# EDGAR Filing Document

**Accession Number:** 0001026214
**File Stem:** 0001026214-26-000027
**Filing Date:** 2026-4
**Character Count:** 407899
**Document Hash:** 617df7489698477178c49e4af5142d13
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001026214-26-000027.hdr.sgml**: 20260430

**ACCESSION NUMBER**: 0001026214-26-000027

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 123

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260430

**DATE AS OF CHANGE**: 20260430

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** FEDERAL HOME LOAN MORTGAGE CORP
- **CENTRAL INDEX KEY:** 0001026214
- **STANDARD INDUSTRIAL CLASSIFICATION:** FEDERAL & FEDERALLY-SPONSORED CREDIT AGENCIES [6111]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 520904874
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-34139
- **FILM NUMBER:** 26920151

**BUSINESS ADDRESS:**
- **STREET 1:** 8200 JONES BRANCH DR
- **CITY:** MCLEAN
- **STATE:** VA
- **ZIP:** 22102
- **BUSINESS PHONE:** 7039032000

**MAIL ADDRESS:**
- **STREET 1:** 8200 JONES BRANCH DR
- **CITY:** MCLEAN
- **STATE:** VA
- **ZIP:** 22102

?xml version='1.0' encoding='ASCII'? fmcc-20260331

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**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, 2026** 

**or**

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

**For the transition period from&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to**

**Commission File Number: 001-34139**![primarylogoa04.jpg](fmcc-20260331_g1.jpg)

**Federal Home Loan Mortgage Corporation** 

*(Exact name of registrant as specified in its charter)*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Federally chartered** | **52-0904874** | **8200 Jones Branch Drive** | **8200 Jones Branch Drive** | **22102-3110** | **(703)** | **903-2003** |
| **corporation** | **52-0904874** | **McLean,** | **Virginia** | **22102-3110** | **(703)** | **903-2003** |
| *(State or other jurisdiction of incorporation or organization)* | *(I.R.S. Employer*<br>*Identification No.)* | *(Address of principal executive offices)* | *(Address of principal executive offices)* | *(Zip Code)* | *(Registrant's telephone number,<br>including area code)* | *(Registrant's telephone number,<br>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&nbsp;&nbsp;&nbsp;&nbsp;☐ 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 7, 2026, there were 650,059,553 shares of the registrant's common stock outstanding.

------

<u>**Table of Contents**</u>

**Table of Contents**

---

| | |
|:---|:---|
| | **Page** |
| MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | **<u>[1](#ied0d197bc0174bfba8b73040a5da0088_13)</u>** |
| ■&nbsp;&nbsp;&nbsp;&nbsp;Introduction | <u>[1](#ied0d197bc0174bfba8b73040a5da0088_16)</u> |
| ■&nbsp;&nbsp;&nbsp;&nbsp;Consolidated Results of Operations | <u>[4](#ied0d197bc0174bfba8b73040a5da0088_70)</u> |
| ■&nbsp;&nbsp;&nbsp;&nbsp;Consolidated Balance Sheets Analysis | <u>[7](#ied0d197bc0174bfba8b73040a5da0088_115)</u> |
| ■&nbsp;&nbsp;&nbsp;&nbsp;Our Portfolios | <u>[8](#ied0d197bc0174bfba8b73040a5da0088_118)</u> |
| ■&nbsp;&nbsp;&nbsp;&nbsp;Our Business Segments | <u>[10](#ied0d197bc0174bfba8b73040a5da0088_142)</u> |
| ■&nbsp;&nbsp;&nbsp;&nbsp;Risk Management | <u>[15](#ied0d197bc0174bfba8b73040a5da0088_208)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●*Credit Risk* | <u>[15](#ied0d197bc0174bfba8b73040a5da0088_211)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●*Market Risk* | <u>[23](#ied0d197bc0174bfba8b73040a5da0088_313)</u> |
| ■&nbsp;&nbsp;&nbsp;&nbsp;Liquidity and Capital Resources | <u>[25](#ied0d197bc0174bfba8b73040a5da0088_340)</u> |
| ■&nbsp;&nbsp;&nbsp;&nbsp;Critical Accounting Estimates | <u>[31](#ied0d197bc0174bfba8b73040a5da0088_409)</u> |
| ■&nbsp;&nbsp;&nbsp;&nbsp;Regulation and Supervision | <u>[32](#ied0d197bc0174bfba8b73040a5da0088_412)</u> |
| ■&nbsp;&nbsp;&nbsp;&nbsp;Forward-Looking Statements | <u>[33](#ied0d197bc0174bfba8b73040a5da0088_433)</u> |
| **FINANCIAL STATEMENTS** | **<u>[35](#ied0d197bc0174bfba8b73040a5da0088_439)</u>** |
| **OTHER INFORMATION** | **<u>[78](#ied0d197bc0174bfba8b73040a5da0088_688)</u>** |
| **CONTROLS AND PROCEDURES** | **<u>[80](#ied0d197bc0174bfba8b73040a5da0088_706)</u>** |
| **EXHIBIT INDEX** | **<u>[82](#ied0d197bc0174bfba8b73040a5da0088_715)</u>** |
| **SIGNATURES** | **<u>[83](#ied0d197bc0174bfba8b73040a5da0088_718)</u>** |
| **FORM 10-Q INDEX** | **<u>[84](#ied0d197bc0174bfba8b73040a5da0088_721)</u>** |

---

Freddie Mac 1Q 2026 Form 10-Q i

------

<u>**Table of Contents**</u>

**MD&A TABLE INDEX**

---

| | | |
|:---|:---|:---|
| **Table** | **Description** | **Page** |
| 1 | Summary of Consolidated Statements of Income and Comprehensive Income | <u>[4](#ied0d197bc0174bfba8b73040a5da0088_73)</u> |
| 2 | Components of Net Interest Income | <u>[4](#ied0d197bc0174bfba8b73040a5da0088_79)</u> |
| 3 | Analysis of Net Interest Yield | <u>[5](#ied0d197bc0174bfba8b73040a5da0088_85)</u> |
| 4 | Components of Non-Interest Income | <u>[5](#ied0d197bc0174bfba8b73040a5da0088_94)</u> |
| 5 | (Provision) Benefit for Credit Losses | <u>[6](#ied0d197bc0174bfba8b73040a5da0088_103)</u> |
| 6 | Components of Non-Interest Expense | <u>[6](#ied0d197bc0174bfba8b73040a5da0088_109)</u> |
| 7 | Summarized Condensed Consolidated Balance Sheets | <u>[7](#ied0d197bc0174bfba8b73040a5da0088_115)</u> |
| 8 | Mortgage Portfolio | <u>[8](#ied0d197bc0174bfba8b73040a5da0088_124)</u> |
| 9 | Mortgage-Related Investments Portfolio | <u>[9](#ied0d197bc0174bfba8b73040a5da0088_133)</u> |
| 10 | Other Investments Portfolio | <u>[9](#ied0d197bc0174bfba8b73040a5da0088_139)</u> |
| 11 | Single-Family Housing and Mortgage Market Metrics | <u>[11](#ied0d197bc0174bfba8b73040a5da0088_4835)</u> |
| 12 | Single-Family Segment Business Results | <u>[11](#ied0d197bc0174bfba8b73040a5da0088_4878)</u> |
| 13 | Single-Family Segment Financial Results | <u>[12](#ied0d197bc0174bfba8b73040a5da0088_172)</u> |
| 14 | Multifamily Housing and Mortgage Market Metrics | <u>[13](#ied0d197bc0174bfba8b73040a5da0088_4777)</u> |
| 15 | Multifamily Segment Business Results | <u>[13](#ied0d197bc0174bfba8b73040a5da0088_4791)</u> |
| 16 | Multifamily Segment Financial Results | <u>[14](#ied0d197bc0174bfba8b73040a5da0088_205)</u> |
| 17 | Allowance for Credit Losses Activity | <u>[15](#ied0d197bc0174bfba8b73040a5da0088_217)</u> |
| 18 | Allowance for Credit Losses Ratios | <u>[15](#ied0d197bc0174bfba8b73040a5da0088_220)</u> |
| 19 | Single-Family New Business Activity | <u>[17](#ied0d197bc0174bfba8b73040a5da0088_238)</u> |
| 20 | Single-Family Mortgage Portfolio Newly Acquired Credit Enhancements | <u>[18](#ied0d197bc0174bfba8b73040a5da0088_247)</u> |
| 21 | Single-Family Mortgage Portfolio Credit Enhancement Coverage Outstanding | <u>[18](#ied0d197bc0174bfba8b73040a5da0088_250)</u> |
| 22 | Serious Delinquency Rates for Credit-Enhanced and Non-Credit-Enhanced Loans in Our Single-Family Mortgage Portfolio | <u>[19](#ied0d197bc0174bfba8b73040a5da0088_253)</u> |
| 23 | Loan Credit Characteristics of Our Single-Family Mortgage Portfolio | <u>[19](#ied0d197bc0174bfba8b73040a5da0088_262)</u> |
| 24 | Single-Family Mortgage Portfolio Attribute Combinations | <u>[20](#ied0d197bc0174bfba8b73040a5da0088_265)</u> |
| 25 | Single-Family Completed Loan Workout Activity | <u>[21](#ied0d197bc0174bfba8b73040a5da0088_280)</u> |
| 26 | Multifamily Mortgage Portfolio CRT Issuance | <u>[23](#ied0d197bc0174bfba8b73040a5da0088_5071)</u> |
| 27 | Credit-Enhanced and Non-Credit-Enhanced Loans Underlying Our Multifamily Mortgage Portfolio | <u>[23](#ied0d197bc0174bfba8b73040a5da0088_304)</u> |
| 28 | Duration Gap and PVS-YC and PVS-L Results Assuming Shifts of the Yield Curve | <u>[24](#ied0d197bc0174bfba8b73040a5da0088_319)</u> |
| 29 | Duration Gap and PVS Results | <u>[24](#ied0d197bc0174bfba8b73040a5da0088_322)</u> |
| 30 | PVS-L Results Before Derivatives and After Derivatives | <u>[24](#ied0d197bc0174bfba8b73040a5da0088_331)</u> |
| 31 | Short-term and Long-term Debt Activity | <u>[26](#ied0d197bc0174bfba8b73040a5da0088_364)</u> |
| 32 | Maturity and Redemption Dates | <u>[26](#ied0d197bc0174bfba8b73040a5da0088_370)</u> |
| 33 | Debt Issued by Consolidated Trusts | <u>[27](#ied0d197bc0174bfba8b73040a5da0088_379)</u> |
| 34 | Net Worth Activity | <u>[27](#ied0d197bc0174bfba8b73040a5da0088_391)</u> |
| 35 | Regulatory Capital Components | <u>[28](#ied0d197bc0174bfba8b73040a5da0088_397)</u> |
| 36 | Statutory Capital Components | <u>[28](#ied0d197bc0174bfba8b73040a5da0088_400)</u> |
| 37 | Capital Metrics Under ERCF | <u>[29](#ied0d197bc0174bfba8b73040a5da0088_403)</u> |
| 38 | Forecasted House Price Growth Rates | <u>[31](#ied0d197bc0174bfba8b73040a5da0088_409)</u> |

---

Freddie Mac 1Q 2026 Form 10-Q ii

------

<u>Management's Discussion and Analysis</u>  <u>Introduction</u>

**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, 2025, or* **<u>[2025 Annual Report](https://www.sec.gov/ix?doc=/Archives/edgar/data/1026214/000102621426000021/fmcc-20251231.htm)</u>***.*

*Throughout this Form 10-Q, we use certain acronyms and terms that are defined in the* Glossary *of our 2025 Annual Report.* 

*You should read the following* MD&A *in conjunction with our 2025 Annual Report and our condensed consolidated financial statements and accompanying notes for the three months ended March 31, 2026 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 a portion of our 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, mortgage-related securities, and other types of assets. 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. The 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 2025 Annual Report.

Freddie Mac 1Q 2026 Form 10-Q 1

------

<u>Management's Discussion and Analysis</u>  <u>Introduction</u>

Business Results

Consolidated Financial Results

***Net Revenues and Net Income***

*(In billions)*

![47](fmcc-20260331_g2.jpg)

***Net Worth***

*(In billions)*

![73](fmcc-20260331_g3.jpg)

***Key Drivers:***

■&nbsp;&nbsp;&nbsp;&nbsp;Net income was $3.6 billion, up 27% from 1Q 2025, primarily driven by higher net revenues and a credit reserve release in 1Q 2026 compared to a credit reserve build in 1Q 2025.

■&nbsp;&nbsp;&nbsp;&nbsp;Net revenues were $6.1 billion, an increase of 5% year-over-year, primarily driven by higher net interest income, partially offset by lower non-interest income.

■&nbsp;&nbsp;&nbsp;&nbsp;Net worth was $73.9 billion as of March 31, 2026, up from $62.4 billion as of March 31, 2025. 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 $143.0 billion on March 31, 2026, and will increase to $146.6 billion on June 30, 2026 based on the increase in net worth in 1Q 2026.

Market Liquidity

***Market Liquidity***

*(In thousands)*

![36](fmcc-20260331_g4.jpg)

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 $116 billion in liquidity to the mortgage market in 1Q 2026, which enabled the financing of 380,000 home purchases, refinancings, and rental units.

Freddie Mac 1Q 2026 Form 10-Q 2

------

<u>Management's Discussion and Analysis</u>  <u>Introduction</u>

Mortgage Portfolio Balances

***Mortgage Portfolio***

*(UPB in billions)*

![41](fmcc-20260331_g5.jpg)

***Key Drivers:***

■&nbsp;&nbsp;&nbsp;&nbsp;Our mortgage portfolio increased 2% year-over-year to $3.7 trillion at March 31, 2026, continuing to grow at a moderate pace.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;Our Single-Family mortgage portfolio was $3.2 trillion at March 31, 2026, up 1% year-over-year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;Our Multifamily mortgage portfolio was $498 billion at March 31, 2026, up 7% year-over-year.

Freddie Mac 1Q 2026 Form 10-Q 3

------

<u>Management's Discussion and Analysis</u>  <u>Consolidated Results of Operations</u>

**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.

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 2026** | **1Q 2025** | $**%** |
| Net interest income | $5619 | $5102 | 10% |
| Non-interest income | 514 | 750 | (31) |
| **Net revenues** | **6133** | **5852** | **5** |
| (Provision) benefit for credit losses | 320 | (280) | NM |
| Non-interest expense | (2022) | (2088) | 3 |
| **Income before income tax expense** | **4431** | **3484** | **27** |
| Income tax expense | (873) | (690) | (27) |
| **Net income** | **3558** | **2794** | **27** |
| Other comprehensive income (loss), <br>net of taxes and reclassification adjustments | (20) | 34 | NM |
| **Comprehensive income** | **$3538** | **$2828** | **25%** |

---

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 2026** | **1Q 2025** | $**%** |
| Guarantee net interest income: |  |  |  |
| &nbsp;&nbsp;&nbsp;Contractual net interest income | $4142 | $3981 | 4% |
| &nbsp;&nbsp;&nbsp;Deferred fee income | 219 | 190 | 15 |
| **Total guarantee net interest income** | **4361** | **4171** | **5** |
| Investments net interest income | 1357 | 1297 | 5 |
| Impact on net interest income from hedge accounting | (99) | (366) | 73 |
| **Net interest income** | **$5619** | **$5102** | **10%** |

---

***Key Drivers:***

■&nbsp;&nbsp;&nbsp;&nbsp;**Guarantee net interest income**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;**1Q 2026 vs. 1Q 2025** - Increased primarily due to an increase in the balance of fully guaranteed securitizations in the Multifamily mortgage portfolio due to the change in our Multifamily business strategy and continued mortgage portfolio growth in Single-Family.

■&nbsp;&nbsp;&nbsp;&nbsp;**Investments net interest income**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;**1Q 2026 vs. 1Q 2025** - Increased primarily due to growth in the mortgage-related investments portfolio.

■&nbsp;&nbsp;&nbsp;&nbsp;**Impact on net interest income from hedge accounting**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;**1Q 2026 vs. 1Q 2025** - Decreased due to lower expense related to debt in hedge accounting relationships.

Freddie Mac 1Q 2026 Form 10-Q 4

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<u>Management's Discussion and Analysis</u>  <u>Consolidated Results of Operations</u>

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 2026** | **1Q 2026** | **1Q 2026** | **1Q 2025** | **1Q 2025** | **1Q 2025** |
| **(Dollars in millions)** | **Average**<br>**Balance** | **Interest**<br>**Income**<br>**(Expense)** | **Average**<br>**Rate** | **Average**<br>**Balance** | **Interest**<br>**Income**<br>**(Expense)** | **Average**<br>**Rate** |
| Interest-earning assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $8363 | $52 | 2.51% | $9355 | $79 | 3.38% |
| &nbsp;&nbsp;&nbsp;Securities purchased under agreements to resell | 84924 | 798 | 3.76 | 111687 | 1240 | 4.44 |
| &nbsp;&nbsp;&nbsp;Investment securities | 76752 | 833 | 4.34 | 55955 | 620 | 4.43 |
| &nbsp;&nbsp;Mortgage loans held by consolidated trusts<sup>(1)</sup> | 3216438 | 30966 | 3.85 | 3129811 | 28591 | 3.65 |
| &nbsp;&nbsp;Mortgage loans held by Freddie Mac<sup>(1)</sup> | 86808 | 966 | 4.45 | 70429 | 804 | 4.57 |
| &nbsp;&nbsp;&nbsp;Other assets | 3100 | 35 | 4.48 | 2055 | 31 | 5.98 |
| **Total interest-earning assets** | **3476385** | **33650** | **3.87** | **3379292** | **31365** | **3.71** |
| Interest-bearing liabilities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Debt issued by consolidated trusts | 3189597 | (26001) | (3.26) | 3125203 | (24059) | (3.08) |
| &nbsp;&nbsp;&nbsp;Short-term debt | 30089 | (275) | (3.66) | 14822 | (161) | (4.36) |
| &nbsp;&nbsp;&nbsp;Long-term debt | 169973 | (1702) | (4.00) | 170573 | (2000) | (4.69) |
| &nbsp;&nbsp;&nbsp;Securities sold under agreements to repurchase | 5949 | (53) | (3.57) | 3999 | (43) | (4.25) |
| **Total interest-bearing liabilities** | **3395608** | **(28031)** | **(3.30)** | **3314597** | **(26263)** | **(3.17)** |
| **Net interest income/yield** |  | **$5619** | **0.65%** |  | **$5102** | **0.60%** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Loan fees included in interest income were $0.4 billion and $0.3 billion for mortgage loans held by consolidated trusts in 1Q 2026 and 1Q 2025, respectively. Loan fees for mortgage loans held by Freddie Mac were not material in 1Q 2026 or 1Q 2025 .

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 2026** | **1Q 2025** | $**%** |
| Guarantee income | $320 | $440 | (27)% |
| Investment gains (losses), net | 42 | 192 | (78) |
| Other income | 152 | 118 | 29 |
| **Non-interest income** | **$514** | **$750** | **(31)%** |

---

***Key Drivers:***

■&nbsp;&nbsp;&nbsp;&nbsp;**Guarantee income**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;**1Q 2026 vs. 1Q 2025**- Decreased primarily due to fair value losses as a result of increases in medium-term interest rates during 1Q 2026, coupled with lower revenues from a declining off-balance sheet financial guarantee portfolio.

■&nbsp;&nbsp;&nbsp;&nbsp;**Investment gains (losses), net** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;**1Q 2026 vs. 1Q 2025**- Decreased primarily due to a lower volume of loan sale activities as we shifted the Multifamily business model to primarily issue fully guaranteed securities, as well as losses from debt extinguishments in 1Q 2026.

