Fourth Quarter 2020 

Financial Results Supplement

February 11, 2021
© Freddie Mac 2

Financial Highlights

$2.6

$0.2

$1.8

$2.5

$2.9

$2.4

$0.6

$1.9

$2.4 $2.5

Net income Comprehensive income

4Q19 1Q20 2Q20 3Q20 4Q20

$0.7 $0.8

$0.4 $0.2 $0.1

$2.4 $2.5

$3.0 $3.0 $3.3

Adjusted net interest income Adjusted guarantee fee income

4Q19 1Q20 2Q20 3Q20 4Q20

Adjusted Net Interest Income 

and Adjusted Guarantee Fee Income 

$ Billions

Net Income and Comprehensive Income

$ Billions

▪ Adjusted net interest income 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.

▪ Adjusted guarantee fee income increased 

from the prior quarter, primarily due to higher 

Single-Family guarantee fee income driven by 

portfolio growth, higher deferred fee income 

recognition, and higher contractual guarantee 

fees rates.

▪ 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 

primarily due to realized house price growth 

during 4Q 2020.

1 1

Note: Totals may not add due to rounding.
© Freddie Mac 3

$316 $334 $349 $345 $345

$213 $211 $194 $198 $182

$103 $123 $155 $147 $163

Mortgage-related investments portfolio

Other investments portfolio

12/31/19 03/31/20 06/30/20 09/30/20 12/31/20

$2,265 $2,295 $2,342 $2,476 $2,638

$1,994 $2,020 $2,061 $2,179 $2,326

$271 $275 $281 $297 $312

Single-Family credit guarantee portfolio

Multifamily guarantee portfolio

12/31/19 03/31/20 06/30/20 09/30/20 12/31/20

Total Portfolio Balances

Total debt outstanding4,6

$ Billions

Total guarantee portfolio2 Portfolio balance highlights

$ Billions

Total investments portfolio

$ Billions

16% YoY 

increase ▪ Total guarantee portfolio: 

• Single-Family - grew $332 billion, or 17% year-overyear.

• Multifamily - grew $41 billion, or 15% year-overyear.

▪ Total investments portfolio:

• Mortgage-related investments portfolio - decreased 

$31 billion, or 15% year-over-year.

• Other investments portfolio - increased $60 billion, 

or 58% year-over-year.

9% YoY 

increase

22% 20% 20% 3%

35% 30% 30% 41% 43%

37% 45% 45% 51% 52%

6% 5% 5% 5% 4%

2.4 2.4 2.5

3.4 3.6

Discount notes

Callable debt

Non-callable debt

Other

Weighted average maturity in years

12/31/19 03/31/20 06/30/20 09/30/20 12/31/20

3

2,4

Note: Totals may not add due to rounding.

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

Purchase Agreement

Debt Cap $300B

$273 $288 $289 $287

FHFA 

 Limit 

$225B*

5

$287
© Freddie Mac 4

Multifamily8 Single-Family7

Percentage of Loans in Forbearance

0.10%

1.91% 2.01%

Forbearance Period Repayment Period Total

0.37%

0.23% 0.18%

0.63%

1.29%

2.70%

Current One

Month

Two

Months

Three

Months

to Six

Months

Greater

Than Six

Months

Total

Percentage of loans in the single-family guarantee portfolio that were in forbearance by payment status as of 

December 31, 2020 (based on loan count).

Percentage of loans in the multifamily mortgage portfolio currently under a forbearance program (based 

on UPB).

Past Due
© Freddie Mac 5

Conservatorship Matters 

• The January 2021 Letter Agreement increased the Capital Reserve Amount used for purposes of calculating the dividend requirement on the senior preferred stock from $20 billion to the 

amount of adjusted total capital necessary to meet the capital requirements and buffers set forth in the Enterprise Regulatory Capital Framework (ERCF). As a result, the company will not be 

required to pay a dividend to Treasury again until the company has built sufficient capital to meet the capital requirements and buffers set forth in the ERCF.

