Freddie Mac Reports Net Income of $7.3 Billion and 

Comprehensive Income of $7.5 Billion for Full-Year 2020

Full-Year 2020 Financial Results

• Net income of $7.3 billion, up $0.1 billion, and comprehensive income of $7.5 billion, down $0.3 billion, from 

2019, primarily driven by higher net revenues, partially offset by higher provision for credit losses. 

• Total equity/net worth(1) increased to $16.4 billion, from $9.1 billion at December 31, 2019. 

Fourth Quarter 2020 Financial Results

• Net income of $2.9 billion and comprehensive income of $2.5 billion, up $0.4 billion and $0.1 billion, 

respectively, from the prior quarter, driven by a reserve release due primarily to realized house price growth 

during 4Q 2020.

"In 2020, Freddie Mac continued to serve the important role for which it was founded: supporting the housing 

market in all economic conditions. In the face of extraordinary economic uncertainty caused by COVID-19, we 

provided record liquidity, enabling millions of borrowers to purchase or refinance homes at historically low interest 

rates. We also helped hundreds of thousands of homeowners and renters affected by the pandemic avoid 

foreclosure and eviction. Our efforts are a testament to our people, our operating platform, our Conservator, and 

our many partners across the industry."

Christian M. Lown Chief Financial Officer

• On January 14, 2021, FHFA, as Conservator, acting on behalf of Freddie Mac, entered into an agreement with 

Treasury that, among other items, allows Freddie Mac to continue to build capital by retaining earnings until it 

meets certain requirements in the Enterprise Regulatory Capital Framework (ERCF) and places additional 

restrictions on certain of its business activities.(2)

Providing Stability to the Housing Market, While Fulfilling Affordable Housing Mission(3)

• Continued to provide mortgage-relief options for borrowers affected by the COVID-19 pandemic, including 

forbearance programs for both single-family and multifamily borrowers.

• Extended moratorium on foreclosures and evictions until at least March 31, 2021.

• Extended temporary measures designed to provide flexibility to homeowners, sellers, and appraisers to 

expedite loan closings during the COVID-19 pandemic.

Executing on Business Fundamentals

• Single-Family new business activity of $1.1 trillion, up 141% from the prior year, reflecting higher home 

purchase and refinance activity. 

• Multifamily new business activity of $83 billion, up 6% from the prior year.

• Single-Family and Multifamily guarantee portfolios grew 17% and 15%, respectively, year over year.

• Serious delinquency rate for Single-Family increased to 2.64%, from 0.63% at the end of the prior year, driven 

by loans in forbearance due to the COVID-19 pandemic.

• Multifamily delinquency rate, which does not include loans in forbearance, increased to 0.16% from 0.08% at 

the end of the prior year.

Managing Risk

• Completed nearly 426,000 single-family workouts, including forbearance agreements and payment deferrals, 

versus 47,000 workouts in the prior year.

• 2.70% and 2.01% of the loans in the Single-Family guarantee portfolio and the Multifamily mortgage portfolio, 

respectively, were in forbearance as of December 31, 2020.

• 51% and 88% of the loans in the Single-Family guarantee portfolio and the Multifamily mortgage portfolio, 

respectively, were covered by credit enhancements as of December 31, 2020.

(1) See page 12 for additional information about the company's net worth and increases in the aggregate liquidation preference of the senior preferred stock resulting 

from increases in the company's net worth pursuant to the September 2019 and January 2021 Letter Agreements.

(2) For additional information on the January 2021 Letter Agreement and ERCF, see the company's Annual Report on Form 10-K for the year ended December 31, 

2020.

(3) See the company's Annual Report on Form 10-K for the year ended December 31, 2020 for additional information on the company's response efforts related to 

the COVID-19 pandemic and its outlook for 2021.
McLean, VA — Freddie Mac (OTCQB: FMCC) today reported net income of $7.3 billion for full-year 2020, an 

increase of 2% compared to net income of $7.2 billion for full-year 2019. The company also reported 

comprehensive income of $7.5 billion for full-year 2020, a decrease of 3% compared to comprehensive income of 

$7.8 billion for full-year 2019.

Net revenues were $16.7 billion, an increase of 18% compared to $14.1 billion for the prior year. Net interest 

income increased 8% to $12.8 billion, primarily driven by growth in the Single-Family guarantee portfolio and 

higher deferred fee income recognition due to faster loan prepayments as a result of the low mortgage interest rate 

environment. Investment gains, net increased 122% to $1.8 billion, primarily driven by higher margins on 

Multifamily loan commitments.

Credit-related expense increased to $2.3 billion from $0.2 billion in the prior year. Benefit (provision) for credit 

losses shifted to a provision for full-year 2020 due to portfolio growth and higher expected credit losses as a result 

of the COVID-19 pandemic, partially offset by growth in realized and forecasted house prices during 2020 and a 

higher benefit for credit enhancement recoveries. 

Fourth Quarter 2020 Financial Results 

Freddie Mac reported net income of $2.9 billion for the fourth quarter of 2020, an increase of 18% compared to 

net income of $2.5 billion for the third quarter of 2020. The company also reported comprehensive income of $2.5 

billion for the fourth quarter of 2020, an increase of 3% compared to comprehensive income of $2.4 billion for the 

third quarter of 2020.

