Fourth Quarter 2019 

Financial Results Supplement

February 13, 2020
Ä Freddie Mac 2

Financial Highlights

Note: Totals may not add due to rounding.

4Q18 1Q19 2Q19 3Q19 4Q19

$1.5

$1.7

$1.8 $1.8

$2.4

Adjusted net interest income Adjusted guarantee fee income

4Q18 1Q19 2Q19 3Q19 4Q19

$1.1 $1.0 $1.0

$0.8 $0.7

$1.9 $1.9

$2.2

$2.4 $2.4

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 Comprehensive income increased

from the prior quarter driven primarily

by higher amortization income, gains

on debt extinguishment, and lower

market-related losses.

1 1
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

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

$1,896 $1,914 $1,935 $1,961 $1,994

$237

$2,133

$243

$2,157

$249

$2,184

$260

$2,221

$271

$2,265

+6% YoY 

increase Å Total guarantee portfolio: 

Ç Single-Family - grew $98 billion, or 5% year-overyear.

Ç Multifamily - grew $34 billion, or 14% year-overyear.

Å Total investments portfolio:

Ç Mortgage-related investments portfolio - decreased

$5 billion, or 2% year-over-year.

Mortgage-related investments portfolio

Other investments portfolio

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

$218 $219 $219 $222 $213

$63

$281

$77

$296

$83

$302

$90

$312

$103

$316

+12% YoY 

increase

Discount notes Callable debt

Non-callable debt Other

Weighted average maturity in years

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

11% 17% 13% 15% 21%

42% 37% 45% 37% 34%

37% 34% 32% 39% 36%

10% 12% 10% 9% 9%

2.9 2.6 2.6 2.5 2.4

3

2,4

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.

Purchase Agreement

2019 Debt Cap $300B

$256 $273 $280 $282 $283

FHFA 

2019 Limit

$225B*
Ä Freddie Mac 4

Conservatorship Matters and Total Equity

Treasury draws and dividend payments

$ Billions

Draws from Treasury

Dividend payments to Treasury

2008-2017 2018 2019 Cumulative

Total

$71.3

$0.3 $0.0

$71.6

$112.4

$4.1 $3.1

$119.7

 6

Note: Totals may not add due to rounding.

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. 

2017 2018 2019

-$0.3

$4.5

$9.1

Total Equity / Net Worth

$ Billions
Ä Freddie Mac 5

Average monthly net new jobs (non-farm)

National unemployment rate (as of the last month

in each quarter)

4Q18 1Q19 2Q19 3Q19 4Q19

233,000

174,000 152,000

193,000 184,000

3.9% 3.8% 3.7% 3.5% 3.5%

Key Economic Indicators

National home prices increased by an average of 3.8% 

over the past year

Quarterly ending interest rates

30-year mortgage rate, based on Primary Mortgage

Market Survey (PMMS)

10-year LIBOR

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

4.55%

4.06%

3.73% 3.64% 3.65%

2.72% 2.41%

1.96%

1.57%

1.89%

United States (Not Seasonally Adjusted)

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

168

196

Freddie Mac House Price Index (December 2000 = 100)

(2006 Peak)

National home prices have surpassed the 2006 peak

Unemployment rate and job creation
Ä Freddie Mac 6

Home purchase UPB Refinance UPB

4Q18 1Q19 2Q19 3Q19 4Q19

$55 $46

$65 $76 $63

$22

$77

$24

$70 $37

$102

$58

$134

$84

$147

40 40

44 45

48

Single-Family Guarantee

Financial Highlights and Key Metrics

Note: Totals may not add due to rounding.

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

Single-Family Guarantee Segment Earnings

$ Millions

4Q18 1Q19 2Q19 3Q19 4Q19

$1,024

$740

$955

$1,250

$1,420 Guarantee fees charged on new acquisitions (bps)7

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

Legacy and relief refinance single-family portfolio

4Q18 1Q19 2Q19 3Q19 4Q19

$1,550 $1,579 $1,613 $1,654 $1,701

$346

$1,896

$335

$1,914

$322

$1,935

$307

$1,961

$293

$1,994

+5% 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

4Q18 1Q19 2Q19 3Q19 4Q19

0.22% 0.22% 0.23% 0.24% 0.26%

1.93% 1.91% 1.82% 1.77% 1.84%

0.69% 0.67% 0.63% 0.61% 0.63%

(82%) (83%) (83%) (84%) (85%)

New business activity

$ Billions
Ä Freddie Mac 7

4Q18 1Q19 2Q19 3Q19 4Q19

18%

16%

14% 13% 13%

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

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

4Q18 1Q19 2Q19 3Q19 4Q19

77% 77% 77% 77% 75%

Single-Family Guarantee

Loan Purchase Credit Characteristics

4Q18 1Q19 2Q19 3Q19 4Q19

747 747 750 752 752

Home purchase Cash-out refinance

Other refinance Investment properties as a

percentage of loan purchases

4Q18 1Q19 2Q19 3Q19 4Q19

71% 65% 64% 57% 43%

18% 20% 18% 16% 20%

11% 15% 18% 27% 37%

6% 6% 5% 4% 4%

Loan purpose and investment properties as a

percentage of loan purchases
Ä Freddie Mac 8

Total single-family credit guarantee portfolio with

transferred credit risk

$ Billions

Reference pool UPB at issuance

Reference pool UPB outstanding

2015 2016 2017 2018 2019

$385

$598

$858

$1,144

$1,376

$329

$457

$648

$838 $906

19%

26%

35%

44% 45%

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

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

$5.5 $5.8 $5.9 $6.0 $5.9

$1.6 $1.7 $1.3 $1.4 $1.1

$5.3 $6.1 $6.7 $7.3 $8.0

$26.4

$28.1

$28.1 $27.9 $26.9

Single-Family Guarantee 

Credit Risk Transfer Ä STACR / ACIS 
Ä Freddie Mac 9

Multifamily 

Financial Highlights and Key Metrics

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

Multifamily comprehensive income (loss)