Dividend Payments and Draws9

$ 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

Net Worth Amount, Liquidation Preference, 

and Treasury Commitment

$ Billions
© Freddie Mac 6

210,000

(303,000)

(4,427,000)

1,322,000 283,000

3.6% 4.4%

11.1%

7.8% 6.7%

Average monthly net new jobs (non-farm)

National unemployment rate

(as of the last month in each quarter)

4Q19 1Q20 2Q20 3Q20 4Q20

Key Economic Indicators

National home prices increased by an average of 11.6% 

over the past year Quarterly ending interest rates

3.74% 3.50% 3.13% 2.90% 2.67%

1.89%

0.72% 0.64% 0.71% 0.93%

30-year mortgage rate, based on Primary Mortgage

Market Survey (PMMS)

10-year LIBOR

12/31/19 03/31/20 06/30/20 09/30/20 12/31/20

168

218

United States (Not Seasonally Adjusted)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Freddie Mac House Price Index (December 2000 = 100)

(2006 

Peak)

National home prices have surpassed the 2006 peak

Unemployment rate and job creation
© Freddie Mac 7

0.26% 0.26%

1.95% 2.44% 2.04%

1.84% 1.79%

4.44%

5.47% 5.30%

0.63% 0.60%

2.48%

3.04% 2.64%

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

Legacy and relief refinance single-family portfolio

Total

4Q19 1Q20 2Q20 3Q20 4Q20 $147 $138

$232

$337

$384

$63 $55 $60

$101 $109

$84 $83

$172

$236 $275

48 49 48 46 47

Home purchase UPB Refinance UPB

4Q19 1Q20 2Q20 3Q20 4Q20

Single-Family Guarantee

Financial Highlights and Key Metrics

Note: Totals may not add due to rounding.

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

Single-Family Guarantee Segment Earnings

$ Millions

$1,420

$588

$753

$1,311

$1,884

4Q19 1Q20 2Q20 3Q20 4Q20

Guarantee fees charged on new acquisitions (bps)10

$1,994 $2,020 $2,061 $2,179 $2,326

$1,701 $1,739 $1,794 $1,928 $2,093

$293 $281 $267 $251 $233

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

Legacy and relief refinance single-family portfolio

4Q19 1Q20 2Q20 3Q20 4Q20

17% YoY 

increase

Credit guarantee portfolio

$ Billions

Serious delinquency rates7

 (85%) (86%) (87%) (88%) (90%)

New business activity

$ Billions
© Freddie Mac 8

752 752 758 761 761

4Q19 1Q20 2Q20 3Q20 4Q20

13%

14%

10% 10% 10%

4Q19 1Q20 2Q20 3Q20 4Q20

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

Weighted average original loan-to-value ratio 

(OLTV)

Weighted average original credit score

75% 74% 72% 71% 70%

4Q19 1Q20 2Q20 3Q20 4Q20

Single-Family Guarantee

Loan Purchase Credit Characteristics4

43% 40% 26% 30% 28%

20% 21%

18% 16% 18%

37% 39% 56% 54% 54%

4% 5%

3% 3% 4%

Home purchase Cash-out refinance

Other refinance Investment properties as a

percentage of loan purchases

4Q19 1Q20 2Q20 3Q20 4Q20

Loan purpose and investment properties as a 

percentage of loan purchases
© Freddie Mac 9

Total Single-Family credit guarantee portfolio with 

transferred credit risk

$ Billions

$598

$858

$1,144

$1,376

$1,859

$457

$648

$838 $906 $959

26%

35%

44% 45%

41%

Reference pool UPB at issuance

Reference pool UPB outstanding

2016 2017 2018 2019 2020

Outstanding reference pool UPB as a 

percentage of total single-family portfolio

Cumulative Single-Family transferred credit risk 

based on outstanding balance at period end

$ Billions

$34.9

$37.5

$34.1

$37.7

$40.8

Transferred to third parties

12/31/19 03/31/20 06/30/20 09/30/20 12/31/20

Single-Family Guarantee 

Credit Risk Transfer – STACR / ACIS 

This slide reflects STACR and ACIS CRT transactions only. It excludes senior subordinate securitization structures and lender risk-sharing transactions.
© Freddie Mac 10

