 $55 $46

$65 $76

$19

$81

$22

$77

$24

$70 $37

$102

58

$134

41 40 40 44 45

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

Legacy and relief refinance single-family portfolio

3Q18 4Q18 1Q19 2Q19 3Q19

$1,516 $1,550 $1,579 $1,613 $1,654

$359

$1,875

$346

$1,896

$335

$1,914

$322

$1,935

$307

$1,961

Single-Family Guarantee 

Financial Highlights and Key Metrics

Credit guarantee portfolio

$ Billions

New business activity

$ Billions

Guarantee fees charged on new acquisitions (bps)7

Serious delinquency rates 

+5% YoY 

increase

Note: Totals may not add due to rounding.

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

Legacy and relief refinance single-family portfolio

Total

3Q18 4Q18 1Q19 2Q19 3Q19

0.22% 0.22% 0.22% 0.23% 0.24%

2.01% 1.93% 1.91% 1.82% 1.77%

0.73% 0.69% 0.67% 0.63% 0.61%

(81%) (82%) (83%) (83%) (84%)

3Q18 4Q18 1Q19 2Q19 3Q19

$1,183

$1,024

$740

$955

$1,250

Single-Family Guarantee Segment Earnings

$ Millions
Ä Freddie Mac 7

3Q18 4Q18 1Q19 2Q19 3Q19

79% 77% 77% 77% 77%

3Q18 4Q18 1Q19 2Q19 3Q19

746 747 747 750 752

3Q18 4Q18 1Q19 2Q19 3Q19

17%

18%

16%

14% 13%

Home purchase Cash-out refinance

Other refinance

Investment properties as a % of purchases

3Q18 4Q18 1Q19 2Q19 3Q19

76% 71% 65% 64% 57%

15% 18% 20% 18% 16%

9% 11% 15% 18% 27%

5% 6% 6% 5% 4%

Single-Family Guarantee 

Loan Purchase Credit Characteristics

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

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

Weighted average credit score

Loan purpose and investment properties as a

percentage of loan purchases

Investment properties as a

percentage of loan purchases
Ä Freddie Mac 8

Reference pool UPB at issuance

Reference pool UPB outstanding

2015 2016 2017 2018 YTD 2019*

$385

$598

$858

$1,144

$1,329

$329

$457

$648

$838

$924

19%

26%

35%

44%

47%

Single-Family Guarantee 

Credit Risk Transfer Ä STACR / ACIS 

Total single-family credit guarantee portfolio with

transferred credit risk

$ Billions

Cumulative single-family transferred credit risk

based on outstanding balance at period end

$ Billions

First loss positions: Retained by Freddie Mac

Mezzanine loss positions: Retained by Freddie Mac

First loss positions: Transferred to third parties

Mezzanine loss positions: Transferred to third parties

9/30/2018 12/31/2018 3/31/2019 6/30/2019 9/30/2019

$5.5 $5.9 $5.8 $5.9 $6.0

$1.6

$2.4 $1.7 $1.3 $1.4

$4.4 $5.3 $6.1 $6.7 $7.3

$24.8

$26.4

$28.1

$28.1 $27.9

*As of September 30, 2019.

Outstanding reference pool UPB as a

percentage of total single-family portfolio
Ä Freddie Mac 9

Total portfolio

$ Billions

Multifamily acquisitions of units by area median

income (% of eligible units acquired)

É120% AMI >120% AMI

2015 2016 2017 2018 YTD 2019*

94% 94% 91% 93% 95%

6% 6% 9% 7% 5%

Guarantee portfolio Mortgage-related securities

Unsecuritized loans and other

12/31/2016 12/31/2017 12/31/2018 3/31/2019 6/30/2019 9/30/2019

$158

$203

$237 $243 $249 $260

$13

$7

$7 $7 $6

$6

$42

$213 $39

$249 $36

$280

$33

$283

$33

$288

$39

$305

Multifamily 

Financial Highlights and Key Metrics

Multifamily market and Freddie Mac delinquency

rates

Multifamily comprehensive income (loss)

$ Millions

+43% increase 

since 2016

(74%) (82%) (85%)

Note: Totals may not add due to rounding.

*As of September 30, 2019.

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

MF CMBS market (60+ day)

3Q15 3Q16 3Q17 3Q18 3Q19

0.04%

0.13%

1.13%

3Q18 4Q18 1Q19 2Q19 3Q19

$505

$(199)

$395

$440

$591

2Q19

(86%) (86%) (85%)
Ä Freddie Mac 10

Multifamily risk transfer (RT) activity8

$ Billions

Primary RT securitizations

Other RT securitizations and products

2015 2016 2017 2018 YTD 2019*

$41.2

$41.2

$49.9

$60.7

$66.3

$46.5

$4.2

$54.1

$8.4

$69.1

$7.1

$73.4

$7.9

$54.4

Capped new business activity

Uncapped new business activity

2015 2016 2017 2018 YTD 2019*

$30.0

$36.5 $33.7 $32.6

$24.4

$17.3

$47.3

$20.3

$56.8

$39.5

$73.2

$44.9

$77.5

$36.0

$60.4

Multifamily 

Key Metrics, Continued

New business activity

$ Billions

Note: Totals may not add due to rounding.