Net revenues were $5.0 billion, relatively unchanged from the third quarter of 2020. 

Credit-related benefit was $0.1 billion, compared to credit-related expense of $0.6 billion in the prior quarter, 

driven by realized house price growth in the fourth quarter of 2020, partially offset by a decrease in credit 

enhancement recoveries.

Summary of Consolidated Statements of Comprehensive Income (Loss)

   Full-Year Three Months Ended

(In millions) 2020 2019 Change 12/31/2020 9/30/2020 Change

Net interest income $12,771 $11,848 $923 $3,653 $3,457 $196

Guarantee fee income 1,442 1,089 353 281 315 (34)

Investment gains (losses), net 1,813 818 995 856 1,122 (266)

Other income (loss) 633 323 310 232 172 60

Net revenues 16,659 14,078 2,581 5,022 5,066 (44)

Benefit (provision) for credit losses (1,452) 746 (2,198) 813 (327) 1,140

Credit enhancement expense (1,058) (749) (309) (327) (267) (60)

Benefit for (decrease in) credit 

enhancement recoveries 323 41 282 (385) 20 (405)

Real estate owned (REO) operations 

expense (149) (229) 80 (10) (40) 30

Credit-related benefit (expense) (2,336) (191) (2,145) 91 (614) 705

Administrative expense (2,535) (2,564) 29 (706) (641) (65)

Temporary Payroll Tax Cut Continuation 

Act of 2011 expense (1,836) (1,617) (219) (495) (467) (28)

Other expense (723) (657) (66) (243) (237) (6)

Operating expense (5,094) (4,838) (256) (1,444) (1,345) (99)

Income (loss) before income tax 

(expense) benefit 9,229 9,049 180 3,669 3,107 562

Income tax (expense) benefit (1,903) (1,835) (68) (756) (644) (112)

Net income (loss) 7,326 7,214 112 2,913 2,463 450

Total other comprehensive income (loss), 

net of taxes and reclassification 

adjustments 205 573 (368) (391) (14) (377)

Comprehensive income (loss) $7,531 $7,787 $(256) $2,522 $2,449 $73

Freddie Mac Full-Year and Fourth Quarter 2020 Financial Results 

February 11, 2021

Page 2 
Selected Financial Measures

Net Interest Income and Net Interest Yield 

(Dollars in billions)

$11.8 $12.8

0.56% 0.55%

2019 2020

$2.8 $2.9 $3.5 $3.7

0.51% 0.50% 0.58% 0.58%

1Q 2020 2Q 2020 3Q 2020 4Q 2020

Net Interest Income

Net Interest Yield

Full-Year 2020

• Net interest income increased from the prior year, primarily driven by higher guarantee portfolio net 

interest income, which was largely attributable to portfolio growth, higher contractual guarantee fee rates, 

and higher deferred fee income recognition due to faster loan prepayments as a result of the low mortgage 

rate environment. 

Fourth Quarter 2020

• Net interest income increased from the prior quarter, primarily driven by higher guarantee portfolio net 

interest income, which was largely attributable to portfolio growth and higher contractual guarantee fee 

rates. 

Guarantee Fee Income(1) and 

Multifamily Guarantee Portfolio

$271 $312

$1,089

$1,442

2019 2020

$275 $281 $297 $312

$377 $469 $315 $281

1Q 2020 2Q 2020 3Q 2020 4Q 2020

Multifamily Guarantee Portfolio ($B)

Guarantee Fee Income ($M)

(1) Guarantee fee income on a GAAP basis is primarily from the company’s multifamily business.

Full-Year 2020

• Guarantee fee income increased from the prior year, primarily driven by portfolio growth and lower fair 

value losses on Multifamily guarantee assets due to a decline in interest rates from the prior year. 

Freddie Mac Full-Year and Fourth Quarter 2020 Financial Results 

February 11, 2021

Page 3 
Fourth Quarter 2020

• Guarantee fee income decreased from the prior quarter, primarily due to higher fair value losses on 

Multifamily guarantee assets as a result of an increase in interest rates from the prior quarter. Because 

most multifamily loans are not prepayable without penalty, increases in interest rates generally result in 

lower Multifamily guarantee asset fair values.

Credit-Related Benefit (Expense)

(In billions) 

$(0.2)

$(2.3)

$0.7

$(1.5)

$(0.7)

$(1.1)

$0.3

$(0.2)

$(0.1)

2019 2020

$(1.0)

$(0.7)

$(0.6)

$0.1

$(1.2)

$(0.7)

$(0.3)

$0.8

$(0.2)

$(0.2)

$(0.3)

$(0.3)

$0.5

$0.2

$(0.4)

$(0.1)

1Q 2020 2Q 2020 3Q 2020 4Q 2020

Benefit (Provision) for Credit Losses Credit Enhancement Expense

Benefit for (Decrease in) Credit 

Enhancement Recoveries REO Operations Expense

 Amounts may not add due to rounding.

Full-Year 2020

• Credit-related expense increased to $2.3 billion from $0.2 billion in the prior year. Benefit (provision) for 

credit losses shifted to a provision for full-year 2020 due to portfolio growth and higher expected credit 

losses as a result of the COVID-19 pandemic, partially offset by growth in realized and forecasted house 

prices during 2020 and a higher benefit for credit enhancement recoveries.

