Fourth Quarter 2013 

Financial Results 

Supplement

February 27, 2014
2

Table of contents

Business Results Credit Supplement

3 - Quarterly Financial Results 21 - National Home Prices

4 - Annual Financial Results 22 - State-by-State Home Prices: June 2006 to December 2013

5 - Comprehensive Income 23 - State-by-State Home Prices: December 2012 to December 2013

6 - Senior Preferred Stock Purchase Agreement with Treasury 24 - Mortgage Market and Freddie Mac Serious Delinquency Rates

7 - Treasury Draw Requests and Dividend Payments 25 -

8 - Total Equity and Senior Preferred Stock Activity 26 -

9 - Single-Family Guarantee Fees Charged on New Acquisitions 27 -

 10 - Loan Loss Reserves 28 -

 11 - 29 -

 12 - 30 -

 13 - 31 -

 14 - 32 -

 15 - 33 - Multifamily Portfolio Composition

 16 - 34 - Multifamily Securitization Volume

 17 - 35 - Multifamily New Business Volume by State

 18 - 36 - Multifamily Mortgage Portfolio UPB Concentration by State

 19 - 37 - Multifamily Mortgage Portfolio by Attribute

 38 - Multifamily Mortgage Portfolio by Attribute, Continued

 39 - 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 4Q 2013 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

Repurchase Requests

Purchase Agreement Portfolio Limits
3

Quarterly financial results

 Line 2: Lower benefit for credit losses driven by moderation in 

home-price growth during 4Q13.

 Line 3: A shift from derivative losses in 3Q13 to derivative 

gains in 4Q13 driven by higher fair value gains on the net payfixed swap portfolio due to an increase in longer-term interest 

rates.

 Line 4: Higher net impairment of available-for-sale (AFS) 

securities primarily due to the 4Q13 implementation of enhanced 

model assumptions used to project cash flows on certain 

modified loans collateralizing non-agency mortgage-related 

securities.

 Line 5: Higher other non-interest income driven by a $4.3 

billion increase in settlement proceeds related to private label 

securities (PLS) litigation in 4Q13. 

 Line 12: A shift from income tax benefit in 3Q13 to income tax 

expense in 4Q13 primarily due to the release of the deferred tax 

asset valuation allowance.

 Line 14: A shift from total other comprehensive loss in 3Q13 to 

total other comprehensive income in 4Q13 reflects improved fair 

values on non-agency AFS securities due to spread tightening, 

as well as the recognition in earnings of other-than temporary 

impairments on the company’s non-agency mortgage-related 

securities in 4Q13.

Note: Columns may not add due to rounding.

($ Billions) 4Q 2013

vs

3Q 2013 4Q 2013 3Q 2013

1 Net interest income $4.3 $3.8 ($0.5)

2 Benefit for credit losses 1.1 0.2 (0.9)

3 Derivative gains (losses) (0.1) 1.0 1.0

4 Net impairment of available-for-sale securities 

 recognized in earnings (0.1) (1.3) (1.2)

5 Other non-interest income 1.9 6.1 4.2

6 Non-interest income 1.7 5.8 4.1

7 Total administrative expenses (0.5) (0.5) (0.0)

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

9 Other non-interest expense (0.2) 0.1 0.3

10 Non-interest expense (0.6) (0.4) 0.2

11 Pre-tax income 6.5 9.3 2.8

12 Income tax benefit (expense) 24.0 (0.7) (24.7)

13 Net income 30.5 8.6 (21.9)

14 Total other comprehensive income (loss), 

net of taxes (0.0) 1.2 1.3

15 Comprehensive income $30.4 $9.8 ($20.6)
4

Annual financial results

 Line 2: A shift from a provision for credit losses in 2012 to 

a benefit in 2013 due to a decrease in the volume of newly 

delinquent loans, increases in national home prices and 

approximately $1.7 billion in recoveries from 

representation and warranty settlements in 2013.

 Line 3: A shift from derivative losses in 2012 to derivative 

gains in 2013 driven by an increase in longer-term interest 

rates during 2013, compared to a decrease in longer-term 

interest rates during 2012, coupled with a change in the 

mix of the company’s derivative portfolio.

 Line 5: Higher other non-interest income driven primarily 

by settlement proceeds of $5.5 billion related to PLS 

litigation during 2013. 

 Line 12: Higher income tax benefit primarily driven by the 

release of the deferred tax asset valuation allowance.

