UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended March 31, 2023

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period from                                to

Commission File Number: 001-34139

Federal Home Loan Mortgage Corporation 

(Exact name of registrant as specified in its charter)

Federally chartered 52-0904874 8200 Jones Branch Drive 22102-3110 (703) 903-2000 corporation McLean, Virginia

(State or other jurisdiction of 

incorporation or organization)

(I.R.S. Employer

Identification No.) (Address of principal executive offices) (Zip Code) (Registrant's telephone number,including area code)

Securities registered pursuant to Section 12(b) of the Act: 

Title of each class Trading Symbol(s) Name of each exchange on which registered

None N/A N/A

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the 

Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was 

required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be 

submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such 

shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a 

smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated 

filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☒

Non-accelerated filer ☐ Smaller reporting company ☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition 

period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the 

Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange 

Act).    Yes ☐  No ☒		 			

As of April 11, 2023, there were 650,059,553 shares of the registrant's common stock outstanding.
Table of Contents

Page

MANAGEMENT'S DISCUSSION AND ANALYSIS OF 

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

1

n Introduction 1

n Housing and Mortgage Market Conditions 4

n Consolidated Results of Operations 6

n Consolidated Balance Sheets Analysis 9

n Our Portfolios 10

n Our Business Segments 12

n Risk Management 22

l	Credit Risk 22

l	Market Risk 29

n Liquidity and Capital Resources 32

n Critical Accounting Estimates 39

n Regulation and Supervision 40

n Forward-Looking Statements 42

FINANCIAL STATEMENTS 44

OTHER INFORMATION 90

CONTROLS AND PROCEDURES 92

EXHIBIT INDEX 93

SIGNATURES 94

FORM 10-Q INDEX 95

Table of Contents

Freddie Mac 1Q 2023 Form 10-Q i
MD&A TABLE INDEX

1 Summary of Consolidated Statements of Income and Comprehensive Income 6

2 Components of Net Interest Income 6

3 Analysis of Net Interest Yield 7

4 Components of Non-Interest Income 7

5 (Provision) Benefit for Credit Losses 8

6 Components of Non-Interest Expense 8

7 Summarized Condensed Consolidated Balance Sheets 9

8 Mortgage Portfolio 10

9 Mortgage-Related Investments Portfolio 11

10 Other Investments Portfolio 11

11 Single-Family Segment Financial Results 17

12 Multifamily Segment Financial Results 21

13 Allowance for Credit Losses Activity 22

14 Allowance for Credit Losses Ratios 22

15 Single-Family New Business Activity 24

16 Single-Family Mortgage Portfolio CRT Issuance 24

17 Single-Family Mortgage Portfolio Credit Enhancement Coverage Outstanding 24

18 Serious Delinquency Rates for Credit-Enhanced and Non-Credit-Enhanced Loans in Our Single-Family Mortgage Portfolio 25

19 Credit Quality Characteristics of Our Single-Family Mortgage Portfolio 26

20 Single-Family Mortgage Portfolio Attribute Combinations 26

21 Multifamily Mortgage Portfolio CRT Issuance 28

22 Credit-Enhanced and Non-Credit-Enhanced Loans Underlying Our Multifamily Mortgage Portfolio 29

23 Credit Quality of Our Multifamily Mortgage Portfolio Without Credit Enhancement 29

24 PVS-YC and PVS-L Results Assuming Shifts of the Yield Curve 30

25 Duration Gap and PVS Results 30

26 PVS-L Results Before Derivatives and After Derivatives 30

27 Earnings Sensitivity to Changes in Interest Rates 31

28 Liquidity Sources 32

29 Funding Sources 33

30 Debt of Freddie Mac Activity 33

31 Maturity and Redemption Dates 34

32 Debt of Consolidated Trusts Activity 34

33 Net Worth Activity 35

34 Regulatory Capital Components 36

35 Statutory Capital Components 36

36 Capital Metrics Under ERCF 37

37 Forecasted House Price Growth Rates 39

Table Description Page

 

Table of Contents

Freddie Mac 1Q 2023 Form 10-Q ii
Management's Discussion and Analysis of 

Financial Condition and Results of Operations

This Quarterly Report on Form 10-Q includes forward-looking statements that are based on current expectations and that are 

subject to significant risks and uncertainties. These forward-looking statements are made as of the date of this Form 10-Q. We 

undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date of this Form 

10-Q. Actual results might differ significantly from those described in or implied by such statements due to various factors and 

uncertainties, including those described in the MD&A - Forward-Looking Statements section of this Form 10-Q and the 

Introduction and Risk Factors sections of our Annual Report on Form 10-K for the year ended December 31, 2022, or 2022 

Annual Report.

Throughout this Form 10-Q, we use certain acronyms and terms that are defined in the Glossary of our 2022 Annual Report. 

You should read the following MD&A in conjunction with our 2022 Annual Report and our condensed consolidated financial 

statements and accompanying notes for the three months ended March 31, 2023 included in Financial Statements.

INTRODUCTION

Freddie Mac is a GSE chartered by Congress in 1970, with a mission to provide liquidity, stability, and affordability to the U.S. 

housing market. We do this primarily by purchasing single-family and multifamily residential mortgage loans originated by 

lenders. In most instances, we package these loans into guaranteed mortgage-related securities, which are sold in the global 

capital markets, and transfer interest-rate and liquidity risks to third-party investors. In addition, we transfer mortgage credit risk 

exposure to third-party investors through our credit risk transfer programs, which include securities- and insurance-based 

offerings. We also invest in mortgage loans and mortgage-related securities. We do not originate mortgage loans or lend money 

directly to mortgage borrowers.

We support the U.S. housing market and the overall economy by enabling America's families to access mortgage loan funding 

with better terms and by providing consistent liquidity to the single-family and multifamily mortgage markets. We have helped 

many distressed borrowers keep their homes or avoid foreclosure and have helped many distressed renters avoid eviction.

Since September 2008, we have been operating in conservatorship, with FHFA as our Conservator. The conservatorship and 

related matters significantly affect our management, business activities, financial condition, and results of operations. Our future 

is uncertain, and the conservatorship has no specified termination date. We do not know what changes may occur to our 

business model during or following conservatorship, including whether we will continue to exist. In connection with our entry 

into conservatorship, we entered into the Purchase Agreement with Treasury, under which we issued Treasury both senior 

preferred stock and a warrant to purchase common stock. Our Purchase Agreement with Treasury is critical to keeping us 

solvent and avoiding the appointment of a receiver by FHFA under statutory mandatory receivership provisions. We believe the 

support provided by Treasury pursuant to the Purchase Agreement currently enables us to have adequate liquidity to conduct 

normal business activities. For additional information on the conservatorship and related matters and the Purchase Agreement, 

see our 2022 Annual Report.

Management's Discussion and Analysis Introduction 

Freddie Mac 1Q 2023 Form 10-Q 1
Business Results

Consolidated Financial Results

Net Revenues and Net Income

(In billions)

$5.8

$5.4

$5.2

$4.8 $4.8

$3.8

$2.5

$1.3

$1.8

$2.0

Net Revenues Net Income

1Q22 2Q22 3Q22 4Q22 1Q23

Net Worth

(In billions)

$31.7

$34.1

$35.2

$37.0

$39.1

03/31/22 06/30/22 09/30/22 12/31/22 03/31/23

Key Drivers:

n	 Net income was $2.0 billion, a decrease of 47% year-over-year, primarily driven by lower net revenues and a credit reserve 

build in the current period compared to a credit reserve release in the prior year period.

n Net revenues were $4.8 billion, a decrease of 17% year-over-year, as higher net interest income was offset by a decline in 

non-interest income.

n	 Net worth was $39.1 billion as of March 31, 2023, up from $37.0 billion as of December 31, 2022 and $31.7 billion as of 

March 31, 2022. The quarterly increases in net worth have been, or will be, added to the aggregate liquidation preference 

of the senior preferred stock. The liquidation preference of the senior preferred stock was $109.7 billion on March 31, 2023, 

and will increase to $111.7 billion on June 30, 2023 based on the increase in net worth in 1Q 2023. 

Market Liquidity

 Market Liquidity

(In thousands)

834

616

542

504

250

279 263

297

200 157

412

205 95

52

33

143

148

150

252

60

Single-Family home purchase borrowers Single-Family refinance borrowers Multifamily rental units

1Q22 2Q22 3Q22 4Q22 1Q23

We support the U.S. housing market by executing our mission to provide liquidity and help maintain credit availability for new 

and refinanced single-family mortgages as well as for rental housing. We provided $65 billion in liquidity to the mortgage market 

in 1Q 2023, which enabled the financing of 250,000 home purchases, refinancings, and rental units.

Management's Discussion and Analysis Introduction 

Freddie Mac 1Q 2023 Form 10-Q 2
Mortgage Portfolio Balances

Mortgage Portfolio

(UPB in billions)

$3,299 $3,343 $3,387 $3,415 $3,415

$2,884 $2,928 $2,971 $2,986 $2,989

$415 $415 $416 $429 $426

Single-Family mortgage portfolio Multifamily mortgage portfolio

03/31/22 06/30/22 09/30/22 12/31/22 03/31/23

Key Drivers:

n	 Our mortgage portfolio increased 4% year-over-year to $3.4 trillion at March 31, 2023.

l Our Single-Family mortgage portfolio was $3.0 trillion at March 31, 2023, up 4% year-over-year and flat quarter-overquarter, as portfolio growth has moderated in recent periods due to the slowdown in new business activity as both 

home purchase activity and refinance activity slowed due to higher mortgage interest rates.

l Our Multifamily mortgage portfolio was $426 billion at March 31, 2023, up 3% year-over-year and down 1% quarterover-quarter, primarily due to the slowdown in new business activity as higher mortgage interest rates and greater 

market uncertainty have reduced demand for multifamily mortgage financing.

Credit Risk Transfer

Single-Family Mortgage Portfolio with Credit Enhancement 

(UPB in billions)

$1,594

$1,726

$1,803 $1,832 $1,840

55%

59%

61% 61% 62%

UPB Percentage

03/31/22 06/30/22 09/30/22 12/31/22 03/31/23

Multifamily Mortgage Portfolio with Credit Enhancement 

(UPB in billions)

$389 $397 $394 $398 $396

94% 96% 95% 93% 93%

UPB Percentage

03/31/22 06/30/22 09/30/22 12/31/22 03/31/23

In addition to transferring interest-rate and liquidity risk to third-party investors through our securitization activities, we engage 

in various credit enhancement arrangements to reduce our credit risk exposure. We transfer a portion of the credit risk, 

primarily on recently acquired loans, through our CRT programs. We also reduce our credit risk exposure through other credit 

enhancement arrangements, mainly primary mortgage insurance. See MD&A - Risk Management – Credit Risk for 

additional information on our credit enhancements and CRT programs.

Management's Discussion and Analysis Introduction 

Freddie Mac 1Q 2023 Form 10-Q 3
HOUSING AND MORTGAGE MARKET CONDITIONS

The following charts present certain housing and mortgage market indicators that can significantly affect our business and 

financial results. Certain market and macroeconomic prior period data have been updated to reflect revised historical data. For 

additional information on the effect of these indicators on our business and financial results, see MD&A – Consolidated 

Results of Operations and MD&A – Our Business Segments.

Single-Family

 U.S. Single-Family Home Sales and House Prices 6,759

5,976

5,357

4,795

4,981

5,983

5,367 4,777 4,197 4,330

776

609

580

598 651

4.4% 2.4% (1.4)% (0.7)% 0.8%

Sales of existing homes (units in thousands)

Sales of new homes (units in thousands)

Single-family house price growth rate

1Q22 2Q22 3Q22 4Q22 1Q23

Sources: National Association of Realtors, U.S. Census Bureau, and Freddie Mac 

House Price Index.

 U.S. Single-Family Mortgage Originations 

_

(UPB in billions)

$995

$725

$650

$505

$335

3.11%

4.67%

5.70%

6.70% 6.42%

U.S. single-family originations

30-year PMMS

4Q21 1Q22 2Q22 3Q22 4Q22

Source: Inside Mortgage Finance. 1Q 2023 U.S. single-family mortgage 

originations data is not yet available.

Single-Family Serious Delinquency Rates

2.39%

2.12%

1.90% 1.89%

0.92% 0.76% 0.67% 0.66% 0.62%

Total mortgage market

Freddie Mac

1Q22 2Q22 3Q22 4Q22 1Q23

Source: Freddie Mac and National Delinquency Survey from the Mortgage 

Bankers Association. 1Q 2023 total mortgage market rate is not yet available.

Single-Family Mortgage Debt Outstanding

(UPB in billions)

$2,792 $2,884 $2,928 $2,971 $2,986

$12,543 $12,699 $12,975 $13,201 $13,365

Freddie Mac Single-Family mortgage portfolio

U.S. single-family mortgage debt outstanding

4Q21 1Q22 2Q22 3Q22 4Q22

Source: Freddie Mac and Federal Reserve Financial Accounts of the United 

States of America. 1Q 2023 U.S. single-family mortgage debt outstanding data 

is not yet available.

Management's Discussion and Analysis Housing and Mortgage Market Conditions

Freddie Mac 1Q 2023 Form 10-Q 4
Multifamily

Apartment Vacancy Rates and Change in Effective Rents

4.7% 4.6% 4.6% 4.7% 4.9%

2.6% 3.0% 1.9% 2.0%

(1.0)%

0.8%

Apartment vacancy rates

Quarterly change in effective rents

Long-term quarterly effective rent growth rate

(2000 - 1Q23)

1Q22 2Q22 3Q22 4Q22 1Q23

Source: Reis.

Multifamily Property Price Growth Rate

4.1%

3.3%

(0.8)%

(6.4)% (6.3)%

1Q22 2Q22 3Q22 4Q22 1Q23

Source: Real Capital Analytics Commercial Property Price Index (RCA CPPI).

Multifamily Delinquency Rates

0.08% 0.07%

0.13% 0.12% 0.13%

1.26%

1.12%

0.99%

0.92%

0.69%

0.22%

0.18%

0.15%

0.17%

Freddie Mac

Multifamily CMBS market

FDIC insured institutions

1Q22 2Q22 3Q22 4Q22 1Q23

Source: Freddie Mac, FDIC Quarterly Banking Profile, Intex Solutions, Inc., and 

Wells Fargo Securities (Multifamily CMBS market, excluding REOs). The 1Q 2023 

delinquency rate for FDIC insured institutions is not yet available.

Multifamily Mortgage Debt Outstanding

(UPB in billions)

$415 $415 $415 $416 $429

$1,885 $1,925

$1,967

$2,007 $2,047

Freddie Mac Multifamily mortgage portfolio

U.S. multifamily mortgage debt outstanding

4Q21 1Q22 2Q22 3Q22 4Q22

Source: Freddie Mac and Federal Reserve Financial Accounts of the United 

States of America. 1Q 2023 U.S. multifamily mortgage debt outstanding data is 

not yet available.

Management's Discussion and Analysis Housing and Mortgage Market Conditions

Freddie Mac 1Q 2023 Form 10-Q 5
CONSOLIDATED RESULTS OF OPERATIONS

The discussion of our consolidated results of operations should be read in conjunction with our condensed consolidated 

financial statements and accompanying notes. Our financial results and business volumes could be negatively affected by 

adverse changes in the housing market or economic conditions, including volatility and stress within the banking sector and the 

measures governments and financial services companies take in response. Stress in U.S. regional banks could drive elevated 

counterparty credit risk and indirect risk due to financing or banking relationships that our counterparties have with the affected 

banking organizations. We could also experience declines in the liquidity in the markets for our securities as a result of any such 

adverse changes or regulatory responses to adverse changes. See Risk Factors in our 2022 Annual Report for additional 

information.

The table below compares our summarized consolidated results of operations. 

Table 1 - Summary of Consolidated Statements of Income and Comprehensive Income

Change

(Dollars in millions) 1Q 2023 1Q 2022 $ %

Net interest income $4,501 $4,104 $397 10 %

Non-interest income 326 1,742 (1,416) (81) 

Net revenues 4,827 5,846 (1,019) (17) 

(Provision) benefit for credit losses (395) 837 (1,232) (147) 

Non-interest expense (1,932) (1,932) — — 

Income before income tax expense 2,500 4,751 (2,251) (47) 

Income tax expense (505) (953) 448 47 

Net income 1,995 3,798 (1,803) (47) 

Other comprehensive income (loss), 

net of taxes and reclassification adjustments 54 (120) 174 145 

Comprehensive income $2,049 $3,678 ($1,629) (44) %

Net Revenues

Net Interest Income

The table below presents the components of net interest income.

Table 2 - Components of Net Interest Income

Change

(Dollars in millions) 1Q 2023 1Q 2022 $ %

Guarantee net interest income:

Contractual net interest income $3,666 $3,334 $332 10 %

Deferred fee income 207 1,042 (835) (80) 

Total guarantee net interest income 3,873 4,376 (503) (11) 

Investments net interest income 1,432 579 853 147 

Impact on net interest income from hedge accounting (804) (851) 47 6 

Net interest income $4,501 $4,104 $397 10 %

Key Drivers:

n Guarantee net interest income

l	 1Q 2023 vs. 1Q 2022 - Decreased as continued mortgage portfolio growth and higher average portfolio guarantee fee 

rates were offset by a decline in deferred fee income due to slower prepayments driven by higher mortgage interest 

rates.

n Investments net interest income

l	 1Q 2023 vs. 1Q 2022 - Increased primarily due to higher returns on securities purchased under agreements to resell 

as a result of higher short-term interest rates.

Management's Discussion and Analysis Consolidated Results of Operations

Freddie Mac 1Q 2023 Form 10-Q 6
n Impact on net interest income from hedge accounting

l	 1Q 2023 vs. 1Q 2022 - Decreased due to a favorable change in the earnings mismatch on qualifying fair value hedge 

relationships, partially offset by higher interest expense on derivatives in hedge relationships as a result of higher 

interest rates.

Net Interest Yield Analysis

The table below presents a yield analysis of interest-earning assets and interest-bearing liabilities. 

Table 3 - Analysis of Net Interest Yield

1Q 2023 1Q 2022

(Dollars in millions)

Average

Balance

Interest

Income

(Expense)

Average

Rate

Average

Balance

Interest

Income

(Expense)

Average

Rate

Interest-earning assets:

Cash and cash equivalents $13,758 $121 3.51 % $15,832 $3 0.07 %

Securities purchased under agreements to resell 107,516 1,220 4.54 88,675 23 0.11 

Investment securities 38,126 316 3.31 50,373 384 3.05 

Mortgage loans(1) 3,042,128 23,304 3.06 2,901,060 17,310 2.39 

Other assets 1,930 26 5.30 5,534 20 1.40 

Total interest-earning assets 3,203,458 24,987 3.12 3,061,474 17,740 2.32 

Interest-bearing liabilities:

Debt of consolidated trusts 2,975,417 (18,261) (2.45) 2,836,484 (13,249) (1.87) 

Debt of Freddie Mac 187,599 (2,225) (4.74) 182,580 (387) (0.85) 

Total interest-bearing liabilities 3,163,016 (20,486) (2.59) 3,019,064 (13,636) (1.81) 

Impact of net non-interest-bearing funding 40,442 — 0.03 42,410 — 0.03 

Total funding of interest-earning assets 3,203,458 (20,486) (2.56) 3,061,474 (13,636) (1.78) 

Net interest income/yield $4,501 0.56 % $4,104 0.54 %

(1) Loan fees included in net interest income were $0.3 billion and $0.5 billion during 1Q 2023 and 1Q 2022, respectively.

Non-Interest Income

The table below presents the components of non-interest income.

Table 4 - Components of Non-Interest Income

Change

(Dollars in millions) 1Q 2023 1Q 2022 $ %

Guarantee income:

Contractual guarantee fees 324 $318 $6 2 %

Guarantee obligation amortization 279 299 (20) (7) 

Guarantee asset fair value changes (137) (547) 410 75 

Total guarantee income 466 70 396 566 

Investment gains, net:

Single-Family (179) 1,252 (1,431) (114) 

Multifamily (46) 261 (307) (118) 

Total investment gains, net (225) 1,513 (1,738) (115) 

Other income 85 159 (74) (47) 

Non-interest income $326 $1,742 ($1,416) (81) %

Management's Discussion and Analysis Consolidated Results of Operations

Freddie Mac 1Q 2023 Form 10-Q 7
Key Drivers:

n Guarantee income

l	 1Q 2023 vs. 1Q 2022 - Increased as 1Q 2022 included fair value losses on guarantee assets due to rising interest 

rates.

n	 Investment gains, net

l	 1Q 2023 vs. 1Q 2022 - Net investment gains in Single-Family declined from elevated levels in 1Q 2022, which were 

driven by spread-related gains on commitments to hedge the securitization pipeline during that period. Multifamily net 

investment gains also declined due to lower revenue from held-for-sale loan purchase and securitization activity as a 

result of lower volumes and lower margins, coupled with net losses from interest-rate risk management activities.

(Provision) Benefit for Credit Losses

The table below presents the components of provision for credit losses.

Table 5 - (Provision) Benefit for Credit Losses 

Change

(Dollars in millions) 1Q 2023 1Q 2022 $ %

Single-Family ($318) $831 ($1,149) (138) %

Multifamily (77) 6 (83) (1,383) 

 (Provision) benefit for credit losses ($395) $837 ($1,232) (147) %

Key Drivers: 

n 1Q 2023 vs. 1Q 2022 - The provision for credit losses for 1Q 2023 was driven by a modest credit reserve build primarily 

attributable to new acquisitions in Single-Family. The benefit for credit losses for 1Q 2022 was primarily driven by a credit 

reserve release due to higher estimated house prices and an improvement in forecasted economic conditions.

Non-Interest Expense 

The table below presents the components of non-interest expense.

Table 6 - Components of Non-Interest Expense 

Change

(Dollars in millions) 1Q 2023 1Q 2022 $ %

Salaries and employee benefits ($374) ($356) ($18) (5) %

Credit enhancement expense (530) (459) (71) (15) 

Benefit for (decrease in) credit enhancement recoveries 49 (17) 66 388 

Legislative assessments expense:

Legislated guarantee fees expense (708) (666) (42) (6) 

Affordable housing funds allocation (27) (93) 66 71 

Total legislative assessments expense (735) (759) 24 3 

Other expense (342) (341) (1) — 

Non-interest expense ($1,932) ($1,932) $— — %

Key Drivers:

n	 Credit enhancement expense 

l	 1Q 2023 vs. 1Q 2022 - Increased primarily due to a higher volume of outstanding cumulative CRT transactions.

n	 Benefit for (decrease in) credit enhancement recoveries

l	 1Q 2023 vs. 1Q 2022 - Increased primarily due to an increase in expected credit losses on covered loans.

n	 Legislative assessments expense

l	 1Q 2023 vs. 1Q 2022 - Decreased primarily due to lower affordable housing funds allocation as a result of lower 

Single-Family new business activity, partially offset by higher legislated guarantee fees expense due to growth in our 

Single-Family mortgage portfolio.

Management's Discussion and Analysis Consolidated Results of Operations

Freddie Mac 1Q 2023 Form 10-Q 8
CONSOLIDATED BALANCE SHEETS ANALYSIS

The table below compares our summarized condensed consolidated balance sheets.

Table 7 - Summarized Condensed Consolidated Balance Sheets

Change

(Dollars in millions) March 31, 2023 December 31, 2022 $ %

Assets:

Cash and cash equivalents $5,873 $6,360 ($487) (8) %

Securities purchased under agreements to resell 108,036 87,295 20,741 24 

Investment securities, at fair value 37,712 38,701 (989) (3) 

Mortgage loans held-for-sale 12,782 12,197 585 5 

Mortgage loans held-for-investment 3,024,249 3,022,318 1,931 — 

Accrued interest receivable, net 8,662 8,529 133 2 

Deferred tax assets, net 5,329 5,777 (448) (8) 

Other assets 22,337 27,156 (4,819) (18) 

Total assets $3,224,980 $3,208,333 $16,647 1 %

Liabilities and Equity:

Liabilities:

Accrued interest payable $7,507 $7,309 $198 3 %

Debt 3,167,514 3,145,832 21,682 1 

Other liabilities 10,892 18,174 (7,282) (40) 

Total liabilities 3,185,913 3,171,315 14,598 — 

Total equity 39,067 37,018 2,049 6 

Total liabilities and equity $3,224,980 $3,208,333 $16,647 1 %

Key Drivers:

As of March 31, 2023 compared to December 31, 2022:

n	 Securities purchased under agreements to resell and debt increased primarily due to an increase in debt issuance to 

prefund upcoming debt maturities and anticipated calls of outstanding debt.

n	 Other assets decreased primarily due to a decline in receivables related to U.S. Treasury securities sold but not yet 

settled.

n	 Other liabilities decreased primarily due to a decline in payables related to U.S. Treasury securities purchased but not yet 

settled.

Management's Discussion and Analysis Consolidated Balance Sheets Analysis 

Freddie Mac 1Q 2023 Form 10-Q 9
OUR PORTFOLIOS

Mortgage Portfolio

The table below presents the UPB of our mortgage portfolio by segment.

Table 8 - Mortgage Portfolio 

March 31, 2023 December 31, 2022

(In millions) Single-Family Multifamily Total Single-Family Multifamily Total

Mortgage loans held-for-investment:

By consolidated trusts $2,909,802 $34,978 $2,944,780 $2,907,999 $30,574 $2,938,573

By Freddie Mac 35,147 12,375 47,522 33,506 17,805 51,311

Total mortgage loans held-for-investment 2,944,949 47,353 2,992,302 2,941,505 48,379 2,989,884 

Mortgage loans held-for-sale 3,373 10,255 13,628 3,564 9,544 13,108 

Total mortgage loans 2,948,322 57,608 3,005,930 2,945,069 57,923 3,002,992 

Mortgage-related guarantees:

Mortgage loans held by nonconsolidated trusts 31,023 357,747 388,770 31,500 360,869 392,369 

Other mortgage-related guarantees 9,290 10,684 19,974 9,476 10,510 19,986 

Total mortgage-related guarantees 40,313 368,431 408,744 40,976 371,379 412,355 

Total mortgage portfolio $2,988,635 $426,039 $3,414,674 $2,986,045 $429,302 $3,415,347 

Guaranteed mortgage-related securities:

Issued by consolidated trusts $2,920,201 $34,978 $2,955,179 $2,916,038 $30,813 $2,946,851

Issued by nonconsolidated trusts 25,329 316,606 341,935 25,772 319,117 344,889

Total guaranteed mortgage-related securities $2,945,530 $351,584 $3,297,114 $2,941,810 $349,930 $3,291,740 

Investments Portfolio

Our investments portfolio consists of our mortgage-related investments portfolio and our other investments portfolio.

Mortgage-Related Investments Portfolio

The Purchase Agreement limits the size of our mortgage-related investments portfolio to a maximum amount of $225 billion. 

The calculation of mortgage assets subject to the Purchase Agreement cap includes the UPB of mortgage assets and 10% of 

the notional value of interest-only securities. We are also subject to additional limitations on the size and composition of our 

mortgage-related investments portfolio pursuant to FHFA guidance. For additional information on the restrictions on our 

mortgage-related investments portfolio, see the MD&A - Conservatorship and Related Matters section in our 2022 

Annual Report.

Management's Discussion and Analysis Our Portfolios

Freddie Mac 1Q 2023 Form 10-Q 10
The table below presents the details of our mortgage-related investments portfolio.

Table 9 - Mortgage-Related Investments Portfolio 

March 31, 2023 December 31, 2022

(In millions) Single-Family Multifamily Total Single-Family Multifamily Total

Unsecuritized mortgage loans:

Securitization pipeline and other loans $10,863 $22,630 $33,493 $10,093 $27,349 $37,442 

Seasoned loans 27,657 — $27,657 26,977 — 26,977 

Total unsecuritized mortgage loans 38,520 22,630 61,150 37,070 27,349 64,419

Mortgage-related securities:

Investment securities 3,988 6,183 10,171 3,440 6,396 9,836 

Debt of consolidated trusts 17,077 698 17,775 17,939 536 18,475 

Total mortgage-related securities 21,065 6,881 27,946 21,379 6,932 28,311 

Mortgage-related investments portfolio $59,585 $29,511 $89,096 $58,449 $34,281 $92,730 

10% of notional amount of interest-only 

securities $21,554 $21,758

Mortgage-related investments portfolio for 

purposes of Purchase Agreement cap 110,650 114,488

Other Investments Portfolio

The table below presents the details of our other investments portfolio.

Table 10 - Other Investments Portfolio 

March 31, 2023 December 31, 2022

(In millions)

Liquidity and 

Contingency 

Operating 

Portfolio

Custodial 

Account Other

Total Other 

Investments 

Portfolio (1)

Liquidity and 

Contingency 

Operating 

Portfolio

Custodial 

Account Other

Total Other 

Investments 

Portfolio (1)

Cash and cash equivalents $5,038 $741 $94 $5,873 $5,652 $611 $97 $6,360 

Securities purchased under 

agreements to resell 100,948 10,881 859 112,688 88,499 9,703 1,084 99,286 

Non-mortgage-related securities 17,531 — 4,738 22,269 20,188 — 3,645 23,833 

Other assets — — 5,644 5,644 — — 4,565 4,565 

Other investments portfolio $123,517 $11,622 $11,335 $146,474 $114,339 $10,314 $9,391 $134,044 

(1) Represents carrying value.

Management's Discussion and Analysis Our Portfolios

Freddie Mac 1Q 2023 Form 10-Q 11
OUR BUSINESS SEGMENTS

As shown in the table below, we have two reportable segments, which are based on the way we manage our business.

Segment Description

Single-Family 

Reflects results from our purchase, securitization, and guarantee of single-family loans, our investments in single-family 

loans and mortgage-related securities, the management of Single-Family mortgage credit risk and market risk, and any 

results of our treasury function that are not allocated to each segment.

Multifamily Reflects results from our purchase, securitization, and guarantee of multifamily loans, our investments in multifamily loans 

and mortgage-related securities, and the management of Multifamily mortgage credit risk and market risk.

Segment Net Revenues and Net Income 

The charts below show our net revenues and net income by segment. 

Segment Net Revenues

(In billions)

$5.8

$5.4

$5.2

$4.8 $4.8

$5.2 $4.9

$4.4 $4.2 $4.2

$0.6

$0.5

$0.8

$0.6 $0.6

Single-Family Multifamily

1Q22 2Q22 3Q22 4Q22 1Q23

Segment Net Income

(In billions)

$3.8

$2.5

$1.3

$1.8

$2.0

$3.4

$2.2

$0.8

$1.5

$1.7

$0.4

$0.3

$0.5

$0.3

$0.3

Single-Family Multifamily

1Q22 2Q22 3Q22 4Q22 1Q23

Management's Discussion and Analysis Our Business Segments

Freddie Mac 1Q 2023 Form 10-Q 12
Single-Family 

Business Results

The charts, tables, and related discussion below present the business results of our Single-Family segment.

New Business Activity

UPB of Single-Family Loan Purchases and Guarantees by Loan 

Purpose and Average Estimated Guarantee Fee Rate(1) on New 

Acquisitions

(UPB in billions)

$207

$138

$121

$75

$59

$93 $86

$98

$63

$51

$114

$52 $23

$12

$8

49

52

54

51

55

Home purchase

Refinance

Average estimated guarantee fee rate

on new acquisitions (bps)

1Q22 2Q22 3Q22 4Q22 1Q23

(1) Estimated guarantee fee rate calculation excludes the legislated guarantee 

fees and includes deferred fees recognized over the estimated life of the 

related loans. 

Number of Families Helped to Own a Home and Average Loan UPB 

of New Acquisitions

(Loan count in thousands)

691

468

392

252

190

279 263

297

200

157

412

205

95

52

33

$300,000

$294,000

$309,000

$297,000

$310,000

Home purchase borrowers

Refinance borrowers

Average loan UPB of new acquisitions

1Q22 2Q22 3Q22 4Q22 1Q23

n	 1Q 2023 vs. 1Q 2022

l Our loan purchase and guarantee activity slowed due to higher mortgage interest rates. We expect volume for the 

remainder of the year to be lower than 2022 due in part to higher mortgage interest rates.

l The average loan size of new acquisitions increased due to a higher conforming loan limit and house price 

appreciation in recent quarters.

l The average estimated guarantee fee rate on new acquisitions increased primarily due to higher contractual guarantee 

fees and faster expected credit fee recognition driven by higher estimated prepayments on new acquisitions. This 

increase was partially offset by a shift in the business mix of new acquisitions.

For additional information on credit fee changes, see the MD&A - Regulation and Supervision section in this Form 10-Q 

and our 2022 Annual Report.

Management's Discussion and Analysis Our Business Segments | Single-Family

Freddie Mac 1Q 2023 Form 10-Q 13
Single-Family Mortgage Portfolio

Single-Family Mortgage Portfolio and Average Estimated 

Guarantee Fee Rate(1) on Mortgage Portfolio 

(UPB in billions)

$2,884 $2,928

$2,971 $2,986 $2,989

47 47

48 48 48

Single-Family mortgage portfolio

Average estimated guarantee fee rate on

mortgage portfolio (bps)

03/31/22 06/30/22 09/30/22 12/31/22 03/31/23

(1) Estimated guarantee fee rate is calculated as of acquisition and excludes 

the legislated guarantee fees. Estimated guarantee fee rate calculation 

also excludes certain loans, the majority of which are held by VIEs that we 

do not consolidate. The UPB of these excluded loans was $43 billion as of 

March 31, 2023.

Single-Family Mortgage Loans 

(Loan count in millions) 

13.4 13.5 13.6 13.6 13.6

$216,000 $217,000

$219,000 $219,000 $219,000

Single-Family mortgage portfolio

Average loan UPB

03/31/22 06/30/22 09/30/22 12/31/22 03/31/23

n	 The Single-Family mortgage portfolio was $3.0 trillion at March 31, 2023, up 4% year-over-year and flat quarter-overquarter, as portfolio growth has moderated in recent periods due to the slowdown in new business activity as both home 

purchase activity and refinance activity slowed due to higher mortgage interest rates.

n	 The average estimated guarantee fee rate on the Single-Family mortgage portfolio increased year-over-year as older 

vintages with lower estimated guarantee fee rates were replaced by acquisitions of new loans with higher estimated 

guarantee fee rates.

Management's Discussion and Analysis Our Business Segments | Single-Family

Freddie Mac 1Q 2023 Form 10-Q 14
CRT Activities

We transfer credit risk on a portion of our Single-Family mortgage portfolio to the private market, reducing the risk of future 

losses to us when borrowers default. The charts below show the issuance amounts associated with CRT transactions for loans 

in our Single-Family mortgage portfolio.

UPB Covered by New CRT Issuance

(In billions)

$208

$151

$136

$58

$15

1Q22 2Q22 3Q22 4Q22 1Q23

New CRT Issuance Maximum Coverage

(In billions)

$8

$7

$5

$1 $1

1Q22 2Q22 3Q22 4Q22 1Q23

n	 1Q 2023 vs. 1Q 2022 

l The UPB of mortgage loans covered by CRT transactions and related maximum coverage issued during 1Q 2023 

decreased compared to 1Q 2022 due to a decrease in loan acquisition activity in recent quarters and changes in 

business strategy and market conditions.

l Our percentage of Single-Family acquisitions targeted for CRT transactions (primarily 30-year fixed rate loans with LTV 

ratios between 60% and 97%) increased to 81% during 1Q 2023, from 67% during 1Q 2022, primarily driven by an 

increase in the percentage of recently acquired loans with original LTV ratios above 60% and an increase in the 

percentage of 30-year loan acquisitions.

See MD&A - Risk Management - Single-Family Mortgage Credit Risk - Transferring Credit Risk to Third-Party 

Investors for additional information on our CRT activities and other credit enhancements.

Management's Discussion and Analysis Our Business Segments | Single-Family

Freddie Mac 1Q 2023 Form 10-Q 15
Loss Mitigation Activities 

The following chart provides details about the single-family loan workout activities that were completed during the periods 

presented. The forbearance data included below is limited to loans in forbearance that are past due based on the loans' original 

contractual terms and excludes both loans for which we do not control servicing and loans included in certain legacy 

transactions, as the forbearance data for such loans is either not reported to us by the servicers or is otherwise not readily 

available to us. 

Completed Loan Workout Activity

(UPB in billions, number of loan workouts in thousands)

49

37

28

22

24

10 8 6 6 7

23

16

12 10

11

16

13

10

6

6

$11

$9

$6

$5 $5

Forbearance and other(1) Payment deferral plans Loan modifications Total UPB

1Q22 2Q22 3Q22 4Q22 1Q23

(1) Other includes repayment plans and foreclosure alternatives.

n Completed loan workout activity includes forbearance plans where borrowers fully reinstated the loan to current status 

during or at the end of the forbearance period, payment deferral plans, loan modifications, successfully completed 

repayment plans, short sales, and deeds in lieu of foreclosure. Completed loan workout activity excludes active loss 

mitigation activity that was ongoing and had not been completed as of the end of the period, such as forbearance plans 

that had been initiated but not completed and trial period modifications. There were approximately 27,000 loans in active 

forbearance plans and approximately 13,000 loans in other active loss mitigation activity as of March 31, 2023.

n 1Q 2023 vs. 1Q 2022 - Our loan workout activity decreased as the overall forbearance population continued to decline.

Management's Discussion and Analysis Our Business Segments | Single-Family

Freddie Mac 1Q 2023 Form 10-Q 16
Financial Results 

The table below presents the results of operations for our Single-Family segment. See Note 11 for additional information about 

segment financial results.

Table 11 - Single-Family Segment Financial Results 

Change

(Dollars in millions) 1Q 2023 1Q 2022 $ %

Net interest income $4,296 $3,806 $490 13 %

Non-interest income (93) 1,408 (1,501) (107) 

Net revenues 4,203 5,214 (1,011) (19) 

(Provision) benefit for credit losses (318) 831 (1,149) (138) 

Non-interest expense (1,783) (1,778) (5) — 

Income before Income tax expense 2,102 4,267 (2,165) (51) 

Income tax expense (425) (856) 431 50 

Net income 1,677 3,411 (1,734) (51) 

Other comprehensive income (loss), net of taxes and 

reclassification adjustments (1) (12) 11 92 

Comprehensive income $1,676 $3,399 ($1,723) (51) %

Key Business Drivers:

n	1Q 2023 vs. 1Q 2022

l Net income of $1.7 billion, down 51% year-over-year.

– Net revenues were $4.2 billion, down 19% year-over-year.

◦ Net interest income was $4.3 billion, up 13% year-over-year, primarily driven by mortgage portfolio 

growth, higher average portfolio guarantee fee rates, and higher investments net interest income due to 

higher interest rates. These increases were partially offset by a decline in deferred fee income due to 

slower prepayments driven by higher mortgage interest rates.

◦ Non-interest income was a loss of $0.1 billion for 1Q 2023, compared to non-interest income of $1.4 

billion for 1Q 2022, which was primarily driven by spread-related gains on commitments to hedge the 

securitization pipeline during that period.