Freddie Mac 1Q 2026 Form 10-Q 5

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<u>Management's Discussion and Analysis</u>  <u>Consolidated Results of Operations</u>

(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 2026** | **1Q 2025** | $**%** |
| Single-Family | $311 | ($228) | NM |
| Multifamily | 9 | (52) | NM |
| **(Provision) benefit for credit losses** | **$320** | **($280)** | **NM** |

---

***Key Drivers:***

■&nbsp;&nbsp;&nbsp;&nbsp;**1Q 2026 vs. 1Q 2025** - The benefit for credit losses for 1Q 2026 was driven by a credit reserve release in Single-Family primarily attributable to changes in our views of forecasted house price growth rates. The provision for credit losses for 1Q 2025 was primarily driven by a credit reserve build in Single-Family attributable to new acquisitions.

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 2026** | **1Q 2025** | $**%** |
| Salaries and employee benefits | ($376) | ($423) | 11% |
| Professional services, technology, and occupancy | (250) | (253) | 1 |
| Credit enhancement expense | (441) | (540) | 18 |
| Legislative and regulatory assessments: |  |  |  |
| &nbsp;&nbsp;Legislated guarantee fees expense | (757) | (744) | (2) |
| &nbsp;&nbsp;Affordable housing funds allocation | (48) | (37) | (30) |
| &nbsp;&nbsp;Regulatory assessment | (27) | (36) | 25 |
| **Total legislative and regulatory assessments** | **(832)** | **(817)** | **(2)** |
| Other expense | (123) | (55) | (124) |
| **Non-interest expense** | **($2022)** | **($2088)** | **3%** |

---

***Key Drivers:***

■&nbsp;&nbsp;&nbsp;&nbsp;**Salaries and employee benefits**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;**1Q 2026 vs. 1Q 2025** - Decreased primarily due to lower employee headcount.

■&nbsp;&nbsp;&nbsp;&nbsp;**Credit enhancement expense** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;**1Q 2026 vs. 1Q 2025** - Decreased primarily due to a lower UPB of Single-Family CRT transactions outstanding, retention of higher levels of initial losses on recent CRT transactions, and lower losses on STACR Trust note repurchases.

Freddie Mac 1Q 2026 Form 10-Q 6

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<u>Management's Discussion and Analysis</u>  <u>Consolidated Balance Sheets Analysis</u>

**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, 2026** | **December 31, 2025** | $**%** |
| Assets: |  |  |  |
| Cash and cash equivalents | $4469 | $5327 | (16)% |
| Securities purchased under agreements to resell | 74804 | 71919 | 4 |
| Investment securities, at fair value | 75939 | 85412 | (11) |
| Mortgage loans held-for-sale | 1225 | 1014 | 21 |
| Mortgage loans held-for-investment | 3302306 | 3290066 |  |
| Accrued interest receivable | 12207 | 12254 |  |
| Deferred tax assets, net | 4740 | 5040 | (6) |
| Other assets | 29628 | 26566 | 12 |
| **Total assets** | **$3505318** | **$3497598** | **— %** |
| Liabilities and Equity |  |  |  |
| Liabilities: |  |  |  |
| Accrued interest payable | $10556 | $10597 | —% |
| Debt issued by consolidated trusts | 3214995 | 3198008 | 1 |
| Short-term debt | 24408 | 37718 | (35) |
| Long-term debt | 169850 | 169296 |  |
| Other liabilities | 11587 | 11595 |  |
| **Total liabilities** | **3431396** | **3427214** | **—** |
| **Total equity** | **73922** | **70384** | **5** |
| **Total liabilities and equity** | **$3505318** | **$3497598** | **— %** |

---

***Key Drivers:***

As of March 31, 2026 compared to December 31, 2025:

■&nbsp;&nbsp;&nbsp;&nbsp;**Investment securities** decreased primarily due to net sales of U.S. Treasury securities.

■&nbsp;&nbsp;&nbsp;&nbsp;**Mortgage loans held-for-investment** and **debt issued by consolidated trusts** increased primarily due to growth in our mortgage portfolio.

■&nbsp;&nbsp;&nbsp;&nbsp;**Short-term debt** decreased primarily due to lower funding needs.

Freddie Mac 1Q 2026 Form 10-Q 7

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<u>Management's Discussion and Analysis</u>  <u>Our Portfolios</u>

**OUR PORTFOLIOS**

Mortgage Portfolio

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

**Table 8 - Mortgage Portfolio**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **(In millions)** | **Single-Family** | **Multifamily** | **Total** | **Single-Family** | **Multifamily** | **Total** |
| Mortgage loans held-for-investment: |  |  |  |  |  |  |
| &nbsp;&nbsp;By consolidated trusts | $3065699 | $137404 | $3203103 | $3063232 | $115354 | $3178586 |
| &nbsp;&nbsp;By Freddie Mac | 54261 | 26864 | 81125 | 54713 | 37770 | 92483 |
| **Total mortgage loans held-for-investment** | **3119960** | **164268** | **3284228** | **3117945** | **153124** | **3271069** |
| Mortgage loans held-for-sale | 1449 | 2 | 1451 | 1108 | 136 | 1244 |
| **Total mortgage loans** | **3121409** | **164270** | **3285679** | **3119053** | **153260** | **3272313** |
| Mortgage-related guarantees: |  |  |  |  |  |  |
| &nbsp;&nbsp;Mortgage loans held by nonconsolidated trusts | 29528 | 324122 | 353650 | 30025 | 332572 | 362597 |
| &nbsp;&nbsp;Other mortgage-related guarantees | 7044 | 9940 | 16984 | 7212 | 10003 | 17215 |
| **Total mortgage-related guarantees** | **36572** | **334062** | **370634** | **37237** | **342575** | **379812** |
| **Total mortgage portfolio** | **$3157981** | **$498332** | **$3656313** | **$3156290** | **$495835** | **$3652125** |
| Guaranteed mortgage-related securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;Issued by consolidated trusts | $3092678 | $137421 | $3230099 | $3084668 | $115610 | $3200278 |
| &nbsp;&nbsp;Issued by non-consolidated trusts | 24180 | 292245 | 316425 | 24604 | 299507 | 324111 |
| **Total guaranteed mortgage-related securities** | **$3116858** | **$429666** | **$3546524** | **$3109272** | **$415117** | **$3524389** |

---

Investments Portfolio

Our investments portfolio consists of our mortgage-related investments portfolio and 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. We primarily use our mortgage-related investments portfolio to provide liquidity to the mortgage market by purchasing loans for our securitization pipeline and by purchasing delinquent and modified loans from securitization trusts. We also invest in agency mortgage-related securities.

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 permitted to increase our agency MBS investments, provided that our total mortgage assets do not exceed the $225 billion cap under the terms of our senior preferred stock purchase agreement with Treasury, with CMO securities capped at $5 billion as part of agency MBS investments. 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 2025 Annual Report.

Freddie Mac 1Q 2026 Form 10-Q 8

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<u>Management's Discussion and Analysis</u>  <u>Our Portfolios</u>

The table below presents the details of our mortgage-related investments portfolio.

**Table 9 - Mortgage-Related Investments Portfolio**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **(In millions)** | **Single-Family** | **Multifamily** | **Total** | **Single-Family** | **Multifamily** | **Total** |
| Unsecuritized mortgage loans<sup>(1)</sup> | $55710 | $26866 | $82576 | $55821 | $37906 | $93727 |
| Mortgage-related securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;Investment securities | 5241 | 3207 | 8448 | 4438 | 3891 | 8329 |
| &nbsp;&nbsp;Debt issued by consolidated trusts | 47109 | 1628 | 48737 | 35758 | 1413 | 37171 |
| **Total mortgage-related securities** | **52350** | **4835** | **57185** | **40196** | **5304** | **45500** |
| **Mortgage-related investments portfolio** | **$108060** | **$31701** | **$139761** | **$96017** | **$43210** | **$139227** |
| 10% of notional amount of interest-only securities |  |  | $21691 |  |  | $21995 |
| Mortgage-related investments portfolio for purposes of Purchase Agreement cap |  |  | 161452 |  |  | 161222 |

---

(1)Includes $37.9 billion and $35.9 billion of single-family loans that we have purchased from securitization trusts as of March 31, 2026 and December 31, 2025, respectively.

Other Investments Portfolio

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

**Table 10 - Other Investments Portfolio**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **(In millions)** | **Liquidity and Contingency Operating Portfolio** | **Custodial Account** | **Other** | **Total Other Investments Portfolio** | **Liquidity and Contingency Operating Portfolio** | **Custodial Account** | **Other** | **Total Other Investments Portfolio** |
| Cash and cash equivalents | $3169 | $1202 | $98 | $4469 | $4092 | $1136 | $99 | $5327 |
| Securities purchased under <br>agreements to resell | 54678 | 22262 | 2188 | 79128 | 57181 | 19107 | 2090 | 78378 |
| Non-mortgage related securities<sup>(1)</sup> | 55817 |  | 5983 | 61800 | 65088 |  | 6076 | 71164 |
| Other assets<sup>(2)</sup> |  |  | 8501 | 8501 |  |  | 7776 | 7776 |
| **Other investments portfolio** | **$113664** | **$23464** | **$16770** | **$153898** | **$126361** | **$20243** | **$16041** | **$162645** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Primarily consists of U.S. Treasury securities.

&nbsp;&nbsp;&nbsp;&nbsp;(2)Primarily includes LIHTC investments and advances to lenders.

Freddie Mac 1Q 2026 Form 10-Q 9

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<u>Management's Discussion and Analysis</u>  <u>Our Business Segments</u>

**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. |  |  |
| **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. |
| **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. |
| **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)*![38](fmcc-20260331_g6.jpg)

***Segment Net Income***

*(In billions)*![72](fmcc-20260331_g7.jpg)

Freddie Mac 1Q 2026 Form 10-Q 10

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<u>Management's Discussion and Analysis</u> <u>Our Business Segments \| Single-Family</u>

Single-Family

Housing and Mortgage Market Metrics

The table below presents certain single-family 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.

**Table 11 - Single-Family Housing and Mortgage Market Metrics**<sup>(1)</sup>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **(Mortgage amounts in billions, units in thousands)** | **1Q 2026** | **4Q 2025** | **3Q 2025** | **2Q 2025** | **1Q 2025** |
| Home sales (in units): |  |  |  |  |  |
| &nbsp;&nbsp;Total home sales (annualized seasonally adjusted amount) | 4630 | 4866 | 4735 | 4678 | 4742 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales of existing homes | 4043 | 4157 | 4047 | 4013 | 4087 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales of new homes<sup>(2)</sup> | 587 | 709 | 688 | 665 | 655 |
| Mortgage originations (estimated) | $533 | $581 | $502 | $506 | $371 |
| Mortgage debt outstanding<sup>(3)</sup> | N/A | 14770 | 14666 | 14541 | 14417 |
| Quarterly house price growth rate (seasonally adjusted rate) | 0.1% | 0.4% | 0.3% | (0.1)% | 0.3% |
| 30-year PMMS rate at period end | 6.38% | 6.15% | 6.30% | 6.77% | 6.65% |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;Sources: Home sales - National Association of Realtors and U.S Census Bureau; Mortgage originations - Fannie Mae; Mortgage debt outstanding - Federal Reserve Financial Accounts of the United States of America; House price growth rate and 30-year PMMS rate - Freddie Mac.

&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;For 1Q 2026, the sales of new homes amount is based on annualized seasonally adjusted data through January 31, 2026 (the latest available information).

&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;For 1Q 2026, the mortgage debt outstanding balance is not yet available.

Business Results

The table and related discussion below present selected business results of our Single-Family segment.

**Table 12 - Single-Family Segment Business Results**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | | **Change** | **Change** |
| **(UPB in millions, loan count in thousands)** | **1Q 2026** | **1Q 2025** | **Amount** | **%** |
| **New business activity:** | | | | |
| &nbsp;&nbsp;UPB: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total UPB | $102513 | $77646 | $24867 | 32% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Home purchase | 59964 | 61921 | (1957) | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Refinance | 42549 | 15725 | 26824 | 171 |
| &nbsp;&nbsp;Number of loans: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total number of loans | 281 | 224 | 57 | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Home purchase | 165 | 171 | (6) | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Refinance | 116 | 53 | 63 | 119 |
| &nbsp;&nbsp;Average estimated guarantee fee rate (bps)<sup>(1)</sup> | 54 | 54 |  |  |
| **Mortgage portfolio at period end:** |  |  |  |  |
| &nbsp;&nbsp;UPB | $3157981 | $3115180 | $42801 | 1 |
| &nbsp;&nbsp;Average estimated guarantee fee rate (bps)<sup>(1)(2)</sup> | 50 | 49 |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;Estimated guarantee fee rate calculations exclude the legislated guarantee fees and include deferred fees recognized over the estimated life of the related loans based on month-end market rates for the month of acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;Estimated guarantee fee rate calculations for the Single-Family mortgage portfolio exclude certain loans, the majority of which are held by VIEs that we do not consolidate. The UPB of these excluded loans was $38 billion and $40 billion as of March 31, 2026 and March 31, 2025, respectively.

■&nbsp;&nbsp;&nbsp;&nbsp;Our loan purchase and guarantee activity increased in 1Q 2026 compared to 1Q 2025 primarily driven by an increase in refinance activity due to lower mortgage interest rates.

■&nbsp;&nbsp;&nbsp;&nbsp;Our Single-Family mortgage portfolio was $3.2 trillion at March 31, 2026, up 1% year-over-year. The mortgage portfolio continued to grow at a moderate pace.

Freddie Mac 1Q 2026 Form 10-Q 11

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<u>Management's Discussion and Analysis</u> <u>Our Business Segments \| Single-Family</u>

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 13 - Single-Family Segment Financial Results** 

---

| | | | |
|:---|:---|:---|:---|
| | | | **Change** |
| **(Dollars in millions)** | **1Q 2026** | **1Q 2025** | $**%** |
| Net interest income | $5120 | $4753 | 8% |
| Non-interest income | 55 | 165 | (67) |
| **Net revenues** | **5175** | **4918** | **5** |
| (Provision) benefit for credit losses | 311 | (228) | NM |
| Non-interest expense | (1780) | (1871) | 5 |
| **Income before income tax expense** | **3706** | **2819** | **31** |
| Income tax expense | (730) | (558) | (31) |
| **Net income** | **2976** | **2261** | **32** |
| Other comprehensive income (loss), net of taxes and reclassification adjustments | (13) | 8 | NM |
| **Comprehensive income** | **$2963** | **$2269** | **31%** |

---

***Key Drivers:***

■**1Q 2026 vs. 1Q 2025**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;Net income of $3.0 billion, up 32% year-over-year.

–Net revenues were $5.2 billion, up 5% year-over-year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Net interest income was $5.1 billion, up 8% year-over-year, primarily driven by continued mortgage portfolio growth and growth in the mortgage-related investments portfolio.

–The benefit for credit losses was $0.3 billion for 1Q 2026, driven by a credit reserve release primarily attributable to changes in our views of forecasted house price growth rates. The provision for credit losses of $0.2 billion for 1Q 2025 was primarily driven by a credit reserve build attributable to new acquisitions.

–Non-interest expense was $1.8 billion for 1Q 2026, down 5% year-over-year, primarily driven by a decrease in salaries and employee benefits and lower credit enhancement expense.

Freddie Mac 1Q 2026 Form 10-Q 12

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<u>Management's Discussion and Analysis</u>  <u>Our Business Segments \| Multifamily</u>

Multifamily

Housing and Mortgage Market Metrics

The table below presents certain multifamily housing and mortgage market indicators that can significantly affect our business and financial results. For example, vacancy rates provide insight into the balance between supply and demand. Meanwhile, effective rent growth, which accounts for concessions and discounts offered by landlords, represents the actual change in average rental income over time. Certain market and macroeconomic prior period data have been updated to reflect revised historical data.

**Table 14 - Multifamily Housing and Mortgage Market Metrics**<sup>(1)</sup>

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **(UPB in billions)** | **1Q 2026** | **4Q 2025** | **3Q 2025** | **2Q 2025** | **1Q 2025** |
| Apartment vacancy rates | 6.8% | 6.7% | 6.6% | 6.6% | 6.5% |
| Quarterly change in effective rents | 0.6% | (0.8)% | (0.1)% | 0.8% | 0.2% |
| Mortgage debt outstanding<sup>(2)</sup>  | N/A | $2447 | $2393 | $2352 | $2330 |
| Quarterly property price growth rate | 0.3% | 0.4% | (0.1)% | (0.6)% | 0.1% |

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&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;Sources: Apartment vacancy rates and change in effective rents - Moody's Analytics; Mortgage debt outstanding - Federal Reserve Financial Accounts of the United States of America; Property price growth rate - Real Capital Analytics Commercial Property Price Index (RCA CPPI).

&nbsp;&nbsp;&nbsp;&nbsp;(2) &nbsp;&nbsp;&nbsp;&nbsp;The 1Q 2026 U.S. multifamily mortgage debt outstanding balance is not yet available.

Business Results

The table and related discussion below present selected business results of our Multifamily segment.

**Table 15 - Multifamily Segment Business Results**

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| | | | | |
|:---|:---|:---|:---|:---|
| | | | **Change** | **Change** |
| **(UPB in millions, units in thousands)** | **1Q 2026** | **1Q 2025** | **Amount** | **%** |
| **New business activity:** | | | | |
| &nbsp;&nbsp;UPB<sup>(1)</sup>  | $12847 | $10276 | $2571 | 25% |
| &nbsp;&nbsp;Total units financed<sup>(2)</sup> | 99 | 89 | 10 | 11 |
| &nbsp;&nbsp;Mission-driven affordable housing percentage | 66% | 65% |  |  |
| &nbsp;&nbsp;Outstanding index lock agreements and commitments<sup>(3)</sup>  | $22788 | $16179 | $6609 | 41 |
| **New securitization activity**<sup>(4)</sup>**:**  |  |  |  |  |
| &nbsp;&nbsp;Total UPB | $23433 | $16113 | $7320 | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;Senior subordinate securitizations | 666 | 7273 | (6607) | (91) |
| &nbsp;&nbsp;&nbsp;&nbsp;Fully guaranteed securitizations | 22767 | 8840 | 13927 | 158 |
| **Mortgage portfolio at period end:** |  |  |  |  |
| &nbsp;&nbsp;UPB | $498332 | $466500 | $31832 | 7 |
| &nbsp;&nbsp;Fixed-rate percentage | 85% | 83% |  |  |
| &nbsp;&nbsp;Average guarantee fees rate charged (bps)<sup>(5)</sup> | 58 | 52 |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) &nbsp;&nbsp;&nbsp;&nbsp;Excludes new LIHTC investments of $0.2 billion for 1Q 2026. New LIHTC investments in 1Q 2025 were not material.

&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;Includes rental units financed by supplemental loans.

&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;At period end.

&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;Excludes resecuritizations.

&nbsp;&nbsp;&nbsp;&nbsp;(5) &nbsp;&nbsp;&nbsp;&nbsp;Based on guarantee exposure of $440 billion and $407 billion for 1Q 2026 and 1Q 2025, respectively, which includes guaranteed mortgage related securities that are consolidated on our condensed consolidated balance sheet where income from guarantees is recognized in net interest income.

■&nbsp;&nbsp;&nbsp;&nbsp;Our new business activity was $12.8 billion in 1Q 2026, up 25% year-over-year, primarily driven by a larger new business activity pipeline entering 1Q 2026 due to a larger multifamily mortgage originations market. Approximately 66% of our 1Q 2026 new business activity, based on UPB, was mission-driven, affordable housing, exceeding FHFA's annual minimum requirement of 50%.

■&nbsp;&nbsp;&nbsp;&nbsp;Total securitization issuance UPB was $23.4 billion in 1Q 2026, up 45% year-over-year, driven by a larger average securitization pipeline. The larger percentage of fully guaranteed securitizations was due to the Multifamily business

Freddie Mac 1Q 2026 Form 10-Q 13

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<u>Management's Discussion and Analysis</u>  <u>Our Business Segments \| Multifamily</u>

strategy change.

■&nbsp;&nbsp;&nbsp;&nbsp;Our Multifamily mortgage portfolio was $498 billion as of March 31, 2026, up 7% year-over-year, primarily driven by our new business activity.