 Line 14: Lower total other comprehensive income reflects 

the unfavorable impact of higher interest rates, partially 

offset by higher fair value gains due to spread tightening 

on non-agency securities.

Note: Columns may not add due to rounding.

($ Billions) 2013

vs

2012 2013 2012

1 Net interest income $17.6 $16.5 ($1.1)

2 (Provision) benefit for credit losses (1.9) 2.5 4.4

3 Derivative gains (losses) (2.4) 2.6 5.1

4 Net impairment of available-for-sale securities 

 recognized in earnings (2.2) (1.5) 0.7

5 Other non-interest income 0.5 7.4 6.9

6 Non-interest income (loss) (4.1) 8.5 12.6

7 Total administrative expenses (1.6) (1.8) (0.2)

8 Real estate owned operations income (expense) (0.1) 0.1 0.2

9 Other non-interest expense (0.6) (0.4) 0.1

10 Non-interest expense (2.2) (2.1) 0.1

11 Pre-tax income 9.4 25.4 15.9 

12 Income tax benefit 1.5 23.3 21.8 

13 Net income 11.0 48.7 37.7

14 Total other comprehensive income, net of taxes 5.1 2.9 (2.1)

15 Comprehensive income $16.0 $51.6 $35.6
$1.5 $1.8 $2.9 

$5.6 $5.7 $7.0 

$4.4 

$30.4 

$9.8 

4Q

 2011

1Q

 2012

2Q

 2012

3Q

2012

4Q

2012

1Q

2013

2Q

2013

3Q

2013

4Q

2013

Net income

Total other comprehensive income (loss), net of taxes

Comprehensive income

5

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 

December 31, 2013. 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 seven quarters; last draw request was $19 million for first quarter 2012.

 Freddie Mac’s net worth was $12.8 billion at December 31, 2013.

» Capital reserve amount decreased from $3.0 billion in 2013 to $2.4 billion for quarterly payments in 

2014. 

» Dividend obligation to Treasury will be $10.4 billion in March 2014. 

» Aggregate cash dividends paid to Treasury will total $81.8 billion including the March dividend 

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

31, 2013.

 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 December 31, 2013 includes cumulative draws of $71.3 billion plus the initial liquidation preference of $1 billion. 6
$0.2 $4.1 $5.7 $6.5 $7.2 

$47.6 

2008 2009 2010 2011 2012 2013

$44.6 

$6.1 

$13.0 

$7.6 

$0.02 $0.0 

2008 2009 2010 2011 2012 2013

Draw Requests from Treasury Dividend Payments to Treasury

7

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 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).

4 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

3 4

Draws From Treasury Dividend Payments to Treasury

($ Billions) Cumulative 

Total

Initial Liquidation Preference1 $1.0

Treasury Draws $71.3

 Total Senior Preferred Stock 

 Outstanding $72.3

($ Billions) Cumulative 

Total

Dividend Payments as of 12/31/13 $71.3

1Q 2014 Dividend Obligation $10.4

 Total Dividend Payments2 $81.8
8

Total equity and Senior Preferred Stock activity

1 See the company’s Annual Report on Form 10-K for the year ended December 31, 2013 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)

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

1 Beginning balance - Total equity / GAAP net worth $4.9 $8.8 $10.0 $7.4 $33.4

2 Capital draw funded by Treasury - - - - -

3 Net income 4.5 4.6 5.0 30.5 8.6

4 Total other comprehensive income (loss), net of taxes 1.3 2.4 (0.6) (0.0) 1.2

5 Comprehensive income 5.7 7.0 4.4 30.4 9.8

6 Dividends paid to Treasury (1.8) (5.8) (7.0) (4.4) (30.4)

7 Other - - - - -

8 Ending balance - Total equity / GAAP net worth1 $8.8 $10.0 $7.4 $33.4 $12.8

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 beginning in 2013 N/A $140.5 $140.5 $140.5 $140.5
20

25 27

38

51

2009 2010 2011 2012 2013

9

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

44

49 51 53 55

4Q

2012

1Q

2013

2Q

2013

3Q

2013

4Q

2013
($3.2) ($3.3) ($2.9) ($3.0) ($2.5) ($2.1) ($1.9)

($0.6) ($0.4) 

$2.6 

$1.8 

$0.2 $0.6 

($0.7) ($0.5) ($0.6) ($1.1)

($0.2)

$39.5 $38.3

$35.8

$33.8

$30.9

$28.6

$26.4 $25.0 $24.7

4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013

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
61k 

47k 

59k 

53k 

51k 

49k 48k 

45k

47k

4Q

2011

1Q

2012

2Q

2012

3Q

2012

4Q

2012

1Q

2013

2Q

2013

3Q

2013

4Q

2013

49,077 47,308 

70,685

(72,454) 

12/31/12

 Inventory

Acquisitions Dispositions 12/31/13

 Inventory

11

Real estate owned1

Property Inventory 

2013 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 6 properties and 1 property as of December 31, 2012 and 2013, respectively.