Fourth Quarter 2020

• Credit-related benefit was $0.1 billion, compared to credit-related expense of $0.6 billion in the prior 

quarter, driven by realized house price growth in the fourth quarter of 2020, partially offset by a decrease 

in credit enhancement recoveries.

Freddie Mac Full-Year and Fourth Quarter 2020 Financial Results 

February 11, 2021

Page 4 
Non-GAAP Financial Measure Highlights

In addition to analyzing the company’s results on a GAAP basis, management reviews net interest income and 

guarantee fee income on an “adjusted,” or non-GAAP, basis. These adjusted financial measures are calculated by 

reclassifying certain credit guarantee-related activities and investment-related activities between various line items 

on the company’s GAAP consolidated statements of comprehensive income. The company also presents one 

additional non-GAAP financial measure, adjusted net interest yield, that is calculated based on adjusted net 

interest income. Management believes that these non-GAAP financial measures are useful because they more 

clearly reflect the company’s sources of revenue and return.

For additional information about the company's non-GAAP financial measures and reconciliations to the 

comparable amounts under GAAP, see pages 16-17 of this press release.

Adjusted Net Interest Income(1), Adjusted Net Interest Yield(1), and 

Investments Portfolio

(Dollars in billions) 

$316 $345

$213 $182

$103 $163

$3.6

$1.5

1.17% 0.41%

2019 2020

$334 $349 $345 $345

$211 $194 $198 $182

$123 $155 $147 $163

$0.8 $0.4 $0.2 $0.1

0.96% 0.43% 0.25% 0.08%

1Q 2020 2Q 2020 3Q 2020 4Q 2020

Mortgage-related Investments Portfolio

Other Investments Portfolio

Adjusted Net Interest Yield

Adjusted Net Interest Income

(1) Non-GAAP financial measure. For reconciliations to the comparable amounts under GAAP, see pages 16-17 of this press release.

Amounts may not add due to rounding.

Full-Year 2020

• Adjusted net interest income and adjusted net interest yield decreased from the prior year, primarily driven 

by higher loan prepayments that resulted in an increase in amortization expense, combined with a change 

in investment mix as the lower-yielding other investments portfolio represented a larger percentage of the 

total investments portfolio. In addition, the company's custodial trust account balance increased due to 

higher prepayments but earned a minimal yield due to the low interest rate environment.

• The mortgage-related investments portfolio was $182 billion, down $31 billion, or 15%, from the prior year. 

The other investments portfolio was $163 billion, up $60 billion, or 58%, as the company transitions to 

comply with minimum liquidity requirements established by FHFA. 

Fourth Quarter 2020

• Adjusted net interest income and adjusted net interest yield decreased from the prior quarter, primarily 

driven by higher loan prepayments that resulted in an increase in amortization expense, combined with a 

change in investment mix as the lower-yielding other investments portfolio represented a larger 

percentage of the total investments portfolio.

Freddie Mac Full-Year and Fourth Quarter 2020 Financial Results 

February 11, 2021

Page 5 
Adjusted Guarantee Fee Income(1) and 

Total Guarantee Portfolio

(In billions)

$2,265

$2,638

$1,994

$2,326

$271

$312

$8.9

$11.7

2019 2020

$2,295 $2,342 $2,476 $2,638

$2,020 $2,061 $2,179 $2,326

$275 $281 $297 $312

$2.5 $3.0 $3.0 $3.3

1Q 2020 2Q 2020 3Q 2020 4Q 2020

Single-Family Credit Guarantee Portfolio

Multifamily Guarantee Portfolio

Adjusted Guarantee Fee Income

(1) Non-GAAP financial measure. For reconciliations to the comparable amounts under GAAP, see pages 16-17 of this press release.

Amounts may not add due to rounding.

Full-Year 2020 and Fourth Quarter 2020

• Adjusted guarantee fee income increased from the prior year and prior quarter, primarily due to higher 

Single-Family guarantee fee income driven by portfolio growth, higher deferred fee income recognition, 

and higher contractual guarantee fee rates.

• The total guarantee portfolio grew $373 billion, or 16%, from the prior year, driven by increases in both the 

Single-Family and Multifamily guarantee portfolios.

Segment Financial Results and Business Highlights

Freddie Mac’s operations in 2020 consisted of three reportable segments, which are based on the types of 

business activities they perform – Single-Family Guarantee, Multifamily, and Capital Markets. The company 

presents Segment Earnings for each reportable segment by reclassifying certain credit guarantee-related activities 

and investment-related activities between various line items on its GAAP consolidated statements of 

comprehensive income and allocating certain revenues and expenses, including funding costs and administrative 

expenses, to its three reportable segments. 

For more information about Segment Earnings, see Note 17 to the financial statements included in the company’s 

Annual Report on Form 10-K for the year ended December 31, 2020.