■&nbsp;&nbsp;&nbsp;&nbsp;The average guarantee fee rate on our guarantee exposures increased year-over-year, primarily due to continued growth of fully guaranteed securitization issuances for which we charge higher guarantee fee rates.

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 16 - Multifamily Segment Financial Results**

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| | | | |
|:---|:---|:---|:---|
| | | | **Change** |
| **(Dollars in millions)** | **1Q 2026** | **1Q 2025** | $**%** |
| Net interest income | $499 | $349 | 43% |
| Non-interest income | 459 | 585 | (22) |
| **Net revenues** | **958** | **934** | **3** |
| (Provision) benefit for credit losses | 9 | (52) | NM |
| Non-interest expense | (242) | (217) | (12) |
| **Income before income tax expense** | **725** | **665** | **9** |
| Income tax expense | (143) | (132) | (8) |
| **Net income** | **582** | **533** | **9** |
| Other comprehensive income (loss), net of taxes and reclassification adjustments | (7) | 26 | NM |
| **Comprehensive income** | **$575** | **$559** | **3%** |

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***Key Drivers:***

■&nbsp;&nbsp;&nbsp;&nbsp;**1Q 2026 vs. 1Q 2025** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;Net income of $0.6 billion, up 9% year-over-year.

–Net revenues were $1.0 billion, up 3% year-over-year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Net interest income was $0.5 billion, up 43% year-over-year, primarily driven by an increase in the balance of fully guaranteed securitizations in the Multifamily mortgage portfolio due to the change in Multifamily business strategy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Non-interest income was $0.5 billion, down 22% year-over-year, primarily driven by a lower volume of loan sale activities, as we shifted the Multifamily business model to primarily issue fully guaranteed securitizations.

Freddie Mac 1Q 2026 Form 10-Q 14

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<u>Management's Discussion and Analysis</u>  <u>Risk Management</u>

**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 17 - Allowance for Credit Losses Activity**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **1Q 2026** | **1Q 2026** | **1Q 2026** | **1Q 2025** | **1Q 2025** | **1Q 2025** |
| **(Dollars in millions)** | **Single-Family** | **Multifamily** | **Total** | **Single-Family** | **Multifamily** | **Total** |
| **Allowance for credit losses:** | **Allowance for credit losses:** | **Allowance for credit losses:** | **Allowance for credit losses:** | **Allowance for credit losses:** | **Allowance for credit losses:** | **Allowance for credit losses:** |
| Beginning balance | $7549 | $956 | $8505 | $6691 | $548 | $7239 |
| Provision (benefit) for credit losses | (311) | (9) | (320) | 228 | 52 | 280 |
| &nbsp;&nbsp;&nbsp;&nbsp;Charge-offs | (178) | (64) | (242) | (191) | (1) | (192) |
| &nbsp;&nbsp;&nbsp;&nbsp;Recoveries collected | 60 | 1 | 61 | 27 | 1 | 28 |
| Net charge-offs | (118) | (63) | (181) | (164) |  | (164) |
| Other<sup>(1)</sup> | 108 | 1 | 109 | 96 |  | 96 |
| **Ending balance** | **$7228** | **$885** | **$8113** | **$6851** | **$600** | **$7451** |
| Average loans outstanding during the period<sup>(2)</sup> | $3148567 | $151752 | $3300319 | $3101599 | $86445 | $3188044 |
| Net charge-offs to average loans outstanding | —% | 0.04% | 0.01% | 0.01% | —% | 0.01% |

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

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

**Table 18 - Allowance for Credit Losses Ratios**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **(Dollars in millions)** | **Single-Family** | **Multifamily** | **Total** | **Single-Family** | **Multifamily** | **Total** |
| **Allowance for credit losses ratios:** | **Allowance for credit losses ratios:** | **Allowance for credit losses ratios:** | **Allowance for credit losses ratios:** | **Allowance for credit losses ratios:** | **Allowance for credit losses ratios:** | **Allowance for credit losses ratios:** |
| Allowance for credit losses<sup>(1)</sup> to total loans outstanding  | 0.22% | 0.42% | 0.23% | 0.23% | 0.46% | 0.24% |
| Non-accrual loans to total loans outstanding | 0.56 | 0.03 | 0.54 | 0.55 | 0.16 | 0.54 |
| Allowance for credit losses to non-accrual loans | 39.46 | 1321.79 | 43.11 | 41.84 | 295.59 | 45.10 |
| **Balances:** | **Balances:** | **Balances:** | **Balances:** | **Balances:** | **Balances:** | **Balances:** |
| Allowance for credit losses on mortgage loans held-for-investment | $6977 | $666 | $7643 | $7297 | $671 | $7968 |
| Total loans outstanding<sup>(2)</sup> | 3146251 | 156792 | 3303043 | 3145436 | 145593 | 3291029 |
| Non-accrual loans<sup>(2)</sup> | 17681 | 50 | 17731 | 17442 | 227 | 17669 |

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&nbsp;&nbsp;&nbsp;&nbsp;(1)Represents allowance for credit losses on mortgage loans held-for-investment.

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

■&nbsp;&nbsp;&nbsp;&nbsp;**March 31, 2026 vs. December 31, 2025 -** The balance of non-accrual loans increased by $62 million due to a $239 million increase in the balance of non-accrual loans in Single-Family, partially offset by a $177 million decrease in the balance of non-accrual loans in Multifamily. The decrease in Multifamily was primarily due to loan dispositions and borrower re-performance.

Freddie Mac 1Q 2026 Form 10-Q 15

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<u>Management's Discussion and Analysis</u>  <u>Risk Management</u>

Single-Family Mortgage Credit Risk

Credit Quality of New Business Activity

***Loan Purchase Credit Characteristics***

We monitor and evaluate market conditions that could affect the credit quality of our single-family loan purchases. See **MD&A - Our Business Segments - *Single-Family - Housing and Mortgage Market Metrics*** for additional information on market conditions. 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. See **MD&A - Regulation and Supervision - *Federal Housing Finance Agency*** in our 2025 Annual Report for additional information on guidance from FHFA.

The charts below show the credit profile of the single-family loans we purchased.

***Weighted Average Original LTV Ratio*** ![148](fmcc-20260331_g8.jpg)

***Weighted Average Original Credit Score***![191](fmcc-20260331_g9.jpg)

***Weighted Average Original DTI Ratio***![348](fmcc-20260331_g10.jpg)

Freddie Mac 1Q 2026 Form 10-Q 16

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<u>Management's Discussion and Analysis</u>  <u>Risk Management</u>

The table below contains additional information about the single-family loans we purchased.

**Table 19 - Single-Family New Business Activity**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **1Q 2026** | **1Q 2026** | **1Q 2025** | **1Q 2025** |
| **(Dollars in millions, except average loan UPB)** | **Amount** | **% of Total** | **Amount** | **% of Total** |
| 20- and 30-year, amortizing fixed-rate | $91587 | 90% | $72772 | 93% |
| 15-year or less, amortizing fixed-rate | 7521 | 7 | 4434 | 6 |
| Adjustable-rate | 3405 | 3 | 440 | 1 |
| **Total** | **$102513** | **100%** | **$77646** | **100%** |
| Average loan UPB (in thousands) | $365 |  | $347 |  |
| **Percentage of purchases** |  |  |  |  |
| DTI ratio > 45% |  | 24% |  | 30% |
| Original LTV ratio > 90% |  | 19 |  | 23 |
| Transaction type: |  |  |  |  |
| &nbsp;&nbsp;Guarantor swap |  | 63 |  | 71 |
| &nbsp;&nbsp;Cash window |  | 37 |  | 29 |
| Property type: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Detached single-family houses and townhouses |  | 93 |  | 92 |
| &nbsp;&nbsp;&nbsp;Condominium or co-op |  | 7 |  | 8 |
| Occupancy type: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Primary residence |  | 94 |  | 93 |
| &nbsp;&nbsp;&nbsp;Second home |  | 2 |  | 2 |
| &nbsp;&nbsp;&nbsp;Investment property |  | 4 |  | 5 |
| Loan purpose: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Purchase |  | 58 |  | 79 |
| &nbsp;&nbsp;&nbsp;Cash-out refinance |  | 10 |  | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other refinance |  | 32 |  | 10 |

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Credit Enhancements

We engage in various credit enhancement arrangements to reduce our credit risk exposure on our single-family loans.

***Single-Family Mortgage Portfolio Newly Acquired Credit Enhancements***

The table below provides the UPB of the mortgage loans acquired during the periods presented that were covered by primary mortgage insurance, the UPB of the mortgage loans covered by CRT transactions we entered into during the periods presented, and maximum coverage related to these newly acquired credit enhancements. In recent periods, we have changed our business strategy and revised our CRT transactions by retaining higher levels of initial losses. As a result, the benefits provided by these revised CRT transactions may be lower than those provided by the earlier CRT transactions even if the maximum coverage provided by the more recent CRT transactions is similar to that provided by the earlier CRT transactions.

Freddie Mac 1Q 2026 Form 10-Q 17

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<u>Management's Discussion and Analysis</u>  <u>Risk Management</u>

**Table 20 - Single-Family Mortgage Portfolio Newly Acquired Credit Enhancements**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **1Q 2026** | **1Q 2026** | **1Q 2025** | **1Q 2025** |
| **(In millions)** | **UPB**<sup>(1)</sup> | **Maximum Coverage**<sup>(2)</sup> | **UPB**<sup>(1)</sup> | **Maximum Coverage**<sup>(2)</sup> |
| **Primary mortgage insurance** | $34679 | $8830 | $29454 | $7740 |
| **CRT transactions:** |  |  |  |  |
| &nbsp;&nbsp;STACR | 49486 | 1135 | 37961 | 1296 |
| &nbsp;&nbsp;ACIS | 9795 | 312 | 24238 | 783 |
| &nbsp;&nbsp;Other | 92 | 92 | 885 | 158 |
| **Total CRT issuance** | **$59373** | **$1539** | **$63084** | **$2237** |

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&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;The primary mortgage insurance and CRT transactions presented in this table are not mutually exclusive as a single loan may be covered by both primary mortgage insurance and CRT transactions.

&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;The credit risk positions to which the maximum coverage applies may vary on a transaction-by-transaction basis.

***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 Single-Family mortgage portfolio.

**Table 21 - Single-Family Mortgage Portfolio Credit Enhancement Coverage Outstanding**

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| | | | |
|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| **(Dollars in millions)** | **UPB** | **% of Portfolio** | **Maximum Coverage**<sup>(1)</sup> |
| Primary mortgage insurance<sup>(2)</sup> | $679825 | 22% | $181098 |
| STACR | 1180408 | 37 | 25056 |
| ACIS | 551892 | 17 | 14625 |
| Other | 37637 | 1 | 10130 |
| Less: UPB with multiple credit enhancements and other reconciling items<sup>(3)</sup> | (505174) | (15) |  |
| **Single-Family mortgage portfolio - credit-enhanced** | **1944588** | **62** | **230909** |
| Single-Family mortgage portfolio - non-credit-enhanced | 1213393 | 38 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; N/A |
| **Total** | **$3157981** | **100%** | **$230909** |

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| | | | |
|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **(Dollars in millions)** | **UPB** | **% of Portfolio** | **Maximum Coverage**<sup>(1)</sup> |
| Primary mortgage insurance<sup>(2)</sup> | $680950 | 22% | $181462 |
| STACR | 1165412 | 37 | 24935 |
| ACIS | 594409 | 19 | 15081 |
| Other | 38373 | 1 | 10361 |
| Less: UPB with multiple credit enhancements and other reconciling items<sup>(3)</sup> | (552393) | (18) |  |
| **Single-Family mortgage portfolio - credit-enhanced** | **1926751** | **61** | **231839** |
| Single-Family mortgage portfolio - non-credit-enhanced | 1229539 | 39 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; N/A |
| **Total** | **$3156290** | **100%** | **$231839** |

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&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;The credit risk positions to which the maximum coverage applies may vary on a transaction-by-transaction basis.

&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;Amounts exclude certain loans for which we do not control servicing, as the coverage information for these loans is not readily available to us.

&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;Other reconciling items primarily include timing differences in reporting cycles between the UPB of certain CRT transactions and the UPB of the underlying loans.

Freddie Mac 1Q 2026 Form 10-Q 18

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<u>Management's Discussion and Analysis</u>  <u>Risk Management</u>

***Credit Enhancement Coverage Characteristics***

The table below provides the serious delinquency rates for the credit-enhanced and non-credit-enhanced loans in our Single-Family 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 22 - Serious Delinquency Rates for Credit-Enhanced and Non-Credit-Enhanced Loans in Our Single-Family Mortgage Portfolio**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** |
| **(% of portfolio based on UPB)**<sup>(1)</sup> | **% of Portfolio**<sup>(2)</sup> | **SDQ Rate** | **% of Portfolio**<sup>(2)</sup> | **SDQ Rate** |
| Credit-enhanced: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Primary mortgage insurance | 22% | 1.23% | 22% | 1.19% |
| &nbsp;&nbsp;&nbsp;&nbsp;CRT and other | 53 | 0.70 | 52 | 0.68 |
| Non-credit-enhanced | 38 | 0.41 | 39 | 0.40 |
| **Total** | **N/A** | **0.60** | **N/A** | **0.59** |

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

&nbsp;&nbsp;&nbsp;&nbsp;(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 was $0.1 billion as of both March 31, 2026 and December 31, 2025.

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.

***Loan Credit Characteristics***

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

**Table 23 - Loan Credit Characteristics of Our Single-Family Mortgage Portfolio**<sup>(1)</sup>

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| **(Dollars in millions, except average loan UPB)** | **Amount** | **Original Credit<br>Score** | **Current Credit<br>Score** | **Original<br>LTV Ratio** | **Current LTV<br>Ratio** | **SDQ Rate** | **% of UPB with Credit Enhancement** |
| Single-Family mortgage portfolio year of origination: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;2026 | $64135 | 759 | 759 | 75% | 76% | 0.00% | 33% |
| &nbsp;&nbsp;2025 | 352457 | 756 | 752 | 77 | 76 | 0.11 | 48 |
| &nbsp;&nbsp;2024 | 272367 | 753 | 749 | 78 | 74 | 0.69 | 72 |
| &nbsp;&nbsp;2023 | 199315 | 750 | 741 | 79 | 71 | 1.19 | 76 |
| &nbsp;&nbsp;2022 | 356008 | 746 | 740 | 76 | 63 | 1.03 | 69 |
| &nbsp;&nbsp;2021 and prior | 1913699 | 751 | 757 | 72 | 42 | 0.55 | 61 |
| **Total** | **$3157981** | **751** | **753** | **74** | **53** | **0.60** | **62** |
| &nbsp;&nbsp;Loan count (in thousands) | 13922 |  |  |  |  |  |  |
| &nbsp;&nbsp;Average loan UPB (in thousands) | $227 |  |  |  |  |  |  |

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Freddie Mac 1Q 2026 Form 10-Q 19

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<u>Management's Discussion and Analysis</u>  <u>Risk Management</u>

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **(Dollars in millions, except average loan UPB)** | **Amount** | **Original Credit<br>Score** | **Current Credit<br>Score** | **Original<br>LTV Ratio** | **Current LTV<br>Ratio** | **SDQ Rate** | **% of UPB with Credit Enhancement** |
| Single-Family mortgage portfolio year of origination: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;2025 | $333409 | 757 | 753 | 77% | 76% | 0.06% | 38% |
| &nbsp;&nbsp;&nbsp;2024 | 291738 | 753 | 752 | 78 | 74 | 0.56 | 68 |
| &nbsp;&nbsp;&nbsp;2023 | 211793 | 750 | 743 | 79 | 71 | 1.06 | 76 |
| &nbsp;&nbsp;&nbsp;2022 | 364361 | 746 | 741 | 76 | 63 | 1.01 | 69 |
| &nbsp;&nbsp;&nbsp;2021 | 841701 | 752 | 755 | 71 | 49 | 0.44 | 64 |
| &nbsp;&nbsp;&nbsp;2020 and prior | 1113288 | 750 | 761 | 73 | 37 | 0.60 | 58 |
| **Total** | **$3156290** | **751** | **754** | **74** | **53** | **0.59** | **61** |
| &nbsp;&nbsp;Loan count (in thousands) | 13933 |  |  |  |  |  |  |
| &nbsp;&nbsp;Average loan UPB (in thousands) | $227 |  |  |  |  |  |  |

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&nbsp;&nbsp;&nbsp;&nbsp;(1)Excludes certain credit quality characteristics and serious delinquency rate information on loans underlying certain securitization products for which data was not available.

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

**Table 24 - Single-Family Mortgage Portfolio Attribute Combinations**<sup>(1)</sup> 

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| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| | **CLTV ≤ 60** | **CLTV ≤ 60** | **CLTV > 60 to 80** | **CLTV > 60 to 80** | **CLTV > 80 to 90** | **CLTV > 80 to 90** | **CLTV > 90 to 100** | **CLTV > 90 to 100** | **CLTV > 100** | **CLTV > 100** | **All Loans** | **All Loans** |
| **Current credit score** | **% of Portfolio** | **SDQ Rate** | **% of Portfolio** | **SDQ Rate** | **% of Portfolio** | **SDQ Rate** | **% of Portfolio** | **SDQ Rate** | **% of Portfolio** | **SDQ Rate** | **% of Portfolio** | **SDQ Rate** |
| 740 and above | 47% | 0.04% | 16% | 0.05% | 5% | 0.07% | 3% | 0.09% | —% | NM | 71% | 0.04% |
| 700 to 739 | 7 | 0.20 | 3 | 0.20 | 2 | 0.22 | 1 | 0.22 |  | NM | 13 | 0.20 |
| 680 to 699 | 2 | 0.38 | 1 | 0.36 |  | NM | 1 | 0.43 |  | NM | 4 | 0.39 |
| 660 to 679 | 2 | 0.58 | 1 | 0.56 |  | NM |  | NM |  | NM | 3 | 0.59 |
| 620 to 659 | 2 | 1.33 | 1 | 1.35 |  | NM |  | NM |  | NM | 3 | 1.38 |
| Less than 620 | 3 | 6.55 | 2 | 9.00 | 1 | 11.09 |  | NM |  | NM | 6 | 7.64 |
| **Total** | **63%** | **0.48** | **24%** | **0.83** | **8%** | **1.07** | **5%** | **1.05** | **— %** | **NM** | **100%** | **0.60** |

---

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **CLTV ≤ 60** | **CLTV ≤ 60** | **CLTV > 60 to 80** | **CLTV > 60 to 80** | **CLTV > 80 to 90** | **CLTV > 80 to 90** | **CLTV > 90 to 100** | **CLTV > 90 to 100** | **CLTV > 100** | **CLTV > 100** | **All Loans** | **All Loans** |
| **Current credit score** | **% of Portfolio** | **SDQ Rate** | **% of Portfolio** | **SDQ Rate** | **% of Portfolio** | **SDQ Rate** | **% of Portfolio** | **SDQ Rate** | **% of Portfolio** | **SDQ Rate** | **% of Portfolio** | **SDQ Rate** |
| 740 and above | 49% | 0.04% | 16% | 0.05% | 5% | 0.07% | 2% | 0.09% | —% | NM | 72% | 0.04% |
| 700 to 739 | 7 | 0.21 | 3 | 0.19 | 1 | 0.26 | 2 | 0.22 |  | NM | 13 | 0.21 |
| 680 to 699 | 2 | 0.40 | 1 | 0.41 |  | NM | 1 | 0.48 |  | NM | 4 | 0.41 |
| 660 to 679 | 2 | 0.64 | 1 | 0.64 |  | NM |  | NM |  | NM | 3 | 0.66 |
| 620 to 659 | 2 | 1.41 | 1 | 1.40 |  | NM |  | NM |  | NM | 3 | 1.45 |
| Less than 620 | 3 | 6.60 | 1 | 9.14 | 1 | 11.05 |  | NM |  | NM | 5 | 7.66 |
| **Total** | **65%** | **0.47** | **23%** | **0.81** | **7%** | **1.04** | **5%** | **1.00** | **— %** | **NM** | **100%** | **0.59** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) &nbsp;&nbsp;&nbsp;&nbsp;Excludes loans underlying certain securitization products for which current credit score is not available.