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 2013, 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.

 Freddie Mac experienced an increase in REO acquisitions during 2013 

compared to 2012 in the Northeast region and REO acquisitions remained high 

in the Southeast region. High REO acquisition volumes in these regions were 

primarily due to higher foreclosure volume in Maryland, Pennsylvania and 

Florida.

 The North Central region comprised 33 percent of our REO property inventory 

as of December 31, 2013. 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 singlefamily mortgage loans. Seven of the nine states in the North Central region 

require a judicial foreclosure process. 

((Number of Properties)

5k 

11k 

21k 

5k 

6k 

8k 

14k 

16k 

4k 

5k

Northeast Southeast North Central Southwest West

12/31/2012 12/31/2013

((Number of Properties)
12

Market liquidity provided

Number of Families Freddie Mac Helped 

to Own or Rent a Home1

In Thousands

Purchase and Issuance Volume2, 3 

(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, issuance of other structured securities and purchases of non-Freddie Mac mortgage-related securities.

3 In the first quarter of 2013, Freddie Mac made certain changes to more closely align the presentation of the company’s single-family and multifamily securitization activities. As a 

result, the purchase and issuance volumes for all prior periods have been revised to conform with the current period presentation.

2,480

2,089

1,830

2,472 2,458

755 723 743

545 447

0

500

1,000

1,500

2,000

2,500

3,000

2009 2010 2011 2012 2013 4Q

2012

1Q

2013

2Q

2013

3Q

2013

4Q

2013

$546

$406

$349

$456 $453

$140 $138 $138 $106 $71

0

100

200

300

400

500

600

2009 2010 2011 2012 2013 4Q

2012

1Q

2013

2Q

2013

3Q

2013

4Q

2013

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

11,329

$2.2 Trillion

7,675

2,032

1,622
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 Cumulative 

Total

Number of Borrowers2 (In Thousands)

Other Refinance 1,595 947 740 996 944 5,222

Relief Refinance - LTV ≤ 80% 83 324 268 253 270 1,198

Relief Refinance - LTV > 80% to 100% (HARP) 3 72 166 126 191 168 723

Relief Refinance - LTV > 100% to 125% (HARP) 3 14 43 59 144 110 370

Relief Refinance - LTV > 125% (HARP) 3 0 0 0 99 63 162

 Total Number of Borrowers 1,764 1,480 1,193 1,683 1,555 7,675

$ Volume (In Billions)

Other Refinance $345 $200 $168 $228 $210 $1,151

Relief Refinance - LTV ≤ 80% $15 $58 $42 $36 $37 $188

Relief Refinance - LTV > 80% to 100% (HARP) 3 $17 $38 $27 $37 $30 $149

Relief Refinance - LTV > 100% to 125% (HARP) 3 $3 $10 $13 $30 $21 $77

Relief Refinance - LTV > 125% (HARP) 3 $0 $0 $0 $20 $11 $31

 Total $ Volume $380 $306 $250 $351 $309 $1,596
0

50

100

150

200

250

300

2009 2010 2011 2012 2013

Number of Loans

(000)

0

30

60

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

 43 208

46

 41

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.