Freddie Mac Full-Year and Fourth Quarter 2020 Financial Results 

February 11, 2021

Page 6 
Single-Family Guarantee Segment

Financial Results(1)

   Full-Year Three Months Ended

(In millions) 2020 2019 Change 12/31/2020 9/30/2020 Change

Guarantee fee income $10,292 $7,773 $2,519 $2,988 $2,683 $305

Investment gains (losses), net 956 964 (8) 89 409 (320)

Other income (loss) 241 391 (150) 185 124 61

Net revenues 11,489 9,128 2,361 3,262 3,216 46

Benefit (provision) for credit losses (1,680) 418 (2,098) 720 (426) 1,146

Credit enhancement expense (1,696) (1,434) (262) (470) (416) (54)

Benefit for (decrease in) credit 

enhancement recoveries 305 41 264 (379) 26 (405)

REO operations expense (152) (245) 93 (10) (41) 31

Credit-related expense (3,223) (1,220) (2,003) (139) (857) 718

Administrative expense (1,609) (1,647) 38 (449) (409) (40)

Other expense (943) (786) (157) (301) (296) (5)

Operating expense (2,552) (2,433) (119) (750) (705) (45)

Segment Earnings (Losses) before 

income tax (expense) benefit 5,714 5,475 239 2,373 1,654 719

Income tax (expense) benefit (1,178) (1,110) (68) (489) (343) (146)

Segment Earnings (Losses), net of taxes 4,536 4,365 171 1,884 1,311 573

Total other comprehensive income (loss), 

net of tax (16) (22) 6 (9) (3) (6)

Total comprehensive income (loss) $4,520 $4,343 $177 $1,875 $1,308 $567

(1) The financial performance of the company’s Single-Family Guarantee segment is measured based on its contribution to GAAP net income (loss).

Key Drivers - 2020 vs. 2019

Comprehensive income increased from the prior year, primarily driven by:

• Higher guarantee fee income primarily due to portfolio growth, higher deferred fee income recognition driven 

by faster loan prepayments as a result of the low mortgage interest rate environment, and higher contractual 

guarantee fee rates. 

• Higher credit-related expense driven by a shift to a provision for credit losses as a result of the COVID-19 

pandemic and portfolio growth, partially offset by a higher benefit for credit enhancement recoveries.

2020 Business Highlights

• New business activity of $1.1 trillion, an increase of $637 billion, or 141%, from the prior year, driven by higher 

refinance and purchase activity resulting from the low mortgage interest rate environment. 

▪ The weighted average original loan-to-value (LTV) ratio of new business activity improved to 71% from 

77% for the prior year, while the weighted average original credit score was 759, up from 751 for the prior 

year. 

▪ The average guarantee fee rate charged on new acquisitions was 47 basis points, up from 45 basis points 

for the prior year.

▪ First-time homebuyers represented 46% of new single-family purchase loans.

▪ The company provided funding for nearly 3.8 million single-family homes, approximately 2.7 million of 

which were refinance loans.

• The Single-Family guarantee portfolio increased 17% from the prior year to $2.3 trillion at December 31, 2020, 

driven by an increase in U.S. single-family mortgage debt outstanding and higher new business activity.

Freddie Mac Full-Year and Fourth Quarter 2020 Financial Results 

February 11, 2021

Page 7 
▪ The average guarantee fee rate on the Single-Family guarantee portfolio was 49 basis points, up from 40 

basis points for the prior year.

• The Single-Family serious delinquency rate increased to 2.64%, from 0.63% at the end of the prior year, driven 

by loans in forbearance due to the COVID-19 pandemic.

▪ Single-Family loans in forbearance are reported as delinquent during the forbearance period to the extent 

that payments are past due based upon the loans' original contractual terms.

• Single-Family loan workout activity increased to nearly 426,000, from 47,000 in the prior year, driven by 

completed forbearance agreements and payment deferrals primarily related to the COVID-19 pandemic.

• 2.70% of loans in the Single-Family guarantee portfolio, based on loan count, were in forbearance as of 

December 31, 2020.

• Credit enhancement coverage of the Single-Family guarantee portfolio decreased to 51% from 56% in the 

prior year, driven by the high volume of new business activity, which has not been included in credit risk 

transfer (CRT) transactions but may be included in future periods.

Multifamily Segment

Financial Results(1)

   Full-Year Three Months Ended

(In millions) 2020 2019 Change 12/31/2020 9/30/2020 Change

Net interest income $943 $1,069 $(126) $236 $210 $26

Guarantee fee income 1,444 1,101 343 286 303 (17)

Investment gains (losses), net 2,047 576 1,471 1,046 1,091 (45)

Other income (loss) 176 108 68 45 43 2

Net revenues 4,610 2,854 1,756 1,613 1,647 (34)

Credit-related expense (136) (18) (118) 11 (20) 31

Administrative expense (514) (503) (11) (142) (128) (14)

Other expense (37) (41) 4 (14) (9) (5)

Operating expense (551) (544) (7) (156) (137) (19)

Segment Earnings (Losses) before 

income tax (expense) benefit 3,923 2,292 1,631 1,468 1,490 (22)

Income tax (expense) benefit (809) (465) (344) (302) (309) 7

Segment Earnings (Losses), net of taxes 3,114 1,827 1,287 1,166 1,181 (15)

Total other comprehensive income (loss), 

net of tax 101 101 0 (17) (4) (13)

Total comprehensive income (loss) $3,215 $1,928 $1,287 $1,149 $1,177 $(28)

(1) The financial performance of the company’s Multifamily segment is measured based on its contribution to GAAP comprehensive income (loss).