$ Millions

4Q18 1Q19 2Q19 3Q19 4Q19

$(199)

$395

$440

$591

$502

É120% AMI >120% AMI

2015 2016 2017 2018 2019

94% 94% 91% 93% 94%

6% 6% 9% 7% 6%

Total portfolio

$ Billions

Guarantee portfolio Mortgage-related securities

Unsecuritized loans and other

12/31/2016 12/31/2017 12/31/2018 12/31/2019

$158

$203

$237

$13 $271

$7

$7

$6

$42

$213 $39

$249

$36

$280 $33

$310

+45% increase 

since 2016

Multifamily market and Freddie Mac delinquency rates

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

MF CMBS Market (60+ day)

4Q15 4Q16 4Q17 4Q18 4Q19

0.08%

0.12%

0.91%

Note: Totals may not add due to rounding.

3Q19

(74%) (82%) (85%) (88%)

$309

Multifamily acquisitions of units by area median

income (AMI) (% of eligible units acquired)
Ä Freddie Mac 10

Multifamily 

Key Metrics, continued

New business activity

$ Billions

New loan purchase activity LIHTC new business activity

2015 2016 2017 2018 2019

$47.3

$47.3

$56.8

$56.8

$73.2

$73.2

$77.5 $77.9

$0.5

$78.0

$0.5

$78.4

Multifamily securitization activity8,9

$ Billions

Primary securitization products

Other securitization products

2015 2016 2017 2018 2019

$36.1

$49.9

$60.7

$66.3 $67.9

$5.1

$41.2 $2.2

$52.1

$6.8

$67.5

$6.5

$72.8

$7.5

$75.4

Note: Totals may not add due to rounding.

Ç During 4Q 2019, the total multifamily loan purchase activity was $17.5 billion.

Approximately 36% of this purchase activity was mission-driven, affordable

housing. 
Ä Freddie Mac 11

Capital Markets 

Financial Highlights and Key Metrics

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

Note: Totals may not add due to rounding.

(66%)

4Q18 1Q19 2Q19 3Q19 4Q19

$648

$534

$433

$10

$539

Capital Markets investments portfolio 

$ Billions

Mortgage investments portfolio

Other investments portfolio

4Q18 1Q19 2Q19 3Q19 4Q19

$167 $171 $173 $171 $168

$62

$229

$76

$247

$81

$254

$87

$258

$100

$268

+17% YoY

increase

Capital Markets cash window securitization

$ Billions

4Q18 1Q19 2Q19 3Q19 4Q19

$38

$30

$45

$59

$73

Capital Markets mortgage investments portfolio

$ Billions

Liquid Securitization pipeline

Less liquid

4Q18 1Q19 2Q19 3Q19 4Q19

$114 $116 $118 $116 $119

$9 $13 $16 $21 $19

$45 $42 $39 $34 $30

$167 $171 $173 $171 $168

+1% YoY

increase

Capital Markets comprehensive income

$ Millions

(68%) (68%) (68%) (68%) (71%)

$269
Ä Freddie Mac 12

Interest-Rate Risk Measures

GAAP Adverse Scenario10(Before-Tax)

$ Billions

Before hedge accounting After hedge accounting

% Change

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

($2.7)

($2.1)

($4.6)

($3.5)

$(4.3)

($0.2) ($0.2)

($0.8)

($0.1) $(0.1)

93% 89%

82%

97% 98%

PVS-L (50 bps) ($ Millions)

4Q18 1Q19 2Q19 3Q19 4Q19

$11 $15

$275

$54 $35

Average duration gap (Months)

4Q18 1Q19 2Q19 3Q19 4Q19

0 0

2

0 0

PVS-Level11 and Average Duration Gap12

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

Multifamily rental units

Single-Family purchase borrowers

Single-Family refinance borrowers

2016 2017 2018 2019

739 820 866 809

745

828

884 987

937

2,421

663

2,311

442

2,192

782

2,578

Housing Market Support

Note: Totals may not add due to rounding.

Number of families Freddie Mac helped 

to own or rent a home13

In Thousands

Number of single-family loan workouts14

In Thousands

Loan modifications

Repayment plans

Forbearance agreements

Short sales and deed-in-lieu

of foreclosure transactions

2016 2017 2018 2019

43 45

60

29

12 10

11

9

5

15

16

7

9

69 5

75

3

90

2

47

Home

Retention

Actions

Foreclosure

Alternatives

15

15

15

15
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 December 31, 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, 2019 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, $1.8 billion, and $1.8 billion increases on December 31, 2017, September 30, 2019, and December 31, 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 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 Excludes re-securitization UPB of primary and other securitization products.

10 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, 2019, the GAAP adverse scenario (for both before and after fair value hedge accounting) was a parallel shift in which rates

decrease by 100 basis points.

11 Portfolio Value Sensitivity (PVS) is the company's estimate of the change in the 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. PVS-L measures the estimated sensitivity of the portfolio value to a 50 basis point parallel movement in interest

rates.

12 Duration gap measures the difference in price sensitivity to interest rate changes between the company's financial assets and liabilities and is expressed in months relative to the value

of assets.

13 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.

14 Consists of both home retention actions and foreclosure alternatives.

15 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, 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.