 41

 169

 40

 168

Number of Families Avoiding Foreclosure1 (In Thousands)

Families Retaining Homes

Cumulative Totals Since 

2009

953

8 out of every 10
0

40

80

120

160

200

2009 2010 2011 2012 2013

Number of 

Loans

(000)

0

10

20

30

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

20 21 19

70

21

23

83
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 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013

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

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

9 to 11 months 75% 77% 81% 78% 78% 78% N/A N/A

12 to 14 months 73% 76% 78% 76% 75% N/A N/A N/A

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

18 to 20 months 71% 73% 75% N/A N/A N/A N/A N/A

21 to 23 months 70% 71% N/A N/A N/A N/A N/A N/A

24 to 26 months 68% N/A N/A N/A N/A N/A N/A N/A

% Current and Performing

Quarter of Loan Modification Completion2
$3.0 $2.2 

$10.8

($5.6)

($6.0)

UPB at

12/31/2012

Issuances Collections Cancellations

and other

UPB at

12/31/2013

$3.6 $4.2 $3.8

$2.7 $3.0

$2.2

20% 20% 

34% 

39% 41% 

27% 

12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012 12/31/2013

Outstanding repurchase requests

Requests outstanding more than 4 months

17

1 Amounts are based on the UPB of the loans associated with the repurchase requests. The balance as of December 31, 2013 includes: (a) $1.6 billion in UPB related to repurchase claims for 

violations of seller representations and warranties and (b) $0.6 billion in UPB related to repurchase claims for violations of servicing guidelines. The balance as of December 31, 2013 

excludes $0.3 billion in UPB related to notices of defect related to servicing violations. 

2 The amount the company expects to collect on outstanding requests is significantly less than the unpaid principal balance (UPB) of the loans primarily because many of these are likely to be 

satisfied by reimbursement of the company’s realized credit losses by seller/servicers, or rescinded in the course of the contractual appeals process. Based on historical loss experience and 

the fact that many of these loans are covered by credit enhancements (e.g., mortgage insurance), Freddie Mac expects the actual credit losses experienced by the company should it fail to 

collect to also be less than the UPB of the loans.

3 Approximately $0.2 billion of the total amount of repurchase requests outstanding at December 31, 2013 were issued due to mortgage insurance rescission or mortgage insurance claim 

denial.

4 Repurchase requests outstanding more than four months include repurchase requests for which appeals were pending.

5 Requests collected are based on the UPB of the loans associated with the repurchase requests, which in many cases is more than the amount of payments received for reimbursement of 

losses for requests associated with foreclosed mortgage loans, negotiated agreements and other alternative remedies. Includes $2.1 billion in 2013 related to settlement agreements with 

certain seller/servicers to release specified loans from certain repurchase obligations in exchange for one-time cash payments. 

6 Consists primarily of those requests that were resolved by the servicer providing missing documentation or rescinded through a successful appeal of the request. Also includes other items 

that affect the UPB of the loan while the repurchase request is outstanding, such as payments made on the loan. 

Repurchase requests1,2

Trend in Repurchase Requests Outstanding 2013 Repurchase Request Activity

3 5

$ Billions

4

6

$ Billions
18

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

$422 $432 $444 $455 $474

0

200

400

600

4Q

2012

1Q

2013

2Q

2013

3Q

2013

4Q

2013

$ Millions
$552 $535 $526 $520 $511

$874.8

$780 $780 $780 $780 

$663 

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

$558 $534 $521 $498 

$461

$650 $650 $650 $650 

$553

$470

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

Mortgage-related investments portfolio ending balance

Mortgage-related investments portfolio limit

19

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.

4 Limit under the Purchase Agreement, as amended on August 17, 2012.

Indebtedness limit

Total debt outstanding

4

4

4

4

4
20

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 December 2013. 

 Source: Freddie Mac. 21

National home prices have experienced a cumulative 

decline of 15% since June 20061

2.5 

5.2 

2.4 

1.3 

2.9 

4.7

2.6 

0.4 

1.3 

2.2 

(0.7)

(1.6)

0.8 0.8

(2.1)

(4.2)

(3.1)

(0.8)

(2.8)

(5.3)

(2.7)

1.2 

0.0

(1.6)

(0.3)

0.7

(2.5)(2.8)

(1.2)

1.1 

(1.1)

(2.1)

0.4 

4.1 

1.1

0.2

2.7

5.3 

1.5 

(0.4)

(6)

(4)

(2)