– Provision for credit losses was $0.3 billion for 1Q 2023, driven by a modest credit reserve build primarily 

attributable to new acquisitions. The benefit for credit losses of $0.8 billion for 1Q 2022 was driven by a credit 

reserve release due to higher estimated house prices and an improvement in forecasted economic conditions.

Management's Discussion and Analysis Our Business Segments | Single-Family

Freddie Mac 1Q 2023 Form 10-Q 17
Multifamily 

Business Results

The charts, tables, and related discussion below present the business results of our Multifamily segment.

New Business Activity

New Business Activity 

 (In billions) 

$15 $15

$14

$29

$6

1Q22 2Q22 3Q22 4Q22 1Q23

 Total Number of Rental Units Financed(1)

 (In thousands)

143

148 150

252

60

1Q22 2Q22 3Q22 4Q22 1Q23

 (1) Includes rental units financed by supplemental loans.

n	 As of March 31, 2023, the multifamily new business activity subject to the FHFA 2023 loan purchase cap of $75 billion was 

$5.7 billion. Approximately 60% of this activity, based on UPB, was mission-driven, affordable housing, currently 

exceeding FHFA's minimum requirement of 50%.

n	 Our new business activity was lower year-over-year as higher mortgage interest rates and greater market uncertainty have 

reduced demand for multifamily mortgage financing. 

n	 Our index lock agreements and outstanding commitments to purchase or guarantee multifamily assets were $19.2 billion

and $19.9 billion as of March 31, 2023 and March 31, 2022, respectively.

Management's Discussion and Analysis Our Business Segments | Multifamily

Freddie Mac 1Q 2023 Form 10-Q 18
Multifamily Mortgage Portfolio and Guarantee Portfolio

 Mortgage Portfolio

 (UPB in billions) $415 $415 $416

$429 $426

3/31/22 6/30/22 09/30/22 12/31/22 3/31/23

 

 Guarantee Portfolio

 (In billions) $352

$356 $357 $360

$362

43 43 43 43

44

UPB of guarantee portfolio

Average guarantee fee rate charged (bps)

3/31/22 6/30/22 09/30/22 12/31/22 3/31/23

n	 Our Multifamily mortgage portfolio was $426 billion at March 31, 2023, up 3% year-over-year and down 1% quarter-overquarter, primarily due to the slowdown in new business activity as higher mortgage interest rates and greater market 

uncertainty have reduced demand for multifamily mortgage financing. Our guarantee portfolio was $362 billion at March 

31, 2023, up 3% year-over-year as our securitization activities outpaced payoffs.

n	 In addition to our Multifamily mortgage portfolio, we have investments in LIHTC fund partnerships with carrying values 

totaling $2.9 billion and $2.8 billion as of March 31, 2023 and December 31, 2022, respectively. 

Management's Discussion and Analysis Our Business Segments | Multifamily

Freddie Mac 1Q 2023 Form 10-Q 19
CRT Activities

 UPB Covered by New CRT Issuance New CRT Issuance Maximum Coverage 

 (In billions) (In billions)

$14

$21

$11

$16

$8

1Q22 2Q22 3Q22 4Q22 1Q23

 $1.0

$1.3

$0.8

$1.0

$0.6

1Q22 2Q22 3Q22 4Q22 1Q23

n	 1Q 2023 vs. 1Q 2022 

l The UPB of mortgage loans covered by new CRT transactions and the maximum coverage decreased year-over-year, 

primarily due to fewer securitizations with subordination as a result of a smaller average held-for-sale securitization 

pipeline.

See MD&A - Risk Management - Multifamily Mortgage Credit Risk - Transferring Credit Risk to Third-Party 

Investors for more information on risk transfer transactions and credit enhancements on our Multifamily mortgage portfolio.

Management's Discussion and Analysis Our Business Segments | Multifamily

Freddie Mac 1Q 2023 Form 10-Q 20
Financial Results 

The table below presents the results of operations for our Multifamily segment. See Note 11 for additional information about 

segment financial results.

Table 12 - Multifamily Segment Financial Results 

Change

(Dollars in millions) 1Q 2023 1Q 2022 $ %

Net interest income $205 $298 ($93) (31) %

Non-interest income 419 334 85 25 

Net revenues 624 632 (8) (1) 

(Provision) benefit for credit losses (77) 6 (83) (1,383) 

Non-interest expense (149) (154) 5 3 

Income before income tax expense 398 484 (86) (18) 

Income tax expense (80) (97) 17 18 

Net income 318 387 (69) (18) 

Other comprehensive income (loss), net of taxes and 

reclassification adjustments 55 (108) 163 151 

Comprehensive income $373 $279 $94 34 %

Key Business Drivers: 

n	 1Q 2023 vs. 1Q 2022

l Net income of $0.3 billion, down 18% year-over-year.

– Net revenues were $0.6 billion, down 1% year-over-year. 

– Net interest income was $0.2 billion, down 31% year-over-year, primarily due to lower prepayment 

income driven by higher mortgage interest rates.

– Non-interest income was $0.4 billion, up 25% year-over-year, primarily driven by higher guarantee 

income, partially offset by lower net investment gains. Guarantee income increased as 1Q 2022 included 

fair value losses on guarantee assets due to rising interest rates. Net investment gains declined due to 

lower revenue from held-for-sale loan purchase and securitization activity as a result of lower volumes 

and lower margins, coupled with net losses from interest-rate risk management activities.

– Provision for credit losses was $0.1 billion for 1Q 2023, compared to a small benefit for credit losses for 1Q 2022, 

primarily due to a credit reserve build to reflect increased uncertainty in forecasted economic conditions.

Management's Discussion and Analysis Our Business Segments | Multifamily

Freddie Mac 1Q 2023 Form 10-Q 21
RISK MANAGEMENT

To achieve our mission, we take risks as an integral part of our business activities. We are exposed to the following key types of 

risk: credit risk, market risk, liquidity risk, operational risk, compliance risk, legal risk, strategic risk, and reputation risk.

Credit Risk

Allowance for Credit Losses

The tables below present a summary of the changes in our allowance for credit losses and key allowance for credit losses 

ratios.

Table 13 - Allowance for Credit Losses Activity

1Q 2023 1Q 2022

(Dollars in millions) Single-Family Multifamily Total Single-Family Multifamily Total

Allowance for credit losses:

Beginning balance $7,746 $147 $7,893 $5,440 $78 $5,518 

Provision (benefit) for credit losses 318 77 395 (831) (6) (837) 

 Charge-offs (90) — (90) (173) — (173) 

 Recoveries collected 32 — 32 52 — 52 

Net charge-offs (58) — (58) (121) — (121) 

Other(1) 91 — 91 361 — 361 

Ending balance $8,097 $224 $8,321 $4,849 $72 $4,921 

Average loans outstanding during the period(2) $2,985,726 $47,748 $3,033,474 $2,868,454 $28,079 $2,896,533

Net charge-offs to average loans outstanding 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % 0.00 %

Components of ending balance of allowance for credit losses:

Mortgage loans held-for-investment $7,675 $160 $7,835 $4,358 $31 $4,389 

Other(3) 422 64 486 491 41 532 

Total ending balance $8,097 $224 $8,321 $4,849 $72 $4,921 

(1) Primarily includes capitalization of past due interest related to non-accrual loans that received payment deferral plans and loan modifications.

(2) Based on amortized cost basis of held-for-investment loans for which we have not elected the fair value option.

(3) Includes allowance for credit losses related to advances of pre-foreclosure costs, accrued interest receivable, and off-balance sheet credit exposures. 

Table 14 - Allowance for Credit Losses Ratios

March 31, 2023 December 31, 2022

(Dollars in millions) Single-Family Multifamily Total Single-Family Multifamily Total

Allowance for credit losses ratios:

Allowance for credit losses(1) to total loans outstanding 0.26 % 0.35 % 0.26 % 0.25 % 0.16 % 0.24 %

Non-accrual loans to total loans outstanding 0.34 0.09 0.34 0.34 0.09 0.33 

Allowance for credit losses to non-accrual loans 75.88 390.24 77.15 72.45 183.33 72.91 

Balances:

Allowance for credit losses on mortgage loans held-forinvestment $7,675 $160 $7,835 $7,314 $77 $7,391 

Total loans outstanding(2) 2,984,782 46,064 3,030,846 2,981,401 47,094 3,028,495 

Non-accrual loans(2) 10,114 41 10,155 10,095 42 10,137 

(1) Represents allowance for credit losses on total held-for-investment loans.

(2) Based on amortized cost basis of held-for-investment loans for which we have not elected the fair value option. 

As of March 31, 2023 compared to December 31, 2022: 

n	 The ratio of allowance for credit losses to non-accrual loans increased due to a modest credit reserve build primarily 

attributable to new acquisitions in Single-Family.

Management's Discussion and Analysis Risk Management

Freddie Mac 1Q 2023 Form 10-Q 22
Single-Family Mortgage Credit Risk

Maintaining Prudent Underwriting Standards and Quality Control Practices and 

Managing Seller/Servicer Performance 

Loan Purchase Credit Characteristics

We monitor and evaluate market conditions that could affect the credit quality of our single-family loan purchases. Additionally, 

when managing our new acquisitions, we consider our risk limits and guidance from FHFA and capital requirements under the 

ERCF. This may affect the volume and characteristics of our loan acquisitions.

The charts below show the credit profile of the single-family loans we purchased or guaranteed. The average original LTV 

increased year-over-year due to the increase in the percentage of loan acquisitions related to home purchases as home 

purchase loans typically have higher LTV ratios than refinance loans. The percentage of loans with a DTI ratio greater than 45% 

also increased year-over-year due to changes in market conditions, such as increasing house prices and higher mortgage 

interest rates in recent quarters.

Weighted Average Original LTV Ratio 

72%

75%

78% 78% 79%

1Q22 2Q22 3Q22 4Q22 1Q23

Weighted Average Original Credit Score(1)

746 744

747 747

749

1Q22 2Q22 3Q22 4Q22 1Q23

(1) Weighted average original credit score is generally based on three credit 

bureaus (Equifax, Experian, and TransUnion).

Management's Discussion and Analysis Risk Management

Freddie Mac 1Q 2023 Form 10-Q 23
The table below contains additional information about the single-family loans we purchased or guaranteed.

Table 15 - Single-Family New Business Activity 

1Q 2023 1Q 2022

(Dollars in millions) Amount % of Total Amount % of Total

20- and 30-year or more, amortizing fixed-rate $55,469 94 % $181,977 88 %

15-year or less, amortizing fixed-rate 2,214 4 23,484 11 

Adjustable-rate 1,282 2 1,627 1 

Total $58,965 100 % $207,088 100 %

Percentage of purchases

DTI ratio > 45% 23 % 15 %

Original LTV ratio > 90% 28 14 

Transaction type:

Cash window 28 25 

Guarantor swap 72 75 

Property type:

Detached single-family houses and townhouses 91 93 

Condominium or co-op 9 7 

Occupancy type:

Primary residence 92 89 

Second home 2 5 

Investment property 6 6 

Loan purpose:

Purchase 86 45 

Cash-out refinance 9 33 

 Other refinance 5 22 

Transferring Credit Risk to Third-Party Investors 

To reduce our credit risk exposure, we engage in various credit enhancement arrangements, which include CRT transactions 

and other credit enhancements.

Single-Family Mortgage Portfolio CRT Issuance

The table below provides the UPB of the mortgage loans covered by CRT transactions issued during the periods presented as 

well as the maximum coverage provided by those transactions.

Table 16 - Single-Family Mortgage Portfolio CRT Issuance

1Q 2023 1Q 2022

(In millions) UPB(1)

Maximum 

Coverage(2) UPB(1)

Maximum 

Coverage(2)

STACR $14,887 $611 $123,562 $5,088 

ACIS — — 83,991 3,226 

Other 46 46 146 146 

Total CRT issuance $14,933 $657 $207,699 $8,460 

(1) Represents the UPB of the assets included in the associated reference pool or securitization trust, as applicable.

(2) For STACR transactions, represents the balance held by third parties at issuance. For ACIS transactions, represents the aggregate limit of insurance purchased from 

third parties at issuance.

Management's Discussion and Analysis Risk Management

Freddie Mac 1Q 2023 Form 10-Q 24
Single-Family Mortgage Portfolio Credit Enhancement Coverage Outstanding

The table below provides information on the UPB and maximum coverage associated with credit-enhanced loans in our SingleFamily mortgage portfolio.

Table 17 - Single-Family Mortgage Portfolio Credit Enhancement Coverage Outstanding 

March 31, 2023

(Dollars in millions) UPB(1) % of Portfolio Maximum Coverage(2)

Primary mortgage insurance(3) $613,366 21% $156,920 

STACR 1,184,605 40 34,150 

ACIS 901,506 30 19,260 

Other 40,958 1 11,057 

Less: UPB with multiple credit enhancements and other reconciling items(4) (900,339) (30) — 

Single-Family mortgage portfolio - credit-enhanced 1,840,096 62 221,387 

Single-Family mortgage portfolio - non-credit-enhanced 1,148,539 38 N/A

Total $2,988,635 100% $221,387 

December 31, 2022

(Dollars in millions) UPB(1) % of Portfolio Maximum Coverage(2)

Primary mortgage insurance(3) $609,123 21% $155,022 

STACR 1,188,017 40 35,111 

ACIS 938,409 31 19,774 

Other 41,572 1 11,105 

Less: UPB with multiple credit enhancements and other reconciling items(4) (945,062) (32) — 

Single-Family mortgage portfolio - credit-enhanced 1,832,059 61 221,012 

Single-Family mortgage portfolio - non-credit-enhanced 1,153,986 39 N/A

Total $2,986,045 100% $221,012 

(1) Represents the current UPB of the assets included in the associated reference pool or securitization trust, as applicable. 

(2) For STACR transactions, represents the outstanding balance held by third parties. For ACIS transactions, represents the remaining aggregate limit of insurance 

purchased from third parties. 

(3) Amounts exclude certain loans for which we do not control servicing, as the coverage information for these loans is not readily available to us.

(4) Other reconciling items primarily include timing differences in reporting cycles between the UPB of certain CRT transactions and the UPB of the underlying loans. 

Credit Enhancement Coverage Characteristics

The table below provides the serious delinquency rates for the credit-enhanced and non-credit-enhanced loans in our SingleFamily mortgage portfolio. The credit-enhanced categories are not mutually exclusive as a single loan may be covered by both 

primary mortgage insurance and other credit enhancements.

Table 18 - Serious Delinquency Rates for Credit-Enhanced and Non-Credit-Enhanced Loans in Our Single-Family 

Mortgage Portfolio

March 31, 2023 December 31, 2022

(% of portfolio based on UPB)(1) % of Portfolio(2) SDQ Rate % of Portfolio(2) SDQ Rate

Credit-enhanced:

 Primary mortgage insurance 21 % 0.99 % 21 % 1.05 %

 CRT and other 56 0.64 56 0.68 

Non-credit-enhanced 38 0.52 39 0.57 

Total N/A 0.62 N/A 0.66 

(1) Excludes loans underlying certain securitization products for which loan-level data is not available.

(2) Percentages do not total to 100% as a single loan may be included in multiple line items.

Credit Enhancement Recoveries 

Our expected recovery receivable from freestanding credit enhancements, net of allowance, was $0.4 billion for both March 31, 

2023 and December 31, 2022.

Management's Discussion and Analysis Risk Management

Freddie Mac 1Q 2023 Form 10-Q 25
Monitoring Loan Performance and Characteristics 

We review loan performance, including delinquency statistics and related loan characteristics, in conjunction with housing 

market and economic conditions, to assess credit risk when estimating our allowance for credit losses. We also use this 

information to determine if our pricing and eligibility standards reflect the risk associated with the loans we purchase and 

guarantee.

Loan Characteristics 

The table below contains details of the characteristics of the loans in our Single-Family mortgage portfolio. 

Table 19 - Credit Quality Characteristics of Our Single-Family Mortgage Portfolio 

March 31, 2023

(Dollars in millions) UPB

Original Credit

Score (1)

Current Credit

Score(1)(2)

Original

LTV Ratio

Current

LTV

Ratio

Single-Family mortgage portfolio year of origination:

 2023 $34,412 749 748 80 % 80 %

 2022 455,538 745 742 76 74 

 2021 1,038,828 752 756 71 59 

 2020 763,137 761 766 71 51 

 2019 128,761 746 751 76 50 

 2018 and prior 567,959 737 749 75 35 

Total $2,988,635 750 755 73 55 

December 31, 2022

(Dollars in millions) UPB

Original Credit

Score (1)

Current Credit

Score(1)(2)

Original

LTV Ratio

Current

LTV

Ratio

Single-Family mortgage portfolio year of origination:

 2022 $438,339 745 742 76 % 74 %

 2021 1,054,844 752 758 71 59 

 2020 776,425 761 766 71 51 

 2019 131,637 746 752 76 50 

 2018 52,921 736 736 76 47 

 2017 and prior 531,879 737 752 75 34 

Total $ 2,986,045 750 756 73 54 

(1) Original credit score is generally based on three credit bureaus (Equifax, Experian, and TransUnion). Current credit score is based on Experian only.

(2) Credit scores for certain recently acquired loans may not have been updated by the credit bureau since the loan acquisition, and therefore the original credit scores 

also represent the current credit scores.

The following table presents the combination of credit score and CLTV ratio attributes of loans in our Single-Family mortgage 

portfolio.

Table 20 - Single-Family Mortgage Portfolio Attribute Combinations(1)

March 31, 2023

CLTV ≤ 60 CLTV > 60 to 80 CLTV > 80 to 90 CLTV > 90 to 100 CLTV > 100 All Loans

Original credit 

score

% of 

Portfolio SDQ Rate

% of 

Portfolio SDQ Rate(2)

% of 

Portfolio SDQ Rate(2)

% of 

Portfolio SDQ Rate(2)

% of 

Portfolio SDQ Rate(2)

% of 

Portfolio SDQ Rate

740 and above 6

2

 41 % 0.19 % 18 % 0.24 % 4 % 0.25 % 2 % 0.22 % — % NM 65 % 0.21 %

700 to 739 11 0.63 7 0.73 2 0.77 1 0.51 — NM 21 0.66 

680 to 699 4 1.05 3 1.28 — NM — NM — NM 7 1.12 

660 to 679 2 1.49 1 1.81 — NM — NM — NM 3 1.57 

620 to 659 2 2.24 1 2.87 — NM — NM — NM 3 2.39 

Less than 620 1 5.40 — NM — NM — NM — NM 1 5.92 

Total 61 % 0.59 30 % 0.66 6 % 0.65 3 % 0.46 — % NM 100 % 0.62 

Referenced footnotes are included after the prior period table

Management's Discussion and Analysis Risk Management

Freddie Mac 1Q 2023 Form 10-Q 26
December 31, 2022

CLTV ≤ 60 CLTV > 60 to 80 CLTV > 80 to 90 CLTV > 90 to 100 CLTV > 100 All Loans

Original credit 

score

% of 

Portfolio SDQ Rate

% of 

Portfolio SDQ Rate(2)

% of 

Portfolio SDQ Rate(2)

% of 

Portfolio SDQ Rate(2)

% of 

Portfolio SDQ Rate(2)

% of 

Portfolio SDQ Rate

740 and above 40 % 0.22 % 18 % 0.25 % 4 % 0.23 % 2 % 0.16 % — % NM 64 % 0.23 %

700 to 739 12 0.70 6 0.75 2 0.72 1 0.38 — NM 21 0.71 

680 to 699 5 1.16 2 1.28 — NM — NM — NM 7 1.18 

660 to 679 3 1.65 1 1.77 — NM — NM — NM 4 1.68 

620 to 659 2 2.46 1 2.78 — NM — NM — NM 3 2.54 

Less than 620 1 5.97 — NM — NM — NM — NM 1 6.52 

Total 63 % 0.66 28 % 0.67 6 % 0.60 3 % 0.37 — % NM 100 % 0.66

(1) Excludes loans underlying certain securitization products for which original credit score is not available.

(2) NM - not meaningful due to the percentage of the portfolio rounding to zero.

Geographic Concentrations

We purchase mortgage loans from across the U.S. However, local economic conditions can affect the borrower's ability to 

repay and the value of the underlying collateral, leading to concentrations of credit risk in certain geographic areas. In addition, 

certain states and municipalities have passed or may pass laws that limit our ability to foreclose or evict and make it more 

difficult and costly to manage our risk.

See Note 12 for more information about the geographic distribution of our Single-Family mortgage portfolio.

Delinquency Rates 

We report Single-Family delinquency rates based on the number of loans in our Single-Family mortgage portfolio that are past 

due as reported to us by our servicers as a percentage of the total number of loans in our Single-Family mortgage portfolio. 

The chart below shows the delinquency rates of mortgage loans in our Single-Family mortgage portfolio.

Single-Family Delinquency Rates

0.73%

0.81% 0.79%

0.94%

0.76%

0.20% 0.19% 0.20%

0.24%

0.20%

0.92%

0.76%

0.67% 0.66%

0.62%

One month past due Two months past due Seriously delinquent

1Q22 2Q22 3Q22 4Q22 1Q23

Our Single-Family serious delinquency rate decreased to 0.62% as of March 31, 2023, compared to 0.92% as of March 31, 

2022, as borrowers completed loan workout activities that returned the mortgages to current status primarily for borrowers 

exiting forbearance. See Note 3 for additional information on the payment status of our single-family mortgage loans.

Management's Discussion and Analysis Risk Management

Freddie Mac 1Q 2023 Form 10-Q 27
Multifamily Mortgage Credit Risk

Maintaining Policies and Procedures for New Business Activity, Including Prudent 

Underwriting Standards

Our underwriting standards focus on the LTV ratio and DSCR, which estimates a borrower's ability to repay the loan using the 

secured property's cash flows, after expenses. The charts below provide the weighted average original LTV and DSCR for our 

new business activity for the periods presented. 

Weighted Average Original LTV Ratio 

67%

63%

59% 58% 57%

1Q22 2Q22 3Q22 4Q22 1Q23

 Weighted Average Original DSCR

1.33 1.33 1.31

1.25 1.27

1Q22 2Q22 3Q22 4Q22 1Q23

Transferring Credit Risk to Third-Party Investors 

To reduce our credit risk exposure, we engage in a variety of CRT activities; however, securitizations remain our principal credit 

risk transfer mechanism. Through securitizations (i.e., subordination), we have transferred a substantial amount of the expected 

and stressed credit risk on the Multifamily mortgage portfolio, thereby reducing our overall credit risk exposure and required 

capital.

Multifamily Mortgage Portfolio CRT Issuance

The table below provides the UPB of the mortgage loans covered by CRT transactions issued during the periods presented as 

well as the maximum coverage provided by those transactions.

Table 21 - Multifamily Mortgage Portfolio CRT Issuance

1Q 2023 1Q 2022

(In millions) UPB(1) Maximum Coverage(2) UPB(1) Maximum Coverage(2)

Subordination $6,149 $425 $14,105 $974 

SCR 1,166 105 — — 

Lender risk-sharing 239 48 — — 

Total CRT issuance $7,554 $578 $14,105 $974 

(1) Represents the UPB of the assets included in the associated reference pool or securitization trust, as applicable.

(2) For subordination, represents the UPB of the securities that are held by third parties at issuance and are subordinate to the securities we guarantee. For SCR 

transactions, represents the UPB of securities held by third parties at issuance. For lender risk-sharing, represents the amount of loss recovery that is available 

subject to the terms of counterparty agreements at issuance.

Multifamily Mortgage Portfolio Credit Enhancement Coverage Outstanding

While we obtain various forms of credit protection in connection with the acquisition, guarantee, and/or securitization of a loan 

or group of loans, our principal credit enhancement type is subordination, which is created through our senior subordinate 

securitization transactions. As of March 31, 2023 and December 31, 2022, our maximum coverage provided by subordination in 

nonconsolidated VIEs was $41.1 billion and $41.7 billion, respectively. 

Management's Discussion and Analysis Risk Management

Freddie Mac 1Q 2023 Form 10-Q 28
The table below presents the UPB and delinquency rates for both credit-enhanced and non-credit-enhanced loans underlying 

our Multifamily mortgage portfolio.

Table 22 - Credit-Enhanced and Non-Credit-Enhanced Loans Underlying Our Multifamily Mortgage Portfolio

March 31, 2023 December 31, 2022

(Dollars in millions) UPB Delinquency Rate UPB Delinquency Rate

Credit-enhanced:

Subordination $355,747 0.14 % $358,813 0.12 %

Other 40,011 0.15 38,870 0.12 

Total credit-enhanced 395,758 0.14 397,683 0.12 

Non-credit-enhanced 30,281 0.09 31,619 0.08 

Total $426,039 0.13 $429,302 0.12 

The table below contains details on the loans underlying our Multifamily mortgage portfolio that are not credit-enhanced.

Table 23 - Credit Quality of Our Multifamily Mortgage Portfolio Without Credit Enhancement

March 31, 2023 December 31, 2022

(Dollars in millions) UPB Delinquency Rate UPB Delinquency Rate

Mortgage loans held-for-sale $9,609 0.27 % $9,138 0.29 %

Mortgage loans held-for-investment:

 Held by Freddie Mac 10,453 — 15,468 — 

 Held by consolidated trusts 7,881 0.02 4,665 — 

Other mortgage-related guarantees 2,338 — 2,348 — 

Total $30,281 0.09 $31,619 0.08 

Market Risk

Overview

Our business segments have embedded exposure to market risk, which is the economic risk associated with adverse changes 

in interest rates, volatility, and spreads. Market risk can adversely affect future cash flows, or economic value, as well as 

earnings and net worth. The primary sources of interest-rate risk are our investments in mortgage-related assets, the debt we 

issue to fund these assets, and our Single-Family guarantees. 

Interest-Rate Risk

Our primary interest-rate risk measures are duration gap and Portfolio Value Sensitivity (PVS). 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. PVS is an estimate of the change in the present value of the cash flows 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 is measured in two ways, one measuring the estimated sensitivity of our portfolio value to a 50 basis point 

parallel movement in interest rates (PVS-L) and the other to a non-parallel movement resulting from a 25 basis point change in 

the slope of the yield curve (PVS-YC). While we believe that duration gap and PVS are useful risk management tools, they 

should be understood as estimates rather than as precise measurements.

The following tables provide our duration gap, estimated point-in-time and minimum and maximum PVS-L and PVS-YC results, 

and an average of the daily values and standard deviation. The table below also provides PVS-L estimates assuming an 

immediate 100 basis point shift in the yield curve. The interest-rate sensitivity of a mortgage portfolio varies across a wide 

range of interest rates.

Management's Discussion and Analysis Risk Management

Freddie Mac 1Q 2023 Form 10-Q 29
Table 24 - PVS-YC and PVS-L Results Assuming Shifts of the Yield Curve

March 31, 2023 December 31, 2022

PVS-YC PVS-L PVS-YC PVS-L

(In millions) 25 bps 50 bps 100 bps 25 bps 50 bps 100 bps

Assuming shifts of the yield curve, (gains) 

losses on:(1)

Assets:

Investments $420 $3,410 $6,736 $362 ($3,131) ($6,340) 

Guarantees(2) (92) (462) (863) (93) 512 1,090 

Total assets 328 2,948 5,873 269 (2,619) (5,250) 

Liabilities 69 (1,832) (3,690) 68 1,958 3,912 

Derivatives (395) (1,106) (2,160) (336) 648 1,278 

Total $2 $10 $23 $1 ($13) ($60) 

PVS $2 $10 $23 $1 $— $— 

(1) The categorization of the PVS impact between assets, liabilities, and derivatives on this table is based upon the economic characteristics of those assets and 

liabilities, not their accounting classification. For example, purchase and sale commitments of mortgage-related securities and debt of consolidated trusts held by 

the mortgage-related investments portfolio are both categorized as assets on this table.

(2) Represents the interest-rate risk from our guarantees, which include buy-ups, float, and upfront fees (including buy-downs). 

Table 25 - Duration Gap and PVS Results

1Q 2023 1Q 2022

(Duration gap in months, dollars in millions)

Duration

Gap

PVS-YC

25 bps

PVS-L

50 bps

Duration

Gap

PVS-YC

25 bps

PVS-L

50 bps

Average — $3 $3 — $8 $11 

Minimum (0.2) — — (0.3) — — 

Maximum 0.2 9 24 0.4 16 77 

Standard deviation 0.1 2 6 0.2 4 19 

Derivatives enable us to reduce our economic interest-rate risk exposure as we continue to align our derivative portfolio with 

the changing duration of our economically hedged assets and liabilities. The table below shows that the PVS-L risk levels, 

assuming a 50 basis point shift in the yield curve for the periods presented, would have been higher if we had not used 

derivatives.

Table 26 - PVS-L Results Before Derivatives and After Derivatives

PVS-L (50 bps)

(In millions)

Before

Derivatives

After

Derivatives

Effect of

Derivatives

March 31, 2023 $1,116 $10 ($1,106) 

December 31, 2022(1) 645 — (645) 

(1) Before derivatives, our adverse PVS-L rate movement was -50 whereas after derivatives our adverse PVS-L rate movement was +50 bps.

Earnings Sensitivity to Market Risk

The accounting treatment for our financial assets and liabilities (i.e., some are measured at amortized cost, while others are 

measured at fair value) creates variability in our GAAP earnings when interest rates and spreads change. We manage this 

variability of GAAP earnings, which may not reflect the economics of our business, using fair value hedge accounting. See 

MD&A - Consolidated Results of Operations and MD&A - Our Business Segments for additional information on the 

effect of changes in interest rates and market spreads on our financial results.

Management's Discussion and Analysis Risk Management

Freddie Mac 1Q 2023 Form 10-Q 30
Interest Rate-Related Earnings Sensitivity

While we manage our interest-rate risk exposure on an economic basis to a low level as measured by our models, changes in 

interest rates may still result in significant earnings variability from period to period.

By electing fair value hedge accounting for certain single-family mortgage loans and certain debt instruments, we are able to 

reduce the potential variability in our earnings attributable to changes in interest rates. See Note 8 for additional information on 

hedge accounting.

Earnings Sensitivity to Changes in Interest Rates

We evaluate a range of interest rate scenarios to determine the sensitivity of our earnings due to changes in interest rates and 

to determine our fair value hedge accounting strategies. The interest rate scenarios evaluated include parallel shifts in the yield 

curve in which interest rates increase or decrease by 100 basis points, non-parallel shifts in the yield curve in which long-term 

interest rates increase or decrease by 100 basis points, and non-parallel shifts in the yield curve in which short-term and 

medium-term interest rates increase or decrease by 100 basis points. This evaluation identifies the net effect on comprehensive 

income from changes in fair value attributable to changes in interest rates for financial instruments measured at fair value 

recognized on our condensed consolidated balance sheets at period end, including the effects of fair value hedge accounting, 

for each of the identified scenarios. This evaluation does not include the net effect on comprehensive income from interest-rate 

sensitive items that are not measured at fair value (e.g., amortization of mortgage loan premiums and discounts, changes in fair 

value of held-for-sale mortgage loans for which we have not elected the fair value option), from changes in our future 

contractual net interest income due to repricing of our interest-bearing assets and liabilities, or from future new business 

activities. The before-tax results of this evaluation are shown in the table below.

Table 27 - Earnings Sensitivity to Changes in Interest Rates

(In millions) March 31, 2023 March 31, 2022

Interest Rate Scenarios(1)

Parallel yield curve shifts: 

 +100 basis points $25 ($44) 

 -100 basis points (25) 44 

Non-parallel yield curve shifts - long-term interest rates:

 +100 basis points 118 181 

 -100 basis points (118) (181) 

Non-parallel yield curve shifts - short-term and medium-term interest rates:

 +100 basis points (92) (224) 

 -100 basis points 92 224 

(1) The earnings sensitivity presented is calculated using the change in interest rates and net effective duration exposure.

The actual effect of changes in interest rates on our comprehensive income in any given period may vary based on a number of 

factors, including, but not limited to, the composition of our assets and liabilities, the actual changes in interest rates that are 

realized at different terms along the yield curve, and the effectiveness of our hedge accounting strategies. Even if implemented 

properly, our hedge accounting programs may not be effective in reducing earnings volatility, and our hedges may fail in any 

given future period, which could expose us to significant earnings variability in that period.

Management's Discussion and Analysis Risk Management

Freddie Mac 1Q 2023 Form 10-Q 31
LIQUIDITY AND CAPITAL RESOURCES

Our business activities require that we maintain adequate liquidity to meet our financial obligations as they come due and to 

meet the needs of customers in a timely and cost-efficient manner. We also must maintain adequate capital resources to avoid 

being placed into receivership by FHFA.

Liquidity

Primary Sources of Liquidity 

The following table lists the sources of our liquidity, the balances as of the dates shown, and a brief description of their 

importance to Freddie Mac.

Table 28 - Liquidity Sources

(In millions) March 31, 2023(1) December 31, 2022(1) Description

Other Investments Portfolio - 

Liquidity and Contingency 

Operating Portfolio

 $123,517 $114,339 The liquidity and contingency operating portfolio, included within 

our other investments portfolio, is primarily used for short-term 

liquidity management.

Mortgage Loans and MortgageRelated Securities  25,580 25,853 The liquid portion of our mortgage-related investments portfolio 

can be pledged or sold for liquidity purposes. The amount of 

cash we may be able to successfully raise may be substantially 

less than the balance.

(1) Represents carrying value for the liquidity and contingency operating portfolio, included within our other investments portfolio, and UPB for the liquid portion of the 

mortgage-related investments portfolio.

Other Investments Portfolio

Our other investments portfolio is important to our cash flow, collateral management, asset and liability management, and 

ability to provide liquidity and stability to the mortgage market. 

Our liquidity and contingency operating portfolio primarily includes securities purchased under agreements to resell and nonmortgage-related securities. Our non-mortgage-related securities consist of U.S. Treasury securities and other investments that 

we could sell to provide us with an additional source of liquidity to fund our business operations. We also maintain non-interestbearing deposits at the Federal Reserve Bank of New York and interest-bearing deposits at commercial banks. Our interestbearing deposits at commercial banks totaled $4.8 billion and $5.0 billion as of March 31, 2023 and December 31, 2022, 

respectively. See MD&A - Our Portfolios - Investments Portfolio - Other Investments Portfolio for more information 

about our other investments portfolio.

Mortgage Loans and Mortgage-Related Securities 

We invest principally in mortgage loans and mortgage-related securities, certain categories of which are largely unencumbered 

and liquid. Our primary source of liquidity among these mortgage assets is our holdings of agency securities. See MD&A - Our 

Portfolios - Investments Portfolio - Mortgage-Related Investments Portfolio for more information about our 

mortgage loans and mortgage-related securities.

Management's Discussion and Analysis Liquidity and Capital Resources 

Freddie Mac 1Q 2023 Form 10-Q 32
Primary Sources of Funding 

The following table lists the sources of our funding, the balances as of the dates shown, and a brief description of their 

importance to Freddie Mac.

Table 29 - Funding Sources

(In millions) March 31, 2023(1) December 31, 2022(1) Description

Debt of Freddie Mac $180,464 $166,762 Debt of Freddie Mac is used to fund our business activities.

Debt of

Consolidated Trusts

 2,987,050 2,979,070 Debt of consolidated trusts is used primarily to fund our SingleFamily guarantee activities. This type of debt is principally repaid by 

the cash flows of the associated mortgage loans. As a result, our 

repayment obligation is limited to amounts paid pursuant to our 

guarantee of principal and interest and to purchase modified or 

seriously delinquent loans from the trusts.

(1) Represents the carrying value of debt balances after consideration of offsetting arrangements.

Debt of Freddie Mac

We issue debt of Freddie Mac to fund our operations. Competition for funding can vary with economic, financial market, and 

regulatory environments. The amount, type, and term of debt issued is based on a variety of factors and is designed to meet 

our ongoing cash needs and to comply with our Liquidity Management Framework.

The table below summarizes the par value and the average rate of debt of Freddie Mac we issued or paid off, including 

regularly scheduled principal payments, payments resulting from calls, and payments for repurchases. We call, exchange, or 

repurchase our outstanding debt from time to time for a variety of reasons, including managing our funding composition and 

supporting the liquidity of our debt securities.

Table 30 - Debt of Freddie Mac Activity

1Q 2023 1Q 2022

(Dollars in millions) Par Value Average Rate(1) Par Value Average Rate(1)

Short-term:

Beginning balance $7,716 3.49 % $— — %

Issuances 50,739 4.18 5,553 0.15 

Repayments — — — — 

Maturities (49,739) 4.04 (2,253) 0.01 

Ending balance 8,716 4.36 3,300 0.25 

Securities sold under agreements to repurchase 4,652 4.58 11,260 0.01 

Offsetting arrangements (4,652) — (11,260) — 

Securities sold under agreements to repurchase, net — — — — 

Total short-term debt 8,716 4.36 3,300 0.25 

Long-term:

Beginning balance 170,363 2.22 181,613 1.11 

Issuances 14,192 5.33 1,810 2.21 

Repayments (2,491) 5.93 (1,834) 2.98 

Maturities (680) 1.50 (16,713) 0.12 

Total long-term debt 181,384 2.51 164,876 1.21 

Total debt of Freddie Mac, net $190,100 2.60 % $168,176 1.19 %

(1) Average rate is weighted based on par value.

Total debt issuance increased year-over-year primarily to fund upcoming debt maturities and anticipated calls of outstanding 

debt. As of March 31, 2023, our aggregate indebtedness pursuant to the Purchase Agreement was $190.1 billion, which was 

below the current $270.0 billion debt cap limit. Our aggregate indebtedness calculation primarily includes the par value of 

short- and long-term debt.

Management's Discussion and Analysis Liquidity and Capital Resources

Freddie Mac 1Q 2023 Form 10-Q 33
Maturity and Redemption Dates

The following table presents the par value of debt of Freddie Mac by contractual maturity date and earliest redemption date. 

The earliest redemption date refers to the earliest call date for callable debt and the contractual maturity date for all other debt 

of Freddie Mac.

Table 31 - Maturity and Redemption Dates

As of March 31, 2023 As of December 31, 2022

(In millions) Contractual Maturity Date Earliest Redemption Date Contractual Maturity Date Earliest Redemption Date

Debt of Freddie Mac(1):

1 year or less $56,692 $161,845 $60,534 $156,515 

1 year through 2 years 43,276 7,234 32,261 3,820 

2 years through 3 years 50,206 10,106 51,658 13,071 

3 years through 4 years 5,580 198 5,739 212 

4 years through 5 years 8,713 204 7,603 170 

Thereafter 26,750 11,630 27,623 11,630 

STACR and SCR debt(2) 3,535 3,535 4,652 4,652 

Total debt of Freddie Mac $194,752 $194,752 $190,070 $190,070 

(1) Includes payables related to securities sold under agreements to repurchase that we offset against receivables related to securities purchased under agreements to 

resell on our condensed consolidated balance sheets, when such amounts meet the conditions for offsetting in the accounting guidance.

(2) STACR debt notes and SCR debt notes are subject to prepayment risk as their payments are based upon the performance of a reference pool of mortgage assets that 

may be prepaid by the related mortgage borrower at any time generally without penalty and are, therefore, included as a separate category in the table.