*As of September 30, 2019.

Cap = $36.5

Cap = $30.0

Cap = $35.0

Excludes LIHTC new business activity.
Ä Freddie Mac 11

Mortgage investments portfolio

Other investments portfolio

3Q18 4Q18 1Q19 2Q19 3Q19

$180 $167 $171 $173 $171

$83

$263

$62

$229

$76

$247

$81

$254

$87

$258

Capital Markets cash window securitization

$ Billions

Capital Markets comprehensive income

$ Millions 

3Q18 4Q18 1Q19 2Q19 3Q19

$873

$648

$534

$433

$10

3Q18 4Q18 1Q19 2Q19 3Q19

$42

$38

$30

$45

$59

Liquid Securitization pipeline

Less liquid

3Q18 4Q18 1Q19 2Q19 3Q19

$118 $114 $116 $118 $116

$12 $9 $13 $16 $21

$50 $45 $42 $39 $34

$180

$167 $171 $173 $171

Capital Markets 

Financial Highlights and Key Metrics

Capital Markets mortgage investments portfolio

$ Billions

Capital Markets investments portfolio 

$ Billions

-5% YoY

decrease

(66%) (68%) (68%) (68%)

Note: Totals may not add due to rounding.

(68%)

-2% YoY

decrease

$262
Ä Freddie Mac 12

PVS-L (50 bps) ($ Millions)

3Q18 4Q18 1Q19 2Q19 3Q19

$18 $11 $15

$275

$54

Interest-Rate Risk Measures

Before hedge accounting After hedge accounting

% Change

9/30/2018 12/31/2018 3/31/2019 6/30/2019 9/30/2019

($3.3)

($2.7)

($2.1)

$(4.6)

$(3.5)

($0.5)

($0.2) ($0.2)

$(0.8)

$(0.1)

85%

93% 89%

82%

97%

GAAP Adverse Scenario9 (Before-Tax)

$ Billions

PVS-Level10 and Average Duration Gap11

Average duration gap (Months)

3Q18 4Q18 1Q19 2Q19 3Q19

0 0 0

2.2

0.5

In April 2019, the company updated its interest-rate risk measures to include upfront fees (including

buy-downs) related to single-family credit guarantee activity as the company changed its strategy to

incorporate upfront fees into its asset and liability interest-rate risk management strategy and

definition. The company hedged the upfront fees interest-rate risk over several weeks resulting in

temporarily higher than normal duration gap and PVS-L levels. These levels returned to historical

averages by the end of 2Q19 as the company completed its hedging of upfront fees interest-rate risk.

The inclusion of upfront fees increased the company's derivative volume resulting in a larger effect of

derivatives on its PVS-L (50 bps).
Ä Freddie Mac 13

Number of single-family loan workouts13

In Thousands

 Housing Market Support

Loan modifications

Repayment plans

Forbearance agreements

Short sales and deed-in-lieu

of foreclosure transactions

2016 2017 2018 YTD 2019*

43 45

60

23

12 10

11

6

5

15

16

6

9

69 5

75

3

90

1

36

Multifamily rental units

Single-Family purchase borrowers

Single-Family refinance borrowers

2016 2017 2018 YTD 2019*

739

820 866

638

745

828

884

744

937

2,421

663

2,311

442

2,192

473

1,855

Number of families Freddie Mac helped 

to own or rent a home12

In Thousands

Note: Totals may not add due to rounding.

*As of September 30, 2019.

Home

Retention

Actions

Foreclosure

Alternatives

14

14

14

14
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

quarter ended September 30, 2019.

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, the $3.0 billion

increase in the aggregate liquidation preference of the senior preferred stock pursuant to the December 2017 Letter Agreement, and the $1.8 billion increase in the aggregate liquidation

preference of the senior preferred stock pursuant to the September 2019 Letter Agreement. The company received no cash proceeds in connection with the initial $1Öbillion liquidation

preference of senior preferred stock or the $3.0 billion and $1.8 billion increases on December 31, 2017 and September 30, 2019, respectively.

7 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.

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

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

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

9 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 September 30, 2019, the GAAP adverse scenario before fair value hedge accounting was a parallel shift in which rates decrease by 100 basis

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

10 Portfolio Value Sensitivity (PVS) is the company's estimate of the change in the value of our financial assets and liabilities from an instantaneous shock to interest rates, assuming

spreads are held constant and no rebalancing actions are undertaken. PVS-L measures the estimated sensitivity of the portfolio value to a 50 basis point parallel movement in interest

rates.

11 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 value of assets.

12 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.

13 Consists of both home retention actions and foreclosure alternatives.

14 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,

Quarterly Reports on Form 10-Q for the quarters ended March 31, 2019, June 30, 2019, and September 30, 2019 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.