0

2

4

6

1Q

2004

4Q

2004

3Q

2005

2Q

2006

1Q

2007

4Q

2007

3Q

2008

2Q

2009

1Q

2010

4Q

2010

3Q

2011

2Q

2012

1Q

2013

4Q

2013

Percent 

(%)
-11%

AL

4%

AK

≥ 0%

-11 to -1%

≤-22%

-21 to -12%

-5%

AR

-30%

AZ

-23%

CA

4%

CO

CT -21%

DC 25%

DE -18%

 -34%

FL

-15%

GA

-2%

HI

3%

IA

-16%

ID

-24%

IL

-5%

IN

-1%

KS KY -1%

3%

LA

-11%

-21%

-11%

ME

-22%

MI

-16%

MN

-13%

MO

-8%

MS

1%

MT

NC -6%

41%

ND

2%

NE

-14%

NM

-42%

NV

-11%

NY

-16%

OH

6%

OK

-13%

OR

-7%

PA

RI -28%

-9%

SC

11%

SD

TN -1%

15%

TX

-1%

UT -16%

VA

-2%

VT

-15%

WA

-15%

WI

 3%

WV

8%

WY

-19%

NH

MA

MD

NJ -21%

Home price performance by state

June 2006 to December 20131

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

22
2%

AL

3%

AK

≥ 10%

6 to 9%

0 to 2%

3 to 5%

1%

AR

14%

AZ

19%

CA

8%

CO

CT 2%

DC 13%

DE 3%

15%

FL

15%

GA

8%

HI

6%

IA

9%

ID

8%

IL

4%

IN

4%

KS KY 4%

5%

LA

6%

1%

ME

12%

MI

10%

MN

5%

MO

2%

MS

5%

MT

NC 6%

10%

ND

5%

NE

NJ 5%

1%

NM

25%

NV

3%

NY

4%

OH

3%

OK

12%

OR

3%

PA

RI 3%

6%

SC

5%

SD

TN 6%

9%

TX

11%

UT

3%

VA

9%

WA

6%

WI

 4%

WV

6%

WY

6%

4%

VT

8%

MD

MA

NH

Home price performance by state

December 2012 to December 20131

United States 9%

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

23
0

4

8

12

16

20

24

28

32

Mar09Jun09Sep09Dec09Mar10Jun10Sep10Dec10Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13

Seriously Delinquent (%) 

 Total Mortgage Market Prime Subprime Freddie Mac

24

1 Source: National Delinquency Survey from the Mortgage Bankers Association. Categories represent first lien single-family loans. 

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. 

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

56 47 53 59

73

52 52 53

50

4

12 12 20 15

3

16 14 9 8

2005 2006 2007 2008 2009 2010 2011 2012 2013

Purchase Other Refinance HARP Relief Refinance (Non-HARP)

25

Total 

Refinance 

Loans:

73%

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 (%)
26

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’ creditworthiness at December 31, 2013. 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%. In April 2013, HARP was extended to December 31, 2015. 

2009 2010 2011 2012 2013

Weighted Average Original LTV Ratio1

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

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

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

Weighted Average Credit Score2

Relief refinance (includes HARP) 738 747 744 740 727

All other 757 758 759 762 756

 Total purchases 756 755 755 756 749

2009 2010 2011 2012 2013

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

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

% of single-family credit guarantee portfolio purchases 4% 12% 12% 20% 15%
27

Single-family 4Q 2013 credit losses and REO 

by region and state

1 Based on the unpaid principal balance (UPB) of the single-family credit guarantee portfolio at December 31, 2013. 

2 UPB amounts exclude $408 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 4Q 2013.

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 

(%)

4Q 2013 

Acquisitions

($ Millions)

REO

Inventory

($ Millions)

% of Total

Inventory ($ Millions) % of Total

Region6

1 West $464 28% $8,842 20% 1.73% $456 $1,091 15% ($32) (8%)

2 Northeast 431 26 15,756 36 3.23% 492 1,480 20 146 37

3 North Central 291 18 5,631 13 1.81% 528 2,113 29 119 30

4 Southeast 273 16 10,624 25 3.42% 883 2,167 29 170 42

5 Southwest 194 12 2,463 6 1.36% 188 530 7 (5) (1)

6 Total $1,653 100% $43,316 100% 2.39% $2,547 $7,381 100% $398 100%

State

7 Arizona, California, Florida & Nevada7 $422 26% $12,839 30% 3.01% $880 $2,052 28% $93 23%

8 Illinois, Michigan & Ohio8 176 11 4,113 9 2.11% 376 1,563 21 104 26

9 New York & New Jersey9 145 9 9,088 21 5.11% 99 247 3 33 9

10 All other 910 54 17,276 40 1.88% 1,192 3,519 48 168 42

11 Total $1,653 100% $43,316 100% 2.39% $2,547 $7,381 100% $398 100%

Total Portfolio UPB1 Seriously Delinquent Loans REO Acquisitions & Balance4 Credit Losses (Gains)5
0