Debt of Consolidated Trusts

The largest component of debt on our condensed consolidated balance sheets is debt of consolidated trusts, which relates to 

securitization transactions that we consolidate for accounting purposes. We primarily issue this type of debt by securitizing 

mortgage loans to fund our Single-Family guarantee activities. 

The table below shows activity for the debt of consolidated trusts.

Table 32 - Debt of Consolidated Trusts Activity

(In millions) 1Q 2023 1Q 2022

Beginning balance $2,929,567 $2,732,056 

Issuances 87,021 295,247 

Repayments and extinguishments (77,867) (192,232) 

Ending balance 2,938,721 2,835,071 

Unamortized premiums and discounts 48,329 64,155 

Debt of consolidated trusts $2,987,050 $2,899,226 

Off-Balance Sheet Arrangements

We enter into certain business arrangements that are not recorded on our condensed consolidated balance sheets or that may 

be recorded in amounts that differ from the full contractual or notional amount of the transaction that affect our short- and longterm liquidity needs. Our off-balance sheet arrangements primarily consist of guarantees and commitments. See Note 2 and

Note 4 for additional information on these transactions. See MD&A - Risk Management - Credit Risk for additional 

information on our credit risk exposure on off-balance sheet arrangements.

Cash Flows 

Cash and cash equivalents (including restricted cash and cash equivalents) decreased by $4.7 billion from $10.5 billion as of 

March 31, 2022 to $5.9 billion as of March 31, 2023, primarily driven by an increase in securities purchased under agreements 

to resell.

Management's Discussion and Analysis Liquidity and Capital Resources

Freddie Mac 1Q 2023 Form 10-Q 34
Capital Resources

The table below presents activity related to our net worth. 

Table 33 - Net Worth Activity 

(In millions) 1Q 2023 1Q 2022

Beginning balance $37,018 $28,033 

Comprehensive income (loss) 2,049 3,678 

Capital draw from Treasury — — 

Senior preferred stock dividends declared — — 

Total equity / net worth $39,067 $31,711 

Remaining Treasury funding commitment $140,162 $140,162 

Aggregate draws under Purchase Agreement 71,648 71,648 

Aggregate cash dividends paid to Treasury 119,680 119,680 

Liquidation preference of the senior preferred stock 109,666 100,681 

ERCF

The charts below present the ERCF capital adequacy requirements under the risk-based capital requirement (CET1 capital ratio 

relative to RWA) and leverage capital requirement (Tier 1 capital ratio relative to ATA). 

Risk-Based Capital Requirement: CET1 Capital Ratio

10.1% 10.1%

4.5% 4.5%

3.0% 3.0%

2.6% 2.6%

Minimum requirement

Stress capital buffer

Stability capital buffer

12/31/22 03/31/23

Leverage Capital Requirement: Tier 1 Capital Ratio

2.8% 2.8%

2.5% 2.5%

0.3% 0.3%

Minimum requirement

PLBA

12/31/22 03/31/23

Management's Discussion and Analysis Liquidity and Capital Resources

Freddie Mac 1Q 2023 Form 10-Q 35
Capital Metrics

The table below presents the components of our regulatory capital.

Table 34 - Regulatory Capital Components

(In billions) March 31, 2023 December 31, 2022

Total equity $39 $37 

Less:

Senior preferred stock 73 73 

Preferred stock 14 14 

Common equity (48) (50) 

Less: deferred tax assets arising from temporary differences that exceed 10% of 

CET1 capital and other regulatory adjustments 5 5 

Common equity Tier 1 capital (53) (55) 

Add: Preferred stock 14 14 

Tier 1 capital (39) (41) 

Tier 2 capital adjustments — — 

Adjusted total capital ($39) ($41) 

The table below presents the components of our statutory capital.

Table 35 - Statutory Capital Components 

(In billions) March 31, 2023 December 31, 2022

Total equity $39 $37 

Less:

Senior preferred stock 73 73 

AOCI, net of taxes (1) (1) 

Core capital (33) (35) 

General allowance for foreclosure losses(1) 8 8 

Total capital ($25) ($27) 

(1) Represents our allowance for credit losses.

Management's Discussion and Analysis Liquidity and Capital Resources

Freddie Mac 1Q 2023 Form 10-Q 36
Table 36 - Capital Metrics Under ERCF 

(In billions) March 31, 2023 December 31, 2022

Adjusted total assets $3,716 $3,710 

Risk-weighted assets (standardized approach):

 Credit risk 781 778 

 Market risk 57 51 

 Operational risk 70 70 

Total risk-weighted assets $908 $899 

(In billions) March 31, 2023 December 31, 2022

Stress capital buffer $27 $27 

Stability capital buffer 23 23 

Countercyclical capital buffer amount — — 

PCCBA $50 $50 

PLBA $11 $11 

March 31, 2023

(Dollars in billions)

Minimum 

Capital 

Requirement

Applicable 

Buffer(1)

Capital 

Requirement 

(Including Buffer)

Available 

Capital (Deficit)

Capital 

Shortfall

Risk-based capital amounts:

Total capital $73 N/A $73 ($25) ($98) 

CET1 capital 41 $50 91 (53) (144) 

Tier 1 capital 54 50 104 (39) (143) 

Adjusted total capital 73 50 123 (39) (162) 

Risk-based capital ratios(2):

Total capital 8.0 % N/A 8.0 % (2.8) % (10.8) %

CET1 capital 4.5 5.6 % 10.1 (5.8) (15.9) 

Tier 1 capital 6.0 5.6 11.6 (4.3) (15.9) 

Adjusted total capital 8.0 5.6 13.6 (4.3) (17.9) 

Leverage capital amounts:

Core capital $93 N/A $93 ($33) ($126) 

Tier 1 capital 93 $11 104 (39) (143) 

Leverage capital ratios(3):

Core capital 2.5 % N/A 2.5 % (0.9) % (3.4) %

Tier 1 capital 2.5 0.3 % 2.8 (1.0) (3.8) 

 Referenced footnotes are included after the prior period table.

Management's Discussion and Analysis Liquidity and Capital Resources

Freddie Mac 1Q 2023 Form 10-Q 37
December 31, 2022

(Dollars in billions)

Minimum 

Capital 

Requirement

Applicable 

Buffer(1)

Capital 

Requirement 

(Including Buffer)

Available 

Capital (Deficit)

Capital 

Shortfall

Risk-based capital amounts:

Total capital $72 N/A $72 ($27) ($99) 

CET1 capital 40 $50 90 (55) (145) 

Tier 1 capital 54 50 104 (41) (145) 

Adjusted total capital 72 50 122 (41) (163) 

Risk-based capital ratios(2):

Total capital 8.0 % N/A 8.0 % (3.1) % (11.1) %

CET1 capital 4.5 5.6 % 10.1 (6.2) (16.3) 

Tier 1 capital 6.0 5.6 11.6 (4.6) (16.2) 

Adjusted total capital 8.0 5.6 13.6 (4.6) (18.2) 

Leverage capital amounts:

Core capital $93 N/A $93 ($35) ($128) 

Tier 1 capital 93 $11 104 (41) (145) 

Leverage capital ratios(3):

Core capital 2.5 % N/A 2.5 % (1.0) % (3.5) %

Tier 1 capital 2.5 0.3 % 2.8 (1.1) (3.9) 

(1) PCCBA for risk-based capital and PLBA for leverage capital.

(2) As a percentage of RWA.

(3) As a percentage of ATA.

At March 31, 2023, our maximum payout ratio under the ERCF was 0.0%.

See Note 15 for additional information on our amounts of capital and ratios under the ERCF and see MD&A - Regulation and 

Supervision - Capital Standards and Public Disclosures for additional information on the ERCF. 

Management's Discussion and Analysis Liquidity and Capital Resources

Freddie Mac 1Q 2023 Form 10-Q 38
CRITICAL ACCOUNTING ESTIMATES

Our critical accounting estimates and policies relate to the Single-Family allowance for credit losses. For additional information 

about our critical accounting estimates and other significant accounting policies, see Note 1 and Critical Accounting Estimates 

in our 2022 Annual Report. 

Single-Family Allowance for Credit Losses

The Single-Family allowance for credit losses represents our estimate of expected credit losses over the contractual term of the 

mortgage loans. The Single-Family allowance for credit losses pertains to all single-family loans classified as held-forinvestment on our condensed consolidated balance sheets.

Determining the appropriateness of the Single-Family allowance for credit losses is a complex process that is subject to 

numerous estimates and assumptions requiring significant management judgment about matters that involve a high degree of 

subjectivity. This process involves the use of models that require us to make judgments about matters that are difficult to 

predict, the most significant of which is the probability of default. 

Changes in forecasted house price growth rates can have a significant effect on our allowance for credit losses estimates. The 

table below shows our nationwide forecasted house price growth rates that were used in determining our allowance for credit 

losses. See Note 5 for additional information regarding our current period provision for credit losses.

Table 37 - Forecasted House Price Growth Rates 

12-Month Forward

13- to 24-Month 

Forward

March 31, 2023 (2.9) % (1.3) %

December 31, 2022 (3.0) (1.8) 

Management's Discussion and Analysis Critical Accounting Estimates

Freddie Mac 1Q 2023 Form 10-Q 39
REGULATION AND SUPERVISION

In addition to oversight by FHFA as our Conservator, we are subject to regulation and oversight by FHFA under our Charter and 

the GSE Act and to certain regulation by other government agencies. FHFA has the power to require us from time to time to 

change our processes, take action and/or stop taking action that could impact our business. Furthermore, regulatory activities 

by other government agencies can affect us indirectly, even if we are not directly subject to such agencies' regulation or 

oversight. For example, regulations that modify requirements applicable to the purchase or servicing of mortgages can affect 

us.

Federal Housing Finance Agency

Targeted Pricing Changes to Enterprise Pricing Framework

In January 2023, FHFA announced further changes to Freddie Mac and Fannie Mae’s single-family pricing framework by 

introducing redesigned and recalibrated upfront fee matrices for purchase, rate-term refinance, and cash-out refinance loans, 

including a new upfront fee for certain borrowers with a DTI above 40 percent. On March 15, 2023, FHFA announced that it 

would delay the effective date of the DTI ratio-based fee by three months to August 1, 2023, to ensure a level playing field for 

all lenders to have sufficient time to deploy the fee.

Single-Family Social Bond Policy

In February 2023, FHFA requested input on Freddie Mac and Fannie Mae’s single-family social bond policy and program 

design. FHFA solicited input on the opportunities and potential risks associated with single-family social bond issuance, 

including with regard to borrower benefits and privacy. FHFA also sought input to facilitate defining the criteria and appropriate 

impact measures for Enterprise-labeled single-family social bonds. 

Capital Standards and Public Disclosures

On February 23, 2023, FHFA announced that it is seeking comment on a notice of proposed rulemaking that would amend 

several provisions of the ERCF for Freddie Mac and Fannie Mae. The proposed rule includes modifications of certain provisions 

of the ERCF related to guarantees on commingled securities, multifamily mortgage exposures secured by properties with 

government subsidies, derivatives and cleared transactions, and credit scores. These proposed amendments would clarify 

certain aspects of the ERCF and help to further align the ERCF with the risks faced by the Enterprises.

Resecuritization Fee for New Issuances of Commingled Securities

Effective July 1, 2022, as a result of the ERCF, Freddie Mac began charging a 50 bps fee for any newly-issued commingled 

security. This fee applied to collateral issued by Fannie Mae based on the UPB of the collateral when it is used for a new 

commingled security. Freddie Mac has not been applying the fee to any Freddie Mac-issued collateral used for a new 

commingled security. Due to the market's reaction to this fee, our issuances of commingled securities effectively ceased after 

July 1, 2022. Effective April 1, 2023, we reduced the fee from 50 bps to 9.375 bps per FHFA's guidance. 

Enhanced Payment Deferral Policies for Borrowers Facing Financial 

Hardship

Effective July 1, 2023, Freddie Mac, in conjunction with Fannie Mae and under the direction of FHFA, will implement a new 

payment deferral policy allowing eligible borrowers recovering from short-term hardship to defer up to six months of delinquent 

mortgage payments. This policy is separate from our COVID-19 and Disaster Payment Deferral policies.

Management's Discussion and Analysis Regulation and Supervision

Freddie Mac 1Q 2023 Form 10-Q 40
Updated Equitable Housing Finance Plan

On April 5, 2023, FHFA announced updates to Freddie Mac and Fannie Mae’s 2022-2024 Equitable Housing Finance Plans for 

2023. The updates build upon the inaugural plans first announced last year and make adjustments based on initial research and 

findings. 

In addition, we released a performance report that outlines our progress under our Equitable Housing Finance Plan during 2022 

and actions we are taking to advance equity in our automated underwriting systems, such as the inclusion of rental payments 

and cash flow underwriting and the use of advanced statistical techniques to improve model fairness.

Final Rule Amending the Duty to Serve Underserved Markets Regulation

On April 12, 2023, FHFA issued a final rule to amend the Enterprise Duty to Serve Underserved Markets regulation. The final 

rule allows Freddie Mac’s activities in all colonia census tracts to be eligible for Duty to Serve credit. The final rule: (1) adds a 

new definition for “colonia census tract” to mean that a census tract containing a colonia will serve as a census tract-based 

proxy for a colonia; (2) amends the definition of “high-needs rural region” by substituting “colonia census tract” for “colonia”; 

and (3) amends the definition of “rural area” to include all colonia census tracts, regardless of their location. The final rule will go 

into effect on July 1, 2023.

Fair Lending, Fair Housing, and Equitable Housing Finance Plans

On April 19, 2023, FHFA announced that it is seeking comment on a notice of proposed rulemaking that would formalize many 

of its existing practices and programs regarding fair housing and fair lending oversight of its regulated entities.

Specifically, the proposed rule would codify in regulation:

n	 FHFA’s fair lending oversight requirements for Freddie Mac and Fannie Mae and the Federal Home Loan Banks;

n	 The requirements for the Enterprises to maintain Equitable Housing Finance Plans; and

n	 The requirements for the Enterprises to collect and report homeownership education, housing counseling, and language 

preference information from the Supplemental Consumer Information Form.

The proposed rule would also expand requirements for the Enterprises in fair lending compliance and provide greater oversight 

and transparency regarding the Equitable Housing Finance Plans.

Management's Discussion and Analysis Regulation and Supervision

Freddie Mac 1Q 2023 Form 10-Q 41
FORWARD-LOOKING STATEMENTS

We regularly communicate information concerning our business activities to investors, the news media, securities analysts, and 

others as part of our normal operations. Some of these communications, including this Form 10-Q, contain "forward-looking 

statements." Examples of forward-looking statements include, but are not limited to, statements pertaining to the 

conservatorship, our current expectations and objectives for the Single-Family and Multifamily segments of our business, our 

efforts to assist the housing market, our liquidity and capital management, economic and market conditions and trends 

including, but not limited to, changes in observed and forecasted house price appreciation, our market share, the effect of 

legislative and regulatory developments and new accounting guidance, the credit quality of loans we own or guarantee, the 

costs and benefits of our CRT transactions, banking crises or failures, the effects of natural disasters, other catastrophic 

events, and significant climate change effects and actions taken in response thereto on our business, and our results of 

operations and financial condition. Forward-looking statements involve known and unknown risks and uncertainties, some of 

which are beyond our control. Forward-looking statements are often accompanied by, and identified with, terms such as 

"could," "may," "will," "believe," "expect," "anticipate," "forecast," and similar phrases. These statements are not historical 

facts, but rather represent our expectations based on current information, plans, judgments, assumptions, estimates, and 

projections. Actual results may differ significantly from those described in or implied by such forward-looking statements due to 

various factors and uncertainties, including those described in the Risk Factors section in our 2022 Annual Report, and 

including, without limitation, the following:

n The actions the federal government (including FHFA, Treasury, and Congress) and state governments may take, require us 

to take, or restrict us from taking, including actions to promote equitable access to affordable and sustainable housing, 

such as programs to implement the expectations in FHFA's Conservatorship Scorecards, recent requirements and 

guidance related to equitable housing, and other objectives for us;

n Changes in the fiscal and monetary policies of the Federal Reserve, including changes in target interest rates and in the 

amount of agency MBS and agency CMBS held by the Federal Reserve;

n The effect of the restrictions on our business due to the conservatorship and the Purchase Agreement;

n Changes in our Charter, applicable legislative or regulatory requirements (including any legislation affecting the future 

status of our company), or the Purchase Agreement;

n Changes to our capital requirements and potential effects of such changes on our business strategies;

n Changes in tax laws;

n Changes in privacy and cybersecurity laws and regulations;

n Changes in accounting policies, practices, standards, or guidance;

n Changes in economic and market conditions, including volatility in the financial services industry, changes in employment 

rates, inflation, interest rates, spreads, and house prices;

n Changes in the U.S. residential mortgage market, including changes in the supply and type of loan products (e.g., 

refinance vs. purchase and fixed-rate vs. ARM);

n The success of our efforts to mitigate our losses on our Single-Family mortgage portfolio;

n The success of our strategy to transfer mortgage credit risk through STACR, ACIS, K Certificate, SCR, MCIP, and other 

CRT transactions;

n Our ability to maintain adequate liquidity to fund our operations;

n Our ability to maintain the security and resiliency of our operational systems and infrastructure, including against 

cyberattacks or other security incidents, whether due to insider error or malfeasance or system errors or vulnerabilities in 

our or our third parties' systems;

n Our ability to effectively execute our business strategies, implement significant changes, and improve efficiency;

n The adequacy of our risk management framework, including the adequacy of our regulatory capital framework prescribed 

by FHFA and internal models for measuring risk;

n Our ability to manage mortgage credit risk, including the effect of changes in underwriting and servicing practices;

n Our ability to limit or manage our economic exposure and GAAP earnings exposure to interest-rate volatility and spread 

volatility, including the availability of derivative financial instruments needed for interest-rate risk management purposes 

and our ability to apply hedge accounting;

n Our operational ability to issue new securities, make timely and correct payments on securities, and provide initial and 

ongoing disclosures;

n Our reliance on CSS and the CSP for the operation of the majority of our Single-Family securitization activities, limits on 

our influence over CSS Board decisions, and any additional changes FHFA may require in our relationship with, or support 

of, CSS;

n	 Changes in the methodologies, models, assumptions, and estimates we use to prepare our financial statements, make 

business decisions, and manage risks;

Management's Discussion and Analysis Forward-Looking Statements

Freddie Mac 1Q 2023 Form 10-Q 42
n Changes in investor demand for our debt or mortgage-related securities;

n Our ability to maintain market acceptance of the UMBS, including our ability to maintain alignment of the prepayment 

speeds of our and Fannie Mae's respective UMBS;

n Changes in the practices of loan originators, servicers, investors, and other participants in the secondary mortgage market; 

n Competition from other market participants, which could affect the pricing we offer for our products, the credit 

characteristics of the loans we purchase, and our ability to meet our affordable housing goals and other mandated 

activities; 

n The discontinuance of, transition from, or replacement of LIBOR and the adverse consequences it could have on our 

business and operations;

n The availability of critical third parties, or their vendors and other business partners, to deliver products or services, or to 

manage risks, including cybersecurity risk, effectively;

n The occurrence of a major natural disaster, other catastrophic event, or significant climate change effects in areas in which 

our offices, significant portions of our total mortgage portfolio, or the offices of critical third parties are located, and for 

which we may be uninsured or significantly underinsured; and 

n	 Other factors and assumptions described in this Form 10-Q and our 2022 Annual Report, including in the MD&A section.

Forward-looking statements are made only as of the date of this Form 10-Q, and we undertake no obligation to update any 

forward-looking statements we make to reflect events or circumstances occurring after the date of this Form 10-Q.

Management's Discussion and Analysis Forward-Looking Statements

Freddie Mac 1Q 2023 Form 10-Q 43
Financial Statements

Financial Statements

Freddie Mac 1Q 2023 Form 10-Q 44
FREDDIE MAC 

Condensed Consolidated Statements of Income and 

Comprehensive Income (Unaudited)

(In millions, except share-related amounts) 1Q 2023 1Q 2022

Net interest income

Interest income $24,987 $17,740 

Interest expense (20,486) (13,636) 

Net interest income 4,501 4,104 

Non-interest income

Guarantee income 466 70 

Investment gains, net (225) 1,513 

Other income 85 159 

Non-interest income 326 1,742 

Net revenues 4,827 5,846 

(Provision) benefit for credit losses (395) 837 

Non-interest expense

Salaries and employee benefits (374) (356) 

Credit enhancement expense (530) (459) 

Benefit for (decrease in) credit enhancement recoveries 49 (17) 

Legislative assessments expense (735) (759) 

Other expense (342) (341) 

Non-interest expense (1,932) (1,932) 

Income before income tax expense 2,500 4,751 

Income tax expense (505) (953) 

Net income 1,995 3,798 

Other comprehensive income (loss), net of taxes and reclassification adjustments 54 (120) 

Comprehensive income $2,049 $3,678 

Net income $1,995 $3,798 

Amounts attributable to senior preferred stock (2,049) (3,678) 

Net income attributable to common stockholders ($54) $120 

Net income per common share ($0.02) $0.04 

Weighted average common shares (in millions) 3,234 3,234 

The accompanying notes are an integral part of these condensed consolidated financial statements.

Financial Statements Condensed Consolidated Statements of Income and Comprehensive Income

Freddie Mac 1Q 2023 Form 10-Q 45
FREDDIE MAC

Condensed Consolidated Balance Sheets (Unaudited) 

March 31, December 31,

(In millions, except share-related amounts) 2023 2022

Assets

Cash and cash equivalents (includes $834 and $707 of restricted cash and cash equivalents) $5,873 $6,360 

Securities purchased under agreements to resell 108,036 87,295 

Investment securities, at fair value 37,712 38,701 

Mortgage loans held-for-sale (includes $2,926 and $3,218 at fair value) 12,782 12,197 

Mortgage loans held-for-investment (net of allowance for credit losses of $7,835 and $7,391 and includes 

$1,238 and $1,214 at fair value) 

 3,024,249 3,022,318 

Accrued interest receivable, net 8,662 8,529 

Deferred tax assets, net 5,329 5,777 

Other assets (includes $5,982 and $5,890 at fair value) 22,337 27,156 

Total assets $3,224,980 $3,208,333 

Liabilities and equity

Liabilities

Accrued interest payable $7,507 $7,309 

Debt (includes $2,811 and $3,047 at fair value) 3,167,514 3,145,832 

Other liabilities (includes $894 and $759 at fair value) 10,892 18,174 

Total liabilities 3,185,913 3,171,315 

Commitments and contingencies (Notes 4, 8, 14)

Equity

Senior preferred stock (liquidation preference of $109,666 and $107,878) 72,648 72,648 

Preferred stock, at redemption value 14,109 14,109 

Common stock, $0.00 par value, 4,000,000,000 shares authorized, 725,863,886 shares issued and 

650,059,553 shares outstanding

 — — 

Retained earnings (43,671) (45,666) 

AOCI, net of taxes, related to:

Available-for-sale securities (32) (84) 

Other (102) (104) 

AOCI, net of taxes (134) (188) 

Treasury stock, at cost, 75,804,333 shares (3,885) (3,885) 

Total equity 39,067 37,018 

Total liabilities and equity $3,224,980 $3,208,333 

The table below presents the carrying value and classification of the assets and liabilities of consolidated VIEs on our condensed consolidated balance 

sheets.

 

March 31, December 31, 

(In millions) 2023 2022

Assets:

Cash and cash equivalents (includes $740 and $610 of restricted cash and cash equivalents) $741 $611 

Securities purchased under agreements to resell 10,881 9,703 

Investment securities, at fair value 113 126 

Mortgage loans held-for-investment, net 2,977,998 2,971,601 

Accrued interest receivable, net 8,083 7,944 

Other assets 5,925 5,019 

Total assets of consolidated VIEs $3,003,741 $2,995,004

Liabilities:

Accrued interest payable $6,779 $6,619 

Debt 2,987,050 2,979,070 

Total liabilities of consolidated VIEs $2,993,829 $2,985,689 

The accompanying notes are an integral part of these condensed consolidated financial statements.

Financial Statements Condensed Consolidated Balance Sheets

Freddie Mac 1Q 2023 Form 10-Q 46
FREDDIE MAC

Condensed Consolidated Statements of Equity (Unaudited) 

Shares Outstanding

Senior

Preferred

Stock

Preferred

Stock, at

Redemption

Value

Common

Stock, at

Par Value

Retained

Earnings

AOCI,

Net of

Tax

Treasury

Stock, at

Cost

Total

(In millions) Equity 

Senior

Preferred

Stock

Preferred

Stock

Common

Stock

Balance at December 31, 2022 1 464 650 $72,648 $14,109 $— ($45,666) ($188) ($3,885) $37,018 

Comprehensive income:

Net income — — — — — — 1,995 — — 1,995 

Other comprehensive income (loss):

Changes in net unrealized gains (losses) 

on available-for-sale securities (net of 

taxes of $14 million) — — — — — — — 52 — 52 

Reclassification adjustment for gains on 

available-for-sale securities included in 

net income (net of taxes of $0 million) — — — — — — — — — — 

Other (net of taxes of $1 million) — — — — — — — 2 — 2 

Comprehensive income — — — — — — 1,995 54 — 2,049 

Ending balance at March 31, 2023 1 464 650 $72,648 $14,109 $— ($43,671) ($134) ($3,885) $39,067 

Balance at December 31, 2021 1 464 650 $72,648 $14,109 $— ($54,993) $154 ($3,885) $28,033 

Comprehensive income:

Net income — — — — — — 3,798 — — 3,798 

Other comprehensive income (loss):

Changes in net unrealized gains (losses) 

on available-for-sale securities (net of 

taxes of $33 million) — — — — — — — (123) — (123) 

Reclassification adjustment for gains on 

available-for-sale securities included in 

net income (net of taxes of $0 million) — — — — — — — 1 — 1 

Other (net of taxes of $1 million) — — — — — — — 2 — 2 

Comprehensive income — — — — — — 3,798 (120) — 3,678 

Ending balance at March 31, 2022 1 464 650 $72,648 $14,109 $— ($51,195) $34 ($3,885) $31,711 

The accompanying notes are an integral part of these condensed consolidated financial statements.

Financial Statements Condensed Consolidated Statements of Equity

Freddie Mac 1Q 2023 Form 10-Q 47
FREDDIE MAC

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In millions) 1Q 2023 1Q 2022

Net cash provided by (used in) operating activities $3,435 $3,749 

Cash flows from investing activities

Investment securities:

Purchases (39,052) (42,254) 

Proceeds from sales 34,919 40,122 

Proceeds from maturities and repayments 5,464 1,833 

Mortgage loans acquired held-for-investment:

Purchases (19,991) (53,755) 

Proceeds from sales 1,661 329 

Proceeds from repayments 55,034 116,023 

Secured lending arrangements:

Advances (22,317) (62,351) 

Proceeds from repayments 1 238 

Net (increase) decrease in securities purchased under agreements to resell (13,353) (2,341) 

Cash flows related to derivatives 61 826 

Other, net (113) (141) 

Net cash provided by (used in) investing activities 2,314 (1,471) 

Cash flows from financing activities

Debt of consolidated trusts:

Proceeds from issuance 44,187 136,361 

Repayments and redemptions (55,197) (128,700) 

Debt of Freddie Mac:

Proceeds from issuance 64,864 7,361 

Repayments (52,748) (20,849) 

Net increase (decrease) in securities sold under agreements to repurchase (7,339) 3,927 

Other, net (3) (2) 

Net cash provided by (used in) financing activities (6,236) (1,902) 

Net increase (decrease) in cash and cash equivalents (includes restricted cash and cash equivalents) (487) 376 

Cash and cash equivalents (includes restricted cash and cash equivalents) at the beginning of year 6,360 10,150 

Cash and cash equivalents (includes restricted cash and cash equivalents) at end of period 5,873 10,526 

Supplemental cash flow information

Cash paid for:

Debt interest 20,806 17,996 

Income taxes — — 

Non-cash investing and financing activities (Notes 3 and 6)

 The accompanying notes are an integral part of these condensed consolidated financial statements. 

Financial Statements Condensed Consolidated Statements of Cash Flows

Freddie Mac 1Q 2023 Form 10-Q 48
Notes to Condensed Consolidated Financial 

Statements

NOTE 1

Summary of Significant Accounting Policies

Freddie Mac is a GSE chartered by Congress in 1970, with a mission to provide liquidity, stability, and affordability to the U.S. 

housing market. We are regulated by FHFA, the SEC, HUD, and Treasury, and are currently operating under the 

conservatorship of FHFA. The conservatorship and related matters significantly affect our management, business activities, 

financial condition, and results of operations. In connection with our entry into conservatorship, we entered into the Purchase 

Agreement with Treasury, under which we issued Treasury both senior preferred stock and a warrant to purchase common 

stock. Our Purchase Agreement with Treasury is critical to keeping us solvent and avoiding the appointment of a receiver by 

FHFA under statutory mandatory receivership provisions. We believe the support provided by Treasury pursuant to the 

Purchase Agreement currently enables us to have adequate liquidity to conduct normal business activities. For more 

information on the conservatorship, the roles of FHFA and Treasury, and the Purchase Agreement, see our 2022 Annual Report. 

Throughout our unaudited condensed consolidated financial statements and related notes, we use certain acronyms and terms 

which are defined in the Glossary of our 2022 Annual Report. 

The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited 

consolidated financial statements and related notes in our 2022 Annual Report.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP and 

include our accounts as well as the accounts of other entities in which we have a controlling financial interest. All intercompany 

balances and transactions have been eliminated.

We are operating under the basis that we will realize assets and satisfy liabilities in the normal course of business as a going 

concern and in accordance with the authority provided by FHFA to our Board of Directors to oversee management's conduct of 

our business operations. In the opinion of management, our unaudited condensed consolidated financial statements contain all 

adjustments, which include only normal recurring adjustments, necessary for a fair statement of our results. 

Use of Estimates

The preparation of our condensed consolidated financial statements requires management to make estimates and assumptions 

that affect the reported amounts of assets and liabilities, revenues and expenses, and disclosure of contingent assets and 

liabilities at the date of the financial statements. Management has made significant estimates to report the allowance for credit 

losses on single-family mortgage loans. Actual results could be different from these estimates.

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 1

Freddie Mac 1Q 2023 Form 10-Q 49
Recently Issued Accounting Guidance

Recently Adopted Accounting Guidance

Standard Description Date of 

 Adoption

Effect on Consolidated Financial 

Statements

ASU 2022-01, Derivatives and 

Hedging (Topic 815): Fair Value 

Hedging - Portfolio Layer Method

The amendments in this Update provide 

clarifications of the guidance in ASC Topic 815 

on fair value hedge accounting of interest rate 

risk for portfolios of financial assets. The 

Update amends the guidance in ASU 2017-12 

that, among other things, establishes the "lastof-layer" method for making the fair value 

hedge accounting for these portfolios more 

accessible by allowing the entities to apply the 

portfolio layer method to portfolios of all 

financial assets, including both prepayable and 

nonprepayable financial assets. The Update 

provides additional guidance on the accounting 

for and disclosure of hedge basis adjustments 

that are applicable to the portfolio layer 

method. 

January 1, 2023 The adoption of these amendments 

did not have a material effect on our 

consolidated financial statements. 

We adopted the guidance in this 

Update related to disclosures on a 

prospective basis.

ASU 2022-02, Financial 

Instruments—Credit Losses 

(Topic 326): Troubled Debt 

Restructurings and Vintage 

Disclosures

The amendments in this Update require 

disclosure of current period gross write-offs by 

year of origination for financing receivables 

within the scope of ASC Subtopic 326-20.

January 1, 2023 for the 

amendments related to 

disclosure of gross writeoffs by year of origination.

The adoption of these amendments 

did not have a material effect on our 

consolidated financial statements. 

See Note 3 for additional disclosure 

of gross write-offs by year of 

origination. 

Recently Issued Accounting Guidance, Not Yet Adopted Within Our Consolidated Financial Statements

Standard Description Date of 

 Adoption

Effect on Consolidated Financial 

Statements

ASU 2023-02, Investments - 

Equity Method and Joint 

Ventures (Topic 323): Accounting 

for Investments in Tax Credit 

Structures Using the Proportional 

Amortization Method 

The amendments in this Update expand the 

use of the proportional amortization method of 

accounting to equity investments in other tax 

credit structures that meet certain conditions. 

This Update also amends those conditions 

primarily to assess projected benefits on a 

discounted basis and expands the disclosure 

requirements of those investments. 

January 1, 2024 We do not expect the adoption of 

these amendments to have a 

material effect on our consolidated 

financial statements.

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 1

Freddie Mac 1Q 2023 Form 10-Q 50
NOTE 2

Securitizations and Variable Interest Entities

Nonconsolidated VIEs

The following table presents the carrying amounts and classification of the assets and liabilities recorded on our condensed 

consolidated balance sheets that relate to our variable interests in VIEs for which we are not the primary beneficiary and with 

which we were involved in the design and creation and have a significant continuing involvement, our maximum exposure to 

loss as a result of our involvement with such VIEs, and the total assets of the VIEs. Our involvement with such VIEs primarily 

consists of guarantees that we have issued to the VIE, some of which are accounted for as derivative instruments, and 

investments in debt securities issued by the VIE. See Note 4 for additional information on our guarantees to nonconsolidated 

VIEs. 

Total assets shown in the table below represents the remaining UPB of the mortgage loans or other noncash financial assets 

held by the VIE and excludes cash and nonfinancial assets held by the VIE. Maximum exposure to loss shown in the table 

below is primarily based on the remaining UPB of the guaranteed securities issued by the VIE and represents the contractual 

amounts that could be lost if the assets of the VIE (including the assets in the related reference pool for CRT products) became 

worthless at the balance sheet date, without consideration of proceeds from related collateral liquidation and possible 

recoveries under credit enhancements. We do not believe the maximum exposure to loss from our involvement with 

nonconsolidated VIEs is representative of the actual loss we are likely to incur based on our historical loss experience and after 

consideration of proceeds from related collateral liquidation and available credit enhancements.

Table 2.1 - Nonconsolidated VIEs

March 31, 2023

Carrying Amounts of the Assets and Liabilities On the 

Condensed Consolidated Balance Sheets

Total Assets

Maximum Exposure 

(In millions) to Loss

Investment 

securities

Accrued Interest 

Receivable and 

Other Assets(1) Liabilities(1)

Single-Family:

 Securitization products $952 $178 $430 $31,139 $25,329 

Resecuritization products(2) 5,800 64 587 116,807 116,807 

CRT products(3) — 211 104 30,701 117 

Total Single-Family 6,752 453 1,121 178,647 142,253 

Multifamily:

Securitization products(4) 7,641 4,903 4,783 357,747 316,606 

CRT products(3) — 2 4 1,065 — 

Total Multifamily 7,641 4,905 4,787 358,812 316,606 

Other — 8 5 166 440 

Total $14,393 $5,366 $5,913 $537,625 $459,299 

Referenced footnotes are included after the prior period table.

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 2

Freddie Mac 1Q 2023 Form 10-Q 51
December 31, 2022

Carrying Amounts of the Assets and Liabilities On the 

Condensed Consolidated Balance Sheets

Total Assets

Maximum Exposure 

(In millions) to Loss

Investment 

securities

Accrued Interest 

Receivable and 

Other Assets(1) Liabilities(1)

Single-Family:

Securitization products $965 $175 $436 $31,614 $25,772 

Resecuritization products(2) 5,092 61 659 119,267 119,267 

CRT products(3) — 197 52 30,549 105 

Total Single-Family 6,057 433 1,147 181,430 145,144 

Multifamily:

Securitization products(4) 7,808 4,931 4,920 360,869 319,117 

CRT products(3) — 2 2 972 — 

Total Multifamily 7,808 4,933 4,922 361,841 319,117 

Other — 8 5 185 435 

Total $13,865 $5,374 $6,074 $543,456 $464,696 

(1) Other assets primarily include our guarantee assets. Liabilities primarily include our guarantee obligations.

(2) Total assets and maximum exposure to loss are based on the UPB of Fannie Mae securities underlying commingled Freddie Mac resecuritization trusts. We exclude 

noncommingled resecuritization trusts from these amounts as we have already guaranteed the underlying collateral and therefore noncommingled resecuritizations 

do not involve any incremental assets or create any incremental exposure to credit risk. Total assets exclude $0.1 billion as of both March 31, 2023 and 

December 31, 2022, of Fannie Mae securities that we have guaranteed that are included in resecuritization trusts that we have consolidated as we own all of the 

outstanding securities issued by the VIE.

(3) Maximum exposure to loss is based on our expected recovery receivables. We also have exposure to loss from our obligations to make certain payments to the VIE 

to support payment of the interest due on the notes issued by the VIE, which we account for as derivative instruments. The notional value of these derivative 

instruments is equal to the total assets of the VIE.

(4) Includes total assets of $0.7 billion and $0.4 billion as of March 31, 2023 and December 31, 2022, respectively, related to VIEs in which our interest would no 

longer absorb significant variability as the guaranteed securities have completely paid off. 

We also obtain interests in various other entities created by third parties through the normal course of business that may be 

VIEs, such as through purchases of multifamily loans, guarantees of multifamily housing revenue bonds, as a derivative 

counterparty, or through other activities. To the extent that we were not involved in the design or creation of these VIEs, they 

are excluded from the table above. Our interests in these VIEs are generally passive in nature and are not expected to result in 

us obtaining a controlling financial interest in these VIEs in the future. As a result, we do not consolidate these VIEs and we 

account for our interests in these VIEs in the same manner that we account for our interests in other third-party transactions. 

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 2

Freddie Mac 1Q 2023 Form 10-Q 52
NOTE 3

Mortgage Loans

The table below provides details of the loans on our condensed consolidated balance sheets.

Table 3.1 - Mortgage Loans 

March 31, 2023 December 31, 2022

(In millions) Single-Family Multifamily Total Single-Family Multifamily Total

Held-for-sale UPB $3,373 $10,255 $13,628 $3,564 $9,544 $13,108 

Cost basis and fair value adjustments, net (675) (171) (846) (696) (215) (911) 

Total held-for-sale loans, net 2,698 10,084 12,782 2,868 9,329 12,197 

Held-for-investment UPB 2,944,949 47,353 2,992,302 2,941,505 48,379 2,989,884 

Cost basis and fair value adjustments, net(1) 39,833 (51) 39,782 39,896 (71) 39,825 

Allowance for credit losses (7,675) (160) (7,835) (7,314) (77) (7,391) 

 Total held-for-investment loans, net(2) 2,977,107 47,142 3,024,249 2,974,087 48,231 3,022,318 

Total mortgage loans, net $2,979,805 $57,226 $3,037,031 $2,976,955 $57,560 $3,034,515 

(1) Includes ($0.7) billion of basis adjustments maintained on a closed portfolio basis related to existing portfolio layer method hedge relationships as of March 31, 2023.

(2) Includes $1.2 billion of multifamily held-for-investment loans for which we have elected the fair value option as of both March 31, 2023 and December 31, 2022.