Key Drivers - 2020 vs. 2019

Comprehensive income increased from the prior year, mainly driven by:

• Higher investment gains primarily driven by higher margins on Multifamily loan commitments.

• Higher guarantee fee income driven by portfolio growth and lower fair value losses on guarantee assets due to 

a decline in interest rates from the prior year.

Freddie Mac Full-Year and Fourth Quarter 2020 Financial Results 

February 11, 2021

Page 8 
2020 Business Highlights

• New business activity of $83 billion, up 6% from $78 billion in the prior year. 

▪ The weighted average original LTV ratio of new business activity was 69%, up from 68% for the prior year.

▪ The company provided financing for nearly 803,000 multifamily rental units.

▪ 96% of the eligible multifamily rental units financed were affordable to families earning at or below 120% 

of area median income.

• The Multifamily guarantee portfolio increased 15% from December 31, 2019, to $312 billion, driven by new 

securitization activity. 

• The Multifamily delinquency rate, which does not include loans in forbearance, increased to 0.16% from 

0.08% at December 31, 2019.

• As of December 31, 2020, 2.01% of the loans in the Multifamily mortgage portfolio, based on UPB, were in a 

forbearance program, approximately 95% of which were in the repayment period. Approximately 82% of the 

total loans in a Multifamily forbearance program are included in securitizations with first loss credit protection 

provided by subordination.

▪ A multifamily loan in forbearance is reported as current as long as the borrower is in compliance with the 

forbearance agreement, including the agreed upon repayment plan. A loan in forbearance is therefore not 

included in the Multifamily delinquency rate if the borrower is in compliance with the forbearance 

agreement.

• While credit enhancement coverage of the Multifamily mortgage portfolio decreased to 88% from 89% in the 

prior year, the company continued to successfully transfer multifamily credit risk during 2020.

• As of December 31, 2020, the company had cumulatively transferred a substantial amount of the expected 

and stress credit risk on the Multifamily guarantee portfolio, primarily through subordination in its 

securitizations.

▪ In addition, nearly all of the company's securitization activities shifted substantially all the interest-rate and 

liquidity risk associated with the underlying collateral away from Freddie Mac to third-party investors. 

Freddie Mac Full-Year and Fourth Quarter 2020 Financial Results 

February 11, 2021

Page 9 
Capital Markets Segment

Financial Results(1) 

   Full-Year Three Months Ended

(In millions) 2020 2019 Change 12/31/2020 9/30/2020 Change

Net interest income $522 $2,486 $(1,964) $(159) $20 $(179)

Investment gains (losses), net (231) (36) (195) (25) 15 (40)

Other income (loss) (266) (700) 434 132 37 95

Net revenues 25 1,750 (1,725) (52) 72 (124)

Administrative expense (412) (414) 2 (115) (104) (11)

Other expense (21) (54) 33 (5) (5) 0

Operating expense (433) (468) 35 (120) (109) (11)

Segment Earnings (Losses) before 

income tax (expense) benefit (408) 1,282 (1,690) (172) (37) (135)

Income tax (expense) benefit 84 (260) 344 35 8 27

Segment Earnings (Losses), net of taxes (324) 1,022 (1,346) (137) (29) (108)

Total other comprehensive income (loss), 

net of tax 120 494 (374) (365) (7) (358)

Total comprehensive income (loss) $(204) $1,516 $(1,720) $(502) $(36) $(466)

(1) The financial performance of the company’s Capital Markets segment is measured based on its contribution to GAAP comprehensive income (loss).

Key Drivers - 2020 vs. 2019

• Comprehensive loss compared to comprehensive income in the prior year, primarily due to lower net interest 

income, driven by an increase in amortization expense due to higher loan prepayments, coupled with 

additional expense due to payments to security holders of the full monthly coupon rate when loans pay off 

mid-month. In addition, the company's custodial trust account balance increased due to higher 

prepayments but earned a minimal yield due to the low interest rate environment.

2020 Business Highlights

• Freddie Mac continued to maintain a presence in the agency mortgage-related securities market to 

strategically support the guarantee business. 

• FHFA has instructed the company to maintain loans in COVID-19 payment forbearance plans in mortgagebacked security pools for at least the duration of the forbearance plan. The company's less liquid assets are 

likely to increase in future periods as it will likely purchase a higher amount of delinquent and modified loans 

from securities after borrowers exit forbearance plans.

Freddie Mac Full-Year and Fourth Quarter 2020 Financial Results 

February 11, 2021

Page 10 
Market Liquidity

Freddie Mac supports the U.S. housing market by executing its Charter Mission to provide liquidity and help 

maintain credit availability for new and refinanced single-family mortgages as well as for rental housing. Despite 

the significant challenges presented by the COVID-19 pandemic, the company continues to provide funding and 

stability to the housing market.

Freddie Mac provided approximately $1.2 trillion in liquidity to the market in 2020 funding:

• Nearly 3.8 million single-family homes, approximately 2.7 million of which were refinance loans; and

• Approximately 803,000 multifamily rental units.