2

4

6

8

10

12

14

4Q

2010

1Q

 2011

2Q

2011

3Q

2011

4Q

2011

1Q

2012

2Q

 2012

3Q

2012

4Q

2012

1Q

2013

2Q

2013

3Q

2013

4Q

2013

Percent

California Florida Illinois New Jersey New York Total

0

1

2

3

4

5

6

4Q

2010

1Q

 2011

2Q

2011

3Q

2011

4Q

2011

1Q

2012

2Q

 2012

3Q

2012

4Q

2012

1Q

2013

2Q

2013

3Q

2013

4Q

2013

Percent

West Northeast North Central Southeast Southwest Total

1.3%

Single-family serious delinquency rates by state and 

region

28

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 December 31, 2013. 

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).

1.4%

1.8%

1.7%

2.4%

3.2%

3.4%

6.4%

6.2%

2.4%

2.8%

4.4%
Aging of single-family seriously delinquent loans by 

judicial and non-judicial states

29

1 Excludes loans underlying certain single-family Other Guarantee Transactions since the geographic information is not available to us for these loans. As of December 31, 2013, 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 79,422 23% 60,943 22% 59,129 23%

 More than 1 year and less than or equal to 2 years 50,506 14% 33,756 12% 30,604 12%

 More than 2 years 77,766 22% 67,306 25% 65,154 26%

Non-Judicial States1

 Less than or equal to 1 year 87,641 25% 66,405 25% 60,175 24%

 More than 1 year and less than or equal to 2 years 30,435 9% 22,063 8% 17,968 7%

 More than 2 years 23,824 7% 22,998 8% 19,731 8%

Combined1

 Less than or equal to 1 year 167,063 48% 127,348 47% 119,304 47%

 More than 1 year and less than or equal to 2 years 80,941 23% 55,819 20% 48,572 19%

 More than 2 years 101,590 29% 90,304 33% 84,885 34%

Total 349,594 100% 273,471 100% 252,761 100%

As of 12/31/2012 As of 9/30/2013 As of 12/31/2013
Option FICO FICO

Original 

LTV

FICO < 620 & 

Original 

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

1 UPB $ Billions $1,653 $57 $35 $6 $48 $96 $258 $13

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

3 Average UPB per loan $154,632 $154,285 $225,114 $199,528 $126,197 $132,737 $169,694 $136,640

4 Fixed Rate (% of total portfolio) 94% 63% 18% 0% 95% 94% 98% 98%

5 Owner Occupied 90% 82% 81% 76% 95% 94% 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% 87% 93% 86% 83% 80% 98% 102%

9 CLTV > 90% 17% 46% 53% 41% 37% 33% 61% 68%

10 CLTV > 100% 10% 33% 37% 29% 25% 22% 35% 49%

11 CLTV > 110% 6% 22% 23% 19% 16% 14% 22% 32%

12 Average FICO Score4 739 711 717 711 585 643 725 582

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

Book Year5

14 2013 16% 0% 0% 0% 1% 5% 10% 1%

15 2012 16% 0% 0% 0% 1% 4% 7% 0%

16 2011 8% 0% 0% 0% 1% 2% 2% 0%

17 2010 7% 0% 1% 0% 1% 3% 2% 0%

18 2009 7% 0% 1% 0% 2% 3% 2% 1%

19 New single-family book (2009 to 2013) 54% 0% 2% 0% 6% 17% 23% 2%

20 HARP and other relief refinance loans6 21% 0% 0% 0% 29% 22% 60% 54%

21 2005 to 2008 Legacy single-family book 16% 84% 94% 71% 44% 41% 11% 28%

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

23 % of Loans with Credit Enhancement 13% 12% 9% 15% 22% 19% 49% 53%

24 % Seriously Delinquent7 2.39% 10.06% 12.51% 12.30% 9.99% 7.18% 3.22% 9.60%

Total Portfolio 

as of 

December 31, 2013

30

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 Annual Report on Form 10-K for the year ended December 31, 2013. 

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 December 31, 2013, 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 2013). All other refinance loans are presented 

within the year that the refinancing occurred.