For the purposes of certain single-family mortgage loan disclosures below, we present loans by class of financing receivable 

type. Financing receivable classes used for disclosure consist of: "20- and 30-year or more, amortizing fixed-rate," "15-year or 

less, amortizing fixed-rate," and "adjustable-rate and other." The "other" class consists of Alt-A, interest-only, and option ARM 

loans.

The table below provides details of the UPB of loans we purchased and sold during the periods presented.

Table 3.2 - Loans Purchased and Sold

(In millions) 1Q 2023 1Q 2022

Single-Family:

Purchases:

 Held-for-investment loans $58,965 $206,935 

Sales of held-for-sale loans(1) — 15 

Multifamily:

Purchases:

 Held-for-investment loans 3,349 2,565 

 Held-for-sale loans 2,695 12,267 

Sales of held-for-sale loans(2) 6,150 14,292 

(1) Our sales of single-family loans reflect the sale of single-family seasoned loans. 

(2) Our sales of multifamily loans occur primarily through the issuance of Multifamily K Certificates. 

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 3

Freddie Mac 1Q 2023 Form 10-Q 53
Reclassifications 

The table below presents the allowance for credit losses or valuation allowance that was reversed or established due to loan 

reclassifications between held-for-investment and held-for-sale during the periods presented.

Table 3.3 - Loan Reclassifications(1) 

1Q 2023 1Q 2022

(In millions) UPB

Allowance for 

Credit Losses 

Reversed or 

(Established)

Valuation 

Allowance 

(Established) 

or Reversed UPB

Allowance for 

Credit Losses 

Reversed or 

(Established)

Valuation 

Allowance 

(Established) 

or Reversed

Single-Family reclassifications from:

Held-for-investment to held-for-sale $— $— $— $248 $— $— 

Held-for-sale to held-for-investment(2) 48 4 4 62 (3) — 

Multifamily reclassifications from:

Held-for-investment to held-for-sale 4,731 1 (27) 315 — — 

 Held-for-sale to held-for-investment(2) 561 — 16 246 — — 

(1) Amounts exclude reclassifications related to loans for which we have elected the fair value option.

(2) Allowance for credit losses established upon loan reclassifications from held-for-sale to held-for-investment to reflect the net amount we expect to collect on the 

loan. Loans with prior charge-offs may have a negative allowance for credit losses established upon reclassification.

Interest Income

The table below presents the amortized cost basis of non-accrual loans as of the beginning and the end of the periods 

presented, including the interest income recognized for the period that is related to the loans on non-accrual status as of the 

period end. 

Table 3.4 - Amortized Cost Basis of Held-for-Investment Loans on Non-Accrual

 

Non-Accrual Amortized Cost Basis

Interest Income 

Recognized(1)

(In millions) December 31, 2022 March 31, 2023 1Q 2023

Single-Family:

20- and 30-year or more, amortizing fixed-rate $9,307 $9,348 $28 

15-year or less, amortizing fixed-rate 427 434 1 

Adjustable-rate and other 361 332 1 

Total Single-Family 10,095 10,114 30 

Total Multifamily 42 41 1 

Total Single-Family and Multifamily $10,137 $10,155 $31 

Non-Accrual Amortized Cost Basis

Interest Income 

Recognized(1)

(In millions) December 31, 2021 March 31, 2022 1Q 2022

Single-Family:

20- and 30-year or more, amortizing fixed-rate $17,013 $13,831 $49 

15-year or less, amortizing fixed-rate 844 684 1 

Adjustable-rate and other 793 580 1 

Total Single-Family 18,650 15,095 51 

Total Multifamily — 42 — 

Total Single-Family and Multifamily $18,650 $15,137 $51 

(1) Represents the amount of payments received during the period, including those received while the loans were on accrual status, for the held-for-investment loans on 

non-accrual status as of period end.

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 3

Freddie Mac 1Q 2023 Form 10-Q 54
The table below provides the amount of accrued interest receivable, net presented on our condensed consolidated balance 

sheets and the amount of accrued interest receivable related to loans on non-accrual status at the end of the periods that was 

charged off.

Table 3.5 - Accrued Interest Receivable, Net and Related Charge-Offs

Accrued Interest Receivable, Net Accrued Interest Receivable Related Charge-Offs

(In millions) March 31, 2023 December 31, 2022 1Q 2023 1Q 2022

Single-Family loans $8,090 $7,967 ($48) ($87) 

Multifamily loans 228 220 — — 

Credit Quality

Single-Family

The current LTV ratio is one key factor we consider when estimating our allowance for credit losses for single-family loans. As 

current LTV ratios increase, the borrower's equity in the home decreases, which may negatively affect the borrower's ability to 

refinance (outside of our relief refinance programs) or to sell the property for an amount at or above the balance of the 

outstanding loan.

The table below presents the amortized cost basis of single-family held-for-investment loans by current LTV ratio. Our current 

LTV ratios are estimates based on available data through the end of each period presented. For reporting purposes:

n	 Alt-A loans continue to be presented in the "adjustable-rate and other" category following modification, even though the 

borrower may have provided full documentation of assets and income to complete the modification and

n Option ARM loans continue to be presented in the "adjustable-rate and other" category following modification, even 

though the modified loan no longer provides for optional payment provisions.

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 3

Freddie Mac 1Q 2023 Form 10-Q 55
Table 3.6 - Amortized Cost Basis of Single-Family Held-for-Investment Loans by Current LTV Ratio and Vintage

March 31, 2023

Year of Origination 

Total

(In millions) 2023 2022 2021 2020 2019 Prior

Current LTV ratio:

 20- and 30-year or more, amortizing fixed-rate

≤ 60 $4,065 $69,133 $395,062 $483,968 $86,816 $436,771 $1,475,815 

> 60 to 80 11,184 162,441 415,109 184,807 27,759 17,233 818,533 

> 80 to 90 6,522 86,335 82,824 5,149 579 568 181,977 

> 90 to 100 10,477 86,541 12,317 391 59 152 109,937 

> 100 5 6,027 211 6 5 151 6,405 

 Total 20- and 30-year or more, amortizing fixed-rate 32,253 410,477 905,523 674,321 115,218 454,875 2,592,667 

 Current-period gross write-offs(1) — 3 8 2 1 12 26 

 15-year or less, amortizing fixed-rate

≤ 60 561 17,299 119,253 106,899 14,068 69,206 327,286 

> 60 to 80 639 12,575 18,425 1,938 103 26 33,706 

> 80 to 90 123 1,500 275 6 — 1 1,905 

> 90 to 100 69 462 5 — — 1 537 

> 100 — 12 — — — 1 13 

 Total 15-year or less, amortizing fixed-rate 1,392 31,848 137,958 108,843 14,171 69,235 363,447 

 Current-period gross write-offs(1) — — — — — 1 1 

 Adjustable-rate and other

≤ 60 74 1,312 2,779 1,498 615 14,915 21,193 

> 60 to 80 269 2,391 1,873 200 69 447 5,249 

> 80 to 90 211 1,251 173 5 2 35 1,677 

> 90 to 100 207 912 13 — — 16 1,148 

> 100 — 71 — — — 8 79 

 Total adjustable-rate and other 761 5,937 4,838 1,703 686 15,421 29,346 

 Current-period gross write-offs(1) — — — — — 5 5 

Total for all loan product types by current LTV ratio:

≤ 60 $4,700 $87,744 $517,094 $592,365 $101,499 $520,892 $1,824,294 

> 60 to 80 12,092 177,407 435,407 186,945 27,931 17,706 857,488 

> 80 to 90 6,856 89,086 83,272 5,160 581 604 185,559 

> 90 to 100 10,753 87,915 12,335 391 59 169 111,622 

> 100 5 6,110 211 6 5 160 6,497 

Total Single-Family loans $34,406 $448,262 $1,048,319 $784,867 $130,075 $539,531 $2,985,460 

Total current-period gross write-offs(1) $— $3 $8 $2 $1 $18 $32 

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 3

Freddie Mac 1Q 2023 Form 10-Q 56
December 31, 2022

Year of Origination 

Total

(In millions) 2022 2021 2020 2019 2018 Prior

Current LTV ratio:

 20- and 30-year or more, amortizing fixed-rate

≤ 60 $66,153 $394,498 $489,315 $87,188 $38,955 $407,819 $1,483,928 

> 60 to 80 158,421 424,141 190,167 28,991 7,870 10,426 820,016 

> 80 to 90 79,901 90,006 4,405 569 164 419 175,464 

> 90 to 100 86,109 8,911 397 56 24 143 95,640 

> 100 2,568 49 6 6 5 156 2,790 

 Total 20- and 30-year or more, amortizing fixed-rate 393,152 917,605 684,290 116,810 47,018 418,963 2,577,838 

 15-year or less, amortizing fixed-rate

≤ 60 16,752 119,379 109,685 14,606 5,578 68,240 334,240 

> 60 to 80 13,042 22,007 2,503 132 16 16 37,716 

> 80 to 90 1,601 368 7 — — 1 1,977 

> 90 to 100 570 5 — — — 1 576 

> 100 3 — — — — 1 4 

 Total 15-year or less, amortizing fixed-rate 31,968 141,759 112,195 14,738 5,594 68,259 374,513 

 Adjustable-rate and other

≤ 60 1,255 2,779 1,524 634 428 15,139 21,759 

> 60 to 80 2,322 1,956 214 76 28 445 5,041 

> 80 to 90 1,127 186 5 1 1 34 1,354 

> 90 to 100 836 11 — — — 14 861 

> 100 26 — — — — 9 35 

 Total adjustable-rate and other 5,566 4,932 1,743 711 457 15,641 29,050 

Total for all loan product types by current LTV ratio:

≤ 60 $84,160 $516,656 $600,524 $102,428 $44,961 $491,198 $1,839,927 

> 60 to 80 173,785 448,104 192,884 29,199 7,914 10,887 862,773 

> 80 to 90 82,629 90,560 4,417 570 165 454 178,795 

> 90 to 100 87,515 8,927 397 56 24 158 97,077 

> 100 2,597 49 6 6 5 166 2,829 

Total Single-Family loans $430,686 $1,064,296 $798,228 $132,259 $53,069 $502,863 $2,981,401 

(1) Excludes write-offs related to accrued interest receivable and advances of pre-foreclosure costs.

Multifamily

The table below presents the amortized cost basis of our multifamily held-for-investment loans, for which we have not elected 

the fair value option, by credit quality indicator, based on available data through the end of each period presented. These 

indicators involve significant management judgment and are defined as follows: 

n	 "Pass" is current and adequately protected by the borrower's current financial strength and debt service capacity; 

n	 "Special mention" has administrative issues that may affect future repayment prospects but does not have current credit 

weaknesses. In addition, this category generally includes loans in forbearance; 

n	 "Substandard" has a weakness that jeopardizes the timely full repayment; and 

n	 "Doubtful" has a weakness that makes collection or liquidation in full highly questionable and improbable based on existing 

conditions. 

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 3

Freddie Mac 1Q 2023 Form 10-Q 57
Table 3.7 - Amortized Cost Basis of Multifamily Held-for-Investment Loans by Credit Quality Indicator and Vintage

March 31, 2023

Year of Origination

(In millions) 2023 2022 2021 2020 2019 Prior Total

Revolving 

Loans

Category:

Pass $1,588 $18,854 $7,733 $6,479 $4,810 $3,660 $2,242 $45,366 

Special mention — — 39 73 190 17 — 319 

Substandard — — 78 75 27 199 — 379 

Doubtful — — — — — — — — 

Total $1,588 $18,854 $7,850 $6,627 $5,027 $3,876 $2,242 $46,064 

December 31, 2022

Year of Origination

(In millions) 2022 2021 2020 2019 2018 Prior Total

Revolving 

Loans

Category:

Pass $21,854 $7,638 $6,546 $4,784 $1,077 $2,646 $1,924 $46,469 

Special mention — 39 65 232 7 113 — 456 

Substandard — 1 3 27 7 131 — 169 

Doubtful — — — — — — — — 

Total $21,854 $7,678 $6,614 $5,043 $1,091 $2,890 $1,924 $47,094 

Past Due Status

The table below presents the amortized cost basis of our single-family and multifamily held-for-investment loans, for which we 

have not elected the fair value option, by payment status.

Table 3.8 - Amortized Cost Basis of Held-for-Investment Loans by Payment Status

March 31, 2023

(In millions) Current

One

Month

Past Due

Two

Months

Past Due

Three Months or

More Past Due,

or in Foreclosure(1) Total

Three Months or 

More Past Due, 

and Accruing 

Interest

Non-Accrual 

With No 

Allowance(2)

Single-Family:

20- and 30-year or more, amortizing 

fixed-rate $2,560,613 $16,017 $4,017 $12,020 $2,592,667 $3,053 $499 

 15-year or less, amortizing fixed-rate 361,524 1,131 214 578 363,447 157 7 

Adjustable-rate and other 28,650 279 75 342 29,346 28 59 

Total Single-Family 2,950,787 17,427 4,306 12,940 2,985,460 3,238 565 

Total Multifamily 46,008 13 2 41 46,064 — — 

Total Single-Family and Multifamily $2,996,795 $17,440 $4,308 $12,981 $3,031,524 $3,238 $565 

Referenced footnotes are included after the prior period table.

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 3

Freddie Mac 1Q 2023 Form 10-Q 58
December 31, 2022

(In millions) Current

One

Month

Past Due

Two

Months

Past Due

Three Months or

More Past Due,

or in Foreclosure(1) Total

Three Months or 

More Past Due, 

and Accruing 

Interest

Non-Accrual 

with No 

Allowance(2)

Single-Family:

20- and 30-year or more, amortizing 

fixed-rate $2,541,057 $19,820 $4,603 $12,358 $2,577,838 $3,432 $522 

15-year or less, amortizing fixed-rate 372,065 1,590 250 608 374,513 191 9 

Adjustable-rate and other 28,262 325 88 375 29,050 30 67 

Total Single-Family 2,941,384 21,735 4,941 13,341 2,981,401 3,653 598 

Total Multifamily 47,039 13 — 42 47,094 — 42 

Total Single-Family and Multifamily $2,988,423 $21,748 $4,941 $13,383 $3,028,495 $3,653 $640 

(1) Includes $1.9 billion and $1.6 billion of single-family loans that were in the process of foreclosure as of March 31, 2023 and December 31, 2022, respectively.

(2) Loans with no allowance for loan losses primarily represent those loans that were previously charged off and therefore the collateral value is sufficiently in excess of 

the amortized cost to result in recovery of the entire amortized cost basis if the property were foreclosed upon or otherwise subject to disposition. We exclude the 

amounts of allowance for credit losses on accrued interest receivable and advances of pre-foreclosure costs when determining whether a loan has an allowance for 

credit losses.

Loan Restructurings

Single-Family Loan Restructurings

We offer several types of restructurings to single-family borrowers that may result in a payment delay, interest rate reduction, 

term extension, or combination thereof. We do not offer principal forgiveness. 

For purposes of the disclosure related to single-family loan restructurings involving borrowers experiencing financial difficulty, 

we exclude loans that were held-for-sale either at the time of restructuring or at the period end. The table below presents the 

amortized cost basis of single-family held-for-investment loan restructurings involving borrowers experiencing financial difficulty 

that we entered into during the periods presented. The amortized cost basis of loans in trial period modification plans was $1.8 

billion and $3.1 billion as of March 31, 2023 and March 31, 2022, respectively. Most of these loans are 20- and 30-year or more, 

amortizing fixed-rate loans.

Table 3.9 - Single-Family Loan Restructurings Involving Borrowers Experiencing Financial Difficulty(1)

1Q 2023

(Dollars in millions)

Payment 

Delay(2)

Payment Delay 

and Term 

Extension

Payment Delay, 

Term Extension, 

and Interest Rate 

Reduction Total

Total as % of 

Class of 

Financing 

Receivable(3)

Single-Family:

20- and 30-year or more, amortizing fixed-rate $6,357 $1,037 $86 $7,480 0.3 %

15-year or less, amortizing fixed-rate 332 19 1 352 0.1 

Adjustable-rate and other 76 13 4 93 0.3 

Total Single-Family loan restructurings $6,765 $1,069 $91 $7,925 0.3 

1Q 2022

(Dollars in millions)

Payment 

Delay(2)

Payment Delay 

and Term 

Extension

Payment Delay, 

Term Extension, 

and Interest Rate 

Reduction Total

Total as % of 

Class of 

Financing 

Receivable(3)

Single-Family:

20- and 30-year or more, amortizing fixed-rate $9,133 $683 $2,948 $12,764 0.5 %

15-year or less, amortizing fixed-rate 596 15 55 666 0.2 

Adjustable-rate and other 212 15 78 305 1.1 

Total Single-Family loan restructurings $9,941 $713 $3,081 $13,735 0.5 

Referenced footnotes are on the next page.

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 3

Freddie Mac 1Q 2023 Form 10-Q 59
(1) Type of loan restructurings reflects the cumulative effects of the loan restructurings received during the period. Includes loan modifications in the period in which 

the borrower completes the trial period and the loan is permanently modified.

(2) Includes $2.7 billion and $5.1 billion related to payment deferral plans for 1Q 2023 and 1Q 2022, respectively. Also includes forbearance plans, repayment plans, 

and loan modifications that only involve payment delays.

(3) Based on the amortized cost basis as of period end, divided by the total period-end amortized cost basis of the corresponding financing receivable class of singlefamily held-for-investment loans.

The table below shows the financial effect of single-family held-for-investment loan restructurings involving borrowers 

experiencing financial difficulty that we entered into during the periods presented.

Table 3.10 – Financial Effects of Single-Family Loan Restructurings Involving Borrowers Experiencing Financial 

Difficulty(1)

1Q 2023

(Dollars in thousands)

Weighted-Average 

Interest Rate 

Reduction

Weighted-Average 

Months of Term 

Extension

Weighted-Average 

Payment Deferral or 

Principal 

Forbearance(2)

Single-Family:

20- and 30-year or more, amortizing fixed-rate 0.9 % 180 $16 

15-year or less, amortizing fixed-rate 0.4 354 16 

Adjustable-rate and other 2.0 206 19 

1Q 2022

(Dollars in thousands)

Weighted-Average 

Interest Rate 

Reduction

Weighted-Average 

Months of Term 

Extension

Weighted-Average 

Payment Deferral or 

Principal 

Forbearance(2)

Single-Family:

20- and 30-year or more, amortizing fixed-rate 1.6 % 186 $24 

15-year or less, amortizing fixed-rate 0.8 366 25 

Adjustable-rate and other 2.2 226 27 

(1) Averages are based on payment deferral plans and loan modifications completed during the periods presented. The financial effects of forbearance plans and 

repayment plans consist of a payment delay of between one and twelve months. In addition, the financial effect of a forbearance plan is included at the time the 

forbearance plan is completed if the borrower exits forbearance by entering into a payment deferral plan or loan modification.

(2) Primarily related to payment deferral plans. Amounts are based on non-interest-bearing principal balances on the restructured loans.

The following table provides the amortized cost basis of single-family held-for-investment loans that had a payment default (i.e., 

loans that became two months delinquent) during the periods presented and had been restructured within the previous 12 

months preceding the payment default, when the borrower was experiencing financial difficulty at the time of the restructuring. 

Since we adopted ASU 2022-02 prospectively, single-family held-for-investment loans that were restructured prior to January 

1, 2022, the date we adopted such guidance, have been excluded from the disclosures related to loan restructurings.

Table 3.11 - Subsequent Defaults of Single-Family Restructured Loans Involving Borrowers Experiencing Financial 

Difficulty(1)

1Q 2023

(In millions) Payment Delay

Payment Delay 

and Term 

Extension

Payment Delay, Term 

Extension, and Interest 

Rate Reduction Total

Single-Family:

20- and 30-year or more, amortizing fixed-rate $704 $175 $206 $1,085 

15-year or less, amortizing fixed-rate 32 — — 32 

Adjustable-rate and other 10 2 5 17 

Total Single-Family $746 $177 $211 $1,134 

Referenced footnote is included after the prior period table.

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 3

Freddie Mac 1Q 2023 Form 10-Q 60
1Q 2022

(In millions) Payment Delay

Payment Delay 

and Term 

Extension

Payment Delay, Term 

Extension, and Interest 

Rate Reduction Total

Single-Family:

20- and 30-year or more, amortizing fixed-rate $391 $7 $7 $405 

15-year or less, amortizing fixed-rate 28 — — 28 

Adjustable-rate and other 16 — — 16 

Total Single-Family $435 $7 $7 $449 

(1) Excludes forbearance plans and repayment plans as borrowers are typically past due based on the loan's original contractual terms at the time the borrowers enter 

into these plans.

The following table provides the single-family held-for-investment loan performance in the 12 months after a restructuring 

involving borrowers experiencing financial difficulty. While a single-family loan is in a forbearance plan or repayment plan, 

payments continue to be due based on the loan’s original contractual terms because the loan has not been permanently 

modified. As a result, we report single-family loans in forbearance plans and repayment plans as delinquent to the extent that 

payments are past due based on the loan’s original contractual terms. Loans that have been restructured by entering into a 

payment deferral plan or loan modification are reported as delinquent to the extent that payments are past due based on the 

loan's restructured terms.

Table 3.12 - Amortized Cost Basis of Single-Family Restructured Loans Involving Borrowers Experiencing Financial 

Difficulty by Payment Status

March 31, 2023

(In millions) Current

One Month Past 

Due

Two Months 

Past Due

Three Months 

or More Past 

Due Total

Single-Family:

20- and 30-year or more, amortizing fixed-rate $16,491 $2,381 $1,572 $6,642 $27,086 

15-year or less, amortizing fixed-rate 670 98 71 310 1,149 

Adjustable-rate and other 227 33 17 115 392 

Total Single-Family $17,388 $2,512 $1,660 $7,067 $28,627 

March 31, 2022

(In millions) Current

One Month Past 

Due

Two Months 

Past Due

Three Months 

or More Past 

Due Total

Single-Family:

20- and 30-year or more, amortizing fixed-rate $7,887 $1,486 $1,359 $2,032 $12,764 

15-year or less, amortizing fixed-rate 380 89 88 109 666 

Adjustable-rate and other 191 19 16 79 305 

Total Single-Family $8,458 $1,594 $1,463 $2,220 $13,735 

Non-Cash Investing and Financing Activities

During 1Q 2023 and 1Q 2022, we acquired $42.5 billion and $153.3 billion, respectively, of loans held-for-investment in 

exchange for the issuance of debt of consolidated trusts in guarantor swap transactions. We received approximately $21.3 

billion and $61.5 billion of loans held-for-investment from sellers during 1Q 2023 and 1Q 2022, respectively, to satisfy advances 

to lenders that were recorded in other assets on our condensed consolidated balance sheets.

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 3

Freddie Mac 1Q 2023 Form 10-Q 61
NOTE 4 

Guarantees and Other Off-Balance Sheet Credit Exposures

Guarantee Activities

The table below shows information about our mortgage-related guarantees and guarantees of Fannie Mae securities, including 

the UPB of the loans or securities underlying the guarantee, the maximum potential amount of future payments that we could 

be required to make under the guarantee, the liability we have recognized on our condensed consolidated balance sheets for 

the guarantee, and the maximum remaining term of the guarantee. This table does not include our unrecognized guarantees, 

such as guarantees to consolidated VIEs or to resecuritization trusts that do not expose us to incremental credit risk. We do not 

believe the potential amount of future payments we could be required to make is representative of the actual payments we will 

be required to make or the actual loss we are likely to incur, based on our historical loss experience and after consideration of 

proceeds from related collateral liquidation, including possible recoveries under credit enhancements.

Table 4.1 - Financial Guarantees

March 31, 2023

(Dollars in millions, terms in years) UPB Maximum Exposure

Recognized 

Liability(1)

Maximum Remaining 

Term

Single-Family mortgage-related guarantees:

Nonconsolidated securitization products(2) $31,130 $25,329 $385 40

Other mortgage-related guarantees 9,290 9,290 192 29

Total Single-Family mortgage-related guarantees 40,420 34,619 577 

Multifamily mortgage-related guarantees:

Nonconsolidated securitization products(2)(3) 357,747 316,606 4,751 37

Other mortgage-related guarantees 10,684 10,684 378 36

Total Multifamily mortgage-related guarantees 368,431 327,290 5,129 

Guarantees of Fannie Mae securities(4) 116,807 116,807 — 39

Other 166 440 — 30

December 31, 2022

(Dollars in millions, terms in years) UPB Maximum Exposure

Recognized 

Liability(1)

Maximum Remaining 

Term

Single-Family mortgage-related guarantees:

Nonconsolidated securitization products(2) $31,604 $25,772 $391 40

Other mortgage-related guarantees 9,476 9,476 203 29

Total Single-Family mortgage-related guarantees 41,080 35,248 594 

Multifamily mortgage-related guarantees:

Nonconsolidated securitization products(2)(3) 360,869 319,117 4,889 37

Other mortgage-related guarantees 10,510 10,510 379 36

Total Multifamily mortgage-related guarantees 371,379 329,627 5,268 

Guarantees of Fannie Mae securities(4) 119,267 119,267 — 39

Other 185 435 — 29

(1) Excludes allowance for credit losses on off-balance sheet credit exposures. See Note 5 for additional information on our allowance for credit losses on off-balance 

sheet credit exposures.

(2) Maximum exposure is based on remaining UPB of the guaranteed securities issued by the VIE. 

(3) Includes UPB of $0.7 billion and $0.4 billion as of March 31, 2023 and December 31, 2022, respectively, related to VIEs in which our interest would no longer 

absorb significant variability as the guaranteed securities have completely paid off. In addition, includes guarantees that are accounted for as derivatives with UPB of 

$2.1 billion as of both March 31, 2023 and December 31, 2022.

(4) Excludes $0.1 billion as of both March 31, 2023 and December 31, 2022, of Fannie Mae securities that we have guaranteed that are included in resecuritization 

trusts that we have consolidated as we own all of the outstanding securities issued by the VIE.

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 4

Freddie Mac 1Q 2023 Form 10-Q 62
The table below shows the payment status of the mortgage loans underlying our mortgage-related guarantees.

Table 4.2 – UPB of Loans Underlying Our Mortgage-Related Guarantees by Payment Status 

March 31, 2023

(In millions) Current

One

Month

Past Due

Two

Months

Past Due

Three Months or

More Past Due,

or in Foreclosure Total

Single-Family $35,753 $2,075 $729 $1,863 $40,420 

Multifamily 367,681 251 21 478 368,431 

Total $403,434 $2,326 $750 $2,341 $408,851 

December 31, 2022

(In millions) Current

One

Month

Past Due

Two

Months

Past Due

Three Months or

More Past Due,

or in Foreclosure Total

Single-Family $36,241 $2,072 $748 $2,019 $41,080 

Multifamily 370,911 23 12 433 371,379 

Total $407,152 $2,095 $760 $2,452 $412,459 

Other Off-Balance Sheet Credit Exposures

In addition to our guarantees, we enter into other agreements that expose us to off-balance sheet credit risk. These agreements 

may require us to transfer cash before or upon settlement of our contractual obligation. We recognize an allowance for credit 

losses for those agreements not measured at fair value or otherwise recognized in the financial statements. Most of these 

commitments expire in less than one year. See Note 5 for additional discussion of our allowance for credit losses on our offbalance sheet credit exposures. The table below shows our other off-balance sheet credit exposures.

Table 4.3 – Other Off-Balance Sheet Credit Exposures

(In millions) March 31, 2023 December 31, 2022

Mortgage loan purchase commitments(1) $11,249 $9,609 

Other commitments(2) 34,923 22,293 

Total $46,172 $31,902 

(1) Includes $2.1 billion and $0.5 billion of commitments for which we have elected the fair value option as of March 31, 2023 and December 31, 2022, respectively. 

Excludes mortgage loan purchase commitments accounted for as derivative instruments. See Note 8 for additional information on commitments accounted for as 

derivative instruments.

(2) Consists of unfunded portion of revolving lines of credit, liquidity guarantees, and other commitments.

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 4

Freddie Mac 1Q 2023 Form 10-Q 63
NOTE 5

Allowance for Credit Losses

The table below summarizes changes in our allowance for credit losses.

Table 5.1 - Details of the Allowance for Credit Losses 

1Q 2023 1Q 2022

 (In millions) Single-Family Multifamily Total Single-Family Multifamily Total

Beginning balance $7,746 $147 $7,893 $5,440 $78 $5,518 

Provision (benefit) for credit losses 318 77 395 (831) (6) (837) 

Charge-offs (90) — (90) (173) — (173) 

Recoveries collected 32 — 32 52 — 52 

Other(1) 91 — 91 361 — 361 

Ending balance $8,097 $224 $8,321 $4,849 $72 $4,921 

Components of the ending balance of the allowance for credit losses:

Mortgage loans held-for-investment $7,675 $160 $7,835 $4,358 $31 $4,389 

Other(2) 422 64 486 491 41 532 

Total ending balance $8,097 $224 $8,321 $4,849 $72 $4,921 

(1) Primarily includes capitalization of past due interest related to non-accrual loans that receive payment deferral plans and loan modifications.

(2) Includes allowance for credit losses related to advances of pre-foreclosure costs, accrued interest receivable, and off-balance sheet credit exposures.

n 1Q 2023 vs. 1Q 2022 - Provision for credit losses for 1Q 2023 was driven by a modest credit reserve build primarily 

attributable to new acquisitions in Single-Family. The benefit for credit losses for 1Q 2022 was driven by a credit reserve 

release due to higher estimated house prices and an improvement in forecasted economic conditions.

In addition, charge-offs decreased year-over-year primarily due to a decrease in charge-offs of accrued interest receivable 

during 1Q 2023.

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 5

Freddie Mac 1Q 2023 Form 10-Q 64
NOTE 6

Investment Securities

The table below summarizes the fair values of our investments in debt securities by classification.

Table 6.1 - Investment Securities

(In millions) March 31, 2023 December 31, 2022

Trading securities $31,343 $32,167 

Available-for-sale securities 6,369 6,534 

Total fair value of investment securities $37,712 $38,701 

Trading Securities 

The table below presents the fair values of our trading securities by major security type. Our non-mortgage-related securities 

primarily consist of investments in U.S. Treasury securities. 

Table 6.2 - Trading Securities

(In millions) March 31, 2023 December 31, 2022

Mortgage-related securities $9,074 $8,334 

Non-mortgage-related securities 22,269 23,833 

Total fair value of trading securities $31,343 $32,167 

For trading securities held at March 31, 2023 and March 31, 2022, we recorded net unrealized losses of $0.2 billion and

$1.0 billion during 1Q 2023 and 1Q 2022, respectively.

Available-for-Sale Securities 

The table below provides details of the securities classified as available-for-sale on our condensed consolidated balance 

sheets. At March 31, 2023 and December 31, 2022, all available-for-sale securities were mortgage-related securities.

Table 6.3 - Available-for-Sale Securities

March 31, 2023

Amortized

Cost

Basis

Gross Unrealized 

Gains in Other 

Comprehensive 

Income

Gross Unrealized

Losses in Other 

Comprehensive 

Income Fair Value

Accrued Interest 

(In millions) Receivable

Agency mortgage-related securities $6,006 $14 ($238) $5,782 $13 

Other mortgage-related securities 408 182 (3) 587 3 

Total available-for-sale securities $6,414 $196 ($241) $6,369 $16 

December 31, 2022

Amortized

Cost

Basis

Gross Unrealized 

Gains in Other 

Comprehensive 

Income

Gross Unrealized

Losses in Other 

Comprehensive 

Income Fair Value

Accrued Interest 

(In millions) Receivable

Agency mortgage-related securities $6,215 $6 ($301) $5,920 $12 

Other mortgage-related securities 429 188 (3) 614 3 

Total available-for-sale securities $6,644 $194 ($304) $6,534 $15 

The fair value of our available-for-sale securities held at March 31, 2023 scheduled to contractually mature after ten years was 

$1.5 billion, with an additional $4.0 billion scheduled to contractually mature after five years through ten years.

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 6

Freddie Mac 1Q 2023 Form 10-Q 65
The table below presents available-for-sale securities in a gross unrealized loss position and whether such securities have been 

in an unrealized loss position for less than 12 months, or 12 months or greater.

Table 6.4 - Available-for-Sale Securities in a Gross Unrealized Loss Position

March 31, 2023

Less than 12 Months 12 Months or Greater

(In millions) Fair Value

Gross 

Unrealized 

Losses Fair Value

Gross 

Unrealized 

Losses

Agency mortgage-related securities $3,038 ($80) $1,696 ($158) 

Other mortgage-related securities 28 (2) 13 (1) 

Total available-for-sale securities in a gross unrealized loss position $3,066 ($82) $1,709 ($159) 

December 31, 2022

Less than 12 Months 12 Months or Greater

(In millions) Fair Value

Gross 

Unrealized 

Losses Fair Value

Gross 

Unrealized 

Losses

Agency mortgage-related securities $5,086 ($253) $325 ($48) 

Other mortgage-related securities 46 (3) 5 — 

Total available-for-sale securities in a gross unrealized loss position $5,132 ($256) $330 ($48) 

At March 31, 2023, the gross unrealized losses relate to 187 securities. 

The table below summarizes the gross realized gains and gross realized losses from sales of available-for-sale securities. 

Table 6.5 - Gross Realized Gains and Gross Realized Losses from Sales of Available-for-Sale Securities

(In millions) 1Q 2023 1Q 2022

Gross realized gains $2 $— 

Gross realized losses (2) (1) 

Net realized gains $— ($1) 

Non-Cash Investing and Financing Activities

During 1Q 2023 and 1Q 2022, we recognized $0.6 billion and $3.1 billion, respectively, of investment securities in exchange for 

the issuance of debt of consolidated trusts through partial sales of commingled single-class resecuritization products that were 

previously consolidated.

During 1Q 2023 and 1Q 2022, we derecognized $1.4 billion and $1.5 billion of mortgage-related securities and debt of 

consolidated trusts where we were no longer deemed the primary beneficiary.

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 6

Freddie Mac 1Q 2023 Form 10-Q 66
NOTE 7

Debt

The table below summarizes the balances of total debt on our condensed consolidated balance sheets.

Table 7.1 - Total Debt

(In millions) March 31, 2023 December 31, 2022

Debt of consolidated trusts $2,987,050 $2,979,070 

Debt of Freddie Mac:

Short-term debt 8,681 7,712 

Long-term debt 171,783 159,050 

Total debt of Freddie Mac 180,464 166,762 

Total debt $3,167,514 $3,145,832 

As of March 31, 2023, our aggregate indebtedness pursuant to the Purchase Agreement was $190.1 billion, which was below 

the current $270.0 billion debt cap limit. Our aggregate indebtedness calculation primarily includes the par value of short- and 

long-term debt.

Debt of Consolidated Trusts 

The table below summarizes the debt of consolidated trusts based on underlying loan product type.

Table 7.2 - Debt of Consolidated Trusts

March 31, 2023 December 31, 2022

(Dollars in millions)

Contractual

Maturity UPB

Carrying 

Amount(1)

Weighted

Average

Coupon(2)

Contractual

Maturity UPB

Carrying 

Amount(1)

Weighted

Average

Coupon(2)

Single-Family:

20-and 30-year or more, fixed-rate 2023 - 2061 $2,522,559 $2,564,677 2.82 % 2023 - 2061 $2,507,235 $2,550,137 2.76 %

15-year or less, fixed-rate 2023 - 2038 357,248 363,390 2.15 2023 - 2038 367,844 374,339 2.14 

Adjustable-rate and other 2023 - 2053 23,834 24,402 3.29 2023 - 2053 23,561 24,153 3.04 

Total Single-Family 2,903,641 2,952,469 2,898,640 2,948,629 

Multifamily 2024 - 2053 35,080 34,581 2.88 2023 - 2052 30,927 30,441 2.66 

Total debt of consolidated trusts $2,938,721 $2,987,050 $2,929,567 $2,979,070 

(1) Includes $2.1 billion and $1.9 billion as of March 31, 2023 and December 31, 2022, respectively, of debt of consolidated trusts that represents the fair value of debt 

for which the fair value option was elected.

(2) The effective interest rate for debt of consolidated trusts was 2.47% and 2.39% as of March 31, 2023 and December 31, 2022, respectively.

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 7

Freddie Mac 1Q 2023 Form 10-Q 67
Short-Term Debt

The table below summarizes the balances and effective interest rates for short-term debt.

Table 7.3 - Short-Term Debt

March 31, 2023 December 31, 2022

(Dollars in millions) Par Value

Carrying 

Amount

Weighted

Average

Effective Rate Par Value

Carrying 

Amount

Weighted

Average

Effective Rate

Short-term debt:

Discount notes and Reference Bills® $8,051 $8,016 4.56 % $6,826 $6,822 3.71 %

Medium-term notes 665 665 1.91 890 890 1.81 

Securities sold under agreements to repurchase 4,652 4,652 4.58 11,991 11,991 3.86 

Offsetting arrangements(1) (4,652) (4,652) (11,991) (11,991) 

Total short-term debt $8,716 $8,681 4.36 % $7,716 $7,712 3.49 %

(1) We offset payables related to securities sold under agreements to repurchase against receivables related to securities purchased under agreements to resell on our 

condensed consolidated balance sheets, when such amounts meet the conditions for offsetting in the accounting guidance. 

Long-Term Debt

The table below summarizes our long-term debt.

Table 7.4 - Long-Term Debt

March 31, 2023 December 31, 2022

(Dollars in millions)

Contractual 

Maturity Par Value

Carrying 

Amount(1)

Weighted

Average

Effective 

Rate(2)

Contractual 

Maturity Par Value

Carrying 

Amount(1)

Weighted

Average

Effective 

Rate(2)

Long-term debt:

Fixed-rate:

Medium-term notes — callable 2023 - 2050 $115,743 $115,680 2.35 % 2023 - 2050 $103,584 $103,528 1.96 %

Medium-term notes — non-callable 2023 - 2028 2,481 2,481 0.78 2023 - 2028 2,747 2,747 0.73 

Reference Notes securities — noncallable 2023 - 2032 49,801 49,839 2.04 2023 - 2032 49,801 49,832 1.76 

SCR debt notes 2031 - 2032 86 86 13.00 2031 - 2032 90 93 13.00 

Variable-rate:

Medium-term notes — callable 2023 - 2028 4,941 4,939 4.04 2023 - 2027 4,691 4,689 3.95 

Medium-term notes — non-callable 2026 47 47 8.10 2026 47 47 8.10 

STACR 2023 - 2042 3,449 3,342 9.40 2023 - 2042 4,562 4,448 8.79 

Zero-coupon:

Medium-term notes — non-callable 2024 - 2039 4,836 2,955 6.12 2023 - 2039 4,841 2,913 6.11 

Other 2047 - 2053 — 128 0.85 2047 - 2052 — 137 0.82 

Hedging-related basis adjustments N/A (7,714) N/A (9,384) 

Total long-term debt $181,384 $171,783 2.49 % $170,363 $159,050 2.20 %

(1) Represents par value, net of associated discounts or premiums and issuance cost. Includes $0.7 billion and $1.1 billion at March 31, 2023 and December 31, 2022, 

respectively, of long-term debt that represents the fair value of debt for which the fair value option was elected.

(2) Based on carrying amount.