Multifamily acquisitions of units by area median 

income (AMI) (% of eligible units acquired)

94% 91% 93% 94% 96%

6% 9% 7% 6% 4%

≤120% AMI >120% AMI

2016 2017 2018 2019 2020

69% 69% 69% 66%

70%

4Q19 1Q20 2Q20 3Q20 4Q20

1.32 1.42 1.36 1.42 1.38

4Q19 1Q20 2Q20 3Q20 4Q20

Weighted average original loan-to-value ratio 

(OLTV) for new business activity

Multifamily 

Financial Highlights and Key Metrics

Weighted average original debt service coverage 

ratio (ODSCR) for new business activity

Multifamily comprehensive income (loss)

$ Millions

$502

$(174)

$1,063

$1,177 $1,149

4Q19 1Q20 2Q20 3Q20 4Q20

(89

%)
© Freddie Mac 11

Multifamily securitization activity11,12

$ Billions

$52.1

$67.5

$72.8 $75.4 $75.0

$49.9

$60.7 $66.3 $67.9 $65.7

$2.2

$6.8

$6.5 $7.5 $9.3

Primary securitization products

Other securitization products

2016 2017 2018 2019 2020

$56.8

$73.2

$78.0 $78.4

$83.0

$56.8

$73.2 $77.5 $77.9 $82.5

$0.5 $0.5

$0.5

New loan purchase activity LIHTC new business activity

2016 2017 2018 2019 2020

Multifamily 

Key Metrics, continued

New business activity4

$ Billions

Note: Totals may not add due to rounding.
© Freddie Mac 12

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

MF CMBS market (60+ day) ACLI investment bulletin (60+ day)

4Q16 4Q17 4Q18 4Q19 4Q20

$213

$249 $280

$353

$158 $203 $237 $271 $312 $13

$7 $7 $6

$4

$42

$39

$36

$33

$36

Guarantee portfolio

Mortgage-related securities

Unsecuritized loans and other

12/31/16 12/31/17 12/31/18 12/31/19 12/31/20

Multifamily market and Freddie Mac delinquency 

rates8

Total portfolio unit count

In Thousands

Total portfolio loan count

In Thousands

Total portfolio

$ Billions

17

21

24

27

29

12/31/16 12/31/17 12/31/18 12/31/19 12/31/20

Multifamily Portfolio Metrics

66% increase 

since 2016

(82%)

Note: Totals may not add due to rounding.

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

$309

3,404

3,946

4,289 4,305

4,598

12/31/16 12/31/17 12/31/18 12/31/19 12/31/20

0.22%

0.10%

 1.95%

0.16%
© Freddie Mac 13

$168 $170

$146 $156

$135

$119 $116

$84 $85

$64

$19 $26

$35

$49

$51

$30 $28

$27

$22

$20

Liquid Securitization pipeline Less liquid

4Q19 1Q20 2Q20 3Q20 4Q20

Capital Markets 

Financial Highlights and Key Metrics

Note: Totals may not add due to rounding.

$268 $291 $299 $300 $295

$168 $171 $147 $156 $135

$100 $120 $152 $144 $160

Mortgage investments portfolio

Other investments portfolio

4Q19 1Q20 2Q20 3Q20 4Q20

$539

$210 $124

$(36)

$(502)

4Q19 1Q20 2Q20 3Q20 4Q20

Capital Markets investments portfolio 

$ Billions

10% YoY

increase

Capital Markets cash window securitization4

$ Billions

$73

$59

$130

$195

$243

4Q19 1Q20 2Q20 3Q20 4Q20

Capital Markets mortgage investments portfolio

$ Billions

20% YoY 

decrease

Capital Markets comprehensive income (loss)