Number of Families Helped to Own or Rent a Home

(In thousands)

2,311 2,192

2,578

4,601

820 866 809 803

828 884 987 1,131

663 442

782

2,667

Multifamily Rental Units Single-Family Purchase Borrowers

Single-Family Refinance Borrowers

2017 2018 2019 2020

Freddie Mac Full-Year and Fourth Quarter 2020 Financial Results 

February 11, 2021

Page 11 
About Freddie Mac’s Conservatorship

Since September 2008, Freddie Mac has been operating under conservatorship with FHFA as Conservator. The 

support provided by Treasury pursuant to the Purchase Agreement enables the company to maintain access to 

the debt markets and have adequate liquidity to conduct its normal business operations.

 Net Worth Amount, Liquidation Preference, and Dividend Payments and Draws 

Treasury Commitment

(In billions) (In billions) 

$16.4

$86.5

$140.2

Net Worth Amount

Senior preferred stock liquidation

preference

Remaining Treasury commitment

As of December 31, 2020

$71.6

$119.7

Cumulative draws from Treasury

Cumulative dividend payments

to Treasury

As of December 31, 2020

As a result of increases to the Capital Reserve Amount pursuant to the September 2019 and January 2021 Letter 

Agreements, the company was not required to pay a dividend to Treasury on the senior preferred stock in 

December 2020, and it will not be required to pay a dividend to Treasury until it has built sufficient capital to meet 

the capital requirements and buffers set forth in the ERCF. 

The quarterly increases in the company's Net Worth Amount as the company builds capital during this period will 

continue to be added to the aggregate liquidation preference of the senior preferred stock. As a result, the 

liquidation preference of the senior preferred stock increased from $84.1 billion on September 30, 2020 to 

$86.5 billion on December 31, 2020 based on the $2.4 billion increase in the Net Worth Amount during the third 

quarter of 2020, and will increase to $89.1 billion on March 31, 2021 based on the $2.5 billion increase in the Net 

Worth Amount during the fourth quarter of 2020.

The remaining Treasury commitment available to Freddie Mac under the Purchase Agreement was $140.2 billion at 

December 31, 2020.

For additional information on the Purchase Agreement, January 2021 Letter Agreement, senior preferred stock, 

and ERCF, see the company’s Annual Report on Form 10-K for the year ended December 31, 2020.

Freddie Mac Full-Year and Fourth Quarter 2020 Financial Results 

February 11, 2021

Page 12 
Additional Information

For more information, including information related to Freddie Mac’s financial results, conservatorship, and related 

matters, see the company’s Annual Report on Form 10-K for the year ended December 31, 2020 and the 

company’s Financial Results Supplement. These documents are available on the Investor Relations page of the 

company’s website at www.FreddieMac.com/investors.

Additional information about Freddie Mac and its business is also set forth in the company’s other filings with the 

SEC, which are available on the Investor Relations page of the company’s website at www.FreddieMac.com/

investors and the SEC’s website at www.sec.gov. Freddie Mac encourages all investors and interested members 

of the public to review these materials for a more complete understanding of the company’s financial results and 

related disclosures.

Webcast Announcement

Management will host a conference call at 9 a.m. Eastern Time on February 11, 2021 to share the company’s 

results with the media. The call will be concurrently webcast. To access the audio webcast, use the following link: 

https://edge.media-server.com/mmc/p/s5quqmi4. The replay will be available on the company’s website at 

www.FreddieMac.com/investors for approximately 30 days. All materials related to the call will be available on the 

Investor Relations page of the company’s website at www.FreddieMac.com/investors.

    Media Contact: Frederick Solomon (703) 903-3861 Investor Contact: Laurie Garthune (571) 382-4732    

*     *     *     *

This press release contains forward-looking statements, which may include statements pertaining to the 

conservatorship, the company’s current expectations and objectives for its Single-Family Guarantee, Multifamily, 

and Capital Markets segments, its efforts to assist the housing market, liquidity and capital management, 

economic and market conditions and trends, the effects of the COVID-19 pandemic and actions taken in response 

thereto on its business, financial condition, and liquidity, its market share, the effect of legislative and regulatory 

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

and benefits of the company’s CRT transactions, and results of operations and financial condition on a GAAP, 

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

and uncertainties, some of which are beyond the company’s control. Management’s expectations for the 

company’s future necessarily involve a number of assumptions, judgments, and estimates, and various factors, 

including changes in market conditions, liquidity, mortgage spreads, credit outlook, uncertainty about the duration, 

severity, and effects of the COVID-19 pandemic and actions taken in response thereto, by the U.S. government 

(including FHFA, Treasury, and Congress) and state and local governments, and the impacts of legislation or 

regulations and new or amended accounting guidance, could cause actual results to differ materially from these 

expectations. These assumptions, judgments, estimates, and factors are discussed in the company’s Annual 

Report on Form 10-K for the year ended December 31, 2020, which is available on the Investor Relations page of 

the company’s website at www.FreddieMac.com/investors and the SEC’s website at www.sec.gov. The company 

undertakes no obligation to update forward-looking statements it makes to reflect events or circumstances 

occurring after the date of this press release.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. 