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 7

Freddie Mac 1Q 2023 Form 10-Q 68
The table below summarizes the contractual maturities of long-term debt.

Table 7.5 - Contractual Maturities of Long-Term Debt

March 31, 2023

(In millions) Amounts

Annual Maturities

Long-term debt (excluding STACR and SCR debt notes):

2024 $40,271 

2025 33,340 

2026 58,018 

2027 10,097 

2028 7,793 

Thereafter 28,330 

Debt of consolidated trusts, STACR, and SCR debt notes(1) 2,942,256 

Total 3,120,105 

Net discounts, premiums, debt issuance costs, hedge-related, and other basis adjustments(2) 38,728 

Total debt of consolidated trusts, STACR, SCR, and long-term debt $3,158,833 

(1) Contractual maturities of these debt securities are not presented because they are subject to prepayment risk, as their payments are based upon the performance of 

a pool of mortgage assets that may be prepaid by the related mortgage borrower at any time generally without penalty.

(2) Other basis adjustments primarily represent changes in fair value on debt where we have elected the fair value option.

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 7

Freddie Mac 1Q 2023 Form 10-Q 69
NOTE 8

Derivatives

We analyze the interest-rate sensitivity of financial assets and liabilities across a variety of interest-rate scenarios based on 

market prices, models, and economics. We use derivatives primarily to hedge interest-rate sensitivity mismatches between our 

financial assets and liabilities. We designate certain derivatives as hedging instruments in qualifying hedge accounting 

relationships. Interest-rate risk management derivatives that are not designated in qualifying hedge accounting relationships are 

economic hedges of financial instruments measured at fair value on a recurring basis or of other transactions or instruments 

that expose us to interest-rate risk. 

We apply fair value hedge accounting to certain single-family mortgage loans and certain issuances of debt where we hedge 

the changes in fair value of these items attributable to the designated benchmark interest rate, using interest-rate swaps.

Derivative Assets and Liabilities at Fair Value

The table below presents the notional value and fair value of derivatives reported on our condensed consolidated balance 

sheets. 

Table 8.1 - Derivative Assets and Liabilities at Fair Value

March 31, 2023 December 31, 2022

Notional or

Contractual

Amount

Derivatives at Fair Value Notional or

Contractual

Amount

Derivatives at Fair Value

(In millions) Assets Liabilities Assets Liabilities

Not designated as hedges

Interest-rate risk management derivatives:

Swaps $445,598 $1,427 ($604) $480,824 $1,762 ($526) 

Written options 49,745 — (1,550) 46,101 — (1,857) 

Purchased options(1) 87,065 3,703 — 92,010 4,302 — 

Futures 134,295 — — 182,330 — — 

Total interest-rate risk management derivatives 716,703 5,130 (2,154) 801,265 6,064 (2,383) 

Mortgage commitment derivatives 39,505 19 (6) 29,354 12 (11) 

CRT-related derivatives(2) 31,888 — (110) 31,647 — (55) 

Other 14,090 3 (539) 14,426 2 (624) 

Total derivatives not designated as hedges 802,186 5,152 (2,809) 876,692 6,078 (3,073) 

Designated as fair value hedges

Interest-rate risk management derivatives:

Swaps 189,974 328 (6,648) 181,298 321 (7,847) 

Total derivatives designated as fair value hedges 189,974 328 (6,648) 181,298 321 (7,847) 

Receivables (payables) 1 (214) 35 (25) 

Netting adjustments(3) (5,090) 8,778 (6,127) 10,187 

Total derivative portfolio, net $992,160 $391 ($893) $1,057,990 $307 ($758) 

(1) Includes swaptions on credit indices with a notional or contractual amount of $6.9 billion and $10.1 billion at March 31, 2023 and December 31, 2022, respectively, 

and a fair value of $2.0 million as of both March 31, 2023 and December 31, 2022. 

(2) Includes derivative instruments related to CRT transactions that are considered freestanding credit enhancements.

(3) Represents counterparty netting and cash collateral netting.

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 8 

Freddie Mac 1Q 2023 Form 10-Q 70
Gains and Losses on Derivatives

The table below presents the gains and losses on derivatives not designated in qualifying hedge relationships. These amounts 

are reported on our condensed consolidated statements of income as investment gains, net.

Table 8.2 - Gains and Losses on Derivatives(1)

(In millions) 1Q 2023 1Q 2022

Not designated as hedges

Interest-rate risk management derivatives:

Swaps $29 $390 

Written options 195 (364) 

Purchased options (504) 717 

Futures (307) 868 

Total interest-rate risk management derivatives fair value gains (losses) (587) 1,611 

Mortgage commitment derivatives (80) 1,839 

CRT-related derivatives(2) (76) 12 

Other 61 (39) 

Total derivatives not designated as hedges fair value gains (losses) ($682) $3,423 

(1) Accrual of periodic cash settlements on swaps is included in the respective gain (loss) of the derivative and is no longer presented separately. Certain prior period 

amounts have been reclassified to conform to the current period presentation.

(2) Includes derivative instruments related to CRT transactions that are considered freestanding credit enhancements. 

Fair Value Hedges 

The table below presents the effects of fair value hedge accounting by condensed consolidated statements of income line item, 

including the gains and losses on derivatives and hedged items designated in qualifying hedge relationships and other 

components due to the application of hedge accounting.

Table 8.3 - Gains and Losses on Fair Value Hedges

1Q 2023 1Q 2022

(In millions) Interest Income Interest Expense Interest Income Interest Expense 

Total amounts of income and expense line items presented in 

our condensed consolidated statements of income in which the 

effects of fair value hedges are recorded: $24,987 ($20,486) $17,740 ($13,636) 

Interest contracts on mortgage loans held-for-investment:

Gain (loss) on fair value hedging relationships:

Hedged items 1,123 — (2,627) — 

Derivatives designated as hedging instruments (1,073) — 2,055 — 

Interest accruals on hedging instruments 211 — (267) — 

Discontinued hedge related basis adjustments amortization 31 — (124) — 

Interest contracts on debt:

Gain (loss) on fair value hedging relationships:

Hedged items — (1,535) — 3,861 

Derivatives designated as hedging instruments — 1,534 — (3,896) 

Interest accruals on hedging instruments — (1,051) — 144 

Discontinued hedge related basis adjustment amortization — (38) — 10 

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 8 

Freddie Mac 1Q 2023 Form 10-Q 71
The table below presents the cumulative basis adjustments and the carrying amounts of the hedged item by its respective 

balance sheet line item.

Table 8.4 - Cumulative Basis Adjustments Due to Fair Value Hedging

March 31, 2023

Carrying 

Amount 

Assets / 

(Liabilities)

Cumulative Amount of Fair Value Hedging Basis 

Adjustment Included in the Carrying Amount

Closed Portfolio Under the 

Portfolio Layer Method

(In millions) Total

Under the 

Portfolio Layer 

Method

Discontinued - 

Hedge Related

Total Amount 

by Amortized 

Cost Basis

Designated 

Amount by 

UPB

Mortgage loans held-for-investment $1,126,852 ($1,967) ($678) ($1,289) $77,275 $11,516 

Mortgage loans held-for-sale 56 1 — 1 — — 

Debt (156,649) 7,714 — 187 — — 

December 31, 2022

Carrying 

Amount 

Assets / 

(Liabilities)

Cumulative Amount of Fair Value Hedging Basis 

Adjustment Included in the Carrying Amount

Closed Portfolio Under the 

Portfolio Layer Method

(In millions) Total

Under the 

Portfolio Layer 

Method

Discontinued - 

Hedge Related

Total Amount 

by Amortized 

Cost Basis

Designated 

Amount by 

UPB

Mortgage loans held-for-investment $1,108,098 ($3,122) ($959) ($2,163) $79,070 $11,516 

Mortgage loans held-for-sale 67 1 — 1 — — 

Debt (142,511) 9,384 — 123 — — 

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 8 

Freddie Mac 1Q 2023 Form 10-Q 72
NOTE 9

Collateralized Agreements and Offsetting Arrangements

Offsetting of Financial Assets and Liabilities

The table below presents offsetting and collateral information related to derivatives, securities purchased under agreements to 

resell, and securities sold under agreements to repurchase which are subject to enforceable master netting agreements or 

similar arrangements.

Table 9.1 - Offsetting and Collateral Information of Financial Assets and Liabilities

March 31, 2023

Gross

Amount

Recognized

Amount 

Offset in the Condensed

Consolidated

Balance Sheets

Net Amount

Presented in the 

Condensed 

Consolidated

Balance Sheets

Gross Amount

Not Offset in the 

Condensed  

Consolidated

Balance 

Sheets(2)

Net

(In millions) Amount

Counterparty 

Netting

Cash 

Collateral 

Netting(1)

Assets:

Derivatives:

OTC derivatives $5,459 ($4,052) ($1,038) $369 ($180) $189 

Cleared and exchange-traded derivatives — — — — — — 

Mortgage commitment derivatives 19 — — 19 — 19 

Other 3 — — 3 — 3 

Total derivatives 5,481 (4,052) (1,038) 391 (180) 211 

Securities purchased under agreements to resell 112,688 (4,652) — 108,036 (108,036) — 

Total $118,169 ($8,704) ($1,038) $108,427 ($108,216) $211 

Liabilities:

Derivatives:

OTC derivatives ($8,790) $4,052 $4,669 ($69) $26 ($43) 

Cleared and exchange-traded derivatives (199) — 57 (142) 142 — 

Mortgage commitment derivatives (33) — — (33) — (33) 

Other (649) — — (649) — (649) 

Total derivatives (9,671) 4,052 4,726 (893) 168 (725) 

Securities sold under agreements to repurchase (4,652) 4,652 — — — — 

Total ($14,323) $8,704 $4,726 ($893) $168 ($725) 

 Referenced footnotes are included after the next table.

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 9

Freddie Mac 1Q 2023 Form 10-Q 73
December 31, 2022

Gross

Amount

Recognized

Amount 

Offset in the Condensed

Consolidated

Balance Sheets Net Amount

Presented in the 

Condensed 

Consolidated

Balance Sheets

Gross Amount

Not Offset in the 

Condensed  

Consolidated

Balance 

Sheets(2)

Net

(In millions) Amount

Counterparty 

Netting

Cash 

Collateral 

Netting(1)

Assets:

Derivatives:

OTC derivatives $6,385 ($4,468) ($1,681) $236 ($214) $22 

Cleared and exchange-traded derivatives 28 — 22 50 — 50 

Mortgage commitment derivatives 19 — — 19 (4) 15 

Other 2 — — 2 — 2 

Total derivatives 6,434 (4,468) (1,659) 307 (218) 89 

Securities purchased under agreements to resell 99,286 (11,991) — 87,295 (87,295) — 

Total $105,720 ($16,459) ($1,659) $87,602 ($87,513) $89 

Liabilities:

Derivatives:

OTC derivatives ($10,230) $4,468 $5,702 ($60) $23 ($37) 

Cleared and exchange-traded derivatives (25) — 17 (8) 8 — 

Mortgage commitment derivatives (11) — — (11) — (11) 

Other (679) — — (679) — (679) 

Total derivatives (10,945) 4,468 5,719 (758) 31 (727) 

Securities sold under agreements to repurchase (11,991) 11,991 — — — — 

Total ($22,936) $16,459 $5,719 ($758) $31 ($727) 

(1) Excess cash collateral held is presented as a derivative liability, while excess cash collateral posted is presented as a derivative asset.

(2) Does not include the fair value amount of non-cash collateral posted or held that exceeds the associated net asset or liability, netted by counterparty, presented on 

the condensed consolidated balance sheets. For securities purchased under agreements to resell, includes $112.6 billion and $54.7 billion of collateral that we had 

the right to repledge as of March 31, 2023 and December 31, 2022, respectively. We repledged less than $0.1 billion of collateral as of both March 31, 2023 and 

December 31, 2022.

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 9

Freddie Mac 1Q 2023 Form 10-Q 74
Collateral Pledged

The table below summarizes the carrying value of the collateral pledged by us and recorded on our condensed consolidated 

balance sheets for derivatives and collateralized borrowing transactions, including securities that the secured party may 

repledge.

Table 9.2 - Collateral in the Form of Securities Pledged 

March 31, 2023

(In millions) Derivatives

Securities Sold 

Under 

Agreements to 

Repurchase Other(1) Total

Debt of consolidated trusts(2) $— $— $183 $183 

Trading securities 2,351 4,619 2,056 9,026 

Total securities pledged $2,351 $4,619 $2,239 $9,209 

December 31, 2022

(In millions) Derivatives

Securities Sold 

Under 

Agreements to 

Repurchase Other(1) Total

Trading securities $1,533 $2,910 $1,347 $5,790 

Other assets — 6,543 — 6,543 

Total securities pledged $1,533 $9,453 $1,347 $12,333 

(1) Includes other collateralized borrowings and collateral related to transactions with certain clearinghouses.

(2) Represents debt of consolidated trusts held by us in our mortgage-related investments portfolio which is recorded as a reduction to debt of consolidated trusts on 

our condensed consolidated balance sheets.

The table below presents the remaining contractual maturity of our gross obligations for securities sold under agreements to 

repurchase. The collateral for such obligations consisted primarily of U.S. Treasury securities.

Table 9.3 - Remaining Contractual Maturity

March 31, 2023

(In millions)

Overnight and 

Continuous 30 Days or Less

After 30 Days 

Through 90 Days

Greater Than 90 

Days Total

Securities sold under agreements to repurchase $— $1,165 $3,487 $— $4,652 

December 31, 2022

(In millions)

Overnight and 

Continuous 30 Days or Less

After 30 Days 

Through 90 Days

Greater Than 90 

Days Total

Securities sold under agreements to repurchase $— $11,991 $— $— $11,991 

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 9

Freddie Mac 1Q 2023 Form 10-Q 75
NOTE 10

Net Interest Income

The table below presents the components of net interest income per our condensed consolidated statements of income and 

comprehensive income.

Table 10.1 - Components of Net Interest Income

(In millions) 1Q 2023 1Q 2022

Interest income:

Mortgage loans $23,304 $17,310 

Investment securities 316 384 

Other 1,367 46 

Total interest income 24,987 17,740 

Interest expense:

Debt of consolidated trusts (18,261) (13,249) 

Debt of Freddie Mac:

Short-term debt (154) — 

Long-term debt (2,071) (387) 

Total interest expense (20,486) (13,636) 

Net interest income 4,501 4,104 

(Provision) benefit for credit losses (395) 837 

Net interest income after (provision) benefit for credit losses $4,106 $4,941 

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 10

Freddie Mac 1Q 2023 Form 10-Q 76
NOTE 11

Segment Reporting

As shown in the table below, we have two reportable segments, Single-Family and Multifamily. 

Segment Description

Single-Family 

Reflects results from our purchase, securitization, and guarantee of single-family loans, our investments in single-family 

loans and mortgage-related securities, the management of Single-Family mortgage credit risk and market risk, and any 

results of our treasury function that are not allocated to each segment.

Multifamily Reflects results from our purchase, securitization, and guarantee of multifamily loans, our investments in multifamily loans 

and mortgage-related securities, and the management of Multifamily mortgage credit risk and market risk.

Segment Results

The table below presents the financial results for our Single-Family and Multifamily segments.

Table 11.1 - Segment Financial Results 

1Q 2023 1Q 2022

(In millions) Single-Family Multifamily Total Single-Family Multifamily Total

Net interest income $4,296 $205 $4,501 $3,806 $298 $4,104 

Non-interest income 

Guarantee income 32 434 466 30 40 70 

Investment gains, net (179) (46) (225) 1,252 261 1,513 

Other income 54 31 85 126 33 159 

Non-interest income (93) 419 326 1,408 334 1,742 

Net revenues 4,203 624 4,827 5,214 632 5,846 

(Provision) benefit for credit losses (318) (77) (395) 831 6 837 

Non-interest expense (1,783) (149) (1,932) (1,778) (154) (1,932) 

Income before income tax expense 2,102 398 2,500 4,267 484 4,751 

Income tax expense (425) (80) (505) (856) (97) (953) 

Net income 1,677 318 1,995 3,411 387 3,798 

Other comprehensive income (loss), net 

of taxes and reclassification adjustments (1) 55 54 (12) (108) (120) 

Comprehensive income $1,676 $373 $2,049 $3,399 $279 $3,678 

The table below presents total assets for our Single-Family and Multifamily segments.

Table 11.2 - Segment Assets

(In millions) March 31, 2023 December 31, 2022

Single-Family $2,988,635 $2,986,045 

Multifamily 426,039 429,302 

Total segment assets 3,414,674 3,415,347 

Reconciling items(1) (189,694) (207,014) 

Total assets per condensed consolidated balance sheets $3,224,980 $3,208,333 

(1) Reconciling items include assets in our mortgage portfolio that are not recognized on our condensed consolidated balance sheets and assets recognized on our 

condensed consolidated balance sheets that are not allocated to the reportable segments. 

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 11

Freddie Mac 1Q 2023 Form 10-Q 77
NOTE 12

Concentration of Credit and Other Risks

Single-Family Mortgage Portfolio

The table below summarizes the concentration by geographic area of our Single-Family mortgage portfolio. See Note 2, Note 

3, and Note 5 for more information about credit risk associated with single-family loans that we hold or guarantee.

Table 12.1 - Concentration of Credit Risk of Our Single-Family Mortgage Portfolio

March 31, 2023 December 31, 2022

(Dollars in millions) Portfolio UPB(1) % of Portfolio SDQ Rate Portfolio UPB(1) % of Portfolio SDQ Rate

Region:(2)

West $905,823 30 % 0.46 % $906,123 30 % 0.49 %

Northeast 694,781 23 0.76 695,944 23 0.82 

North Central 435,435 15 0.61 436,294 15 0.65 

Southeast 514,825 17 0.67 512,495 17 0.73 

Southwest 437,497 15 0.58 434,907 15 0.63 

Total $2,988,361 100 % 0.62 $2,985,763 100 % 0.66 

State:

California $515,908 17 % 0.47 $516,891 17 % 0.51 

Texas 203,128 7 0.58 200,807 7 0.64 

Florida 192,552 6 0.78 191,009 6 0.84 

New York 130,010 4 1.08 129,935 4 1.16 

Illinois 112,289 4 0.83 112,784 4 0.90 

All other 1,834,474 62 0.58 1,834,337 62 0.63 

Total $2,988,361 100 % 0.62 $2,985,763 100 % 0.66 

(1) Excludes UPB of loans underlying certain securitization products for which data was not available.

(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); North Central (IL, IN, IA, 

MI, MN, ND, OH, SD, WI); Southeast (AL, FL, GA, KY, MS, NC, PR, SC, TN, VI); Southwest (AR, CO, KS, LA, MO, NE, NM, OK, TX, WY).

Multifamily Mortgage Portfolio

The table below summarizes the concentration by geographic area of our Multifamily mortgage portfolio. See Note 2, Note 3, 

Note 4, and Note 5 for more information about credit risk associated with multifamily loans that we hold or guarantee.

Table 12.2 - Concentration of Credit Risk of Our Multifamily Mortgage Portfolio 

March 31, 2023 December 31, 2022

(Dollars in millions) Portfolio UPB % of Portfolio Delinquency Rate(1) Portfolio UPB % of Portfolio Delinquency Rate(1)

Region(2)(3):

 West $106,840 25 % 0.04 % $107,260 25 % 0.04 %

 Northeast 104,627 25 0.30 106,478 25 0.28 

 North Central 40,555 10 0.16 40,524 9 0.16 

 Southeast 84,801 20 0.04 85,438 20 0.04 

 Southwest 89,216 20 0.13 89,602 21 0.08 

Total $426,039 100 % 0.13 $429,302 100 % 0.12 

(1) Based on loans two monthly payments or more delinquent or in foreclosure.

(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); North Central (IL, IN, IA, 

MI, MN, ND, OH, SD, WI); Southeast (AL, FL, GA, KY, MS, NC, PR, SC, TN, VI); Southwest (AR, CO, KS, LA, MO, NE, NM, OK, TX, WY). 

(3) The UPB of loans collateralized by properties located in multiple regions are reported entirely in the region with the largest underlying collateral UPB as of origination.

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 12

Freddie Mac 1Q 2023 Form 10-Q 78
NOTE 13

Fair Value Disclosures

We use fair value measurements for the initial recording of certain assets and liabilities and periodic remeasurement of certain 

assets and liabilities on a recurring or non-recurring basis.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The table below presents our assets and liabilities measured on our condensed consolidated balance sheets at fair value on a 

recurring basis subsequent to initial recognition, including instruments where we have elected the fair value option.

Table 13.1 - Assets and Liabilities Measured at Fair Value on a Recurring Basis 

March 31, 2023

(In millions) Level 1 Level 2 Level 3

Netting 

Adjustments(1) Total

Assets:

Investment securities:

Available-for-sale $— $5,516 $853 $— $6,369 

Trading:

Mortgage-related securities — 6,169 2,905 — 9,074 

Non-mortgage-related securities 21,884 385 — — 22,269 

Total trading securities 21,884 6,554 2,905 — 31,343 

Total investment securities 21,884 12,070 3,758 — 37,712 

Mortgage loans held-for-sale — 2,579 347 — 2,926 

Mortgage loans held-for-investment — 1,174 64 — 1,238 

Other assets:

 Guarantee assets — — 5,432 — 5,432 

 Derivative assets, net — 5,477 3 (5,089) 391 

 Other assets — 34 125 — 159 

 Total other assets — 5,511 5,560 (5,089) 5,982 

Total assets carried at fair value on a recurring basis $21,884 $21,334 $9,729 ($5,089) $47,858 

Liabilities:

Debt:

Debt of consolidated trusts $— $1,858 $290 $— $2,148 

Debt of Freddie Mac — 569 94 — 663 

Total debt — 2,427 384 — 2,811 

Other liabilities:

Derivative liabilities, net 13 9,367 77 (8,564) 893 

Other liabilities — 1 — — 1 

 Total other liabilities 13 9,368 77 (8,564) 894 

Total liabilities carried at fair value on a recurring basis $13 $11,795 $461 ($8,564) $3,705 

Referenced footnote is included after the prior period table.

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 13

Freddie Mac 1Q 2023 Form 10-Q 79
December 31, 2022

(In millions) Level 1 Level 2 Level 3

Netting 

Adjustments(1) Total

Assets:

Investment securities:

Available-for-sale $— $5,640 $894 $— $6,534 

Trading:

Mortgage-related securities — 5,603 2,731 — 8,334 

Non-mortgage-related securities 23,453 380 — — 23,833 

Total trading securities 23,453 5,983 2,731 — 32,167 

Total investment securities 23,453 11,623 3,625 — 38,701 

Mortgage loans held-for-sale — 2,908 310 — 3,218 

Mortgage loans held-for-investment — 1,104 110 — 1,214 

Other assets:

 Guarantee assets — — 5,442 — 5,442 

 Derivative assets, net — 6,397 2 (6,092) 307 

 Other assets — 12 129 — 141 

 Total other assets — 6,409 5,573 (6,092) 5,890 

Total assets carried at fair value on a recurring basis $23,453 $22,044 $9,618 ($6,092) $49,023 

Liabilities:

Debt:

Debt of consolidated trusts $— $1,656 $288 $— $1,944 

 Debt of Freddie Mac — 1,003 100 — 1,103 

Total debt — 2,659 388 — 3,047 

Other liabilities:

 Derivative liabilities, net — 10,823 97 (10,162) 758 

 Other liabilities — 1 — — 1 

 Total other liabilities — 10,824 97 (10,162) 759 

 Total liabilities carried at fair value on a recurring basis $— $13,483 $485 ($10,162) $3,806 

(1) Represents counterparty netting and cash collateral netting.

Level 3 Fair Value Measurements

The table below presents a reconciliation of all assets and liabilities measured on our condensed consolidated balance sheets 

at fair value on a recurring basis using significant unobservable inputs (Level 3), including transfers into and out of Level 3. The 

table also presents gains and losses due to changes in fair value, including both realized and unrealized gains and losses, 

recognized on our condensed consolidated statements of income for Level 3 assets and liabilities.

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 13

Freddie Mac 1Q 2023 Form 10-Q 80
Table 13.2 - Fair Value Measurements of Assets and Liabilities Using Significant Unobservable Inputs 

1Q 2023

Balance,

January 1,

2023

Total Realized/Unrealized 

Gains (Losses)(1)

Purchases Issues Sales

Settlements,

Net

Transfers

into

Level 3

Transfers

out of

Level 3

Balance,

March 31,

2023

Change in 

Unrealized 

Gains/Losses(1)

Included in Net 

Income Related 

to Assets and 

Liabilities Still 

Held as of 

March 31, 

2023(2)

Change in 

Unrealized 

Gains/Losses(1), 

Net of Tax, 

Included in OCI 

Related to 

Assets and 

Liabilities Still 

Held as of 

(In millions) March 31, 2023

Included 

in

Earnings

Included in 

Other

Comprehensive

Income

Assets

Investment securities:

Available-for-sale $894 $1 ($3) $— $— $— ($39) $— $— $853 $— ($3) 

Trading 2,731 (139) — 324 — — (11) — — 2,905 33 — 

Total investment 

securities 3,625 (138) (3) 324 — — (50) — — 3,758 33 (3) 

Mortgage loans heldfor-sale 310 1 — 26 — — (1) 11 — 347 — — 

Mortgage loans heldfor-investment 110 2 — — — — — — (48) 64 2 — 

Other assets:

Guarantee assets 5,442 85 — — 127 — (222) — — 5,432 85 — 

Other assets 131 16 — (10) — — (9) — — 128 16 — 

Total other assets 5,573 101 — (10) 127 — (231) — — 5,560 101 — 

Total assets $9,618 ($34) ($3) $340 $127 $— ($282) $11 ($48) $9,729 $136 ($3) 

Liabilities

Debt $388 ($12) $— $— $12 $— ($4) $— $— $384 ($8) $— 

Other liabilities 97 (18) — — — — (2) — — 77 (19) — 

Total liabilities $485 ($30) $— $— $12 $— ($6) $— $— $461 ($27) $— 

1Q 2022

Balance,

January 1,

2022

Total Realized/Unrealized 

Gains (Losses)(1)

Purchases Issues Sales

Settlements,

Net

Transfers

into

Level 3

Transfers

out of

Level 3

Balance,

March 31,

2022

Change in 

Unrealized 

Gains/Losses(1)

Included in Net 

Income Related 

to Assets and 

Liabilities Still 

Held as of 

March 31, 

2022(2)

Change in 

Unrealized 

Gains/Losses(1), 

Net of Tax, 

Included in OCI 

Related to 

Assets and 

Liabilities Still 

Held as of 

(In millions) March 31, 2022

Included 

in

Earnings

Included in 

Other

Comprehensive

Income

Assets

Investment securities:

Available-for-sale $1,286 ($1) ($36) $— $— $— ($91) $30 $— $1,188 ($1) ($29) 

Trading 3,386 (426) — 243 — — (18) — (20) 3,165 (256) — 

Total investment 

securities 4,672 (427) (36) 243 — — (109) 30 (20) 4,353 (257) (29) 

Other assets:

Guarantee assets 5,919 (316) — — 333 — (240) — — 5,696 (316) — 

Other assets 101 16 — (4) 3 — (2) — — 114 16 — 

Total other assets 6,020 (300) — (4) 336 — (242) — — 5,810 (300) — 

Total assets $10,692 ($727) ($36) $239 $336 $— ($351) $30 ($20) $10,163 ($557) ($29) 

Liabilities

Debt $294 $23 $— $— $86 $— ($1) $— $— $402 $33 $— 

Other liabilities 24 24 — — — — (1) — — 47 24 — 

Total liabilities $318 $47 $— $— $86 $— ($2) $— $— $449 $57 $— 

(1) For assets, increase and decrease in earnings and other comprehensive income is shown as gains and (losses), respectively. For liabilities, increase and decrease in 

earnings and comprehensive income is shown as (gains) and losses, respectively.

(2) Represents the amount of total gains or losses for the period, included in earnings, attributable to the change in unrealized gains and losses related to assets and 

liabilities classified as Level 3 that were still held at March 31, 2023 and March 31, 2022. 

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 13

Freddie Mac 1Q 2023 Form 10-Q 81
The table below provides valuation techniques, the range, and the weighted average of significant unobservable inputs for Level 

3 assets and liabilities measured on our condensed consolidated balance sheets at fair value on a recurring basis.

Table 13.3 - Quantitative Information about Recurring Level 3 Fair Value Measurements 

March 31, 2023

Level 3

Fair

Value

Predominant

Valuation

Technique(s)

Unobservable Inputs

(Dollars in millions, except for certain unobservable 

inputs as shown) Type Range

Weighted

Average(1)

Assets

Investment securities:

 Available-for-sale $533 Median of external sources External pricing sources $58.2 - $72.8 $68.2 

 320 Other

 Trading 2,023 Single external source External pricing source $0.0 - $5,410.0 $210.0 

 882 Other

Mortgage loans held-for-sale 347 Single external source External pricing source $39.6 - $98.6 $78.7 

Guarantee assets 5,074 Discounted cash flows OAS 17 - 186 bps 46 bps

 358 Other

Insignificant Level 3 assets(2) 192 

Total level 3 assets $9,729 

Liabilities

Insignificant Level 3 liabilities(2) 461 

Total level 3 liabilities $461 

December 31, 2022

Level 3

Fair

Value

Predominant

Valuation

Technique(s)

Unobservable Inputs

(Dollars in millions, except for certain unobservable 

inputs as shown)

Type Range

Weighted

Average(1)

Assets

Investment securities:

 Available-for-sale $557 Median of external sources External pricing sources $66.3 - $74.6 $70.5 

 337 Other

 Trading 2,080 Single external source External pricing source $0.0 - $5,702.4 $224.8 

 651 Other

Mortgage loans held-for-sale 310 Single external source External pricing source $39.6 - $98.1 $76.6 

Mortgage loans held-for-investment 110 Single external source External pricing source $76.9 - $87.5 $80.6 

 Guarantee assets 5,084 Discounted cash flows OAS 17 - 186 bps 45 bps

 358 Other

 Insignificant Level 3 assets(2) 131 

Total level 3 assets $9,618 

Liabilities

Insignificant Level 3 liabilities(2) 485 

Total level 3 liabilities $485 

(1) Unobservable inputs were weighted primarily by the relative fair value of the financial instruments.

(2) Represents the aggregate amount of Level 3 assets and liabilities measured at fair value on a recurring basis that are individually and in the aggregate insignificant.

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 13

Freddie Mac 1Q 2023 Form 10-Q 82
Assets Measured at Fair Value on a Non-Recurring Basis

We may be required, from time to time, to measure certain assets at fair value on a non-recurring basis. These adjustments 

usually result from the application of lower-of-cost-or-fair-value accounting or measurement of impairment based on the fair 

value of the underlying collateral. Certain fair values in the tables below were not obtained as of period end, but were obtained 

during the period.

The table below presents assets measured on our condensed consolidated balance sheets at fair value on a non-recurring 

basis. 

Table 13.4 - Assets Measured at Fair Value on a Non-Recurring Basis 

March 31, 2023 December 31, 2022

(In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total

Mortgage loans(1) $— $454 $2,170 $2,624 $— $386 $1,758 $2,144 

(1) Includes loans that are classified as held-for-investment and have an allowance for credit losses based on the fair value of the underlying collateral and held-for-sale 

loans where the fair value is below cost.

The table below provides valuation techniques, the range, and the weighted average of significant unobservable inputs for Level 

3 assets measured on our condensed consolidated balance sheets at fair value on a non-recurring basis.

Table 13.5 - Quantitative Information About Non-Recurring Level 3 Fair Value Measurements 

March 31, 2023

Level 3

Fair

Value

Predominant

Valuation

Technique(s)

Unobservable Inputs

(Dollars in millions, except for 

unobservable inputs as shown) Type Range

Weighted

Average(1)

Mortgage loans $1,520 Median of external sources External pricing sources $75.3 - $97.3 $85.5

650 Other

Total $2,170 

December 31, 2022

Level 3

Fair

Value

Predominant

Valuation

Technique(s)

Unobservable Inputs

(Dollars in millions, except for 

unobservable inputs as shown) Type Range

Weighted

Average(1)

Mortgage loans $1,657 Median of external sources External pricing sources $74.8 - $98.6 $86.3

101 Other

Total $1,758 

(1) Unobservable inputs were weighted primarily by the relative fair value of the financial instruments.

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 13

Freddie Mac 1Q 2023 Form 10-Q 83
Fair Value of Financial Instruments

The table below presents the carrying value and estimated fair value of our financial instruments. For certain types of financial 

instruments, such as cash and cash equivalents, securities purchased under agreements to resell, and certain debt, the 

carrying value on our condensed consolidated balance sheets approximates fair value, as these assets and liabilities are shortterm in nature and have limited fair value volatility. 

Table 13.6 - Fair Value of Financial Instruments

March 31, 2023

GAAP 

Measurement 

Category(1)

Carrying  

Amount

Fair Value

(In millions) Level 1 Level 2 Level 3

Netting 

Adjustments(2) Total

Financial Assets

Cash and cash equivalents Amortized cost $5,873 $5,873 $— $— $— $5,873 

Securities purchased under agreements 

to resell Amortized cost 108,036 — 112,688 — (4,652) 108,036 

Investment securities:

Available-for-sale FV - OCI 6,369 — 5,516 853 — 6,369 

Trading FV - NI 31,343 21,884 6,554 2,905 — 31,343 

Total investment securities 37,712 21,884 12,070 3,758 — 37,712 

Mortgage loans:

Loans held by consolidated trusts 2,977,998 — 2,337,448 276,492 — 2,613,940 

Loans held by Freddie Mac 59,711 — 25,534 30,236 — 55,770 

Total mortgage loans(3) Various(4) 3,037,709 — 2,362,982 306,728 — 2,669,710 

Other assets:

Guarantee assets FV - NI 5,432 — — 5,435 — 5,435 

Derivative assets, net FV - NI 391 — 5,477 3 (5,089) 391 

Other assets(5) Various 2,805 — 931 1,880 — 2,811 

 Total other assets 8,628 — 6,408 7,318 (5,089) 8,637 

Total financial assets $3,197,958 $27,757 $2,494,148 $317,804 ($9,741) $2,829,968 

Financial Liabilities

Debt:

Debt of consolidated trusts $2,987,050 $— $2,610,811 $696 $— $2,611,507 

Debt of Freddie Mac 180,464 — 182,379 3,306 (4,652) 181,033 

Total debt Various(6) 3,167,514 — 2,793,190 4,002 (4,652) 2,792,540 

Other liabilities:

Guarantee obligations Amortized cost 5,639 — — 6,018 — 6,018 

Derivative liabilities, net FV - NI 893 13 9,367 77 (8,564) 893 

Other liabilities(5) FV - NI 12 — 828 155 — 983 

 Total other liabilities 6,544 13 10,195 6,250 (8,564) 7,894 

Total financial liabilities $3,174,058 $13 $2,803,385 $10,252 ($13,216) $2,800,434 

Referenced footnotes are included after the prior period table.

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 13

Freddie Mac 1Q 2023 Form 10-Q 84
December 31, 2022

GAAP 

Measurement 

Category(1)

Carrying  

Amount

Fair Value

(In millions) Level 1 Level 2 Level 3

Netting 

Adjustments(2) Total

Financial Assets

Cash and cash equivalents Amortized cost $6,360 $6,360 $— $— $— $6,360 

Securities purchased under agreements 

to resell Amortized cost 87,295 — 99,286 — (11,991) 87,295 

Investment securities:

Available-for-sale FV - OCI 6,534 — 5,640 894 — 6,534 

Trading FV - NI 32,167 23,453 5,983 2,731 — 32,167 

Total investment securities 38,701 23,453 11,623 3,625 — 38,701 

Mortgage loans:

Loans held by consolidated trusts 2,971,601 — 2,331,969 244,045 — 2,576,014 

Loans held by Freddie Mac 62,914 — 25,921 32,460 — 58,381 

Total mortgage loans Various(4) 3,034,515 — 2,357,890 276,505 — 2,634,395 

Other assets:

Guarantee assets FV - NI 5,442 — — 5,445 — 5,445 

Derivative assets, net FV - NI 307 — 6,397 2 (6,092) 307 

Other assets(5) Various 1,739 — 907 835 — 1,742 

 Total other assets 7,488 — 7,304 6,282 (6,092) 7,494 

Total financial assets $3,174,359 $29,813 $2,476,103 $286,412 ($18,083) $2,774,245 

Financial Liabilities

Debt:

Debt of consolidated trusts $2,979,070 $— $2,564,323 $701 $— $2,565,024 

Debt of Freddie Mac 166,762 — 175,673 3,162 (11,991) 166,844 

Total debt Various(6) 3,145,832 — 2,739,996 3,863 (11,991) 2,731,868 

Other liabilities:

Guarantee obligations Amortized cost 5,779 — — 6,016 — 6,016 

Derivative liabilities, net FV - NI 758 — 10,823 97 (10,162) 758 

Other liabilities(5) FV - NI 20 — 1,025 211 — 1,236 

 Total other liabilities 6,557 — 11,848 6,324 (10,162) 8,010 

Total financial liabilities $3,152,389 $— $2,751,844 $10,187 ($22,153) $2,739,878 

(1) FV - NI denotes fair value through net income. FV - OCI denotes fair value through other comprehensive income.

(2) Represents counterparty netting and cash collateral netting.

(3) Excludes basis adjustments maintained on a closed portfolio basis related to existing portfolio layer method hedge relationships as of March 31, 2023. See Note 3

for additional information on basis adjustments associated with closed portfolios during existing portfolio layer method hedges.

(4) The GAAP carrying amounts measured at amortized cost, lower-of-cost-or-fair-value, and FV - NI were $3.0 trillion, $9.9 billion, and $4.2 billion as of March 31, 

2023, respectively, and $3.0 trillion, $9.0 billion and $4.4 billion as of December 31, 2022, respectively.

(5) For other assets, includes advances to lenders, secured lending, and loan commitments. For other liabilities, includes loan commitments.

(6) The GAAP carrying amounts measured at amortized cost and FV - NI were $3.2 trillion and $2.8 billion as of March 31, 2023, respectively, and $3.1 trillion and 

$3.0 billion as of December 31, 2022, respectively.

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 13

Freddie Mac 1Q 2023 Form 10-Q 85
Fair Value Option

We elected the fair value option for certain mortgage loans and loan commitments and certain debt issuances.

The table below presents the fair value and UPB related to multifamily loan purchase commitments and loans and debt for 

which we have elected the fair value option.

Table 13.7 - Difference between Fair Value and UPB for Certain Financial Instruments with Fair Value Option Elected(1)

March 31, 2023 December 31, 2022

(In millions) Fair value UPB Difference Fair value UPB Difference

Mortgage loans held-for-sale $2,926 $3,063 ($137) $3,218 $3,421 ($203) 

Mortgage loans held-for-investment 1,238 1,367 (129) 1,214 1,368 (154) 

Debt of Freddie Mac 460 453 7 892 881 11 

Debt of consolidated trusts 1,858 1,981 (123) 1,656 1,833 (177) 

Other assets/other liabilities 33 N/A N/A 11 N/A N/A

(1) Excludes interest-only securities related to debt of consolidated trusts and debt of Freddie Mac with a fair value of $0.5 billion as of both March 31, 2023 and 

December 31, 2022.