***Geographic Concentrations***

We purchase mortgage loans from across the U.S. but do not purchase an equal number of loans from each geographic area, leading to concentrations of credit risk in certain geographic areas. Local economic and other conditions can affect the borrower's ability to repay and the value of the underlying collateral. Property insurance markets in certain geographic areas, including areas with high risk of natural disaster events, have observed increases in property insurance premiums and reduction in the availability of coverage in recent years. 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 additional information about the geographic distribution of our Single-Family mortgage portfolio.

Freddie Mac 1Q 2026 Form 10-Q 20

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<u>Management's Discussion and Analysis</u>  <u>Risk Management</u>

***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 presents the delinquency rates of mortgage loans in our Single-Family mortgage portfolio.

![380](fmcc-20260331_g11.jpg)

The percentage of loans that were one month past due and the percentage of loans that were two months past due both increased as of March 31, 2026 compared to March 31, 2025. The percentage of loans one month past due can be volatile due to seasonality, whether the last day of the period falls on a weekend, and other factors that may not be indicative of default. As a result, the percentage of loans two months past due tends to be a better early performance indicator than the percentage of loans one month past due.

Our Single-Family serious delinquency rate increased to 0.60% as of March 31, 2026, compared to 0.59% as of March 31, 2025. See Note 3 for additional information on the payment status of our single-family mortgage loans.

Loss Mitigation Activities

We offer a variety of borrower assistance programs. For purposes of the disclosure below related to loss mitigation activities, we generally exclude loans for which we do not control servicing. See Note 3 for additional information on our loss mitigation activities. For information on our refinance programs, see the MD&A - Risk Management - *Credit Risk - Single-Family Mortgage Credit Risk* section in our 2025 Annual Report.

***Loan Workout Activities***

We continue to help families retain their homes or otherwise avoid foreclosure through loan workouts. The table below provides details about the single-family loan workout activities that were completed during the periods presented.

**Table 25 - Single-Family Completed Loan Workout Activity** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1Q 2026** | **1Q 2026** | **1Q 2025** | **1Q 2025** |
| **(UPB in millions, loan count in thousands)** | **UPB** | **Loan Count** | **UPB** | **Loan Count** |
| Payment deferral plans | $2319 | 9 | $2874 | 11 |
| Loan modifications | 2375 | 8 | 1894 | 7 |
| Forbearance plans and other<sup>(1)</sup> | 1744 | 7 | 1640 | 7 |
| **Total** | **$6438** | **24** | **$6408** | **25** |

---

Freddie Mac 1Q 2026 Form 10-Q 21

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<u>Management's Discussion and Analysis</u>  <u>Risk Management</u>

&nbsp;&nbsp;&nbsp;&nbsp;(1) &nbsp;&nbsp;&nbsp;&nbsp;The forbearance data is limited to loans in forbearance that are past due based on the loans' original contractual terms and excludes 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. Other includes repayment plans and foreclosure alternatives.

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, finalized payment deferral plans, settled 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 and repayment plans that had been initiated but not completed and trial period modifications. As of March 31, 2026, there were approximately 16,000 loans in active forbearance plans, approximately 16,000 loans on trial period modifications, and approximately 4,000 loans in active repayment plans.

Multifamily Mortgage Credit Risk

Credit Quality of New Business Activity

Our underwriting standards focus on the LTV ratio and DSCR, which estimates the value of the collateral and 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 ratio and original DSCR for our new business activity.

***Weighted Average Original LTV Ratio*** ![148](fmcc-20260331_g12.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***Weighted Average Original DSCR***<sup>(1)</sup> 

![193](fmcc-20260331_g13.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1) Assumes monthly payments that reflect amortization of principal.

Credit Enhancements

In connection with the acquisition, guarantee, and/or securitization of a loan or group of loans, we may obtain various forms of credit protection that reduce our credit risk exposure to the underlying mortgage borrower and our required capital. We evaluate and update our risk transfer strategy as needed depending on our business strategy, market conditions, and regulatory requirements.

***Multifamily Mortgage Portfolio CRT Issuance***

The table below provides the UPB of the multifamily mortgage loans covered by CRT transactions issued during the periods presented as well as the maximum coverage provided by those transactions upon issuance. In recent periods, we have primarily obtained credit enhancement coverage through MCIP and MSCR notes transactions due to our business strategy change. We typically retain higher levels of initial losses in these transactions compared to senior subordinate securitization transactions. As a result, the benefits provided by MCIP and MSCR notes may be lower than those provided by senior subordinate securitization transactions.

Freddie Mac 1Q 2026 Form 10-Q 22

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<u>Management's Discussion and Analysis</u>  <u>Risk Management</u>

**Table 26 - Multifamily Mortgage Portfolio CRT Issuance** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1Q 2026** | **1Q 2026** | **1Q 2025** | **1Q 2025** |
| **(In millions)** | **UPB** | **Maximum Coverage**<sup>(1)</sup> | **UPB** | **Maximum Coverage**<sup>(1)</sup> |
| Subordination | $666 | $50 | $6604 | $384 |
| MSCR | 20661 | 336 | 11574 | 279 |
| MCIP | 20661 | 449 | 11574 | 215 |
| Lender risk-sharing |  |  | 147 | 8 |
| Less: UPB with more than one type of CRT | (20661) |  | (11574) |  |
| **Total CRT issuance** | **$21327** | **$835** | **$18325** | **$886** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) The credit risk positions to which the maximum coverage applies may vary on a transaction-by-transaction basis.

***Multifamily Mortgage Portfolio Credit Enhancement Coverage Outstanding***

While subordination continues to be the primary form of credit enhancement coverage on our mortgage portfolio, our use of MCIP and MSCR notes transactions has grown in recent periods as a result of our business strategy change.

The table below presents the UPB and delinquency rates for both credit-enhanced and non-credit-enhanced loans underlying our Multifamily mortgage portfolio.

**Table 27 - Credit-Enhanced and Non-Credit-Enhanced Loans Underlying Our Multifamily Mortgage Portfolio** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** |
| **(Dollars in millions)** | **UPB** | **Delinquency Rate** | **UPB** | **Delinquency Rate** |
| Credit-enhanced: |  |  |  |  |
| &nbsp;&nbsp;Subordination<sup>(1)</sup> | $321367 | 0.57% | $329709 | 0.56% |
| &nbsp;&nbsp;&nbsp;MSCR/MCIP | 122011 | 0.08 | 102444 | 0.24 |
| &nbsp;&nbsp;&nbsp;Other | 8303 | 0.73 | 8903 | 0.39 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total credit-enhanced** | **451681** | **0.44** | **441056** | **0.48** |
| Non-credit-enhanced | 46651 | 0.29 | 54779 | 0.13 |
| **Total** | **$498332** | **0.43** | **$495835** | **0.44** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;As of March 31, 2026 and December 31, 2025, our maximum coverage outstanding provided by subordination in nonconsolidated VIEs was $31.9 billion and $33.2 billion, respectively.

The Multifamily delinquency rate was 0.43% at March 31, 2026. As of March 31, 2026, 94% of the delinquent loans in the Multifamily mortgage portfolio have credit enhancement coverage.

***Credit Enhancement Recoveries***

Our expected recovery receivable from freestanding credit enhancements was $0.1 billion as of both March 31, 2026 and December 31, 2025.

***Seller Provided Indemnifications***

Sellers are required to make certain representations and warranties regarding the loans they sell to us. In the event of a breach, sellers are obligated to either repurchase the affected loans or indemnify us for any losses incurred. Instead of demanding immediate repurchase, we may enter into forbearance and indemnification agreements with sellers. These agreements, among other provisions, delay the repurchase obligation for a specified period and fully transfer the risk of loss associated with the loan from us to the seller. Typically, as part of such agreements, we require sellers to provide cash or other collateral to secure potential future indemnification losses, although we remain subject to counterparty risk. While there has been an increase in the volume of seller repurchase and indemnification activities attributable to breaches of seller representation and warranties, these activities have remained limited. However, the volume of these activities may increase in the future.

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 from our investments in mortgage-related assets, non-mortgage assets (including U.S. Treasury securities), the debt we issue to fund these assets, and our Single-Family guarantees.

Freddie Mac 1Q 2026 Form 10-Q 23

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<u>Management's Discussion and Analysis</u>  <u>Risk Management</u>

Interest-Rate Risk

The tables below 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 estimated present value (gains) losses assuming an immediate 100 bps shift in the yield curve. The interest-rate sensitivity of a mortgage portfolio varies across a wide range of interest rates.

**Table 28 - Duration Gap and PVS-YC and PVS-L Results Assuming Shifts of the Yield Curve** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Duration Gap** | **PVS-YC**<sup>(1)</sup> | **PVS-L**<sup>(1)</sup> | **PVS-L**<sup>(1)</sup> | **Duration Gap** | **PVS-YC**<sup>(1)</sup> | **PVS-L**<sup>(1)</sup> | **PVS-L**<sup>(1)</sup> |
| (**Dollars in millions**, duration gap in months) | **Duration Gap** | **25 bps** | **50 bps** | **100 bps** | **Duration Gap** | **25 bps** | **50 bps** | **100 bps** |
| Interest-rate risk related to: |  |  |  |  |  |  |  |  |
| Financial instruments primarily funded by debt | 0.4 | $2 | $12 | ($29) | 0.4 | $5 | $26 | $18 |
| All other financial instruments<sup>(2)</sup> | 47.4 | 75 | 1617 | 3417 | 29.5 | 82 | 1009 | 2137 |
| **All financial instruments** | **11.6** | **77** | **1629** | **3388** | **7.3** | **76** | **1035** | **2154** |
| **PVS** |  | **77** | **1629** | **3388** |  | **76** | **1035** | **2154** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Positive amounts indicate the associated shift in the yield curve results in estimated present value losses. Negative amounts indicate the associated shift in the yield curve results in estimated present value gains.

&nbsp;&nbsp;&nbsp;&nbsp;(2)The UPB was $79.2 billion as of March 31, 2026 and $75.7 billion as of December 31, 2025.

**Table 29 - Duration Gap and PVS Results** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **1Q 2026** | **1Q 2026** | **1Q 2026** | **1Q 2025** | **1Q 2025** | **1Q 2025** |
| (**Dollars in millions**, duration gap in months) | **Duration**<br>**Gap** | **PVS-YC**<br>**25 bps** | **PVS-L**<br>**50 bps** | **Duration<br>Gap** | **PVS-YC<br>25 bps** | **PVS-L<br>50 bps** |
| Average | 9.3 | $65 | $1324 | 0.8 | $9 | $86 |
| Minimum | 7.8 | 32 | 1053 |  | 1 |  |
| Maximum | 12.0 | 88 | 1666 | 2.0 | 24 | 228 |
| Standard deviation | 1.3 | 16 | 171 | 0.6 | 7 | 81 |

---

Derivatives enable us to reduce our economic interest-rate risk exposure as we continue to align our derivatives 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 bps shift in the yield curve for the periods presented, would have been higher if we had not used derivatives.

**Table 30 - PVS-L Results Before Derivatives and After Derivatives**

---

| | | |
|:---|:---|:---|
| **(In millions)** | **March 31, 2026** | **December 31, 2025** |
| PVS-L (50 bps): |  |  |
| &nbsp;&nbsp;Before derivatives | $3440 | $3364 |
| &nbsp;&nbsp;After derivatives | 1629 | 1035 |
| Effect of derivatives | (1811) | (2329) |

---

When managing interest-rate risk related to financial instruments not funded primarily by debt, we also consider the sensitivity of coupon income (interest income based on the stated or reinvestment rates) attributable to these instruments, which we believe is an appropriate measure as we are targeting duration to reduce our income volatility. We estimate the impact of a parallel 100 basis point increase and decrease in interest rates on coupon income attributable to these instruments over the next 12 months relative to the baseline scenario, assuming the total balance of these instruments stays constant. Unlike our economic risk measures (such as PVS and duration gap), which estimate changes to portfolio value, this analysis reflects only the coupon income sensitivity of our reported results to interest rate changes over a specific timeframe.

At March 31, 2026 and 2025, we estimate that a parallel 100 basis point increase in interest rates would result in an increase of $263 million and $489 million, respectively, and a parallel 100 basis point decrease would result in a decrease of $343 million and $492 million, respectively, in coupon income for financial instruments not primarily funded by debt, relative to the baseline.

Freddie Mac 1Q 2026 Form 10-Q 24

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<u>Management's Discussion and Analysis</u>  <u>Liquidity and Capital Resources</u>

**LIQUIDITY AND CAPITAL RESOURCES**

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

Our primary sources of liquidity include both our other investments portfolio and our mortgage-related investments portfolio. See MD&A - Our Portfolios for additional information about our other investments portfolio and mortgage-related 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 non-mortgage-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-interest-bearing deposits at the Federal Reserve Bank of New York and interest-bearing deposits at commercial banks. Our interest-bearing deposits at commercial banks totaled $4.0 billion as of March 31, 2026 and $4.8 billion as of December 31, 2025.

The primary source of liquidity from our mortgage-related investments portfolio is our holdings of agency securities. In addition, we hold certain single-family loans and multifamily loans that could be securitized and would then be available for sale or for use as collateral for repurchase agreements.

Primary Sources of Funding

We fund our business using short-term and long-term debt, securities sold under agreements to repurchase, and debt issued by consolidated trusts. Competition for funding can vary with economic, financial market, and regulatory environments. The amount, type, and term of our funding sources is based on a variety of factors and is designed to meet our ongoing cash needs and to comply with our Liquidity Management Framework.

Short-term and Long-term Debt

We issue debt to fund our operations. These instruments are unsecured general corporate obligations and consist of both short-term debt, which are instruments with original maturities of one year or less, and long-term debt, which are instruments with original maturities of more than one year.

As of March 31, 2026, our aggregate indebtedness pursuant to the Purchase Agreement was $198.0 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.

The table below summarizes the par value and the average rate of short-term and long-term debt securities 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 securities from time to time for a variety of reasons, including managing our funding composition and supporting the liquidity of our debt securities.

Freddie Mac 1Q 2026 Form 10-Q 25

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<u>Management's Discussion and Analysis</u>  <u>Liquidity and Capital Resources</u>

**Table 31 - Short-term and Long-term Debt Activity**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1Q 2026** | **1Q 2026** | **1Q 2025** | **1Q 2025** |
| **(Dollars in millions)** | **Par Value** | **Average Rate**<sup>(1)</sup> | **Par Value** | **Average Rate**<sup>(1)</sup> |
| **Short-term Debt:** | | | | |
| &nbsp;&nbsp;&nbsp;Beginning balance | $37867 | 3.82% | $14716 | 4.59% |
| &nbsp;&nbsp;&nbsp;Issuances | 31365 | 3.64 | 38793 | 4.31 |
| &nbsp;&nbsp;&nbsp;Repayments | (1480) | 3.86 |  |  |
| &nbsp;&nbsp;&nbsp;Maturities | (43194) | 3.78 | (39052) | 4.42 |
| &nbsp;&nbsp;**Total short-term debt** | **24558** | **3.66** | **14457** | **4.29** |
| **Long-term Debt:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Beginning balance | 172693 | 4.15 | 172942 | 3.65 |
| &nbsp;&nbsp;&nbsp;Issuances | 34244 | 3.99 | 22195 | 4.88 |
| &nbsp;&nbsp;&nbsp;Repayments | (22750) | 4.41 | (18106) | 5.10 |
| &nbsp;&nbsp;&nbsp;Maturities | (10721) | 5.07 | (6824) | 2.16 |
| &nbsp;&nbsp;&nbsp;**Total long-term debt** | **173466** | **4.03** | **170207** | **3.72** |
| **Total short-term and long-term debt, net** | **$198024** | **3.98%** | **$184664** | **3.76%** |

---

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

Our callable debt provides us with the option to repay the outstanding principal balance of the debt prior to its contractual maturity date. As of March 31, 2026, $80.5 billion of the outstanding $98.7 billion of callable debt may be called within one year, not including callable debt due to contractually mature within one year.

***Maturity and Redemption Dates***

The table below presents the par value of total short-term and long-term debt 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 short-term and long-term debt.

**Table 32 - Maturity and Redemption Dates** 

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| | | | | |
|:---|:---|:---|:---|:---|
| | **As of March 31, 2026** | **As of March 31, 2026** | **As of December 31, 2025** | **As of December 31, 2025** |
| **(In millions)** | **Contractual Maturity Date** | **Earliest Redemption Date** | **Contractual Maturity Date** | **Earliest Redemption Date** |
| Short-term debt | $24558 | $24558 | $37867 | $37867 |
| Long-term debt: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;1 year or less | 44246 | 124760 | 45515 | 120398 |
| &nbsp;&nbsp;&nbsp;1 year through 2 years | 40497 | 31258 | 43860 | 34849 |
| &nbsp;&nbsp;&nbsp;2 years through 3 years | 24880 | 5660 | 22474 | 5615 |
| &nbsp;&nbsp;&nbsp;3 years through 4 years | 9814 | 2070 | 9806 | 2055 |
| &nbsp;&nbsp;&nbsp;4 years through 5 years | 40002 | 2978 | 33871 |  |
| &nbsp;&nbsp;&nbsp;Thereafter | 13539 | 6252 | 16622 | 9231 |
| STACR and SCR debt<sup>(1)</sup> | 488 | 488 | 546 | 546 |
| **Total short-term and long-term debt** | **$198024** | **$198024** | **$210561** | **$210561** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)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 borrowers at any time generally without penalty and are, therefore, included as a separate category in the table.

Debt Issued by Consolidated Trusts

Debt issued by consolidated trusts relates to securitization transactions that we consolidate for accounting purposes. We primarily issue this type of debt by securitizing mortgage loans to finance our guarantee activities. When we consolidate securitization trusts, we recognize on our condensed consolidated balance sheets the assets held by the trusts, the majority of which are mortgage loans, and the debt issued by the trusts.

Freddie Mac 1Q 2026 Form 10-Q 26

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<u>Management's Discussion and Analysis</u>  <u>Liquidity and Capital Resources</u>

The table below shows the issuance and extinguishment activity for the debt issued by consolidated trusts.

**Table 33 - Debt Issued by Consolidated Trusts**

---

| | | |
|:---|:---|:---|
| **(In millions)** | **1Q 2026** | **1Q 2025** |
| Beginning balance | $3163684 | $3085981 |
| Issuances | 165358 | 120942 |
| Repayments and extinguishments | (147061) | (97496) |
| **Ending balance** | **3181981** | **3109427** |
| Unamortized premiums and discounts | 33014 | 35821 |
| **Debt issued by consolidated trusts** | **$3214995** | **$3145248** |

---

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 long-term liquidity needs. These off-balance sheet arrangements primarily consist of guarantees and commitments. Certain of these arrangements present credit risk exposure. 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 slightly from $4.8 billion as of March 31, 2025 to $4.5 billion as of March 31, 2026.

Capital Resources

The table below presents activity related to our net worth.

**Table 34 - Net Worth Activity**

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| | | |
|:---|:---|:---|
| **(In millions)** | **1Q 2026** | **1Q 2025** |
| Beginning balance | $70384 | $59575 |
| Comprehensive income | 3538 | 2828 |
| Capital draw from Treasury |  |  |
| Senior preferred stock dividends declared |  |  |
| **Total equity / net worth** | **$73922** | **$62403** |
| Remaining Treasury funding commitment | $140162 | $140162 |
| Aggregate draws under Purchase Agreement | 71648 | 71648 |
| Aggregate cash dividends paid to Treasury | 119680 | 119680 |
| Liquidation preference of the senior preferred stock | 143032 | 132223 |

---

Freddie Mac 1Q 2026 Form 10-Q 27

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<u>Management's Discussion and Analysis</u>  <u>Liquidity and Capital Resources</u>

ERCF

For a description of our capital requirements under the ERCF, including the amended provisions, see the MD&A - Regulation and Supervision section in our 2025 Annual Report.