7 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. 
Attribute 2013 2012 2011 2010 2009

New singlefamily book 

(2009 to 2013)

HARP and 

other relief 

refinance 

loans3

2005 to 2008 

Legacy singlefamily book

Pre-2005 

Legacy singlefamily book

1 UPB $ Billions $1,653 $270 $265 $120 $113 $120 $888 $342 $268 $155

2 Original Loan-to-Value (OLTV) 75% 71% 69% 69% 69% 69% 69% 89% 75% 72%

3 OLTV > 90% 16% 9% 7% 5% 4% 3% 7% 45% 11% 11%

4 Current Loan-to-Value (CLTV) 69% 69% 61% 58% 60% 62% 63% 81% 87% 50%

5 CLTV > 100% 10% 0% 0% 0% 0% 1% 0% 21% 29% 3%

6 CLTV > 110% 6% 0% 0% 0% 0% 0% 0% 13% 19% 1%

7 Average FICO Score4 739 755 761 757 754 751 757 735 704 711

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

9 Adjustable-rate 6% 5% 5% 9% 4% 1% 5% 1% 15% 11%

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

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

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

Geography

13 Arizona, California, Florida & Nevada6 26% 27% 26% 21% 19% 17% 23% 28% 31% 22%

14 Illinois, Michigan & Ohio7 11% 10% 10% 10% 10% 9% 10% 13% 9% 14%

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

16 All other states 54% 55% 57% 60% 62% 64% 59% 51% 50% 53%

17 % of Loans with Credit Enhancement 13% 18% 13% 11% 8% 8% 13% 12% 18% 11%

18 % Seriously Delinquent9 2.39% 0.01% 0.04% 0.18% 0.39% 0.88% 0.24% 0.64% 8.77% 3.24%

Total Portfolio 

as of 

December 31, 2013

Book Year 2

31

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 December 31, 2013, 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 2013). 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 Based on the number of loans that are three monthly payments or more past due or in the process of foreclosure.
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

Yr11

Q3

Cumulative Foreclosure Transfer and Short Sale Rate

Quarter Post Origination

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

2012

32

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

2003

2008

2009 2010 2013 2011
33

Total Multifamily (MF) Portfolio

UPB $ Billions

Multifamily portfolio composition

$167

$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

MF loan portfolio MF investment securities portfolio MF guarantee portfolio
34

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.

$2.1

$6.4

$13.7

$21.2

$28.0

2009 2010 2011 2012 2013
Multifamily new business volume by state1 (%)

AL

0.9%

AK

0.0%

> 5%

> 3% - 5%

≤ 1%

> 1% - 3%

MF New Business Volume $25.9B

Twelve Months Ended December 31, 2013

AR

0.1%

AZ

2.8%

CA

16.8%

CO

2.7%

CT 

0.8%

DC

0.3%

DE

0.4%

FL

8.8%

GA

5.0%

HI

0.2%

IA

0.2%

ID

0.1%

IL

2.8%

IN

0.8%

KS

0.4%

KY

0.3%

LA

0.8%

MD

2.9%

ME

<0.1%

MI

1.4%

MN

0.6%

MO

0.9%

MS

0.1%

MT

0.0%

NC

2.4%

ND

<0.1%

NE 

0.4%

NJ

4.2%

NM

0.3%

NV

0.8%

NY

7.2%

OH

2.3%

OK

0.4%

OR

1.3%

PA

3.0%

RI

0.3%

SC

0.3%

SD

0.0%

TN

0.9%

TX

14.1%

UT

1.1% VA

5.6%

VT

0.0%

WA 

3.3%

WI

0.6%

WV

0.0%

WY

<0.1%

NH

0.1%

35

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.

MA 1.2%
Multifamily mortgage portfolio UPB concentration by 

state1

AL

0.9%

AK

0.0%

MF Mortgage Portfolio $132.8B2

As of December 31, 2013

AR

0.3%

AZ

2.3%

CA

16.7%

CO

3.0%

CT

0.9%

DC

0.7%

DE

0.2%

FL

7.0%

GA

4.4%

HI

0.2%

IA

0.2%

ID

0.1%

IL

2.5%

IN

0.7%

KS

0.8%

KY

0.5%

LA

0.8%

MA 1.8%

MD

5.1%

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

1.9%

OK

0.5%

OR

0.9%

PA

2.5%

RI

0.2%

SC

1.0%

SD

0.1%

TN

1.4%

TX

12.7%

UT

0.6% VA

5.3%

VT

0.0%

WA

3.4%

WI

0.7%

WV

0.1%

WY

<0.1%

NH

0.2%

36

> 5%

> 2% - 5%

≤ 1%

> 1% - 2%

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.
37

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 December 31, 2013.