Changes in Fair Value Under the Fair Value Option Election

The table below presents the changes in fair value related to items for which we have elected the fair value option. These 

amounts are included in investment gains, net, on our condensed consolidated statements of income.

Table 13.8 - Changes in Fair Value Under the Fair Value Option Election

1Q 2023 1Q 2022

(In millions) Gains (Losses) 

Mortgage loans held-for-sale $4 ($676) 

Mortgage loans held-for-investment 26 — 

Debt of Freddie Mac 14 (11) 

Debt of consolidated trusts (35) 72 

Other assets/other liabilities 55 (36) 

Changes in fair value attributable to instrument-specific credit risk were not material for the periods presented for assets or 

liabilities for which we elected the fair value option.

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 13

Freddie Mac 1Q 2023 Form 10-Q 86
NOTE 14

Legal Contingencies

We are involved, directly or indirectly, in a variety of legal and regulatory proceedings arising from time to time in the ordinary 

course of business (including, among other things, contractual disputes, personal injury claims, employment-related litigation, 

and other legal proceedings incidental to our business) and in connection with the conservatorship and Purchase Agreement. 

We are frequently involved, directly or indirectly, in litigation involving mortgage foreclosures. From time to time, we are also 

involved in proceedings arising from our termination of a seller's or servicer's eligibility to sell loans to, and/or service loans for, 

us. In these cases, the former seller or servicer sometimes seeks damages against us for wrongful termination under a variety 

of legal theories. In addition, we are sometimes sued in connection with the origination or servicing of loans. These suits 

typically involve claims alleging wrongful actions of sellers and servicers. Our contracts with our sellers and servicers generally 

provide for indemnification of Freddie Mac against liability arising from sellers' and servicers' wrongful actions with respect to 

loans sold to or serviced for Freddie Mac.

Litigation claims and proceedings of all types are subject to many uncertainties (including appeals and procedural filings), and 

there can be no assurance as to the ultimate outcome of those actions (including the matters described below). In accordance 

with the accounting guidance for contingencies, we reserve for litigation claims and assessments asserted or threatened 

against us when a loss is probable (as defined in such guidance) and the amount of the loss can be reasonably estimated. The 

actual costs of resolving legal actions may be substantially higher or lower than the amounts accrued for those actions.

It is not possible for us to predict the actions the U.S. government (including Treasury and FHFA) might take in response to any 

ruling or finding in any of these lawsuits or any future lawsuits. However, it is possible that we could be adversely affected by 

these events, including, for example, by changes to the Purchase Agreement, or any resulting actual or perceived changes in 

the level of U.S. government support for our business. 

Putative Securities Class Action Lawsuit: Ohio Public Employees 

Retirement System vs. Freddie Mac, Syron, Et Al.

This putative securities class action lawsuit was filed against Freddie Mac and certain former officers on January 18, 2008 in the 

U.S. District Court for the Northern District of Ohio purportedly on behalf of a class of purchasers of Freddie Mac stock from 

August 1, 2006 through November 20, 2007. FHFA later intervened as Conservator, and the plaintiff amended its complaint on 

several occasions. The plaintiff alleged, among other things, that the defendants violated federal securities laws by making false 

and misleading statements concerning our business, risk management, and the procedures we put into place to protect the 

company from problems in the mortgage industry. The plaintiff seeks unspecified damages and interest, and reasonable costs 

and expenses, including attorney and expert fees.

In August 2018, the District Court denied the plaintiff's motion for class certification, and in January 2019, the Sixth Circuit 

denied plaintiff's petition for leave to appeal that decision. On September 17, 2020, the District Court granted a request from 

the plaintiff for summary judgment and entered final judgment in favor of Freddie Mac and the other defendants. On October 9, 

2020, the plaintiff filed a notice of appeal in the Sixth Circuit. On April 6, 2023, the Sixth Circuit reversed the District Court’s 

September 17, 2020 decision and remanded the case to the District Court for further proceedings.

Litigation Concerning the Purchase Agreement in the U.S. District Court 

for the District of Columbia

In re Fannie Mae/Freddie Mac Senior Preferred Stock Purchase Agreement Class Action Litigations. This is a 

consolidated class action lawsuit filed by private individual and institutional investors (collectively, "Class Plaintiffs") against 

FHFA, Fannie Mae, and Freddie Mac. 

Fairholme Funds, Inc., et al. v. FHFA, et al. This is an individual plaintiffs’ lawsuit by certain institutional investors (“Individual 

Plaintiffs”) against FHFA, Fannie Mae, and Freddie Mac. 

Plaintiffs in each of the District of Columbia lawsuits filed an amended complaint on November 1, 2017 alleging claims for 

breach of contract, breach of the implied covenant of good faith and fair dealing, breach of fiduciary duties, and violation of 

Delaware and Virginia corporate law. Additionally, the Class Plaintiffs brought derivative claims against FHFA for breach of 

fiduciary duties and the Individual Plaintiffs brought claims under the Administrative Procedure Act. Both sets of claims are 

generally based on allegations that the net worth sweep dividend provisions of the senior preferred stock that were 

implemented pursuant to the August 2012 amendments nullified certain of the shareholders’ rights, including the rights to 

receive dividends and a liquidation preference. On September 28, 2018, the District Court dismissed all of the claims except 

those for breach of the implied covenant of good faith and fair dealing. The cases were consolidated for trial. 

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 14

Freddie Mac 1Q 2023 Form 10-Q 87
On September 23 and October 11, 2022, the District Court ruled on the parties' motions for summary judgment and related 

matters. The rulings limited the Plaintiffs’ remaining damages theories to those based on the decline in Freddie Mac’s and 

Fannie Mae’s share value immediately after the Third Amendment. The Plaintiffs have asserted losses based on the decline in 

value of Freddie Mac’s common and junior preferred stock from August 16 to August 17, 2012. During the trial in October and 

early November 2022, the Plaintiffs requested that the jury award $832 million plus pre-judgment interest as damages against 

Freddie Mac. The jury in that trial was not able to reach a unanimous verdict and on November 7, 2022 the judge declared a 

mistrial. The District Court set a new trial for July 24, 2023. At this time, we do not believe the likelihood of loss is probable; 

therefore, we have not established an accrual in connection with these lawsuits. However, it is reasonably possible that the 

Plaintiffs could prevail in this matter and, if so, we may incur a loss up to $832 million plus pre-judgment interest as discussed 

above. We estimate that prejudgment interest, if awarded, would be calculated at a rate of 6%.

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 14

Freddie Mac 1Q 2023 Form 10-Q 88
NOTE 15

Regulatory Capital

ERCF 

The table below presents our capital metrics under the ERCF. 

Table 15.1 - ERCF Available Capital and Capital Requirements 

(In billions) March 31, 2023 December 31, 2022

Adjusted total assets $3,716 $3,710 

Risk-weighted assets (standardized approach) 908 899 

March 31, 2023

Amounts Ratios

(Dollars in billions)

Available 

Capital (Deficit)

Minimum 

Capital 

Requirement

Capital 

Requirement 

(Including Buffer(1))

Available 

Capital 

(Deficit) 

Ratio(2)

Minimum 

Capital 

Requirement 

Ratio(2)

Capital 

Requirement 

Ratio(2)

(Including 

Buffer(1))

Risk-based capital:

Total capital ($25) $73 $73 (2.8) % 8.0 % 8.0 %

CET1 capital (53) 41 91 (5.8) 4.5 10.1 

Tier 1 capital (39) 54 104 (4.3) 6.0 11.6 

Adjusted total capital (39) 73 123 (4.3) 8.0 13.6 

Leverage capital:

Core capital ($33) $93 $93 (0.9) % 2.5 % 2.5 %

Tier 1 capital (39) 93 104 (1.0) 2.5 2.8 

December 31, 2022

Amounts Ratios

(Dollars in billions)

Available 

Capital (Deficit)

Minimum 

Capital 

Requirement

Capital 

Requirement 

(Including Buffer(1))

Available 

Capital 

(Deficit) 

Ratio(2)

Minimum 

Capital 

Requirement 

Ratio(2)

Capital 

Requirement 

Ratio(2)

(Including 

Buffer(1))

Risk-based capital:

Total capital ($27) $72 $72 (3.1) % 8.0 % 8.0 %

CET1 capital (55) 40 90 (6.2) 4.5 10.1 

Tier 1 capital (41) 54 104 (4.6) 6.0 11.6 

Adjusted total capital (41) 72 122 (4.6) 8.0 13.6 

Leverage capital:

Core capital ($35) $93 $93 (1.0) % 2.5 % 2.5 %

Tier 1 capital (41) 93 104 (1.1) 2.5 2.8 

(1) PCCBA for risk-based capital and PLBA for leverage capital.

(2) As a percentage of RWA for risk-based capital and ATA for leverage capital.

END OF CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND ACCOMPANYING NOTES

Financial Statements Notes to the Condensed Consolidated Financial Statements | Note 15

Freddie Mac 1Q 2023 Form 10-Q 89
Other Information

LEGAL PROCEEDINGS 

We are involved, directly or indirectly, in a variety of legal proceedings arising from time to time in the ordinary course of 

business and in connection with the conservatorship and Purchase Agreement. See Note 14 for more information regarding 

our involvement as a party to various legal proceedings, including those in connection with the conservatorship and Purchase 

Agreement. 

Over the last several years, numerous lawsuits have been filed against the U.S. government and, in some cases, the Secretary 

of the Treasury and the Director of FHFA, challenging certain government actions related to the conservatorship (including 

actions taken in connection with the imposition of conservatorship) and the Purchase Agreement. Freddie Mac is not a party to 

all of these lawsuits. Several of the lawsuits seek to invalidate the net worth sweep dividend provisions of the senior preferred 

stock, which were implemented pursuant to the August 2012 amendment to the Purchase Agreement. Some of these cases 

also have challenged the constitutionality of the structure of FHFA. A number of cases have been dismissed (some of which 

have been appealed), and others remain pending. 

These cases include one that was filed in the U.S. Court of Federal Claims as a derivative lawsuit, purportedly on behalf of 

Freddie Mac as a “nominal” defendant: Reid and Fisher vs. the United States of America and Federal Home Loan Mortgage 

Corporation. This case was filed on February 26, 2014. The complaint alleges, among other items, that the net worth sweep 

dividend provisions of the senior preferred stock constitute an unlawful taking of private property for public use without just 

compensation. The plaintiffs ask that Freddie Mac be awarded just compensation for the U.S. government's alleged taking of 

its property, attorneys' fees, costs, and other expenses. The case remains pending.

Pursuant to the Purchase Agreement, in addition to satisfying other conditions, all currently pending material litigation related to 

our conservatorship and/or the Purchase Agreement must be resolved or settled and we must indemnify Treasury and the 

United States from and against any loss, cost, or damage of any kind arising out of our placement into conservatorship or the 

August 2012 amendment to the Purchase Agreement in order to exit from conservatorship. 

RISK FACTORS 

This Form 10-Q should be read together with the Risk Factors section in our 2022 Annual Report, which describe various 

risks and uncertainties to which we are or may become subject. These risks and uncertainties could, directly or indirectly, 

adversely affect our business, financial condition, results of operations, cash flows, strategies, and/or prospects.

UNREGISTERED SALES OF EQUITY SECURITIES AND 

USE OF PROCEEDS

Recent Sales of Unregistered Securities

The securities we issue are "exempted securities" under the Securities Act of 1933, as amended. As a result, we do not file 

registration statements with the SEC with respect to offerings of our securities.

Following our entry into conservatorship, we suspended the operation of, and ceased making grants under, equity 

compensation plans. Previously, we had provided equity compensation under those plans to employees and members of the 

Board of Directors. Under the Purchase Agreement, we cannot issue any new options, rights to purchase, participations, or 

other equity interests without Treasury's prior approval.

Information About Certain Securities Issuances by Freddie Mac

We make available, free of charge through our website at www.freddiemac.com, our annual reports on Form 10-K, quarterly 

reports on Form 10-Q, current reports on Form 8-K, and all other SEC reports and amendments to those reports as soon as 

reasonably practicable after we electronically file the material with the SEC. The SEC also maintains an internet site 

(www.sec.gov) that contains reports, proxy and information statements, and other information regarding companies that file 

electronically with the SEC. 

We provide disclosure about our debt securities on our website at www.freddiemac.com/debt. From this address, investors 

can access the offering circular and related supplements for debt securities offerings under Freddie Mac's global debt facility, 

Other Information

Freddie Mac 1Q 2023 Form 10-Q 90
including pricing supplements for individual issuances of debt securities. Similar information about our STACR transactions and 

SCR transactions is available at crt.freddiemac.com and mf.freddiemac.com/investors, respectively.

We provide disclosure about our mortgage-related securities, some of which are off-balance sheet obligations (e.g., K 

Certificates and SB Certificates), on our website at www.freddiemac.com/mbs and mf.freddiemac.com/investors. From 

these addresses, investors can access information and documents, including offering circulars and offering circular 

supplements, for mortgage-related securities offerings.

We provide additional information, including product descriptions, investor presentations, securities issuance calendars, 

transactions volumes and details, redemption notices, Freddie Mac research, and material developments or other events that 

may be important to investors, in each case as applicable, on the websites for our business activities, which can be found at 

sf.freddiemac.com, mf.freddiemac.com, and capitalmarkets.freddiemac.com/capital-markets.

We provide information on our ESG efforts on our website at freddiemac.com/about/esg.

EXHIBITS

The exhibits are listed in the Exhibit Index of this Form 10-Q.

Other Information

Freddie Mac 1Q 2023 Form 10-Q 91
Controls and Procedures

EVALUATION OF DISCLOSURE CONTROLS AND 

PROCEDURES

Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that the information 

we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and 

reported within the time periods specified by the SEC's rules and forms and that such information is accumulated and 

communicated to management of the company, including the company's Chief Executive Officer and Chief Financial Officer, as 

appropriate, to allow timely decisions regarding required disclosure. In designing our disclosure controls and procedures, we 

recognize that any controls and procedures, no matter how well designed and operated, can provide only reasonable 

assurance of achieving the desired control objectives, and we must apply judgment in implementing possible controls and 

procedures.

Management, including the company's Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the 

effectiveness of our disclosure controls and procedures as of March 31, 2023. As a result of management's evaluation, our 

Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective as 

of March 31, 2023, at a reasonable level of assurance, because we have not been able to update our disclosure controls and 

procedures to provide reasonable assurance that information known by FHFA on an ongoing basis is communicated from 

FHFA to Freddie Mac's management in a manner that allows for timely decisions regarding our required disclosure under the 

federal securities laws. We consider this situation to be a material weakness in our internal control over financial reporting. 

CHANGES IN INTERNAL CONTROL OVER FINANCIAL 

REPORTING DURING 1Q 2023

We evaluated the changes in our internal control over financial reporting that occurred during 1Q 2023 and concluded that 

there were no changes that materially affected, or are reasonably likely to materially affect, our internal control over financial 

reporting.

MITIGATING ACTIONS RELATED TO THE MATERIAL 

WEAKNESS IN INTERNAL CONTROL OVER FINANCIAL 

REPORTING

As described above under Evaluation of Disclosure Controls and Procedures, we have one material weakness in 

internal control over financial reporting as of March 31, 2023 that we have not remediated.

Given the structural nature of this material weakness, we believe it is likely that we will not remediate it while we are under 

conservatorship. However, both we and FHFA have continued to engage in activities and employ procedures and practices 

intended to permit accumulation and communication to management of information needed to meet our disclosure obligations 

under the federal securities laws. These include the following:

n	 FHFA has established the Division of Conservatorship Oversight and Readiness, which is intended to facilitate operation of 

the company with the oversight of the Conservator.

n	 We provide drafts of our SEC filings to FHFA personnel for their review and comment prior to filing. We also provide drafts 

of certain external press releases and statements to FHFA personnel for their review and comment prior to release.

n	 FHFA personnel, including senior officials, review our SEC filings prior to filing, including this Form 10-Q, and engage in 

discussions with us regarding issues associated with the information contained in those filings. Prior to filing this Form 10-

Q, FHFA provided us with a written acknowledgment that it had reviewed the Form 10-Q, was not aware of any material 

misstatements or omissions in the Form 10-Q, and had no objection to our filing the Form 10-Q.

n	 Our senior management meets regularly with senior leadership at FHFA, including, but not limited to, the Director.

n	 FHFA representatives attend meetings frequently with various groups within the company to enhance the flow of 

information and to provide oversight on a variety of matters, including accounting, credit and capital markets management, 

external communications, and legal matters.

n	 Senior officials within FHFA's accounting group meet frequently with our senior financial executives regarding our 

accounting policies, practices, and procedures.

In view of our mitigating actions related to this material weakness, we believe that our condensed consolidated financial 

statements for 1Q 2023 have been prepared in conformity with GAAP.

Controls and Procedures

Freddie Mac 1Q 2023 Form 10-Q 92
Exhibit Index

Exhibit Description*

4.1 Federal Home Loan Mortgage Corporation Debt Facility Agreement, dated February 22, 2023

31.1 Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a)

31.2 Certification of Executive Vice President and Chief Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a)

32.1 Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350

32.2 Certification of Executive Vice President and Chief Financial Officer pursuant to 18 U.S.C. Section 1350

101.INS XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within 

the Inline XBRL document

101.SCH XBRL Taxonomy Extension Schema

101. CAL XBRL Taxonomy Extension Calculation

101.DEF XBRL Taxonomy Extension Definition

101.LAB XBRL Taxonomy Label

101. PRE XBRL Taxonomy Extension Presentation

104 Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are 

embedded within the Inline XBRL document

*

The SEC file numbers for the Registrant's Registration Statement on Form 10, Annual Reports on Form 10-K, Quarterly Reports on Form 

10-Q, and Current Reports on Form 8-K are 000-53330 and 001-34139.

Exhibit Index

Freddie Mac 1Q 2023 Form 10-Q 93
Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on 

its behalf by the undersigned thereunto duly authorized.

Federal Home Loan Mortgage Corporation

By: /s/ Michael J. DeVito

Michael J. DeVito

Chief Executive Officer

(Principal Executive Officer)

Date: May 3, 2023

By: /s/ Christian M. Lown

Christian M. Lown

Executive Vice President and Chief Financial Officer

(Principal Financial Officer)

Date: May 3, 2023

Signatures

Freddie Mac 1Q 2023 Form 10-Q 94
Form 10-Q Index

Item Number Page(s)

PART I FINANCIAL INFORMATION

Item 1. Financial Statements 44 - 89

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 1 - 43

Item 3. Quantitative and Qualitative Disclosures About Market Risk 29 - 31

Item 4. Controls and Procedures 92

PART II OTHER INFORMATION

Item 1. Legal Proceedings 90

Item 1A. Risk Factors 90

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 90 - 91

Item 6. Exhibits 91

Exhibit Index 93

Signatures 94

Form 10-Q Index

Freddie Mac 1Q 2023 Form 10-Q 95
Exhibit 4.1

FEDERAL HOME LOAN MORTGAGE CORPORATION 

GLOBAL DEBT FACILITY AGREEMENT 

AGREEMENT, dated as of February 22, 2023, among the Federal Home Loan Mortgage Corporation 

(“Freddie Mac”) and Holders of Debt Securities (each as hereinafter defined). 

Whereas: 

(a) Freddie Mac is a corporation duly organized and existing under and by virtue of the laws of the 

United States (Title III of the Emergency Home Finance Act of 1970, as amended (the “Freddie Mac Act”)) 

and has full corporate power and authority to enter into this Agreement and to undertake the obligations 

undertaken by it herein; 

(b) Pursuant to Section 306(a) of the Freddie Mac Act, Freddie Mac is authorized, upon such terms and 

conditions as it may prescribe, to borrow, to pay interest or other return, and to issue notes, bonds or other 

obligations or securities; and 

(c) To provide funds to permit Freddie Mac to engage in activities consistent with its statutory purposes, 

Freddie Mac has established a Global Debt Facility (the “Facility”) and authorized the issuance, from time to 

time, pursuant to this Agreement, of unsecured general obligations of Freddie Mac or, if so provided in the 

applicable Supplemental Agreement (as hereinafter defined), secured obligations of Freddie Mac (“Debt 

Securities”). 

NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained, it is 

hereby agreed that the following terms and conditions of this Agreement (including, as to each issue of the Debt 

Securities, the applicable Supplemental Agreement) shall govern the Debt Securities and the rights and 

obligations of Freddie Mac and Holders with respect to the Debt Securities. 

ARTICLE I 

Definitions 

Whenever used in this Agreement, the following words and phrases shall have the following meanings, 

unless the context otherwise requires. 

Additional Debt Securities: Debt Securities issued by Freddie Mac with the same terms (other than 

Issue Date, interest commencement date and issue price) and conditions as Debt Securities for which settlement 

has previously occurred so as to form a single series of Debt Securities as specified in the applicable 

Supplemental Agreement. 

Agreement: This Global Debt Facility Agreement dated as of February 22, 2023, as it may be amended 

or supplemented from time to time, and successors thereto pursuant to which Freddie Mac issues the Debt 

Securities. 

Amortizing Debt Securities: Debt Securities on which Freddie Mac makes periodic payments of 

principal during the terms of such Debt Securities as described in the related Supplemental Agreement. 

Beneficial Owner: The entity or individual that beneficially owns a Debt Security. 

Bonds: Callable or non-callable, puttable or non-puttable Debt Securities with maturities of more than 

ten years. 

 
Book-Entry Rules: FHFA regulations, 12 C.F.R. Part 1249, applicable to the Fed Book-Entry Debt 

Securities, and such procedures as to which Freddie Mac and the FRBNY may agree. 

Business Day: (i) With respect to Fed Book-Entry Debt Securities, any day other than (a) a Saturday, 

(b) a Sunday, (c) a day on which the FRBNY is closed, (d) as to any Holder of a Fed Book-Entry Debt Security, 

a day on which the Federal Reserve Bank that maintains the Holder’s account is closed, or (e) a day on which 

Freddie Mac’s offices are closed; and (ii) with respect to Registered Debt Securities, any day other than (a) a 

Saturday, (b) a Sunday, (c) a day on which banking institutions are closed in (i) the City of New York, if the 

Specified Payment Currency is U.S. dollars or (2) the Principal Financial Center of the country of such 

Specified Payment Currency, if the Specified Payment Currency is other than U.S. dollars or euro, (d) if the 

Specified Payment Currency is euro, a day on which the TARGET2 system is not open for settlements, or a day 

on which payments in euro cannot be settled in the international interbank market as determined by the Global 

Agent, (e) for any required payment, a day on which banking institutions are closed in the place of payment, or 

(f) a day on which Freddie Mac’s offices are closed. 

Calculation Agent: Freddie Mac or a bank or broker-dealer designated by Freddie Mac in the 

applicable Supplemental Agreement as the entity responsible for determining the interest rate on a Variable 

Rate Debt Security. 

Calculation Date: In each year, each of those days in the calendar year that are specified in the 

applicable Supplemental Agreement as being the scheduled Interest Payment Dates regardless, for this purpose, 

of whether any such date is in fact an Interest Payment Date and, for the avoidance of doubt, a “Calculation 

Date” may occur prior to the Issue Date or after the last Principal Payment Date.

Cap: A maximum interest rate at which interest may accrue on a Variable Rate Debt Security during 

any Interest Reset Period. 

Citibank — London: Citibank, N.A., London branch, the Global Agent for Registered Debt Securities. 

Citigroup — Frankfurt: Citigroup Global Markets Europe AG, the Registrar for Registered Debt 

Securities. 

Clearstream, Luxembourg: Clearstream Banking, société anonyme, which holds securities for its 

participants and facilitates the clearance and settlement of securities transactions between its participants 

through electronic book-entry changes in accounts of its participants. 

CMT Determination Date: The second New York Banking Day preceding the applicable Reset Date. 

CMT Rate: The rate determined by the Calculation Agent in accordance with Section 2.07(i)(M). 

Code: The Internal Revenue Code of 1986, as amended. 

Common Depositary: Citibank Europe plc will act as the common depositary for Euroclear, 

Clearstream, Luxembourg and/or any other applicable clearing system, which will hold Other Registered Debt 

Securities on behalf of Euroclear, Clearstream, Luxembourg and/or any such other applicable clearing system. 

Convertible Debt Securities: An issue of Debt Securities that may be convertible to a new security, 

which may or may not be a debt security of Freddie Mac, as described in the related Supplemental Agreement.

CUSIP Number: A unique nine-character designation assigned to each Debt Security by the CUSIP 

Service Bureau and used to identify each issuance of Debt Securities on the records of the Federal Reserve 

Banks or DTC, as applicable. 

 

2
Dealers: Firms that engage in the business of dealing or trading in debt securities as agents, brokers or 

principals. 

Debt Securities: Unsecured subordinated or unsubordinated notes, bonds and other debt securities 

issued from time to time by Freddie Mac under the Facility, or if so provided in the applicable Supplemental 

Agreement, secured obligation issued from time to time by Freddie Mac under the Facility. 

Deleverage Factor: A Multiplier of less than one by which an applicable Index is multiplied. 

Depository: DTC or any successor. 

Deposits: Deposits commencing on the applicable Reset Date. 

Determination Date: The date as of which the rate of interest applicable to an Interest Reset Period is 

determined. 

Determination Period: The period from, and including, one Calculation Date to, but excluding, the 

next Calculation Date. 

DTC: The Depository Trust Company, a limited-purpose trust company, which holds securities for 

DTC participants and facilitates the clearance and settlement of transactions between DTC participants through 

electronic book-entry changes in accounts of DTC participants. 

DTC Registered Debt Securities: Registered Debt Securities registered in the name of a nominee of 

DTC, which will clear and settle through the system operated by DTC. 

Euroclear: Euroclear System, a depositary that holds securities for its participants and clears and 

settles transactions between its participants through simultaneous electronic book-entry delivery against 

payment. 

Extendible Variable Rate Securities: Variable Rate Debt Securities, the maturity of which may be 

extended at a Beneficial Owner’s option effective as of certain specified dates, subject to a final maturity date, 

and that bear interest at variable rates subject to different Spreads for different specified periods. 

Facility: The Global Debt Facility described in the Offering Circular dated February 22, 2023 under 

which Freddie Mac issues the Debt Securities. 

Fed Book-Entry Debt Securities: U.S. dollar denominated Debt Securities issued and maintained in 

book-entry form on the Fed Book-Entry System. 

Fed Book-Entry System: The book-entry system of the Federal Reserve Banks which provides bookentry holding and settlement for U.S. dollar denominated securities issued by the U.S. Government, certain of 

its agencies, instrumentalities, government-sponsored enterprises and international organizations of which the 

United States is a member. 

Federal Funds Rate (Daily): The rate determined by the Calculation Agent in accordance with Section 

2.07(i)(N). 

Federal Funds Rate (Daily) Determination Date: The applicable Reset Date; provided, however, that if 

the Reset Date is not a Business Day, then the Federal Funds Rate (Daily) Determination Date means the 

Business Day immediately following the applicable Reset Date. 

Federal Reserve: The Board of Governors of the Federal Reserve System. 

 

3
Federal Reserve Bank: Each U.S. Federal Reserve Bank that maintains Debt Securities in book-entry 

form. 

Federal Reserve Banks: Collectively, the Federal Reserve Banks. 

Fiscal Agency Agreement: The Uniform Fiscal Agency Agreement between Freddie Mac and the 

FRBNY. 

Fiscal Agent: The FRBNY is fiscal agent for Fed Book-Entry Debt Securities. 

Fixed Principal Repayment Amount: An amount equal to 100% of the principal amount of a Debt 

Security, payable on the applicable Maturity Date or earlier date of redemption or repayment or a specified 

amount above or below such principal amount, as provided in the applicable Supplemental Agreement. 

Fixed Rate Debt Securities: Debt Securities that bear interest at a single fixed rate. 

Fixed/Variable Rate Debt Securities: Debt Securities that bear interest at a single fixed rate during one 

or more specified periods and at a variable rate determined by reference to one or more Indices, or otherwise, 

during one or more other periods. As to any such fixed rate period, the provisions of this Agreement relating to 

Fixed Rate Debt Securities shall apply, and, as to any such variable rate period, the provisions of this 

Agreement relating to Variable Rate Debt Securities shall apply. 

Floor: A minimum interest rate at which interest may accrue on a Debt Security during any Interest 

Reset Period. 

Freddie Mac: Federal Home Loan Mortgage Corporation, a government-sponsored enterprise 

chartered by Congress pursuant to the Freddie Mac Act. 

Freddie Mac Act: Title III of the Emergency Home Finance Act of 1970, as amended, 12 U.S.C. § 

1451-1459. 

FRB: The Board of Governors of the Federal Reserve System. 

FRBNY: The Federal Reserve Bank of New York. 

FRBNY’s Website: The website of the FRBNY, currently at http://www.newyorkfed.org, or any 

successor source. 

Global Agency Agreement: The agreement between Freddie Mac, the Global Agent and the Registrar. 

Global Agent: The entity selected by Freddie Mac to act as its fiscal, transfer and paying agent for 

Registered Debt Securities. 

H.15: The statistical release entitled “Statistical Release H.15, Selected Interest Rates” as published by 

the Federal Reserve, or any successor publication of the Federal Reserve available on its website at http://

www.federalreserve.gov/releases/h15/or any successor site. 

Holder: In the case of Fed Book-Entry Debt Securities, the entity whose name appears on the bookentry records of a Federal Reserve Bank as Holder; in the case of Registered Debt Securities in global registered 

form, the depository, or its nominee, in whose name the Registered Debt Securities are registered on behalf of a 

related clearing system; and, in the case of Registered Debt Securities in definitive registered form, the person 

or entity in whose name such Debt Securities are registered in the Register. 

Holding Institutions: Entities eligible to maintain book-entry accounts with a Federal Reserve Bank. 

 

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Index: SOFR, Prime Rate, Treasury Rate, CMT Rate, or Federal Funds Rate (Daily) or other specified 

interest rate, exchange rate or other index, as the case may be. 

Index Currency: The currency or currency unit specified in the applicable Supplemental Agreement 

with respect to which an Index will be calculated for a Variable Rate Debt Security. If no such currency or 

currency unit is specified in the applicable Supplemental Agreement, the Index Currency will be U.S. dollars. 

Index Maturity: The period with respect to which an Index will be calculated for a Variable Rate Debt 

Security that is specified in the applicable Supplemental Agreement. 

Interest Component: Each future interest payment, or portion thereof, due on or prior to the Maturity 

Date, or if the Debt Security is subject to redemption or repayment prior to the Maturity Date, the first date on 

which such Debt Security is subject to redemption or repayment. 

Interest Payment Date: The date or dates on which interest on Debt Securities will be payable in 

arrears. 

Interest Payment Period: Unless otherwise provided in the applicable Supplemental Agreement, the 

period beginning on (and including) the Issue Date or the most recent Interest Payment Date, as the case may 

be, and ending on (but excluding) the earlier of the next Interest Payment Date or the Principal Payment Date. 

Interest Reset Period: The period beginning on the applicable Reset Date and ending on the calendar 

day preceding the next Reset Date. 

Issue Date: The date on which Freddie Mac wires an issue of Debt Securities to Holders or other date 

specified in the applicable Supplemental Agreement. 

Leverage Factor: A Multiplier of greater than one by which an applicable Index is multiplied. 

London Banking Day: Any day on which commercial banks are open for business (including dealings 

in foreign exchange and deposits in the Index Currency) in London. 

Maturity Date: The date, one day or longer from the Issue Date, on which a Debt Security will mature 

unless extended, redeemed or repaid prior thereto. 

Mortgage Linked Amortizing Debt Securities: Amortizing Debt Securities on which Freddie Mac 

makes periodic payments of principal based on the rate of payments on referenced mortgage or mortgagerelated assets, as described in the related Supplemental Agreement. 

Multiplier: A constant or variable number (which may be greater than or less than one) to be multiplied 

by the relevant Index for a Variable Rate Debt Security. 

Notes: Callable or non-callable, puttable or non-puttable Debt Securities with maturities of more than 

one day. 

New York Banking Day: Any day other than (a) a Saturday, (b) a Sunday, (c) a day on which banking 

institutions in the City of New York are required or permitted by law or executive order to close, or (d) a day on 

which the FRBNY is closed. 

Offering Circular: The Freddie Mac Global Debt Facility Offering Circular dated February 22, 2023 

(including any related Offering Circular Supplement) and successors thereto. 

OID Determination Date: The last day of the last accrual period ending prior to the date of the meeting 

of Holders (or, for consents not at a meeting, prior to a date established by Freddie Mac). The accrual period 

 

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will be the same as the accrual period used by Freddie Mac to determine its deduction for accrued original issue 

discount under section 163 (e) of the Code. 

Other Registered Debt Securities: Registered Debt Securities that are not DTC Registered Debt 

Securities, that are deposited with a Common Depositary and that will clear and settle through the systems 

operated by Euroclear, Clearstream, Luxembourg and/or any such other applicable clearing system other than 

DTC. 

Pricing Supplement: A supplement to the Offering Circular that describes the specific terms of, and 

provides pricing information and other information for, an issue of Debt Securities or which otherwise amends, 

modifies or supplements the terms of the Offering Circular. 

Prime Rate: The rate determined by the Calculation Agent in accordance with Section 2.07(i)(K). 

Prime Rate Determination Date: The New York Banking Day preceding the applicable Reset Date. 

Principal Component: The principal payment plus any interest payments that are either due after the 

date specified in, or are specified as ineligible for stripping in, the applicable Supplemental Agreement. 

Principal Financial Center: (1) with respect to U.S. dollars, Sterling, Yen and Swiss francs, the City of 

New York, London, Tokyo and Zurich, respectively; or (2) with respect to any other Index Currency, the city 

specified in the related Pricing Supplement. 

Principal Payment Date: The Maturity Date, or the earlier date of redemption or repayment, if any 

(whether such redemption or repayment is in whole or in part). 

Range Accrual Debt Securities: Variable Rate Debt Securities on which no interest may accrue during 

periods when the applicable Index is outside a specified range as described in the related Supplemental 

Agreement. 

Record Date: As to Registered Debt Securities issued in global form, the close of business on the 

Business Day immediately preceding such Interest Payment Date. As to Registered Debt Securities issued in 

definitive form, the fifteenth calendar day preceding an Interest Payment Date. Interest on a Registered Debt 

Security will be paid to the Holder of such Registered Debt Security as of the close of business on the Record 

Date. 

Reference Bonds: U.S. dollar denominated non-callable and non-puttable Reference Securities with 

maturities of more than ten years. 

Reference Notes: U.S. dollar denominated non-callable and non-puttable Reference Securities with 

maturities of more than one year. 

Reference Securities: Scheduled U.S. dollar denominated issues of Debt Securities in large principal 

amounts, which may be either Reference Bonds or Reference Notes. 

Register: A register of the Holders of Registered Debt Securities maintained by the Registrar.

Registered Debt Securities: Debt Securities issued and maintained in global registered or definitive 

registered form on the books and records of the Registrar. 

Registrar: The entity selected by Freddie Mac to maintain the Register. 

Representative Amount: A principal amount of not less than U.S. $1,000,000 that, in the Calculation 

Agent’s sole judgment, is representative for a single transaction in the relevant market at the relevant time. 

 

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Reset Date: The date on which a new rate of interest on a Debt Security becomes effective. 

Reuters: Reuters Group PLC or any successor service. 

Reuters USAUCTION10 Page: The display designated as “USAUCTION10” (or any successor page) 

provided by Reuters. 

Reuters USAUCTION11 Page: The display designated as “USAUCTION11” (or any successor page) 

provided by Reuters. 

Reuters US PRIME1 Page: The display designated as page “USPRIME1”’ (or any successor page) 

provided by Reuters 

Secured Overnight Financing Rate: The secured overnight financing rate published by the FRBNY on 

the FRBNY’s Website. 

Social Debt Securities: Debt Securities that are designated as Social Debt Securities in the related 

Supplemental Agreement. 

SOFR: The rate determined by the Calculation Agent in accordance with Section 2.07(i)(H). 

Specified Currency: The currency or currency unit in which a Debt Security may be denominated and 

in which payments of principal of and interest on a Debt Security may be made. 

Specified Interest Currency: The Specified Currency provided for the payment of interest on Debt 

Securities. 

Specified Payment Currency: The term to which the Specified Interest Currency and Specified 

Principal Currency are referred collectively. 

Specified Principal Currency: The Specified Currency provided for the payment of principal on Debt 

Securities. 

Spread: A constant or variable percentage or number to be added to or subtracted from the relevant 

Index for a Variable Rate Debt Security. 

Step Debt Securities: Debt Securities that bear interest at different fixed rates during different specified 

periods. 

Sterling: British pounds sterling.

Supplemental Agreement: An agreement which, as to the related issuance of Debt Securities, 

supplements the other provisions of this Agreement and identifies and establishes the particular offering of Debt 

Securities issued in respect thereof. A Supplemental Agreement may be documented by a supplement to this 

Agreement, a Pricing Supplement, a confirmation or a terms sheet. A Supplemental Agreement may, as to any 

particular issuance of Debt Securities, modify, amend or supplement the provisions of this Agreement in any 

respect whatsoever. A Supplemental Agreement shall be effective and binding as of its publication, whether or 

not executed by Freddie Mac. 

TARGET2: The Trans-European Automated Real-Time Gross Settlement Express Transfer payment 

system which utilizes a single shared platform and which was launched on November 19, 2007. 

Treasury Auction: The most recent auction of Treasury Bills prior to a given Reset Date. 

Treasury Bills: Direct obligations of the United States. 

 

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Treasury Department: United States Department of the Treasury. 

Treasury Rate: The rate determined by the Calculation Agent in accordance with Section 2.07(i)(L). 

Treasury Rate Determination Date: The day of the week in which the Reset Date falls on which 

Treasury Bills would normally be auctioned or, if no auction is held for a particular week, the first Business Day 

of that week. Treasury Bills are normally sold at auction on Monday of each week, unless that day is a legal 

holiday, in which case the auction is normally held on the following Tuesday, except that the auction may be 

held on the preceding Friday; provided, however, that if an auction is held on the Friday of the week preceding 

the Reset Date, the Treasury Rate Determination Date will be that preceding Friday; and provided, further, that 

if the Treasury Rate Determination Date would otherwise fall on the Reset Date, that Reset Date will be 

postponed to the next succeeding Business Day. 

U.S. Government Securities Business Day: Any day except for (i) a Saturday, (ii) a Sunday, (iii) a day on 

which the Securities Industry and Financial Markets Association recommends that the fixed income 

departments of its members be closed for the entire day for purposes of trading in United States government 

securities, or (iv) a day on which the FRBNY is closed for business.

Variable Principal Repayment Amount: The principal amount determined by reference to one or more 

Indices or otherwise, payable on the applicable Maturity Date or date of redemption or repayment of a Debt 

Security, as specified in the applicable Supplemental Agreement. 