$ Millions

(71%) (68%) (57%) (54%) (47%)

 $269
© Freddie Mac 14

Number of families Freddie Mac helped 

to own or rent a home13

In Thousands

75

90

47

426

15 16 7

228

10 11

9

12 9

4

169

33 51

25

19

5

3

2

1

Forbearance agreements

Repayment plans

Payment deferrals

Loan modifications

Short sales and deed-in-lieu

of foreclosure transactions

2017 2018 2019 2020

 Housing Market Support

Home 

Retention 

Actions

2,311 2,192

2,578

4,601

663

442

782

2,667

828

884

987

1,131

820

866

809

803

Single-Family refinance borrowers

Single-Family purchase borrowers

Multifamily rental units

2017 2018 2019 2020

Note: Totals may not add due to rounding.

Foreclosure 

Alternatives

15

15

15

15

15

9

Number of Single-Family loan workouts14

In Thousands
© Freddie Mac 15

Endnotes

 1 For additional information regarding Freddie Mac’s non-GAAP financial measures and reconciliations to the comparable amounts under GAAP, see the company’s Press Release for the 

quarter ended December 31, 2020.

 2 Based on unpaid principal balances (UPB) of loans and securities. Excludes mortgage-related securities traded, but not yet settled.

The amount of mortgage assets that the company may own in its mortgage-related investments portfolio is currently capped under the Senior Preferred Stock Purchase Agreement 

(Purchase Agreement) with the U.S. Department of Treasury at $250 billion, and in February 2019, FHFA directed us to maintain this portfolio at or below $225 billion. The company is 

required to include 10% of the notional value of interest-only securities it holds when calculating the size of its mortgage-related investments portfolio for purposes of the Purchase 

Agreement and FHFA limits. The balance of the mortgage-related investments portfolio as determined for these purposes was $188.8 billion as of December 31, 2020, including $6.6 

billion representing 10% of the notional amount of the interest-only securities the company held at that date.

With respect to the composition of Freddie Mac's mortgage-related investments portfolio, in August 2020, FHFA instructed the company to: (1) reduce the amount of agency MBS to no 

more than $50 billion by June 30, 2021 and no more than $20 billion by June 30, 2022, with all dollar caps to be based on UPB; and (2) reduce the UPB of its existing portfolio of 

collateralized mortgage obligations (CMOs), which are also sometimes referred to as REMICs, to zero by June 30, 2021. The company will have a holding period limit to sell any new 

CMO tranches created but not sold at issuance. CMOs do not include tranches initially retained from reperforming loans senior subordinate securitization structures.

 3 Primarily Freddie Mac’s K Certificate and SB (Small Balance) Certificate transactions.

 4 The company’s Purchase Agreement with Treasury limits the amount of mortgage assets the company can own and indebtedness it can incur. It also further restricts certain aspects of 

the company's Single-Family and Multifamily new business activities. See the company’s Annual Report on Form 10-K for the year ended December 31, 2020 for more information.

 5 The other investments portfolio is primarily used for short-term liquidity management, cash and other investments held by consolidated trusts, and other investments, which include 

investments in debt securities used to pledge as collateral, LIHTC partnerships, and secured lending activities.

 6 Represents the company’s aggregate indebtedness for purposes of the Purchase Agreement debt cap and primarily includes the par value of other short-term and long-term debt used 

to fund its business activities. 

Beginning in 2020, the company offset amounts recognized as payables under repurchase agreements accounted for as collateralized borrowings and amounts recognized as 

receivables under reverse repurchase agreements accounted for as collateralized borrowings when such amounts meet the conditions for offsetting repurchase and reverse repurchase 

agreements in FASB ASC Subtopic 210-20 (Balance Sheet - Offsetting). Previously, such amounts were presented on a gross basis, with amounts recognized as payables under 

repurchase agreements accounted for as collateralized borrowings included in Other Debt and amounts recognized as receivables under reverse repurchase agreements accounted for 

as collateralized borrowings included in Other Investments. Prior periods have been revised to conform to the current period presentation.