Since its creation by Congress in 1970, the company has made housing more accessible and affordable for 

homebuyers and renters in communities nationwide. The company is building a better housing finance system for 

homebuyers, renters, lenders, and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie 

Mac’s blog FreddieMac.com/blog.

Freddie Mac Full-Year and Fourth Quarter 2020 Financial Results 

February 11, 2021

Page 13 
FREDDIE MAC

Consolidated Statements of Comprehensive Income (Loss)

Twelve Months Ended Three Months Ended

 (In millions, except share-related amounts)

December 31, 

2020

December 31, 

2019

December 31, 

2020

September 30, 

2020

Net interest income

Interest income $62,340 $72,895 $14,183 $14,849

Interest expense (49,569) (61,047) (10,530) (11,392)

Net interest income 12,771 11,848 3,653 3,457

Non-interest income (loss)

Guarantee fee income 1,442 1,089 281 315

Investment gains (losses), net 1,813 818 856 1,122

Other income (loss) 633 323 232 172

Non-interest income (loss) 3,888 2,230 1,369 1,609

Net revenues 16,659 14,078 5,022 5,066

Benefit (provision) for credit losses (1,452) 746 813 (327)

Non-interest expense

Salaries and employee benefits (1,344) (1,434) (342) (334)

Professional services (398) (445) (129) (105)

Other administrative expense (793) (685) (235) (202)

Total administrative expense (2,535) (2,564) (706) (641)

Credit enhancement expense (1,058) (749) (327) (267)

Benefit for (decrease in) credit enhancement recoveries 323 41 (385) 20

REO operations expense (149) (229) (10) (40)

Temporary Payroll Tax Cut Continuation Act of 2011 expense (1,836) (1,617) (495) (467)

Other expense (723) (657) (243) (237)

Non-interest expense (5,978) (5,775) (2,166) (1,632)

Income (loss) before income tax (expense) benefit 9,229 9,049 3,669 3,107

Income tax (expense) benefit (1,903) (1,835) (756) (644)

Net income (loss) 7,326 7,214 2,913 2,463

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

Changes in unrealized gains (losses) related to available-for-sale securities 192 535 (384) (16)

Changes in unrealized gains (losses) related to cash flow hedge relationships 38 71 8 6

Changes in defined benefit plans (25) (33) (15) (4)

Total other comprehensive income (loss), net of taxes and reclassification 

adjustments 205 573 (391) (14)

Comprehensive income (loss) $7,531 $7,787 $2,522 $2,449

Net income (loss) $7,326 $7,214 $2,913 $2,463

Undistributed net worth sweep, senior preferred stock dividends, or future increase in 

senior preferred stock liquidation preference (7,291) (7,787) (2,522) (2,449)

Net income (loss) attributable to common stockholders $35 $(573) $391 $14

Net income (loss) per common share — basic and diluted $0.01 $(0.18) $0.12 $0.00

Weighted average common shares outstanding (in millions) — basic and diluted 3,234 3,234 3,234 3,234

Freddie Mac Full-Year and Fourth Quarter 2020 Financial Results 

February 11, 2021

Page 14 
FREDDIE MAC

Consolidated Balance Sheets

December 31,

(In millions, except share-related amounts) 2020 2019

Assets

Cash and cash equivalents (include $17,379 and $991 of restricted cash and cash equivalents) $23,889 $5,189

Securities purchased under agreements to resell 105,003 56,271 

Investment securities, at fair value 59,825 75,711 

Mortgage loans held-for-sale (includes $14,199 and $15,035 at fair value) 33,652 35,288 

Mortgage loans held-for-investment (net of allowance for loan losses of $5,732 and $4,234) 2,350,236 1,984,912 

Accrued interest receivable (net of allowance of $140 and $0) 7,754 6,848 

Derivative assets, net 1,205 844 

Deferred tax assets, net 6,557 5,918 

Other assets (includes $5,775 and $4,627 at fair value) 39,294 22,799 

Total assets $2,627,415 $2,193,780

Liabilities and equity

Liabilities

Accrued interest payable $6,210 $6,559

Debt (includes $2,592 and $3,938 at fair value) 2,592,546 2,169,685 

Derivative liabilities, net 954 372 

Other liabilities 11,292 8,042 

Total liabilities 2,611,002 2,184,658 

Commitments and contingencies

Equity

Senior preferred stock (liquidation preference of $86,539 and $79,322) 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 650,059,292 

shares and 650,059,033 shares outstanding — — 

Additional paid-in capital — — 

Retained earnings (accumulated deficit) (67,102) (74,188) 

AOCI, net of taxes, related to:

Available-for-sale securities 810 618 

Cash flow hedge relationships (206) (244) 

Defined benefit plans 39 64 

Total AOCI, net of taxes 643 438 

Treasury stock, at cost, 75,804,594 shares and 75,804,853 shares (3,885) (3,885) 

Total equity 16,413 9,122 

Total liabilities and equity $2,627,415 $2,193,780

The table below presents the carrying value and classification of the assets and liabilities of consolidated variable-interest entities (VIEs) on the company's consolidated balance sheets.