Variable Rate Debt Securities: Debt Securities that bear interest at a variable rate, and reset 

periodically, determined by reference to one or more Indices or otherwise. The formula for a variable rate may 

include a Spread. 

Yen: Japanese yen. 

Zero Coupon Debt Securities: Debt Securities that do not bear interest and may be issued at a discount 

to their principal amount. 

ARTICLE II 

Authorization; Certain Terms 

Section 2.01. Authorization. 

Debt Securities shall be issued by Freddie Mac in accordance with the authority vested in Freddie Mac 

by Section 306(a) of the Freddie Mac Act. The indebtedness represented by the Debt Securities shall be 

unsecured general obligations of Freddie Mac, or, if so provided in the applicable Supplemental Agreement, 

secured obligations of Freddie Mac. Debt Securities shall be offered from time to time by Freddie Mac in an 

unlimited amount and shall be known by the designation given them, and have the Maturity Dates stated, in the 

applicable Supplemental Agreement. Freddie Mac, in its discretion and at any time, may offer Additional Debt 

Securities having the same terms and conditions as Debt Securities previously offered. The Debt Securities may 

be issued as Reference Securities, which includes Reference Notes and Reference Bonds, or may be issued as 

any other Debt Securities denominated in U.S. dollars or other currencies, with maturities of one day or longer 

and may be in the form of Notes or Bonds or otherwise. Issuances may consist of new issues of Debt Securities 

or reopenings of an existing issue of Debt Securities. 

 

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Section 2.02. Other Debt Securities Issued Hereunder. 

Freddie Mac may from time to time create and issue Debt Securities including Convertible Debt 

Securities hereunder which contain terms and conditions not specified in this Agreement. Such Debt Securities 

shall be governed by the applicable Supplemental Agreement and, to the extent that the terms of this Agreement 

are not inconsistent with Freddie Mac’s intent in creating and issuing such Debt Securities, by the terms of this 

Agreement. Such Debt Securities shall be secured or unsecured obligations of Freddie Mac. If the Debt 

Securities are secured obligations of Freddie Mac, the provisions of Article V hereof shall apply to such Debt 

Securities. 

Section 2.03. Specified Currencies and Specified Payment Currencies. 

(a) Each Debt Security shall be denominated and payable in such Specified Currency as determined by 

Freddie Mac. Fed Book-Entry Debt Securities will be denominated and payable in U.S. dollars only. 

(b) Except under the circumstances provided in Article VI hereof, Freddie Mac shall make payments of 

any interest on Debt Securities in the Specified Interest Currency and shall make payments of the principal of 

Debt Securities in the Specified Principal Currency. The Specified Currency for the payment of interest and 

principal with respect to any Debt Security shall be set forth in the applicable Supplemental Agreement. 

Section 2.04. Minimum Denominations. 

The Debt Securities shall be issued and maintained in the minimum denominations of U.S. $1,000 and 

additional increments of U.S. $1,000 for U.S. dollar denominated Debt Securities, unless otherwise provided in 

the applicable Supplemental Agreement and as may be allowed or required from time to time by the relevant 

regulatory authority or any laws or regulations applicable to the relevant Specified Currency. In the case of Zero 

Coupon Debt Securities, denominations will be expressed in terms of the principal amount payable on the 

Maturity Date. 

Section 2.05. Maturity. 

(a) Each Debt Security shall mature on its Maturity Date, as provided in the applicable Supplemental 

Agreement, unless redeemed at the option of Freddie Mac or repaid at the option of the Holder prior thereto in 

accordance with the provisions described under Section 2.06. Debt Securities may be issued with minimum or 

maximum maturities allowed or required from time to time by the relevant regulatory or stock exchange 

authority or clearing systems or any laws or regulations applicable to the Specified Currency. 

(b) If so provided in the applicable Supplemental Agreement, certain Debt Securities may have 

provision permitting their Beneficial Owner to elect to extend the initial Maturity Date specified in such 

Supplemental Agreement, or any later date to which the maturity of such Debt Securities has been extended, on 

specified dates. However, the maturity of such Debt Securities may not be extended beyond the final Maturity 

Date specified in the Supplemental Agreement. 

(c) The principal amount payable on the Maturity Date of a Debt Security shall be a Fixed Principal 

Repayment Amount or a Variable Principal Repayment Amount, in each case as provided in the applicable 

Supplemental Agreement. 

Section 2.06. Optional Redemption and Optional Repayment.

(a) The Supplemental Agreement for any particular issue of Debt Securities shall provide whether such 

Debt Securities may be redeemed at Freddie Mac’s option or repayable at the Holder’s option, in whole or in 

part, prior to their Maturity Date. If so provided in the applicable Supplemental Agreement, an issue of Debt 

Securities shall be subject to redemption at the option of Freddie Mac, or repayable at the option of the Holders, 

in whole or in part, on one or more specified dates, at any time on or after a specified date, or during one or 

 

9
more specified periods of time. The redemption or repayment price for such Debt Securities (or such part of 

such Debt Securities as is redeemed or repaid) shall be an amount provided in, or determined in a manner 

provided in, the applicable Supplemental Agreement, together with accrued and unpaid interest to the date fixed 

for redemption or repayment. 

(b) Unless otherwise provided in the applicable Supplemental Agreement, notice of optional redemption 

shall be given to Holders of the related Debt Securities not less than 5 Business Days prior to the date of 

redemption in the manner provided in Section 7.07. The date that we provide such notice constitutes the first 

Business Day for purposes of this minimum notice period. Freddie Mac also announces its intent to redeem 

certain Debt Securities on the Freddie Mac website at http://www.freddiemac.com/debt/html/

redemption_release.html. 

(c) In the case of a partial redemption of an issue of Fed Book-Entry Debt Securities by Freddie Mac, 

such Fed Book-Entry Debt Securities shall be redeemed pro rata. In the case of a partial redemption of an issue 

of Registered Debt Securities by Freddie Mac, one or more of such Registered Debt Securities shall be reduced 

by the Global Agent in the amount of such redemption, subject to the principal amount of such Registered Debt 

Securities after redemption remaining in an authorized denomination. The effect of any partial redemption of an 

issue of Registered Debt Securities on the Beneficial Owners of such Registered Debt Securities will depend on 

the procedures of the applicable clearing system and, if such Beneficial Owner is not a participant therein, on 

the procedures of the participant through which such Beneficial Owner owns its interest.

(d) If so provided in the applicable Supplemental Agreement, certain Debt Securities shall be repayable, 

in whole or in part, by Freddie Mac at the option of the relevant Holders thereof or otherwise, on one or more 

specified dates, at any time on or after a specified date, or during one or more specified periods of time, upon 

terms and procedures provided in the applicable Supplemental Agreement. Unless otherwise provided in the 

applicable Supplemental Agreement, in the case of a Registered Debt Security, to exercise such option, the 

Holder shall deposit with the Global Agent (i) such Registered Debt Security; and (ii) a duly completed notice 

of optional repayment in the form obtainable from the Global Agent, in each case not more than the number of 

days nor less than the number of days specified in the applicable Supplemental Agreement prior to the date 

fixed for repayment. Unless otherwise specified in the applicable Supplemental Agreement, no such Registered 

Debt Security (or notice of repayment) so deposited may be withdrawn without the prior consent of Freddie 

Mac or the Global Agent. Unless otherwise provided in the applicable Supplemental Agreement, in the case of a 

Fed Book-Entry Debt Security, if the Beneficial Owner wishes to exercise such option, then the Beneficial 

Owner shall give notice thereof to Freddie Mac through the relevant Holding Institution as provided in the 

applicable Supplemental Agreement. 

(e) The principal amount payable upon redemption or repayment of a Debt Security shall be a Fixed 

Principal Repayment Amount or a Variable Principal Repayment Amount, in each case as provided in the 

applicable Supplemental Agreement. 

Section 2.07. Payment Terms of the Debt Securities. 

(a) Debt Securities shall bear interest at one or more fixed rates or variable rates or may not bear interest. 

If so provided in the applicable Supplemental Agreement, Debt Securities may be separated by a Holder into 

one or more Interest Components and Principal Components. The Offering Circular or the applicable 

Supplemental Agreement for such Debt Securities shall specify the procedure for stripping such Debt Securities 

into such Interest and Principal Components. 

(b) The applicable Supplemental Agreement shall specify the frequency with which interest, if any, is 

payable on the related Debt Securities. Interest on Debt Securities shall be payable in arrears on the Interest 

Payment Dates specified in the applicable Supplemental Agreement and on each Principal Payment Date. 

 

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(c) Each issue of interest-bearing Debt Securities shall bear interest during each Interest Payment Period. 

No interest on the principal of any Debt Security will accrue on or after the Principal Payment Date on which 

such principal is repaid. 

(d) The determination by the Calculation Agent of the interest rate on, or any Index in relation to, a 

Variable Rate Debt Security and the determination of any payment on any Debt Security (or any interim 

calculation in the determination of any such interest rate, index or payment) shall, absent manifest error, be final 

and binding on all parties. If a principal or interest payment error occurs, Freddie Mac may correct it by 

adjusting payments to be made on later Interest Payment Dates or Principal Payment Dates (as appropriate) or 

in any other manner Freddie Mac considers appropriate. If the source of an Index changes in format, but the 

Calculation Agent determines that the Index source continues to disclose the information necessary to determine 

the related interest rate substantially as required, the Calculation Agent will amend the procedure for obtaining 

information from that source to reflect the changed format. All Index values used to determine principal or 

interest payments are subject to correction within 30 days from the applicable payment. The source of a 

corrected value must be the same source from which the original value was obtained. A correction might result 

in an adjustment on a later date to the amount paid to the Holder. 

(e) Payments on Debt Securities shall be rounded, in the case of U.S. dollars, to the nearest cent or, in 

the case of a Specified Payment Currency other than U.S. dollars, to the nearest smallest transferable unit (with 

one-half cent or unit being rounded upwards). 

(f) In the event that any jurisdiction imposes any withholding or other tax on any payment made by 

Freddie Mac (or our agent or any other person potentially required to withhold) with respect to a Debt Security, 

Freddie Mac (or our agent or such other person) will deduct the amount required to be withheld from such 

payment, and Freddie Mac (or our agent or such other person) will not be required to pay additional interest or 

other amounts, or redeem or repay the Debt Securities prior to the applicable Maturity Date, as a result. 

(g) Fixed Rate Debt Securities 

Fixed Rate Debt Securities shall bear interest at a single fixed interest rate. The applicable Supplemental 

Agreement shall specify the fixed interest rate per annum on a Fixed Rate Debt Security. Unless otherwise 

specified in the applicable Supplemental Agreement, interest on a Fixed Rate Debt Security shall be computed 

on the basis of a 360-day year consisting of twelve 30-day months.

(h) Step Debt Securities 

Step Debt Securities shall bear interest from their Issue Date to a specified date at their initial fixed 

interest rate and from that date to their Maturity Date at one or more different fixed interest rates that shall be 

prescribed as of the Issue Date. A Step Debt Security will have one or more step periods. The applicable 

Supplemental Agreement shall specify the fixed interest rate per annum payable on Step Debt Securities for 

each related period from issuance to maturity. Unless otherwise specified in the applicable Supplemental 

Agreement, interest on a Step Debt Security shall be computed on the basis of a 360-day year consisting of 

twelve 30-day months. 

(i) Variable Rate Debt Securities 

(A) Variable Rate Debt Securities shall bear interest at a variable rate determined on the basis of a direct 

or an inverse relationship to one or more specified Indices or otherwise, (x) plus or minus a Spread, if 

any, or (y) multiplied by one or more Leverage or Deleverage Factors, if any, as specified in the 

applicable Supplemental Agreement. Variable Rate Debt Securities also may bear interest in any other 

manner described in the applicable Supplemental Agreement. 

(B) Variable Rate Debt Securities may have a Cap and/or a Floor. 

 

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(C) The applicable Supplemental Agreement shall specify the accrual method (i.e., the day count 

convention) for calculating interest or any relevant accrual factor on the related Variable Rate Debt 

Securities. The accrual method may incorporate one or more of the following defined terms: 

“Actual/360” shall mean that interest or any other relevant accrual factor shall be calculated on 

the basis of the actual number of days elapsed in a year of 360 days. 

“Actual/365 (fixed)” shall mean that interest or any other relevant accrual factor shall be 

calculated on the basis of the actual number of days elapsed in a year of 365 days, regardless of whether 

accrual or payment occurs during a calendar leap year.

“Actual/Actual” shall mean, unless otherwise indicated in the applicable Supplemental 

Agreement, that interest or any other relevant accrual factor shall be calculated on the basis of (x) the 

actual number of days elapsed in the Interest Payment Period divided by 365, or (y) if any portion of the 

Interest Payment Period falls in a calendar leap year, (A) the actual number of days in that portion divided 

by 366 plus (B) the actual number of days in the remaining portion divided by 365. If so indicated in the 

applicable Supplemental Agreement, “Actual/Actual” shall mean interest or any other relevant accrual 

factor shall be calculated in accordance with the definition of “Actual/Actual” adopted by the 

International Securities Market Association (“Actual/Actual (ISMA)”), which means a calculation on 

the basis of the following: 

(1) where the number of days in the relevant Interest Payment Period is equal to or shorter than the 

Determination Period during which such Interest Payment Period ends, the number of days in such 

Interest Payment Period divided by the product of (A) the number of days in such Determination 

Period and (B) the number of Interest Payment Dates that would occur in one calendar year; or 

(2) where the Interest Payment Period is longer than the Determination Period during which the 

Interest Payment Period ends, the sum of (A) the number of days in such Interest Payment Period 

falling in the Determination Period in which the Interest Payment Period begins divided by the 

product of (X) the number of days in such Determination Period and (Y) the number of Interest 

Payment Dates that would occur in one calendar year; and (B) the number of days in such Interest 

Payment Period falling in the next Determination Period divided by the product of (X) the number 

of days in such Determination Period and (Y) the number of Interest Payment Dates that would 

occur in one calendar year. 

(D) The applicable Supplemental Agreement shall specify the frequency with which the rate of interest 

on the related Variable Rate Debt Securities shall reset. The applicable Supplemental Agreement also 

shall specify the Reset Date. If the interest rate will reset within an Interest Payment Period, then the 

interest rate in effect on the sixth Business Day preceding an Interest Payment Date will be the interest 

rate for the remainder of that Interest Payment Period and the first day of each Interest Payment Period 

also will be a Reset Date. Variable Rate Debt Securities may bear interest prior to the initial Reset Date at 

an initial interest rate, if any, specified in the applicable Supplemental Agreement. If so, then the first day 

of the first Interest Payment Period will not be a Reset Date. The rate of interest applicable to each 

Interest Reset Period shall be determined as provided below or in the applicable Supplemental 

Agreement. 

Except for a Variable Rate Debt Security as to which the rate of interest thereon is determined by 

reference to SOFR, Prime Rate, Treasury Rate, CMT Rate, or Federal Funds Rate (Daily) or as otherwise 

set forth in the applicable Supplemental Agreement, the Determination Date for a Variable Rate Debt 

Security means the second Business Day preceding the Reset Date applicable to an Interest Reset Period. 

 

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(E) If the rate of interest on a Variable Rate Debt Security is subject to adjustment within an Interest 

Payment Period, accrued interest shall be calculated by multiplying the principal amount of such Variable 

Rate Debt Security by an accrued interest factor. Unless otherwise specified in the applicable 

Supplemental Agreement, this accrued interest factor shall be computed by adding the interest factor 

calculated for each Interest Reset Period in such Interest Payment Period and rounding the sum to nine 

decimal places. The interest factor for each such Interest Reset Period shall be computed by (1) 

multiplying the number of days in the Interest Reset Period by the interest rate (expressed as a decimal) 

applicable to such Interest Reset Period; and (2) dividing the product by the number of days in the year 

referred to in the accrual method specified in the applicable Supplemental Agreement. 

(F) For each issue of Variable Rate Debt Securities, the Calculation Agent shall also cause the interest 

rate for the applicable Interest Reset Period and the amount of interest accrued on the minimum 

denomination specified for such issue to be made available to Holders as soon as practicable after its 

determination but in no event later than two Business Days thereafter. Such interest amounts so made 

available may subsequently be amended (or appropriate alternative arrangements made by way of 

adjustment) without notice in the event of an extension or shortening of the Interest Reset Period. 

(G) If the applicable Supplemental Agreement specifies SOFR as the applicable Index for determining 

the rate of interest for the related Variable Rate Debt Security, the following provisions shall apply 

(unless otherwise specified in the applicable Supplemental Agreement): 

“SOFR” means the Secured Overnight Financing Rate published by the FRBNY on the FRBNY’s 

Website. With respect to any U.S. Government Securities Business Day: 

(1) the Secured Overnight Financing Rate published for such U.S. Government Securities Business 

Day as such rate appears on the FRBNY’s Website at 3:00 p.m. (New York time) on the 

immediately following U.S. Government Securities Business Day (the “SOFR Determination 

Time”); 

(2) if the rate specified in (1) above does not so appear, the Secured Overnight Financing Rate as 

published in respect of the first preceding U.S. Government Securities Business Day for which the 

Secured Overnight Financing Rate was published on the FRBNY’s Website; 

“Compounded SOFR” means the rate of return of a daily compound interest investment computed 

in accordance with the following formula (and the resulting percentage will be rounded, if necessary, to 

the nearest one hundred-thousandth of a percentage point, with 0.000005 being rounded upwards to 

0.00001): 

where, for purposes of applying the above formula: 

“d0,” for any Observation Period, is the number of U.S. Government Securities Business Days in 

the relevant Observation Period; 

“i” is a series of whole numbers from one to d0, each representing the relevant U.S. Government 

Securities Business Day in chronological order from, and including, the first U.S. Government Securities 

Business Day in the relevant Observation Period; 

 

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“SOFRi

,” for any U.S. Government Securities Business Day “i” in the relevant Observation Period, 

is equal to SOFR in respect of that day “i”;

“ni,” for any U.S. Government Securities Business Day “i” in the relevant Observation Period, is 

the number of calendar days from, and including, such U.S. Government Securities Business Day “i” to, 

but excluding, the following U.S. Government Securities Business Day (“i+1”); and 

“d” is the number of calendar days in the relevant Observation Period. 

The following definitions solely apply to the preceding description of SOFR and Compounded 

SOFR: 

“FRBNY’s Website” means the website of the FRBNY, currently at http://www.newyorkfed.org, 

or any successor source. 

“Observation Period” means, in respect of each Interest Period, the period from, and including, 

the date two U.S. Government Securities Business Days preceding the first date in such Interest Period to, 

but excluding, the date two U.S. Government Securities Business Days preceding the Interest Payment 

Date for such Interest Period. 

“U.S. Government Securities Business Day” means any day except for a Saturday, a Sunday or a 

day on which the Securities Industry and Financial Markets Association recommends that the fixed 

income departments of its members be closed for the entire day for purposes of trading in U.S. 

government securities. 

Effect of Benchmark Transition Event — SOFR 

Benchmark Replacement. Notwithstanding the foregoing, if Freddie Mac determines on or prior to 

the relevant Reference Time that a Benchmark Transition Event and its related Benchmark Replacement Date 

have occurred with respect to the then-current Benchmark, the Benchmark Replacement will replace the thencurrent Benchmark for all purposes relating to the notes in respect of all determinations on such date and for all 

determinations on all subsequent dates. 

Benchmark Replacement Conforming Changes. In connection with the implementation of a 

Benchmark Replacement, Freddie Mac will have the right to make Benchmark Replacement Conforming 

Changes from time to time. 

Decisions and Determinations. Any determination, decision or election that may be made by 

Freddie Mac pursuant to this Section titled “Effect of Benchmark Transition Event — SOFR,” including any 

determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, 

circumstance or date and any decision to take or refrain from taking any action or any selection, will be 

conclusive and binding absent manifest error, may be made in Freddie Mac’s sole discretion, and, 

notwithstanding anything to the contrary in the documentation relating to the Debt Securities, shall become 

effective without consent from any other party. 

Certain Defined Terms. As used in this Section titled “Effect of Benchmark Transition Event — 

SOFR,” and solely for purposes of this section: 

“Benchmark” means, initially, SOFR, as such term is defined in Section titled “SOFR”; provided 

that if Freddie Mac determines on or prior to the Reference Time that a Benchmark Transition Event and its 

related Benchmark Replacement Date have occurred with respect to SOFR or the then-current Benchmark, then 

“Benchmark” means the applicable Benchmark Replacement.

 

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“Benchmark Replacement” means the first alternative set forth in the order below that can be 

determined by Freddie Mac as of the Benchmark Replacement Date. 

(1) the sum of: (a) the alternate rate of interest that has been selected or recommended by the 

Relevant Governmental Body as the replacement for the then-current Benchmark and (b) the 

Benchmark Replacement Adjustment; 

(2) the sum of: (a) the ISDA Fallback Rate and (b) the Benchmark Replacement Adjustment; or 

(3) the sum of: (a) the alternate rate of interest that has been selected by Freddie Mac as the 

replacement for the then-current Benchmark giving due consideration to any industry-accepted rate 

of interest as a replacement for the then-current Benchmark for U.S. dollar-denominated floating 

rate notes at such time and (b) the Benchmark Replacement Adjustment. 

“Benchmark Replacement Adjustment” means the first alternative set forth in the order below 

that can be determined by Freddie Mac as of the Benchmark Replacement Date: 

(1) the spread adjustment (which may be a positive or negative value or zero), or method for 

calculating or determining such spread adjustment, that has been selected or recommended by the 

Relevant Governmental Body for the applicable Unadjusted Benchmark Replacement; 

(2) if the applicable Unadjusted Benchmark Replacement is equivalent to the ISDA Fallback Rate, 

the ISDA Fallback Adjustment; or 

(3) the spread adjustment (which may be a positive or negative value or zero) that has been selected 

by Freddie Mac giving due consideration to any industry-accepted spread adjustment, or method for 

calculating or determining such spread adjustment, for the replacement of the then-current 

Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. dollar- denominated 

floating rate notes at such time. 

“Benchmark Replacement Conforming Changes” means, with respect to any Benchmark 

Replacement, any technical, administrative or operational changes (including changes to the timing and 

frequency of determining rates and making payments of interest, rounding of amounts or tenors, and other 

administrative matters) that Freddie Mac decides may be appropriate to reflect the adoption of such Benchmark 

Replacement in a manner substantially consistent with market practice (or, if Freddie Mac decides that adoption 

of any portion of such market practice is not administratively feasible or if Freddie Mac determines that no 

market practice for use of the Benchmark Replacement exists, in such other manner as Freddie Mac determines 

is reasonably necessary). 

“Benchmark Replacement Date” means the earliest to occur of the following events with respect 

to the then-current Benchmark (including the daily published component used in the calculation thereof): 

(1) in the case of clause (1) or (2) of the definition of “Benchmark Transition Event,” the later of (a) 

the date of the public statement or publication of information referenced therein and (b) the date on 

which the administrator of the Benchmark permanently or indefinitely ceases to provide the 

Benchmark (or such component); or 

(2) in the case of clause (3) of the definition of “Benchmark Transition Event,” the date of the 

public statement or publication of information referenced therein.

For the avoidance of doubt, if the event that gives rise to the Benchmark Replacement Date occurs 

on the same day as, but earlier than, the Reference Time in respect of any determination, the Benchmark 

Replacement Date will be deemed to have occurred prior to the Reference Time for such determination. 

 

15
“Benchmark Transition Event” means the occurrence of one or more of the following events with 

respect to the then-current Benchmark (including the daily published component used in the calculation 

thereof): 

(1) a public statement or publication of information by or on behalf of the administrator of the 

Benchmark (or such component) announcing that such administrator has ceased or will cease to 

provide the Benchmark (or such component), permanently or indefinitely, provided that, at the time 

of such statement or publication, there is no successor administrator that will continue to provide 

the Benchmark (or such component); or 

(2) a public statement or publication of information by the regulatory supervisor for the 

administrator of the Benchmark (or such component), the central bank for the currency of the 

Benchmark (or such component), an insolvency official with jurisdiction over the administrator for 

the Benchmark (or such component), a resolution authority with jurisdiction over the administrator 

for the Benchmark (or such component) or a court or an entity with similar insolvency or resolution 

authority over the administrator for the Benchmark, which states that the administrator of the 

Benchmark (or such component) has ceased or will cease to provide the Benchmark (or such 

component) permanently or indefinitely, provided that, at the time of such statement or publication, 

there is no successor administrator that will continue to provide the Benchmark (or such 

component); or 

(3) a public statement or publication of information by the regulatory supervisor for the 

administrator of the Benchmark announcing that the Benchmark is no longer representative. 

“ISDA Definitions” means the 2006 ISDA Definitions published by the International Swaps and 

Derivatives Association, Inc. or any successor thereto, as amended or supplemented from time to time, or any 

successor definitional booklet for interest rate derivatives published from time to time.

“ISDA Fallback Adjustment” means the spread adjustment (which may be a positive or negative 

value or zero) that would apply for derivatives transactions referencing the ISDA Definitions to be determined 

upon the occurrence of an index cessation event with respect to the Benchmark. 

“ISDA Fallback Rate” means the rate that would apply for derivatives transactions referencing the 

ISDA Definitions to be effective upon the occurrence of an index cessation date with respect to the Benchmark 

for the applicable tenor excluding the applicable ISDA Fallback Adjustment. 

“Reference Time” with respect to any determination of the Benchmark means (1) if the 

Benchmark is Compounded SOFR, the SOFR Determination Time, and (2) if the Benchmark is not 

Compounded SOFR, the time determined by Freddie Mac after giving effect to the Benchmark Replacement 

Conforming Changes. 

“Relevant Governmental Body” means the Federal Reserve Board and/or the Federal Reserve 

Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board and/or the 

Federal Reserve Bank of New York or any successor thereto.

“Unadjusted Benchmark Replacement” means the Benchmark Replacement excluding the 

Benchmark Replacement Adjustment. 

(H) If the applicable Supplemental Agreement specifies the Prime Rate as the applicable Index for determining 

the rate of interest for the related Variable Rate Debt Securities, the following provisions shall apply: 

The “Prime Rate” means, with respect to any Reset Date (in the following order of priority): 

 

16
(1) the rate for the Prime Rate Determination Date, as published in H.15 or other recognized 

electronic source used for the purpose of displaying that rate opposite the caption “Bank prime 

loan”; 

(2) if the rate is not published in H.15 by 5:00 p.m., New York City time, on the Reset Date, then 

the Prime Rate will be the arithmetic mean, determined by the Calculation Agent, of the rates (after 

eliminating certain rates, as described below in this clause (2)) that appear, at 11:00 a.m., New York 

City time, on the Prime Rate Determination Date, on Reuters USPRIME1 Page as the U.S. dollar 

prime rate or base lending rate of each bank appearing on that page; provided, that at least three 

rates appear. In determining the arithmetic mean: 

(i) if 20 or more rates appear, the highest five rates (or in the event of equality, five of the 

highest) and the lowest five rates (or in the event of equality, five of the lowest) will be 

eliminated, 

(ii) if fewer than 20 but 10 or more rates appear, the highest two rates (or in the event of 

equality, two of the highest) and the lowest two rates (or in the event of equality, two of the 

lowest) will be eliminated, or 

(iii) if fewer than 10 but five or more rates appear, the highest rate (or in the event of 

equality, one of the highest) and the lowest rate (or in the event of equality, one of the 

lowest) will be eliminated; 

(3) if fewer than three rates so appear on Reuters USPRIME1 Page pursuant to clause (2) above, 

then the Calculation Agent will request five major banks in the City of New York selected by the 

Calculation Agent (after consultation with Freddie Mac, if Freddie Mac is not then acting as 

Calculation Agent) to provide a quotation of such banks’ U.S. dollar prime rates or base lending 

rates on the basis of the actual number of days in the year divided by 360 as of the close of business 

on the Prime Rate Determination Date. If at least three quotations are provided, then the Prime Rate 

will be the arithmetic mean determined by the Calculation Agent of the quotations obtained (and, if 

five quotations are provided, eliminating the highest quotation (or in the event of equality, one of 

the highest) and the lowest quotation (or in the event of equality, one of the lowest)); 

(4) if fewer than three quotations are so provided pursuant to clause (3) above, the Calculation 

Agent will request five banks or trust companies organized and doing business under the laws of the 

United States or any state, each having total equity capital of at least U.S. $500,000,000 and being 

subject to supervision or examination by federal or state authority, selected by the Calculation 

Agent (after consultation with Freddie Mac, if Freddie Mac is not then acting as Calculation 

Agent), to provide a quotation of such banks’ or trust companies’ U.S. dollar prime rates or base 

lending rates on the basis of the actual number of days in the year divided by 360 as of the close of 

business on the Prime Rate Determination Date. In making such selection of five banks or trust 

companies, the Calculation Agent will include each bank, if any, that provided a quotation as 

requested in clause (3) above and exclude each bank that failed to provide a quotation as requested 

in clause (3). If at least three quotations are provided, then the Prime Rate will be the arithmetic 

mean determined by the Calculation Agent of the quotations obtained; and 

(5) if fewer than three quotations are so provided pursuant to clause (4) above, then the Prime Rate 

will be the Prime Rate determined for the immediately preceding Reset Date. If the applicable Reset 

Date is the first Reset Date, then the Prime Rate will be the rate calculated pursuant to clause (1) for 

the most recent New York Banking Day preceding the Reset Date for which such rate was 

published in H.15. 

 

17
(I) If the applicable Supplemental Agreement specifies the Treasury Rate as the applicable Index for 

determining the rate of interest for the related Variable Rate, the following provisions shall apply: 

The “Treasury Rate” means, with respect to any Reset Date (in the following order of priority): 

(1) the rate for the Treasury Rate Determination Date of Treasury Bills having the Index Maturity, 

as published in H.15, or other recognized electronic source used for the purpose of displaying that 

rate under the caption “U.S. government securities/Treasury bills (secondary market)”; 

(2) if the rate described in clause (1) above is not so published by 3.00 p.m., New York City time, 

on the Reset Date, then the rate from Treasury Auction of Treasury Bills having the Index Maturity, 

as that rate appears under the caption “INVEST RATE” on the display on Reuters USAUCTION10 

Page or Reuters USAUCTION11 Page; 

(3) if the rate described in clause (2) above is not published by 5:00 p.m., New York City time, on 

the Reset Date, then the auction average rate for Treasury Bills having the Index Maturity obtained 

from the applicable Treasury Auction as announced by the Treasury Department in the form of a 

press release under the heading “Investment Rate” by 5:00 p.m. on such Reset Date; 

(4) if the rate described in clause (3) above is not so announced by the Treasury Department by 

5:00 p.m., New York City time, on the Reset Date, then auction average rate obtained from the 

Treasury Auction of the applicable Treasury Bills, as otherwise announced by the Treasury 

Department by 5:00 p.m., New York City time, on the Reset Date as determined by the Calculation 

Agent; 

(5) if such rate described in clause (4) is not so announced by the Treasury Department by 5:00 

p.m., New York City time, on the Reset Date, the Calculation Agent will request five leading 

primary United States government securities dealers in the City of New York selected by the 

Calculation Agent (after consultation with Freddie Mac, if Freddie Mac is not then acting as 

Calculation Agent) to provide a quotation of such dealers’ secondary market bid yields, as of 3:00 

p.m. on the Reset Date, for Treasury Bills with a remaining maturity closest to the Index Maturity 

(or, in the event that the remaining maturities are equally close, the longer remaining maturity). If at 

least three quotations are provided, then the Treasury Rate will be the arithmetic mean determined 

by the Calculation Agent of the quotations obtained; and

(6) if fewer than three quotations are so provided pursuant to clause (5) above, then the Treasury 

Rate for the immediately preceding Reset Date. If the applicable Reset Date is the first Reset Date, 

then the Treasury Rate will be the auction average rate for Treasury Bills having the Index Maturity 

from the most recent auction of Treasury Bills prior to the Reset Date for which such rate was 

announced by the Treasury Department in the form of a press release under the heading 

“Investment Rate.” 

The rate (including the auction average rate) for Treasury Bills and the secondary market bid yield for 

Treasury Bills will be obtained and expressed as a bond equivalent on the basis of a year of 365 or 366 days, as 

applicable (or, if not so expressed, will be converted by the Calculation Agent to such a bond equivalent yield). 

(J) If the applicable Supplemental Agreement specifies the CMT Rate as the applicable Index for 

determining the rate of interest for the related Variable Rate, the following provisions shall apply: 

The “CMT Rate” means, with respect to any Reset Date (in the following order of priority): 

(1) for any CMT Determination Date, the daily rate for the Index Maturity that appears on page 

“FRBCMT” on Reuters (or any other page that replaces the FRBCMT page on that service or any 

 

18
successor service) under the heading “...Treasury Constant Maturities. Federal Reserve Board 

Release H.15...Mondays Approximately 3:45 p.m.”; 

(2) if the applicable rate described in clause (1) is not displayed on Reuters page FRBCMT at 3:45 

p.m., New York City time, on the CMT Determination Date, then the CMT Rate will be the 

Treasury constant maturity rate for the Index Maturity applicable for the CMT Determination Date 

as published in H.15; 

(3) if the CMT Rate is not determined pursuant to clause (1) and the applicable rate described in 

clause (2) does not appear in H.15 at 3:45 p.m., New York City time, on the CMT Determination 

Date, then the CMT Rate will be the Treasury constant maturity rate, or other U.S. Treasury rate, 

applicable to an Index Maturity with reference to the CMT Determination Date, that: 

(i) is published by the Federal Reserve or the Treasury Department; and 

(ii) Freddie Mac has determined to be comparable to the applicable rate formerly displayed 

on the FRBCMT page on Reuters and published in H.15; 

(4) if the CMT Rate is not determined pursuant to clause (1) or (2) and the rate described in clause 

(3) above does not appear at 3:45 p.m., New York City time, on the CMT Determination Date, then 

the CMT Rate will be the yield to maturity of the arithmetic mean of the secondary market offered 

rates for U.S. Treasury securities with an original maturity of approximately the Index Maturity and 

a remaining term to maturity of no more than one year shorter than the Index Maturity, and in a 

Representative Amount, as of approximately 3:45 p.m., New York City time, on the CMT 

Determination Date, as quoted by three primary U.S. government securities dealers in New York 

City that Freddie Mac selects. In selecting these offered rates, Freddie Mac will request quotations 

from five primary dealers and will disregard the highest quotation or, if there is equality, one of the 

highest and the lowest quotation or, if there is equality, one of the lowest. If two U.S. Treasury 

securities with an original maturity longer than the Index Maturity have remaining terms to maturity 

that are equally close to the Index Maturity, Freddie Mac will obtain quotations for the U.S. 

Treasury security with the shorter remaining term to maturity;

(5) if the CMT Rate is not determined pursuant to clause (1), (2) or (3) and fewer than five but 

more than two primary dealers are quoting offered rates as described in clause (4), then the CMT 

Rate for the CMT Determination Date will be based on the arithmetic mean of the offered rates so 

obtained, and neither the highest nor the lowest of those quotations will be disregarded; 

(6) if the CMT Rate is not determined pursuant to clause (1), (2), (3) or (4) and two or fewer 

primary dealers are quoting offered rates as described in clause (5), then the CMT Rate will be the 

yield to maturity of the arithmetic mean of the secondary market offered rates for U.S. Treasury 

securities having an original maturity longer than the Index Maturity and a remaining term to 

maturity closest to the Index Maturity, and in a Representative Amount, as of approximately 3:45 

p.m., New York City time, on the CMT Determination Date, as quoted by three primary U.S. 

government securities dealers in New York City that Freddie Mac selects. In selecting these offered 

rates, Freddie Mac will request quotations from five primary dealers and will disregard the highest 

quotation, or, if there is equality, one of the highest and the lowest quotation or, if there is equality, 

one of the lowest; 

(7) if the CMT Rate is not determined pursuant to clauses (1) through (6) above and fewer than 

five but more than two primary dealers are quoting offered rates as described in clause (6), then the 

CMT Rate for the CMT Determination date will be based on the arithmetic mean of the offered 

rates so obtained, and neither the highest nor the lowest of those quotations will be disregarded; 

 

19
(8) if the Calculation Agent obtains fewer than three quotations of the kind described in clause (6), 

the CMT Rate in effect for the new Interest Reset Period will be the CMT Rate in effect for the 

prior Interest Reset Period, or if the applicable Reset Date is the first Reset Date, the rate of interest 

payable for the new Interest Reset Period will be the initial interest rate; and 

(9) if the CMT Rate in its present form ceases to exist and the provisions described in this 

Agreement for determining a fallback rate are found to be unreliable or result in a fallback rate that 

is not comparable to the CMT Rate, Freddie Mac, as the Calculation Agent, is authorized to 

designate an alternative determination method or index to the CMT Rate. If, prior to the time the 

CMT Rate may cease to exist, a new industry standard index is adopted, the Calculation Agent may 

elect, in its sole discretion, to use such standard index in lieu of the CMT Rate. If the Calculation 

Agent has designated an alternative determination method or index to the CMT Rate in accordance 

with the foregoing, the Calculation Agent in its sole discretion may determine the business day 

convention, the definition of business day and the interest determination date to be used and any 

other relevant methodology, including any adjustment factor needed to make such alternative 

determination method or index comparable to the CMT Rate base rate, in a manner that is 

consistent with industry-accepted practices. The Calculation Agent’s designation of an alternative 

determination method or index as described herein will be final and binding on all parties. 

(K) If the applicable Supplemental Agreement specifies the Federal Funds Rate (Daily) as the applicable 

Index for determining the rate of interest for the related Variable Rate, the following provisions shall apply:

The “Federal Funds Rate (Daily)” means, with respect to any Reset Date:

(1) the rate for the Business Day preceding the Federal Funds Rate (Daily) Determination Date for 

U.S. dollar federal funds, as published in the latest H.15 or other recognized electronic source used 

for the purpose of displaying that rate opposite the caption “Federal funds (effective)”; 

(2) if the rate specified in clause (1) is not published by 5:00 p.m., New York City time, on the 

Federal Funds Rate Determination Date, then the Calculation Agent will request five leading 

brokers (which may include the related Dealers or their affiliates) of federal funds transactions in 

the City of New York selected by the Calculation Agent (after consultation with Freddie Mac, if 

Freddie Mac is not then acting as Calculation Agent) each to provide a quotation of the broker’s 

effective rate for transactions in overnight federal funds arranged by the broker settling on the 

Business Day preceding the Federal Funds Rate (Daily) Determination Date. If at least two 

quotations are provided, then the Federal Funds Rate (Daily) will be the arithmetic mean 

determined by the Calculation Agent of the quotations obtained (and, if five quotations are 

provided, eliminating the highest quotation (or, in the event of equality, one of the highest) and the 

lowest quotation (or, in the event of equality, one of the lowest)); 

(3) if fewer than two quotations are so provided pursuant to clause (2) above, then the Calculation 

Agent will request five leading brokers (which may include the related Dealers or their affiliates) of 

federal funds transactions in the City of New York selected by the Calculation Agent (after 

consultation with Freddie Mac, if Freddie Mac is not then acting as Calculation Agent) each to 

provide a quotation of the broker’s rates for the last transaction in overnight federal funds arranged 

by the broker as of 11:00 a.m., New York City time, on the Business Day preceding the Federal 

Funds Rate (Daily) Determination Date. If at least two quotations are provided, then the Federal 

Funds Rate (Daily) will be the arithmetic mean determined by the Calculation Agent of the 

quotations obtained (and, if five quotations are provided, eliminating the highest quotation (or, in 

the event of equality, one of the highest) and the lowest quotation (or, in the event of equality, one 

of the lowest)); and 

 

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(4) if fewer than two quotations are so provided pursuant to clause (3) above, then the Federal 

Funds Rate (Daily) as of such Federal Funds Rate (Daily) Determination Date will be the Federal 

Funds Rate (Daily) determined for the immediately preceding Reset Date. If the applicable Reset 

Date is the first Reset Date, then the rate of interest payable for the new Interest Rate Period will be 

the initial interest rate. 