***Capital Metrics***

The table below presents the components of our regulatory capital.

**Table 35 - Regulatory Capital Components** 

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| | | |
|:---|:---|:---|
| **(In millions)** | **March 31, 2026** | **December 31, 2025** |
| **Total equity** | $73922 | $70384 |
| Less: |  |  |
| &nbsp;&nbsp;Senior preferred stock | 72648 | 72648 |
| &nbsp;&nbsp;Preferred stock | 14109 | 14109 |
| Common equity | (12835) | (16373) |
| &nbsp;&nbsp;Less: Deferred tax assets arising from temporary differences that exceed 10% of CET1 capital and other regulatory adjustments | 4886 | 5169 |
| **Common equity Tier 1 capital** | **(17721)** | **(21542)** |
| &nbsp;&nbsp;Add: Preferred stock | 14109 | 14109 |
| **Tier 1 capital** | **(3612)** | **(7433)** |
| &nbsp;&nbsp;Tier 2 capital adjustments |  |  |
| **Adjusted total capital** | **($3612)** | **($7433)** |

---

The table below presents the components of our statutory capital.

**Table 36 - Statutory Capital Components** 

---

| | | |
|:---|:---|:---|
| **(In millions)** | **March 31, 2026** | **December 31, 2025** |
| **Total equity** | $73922 | $70384 |
| Less: |  |  |
| &nbsp;&nbsp;Senior preferred stock | 72648 | 72648 |
| &nbsp;&nbsp;AOCI, net of taxes | 31 | 51 |
| **Core capital** | **1243** | **(2315)** |
| &nbsp;&nbsp;General allowance for foreclosure losses<sup>(1)</sup> | 8113 | 8505 |
| **Total capital** | **$9356** | **$6190** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Represents our allowance for credit losses.

Freddie Mac 1Q 2026 Form 10-Q 28

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<u>Management's Discussion and Analysis</u>  <u>Liquidity and Capital Resources</u>

The table below presents our capital metrics under the ERCF.

**Table 37 - Capital Metrics Under ERCF** 

---

| | | |
|:---|:---|:---|
| **(In billions)** | **March 31, 2026** | **December 31, 2025** |
| Adjusted total assets | $3903 | $3905 |
| Risk-weighted assets (standardized approach): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit risk | 1112 | 1091 |
| &nbsp;&nbsp;&nbsp;&nbsp;Market risk | 74 | 67 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operational risk | 73 | 73 |
| **Total risk-weighted assets** | **$1259** | **$1231** |
| **(In billions)** | **March 31, 2026** | **December 31, 2025** |
| Stress capital buffer | $29 | $29 |
| Stability capital buffer | 31 | 30 |
| Countercyclical capital buffer amount |  |  |
| **PCCBA** | **$60** | **$59** |
| PLBA | $15 | $15 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| **(Dollars in billions)** | **Minimum <br>Capital <br>Requirement** | **Applicable <br>Buffer** | **Capital** <br>**Requirement** <br>**(Including Buffer**<sup>(1)</sup>**)** | **Available <br>Capital (Deficit)** | **Capital <br>Shortfall** |
| **Risk-based capital amounts:** | | | | | |
| &nbsp;&nbsp;&nbsp;Total capital | $101 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | $101 | $9 | ($92) |
| &nbsp;&nbsp;&nbsp;CET1 capital | 57 | $60 | 117 | (18) | (135) |
| &nbsp;&nbsp;&nbsp;Tier 1 capital | 76 | 60 | 136 | (4) | (140) |
| &nbsp;&nbsp;&nbsp;Adjusted total capital | 101 | 60 | 161 | (4) | (165) |
| **Risk-based capital ratios**<sup>(2)</sup>**:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total capital | 8.0% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | 8.0% | 0.7% | (7.3)% |
| &nbsp;&nbsp;&nbsp;CET1 capital | 4.5 | 4.8% | 9.3 | (1.4) | (10.7) |
| &nbsp;&nbsp;&nbsp;Tier 1 capital | 6.0 | 4.8 | 10.8 | (0.3) | (11.1) |
| &nbsp;&nbsp;&nbsp;Adjusted total capital | 8.0 | 4.8 | 12.8 | (0.3) | (13.1) |
| **Leverage capital amounts:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Core capital | $98 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | $98 | $1 | ($97) |
| &nbsp;&nbsp;&nbsp;Tier 1 capital | 98 | $15 | 113 | (4) | (117) |
| **Leverage capital ratios**<sup>(3)</sup>**:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Core capital | 2.5% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | 2.5% | —% | (2.5)% |
| &nbsp;&nbsp;&nbsp;Tier 1 capital | 2.5 | 0.4% | 2.9 | (0.1) | (3.0) |

---

Freddie Mac 1Q 2026 Form 10-Q 29

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<u>Management's Discussion and Analysis</u>  <u>Liquidity and Capital Resources</u>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **(Dollars in billions)** | **Minimum <br>Capital <br>Requirement** | **Applicable <br>Buffer** | **Capital** <br>**Requirement** <br>**(Including Buffer**<sup>(1)</sup>**)** | **Available <br>Capital (Deficit)** | **Capital <br>Shortfall** |
| **Risk-based capital amounts:** | | | | | |
| &nbsp;&nbsp;&nbsp;Total capital | $99 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | $99 | $6 | ($93) |
| &nbsp;&nbsp;&nbsp;CET1 capital | 55 | $59 | 114 | (22) | (136) |
| &nbsp;&nbsp;&nbsp;Tier 1 capital | 74 | 59 | 133 | (7) | (140) |
| &nbsp;&nbsp;&nbsp;Adjusted total capital | 99 | 59 | 158 | (7) | (165) |
| **Risk-based capital ratios**<sup>(2)</sup>**:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total capital | 8.0% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | 8.0% | 0.5% | (7.5)% |
| &nbsp;&nbsp;&nbsp;CET1 capital | 4.5 | 4.8% | 9.3 | (1.8) | (11.1) |
| &nbsp;&nbsp;&nbsp;Tier 1 capital | 6.0 | 4.8 | 10.8 | (0.6) | (11.4) |
| &nbsp;&nbsp;&nbsp;Adjusted total capital | 8.0 | 4.8 | 12.8 | (0.6) | (13.4) |
| **Leverage capital amounts:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Core capital | $98 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | $98 | ($2) | ($100) |
| &nbsp;&nbsp;&nbsp;Tier 1 capital | 98 | $15 | 113 | (7) | (120) |
| **Leverage capital ratios**<sup>(3)</sup>**:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Core capital | 2.5% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | 2.5% | (0.1)% | (2.6)% |
| &nbsp;&nbsp;&nbsp;Tier 1 capital | 2.5 | 0.4% | 2.9 | (0.2) | (3.1) |

---

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

&nbsp;&nbsp;&nbsp;&nbsp;(2)As a percentage of RWA.

&nbsp;&nbsp;&nbsp;&nbsp;(3)As a percentage of ATA.

At March 31, 2026, our maximum payout ratio under the ERCF was 0.0%.

See Note 15 for additional information on our capital amounts and ratios under the ERCF.

Freddie Mac 1Q 2026 Form 10-Q 30

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<u>Management's Discussion and Analysis</u>  <u>Critical Accounting Estimates</u>

**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 significant accounting policies, see Note 1 and MD&A - Critical Accounting Estimates in our 2025 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-for-investment 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.

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 38 - Forecasted House Price Growth Rates**

---

| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| 12-Month Forward | 2.3% | 0.5% |
| 13- to 24-Month Forward | 2.4 | 1.4 |

---

Freddie Mac 1Q 2026 Form 10-Q 31

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<u>Management's Discussion and Analysis</u> <u>Regulation and Supervision</u>

**REGULATION AND SUPERVISION**

In addition to FHFA's oversight as our Conservator, we are subject to regulation and supervision by FHFA under our Charter and the GSE Act, and regulation by certain other government agencies. FHFA has the authority to direct changes to our processes and require us to take or refrain from actions that may affect our business. Additionally, regulatory activities by other government agencies can indirectly impact us, even if we are not directly subject to their regulation or oversight. For example, changes in regulations affecting the purchase or servicing of mortgages can impact our operations.

The Administration has made comments regarding a number of potential transactions involving us and Fannie Mae, including a public offering of our equity securities while in conservatorship or outside of conservatorship, and the potential for our exit from conservatorship. We cannot predict whether or when any of these transactions could take place or on what terms. While we continue to monitor regulatory and policy developments, we cannot predict the accuracy, timing, or impact of such statements or any related policy actions.

Federal Housing Finance Agency

From time to time, FHFA in its power both as our Conservator and regulator has rescinded or modified certain guidance, directives, and other requirements affecting the Enterprises. FHFA may continue modifying, rescinding, or withdrawing, or changing its approach to implementation and enforcement of, guidance, directives, and other requirements relating to the Enterprises. The impact of these and any similar future actions taken by FHFA are uncertain at this time.

FICO Score 10T and VantageScore 4.0

On April 22, 2026, we announced a limited rollout to accept loans scored with VantageScore<sup>®</sup> 4.0 (VS4) from approved sellers. We also announced we expect similar implementation efforts for FICO<sup>®</sup> Score 10T at a later date.

Freddie Mac 1Q 2026 Form 10-Q 32

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<u>Management's Discussion and Analysis</u> <u>Forward-Looking Statements</u>

**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 our conservatorship, our current expectations and objectives for our Single-Family and Multifamily segments, our efforts to assist the housing market, liquidity and capital management, and the effects of economic and market conditions and trends including changes in house prices and house price forecasts, our market coverage, the effect of legislative, judicial, and regulatory developments and new accounting guidance, the credit quality of loans the company owns or guarantees, the costs and benefits of the company's CRT transactions, the impact of banking crises or failures, and the effects of wars, terrorist incidents, public policy and political developments, cybersecurity incidents, natural disasters or catastrophic events and actions taken in response thereto. Forward-looking statements involve known and unknown risks and uncertainties beyond our control. Forward-looking statements are often accompanied by, and identified with, terms such as "could," "may," "will," "believe," "expect," "anticipate," "forecast," "can," "risk," "would," "design," "option," "continue," 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 2025 Annual Report, and including, without limitation, the following:

■ The actions the federal government (including FHFA, Treasury, the executive branch, and Congress) and state governments may take, require us to take, or restrict us from taking, including actions regarding our operations, conservatorship, access to affordable and sustainable housing, such as programs to implement the expectations in FHFA's Conservatorship Scorecards, and other objectives for us;

■ The impacts of a transaction involving us and Fannie Mae, including a public offering of our equity securities while in conservatorship or outside of conservatorship, and the potential for our exit from conservatorship;

■ Changes in economic and market conditions, including trade laws or policies such as tariffs, geopolitical instability and conflicts (including in the Middle East), volatility in the financial services industry, changes in employment rates, immigration policy, inflation, interest rates, spreads, and house prices;

■ 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;

■ The effect of the restrictions on our business due to the conservatorship and the Purchase Agreement, including any amendments thereto;

■ The impact of any changes in our credit ratings or those of the U.S. government;

■&nbsp;&nbsp;&nbsp;&nbsp;Changes in our Charter, applicable legislative or regulatory requirements (including any legislative or executive action affecting the future status of our company), or the Purchase Agreement;

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

■ Changes in tax laws;

■ Changes in privacy and cybersecurity laws and regulations;

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

■ Changes in the U.S. mortgage market, including the supply of houses available for sale, the supply of multifamily rental housing, and changes in the supply and type of loan products;

■ The success of our efforts to mitigate our losses;

■ The success of our strategy to transfer mortgage credit risk;

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

■ Our ability to maintain the security and resiliency of our operational systems and infrastructure, including against cybersecurity incidents or other security incidents, whether due to insider error or malfeasance or system errors or vulnerabilities in our or our third parties' systems;

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

■ The adequacy of our risk management framework, including the adequacy of our regulatory capital framework prescribed by FHFA and internal models for measuring risk;

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

■ Changes in credit reporting at the credit reporting bureaus due to regulatory and legal developments, as well as lender practices;

■ 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 and spread risk management purposes and our ability to apply hedge accounting;

Freddie Mac 1Q 2026 Form 10-Q 33

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<u>Management's Discussion and Analysis</u> <u>Forward-Looking Statements</u>

■ Our operational ability to issue new securities, make timely and correct payments on securities, and provide initial and ongoing disclosures;

■ Our reliance on U.S. FinTech and the mortgage securitization platform for the operation of the majority of our Single-Family securitization activities, limits on our influence over U.S. FinTech Board decisions, and any additional changes FHFA may require in our relationship with, or support of, U.S. FinTech;

■&nbsp;&nbsp;&nbsp;&nbsp;Performance of and changes in the methodologies, models, assumptions, and estimates we use to prepare our financial statements, make business decisions, and manage risks;

■ Changes in investor demand for our debt or mortgage-related securities;

■ Our ability to maintain market acceptance of the UMBS, including our ability to maintain alignment of the prepayment speeds and pricing performance of our and Fannie Mae's respective UMBS;

■ Changes in the practices or performance of loan originators, servicers, property managers, investors, insurers, and other participants in the secondary mortgage market including changes as a result of the use and/or regulation of AI technologies or other emerging technologies;

■&nbsp;&nbsp;&nbsp;&nbsp;Opportunities and risks presented by our use of AI and other emerging technologies;

■ Competition from other market participants, which could affect the pricing we offer for and the performance of our mortgage-related products, the credit characteristics of the loans we purchase, and our ability to meet our affordable housing goals and other mandated activities;

■ 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;

■ The occurrence of a catastrophic event or natural disaster 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

■&nbsp;&nbsp;&nbsp;&nbsp;Other factors and assumptions described in this Form 10-Q and our 2025 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.

Freddie Mac 1Q 2026 Form 10-Q 34

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<u>Financial Statements</u> 

**Financial Statements**<br>

Freddie Mac 1Q 2026 Form 10-Q 35

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<u>Financial Statements</u> <u>Condensed Consolidated Statements of Income and Comprehensive Income</u>

**FREDDIE MAC** 

Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited)

---

| | | |
|:---|:---|:---|
| (**In millions**, except share-related amounts) | **1Q 2026** | **1Q 2025** |
| **Net interest income** | | |
| Interest income | $33650 | $31365 |
| Interest expense | (28031) | (26263) |
| **Net interest income** | **5619** | **5102** |
| **Non-interest income** |  |  |
| Guarantee income | 320 | 440 |
| Investment gains (losses), net | 42 | 192 |
| Other income | 152 | 118 |
| **Non-interest income** | **514** | **750** |
| **Net revenues** | **6133** | **5852** |
| (Provision) benefit for credit losses | 320 | (280) |
| **Non-interest expense** |  |  |
| Salaries and employee benefits | (376) | (423) |
| Professional services, technology, and occupancy | (250) | (253) |
| Credit enhancement expense | (441) | (540) |
| Legislative and regulatory assessments | (832) | (817) |
| Other expense | (123) | (55) |
| **Non-interest expense** | **(2022)** | **(2088)** |
| **Income before income tax expense** | **4431** | **3484** |
| Income tax expense | (873) | (690) |
| **Net income** | **3558** | **2794** |
| Other comprehensive income (loss), net of taxes and reclassification adjustments | (20) | 34 |
| **Comprehensive income** | **$3538** | **$2828** |
| Net income | $3558 | $2794 |
| Amounts attributable to senior preferred stock | (3538) | (2828) |
| **Net income (loss) attributable to common stockholders** | **$20** | **($34)** |
| **Net income (loss) per common share** | **$0.01** | **($0.01)** |
| Weighted average common shares (in millions) | 3234 | 3234 |

---

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

Freddie Mac 1Q 2026 Form 10-Q 36

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<u>Financial Statements</u> <u>Condensed Consolidated Balance Sheets</u>

**FREDDIE MAC**

Condensed Consolidated Balance Sheets (Unaudited)

---

| | | |
|:---|:---|:---|
| | **March 31,** | **December 31,** |
| (**In millions**, except share-related amounts) | **2026** | **2025** |
| **Assets** |  |  |
| Cash and cash equivalents (includes $1,299 and $1,234 of restricted cash and cash equivalents) | $4469 | $5327 |
| Securities purchased under agreements to resell | 74804 | 71919 |
| Investment securities, at fair value | 75939 | 85412 |
| Mortgage loans held-for-sale | 1225 | 1014 |
| Mortgage loans held-for-investment (net of allowance for credit losses of $7,643 and $7,968 and includes $6,906 and $7,005 at fair value)  | 3302306 | 3290066 |
| Accrued interest receivable | 12207 | 12254 |
| Deferred tax assets, net | 4740 | 5040 |
| Other assets (includes $6,294 and $6,421 at fair value) | 29628 | 26566 |
| **Total assets** | **$3505318** | **$3497598** |
| **Liabilities and equity** |  |  |
| *Liabilities* |  |  |
| Accrued interest payable | $10556 | $10597 |
| Debt issued by consolidated trusts (includes $5,971 and $5,841 at fair value) | 3214995 | 3198008 |
| Short-term debt | 24408 | 37718 |
| Long-term debt (includes $189 and $195 at fair value) | 169850 | 169296 |
| Other liabilities (includes $983 and $781 at fair value) | 11587 | 11595 |
| **Total liabilities** | **3431396** | **3427214** |
| Commitments and contingencies |  |  |
| *Equity* |  |  |
| Senior preferred stock (liquidation preference of $143,032 and $140,248) | 72648 | 72648 |
| Preferred stock, at redemption value | 14109 | 14109 |
| 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 | (8981) | (12539) |
| AOCI, net of taxes | 31 | 51 |
| Treasury stock, at cost, 75,804,333 shares | (3885) | (3885) |
| **Total equity**  | **73922** | **70384** |
| **Total liabilities and equity** | **$3505318** | **$3497598** |

---

The table below presents the carrying value and classification of the assets and liabilities related to consolidated VIEs on our condensed consolidated balance sheets.