December 31,

(In millions) 2020 2019

Consolidated Balance Sheet Line Item

Assets:

Mortgage loans held-for-investment $2,273,347 $1,940,523

All other assets 83,982 40,598

Total assets of consolidated VIEs $2,357,329 $1,981,121

Liabilities:

Debt $2,308,176 $1,898,355

All other liabilities 5,610 5,537

Total liabilities of consolidated VIEs $2,313,786 $1,903,892

Freddie Mac Full-Year and Fourth Quarter 2020 Financial Results 

February 11, 2021

Page 15 
FREDDIE MAC

Non-GAAP Reconciliations

The company’s GAAP net interest income includes the spread earned on its investments activities plus the 

guarantee fees earned by its Single-Family business. Adjusted net interest income is the net spread earned on 

the company’s investment activities, including the cost of funds associated with using derivatives. Net interest 

yield, GAAP and adjusted, is calculated as annualized quarterly GAAP or adjusted net interest income divided by 

the average balance of the underlying assets and liabilities.

Reconciliation of GAAP Net Interest Income to Adjusted Net Interest Income (pre-tax)

 (In millions)

1Q 

2020

2Q 

2020

3Q 

2020

4Q 

2020 2019 2020

GAAP net interest income $2,785 $2,876 $3,457 $3,653 $11,848 $12,771

Reclassifications:

Guarantee fee income reclassified to adjusted guarantee fee 

income (1) (2) (2,561) (2,943) (3,138) (3,488) (9,402) (12,130) 

Accrual of periodic cash settlements reclassified from 

derivative gain (loss) (3) (176) (329) (540) (531) (272) (1,576) 

Hedge accounting impact (4) 350 475 690 717 252 2,232 

Other reclassifications (5) 380 301 (239) (274) 1,129 168 

Total reclassifications (2,007) (2,496) (3,227) (3,576) (8,293) (11,306) 

Adjusted net interest income $778 $380 $230 $77 $3,555 $1,465

Average balance of assets and liabilities, GAAP (in billions) $2,205 $2,274 $2,376 $2,526 $2,108 $2,345

Average balance of assets and liabilities, adjusted (in billions) $324 $352 $364 $379 $307 $355

The company's GAAP guarantee fees are primarily those generated by the company's Multifamily business. 

Adjusted guarantee fee income consists of the revenues from guarantee fees from both the Single-Family and 

Multifamily businesses, net of the 10 basis point guarantee fee remitted to Treasury as part of the Temporary 

Payroll Tax Cut Continuation Act of 2011. 

Reconciliation of GAAP Guarantee Fee Income to Adjusted Guarantee Fee Income (pre-tax)

(In millions)

1Q 

2020

2Q 

2020

3Q 

2020

4Q 

2020 2019 2020

GAAP guarantee fee income $377 $469 $315 $281 $1,089 $1,442

Reclassifications:

Guarantee fee income reclassified from net interest income (1) (2) 2,561 2,943 3,138 3,488 9,402 12,130

Temporary Payroll Tax Cut Continuation Act of 2011 expense 

reclassified from other non-interest expense (6) (432) (442) (467) (495) (1,617) (1,836)

Total reclassifications 2,129 2,501 2,671 2,993 7,785 10,294

Adjusted guarantee fee income $2,506 $2,970 $2,986 $3,274 $8,874 $11,736

Columns may not add due to rounding.

For notes on reclassifications, see page 17 of this press release.

Freddie Mac Full-Year and Fourth Quarter 2020 Financial Results 

February 11, 2021

Page 16 
Notes on Significant Reclassifications

(1) Net guarantee fees, including certain fees and related hedge amortization and implied guarantee fee income 

related to unsecuritized loans held in the mortgage-related investments portfolio, are reclassified from GAAP 

net interest income to adjusted guarantee fee income.

(2) Short-term returns on cash received related to certain upfront fees on single-family loans are reclassified from 

GAAP net interest income to adjusted guarantee fee income.

(3) The accrual of periodic cash settlements of derivatives is reclassified from GAAP investment gains (losses) to 

adjusted net interest income to fully reflect the periodic cost associated with the protection provided by these 

contracts.

(4) Hedge accounting impact consists of removing the effects of hedge accounting including deferred gains and 

losses on closed cash flow hedges related to forecasted debt issuances.

(5) Other reclassifications primarily relate to items reclassified out of GAAP net interest income, including the 

amortization related to derivative commitment basis adjustments associated with mortgage-related and nonmortgage- related securities, amortization related to accretion of other-than-temporary impairments on 

available-for-sale securities, amortization of discounts on loans purchased with deteriorated credit quality that 

are on accrual status, amortization related to premiums and discounts, including non-cash premiums and 

discounts, on single-family loans in trusts and on the associated consolidated securities, amortization related to 

premiums and discounts associated with securities issued by consolidated trusts that were previously held and 

subsequently transferred to third parties, and costs associated with STACR debt note expenses.

(6) The expense related to the Temporary Payroll Tax Cut Continuation Act of 2011 is reclassified from GAAP other 

non-interest expense to adjusted guarantee fee income. As a result of the reclassification, the revenue and 

expense related to the legislated 10 basis point increase are netted within adjusted guarantee fee income.

Freddie Mac Full-Year and Fourth Quarter 2020 Financial Results 

February 11, 2021

Page 17