Year of Acquisition or Guarantee3

1 2006 and prior $25.2 0.17% $21.2 0.01% $19.1 - %

2 2007 17.8 0.86 15.8 0.29 15.1 0.54

3 2008 16.6 0.30 14.1 0.15 13.2 0.18

4 2009 12.2 - 11.5 - 11.2 -

5 2010 12.0 - 11.4 - 10.9 0.13

6 2011 17.0 - 16.4 - 15.9 -

7 2012 26.6 - 24.1 - 23.7 -

8 2013 N/A N/A 17.6 - 23.7 -

Total $127.4 0.19% $132.1 0.05% $132.8 0.09%

Maturity Dates

9 2013 $3.3 0.86% $0.5 1.73% N/A N/A

10 2014 5.8 - 3.4 - $2.1 0.12%

11 2015 9.8 0.53 7.8 - 6.9 0.05

12 2016 13.0 0.05 11.9 0.04 11.2 -

13 2017 10.9 0.02 10.4 0.17 10.0 0.43

14 2018 17.3 - 17.1 - 17.0 -

15 Beyond 2018 67.3 0.24 81.0 0.05 85.6 0.08

Total $127.4 0.19% $132.1 0.05% $132.8 0.09%

Geography4

16 California $21.1 0.12% $21.9 - % $22.4 0.03%

17 Texas 15.9 0.13 16.3 0.04 16.7 0.02

18 New York 10.7 0.09 11.3 0.09 11.4 0.12

19 Florida 8.4 0.12 9.3 - 9.3 0.28

20 Virginia 6.6 - 7.1 - 7.0 0.37

21 Maryland 6.9 - 6.8 - 6.7 -

22 All other states 57.8 0.32 59.4 0.09 59.3 0.08

 Total $127.4 0.19% $132.1 0.05% $132.8 0.09%

UPB

($ Billions)

December 31, 2013

UPB

($ Billions)

Delinquency 

Rate2 

(%) 

September 30, 2013

Delinquency 

Rate2

(%) 

December 31, 2012

Delinquency 

Rate2 

 (%) 

UPB

($ Billions)
38

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 $48.5 0.06% $50.8 - % $50.6 0.05%

2 > $5M & <= $25M 70.0 0.26 72.4 0.07 73.2 0.11

3 > $3M & <= $5M 5.7 0.22 5.8 0.23 6.0 0.11

4 > $750K & <= $3M 3.0 0.65 2.9 0.23 2.8 0.17

5 <= $750K 0.2 0.37 0.2 0.45 0.2 0.46

6 Total $127.4 0.19% $132.1 0.05% $132.8 0.09%

Legal Structure

7 Unsecuritized Loans $76.6 0.08% $64.9 0.05% $59.2 0.08%

8 K Certificates 37.2 0.07 54.1 0.01 59.8 0.07

9 Other Freddie Mac mortgage-related securities 4.2 3.20 4.0 0.75 4.8 0.59

10 Other guarantee commitments 9.4 0.13 9.1 - 9.0 -

11 Total $127.4 0.19% $132.1 0.05% $132.8 0.09%

Credit Enhancement

12 Credit Enhanced $47.8 0.36% $64.1 0.06% $70.2 0.11%

13 Non-Credit Enhanced 79.6 0.10 68.0 0.05 62.6 0.07

14 Total $127.4 0.19% $132.1 0.05% $132.8 0.09%

Other

15 Original LTV > 80% $5.8 2.31% $5.2 0.33% $5.6 0.19%

16 Original DSCR below 1.103 $2.3 2.97% $2.0 0.30% $2.2 - %

December 31, 2013

UPB

($ Billions)

Delinquency 

Rate2

(%) 

September 30, 2013

Delinquency 

Rate2 

(%) 

December 31, 2012

Delinquency 

Rate2 

 (%) 

UPB

($ Billions)

UPB

($ Billions)
0

2

4

6

8

10

12

14

3Q 2009 1Q 2010 3Q 2010 1Q 2011 3Q 2011 1Q 2012 3Q 2012 1Q 2013 3Q 2013

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

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

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 December 31, 2013 was 0.09%. 

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 fourth quarter of 2013.

 

39

6.41%

0.96%

0.05%

1
40

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, 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 after the date of this presentation.