---

| | | |
|:---|:---|:---|
| | **March 31,** | **December 31,** |
| **(In millions)** | **2026** | **2025** |
| **Assets** |  |  |
| Cash and cash equivalents (includes $1,202 and $1,136 of restricted cash and cash equivalents) | $1202 | $1136 |
| Securities purchased under agreements to resell | 22262 | 19107 |
| Investment securities, at fair value | 446 | 34 |
| Mortgage loans held-for-investment | 3222541 | 3198847 |
| Accrued interest receivable | 10970 | 10825 |
| Other assets | 10879 | 8573 |
| **Total assets of consolidated VIEs** | **$3268300** | **$3238522** |
| **Liabilities** |  |  |
| Accrued interest payable | $9441 | $9312 |
| Debt issued by consolidated trusts | 3214995 | 3198008 |
| **Total liabilities of consolidated VIEs** | **$3224436** | **$3207320** |

---

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

Freddie Mac 1Q 2026 Form 10-Q 37

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<u>Financial Statements</u> <u>Condensed Consolidated Statements of Equity</u>

**FREDDIE MAC** 

Condensed Consolidated Statements of Equity (Unaudited)

---

| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| (**In millions**) | **2026** | **2025** |
| **Senior preferred stock** |  |  |
| Balance at beginning of period and March 31 | $72648 | $72648 |
| **Preferred stock, at redemption value** |  |  |
| Balance at beginning of period and March 31 | 14109 | 14109 |
| **Common stock, at par value** |  |  |
| Balance at beginning of period and March 31 |  |  |
| **Retained earnings** |  |  |
| Balance at beginning of period | (12539) | (23270) |
| Net income | 3558 | 2794 |
| **Balance at March 31** | **(8981)** | **(20476)** |
| **AOCI, net of tax** |  |  |
| Balance at beginning of period | 51 | (27) |
| Other comprehensive income (loss), net of taxes of $5 million and, $9 million, respectively | (20) | 34 |
| **Balance at March 31** | **31** | **7** |
| **Treasury stock, at cost** |  |  |
| Balance at beginning of period and March 31 | (3885) | (3885) |
| **Total equity** | **$73922** | **$62403** |

---

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

Freddie Mac 1Q 2026 Form 10-Q 38

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<u>Financial Statements</u> <u>Condensed Consolidated Statements of Cash Flows</u>

**FREDDIE MAC**

Condensed Consolidated Statements of Cash Flows (Unaudited)

---

| | | |
|:---|:---|:---|
| **(In millions)**<br>**Net cash provided by (used in) operating activities** | **1Q 2026**<br>**$3868** | **1Q 2025**<br>**$3572** |
| **Cash flows from investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;Investment securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases | (18278) | (14755) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sales | 22518 | 9652 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from maturities and repayments | 4603 | 1230 |
| &nbsp;&nbsp;&nbsp;Mortgage loans acquired held-for-investment: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases | (47973) | (25925) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sales | 443 | 946 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from repayments | 98902 | 65573 |
| &nbsp;&nbsp;Advances under secured lending arrangements | (38303) | (27899) |
| &nbsp;&nbsp;&nbsp;Net (increase) decrease in securities purchased under agreements to resell | (750) | (968) |
| &nbsp;&nbsp;&nbsp;Cash flows related to derivatives | 387 | (1182) |
| &nbsp;&nbsp;&nbsp;Other, net | (108) | (183) |
| &nbsp;&nbsp;&nbsp;**Net cash provided by (used in) investing activities** | **21441** | **6489** |
| **Cash flows from financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;Debt issued by consolidated trusts: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance | 100854 | 65596 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayments and redemptions | (112410) | (69476) |
| &nbsp;&nbsp;&nbsp;Borrowings with original maturity of more than three months: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance | 48476 | 24257 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayments | (48693) | (34845) |
| &nbsp;&nbsp;&nbsp;Net increase (decrease) in: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowings with original maturity of three months or less  | (12258) | 7648 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities sold under agreements to repurchase | (2135) | (3984) |
| &nbsp;&nbsp;&nbsp;Other, net | (1) | (1) |
| &nbsp;&nbsp;&nbsp;**Net cash provided by (used in) financing activities** | **(26167)** | **(10805)** |
| Net increase (decrease) in cash and cash equivalents (includes restricted cash and cash equivalents) | (858) | (744) |
| Cash and cash equivalents (includes restricted cash and cash equivalents) at the beginning of year | 5327 | 5534 |
| **Cash and cash equivalents (includes restricted cash and cash equivalents) at end of period** | **$4469** | **$4790** |
| **Supplemental cash flow information** |  |  |
| Cash paid for: |  |  |
| &nbsp;&nbsp;&nbsp;Debt interest | $29832 | $27348 |
| &nbsp;&nbsp;&nbsp;Income taxes (net of refunds received) |  |  |
| Non-cash investing and financing activities (Note 3) |  |  |

---

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

Freddie Mac 1Q 2026 Form 10-Q 39

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<u>Financial Statements</u> <u>Notes to the Condensed Consolidated Financial Statements \| Note 1</u>

**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 2025 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 2025 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 2025 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 have reclassified certain amounts reported in our prior period condensed consolidated financial statements to conform to the current period presentation.

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.

Freddie Mac 1Q 2026 Form 10-Q 40

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<u>Financial Statements</u> <u>Notes to the Condensed Consolidated Financial Statements \| Note 1</u>

Recently Issued Accounting Guidance

---

| | | | |
|:---|:---|:---|:---|
| ***Recently Adopted Accounting Guidance*** | ***Recently Adopted Accounting Guidance*** | ***Recently Adopted Accounting Guidance*** | ***Recently Adopted Accounting Guidance*** |
| **Standard** | **Description** | **Date of <br> Adoption** | **Effect on Consolidated Financial Statements** |
| **ASU 2025-09**, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements | The amendments in this Update clarify certain aspects of the guidance on hedge accounting and address several incremental hedging issues arising from the global reference rate reform initiative. | January 1, 2026 | The adoption of these amendments did not have a material effect on our consolidated financial statements. |

---

---

| | | | |
|:---|:---|:---|:---|
| ***Recently Issued Accounting Guidance, Not Yet Adopted Within Our Consolidated Financial Statements*** | ***Recently Issued Accounting Guidance, Not Yet Adopted Within Our Consolidated Financial Statements*** | ***Recently Issued Accounting Guidance, Not Yet Adopted Within Our Consolidated Financial Statements*** | ***Recently Issued Accounting Guidance, Not Yet Adopted Within Our Consolidated Financial Statements*** |
| **Standard** | **Description** | **Date of <br> Adoption** | **Effect on Consolidated Financial Statements** |
| **ASU 2024-03**, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses | The amendments in this Update require disaggregated disclosures for certain expense categories. | December 31, 2027 | We do not expect the adoption of these amendments to have a material effect on our consolidated financial statements. |
| **ASU 2025-08**, Financial Instruments - Credit Losses (Topic 326): Purchased Loans | The amendments in this Update expand the population of acquired financial assets subject to the gross-up approach in Topic 326. | January 1, 2027 | We do not expect the adoption of these amendments to have a material effect on our consolidated financial statements. |

---

Freddie Mac 1Q 2026 Form 10-Q 41

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<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 2</u>

**NOTE 2**

Securitization and Consolidation

Nonconsolidated VIEs

The table below 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, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| | **Carrying Amounts of the Assets and Liabilities on the Condensed Consolidated Balance Sheets** | **Carrying Amounts of the Assets and Liabilities on the Condensed Consolidated Balance Sheets** | **Carrying Amounts of the Assets and Liabilities on the Condensed Consolidated Balance Sheets** | **Total Assets** | **Maximum Exposure to Loss** |
| **(In millions)** | **Investment Securities** | **Accrued Interest Receivable and Other Assets**<sup>(1)</sup> | **Liabilities**<sup>(1)</sup> | **Total Assets** | **Maximum Exposure to Loss** |
| Single-Family: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Securitization products | $1416 | $157 | $491 | $29528 | $24180 |
| &nbsp;&nbsp;Resecuritization products<sup>(2)</sup> | 5139 | 81 | 710 | 97155 | 97525 |
| &nbsp;&nbsp;CRT products<sup>(3)</sup> |  | 100 | 108 | 24614 | 5 |
| **Total Single-Family** | **6555** | **338** | **1309** | **151297** | **121710** |
| Multifamily: |  |  |  |  |  |
| &nbsp;&nbsp;Securitization products<sup>(4)</sup> | 4255 | 4656 | 3661 | 324122 | 292245 |
| &nbsp;&nbsp;CRT products<sup>(3)</sup> |  | 34 | 20 | 2759 | 16 |
| **Total Multifamily** | **4255** | **4690** | **3681** | **326881** | **292261** |
| **Other** | **—** | **6** | **—** | **61** | **14** |
| **Total** | **$10810** | **$5034** | **$4990** | **$478239** | **$413985** |

---

Freddie Mac 1Q 2026 Form 10-Q 42

------

<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 2</u>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Carrying Amounts of the Assets and Liabilities on the Condensed Consolidated Balance Sheets** | **Carrying Amounts of the Assets and Liabilities on the Condensed Consolidated Balance Sheets** | **Carrying Amounts of the Assets and Liabilities on the Condensed Consolidated Balance Sheets** | **Total Assets** | **Maximum Exposure to Loss** |
| **(In millions)** | **Investment Securities** | **Accrued Interest Receivable and Other Assets**<sup>(1)</sup> | **Liabilities**<sup>(1)</sup> | **Total Assets** | **Maximum Exposure to Loss** |
| Single-Family: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Securitization products | $1451 | $162 | $498 | $30025 | $24604 |
| &nbsp;&nbsp;Resecuritization products<sup>(2)</sup> | 5503 | 74 | 675 | 98370 | 98754 |
| &nbsp;&nbsp;CRT products<sup>(3)</sup> |  | 97 | 134 | 24437 | 6 |
| **Total Single-Family** | **6954** | **333** | **1307** | **152832** | **123364** |
| Multifamily: |  |  |  |  |  |
| &nbsp;&nbsp;Securitization products<sup>(4)</sup> | 5052 | 4886 | 3792 | 332572 | 299507 |
| &nbsp;&nbsp;CRT products<sup>(3)</sup> |  | 31 | 21 | 2446 | 16 |
| **Total Multifamily** | **5052** | **4917** | **3813** | **335018** | **299523** |
| **Other** | **—** | **7** | **—** | **64** | **15** |
| **Total** | **$12006** | **$5257** | **$5120** | **$487914** | **$422902** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;Other assets primarily include our guarantee assets. Liabilities primarily include our guarantee obligations.

&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;Total assets and maximum exposure to loss are primarily 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.

&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;Maximum exposure to loss is based on our expected recovery receivables and excludes 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.

&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;Maximum exposure to loss excludes the exposure related to advances made by us as guarantor or master servicer. The outstanding balance of guarantor advances were $0.3 billion and $0.4 billion as of March 31, 2026 and December 31, 2025, respectively. The outstanding balance of master servicer advances were not material for the periods presented.

Investments in Low Income Housing Tax Credits

We invest in LIHTC partnerships to support and preserve the supply of affordable housing. These investments do not provide us with a controlling financial interest in the underlying partnerships and we therefore do not consolidate these entities. We have elected to account for these investments using the proportional amortization method when applicable. The carrying amount of our investments in LIHTC partnerships is presented in other assets on our condensed consolidated balance sheets and totaled $5.3 billion as of March 31, 2026 and $5.2 billion as of December 31, 2025.

Freddie Mac 1Q 2026 Form 10-Q 43

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<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 3</u>

**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, 2026** | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **(In millions)** | **Single-Family** | **Multifamily** | **Total** | **Single-Family** | **Multifamily** | **Total** |
| Held-for-sale UPB | $1449 | $2 | $1451 | $1108 | $136 | $1244 |
| Cost basis and fair value adjustments, net | (225) | (1) | (226) | (216) | (14) | (230) |
| &nbsp;&nbsp;&nbsp;**Total held-for-sale loans, net** | **1224** | **1** | **1225** | **892** | **122** | **1014** |
| Held-for-investment UPB | 3119960 | 164268 | 3284228 | 3117945 | 153124 | 3271069 |
| Cost basis and fair value adjustments, net<sup>(1)</sup> | 26291 | (570) | 25721 | 27491 | (526) | 26965 |
| Allowance for credit losses | (6977) | (666) | (7643) | (7297) | (671) | (7968) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total held-for-investment loans, net**<sup>(2)</sup> | **3139274** | **163032** | **3302306** | **3138139** | **151927** | **3290066** |
| **Total mortgage loans, net** | **$3140498** | **$163033** | **$3303531** | **$3139031** | **$152049** | **$3291080** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Includes ($0.4) billion and ($0.3) billion of basis adjustments maintained on a closed portfolio basis related to existing portfolio layer method fair value hedge relationships as of March 31, 2026 and December 31, 2025, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;(2)Includes $6.9 billion and $7.0 billion of multifamily held-for-investment loans for which we have elected the fair value option as of March 31, 2026 and December 31, 2025, respectively.

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 2026** | **1Q 2025** |
| **Single-Family:** | | |
| Purchases: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Held-for-investment loans | $102513 | $77646 |
| Sales of held-for-sale loans<sup>(1)</sup> |  | 759 |
| **Multifamily:** |  |  |
| Purchases: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Held-for-investment loans | 12700 | 3914 |
| &nbsp;&nbsp;&nbsp;&nbsp;Held-for-sale loans | 96 | 5431 |
| Sales of held-for-sale loans<sup>(2)</sup> | 671 | 6604 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Our sales of single-family loans reflect the sale of single-family seasoned loans.

&nbsp;&nbsp;&nbsp;&nbsp;(2)Our sales of multifamily loans occur primarily through the issuance of Multifamily K Certificates.

Freddie Mac 1Q 2026 Form 10-Q 44

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<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 3</u>

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**<sup>(1)</sup>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **1Q 2026** | **1Q 2026** | **1Q 2026** | **1Q 2025** | **1Q 2025** | **1Q 2025** |
| **(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: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Held-for-investment to held-for-sale | $542 | $22 | $— | $689 | $7 | $— |
| &nbsp;&nbsp;Held-for-sale to held-for-investment<sup>(2)</sup> | 146 | 9 | 12 | 258 | 21 | 13 |
| Multifamily reclassifications from: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Held-for-investment to held-for-sale | 442 | 1 | (20) | 527 | 1 | (27) |
| &nbsp;&nbsp;&nbsp;&nbsp;Held-for-sale to held-for-investment<sup>(2)</sup> |  |  |  | 190 | (1) | 5 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Amounts exclude reclassifications related to loans for which we have elected the fair value option.

&nbsp;&nbsp;&nbsp;&nbsp;(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**<sup>(1)</sup>

---

| | | | |
|:---|:---|:---|:---|
| | **Non-Accrual Amortized Cost Basis** | **Non-Accrual Amortized Cost Basis** | **Interest Income Recognized**<sup>(2)</sup> |
| **(In millions)** | **March 31, 2026** | **December 31, 2025** | **1Q 2026** |
| Single-Family: |  |  |  |
| &nbsp;&nbsp;&nbsp;20- and 30-year or more, amortizing fixed-rate | $17002 | $16739 | $48 |
| &nbsp;&nbsp;&nbsp;15-year or less, amortizing fixed-rate | 462 | 482 | 1 |
| &nbsp;&nbsp;&nbsp;Adjustable-rate and other | 217 | 221 |  |
| &nbsp;&nbsp;**Total Single-Family** | **17681** | **17442** | **49** |
| &nbsp;&nbsp;**Total Multifamily** | **50** | **227** | **—** |
| **Total Single-Family and Multifamily** | **$17731** | **$17669** | **$49** |

---

---

| | | | |
|:---|:---|:---|:---|
| | **Non-Accrual Amortized Cost Basis** | **Non-Accrual Amortized Cost Basis** | **Interest Income Recognized**<sup>(2)</sup> |
| **(In millions)** | **March 31, 2025** | **December 31, 2024** | **1Q 2025** |
| Single-Family: |  |  |  |
| &nbsp;&nbsp;&nbsp;20- and 30-year or more, amortizing fixed-rate | $15724 | $15157 | $43 |
| &nbsp;&nbsp;&nbsp;15-year or less, amortizing fixed-rate | 487 | 511 | 1 |
| &nbsp;&nbsp;&nbsp;Adjustable-rate and other | 256 | 240 | 1 |
| &nbsp;&nbsp;**Total Single-Family** | **16467** | **15908** | **45** |
| &nbsp;&nbsp;**Total Multifamily** | **207** | **125** | **1** |
| **Total Single-Family and Multifamily** | **$16674** | **$16033** | **$46** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Excludes amounts related to loans for which we have elected the fair value option.

&nbsp;&nbsp;&nbsp;&nbsp;(2)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.

Freddie Mac 1Q 2026 Form 10-Q 45

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<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 3</u>

The table below provides the amount of accrued interest receivable 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 and Related Charge-Offs** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Accrued Interest Receivable** | **Accrued Interest Receivable** | **Accrued Interest Receivable Related Charge-Offs** | **Accrued Interest Receivable Related Charge-Offs** |
| **(In millions)** | **March 31, 2026** | **December 31, 2025** | **1Q 2026** | **1Q 2025** |
| Single-Family loans | $10598 | $10547 | ($73) | ($64) |
| Multifamily loans | 708 | 663 |  | (3) |

---

Credit Quality

***Single-Family***

The current LTV ratio is a 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 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 and charge-offs related to these loans. Our current LTV ratios are estimates based on available data through the end of each period presented.

Freddie Mac 1Q 2026 Form 10-Q 46

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<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 3</u>

**Table 3.6 - Amortized Cost Basis of Single-Family Held-for-Investment Loans by Current LTV Ratio and Vintage**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Total** |
| **(In millions)** | **2026** | **2025** | **2024** | **2023** | **2022** | **Prior** | **Total** |
| Current LTV ratio: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;20- and 30-year or more, amortizing fixed-rate |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;≤ 60 | $8698 | $50304 | $44393 | $37527 | $114041 | $1473337 | $1728300 |
| &nbsp;&nbsp;&nbsp;> 60 to 80 | 24341 | 121494 | 103454 | 89654 | 157726 | 208915 | 705584 |
| &nbsp;&nbsp;> 80 to 90 | 11704 | 66473 | 62480 | 46818 | 41470 | 9799 | 238744 |
| &nbsp;&nbsp;&nbsp;> 90 to 100 | 12397 | 82702 | 47792 | 14915 | 9725 | 1533 | 169064 |
| &nbsp;&nbsp;> 100 | 67 | 738 | 2323 | 1889 | 1830 | 244 | 7091 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total 20- and 30-year or more, amortizing fixed-rate** | **57207** | **321711** | **260442** | **190803** | **324792** | **1693828** | **2848783** |
| &nbsp;&nbsp; Current-year gross charge-offs |  | 2 | 17 | 28 | 36 | 41 | 124 |
| &nbsp;&nbsp;&nbsp;&nbsp;15-year or less, amortizing fixed-rate |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;≤ 60 | 1921 | 10706 | 5535 | 3824 | 19373 | 198169 | 239528 |
| &nbsp;&nbsp;&nbsp;> 60 to 80 | 2222 | 9611 | 3903 | 1636 | 1513 | 235 | 19120 |
| &nbsp;&nbsp;> 80 to 90 | 609 | 2013 | 545 | 83 | 44 | 1 | 3295 |
| &nbsp;&nbsp;&nbsp;> 90 to 100 | 262 | 955 | 68 | 10 | 7 |  | 1302 |
| &nbsp;&nbsp;> 100 | 3 | 8 | 1 |  |  |  | 12 |
| &nbsp;&nbsp; **Total 15-year or less, amortizing fixed-rate** | **5017** | **23293** | **10052** | **5553** | **20937** | **198405** | **263257** |
| &nbsp;&nbsp; Current-year gross charge-offs |  |  |  |  | 1 | 1 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustable-rate and other |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;≤ 60 | 367 | 1937 | 337 | 401 | 1723 | 13138 | 17903 |
| &nbsp;&nbsp;&nbsp;> 60 to 80 | 976 | 4578 | 886 | 1125 | 2055 | 603 | 10223 |
| &nbsp;&nbsp;> 80 to 90 | 386 | 2046 | 495 | 562 | 556 | 26 | 4071 |
| &nbsp;&nbsp;&nbsp;> 90 to 100 | 269 | 1577 | 209 | 145 | 128 | 5 | 2333 |
| &nbsp;&nbsp;> 100 |  | 4 | 3 | 16 | 23 | 1 | 47 |
| &nbsp;&nbsp; **Total adjustable-rate and other** | **1998** | **10142** | **1930** | **2249** | **4485** | **13773** | **34577** |
| &nbsp;&nbsp; Current-year gross charge-offs |  |  |  |  |  |  |  |
| Total for all loan product types by current LTV ratio: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;≤ 60 | 10986 | 62947 | 50265 | 41752 | 135137 | 1684644 | 1985731 |
| &nbsp;&nbsp;&nbsp;> 60 to 80 | 27539 | 135683 | 108243 | 92415 | 161294 | 209753 | 734927 |
| &nbsp;&nbsp;> 80 to 90 | 12699 | 70532 | 63520 | 47463 | 42070 | 9826 | 246110 |
| &nbsp;&nbsp;&nbsp;> 90 to 100 | 12928 | 85234 | 48069 | 15070 | 9860 | 1538 | 172699 |
| &nbsp;&nbsp;> 100 | 70 | 750 | 2327 | 1905 | 1853 | 245 | 7150 |
| **Total Single-Family loans** | **$64222** | **$355146** | **$272424** | **$198605** | **$350214** | **$1906006** | **$3146617** |
| **Total current-year gross charge-offs** | **$—** | **$2** | **$17** | **$28** | **$37** | **$42** | **$126** |