(j) Fixed/Variable Rate Debt Securities 

Fixed/Variable Rate Debt Securities shall bear interest at a single fixed rate for one or more specified 

periods and at a rate determined by reference to one or more Indices, or otherwise, for one or more other 

specified periods. Fixed/Variable Rate Debt Securities also may bear interest at a rate that Freddie Mac may 

elect to convert from a fixed rate to a variable rate or from a variable rate to a fixed rate, if so provided in the 

applicable Supplemental Agreement. 

If Freddie Mac may convert the interest rate on a Fixed/Variable Rate Debt Security from a fixed rate to 

a variable rate, or from a variable rate to a fixed rate, accrued interest for each Interest Payment Period may be 

calculated using an accrued interest factor in the manner described in Section 2.07(i)(E).

(k) Zero Coupon Debt Securities 

Zero Coupon Debt Securities shall not bear interest. 

(l) Amortizing Debt Securities 

Amortizing Debt Securities are those on which Freddie Mac makes periodic payments of principal 

during the terms of such Debt Securities as described in the related Supplemental Agreement. Amortizing Debt 

Securities may bear interest at fixed or variable rates. 

(m) Debt Securities with Variable Principal Repayment Amounts 

Variable Principal Repayment Amount Debt Securities are those on which the amount of principal 

payable is determined with reference to an Index specified in the related Supplemental Agreement. 

(n) Mortgage Linked Amortizing Debt Securities 

Mortgage Linked Amortizing Debt Securities are Amortizing Debt Securities on which Freddie Mac 

makes periodic payments of principal based on the rate of payments on referenced mortgage or mortgagerelated assets, as described in the related Supplemental Agreement. Mortgage Linked Amortizing Debt 

Securities may bear interest at fixed or variable rates. 

(o) Range Accrual Debt Securities 

Range Accrual Debt Securities are Variable Rate Debt Securities on which no interest may accrue during 

periods when the applicable Index is outside a specified range as described in the related Supplemental 

Agreement. 

(p) Extendible Variable Rate Debt Securities 

Extendible Variable Rate Debt Securities’ are Variable Rate Debt Securities, the maturity of which may 

be extended at a Beneficial Owner’s option effective as of specified dates, subject to a final maturity date, and 

that bear interest at variable rates subject to different Spreads for different specified periods, as described in the 

related Supplemental Agreement. 

 

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Section 2.08. Business Day Convention. 

Unless otherwise specified in the applicable Supplemental Agreement, in any case in which an Interest 

Payment Date or Principal Payment Date is not a Business Day, payment of any interest on or the principal of 

the Debt Securities shall not be made on such date but shall be made on the next Business Day with the same 

force and effect as if made on such Interest Payment Date or Principal Payment Date, as the case may be. 

Unless otherwise provided in the applicable Supplemental Agreement, no interest on such payment shall accrue 

for the period from and after such Interest Payment Date or Principal Payment Date, as the case may be, to the 

actual date of such payment. 

Section 2.09. Reopened Issues and Repurchases. 

Freddie Mac reserves the right, in its discretion and at any time, to offer additional Debt Securities which 

have the same terms (other than Issue Date, interest commencement date and issue price) and conditions as 

Debt Securities for which settlement has previously occurred or been scheduled so as to form a single series of 

Debt Securities as specified in the applicable Supplemental Agreement. 

Freddie Mac reserves the right, in its discretion and at any time, to purchase Debt Securities or otherwise 

acquire (either for cash or in exchange for securities) some or all of an issue of Debt Securities at any price or 

prices in the open market or otherwise. Such Debt Securities may be held, resold or canceled by Freddie Mac. 

Section 2.10. No Acceleration Rights 

The Debt Securities shall not contain any provision permitting the Holders to accelerate the maturity of 

the Debt Securities upon the occurrence of a default or other event. 

ARTICLE III 

Form; Clearance and Settlement Procedures 

Section 3.01. Form of Fed Book-Entry Debt Securities. 

(a) General 

Fed Book-Entry Debt Securities shall be issued and maintained only on the Fed Book-Entry System. Fed 

Book-Entry Debt Securities shall not be exchangeable for definitive Debt Securities. The Book-Entry Rules are 

applicable to Fed Book-Entry Debt Securities. 

(b) Title 

Fed Book-Entry Debt Securities shall be held of record only by Holding Institutions. Such entities whose 

names appear on the book-entry records of a Federal Reserve Bank as the entities to whose accounts Fed BookEntry Debt Securities have been deposited shall be the Holders of such Fed Book-Entry Debt Securities. The 

rights of the Beneficial Owner of a Fed Book-Entry Debt Security with respect to Freddie Mac and the Federal 

Reserve Banks may be exercised only through the Holder of the Fed Book-Entry Debt Security. Freddie Mac 

and the Federal Reserve Banks shall have no direct obligation to a Beneficial Owner of a Fed Book-Entry Debt 

Security that is not also the Holder of the Fed Book-Entry Debt Security. The Federal Reserve Banks shall act 

only upon the instructions of the Holder in recording transfers of a Debt Security maintained on the Fed BookEntry System. Freddie Mac and the Federal Reserve Banks may treat the Holders as the absolute owners of Fed 

Book-Entry Debt Securities for the purpose of making payments in respect thereof and for all other purposes, 

whether or not such Fed Book-Entry Debt Securities shall be overdue and notwithstanding any notice to the 

contrary. 

 

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The Holders and each other financial intermediary holding such Fed Book-Entry Debt Securities directly 

or indirectly on behalf of the Beneficial Owners shall have the responsibility of remitting payments for the 

accounts of their customers. All payments on Fed Book-Entry Debt Securities shall be subject to any applicable 

law or regulation. 

(c) Fiscal Agent 

The FRBNY shall be the Fiscal Agent for Fed Book-Entry Debt Securities. 

In acting under the Fiscal Agency Agreement, the FRBNY shall act solely as Fiscal Agent of Freddie 

Mac and does not assume any obligation or relationship of agency or trust for or with any Holder of a Fed 

Book-Entry Debt Security.

Section 3.02. Form of Registered Debt Securities. 

(a) General 

As specified in the applicable Supplemental Agreement, Registered Debt Securities shall be deposited 

with (i) a custodian for, and registered in the name of a nominee of, DTC, or (ii) a Common Depositary, and 

registered in the name of such Common Depositary or a nominee of such Common Depositary.

(b) Title 

The person in whose name a Registered Debt Security is registered in the Register shall be the Holder of 

such Registered Debt Security. Beneficial interests in a Registered Debt Security shall be represented, and 

transfers thereof shall be effected, only through book-entry accounts of financial institutions acting on behalf of 

the Beneficial Owners of such Registered Debt Security, as a direct or indirect participant in the applicable 

clearing system for such Registered Debt Security. 

Freddie Mac, the Global Agent and the Registrar may treat the Holders as the absolute owners of 

Registered Debt Securities for the purpose of making payments and for all other purposes, whether or not such 

Registered Debt Securities shall be overdue and notwithstanding any notice to the contrary. Owners of 

beneficial interests in a Registered Debt Security shall not be considered by Freddie Mac, the Global Agent or 

the Registrar as the owner or Holder of such Registered Debt Security and, except as provided in Section 

4.02(a), shall not be entitled to have Debt Securities registered in their names and shall not receive or be entitled 

to receive definitive Debt Securities. Any Beneficial Owner shall rely on the procedures of the applicable 

clearing system and, if such Beneficial Owner is not a participant therein, on the procedures of the participant 

through which such Beneficial Owner holds its interest, to exercise any rights of a Holder of such Registered 

Debt Securities. 

Payments by DTC participants to Beneficial Owners of DTC Registered Debt Securities held through 

DTC participants shall be the responsibility of such participants. Payments with respect to Other Registered 

Debt Securities held through Euroclear, Clearstream, Luxembourg or any other applicable clearing system shall 

be credited to Euroclear participants, Clearstream, Luxembourg participants or participants of any other 

applicable clearing system in accordance with the relevant system’s rules and procedures. 

(c) Global Agent 

In acting under the Global Agency Agreement, the Global Agent acts solely as a fiscal agent of Freddie 

Mac and does not assume any obligation or relationship of agency or trust for or with any Holder of a 

Registered Debt Security, except that any moneys held by the Global Agent for payment on a Registered Debt 

Security shall be held in trust for the Holder as provided in the Global Agency Agreement. 

 

23
(d) Registrar 

In acting under the Global Agency Agreement, the Registrar does not assume any obligation or 

relationship of agency or trust for, or with, any Holder of a Registered Debt Security. 

Section 3.03. Clearance and Settlement Procedures. 

(a) General 

Unless otherwise provided in the applicable Supplemental Agreement: 

(i) Most Debt Securities denominated and payable in U.S. dollars and distributed within the United 

States shall clear and settle through the Fed Book-Entry System. 

(ii) Most Debt Securities denominated and payable in U.S. dollars and distributed simultaneously within 

and outside of the United States, including all Reference Securities, shall clear and settle, within the 

United States, through the Fed Book-Entry System and, outside of the United States, through the systems 

operated by Euroclear, Clearstream, Luxembourg and/or any other designated clearing system. 

(iii) Debt Securities denominated or payable in a Specified Currency other than U.S. dollars (and Debt 

Securities denominated and payable in U.S. dollars that are not cleared and settled in accordance with 

clause (i) and (ii) above and distributed solely within the United States will clear and settle through the 

system operated by DTC. 

(iv) Debt Securities denominated or payable in a Specified Currency other than U.S. dollars (and Debt 

Securities denominated and payable in U.S. dollars that are not cleared and settled in accordance with 

clauses (i) and (ii) above) and distributed simultaneously within and outside of the United States shall 

clear and settle through the systems operated by DTC, Euroclear, Clearstream, Luxembourg and/or any 

other designated clearing system. 

(v) Debt Securities, irrespective of the Specified Currency in which such Debt Securities are 

denominated or payable, distributed solely outside of the United States shall clear and settle through the 

systems operated by Euroclear, Clearstream, Luxembourg and/or any other designated clearing system 

or, in certain cases, DTC. 

(b) Primary Distribution 

(i) General. On initial issue, Debt Securities shall be credited through one or more of the systems 

specified below or any other system specified in the applicable Supplemental Agreement. 

(ii) Federal Reserve Banks. Fed Book-Entry Debt Securities shall be issued and settled through the 

Fed-Book-Entry System in same-day funds and shall be held by designated Holding Institutions. After 

initial issue, all Fed Book-Entry Debt Securities shall continue to be held by such Holding Institutions in 

the Fed Book-Entry System unless arrangements are made for the transfer thereof to another Holding 

Institution. Fed Book-Entry Debt Securities shall not be exchangeable for definitive Debt Securities. 

(iii) DTC. DTC participants acting on behalf of investors holding DTC Registered Debt Securities 

through DTC shall follow the delivery practices applicable to securities eligible for DTC’s Same-Day 

Funds Settlement System. DTC Registered Debt Securities shall be credited to DTC participants’ 

securities accounts following confirmation of receipt of payment to Freddie Mac on the relevant Issue 

Date. 

(iv) Euroclear and Clearstream, Luxembourg. Investors holding Other Registered Debt Securities 

through Euroclear, Clearstream, Luxembourg or such other clearing system shall follow the settlement 

 

24
procedures applicable to conventional Eurobonds in registered form. Such Other Registered Debt 

Securities shall be credited to Euroclear, Clearstream, Luxembourg or such other clearing system 

participants’ securities accounts either on the relevant Issue Date or on the settlement day following the 

relevant Issue Date against payment in same-day funds (for value on the relevant Issue Date). 

(c) Secondary Market Transfers 

(i) Fed Book-Entry Debt Securities. Transfers of Fed Book-Entry Debt Securities shall take place only 

in book-entry form on the Fed Book-Entry System. Such transfers shall occur between Holding 

Institutions in accordance with the rules of the Fed Book-Entry System. 

(ii) Registered Debt Securities. Transfers of beneficial interests in Registered Debt Securities within 

the various systems that may be clearing and settling interests therein shall be made in accordance with 

the usual rules and operating procedures of the relevant system applicable to the Registered Debt 

Securities and the nature of the transfer.

(iii) Freddie Mac shall not bear responsibility for the performance by any system or the performance of 

the system’s respective direct or indirect participants or accountholders of the respective obligations of 

such participants or account holders under the rules and procedures governing such system’s operations.

ARTICLE IV 

Payments, Exchange for Definitive Debt Securities 

Section 4.01. Payments. 

(a) Payments on Fed Book-Entry Debt Securities 

Payments of principal of and any interest on Fed Book-Entry Debt Securities shall be made in U.S. 

dollars (except as otherwise provided in the applicable Supplemental Agreement) on the applicable payment 

dates to Holders thereof as of the end of the Business Day preceding each such payment date. Payments on Fed 

Book-Entry Debt Securities shall be made by credit of the payment amount to the Holders’ accounts at the 

relevant Federal Reserve Bank. All payments to or upon the order of a Holder shall be valid and effective to 

discharge the liability of Freddie Mac and the Fiscal Agent in respect of the related Fed Book-Entry Debt 

Securities. 

(b) Payments on Registered Debt Securities 

(i) Payments in respect of Registered Debt Securities shall be made in immediately available funds to 

DTC, Euroclear, Clearstream, Luxembourg or any other applicable clearing system, or their respective 

nominees, as the case may be, as the Holders thereof. Except as provided in Article VII hereof, such 

payments shall be made in the Specified Payment Currency. All payments to or upon the order of the 

Holder of a Registered Debt Security shall be valid and effective to discharge the liability of Freddie 

Mac in respect of such Registered Debt Security. Ownership positions within each system shall be 

determined in accordance with the normal conventions observed by such system. Freddie Mac, the 

Global Agent and the Registrar shall not have any responsibility or liability for any aspect of the records 

relating to or payments made on account of beneficial ownership interests in a Registered Debt Security 

or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests. 

(ii) Interest on a Registered Debt Security shall be paid on the applicable Interest Payment Date. Such 

interest payment shall be made to the Holder of such Registered Debt Security as of the close of business 

on the related Record Date. The first payment of interest on any Registered Debt Security originally 

issued between a Record Date and the related Interest Payment Date shall be made on the Interest 

Payment Date following the next Record Date to the Holder on such next Record Date. The principal of 

 

25
each Registered Debt Security, together with accrued and unpaid interest thereon, shall be paid to the 

Holder thereof against presentation and surrender of such Registered Debt Security. 

(iii) All payments on Registered Debt Securities are subject to any applicable law or regulation. If a 

payment outside the United States is illegal or effectively precluded by exchange controls or other 

similar restrictions, payments in respect of the related Registered Debt Securities shall be made at the 

office of any paying agent in the United States.

Section 4.02. Exchange for Definitive Debt Securities. 

In the event that Freddie Mac issues definitive Debt Securities in exchange for Registered Debt 

Securities issued in global form, such definitive Debt Securities shall have terms identical to the Registered 

Debt Securities for which they were exchanged except as described below. 

(a) Issuance of Definitive Debt Securities 

Unless otherwise provided in the applicable Supplemental Agreement, beneficial interests in Registered 

Debt Securities issued in global form shall be subject to exchange for definitive Debt Securities only if such 

exchange is permitted by applicable law and (i) in the case of a DTC Registered Debt Security, DTC notifies 

Freddie Mac that it is no longer willing or able to discharge properly its responsibilities as depositary with 

respect to such DTC Registered Debt Security, or ceases to be a “clearing agency” registered under the 

Securities Exchange Act of 1934 (if so required), or is at any time no longer eligible to act as such, and in each 

case Freddie Mac is unable to locate a successor within 90 calendar days of receiving notice of such ineligibility 

on the part of DTC; or (ii) in the case of any Other Registered Debt Security, if all of the systems through which 

it is cleared or settled are closed for business for a continuous period of 14 calendar days (other than by reason 

of holidays, statutory or otherwise) or are permanently closed for business or have announced an intention 

permanently to cease business and in any such situations Freddie Mac is unable to locate a single successor 

within 90 calendar days of such closure. In such circumstances, Freddie Mac shall cause sufficient definitive 

Debt Securities to be executed and delivered as soon as practicable (and in any event within 45 calendar days of 

Freddie Mac’s receiving notice of the occurrence of such circumstances) to the Global Agent or its agent for 

completion, authentication and delivery to the relevant registered holders of such definitive Debt Securities. A 

person having an interest in a DTC Registered Debt Security or Other Registered Debt Security issued in global 

form shall provide Freddie Mac or the Global Agent with a written order containing instructions and such other 

information as Freddie Mac or the Global Agent may require to complete, execute and deliver such definitive 

Debt Securities in authorized denominations. 

(b) Title 

The person in whose name a definitive Debt Security is registered in the Register shall be the “Holder” 

of such definitive Debt Security. Freddie Mac, the Global Agent and the Registrar may treat the Holders as the 

absolute owners of definitive Debt Securities for the purpose of making payments and for all other purposes, 

whether or not such definitive Debt Securities shall be overdue and notwithstanding any notice to the contrary. 

(c) Payments 

Interest on a definitive Debt Security shall be paid on the applicable Interest Payment Date. Such interest 

payments shall be made by check mailed to the Holder thereof at the close of business on the Record Date 

preceding such Interest Payment Date at such Holder’s address appearing in the Register. The principal of each 

definitive Debt Security, together with accrued and unpaid interest thereon, shall be due on the Principal 

Payment Date (subject to the right of the Holder thereof on the related Record Date to receive interest due on an 

Interest Payment Date that is on or prior to such Principal Payment Date) and shall be paid against presentation 

and surrender of such definitive Debt Security at the offices of the Global Agent or other paying agent. 

Payments on the Principal Payment Date shall be made by check provided at the appropriate office of the 

 

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Global Agent or other paying agent or mailed by the Global Agent to the Holder of such definitive Debt 

Security. U.S. dollar checks shall be drawn on a bank in the United States. Checks in a Specified Payment 

Currency other than U.S. dollars shall be drawn on a bank office located outside the United States. 

Notwithstanding the provisions described in the preceding paragraph relating to payments by check, the 

Holder of an aggregate principal amount of at least $10,000,000 of an issue of Debt Securities of which 

definitive Debt Securities form a part (or, in the case of a definitive Debt Security denominated in a Specified 

Currency other than U.S. dollars, the Specified Currency equivalent of at least $10,000,000) may elect to 

receive payments thereon by wire transfer of immediately available funds in the Specified Payment Currency to 

an account in such Specified Payment Currency with a bank designated by such Holder that is acceptable to 

Freddie Mac; provided, that such bank has appropriate facilities therefor and accepts such transfer and such 

transfer is permitted by any applicable law or regulation and will not subject Freddie Mac to any liability, 

requirement or unacceptable charge. In order for such Holder to receive such payments, the relevant paying 

agent (including the Global Agent) must receive at its office from such Holder (i) in the case of payments on an 

Interest Payment Date, a written request therefor not later than the close of business (a) on the related Record 

Date in the case of a definitive Debt Security or (b) 15 days prior to such Interest Payment Date in the case of a 

Registered Debt Security issued in the global form; or (ii) in the case of payments on the Principal Payment 

Date, a written request therefor not later than the close of business on the date 15 days prior to such Principal 

Payment Date and the related definitive Debt Security not later than two Business Days prior to such Principal 

Payment Date. Such written request must be delivered to the relevant paying agent (including the Global Agent) 

by mail, by hand delivery or by tested or authenticated telex. Any such request shall remain in effect until the 

relevant paying agent receives written notice to the contrary. 

All payments on definitive Debt Securities shall be subject to any applicable law or regulation. If a 

payment outside the United States is illegal or effectively precluded by exchange controls or similar restrictions, 

payments in respect of the related definitive Debt Securities may be made at the office of any paying agent in 

the United States. 

(d) Partial Redemption 

Definitive Debt Securities subject to redemption in part by Freddie Mac shall be selected by the Global 

Agent by lot or in such other manner as the Global Agent deems fair and appropriate, subject to the requirement 

that the principal amount of each outstanding definitive Debt Security after such redemption is in an authorized 

denomination.

(e) Transfer and Exchange 

Definitive Debt Securities shall be presented for registration of transfer or exchange (with the form of 

transfer included thereon properly endorsed, or accompanied by a written instrument of transfer, with such 

evidence of due authorization and guaranty of signature as may be required by the Registrar, duly executed) at 

the office of the Registrar or any other transfer agent upon payment of any taxes and other governmental 

charges and other amounts, but without payment of any service charge to the Registrar or such transfer agent for 

such transfer or exchange. A transfer or exchange shall not be effective unless, and until, recorded in the 

Register. 

A transfer or exchange of a definitive Debt Security shall be effected upon satisfying the Registrar with 

regard to the documents and identity of the person making the request and subject to such reasonable 

regulations as Freddie Mac may from time to time agree with the Registrar. Such documents may include forms 

prescribed by U.S. tax authorities to establish the applicability of, or the exemption from, withholding or other 

taxes regarding the transferee Holder. Definitive Debt Securities may be transferred or exchanged in whole or in 

part only in the authorized denominations of the DTC Registered Debt Securities or Other Registered Debt 

Securities issued in global form for which they were exchanged. In the case of a transfer of a definitive Debt 

 

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Security in part, a new definitive Debt Security in respect of the balance not transferred shall be issued to the 

transferor. In addition, replacement of mutilated, destroyed, stolen or lost definitive Debt Securities also is 

subject to the conditions discussed above with respect to transfers and exchanges generally. Each new definitive 

Debt Security to be issued upon transfer of such a definitive Debt Security, as well as the definitive Debt 

Security issued in respect of the balance not transferred, shall be mailed to such address as may be specified in 

the form or instrument of transfer at the risk of the Holder entitled thereto in accordance with the customary 

procedures of the Registrar. 

ARTICLE V 

Secured Debt Securities 

If so provided in the applicable Supplemental Agreement, the indebtedness represented by certain Debt 

Securities shall be secured obligations of Freddie Mac. In such event, the description of the security interest and 

the terms of the grant of the security interest shall be set forth in the applicable Supplemental Agreement. 

Social Debt Securities 

If so provided in the applicable Supplemental Agreement, Freddie Mac shall designate certain Debt 

Securities as Social Debt Securities. Freddie Mac shall allocate the net proceeds of any Social Debt Securities in 

accordance with the Freddie Mac Single-Family Social MBS and Corporate Social Debt Bonds Framework 

published on Freddie Mac’s website, currently at https://capitalmarkets.freddiemac.com/mbs/docs/

Freddie_Mac_SF_Social_MBS_and_Corporate_Social_Debt_Bonds_Framework.pdf. 

ARTICLE VI 

Currency Conversions 

Section 6.01. Currency Conversions for DTC Registered Debt Securities. 

(a) In the case of DTC Registered Debt Securities whose Specified Payment Currency is other than U.S. 

dollars, the Currency Exchange Bank specified in the applicable Supplemental Agreement, for Holders of such 

DTC Registered Debt Securities, shall convert any amounts paid by Freddie Mac in such Specified Payment 

Currency into U.S. dollars, unless such Holders elect to receive payments in such Specified Payment Currency 

as hereinafter described. Freddie Mac shall have no responsibility for the conversion of the Specified Payment 

Currency for such DTC Registered Debt Securities into U.S. dollars. 

(b) The U.S. dollar amount to be received by a Holder of a DTC Registered Debt Security in respect of 

which payments are to be converted from the Specified Payment Currency into U.S. dollars shall be determined 

by the Currency Exchange Bank in the morning of the day that would be considered the date for “spot” 

settlement of the Specified Payment Currency on the applicable payment date in accordance with market 

convention (generally two New York business days prior to such payment date) at the market rate determined 

by the Currency Exchange Bank to accomplish the conversion on such payment date of the aggregate amount of 

the Specified Payment Currency payable in respect of DTC Registered Debt Securities scheduled to receive 

payments converted into U.S. dollars. All currency exchange costs shall be borne by the Holders of such DTC 

Registered Debt Securities (and, accordingly, by the related Beneficial Owners) by deductions from such 

payments. In the event all or any portion of a Specified Payment Currency is not convertible into U.S. dollars, 

Holders of such DTC Registered Debt Securities shall receive payment in the Specified Payment Currency.

(c) A Holder of a DTC Registered Debt Security to be paid in a Specified Payment Currency other than 

U.S. dollars shall have the option to receive payments of the principal of and any interest on such DTC 

Registered Debt Security in the Specified Payment Currency by notifying DTC no later than the date 12 days 

prior to such Principal Payment Date or Interest Payment date, as applicable. 

 

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ARTICLE VII 

Miscellaneous Provisions 

Section 7.01. Limitations on Liability of Freddie Mac and Others. 

Neither Freddie Mac nor any of its directors, officers, employees or agents shall be under any liability to 

the Holders or Beneficial Owners for any action taken, or not taken, by them in good faith under this Agreement 

or for errors in judgment. This provision will not protect Freddie Mac or any other related person against any 

liability which would otherwise be imposed by reason of willful misfeasance, bad faith or gross negligence or 

by reason of reckless disregard of obligations and duties under this Agreement. Freddie Mac and such related 

persons shall have no liability of whatever nature for special, indirect or consequential damages, lost profits or 

business, or any other liability or claim (other than for direct damages), even if reasonably foreseeable or 

Freddie Mac has been advised of the possibility of such loss, damage, liability or claim. 

In performing its responsibilities under this Agreement, Freddie Mac may employ agents or independent 

contractors. Freddie Mac shall not be subject to the control of Holders in any manner in the discharge of its 

responsibilities pursuant to this Agreement. 

Freddie Mac shall not be under any obligation to appear in, prosecute or defend any legal action that is 

not incidental to its responsibilities under this Agreement and which in its opinion may involve it in any 

expense or liability. However, Freddie Mac may in its discretion undertake any such legal action which it may 

deem necessary or desirable in the interests of the Holders. In such event, the legal expenses and costs of such 

action shall be expenses and costs of Freddie Mac. 

Section 7.02. Binding Effect of this Agreement. 

(a) By receiving and accepting a Debt Security, each Holder, financial intermediary and Beneficial 

Owner of such Debt Security unconditionally agrees, without any signature or further manifestation of assent, to 

be bound by the terms and conditions of this Agreement, as supplemented, modified or amended pursuant to its 

terms. 

(b) This Agreement shall be binding upon and inure to the benefit of any successor to Freddie Mac. 

Section 7.03. Replacement. 

Any Registered Debt Security in definitive form that becomes mutilated, destroyed, stolen or lost shall be 

replaced by Freddie Mac at the expense of the Holder upon delivery to the Global Agent of evidence of the 

destruction, theft or loss thereof, and an indemnity satisfactory to Freddie Mac and the Global Agent. Upon the 

issuance of any substituted Registered Debt Security, Freddie Mac or the Global Agent may require the 

payment by the Holder of a sum sufficient to cover any taxes and expenses connected therewith. 

Section 7.04. Conditions to Payment, Transfer or Exchange. 

Freddie Mac, its agent or any other person potentially required to withhold with respect to payments on a 

Debt Security shall have the right to require a Holder of a Debt Security, as a condition to payment of principal 

of or interest on such Debt Security, or as a condition to transfer or exchange of such Debt Security, to present 

at such place as Freddie Mac, its agent or such other person shall designate a certificate in such form as Freddie 

Mac, its agent or such other person may from time to time prescribe, to enable Freddie Mac, its agent or such 

other person to determine its duties and liabilities with respect to (i) any taxes, assessments or governmental 

charges which Freddie Mac, any Federal Reserve Bank, the Global Agent or such other person, as the case may 

be, may be required to deduct or withhold from payments in respect of such Debt Security under any present or 

future law of the United States or jurisdiction therein or any regulation or interpretation of any taxing authority 

thereof; and (ii) any reporting or other requirements under such laws, regulations or interpretations. Freddie 

 

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Mac, its agent or such other person shall be entitled to determine its duties and liabilities with respect to such 

deduction, withholding, reporting or other requirements on the basis of information contained in such certificate 

or, if no certificate shall be presented, on the basis of any presumption created by any such law, regulation or 

interpretation, and shall be entitled to act in accordance with such determination.

Section 7.05. Amendment. 

(a) Freddie Mac may modify, amend or supplement this Agreement and the terms of an issue of Debt 

Securities, without the consent of the Holders or Beneficial Owners, (i) to cure any ambiguity, or to correct or 

supplement any defective provision or to make any other provision with respect to matters or questions arising 

under this Agreement or the terms of any Debt Security that are not inconsistent with any other provision of this 

Agreement or the Debt Security; (ii) to add to the covenants of Freddie Mac for the benefit of the Holders or 

surrender any right or power conferred upon Freddie Mac; (iii) to evidence the succession of another entity to 

Freddie Mac and its assumption of the covenants of Freddie Mac; (iv) to conform the terms of an issue of Debt 

Securities or cure any ambiguity or discrepancy resulting from any changes in the Book-Entry Rules or any 

regulation or document that are applicable to book-entry securities of Freddie Mac; (v) to increase the amount 

of an issue of Debt Securities as contemplated under Section 2.09; or (vi) in any other manner that Freddie Mac 

may determine and that will not adversely affect in any material respect the interests of Holders or Beneficial 

Owners at the time of such modification, amendment or supplement. 

(b) In addition, either (i) with the written consent of the Holders of at least 50% of the aggregate then 

outstanding principal amount or notional principal amount of an issue of Debt Securities affected thereby, 

excluding any such Debt Securities owned by Freddie Mac; or (ii) by the adoption of a resolution at a meeting 

of Holders at which a quorum is present, by the Holders of at least 50% of the aggregate then outstanding 

principal amount or notional principal amount of an issue of Debt Securities represented at such meeting, 

excluding any such Debt Securities owned by Freddie Mac, Freddie Mac may from time to time and at any time 

modify, amend or supplement the terms of an issue of Debt Securities for the purpose of adding any provisions 

to or changing in any manner or eliminating any provisions of such Debt Securities or modifying in any manner 

the rights of the Holders; provided, however, that no such modification, amendment or supplement may, 

without the written consent or affirmative vote of each Holder of a Debt Security; (A) change the Maturity Date 

or any Interest Payment Date of such Debt Security; (B) materially modify the redemption or repayment 

provisions, if any, relating to the redemption or repayment price of, or any redemption or repayment date or 

period for, such Debt Security; (C) reduce the principal amount of, delay the principal payment of, or materially 

modify the rate of interest or the calculation of the rate of interest on, such Debt Security; (D) in the case of 

Registered Debt Securities only, change the Specified Payment Currency of such Registered Debt Security; or 

(E) reduce the percentage of Holders whose consent or affirmative vote is necessary to modify, amend or 

supplement the terms of the relevant issue of Debt Securities. A quorum at any meeting of Holders called to 

adopt a resolution shall be Holders entitled to vote a majority of the then aggregate outstanding principal 

amount or notional principal amount of an issue of such Debt Securities called to such meeting and, at any 

reconvened meeting adjourned for lack of a quorum, 25% of the then aggregate outstanding principal amount or 

notional principal amount of such issue of Debt Securities, in both cases excluding any such Debt Securities 

owned by Freddie Mac. It shall not be necessary for the Holders to approve the particular form of any proposed 

amendment, but it shall be sufficient if such consent or resolution approves the substance of such change. If any 

modification, amendment or supplement of the terms of an issue of Debt Securities that have been separated 

into Interest and Principal Components requires the consent of Holders, only the Holders of the Principal 

Components will be entitled to give or withhold that consent. Holders of Interest Components will have no right 

to give or withhold such consent. 

(c) The “principal amount,” for purposes of the preceding paragraph, for a Debt Security that is a Zero 

Coupon Debt Security issued at a discount or for a Debt Security issued at an “issue price” of 80% or less of its 

principal amount will be equal to (i) the issue price of such Debt Security; plus (ii) the original issue discount 

 

30
that has accrued from the Issue Date of such Debt Security to the OID Determination Date; minus (iii) any 

amount considered as part of the “stated redemption price at maturity” of such Debt Security that has been paid 

from the Issue Date of such Debt Security to the OID Determination Date. 

The “principal amount,” for purposes of the second preceding paragraph, of a Debt Security whose 

Specified Principal Currency is other than U.S. dollars will be the U.S. dollar equivalent, determined on the 

Issue Date, of the principal amount (or, in the case of the Debt Securities referred to in the preceding paragraph, 

the amount determined in accordance with the provisions described in such preceding paragraph) of such Debt 

Security. The “principal amount” of a Debt Security with principal determined by reference to an Index will be 

described in the applicable Supplemental Agreement. The “principal amount” of a Debt Security with principal 

determined by reference to an Index will be described in the applicable Supplemental Agreement.

(d) Freddie Mac may establish a record date for the determination of Holders entitled to vote at any 

meeting of Holders of Debt Securities, to grant any consent in respect of Debt Securities and to notice with 

respect to any such meeting or consent. 

(e) Any instrument given by or on behalf of any Holder of a Debt Security in connection with any 

consent to any such modification, amendment or supplement shall be irrevocable once given and shall be 

conclusive and binding on all subsequent Holders of such Debt Security or any Debt Security issued, directly or 

indirectly, in exchange or substitution therefor, irrespective of whether or not notation in regard thereto is made 

thereon. Any modification, amendment or supplement of this Agreement or of the terms of Debt Securities shall 

be conclusive and binding on all Holders of Debt Securities affected thereby, whether or not they have given 

such consent or were present at any meeting (unless by the terms of this Agreement a written consent or an 

affirmative vote of such Holders is required), and whether or not notation of such modification, amendment or 

supplement is made upon the Debt Securities. 

Section 7.06. Securities Acquired by Freddie Mac. 

Freddie Mac may, from time to time, repurchase or otherwise acquire (either for cash or in exchange for 

newly-issued Debt Securities) all or a portion of any issue of Debt Securities. Any Debt Securities owned by 

Freddie Mac shall have an equal and proportionate benefit under the provisions of this Agreement, without 

preference, priority or distinction as among such Debt Securities, except that in determining whether the 

Holders of the required percentage of the outstanding principal amount (or notional principal amount) of an 

issue of Debt Securities have given any required demand, authorization, notice, consent or waiver under this 

Agreement, any Debt Securities owned by Freddie Mac or any person directly or indirectly controlling or 

controlled by or under direct or indirect common control with Freddie Mac shall be disregarded and deemed not 

to be outstanding for the purpose of such determination. 

Section 7.07. Notice. 

(a) Any notice, demand or other communication which by any provision of this Agreement is required 

or permitted to be given to or served upon any Holder may be given or served in writing by deposit thereof, 

postage prepaid, in the mail, addressed to such Holder as such Holder’s name and address may appear in the 

records of Freddie Mac, a Federal Reserve Bank or the Registrar, as the case may be, or, in the case of a Holder 

of a Fed Book-Entry Debt Security by transmission to such Holder through the communication system linking 

the Federal Reserve Banks, or, in the case of a Holder of a Debt Security maintained on DTC, by transmission 

to such Holder through the DTC communication system. In the event that the Federal Reserve Banks’ 

communication system and/or the DTC communication system is unavailable, Freddie Mac may give notice to a 

Holder by making use of an alternate comparable communication system, platform or service. Such notice, 

demand or other communication to or upon any Holder shall be deemed to have been sufficiently given or 

made, for all purposes, upon mailing or transmission. 

 

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(b) Any notice, demand or other communication which by any provision of this Agreement is required 

or permitted to be given to or served upon Freddie Mac shall be given in writing addressed (until another 

address is published by Freddie Mac) as follows: Federal Home Loan Mortgage Corporation, 8200 Jones 

Branch Drive, McLean, Virginia 22102 Attention: General Counsel and Secretary. Such notice, demand or 

other communication to or upon Freddie Mac shall be deemed to have been sufficiently given or made only 

upon actual receipt of the writing by Freddie Mac.

Section 7.08. Governing Law. 

THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE HOLDERS AND FREDDIE 

MAC WITH RESPECT TO THE DEBT SECURITIES SHALL BE CONSTRUED IN ACCORDANCE WITH 

AND GOVERNED BY THE LAWS OF THE UNITED STATES. INSOFAR AS THERE MAY BE NO 

APPLICABLE PRECEDENT, AND INSOFAR AS TO DO SO WOULD NOT FRUSTRATE THE 

PURPOSES OF THE FREDDIE MAC ACT OR ANY PROVISION OF THIS AGREEMENT OR THE 

TRANSACTIONS GOVERNED THEREBY, THE LAWS OF THE STATE OF NEW YORK SHALL BE 

DEEMED REFLECTIVE OF THE LAWS OF THE UNITED STATES. 

Section 7.09. Headings. 

The Article, Section and Subsection headings are for convenience only and shall not affect the 

construction of this Agreement. 

FEDERAL HOME LOAN MORTGAGE CORPORATION

 

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Exhibit 31.1

CERTIFICATION

PURSUANT TO SECURITIES EXCHANGE ACT RULE 13a-14(a)

I, Michael J. DeVito, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 of the Federal Home Loan Mortgage Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make 

the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered 

by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the 

financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in 

Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 

15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our 

supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by 

others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our 

supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for 

external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the 

effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most 

recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely 

to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to 

the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are 

reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal 

control over financial reporting.

Date: May 3, 2023

/s/ Michael J. DeVito

Michael J. DeVito

Chief Executive Officer
Exhibit 31.2

CERTIFICATION

PURSUANT TO SECURITIES EXCHANGE ACT RULE 13a-14(a)

I, Christian M. Lown, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 of the Federal Home Loan Mortgage Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make 

the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered 

by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the 

financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in 

Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 

15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our 

supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by 

others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our 

supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for 

external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the 

effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most 

recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely 

to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to 

the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are 

reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal 

control over financial reporting.

Date: May 3, 2023

/s/ Christian M. Lown

Christian M. Lown

Executive Vice President and Chief Financial Officer
Exhibit 32.1

CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ENACTED BY SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 of the Federal Home Loan Mortgage Corporation (the 

"Company"), as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Michael J. DeVito, Chief Executive Officer of the 

Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 3, 2023

/s/ Michael J. DeVito

Michael J. DeVito

Chief Executive Officer
Exhibit 32.2

CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ENACTED BY SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 of the Federal Home Loan Mortgage Corporation (the 

"Company"), as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Christian M. Lown, Executive Vice President and 

Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 

2002, that to my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 3, 2023

/s/ Christian M. Lown

Christian M. Lown

Executive Vice President and Chief Financial Officer