 7 Information related to single-family loans in forbearance is based on information reported by servicers. Beginning in 4Q 2020, Freddie Mac required single-family servicers to report all 

alternatives to foreclosure to the company, which include forbearance plans on all mortgages, including those where the borrower has continued to make payments in accordance with 

the loan's original contractual terms and remains in current status. The forbearance data the company reported in prior periods was generally limited to loans in forbearance that were 

past due based on the loan's original contractual terms. For the purpose of reporting delinquency rates, the company reports single-family loans in forbearance as delinquent during the 

forbearance period to the extent that payments are past due based on the loan's original contractual terms, irrespective of the forbearance agreement.

 8 Multifamily loans in forbearance are reported as current as long as the borrower is in compliance with the forbearance agreement, including the agreed upon repayment plan. Loans in 

forbearance are therefore not included in the multifamily delinquency rates if the borrower is in compliance with the forbearance agreement.

 9 Excludes the initial $1 billion liquidation preference of the senior preferred stock issued to Treasury in September 2008 and the $13.9 billion increase to-date in the aggregate liquidation 

preference of the senior preferred stock pursuant to the Letter Agreements.

 10 Represents the estimated average rate of guarantee fees for new acquisitions during the period assuming amortization of upfront fees using the estimated life of the related loans rather 

than the original contractual maturity date of the related loans. Net of legislated 10 basis point guarantee fee remitted to Treasury as part of the Temporary Payroll Tax Cut Continuation 

Act of 2011.

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

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

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

 12 Excludes re-securitization UPB of primary and other securitization products.

 13 Based on the company’s purchases of loans and issuances of mortgage-related securities. For the periods presented, a borrower may be counted more than once if the company 

purchased more than one loan (purchase or refinance mortgage) relating to the same borrower.

 14 Consists of both home retention actions and foreclosure alternatives.

 15 Categories are not mutually exclusive, and a borrower in one category may also be included in another category in the same or another period. For example, a borrower helped through 

a home retention action in one period may subsequently lose his or her home through a foreclosure alternative in a later period.
© Freddie Mac 16

Safe Harbor Statements

Freddie Mac obligations

 Freddie Mac’s securities are obligations of Freddie Mac only. The securities, including any interest or return of discount on the securities, 

are not guaranteed by and are not debts or obligations of the United States or any federal agency or instrumentality other than Freddie 

Mac.

No offer or solicitation of securities 

 This presentation includes information related to, or referenced in the offering documentation for, certain Freddie Mac securities, 

including offering circulars and related supplements and agreements. Freddie Mac securities may not be eligible for offer or sale in 

certain jurisdictions or to certain persons. This information is provided for your general information only, is current only as of its specified 

date and does not constitute an offer to sell or a solicitation of an offer to buy securities. The information does not constitute a sufficient 

basis for making a decision with respect to the purchase or sale of any security. All information regarding or relating to Freddie Mac 

securities is qualified in its entirety by the relevant offering circular and any related supplements. Investors should review the relevant 

offering circular and any related supplements before making a decision with respect to the purchase or sale of any security. In addition, 

before purchasing any security, please consult your legal and financial advisors for information about and analysis of the security, its 

risks and its suitability as an investment in your particular circumstances.

Forward-looking statements 

 Freddie Mac's presentations may contain forward-looking statements, which may include statements pertaining to the conservatorship, 

the company’s current expectations and objectives for its Single-family 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 credit risk transfer transactions, and results of operations and financial condition on a GAAP, 

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

some of which are beyond the company’s control. Management’s expectations for the company’s future necessarily involve a number of 

assumptions, judgments, and estimates, and various factors, including changes in market conditions, liquidity, mortgage spreads, credit 

outlook, actions by the U.S. government (including FHFA, Treasury, 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, and Current Reports on Form 8-K, 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. The company undertakes no obligation to update 

forward-looking statements it makes to reflect events or circumstances occurring after the date of this presentation.