---

Freddie Mac 1Q 2026 Form 10-Q 47

------

<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 3</u>

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Total** |
| **(In millions)** | **2025** | **2024** | **2023** | **2022** | **2021** | **Prior** | **Total** |
| Current LTV ratio: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;20- and 30-year or more, amortizing fixed-rate |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;≤ 60 | $47112 | $47188 | $39388 | $114149 | $557834 | $936838 | $1742509 |
| &nbsp;&nbsp;&nbsp;> 60 to 80 | 118639 | 110794 | 95194 | 162477 | 179033 | 40311 | 706448 |
| &nbsp;&nbsp;&nbsp;> 80 to 90 | 60372 | 67451 | 50223 | 43480 | 9002 | 1135 | 231663 |
| &nbsp;&nbsp;> 90 to 100 | 77814 | 51196 | 16197 | 10399 | 1386 | 292 | 157284 |
| &nbsp;&nbsp;> 100 | 557 | 2426 | 1822 | 1663 | 156 | 84 | 6708 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total 20- and 30-year or more, amortizing fixed-rate** | **304494** | **279055** | **202824** | **332168** | **747411** | **978660** | **2844612** |
| &nbsp;&nbsp; Full-year gross charge-offs | 1 | 22 | 44 | 73 | 54 | 172 | 366 |
| &nbsp;&nbsp;&nbsp;&nbsp;15-year or less, amortizing fixed-rate |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;≤ 60 | 9953 | 5816 | 3987 | 19872 | 96005 | 111387 | 247020 |
| &nbsp;&nbsp;&nbsp;> 60 to 80 | 9450 | 4281 | 1879 | 1833 | 286 | 17 | 17746 |
| &nbsp;&nbsp;&nbsp;> 80 to 90 | 1967 | 639 | 105 | 57 | 3 |  | 2771 |
| &nbsp;&nbsp;> 90 to 100 | 1007 | 104 | 15 | 7 |  |  | 1133 |
| &nbsp;&nbsp;> 100 | 8 | 2 | 1 |  |  |  | 11 |
| &nbsp;&nbsp; **Total 15-year or less, amortizing fixed-rate** | **22385** | **10842** | **5987** | **21769** | **96294** | **111404** | **268681** |
| &nbsp;&nbsp; Full-year gross charge-offs |  |  |  | 1 | 1 | 1 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustable-rate and other |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;≤ 60 | 1797 | 358 | 412 | 1753 | 3121 | 10469 | 17910 |
| &nbsp;&nbsp;&nbsp;> 60 to 80 | 4321 | 923 | 1184 | 2138 | 489 | 155 | 9210 |
| &nbsp;&nbsp;&nbsp;> 80 to 90 | 1783 | 522 | 581 | 574 | 19 | 9 | 3488 |
| &nbsp;&nbsp;> 90 to 100 | 1312 | 226 | 153 | 132 | 3 | 2 | 1828 |
| &nbsp;&nbsp;> 100 | 2 | 2 | 12 | 19 |  | 2 | 37 |
| &nbsp;&nbsp; **Total adjustable-rate and other** | **9215** | **2031** | **2342** | **4616** | **3632** | **10637** | **32473** |
| &nbsp;&nbsp; Full-year gross charge-offs |  |  |  | 1 |  | 1 | 2 |
| Total for all loan product types by current LTV ratio: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;≤ 60 | 58862 | 53362 | 43787 | 135774 | 656960 | 1058694 | 2007439 |
| &nbsp;&nbsp;&nbsp;> 60 to 80 | 132410 | 115998 | 98257 | 166448 | 179808 | 40483 | 733404 |
| &nbsp;&nbsp;&nbsp;> 80 to 90 | 64122 | 68612 | 50909 | 44111 | 9024 | 1144 | 237922 |
| &nbsp;&nbsp;> 90 to 100 | 80133 | 51526 | 16365 | 10538 | 1389 | 294 | 160245 |
| &nbsp;&nbsp;> 100 | 567 | 2430 | 1835 | 1682 | 156 | 86 | 6756 |
| **Total Single-Family loans** | **$336094** | **$291928** | **$211153** | **$358553** | **$847337** | **$1100701** | **$3145766** |
| **Total full-year gross charge-offs** | **$1** | **$22** | **$44** | **$75** | **$55** | **$174** | **$371** |

---

***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, and charge-offs related to these loans. These indicators are based on available data through the end of each period presented, involve significant management judgment, and are defined as follows:

■&nbsp;&nbsp;&nbsp;&nbsp;"Pass" is current and adequately protected by the borrower's current financial strength and debt service capacity;

■&nbsp;&nbsp;&nbsp;&nbsp;"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;

■&nbsp;&nbsp;&nbsp;&nbsp;"Substandard" has a weakness that jeopardizes the timely full repayment; and

■&nbsp;&nbsp;&nbsp;&nbsp;"Doubtful" has a weakness that makes collection or liquidation in full highly questionable and improbable based on existing conditions.

Freddie Mac 1Q 2026 Form 10-Q 48

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<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 3</u>

**Table 3.7 - Amortized Cost Basis of Multifamily Held-for-Investment Loans by Credit Quality Indicator and Vintage**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Total** |
| **(In millions)** | **2026** | **2025** | **2024** | **2023** | **2022** | **Prior** | **Revolving Loans** | **Total** |
| Category: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Pass | $8783 | $66396 | $28076 | $12949 | $15233 | $20258 | $1626 | $153321 |
| &nbsp;&nbsp;Special mention |  | 236 | 313 | 139 | 274 | 739 |  | 1701 |
| &nbsp;&nbsp;Substandard |  |  | 254 | 419 | 662 | 435 |  | 1770 |
| &nbsp;&nbsp;Doubtful |  |  |  |  |  |  |  |  |
| **Total** | **$8783** | **$66632** | **$28643** | **$13507** | **$16169** | **$21432** | **$1626** | **$156792** |
| **Current-year gross charge-offs** | **$—** | **$—** | **$—** | **$—** | **$—** | **$50** | **$—** | **$50** |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Year of Origination** | **Total** |
| **(In millions)** | **2025** | **2024** | **2023** | **2022** | **2021** | **Prior** | **Revolving Loans** | **Total** |
| Category: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Pass | $63205 | $28613 | $13374 | $15732 | $7238 | $12947 | $1851 | $142960 |
| &nbsp;&nbsp;Special mention |  | 49 | 173 | 177 | 96 | 670 |  | 1165 |
| &nbsp;&nbsp;Substandard |  | 163 | 266 | 581 | 233 | 225 |  | 1468 |
| &nbsp;&nbsp;Doubtful |  |  |  |  |  |  |  |  |
| **Total** | **$63205** | **$28825** | **$13813** | **$16490** | **$7567** | **$13842** | **$1851** | **$145593** |
| **Full-year gross charge-offs** | **$—** | **$—** | **$—** | **$11** | **$—** | **$115** | **$—** | **$126** |

---

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**<sup>(1)</sup> 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| **(In millions)** | **Current** | **One**<br>**Month**<br>**Past Due** | **Two**<br>**Months**<br>**Past Due** | **Three Months or**<br>**More Past Due,**<br>**or in Foreclosure**<sup>(2)</sup> | **Total** | **Non-Accrual With No Allowance**<sup>(3)</sup> |
| Single-Family: |  |  |  |  |  |  |
| &nbsp;&nbsp;20- and 30-year or more, amortizing fixed-rate | $2800859 | $24719 | $6726 | $16479 | $2848783 | $755 |
| &nbsp;&nbsp;15-year or less, amortizing fixed-rate | 261508 | 1079 | 220 | 450 | 263257 | 7 |
| &nbsp;&nbsp;Adjustable-rate and other | 34024 | 270 | 72 | 211 | 34577 | 33 |
| &nbsp;&nbsp;**Total Single-Family** | **3096391** | **26068** | **7018** | **17140** | **3146617** | **795** |
| &nbsp;&nbsp;**Total Multifamily** | **156629** | **28** | **38** | **97** | **156792** | **40** |
| **Total Single-Family and Multifamily** | **$3253020** | **$26096** | **$7056** | **$17237** | **$3303409** | **$835** |

---

Freddie Mac 1Q 2026 Form 10-Q 49

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<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 3</u>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **(In millions)** | **Current** | **One<br>Month<br>Past Due** | **Two<br>Months<br>Past Due** | **Three Months or<br>More Past Due,<br>or in Foreclosure**<sup>(2)</sup> | **Total** | **Non-Accrual with No Allowance**<sup>(3)</sup> |
| Single-Family: |  |  |  |  |  |  |
| &nbsp;&nbsp;20- and 30-year or more, amortizing fixed-rate | $2793168 | $27286 | $7892 | $16266 | $2844612 | $662 |
| &nbsp;&nbsp;15-year or less, amortizing fixed-rate | 266741 | 1196 | 276 | 468 | 268681 | 7 |
| &nbsp;&nbsp;Adjustable-rate and other | 31880 | 291 | 87 | 215 | 32473 | 31 |
| &nbsp;&nbsp;**Total Single-Family** | **3091789** | **28773** | **8255** | **16949** | **3145766** | **700** |
| &nbsp;&nbsp;**Total Multifamily** | **145344** | **57** | **2** | **190** | **145593** | **132** |
| **Total Single-Family and Multifamily** | **$3237133** | **$28830** | **$8257** | **$17139** | **$3291359** | **$832** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)The amount of held-for-investment loans three months or more past due and accruing interest was not material as of March 31, 2026. There were no held-for-investment loans that were three months or more past due and accruing interest as of December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;(2)Includes $4.1 billion and $4.0 billion of single-family loans that were in the process of foreclosure as of March 31, 2026 and December 31, 2025, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;(3)Loans with no allowance for loan losses primarily represent loans that were previously charged off and for which the amount we expect to collect 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 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 period-end amortized cost basis of single-family held-for-investment loan restructurings involving borrowers experiencing financial difficulty that we entered into during the periods presented.

**Table 3.9 - Single-Family Loan Restructurings Involving Borrowers Experiencing Financial Difficulty**<sup>(1)</sup>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **1Q 2026** | **1Q 2026** | **1Q 2026** | **1Q 2026** | **1Q 2026** |
| **(Dollars in millions)** | **Payment Delay**<sup>(2)</sup> | **Payment Delay and Term Extension** | **Payment Delay, Term Extension, and Interest Rate Reduction** | **Total** | **Total as % of Class of Financing Receivable**<sup>(3)</sup> |
| Single-Family: |  |  |  |  |  |
| &nbsp;&nbsp;20- and 30-year or more, amortizing fixed-rate | $6079 | $1886 | $419 | $8384 | 0.3% |
| &nbsp;&nbsp;15-year or less, amortizing fixed-rate | 189 | 2 |  | 191 | 0.1 |
| &nbsp;&nbsp;Adjustable-rate and other | 54 | 2 |  | 56 | 0.2 |
| **Total Single-Family loan restructurings** | **$6322** | **$1890** | **$419** | **$8631** | **0.3** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **1Q 2025** | **1Q 2025** | **1Q 2025** | **1Q 2025** | **1Q 2025** |
| **(Dollars in millions)** | **Payment Delay**<sup>(2)</sup> | **Payment Delay and Term Extension** | **Payment Delay, Term Extension, and Interest Rate Reduction** | **Total** | **Total as % of Class of Financing Receivable**<sup>(3)</sup> |
| Single-Family: |  |  |  |  |  |
| &nbsp;&nbsp;20- and 30-year or more, amortizing fixed-rate | $7308 | $1675 | $121 | $9104 | 0.3% |
| &nbsp;&nbsp;15-year or less, amortizing fixed-rate | 255 |  |  | 255 | 0.1 |
| &nbsp;&nbsp;Adjustable-rate and other | 67 | 4 | 1 | 72 | 0.3 |
| **Total Single-Family loan restructurings** | **$7630** | **$1679** | **$122** | **$9431** | **0.3** |

---

Freddie Mac 1Q 2026 Form 10-Q 50

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<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 3</u>

&nbsp;&nbsp;&nbsp;&nbsp;(1) &nbsp;&nbsp;&nbsp;&nbsp;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. The amortized cost basis of loans in the trial period modification plans was $4.1 billion and $2.9 billion as of March 31, 2026 and March 31, 2025, respectively. Most of these loans are 20- and 30-year or more, amortizing fixed-rate loans.

&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;Includes $2.3 billion and $2.8 billion related to payment deferral plans for 1Q 2026 and 1Q 2025, respectively. Also includes forbearance plans, repayment plans, and loan modifications that only involve payment delays.

&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;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 single-family 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**<sup>(1)</sup>

---

| | | | |
|:---|:---|:---|:---|
| | **1Q 2026** | **1Q 2026** | **1Q 2026** |
| **(Dollars in thousands)** | **Weighted-Average Interest Rate Reduction** | **Weighted-Average Months of Term Extension** | **Weighted-Average Payment Deferral or Principal Forbearance**<sup>(2)</sup> |
| Single-Family: |  |  |  |
| &nbsp;&nbsp;20- and 30-year or more, amortizing fixed-rate | 0.7% | 144 | $26 |
| &nbsp;&nbsp;15-year or less, amortizing fixed-rate |  | 33 | 11 |
| &nbsp;&nbsp;Adjustable-rate and other | NM | 157 | 15 |

---

---

| | | | |
|:---|:---|:---|:---|
| | **1Q 2025** | **1Q 2025** | **1Q 2025** |
| **(Dollars in thousands)** | **Weighted-Average Interest Rate Reduction** | **Weighted-Average Months of Term Extension** | **Weighted-Average Payment Deferral or Principal Forbearance**<sup>(2)</sup> |
| Single-Family: |  |  |  |
| &nbsp;&nbsp;20- and 30-year or more, amortizing fixed-rate | 0.6% | 166 | $15 |
| &nbsp;&nbsp;15-year or less, amortizing fixed-rate |  | NM | 10 |
| &nbsp;&nbsp;Adjustable-rate and other | 0.6 | 224 | 11 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) &nbsp;&nbsp;&nbsp;&nbsp;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.

&nbsp;&nbsp;&nbsp;&nbsp;(2) &nbsp;&nbsp;&nbsp;&nbsp;Primarily related to payment deferral plans. Amounts are based on non-interest-bearing principal balances on the restructured loans.

The table below 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.

**Table 3.11 - Subsequent Defaults of Single-Family Restructured Loans Involving Borrowers Experiencing Financial Difficulty**<sup>(1)</sup>

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1Q 2026** | **1Q 2026** | **1Q 2026** | **1Q 2026** |
| **(In millions)** | **Payment Delay** | **Payment Delay and Term Extension** | **Payment Delay, Term Extension, and Interest Rate Reduction** | **Total** |
| Single-Family: |  |  |  |  |
| &nbsp;&nbsp;20- and 30-year or more, amortizing fixed-rate | $1056 | $982 | $136 | $2174 |
| &nbsp;&nbsp;15-year or less, amortizing fixed-rate | 24 |  |  | 24 |
| &nbsp;&nbsp;Adjustable-rate and other | 11 | 1 |  | 12 |
| **Total Single-Family** | **$1091** | **$983** | **$136** | **$2210** |

---

Freddie Mac 1Q 2026 Form 10-Q 51

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<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 3</u>

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1Q 2025** | **1Q 2025** | **1Q 2025** | **1Q 2025** |
| **(In millions)** | **Payment Delay** | **Payment Delay and Term Extension** | **Payment Delay, Term Extension, and Interest Rate Reduction** | **Total** |
| Single-Family: |  |  |  |  |
| &nbsp;&nbsp;20- and 30-year or more, amortizing fixed-rate | $975 | $606 | $9 | $1590 |
| &nbsp;&nbsp;15-year or less, amortizing fixed-rate | 35 |  |  | 35 |
| &nbsp;&nbsp;Adjustable-rate and other | 11 | 1 |  | 12 |
| **Total Single-Family** | **$1021** | **$607** | **$9** | **$1637** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;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 table below 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, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| **(In millions)** | **Current** | **One Month Past Due** | **Two Months Past Due** | **Three Months or More Past Due** | **Total** |
| Single-Family: |  |  |  |  |  |
| &nbsp;&nbsp;20- and 30-year or more, amortizing fixed-rate | $15192 | $3506 | $2029 | $7008 | $27735 |
| &nbsp;&nbsp;15-year or less, amortizing fixed-rate | 309 | 86 | 50 | 162 | 607 |
| &nbsp;&nbsp;Adjustable-rate and other | 91 | 25 | 13 | 61 | 190 |
| **Total Single-Family** | **$15592** | **$3617** | **$2092** | **$7231** | **$28532** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
| **(In millions)** | **Current** | **One Month Past Due** | **Two Months Past Due** | **Three Months or More Past Due** | **Total** |
| Single-Family: |  |  |  |  |  |
| &nbsp;&nbsp;20- and 30-year or more, amortizing fixed-rate | $12733 | $3159 | $2000 | $7249 | $25141 |
| &nbsp;&nbsp;15-year or less, amortizing fixed-rate | 347 | 97 | 66 | 208 | 718 |
| &nbsp;&nbsp;Adjustable-rate and other | 80 | 17 | 18 | 77 | 192 |
| **Total Single-Family** | **$13160** | **$3273** | **$2084** | **$7534** | **$26051** |

---

Non-Cash Investing and Financing Activities

During 1Q 2026 and 1Q 2025, we acquired $64.9 billion and $55.7 billion, respectively, of loans held-for-investment in exchange for the issuance of debt issued by consolidated trusts in guarantor swap transactions. We received approximately $37.6 billion and $27.6 billion of loans held-for-investment from sellers during 1Q 2026 and 1Q 2025, respectively, to satisfy advances to lenders that were recorded in other assets on our condensed consolidated balance sheets.

Freddie Mac 1Q 2026 Form 10-Q 52

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<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 4</u>

**NOTE 4**

Guarantees and Other Off-Balance Sheet Credit Exposures

Guarantee Activities

The table below presents 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, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| (**Dollars in millions**, terms in years) | **UPB** | **Maximum Exposure** | **Recognized Liability**<sup>(1)</sup> | **Maximum Remaining Term** |
| Single-Family mortgage-related guarantees: |  |  |  |  |
| Nonconsolidated securitization products<sup>(2)</sup> | $29528 | $24180 | $446 | 39 |
| Other mortgage-related guarantees | 7044 | 7044 | 89 | 26 |
| **Total Single-Family mortgage-related guarantees** | **36572** | **31224** | **535** |  |
| Multifamily mortgage-related guarantees: |  |  |  |  |
| Nonconsolidated securitization products<sup>(2)(3)</sup> | 324122 | 292245 | 3426 | 34 |
| Other mortgage-related guarantees | 9940 | 9929 | 319 | 33 |
| **Total Multifamily mortgage-related guarantees** | **334062** | **302174** | **3745** |  |
| Guarantees of Fannie Mae securities | 97155 | 97155 |  | 36 |
| Other | 61 | 384 |  | 29 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| (**Dollars in millions**, terms in years) | **UPB** | **Maximum Exposure** | **Recognized Liability**<sup>(1)</sup> | **Maximum Remaining Term** |
| Single-Family mortgage-related guarantees: |  |  |  |  |
| Nonconsolidated securitization products<sup>(2)</sup> | $30025 | $24604 | $453 | 40 |
| Other mortgage-related guarantees | 7212 | 7212 | 96 | 26 |
| **Total Single-Family mortgage-related guarantees** | **37237** | **31816** | **549** |  |
| Multifamily mortgage-related guarantees: |  |  |  |  |
| Nonconsolidated securitization products<sup>(2)(3)</sup> | 332572 | 299507 | 3629 | 34 |
| Other mortgage-related guarantees | 10003 | 9992 | 332 | 33 |
| **Total Multifamily mortgage-related guarantees** | **342575** | **309499** | **3961** |  |
| Guarantees of Fannie Mae securities | 98370 | 98370 |  | 36 |
| Other | 64 | 399 |  | 30 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;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.

&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;Maximum exposure is based on remaining UPB of the guaranteed securities issued by the VIE.

&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;Maximum exposure to loss excludes the exposure related to advances made by us as guarantor. The outstanding balance of guarantor advances were $0.3 billion and $0.4 billion as of March 31, 2026 and December 31, 2025, respectively.

Freddie Mac 1Q 2026 Form 10-Q 53

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<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 4</u>

The table below presents 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, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| **(In millions)** | **Current** | **One**<br>**Month**<br>**Past Due** | **Two**<br>**Months**<br>**Past Due** | **Three Months or**<br>**More Past Due,**<br>**or in Foreclosure** | **Total** |
| Single-Family | $32234 | $2082 | $831 | $1425 | $36572 |
| Multifamily | 331758 | 380 | 191 | 1733 | 334062 |
| **Total** | **$363992** | **$2462** | **$1022** | **$3158** | **$370634** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **(In millions)** | **Current** | **One**<br>**Month**<br>**Past Due** | **Two**<br>**Months**<br>**Past Due** | **Three Months or**<br>**More Past Due,**<br>**or in Foreclosure** | **Total** |
| Single-Family | $32713 | $2234 | $860 | $1430 | $37237 |
| Multifamily | 340501 | 141 | 218 | 1715 | 342575 |
| **Total** | **$373214** | **$2375** | **$1078** | **$3145** | **$379812** |

---

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 off-balance sheet credit exposures.

The table below presents our other off-balance sheet credit exposures.

**Table 4.3 – Other Off-Balance Sheet Credit Exposures**

---

| | | |
|:---|:---|:---|
| **(In millions)** | **March 31, 2026** | **December 31, 2025** |
| Mortgage loan purchase commitments<sup>(1)</sup> | $18776 | $14010 |
| Unsettled securities purchased under agreements to resell, net<sup>(2)</sup> | 32284 | 27811 |
| Other commitments<sup>(3)</sup> | 3772 | 3788 |
| **Total** | **$54832** | **$45609** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Excludes mortgage loan purchase commitments accounted for as derivative instruments. See **Note 8** for additional information on commitments accounted for as derivative instruments.

&nbsp;&nbsp;&nbsp;&nbsp;(2)Net of $0.7 billion and $1.9 billion of unsettled securities sold under agreements to repurchase as of March 31, 2026 and December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;(3)Consists of unfunded portion of revolving lines of credit, liquidity guarantees, and other commitments.

Freddie Mac 1Q 2026 Form 10-Q 54

------

<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 5</u>

**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 2026** | **1Q 2026** | **1Q 2026** | **1Q 2025** | **1Q 2025** | **1Q 2025** |
| **(In millions)** | **Single-Family** | **Multifamily** | **Total** | **Single-Family** | **Multifamily** | **Total** |
| Beginning balance | $7549 | $956 | $8505 | $6691 | $548 | $7239 |
| Provision (benefit) for credit losses | (311) | (9) | (320) | 228 | 52 | 280 |
| Charge-offs | (178) | (64) | (242) | (191) | (1) | (192) |
| Recoveries collected | 60 | 1 | 61 | 27 | 1 | 28 |
| Other<sup>(1)</sup> | 108 | 1 | 109 | 96 |  | 96 |
| **Ending balance** | **$7228** | **$885** | **$8113** | **$6851** | **$600** | **$7451** |
| **Components of the ending balance of the allowance for credit losses:** | **Components of the ending balance of the allowance for credit losses:** | **Components of the ending balance of the allowance for credit losses:** | **Components of the ending balance of the allowance for credit losses:** | **Components of the ending balance of the allowance for credit losses:** | **Components of the ending balance of the allowance for credit losses:** | **Components of the ending balance of the allowance for credit losses:** |
| Mortgage loans held-for-investment | $6977 | $666 | $7643 | $6543 | $431 | $6974 |
| Other<sup>(2)</sup> | 251 | 219 | 470 | 308 | 169 | 477 |
| **Total ending balance** | **$7228** | **$885** | **$8113** | **$6851** | **$600** | **$7451** |

---

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

&nbsp;&nbsp;&nbsp;&nbsp;(2)Includes allowance for credit losses related to advances of pre-foreclosure costs and off-balance sheet credit exposures.

■&nbsp;&nbsp;&nbsp;&nbsp;**1Q 2026 vs. 1Q 2025 -** The benefit for credit losses for 1Q 2026 was driven by a credit reserve release in Single-Family primarily attributable to changes in our views of forecasted house price growth rates. The provision for credit losses for 1Q 2025 was primarily driven by a credit reserve build in Single-Family attributable to new acquisitions.

Freddie Mac 1Q 2026 Form 10-Q 55

------

<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 6</u>

**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, 2026** | **December 31, 2025** |
| Trading securities | $73027 | $82096 |
| Available-for-sale securities | 2912 | 3316 |
| **Total fair value of investment securities** | **$75939** | **$85412** |

---

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, 2026** | **December 31, 2025** |
| Mortgage-related securities | $11227 | $10932 |
| Non-mortgage-related securities | 61800 | 71164 |
| **Total fair value of trading securities** | **$73027** | **$82096** |

---

The table below provides details of our net trading gains (losses) recognized during the periods presented.

**Table 6.3 - Net Trading Gains (Losses)**

---

| | | |
|:---|:---|:---|
| **(In millions)** | **1Q 2026** | **1Q 2025** |
| Net trading gains (losses) | ($431) | $361 |
| Less: Net trading gains (losses) on securities sold | (30) | 18 |
| **Net trading gains (losses) related to securities still held at period end** | **($401)** | **$343** |

---

Available-for-Sale Securities

At both March 31, 2026 and December 31, 2025, all available-for-sale securities were mortgage-related securities.

The table below provides details of the securities classified as available-for-sale on our condensed consolidated balance sheets.

**Table 6.4 - Available-for-Sale Securities**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| | **Amortized<br>Cost<br>Basis** | **Gross Unrealized Gains in Other Comprehensive Income** | **Gross Unrealized<br>Losses in Other Comprehensive Income** | **Fair Value** | **Accrued Interest Receivable** |
| **(In millions)** | **Amortized<br>Cost<br>Basis** | **Gross Unrealized Gains in Other Comprehensive Income** | **Gross Unrealized<br>Losses in Other Comprehensive Income** | **Fair Value** | **Accrued Interest Receivable** |
| Agency mortgage-related securities | $2371 | $12 | ($45) | $2338 | $5 |
| Other mortgage-related securities | 405 | 188 | (19) | 574 | 6 |
| **Total available-for-sale securities** | **$2776** | **$200** | **($64)** | **$2912** | **$11** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Amortized<br>Cost<br>Basis** | **Gross Unrealized Gains in Other Comprehensive Income** | **Gross Unrealized<br>Losses in Other Comprehensive Income** | **Fair Value** | **Accrued Interest Receivable** |
| **(In millions)** | **Amortized<br>Cost<br>Basis** | **Gross Unrealized Gains in Other Comprehensive Income** | **Gross Unrealized<br>Losses in Other Comprehensive Income** | **Fair Value** | **Accrued Interest Receivable** |
| Agency mortgage-related securities | $2726 | $16 | ($40) | $2702 | $6 |
| Other mortgage-related securities | 423 | 209 | (18) | 614 | 7 |
| **Total available-for-sale securities** | **$3149** | **$225** | **($58)** | **$3316** | **$13** |

---

Freddie Mac 1Q 2026 Form 10-Q 56

------

<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 6</u>

The fair value of our available-for-sale securities held at March 31, 2026 scheduled to contractually mature after five years through ten years was $0.7 billion, with an additional $1.3 billion scheduled to contractually mature after ten years.

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 6.5 - Available-for-Sale Securities in a Gross Unrealized Loss Position**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| | **Less than 12 Months** | **Less than 12 Months** | **12 Months or Greater** | **12 Months or Greater** |
| **(In millions)** | **Fair Value** | **Gross Unrealized Losses** | **Fair Value** | **Gross Unrealized Losses** |
| Agency mortgage-related securities | $136 | ($1) | $1423 | ($44) |
| Other mortgage-related securities | 65 |  | 20 | (19) |
| **Total available-for-sale securities in a gross unrealized loss position** | **$201** | **($1)** | **$1443** | **($63)** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Less than 12 Months** | **Less than 12 Months** | **12 Months or Greater** | **12 Months or Greater** |
| **(In millions)** | **Fair Value** | **Gross Unrealized Losses** | **Fair Value** | **Gross Unrealized Losses** |
| Agency mortgage-related securities | $178 | $— | $1713 | ($40) |
| Other mortgage-related securities | 43 |  | 22 | (18) |
| **Total available-for-sale securities in a gross unrealized loss position** | **$221** | **$—** | **$1735** | **($58)** |

---

At March 31, 2026, the gross unrealized losses in the table above relate to 114 securities.

The table below summarizes the total proceeds, gross realized gains, and gross realized losses from sales of available-for-sale securities.

**Table 6.6 - Total Proceeds, Gross Realized Gains, and Gross Realized Losses from Sales of Available-for-Sale Securities**<sup>(1)</sup>

---

| | |
|:---|:---|
| **(In millions)** | **1Q 2026** |
| Gross realized gains | $— |
| Gross realized losses | (1) |
| **Net realized gains (losses)** | **($1)** |
| **Total proceeds** | **$281** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)There were no sales of available-for-sale securities during the quarter ended March 31, 2025.

Freddie Mac 1Q 2026 Form 10-Q 57

------

<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 7</u>

**NOTE 7**

Short-term and Long-term Debt

Short-term Debt

The table below summarizes the balances and effective interest rates for our short-term debt (debt with original maturities of one year or less).

**Table 7.1 - Short-term Debt**<sup>(1)</sup>

---

| | | |
|:---|:---|:---|
| **(Dollars in millions)** | **March 31, 2026** | **December 31, 2025** |
| Par value | $24558 | $37867 |
| Carrying amount | 24408 | 37718 |
| Weighted average effective rate | 3.66% | 3.82% |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Includes $3.1 billion and $3.0 billion of callable debt as of March 31, 2026 and December 31, 2025, respectively.

Long-term Debt

The table below summarizes our long-term debt (debt with original maturities of more than one year).

**Table 7.2 - Long-term Debt**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **(Dollars in millions)** | **Contractual Maturity** | **Par Value** | **Carrying Amount**<sup>(1)</sup> | **Weighted**<br>**Average**<br>**Effective Rate**<sup>(2)</sup> | **Contractual Maturity** | **Par Value** | **Carrying Amount**<sup>(1)</sup> | **Weighted**<br>**Average**<br>**Effective Rate**<sup>(2)</sup> |
| Fixed-rate<sup>(3)</sup> | 2026 - 2056 | $102753 | $100373 | 3.59% | 2026 - 2054 | $92236 | $90104 | 3.62% |
| Variable-rate<sup>(4)</sup> | 2026 - 2036 | 66321 | 66301 | 4.64 | 2026 - 2035 | 76008 | 75991 | 4.74 |
| Zero-coupon | 2027 - 2039 | 3904 | 2640 | 4.74 | 2026 - 2039 | 3904 | 2610 | 4.73 |
| Other<sup>(5)</sup> | 2028 - 2053 | 488 | 536 | 8.12 | 2028 - 2053 | 546 | 591 | 8.95 |
| **Total long-term debt** |  | **$173466** | **$169850** | **4.03** |  | **$172694** | **$169296** | **4.15** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Represents par value, net of associated discounts or premiums and issuance costs. Includes $0.2 billion at both March 31, 2026 and December 31, 2025, of long-term debt that represents the fair value of debt for which the fair value option was elected. Includes hedge-related basis adjustments.

&nbsp;&nbsp;&nbsp;&nbsp;(2)Based on carrying amount. Excludes hedge-related basis adjustments.

&nbsp;&nbsp;&nbsp;&nbsp;(3)Includes $94.9 billion and $84.4 billion of callable debt as of March 31, 2026 and December 31, 2025, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;(4)Includes $0.6 billion and $0.7 billion of callable debt as of March 31, 2026 and December 31, 2025, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;(5)Includes STACR debt notes, SCR debt notes, and IO debt.

A portion of our long-term debt is callable. Callable debt gives us the option to redeem the debt security at par on one or more specified call dates or at any time on or after a specified call date.

The table below summarizes contractual maturities of long-term debt securities at March 31, 2026.

**Table 7.3 - Contractual Maturities of Long-term Debt**<sup>(1)</sup>

---

| | |
|:---|:---|
| **(In millions)** | **Par Value** |
| 2026 | $33795 |
| 2027 | 46896 |
| 2028 | 19975 |
| 2029 | 17418 |
| 2030 | 24760 |
| Thereafter | 30134 |
| **Total** | **$172978** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Excludes $0.5 billion of STACR debt notes and SCR debt notes. 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 borrowers at any time generally without penalty.

Freddie Mac 1Q 2026 Form 10-Q 58

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<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 8</u>

**NOTE 8**

Derivatives

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, 2026** | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Notional or<br>Contractual<br>Amount** | **Derivative Assets** | **Derivative Liabilities** | **Notional or<br>Contractual<br>Amount** | **Derivative Assets** | **Derivative Liabilities** |
| **(In millions)** | **Notional or<br>Contractual<br>Amount** | **Derivative Assets** | **Derivative Liabilities** | **Notional or<br>Contractual<br>Amount** | **Derivative Assets** | **Derivative Liabilities** |
| **Not designated as hedges** | | | | | | |
| &nbsp;&nbsp;&nbsp;Interest-rate risk management derivatives: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Swaps | $621581 | $1098 | ($308) | $557848 | $1148 | ($306) |
| &nbsp;&nbsp;&nbsp;Written options | 47380 |  | (1434) | 40480 |  | (1459) |
| &nbsp;&nbsp;Purchased options<sup>(1)</sup> | 111866 | 4020 |  | 108030 | 3893 |  |
| &nbsp;&nbsp;&nbsp;Futures | 78860 |  |  | 87007 |  |  |
| &nbsp;&nbsp;**Total interest-rate risk management derivatives** | **859687** | **5118** | **(1742)** | **793365** | **5041** | **(1765)** |
| &nbsp;&nbsp;Mortgage commitment derivatives | 94829 | 48 | (98) | 57170 | 28 | (15) |
| &nbsp;&nbsp;CRT-related derivatives<sup>(2)</sup> | 27373 |  | (128) | 26883 |  | (155) |
| &nbsp;&nbsp;Other | 34192 | 61 | (662) | 31096 | 73 | (601) |
| &nbsp;&nbsp;**Total derivatives not designated as hedges** | **1016081** | **5227** | **(2630)** | **908514** | **5142** | **(2536)** |
| **Designated as fair value hedges** |  |  |  |  |  |  |
| &nbsp;&nbsp;Interest-rate risk management derivatives: |  |  |  |  |  |  |
| &nbsp;&nbsp;Swaps | 119551 | 107 | (2348) | 125908 | 198 | (2224) |
| &nbsp;&nbsp;**Total derivatives designated as fair value hedges** | **119551** | **107** | **(2348)** | **125908** | **198** | **(2224)** |
| &nbsp;&nbsp;Receivables (payables) |  | 1 | (196) |  | 107 |  |
| &nbsp;&nbsp;Netting adjustments<sup>(3)</sup> |  | (3774) | 4191 |  | (3981) | 3979 |
| **Total derivatives portfolio, net** | **$1135632** | **$1561** | **($983)** | **$1034422** | **$1466** | **($781)** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Includes swaptions on credit indices with a notional amount of $2.4 billion and $6.4 billion at March 31, 2026 and December 31, 2025, respectively, and a fair value of $1.0 million at both March 31, 2026 and December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;(2)Includes derivative instruments related to CRT transactions that are considered freestanding credit enhancements.

&nbsp;&nbsp;&nbsp;&nbsp;(3)Represents counterparty netting and cash collateral netting.

Freddie Mac 1Q 2026 Form 10-Q 59

------

<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 8</u>

Derivatives Counterparty Credit Risk

The table below presents offsetting and collateral information related to derivatives which are subject to enforceable master netting agreements or similar arrangements.

**Table 8.2 - Offsetting of Derivatives**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** |
| | **Derivative Assets** | **Derivative Liabilities** | **Derivative Assets** | **Derivative Liabilities** |
| **(In millions)** | **Derivative Assets** | **Derivative Liabilities** | **Derivative Assets** | **Derivative Liabilities** |
| OTC derivatives | $5195 | ($4127) | $5247 | ($3989) |
| Cleared and exchange-traded derivatives | 31 | (103) | 77 |  |
| Mortgage commitment derivatives | 48 | (155) | 50 | (15) |
| Other | 61 | (789) | 73 | (756) |
| **Total derivatives** | **5335** | **(5174)** | **5447** | **(4760)** |
| Counterparty netting | (3077) | 3077 | (2998) | 2998 |
| Cash collateral netting<sup>(1)</sup> | (697) | 1114 | (983) | 981 |
| **Net amount presented in the condensed consolidated balance sheets** | **1561** | **(983)** | **1466** | **(781)** |
| Gross amount not offset in the condensed consolidated balance sheets<sup>(2)</sup> | (1370) | 34 | (1155) |  |
| **Net amount** | **$191** | **($949)** | **$311** | **($781)** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Excess cash collateral held is presented as a derivative liability, while excess cash collateral posted is presented as a derivative asset.

&nbsp;&nbsp;&nbsp;&nbsp;(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.

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 8.3 - Gains and Losses on Derivatives**

---

| | | |
|:---|:---|:---|
| **(In millions)** | **1Q 2026** | **1Q 2025** |
| Interest-rate risk management derivatives: |  |  |
| Swaps | $303 | ($317) |
| Written options | (6) | 126 |
| Purchased options | 15 | (216) |
| Futures | 71 | (166) |
| **Total interest-rate risk management derivatives fair value gains (losses)** | **383** | **(573)** |
| Mortgage commitment derivatives | 222 | (108) |
| CRT-related derivatives<sup>(1)</sup> | 32 | 44 |
| Other | (83) | 111 |
| **Total derivatives not designated as hedges fair value gains (losses)** | **$554** | **($526)** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Includes derivative instruments related to CRT transactions that are considered freestanding credit enhancements.

Freddie Mac 1Q 2026 Form 10-Q 60

------

<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 8</u>

Hedge Accounting

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 8.4 - Gains and Losses on Fair Value Hedges** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1Q 2026** | **1Q 2026** | **1Q 2025** | **1Q 2025** |
| **(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: | $33650 | ($28031) | $31365 | ($26263) |
| Interest contracts on mortgage loans held-for-investment: |  |  |  |  |
| &nbsp;&nbsp;Gain (loss) on fair value hedging relationships: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Hedged items | (171) |  | 695 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives designated as hedging instruments | 73 |  | (772) |  |
| &nbsp;&nbsp;&nbsp;Interest accruals on hedging instruments | 56 |  | 129 |  |
| &nbsp;&nbsp;&nbsp;Discontinued hedge related basis adjustments amortization | 53 |  | 66 |  |
| Interest contracts on debt<sup>(1)</sup>: |  |  |  |  |
| &nbsp;&nbsp;Gain (loss) on fair value hedging relationships: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Hedged items |  | 240 |  | (801) |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives designated as hedging instruments |  | (231) |  | 811 |
| &nbsp;&nbsp;Interest accruals on hedging instruments |  | (115) |  | (478) |
| &nbsp;&nbsp;Discontinued hedge related basis adjustment amortization |  | 1 |  | (11) |
| **Total impact of fair value hedge accounting** | **$11** | **($105)** | **$118** | **($479)** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Represents amounts primarily related to long-term debt on our condensed consolidated balance sheets.

The table below presents the cumulative basis adjustments and the carrying amounts of the hedged item by its respective balance sheet line item.

**Table 8.5 - Cumulative Basis Adjustments Due to Fair Value Hedging**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| | **Carrying Amount Assets / (Liabilities)** | **Cumulative Amount of Fair Value Hedging Basis Adjustment Included in the Carrying Amount** | **Cumulative Amount of Fair Value Hedging Basis Adjustment Included in the Carrying Amount** | **Cumulative Amount of Fair Value Hedging Basis Adjustment Included in the Carrying Amount** | **Closed Portfolio Under the Portfolio Layer Method** | **Closed Portfolio Under the Portfolio Layer Method** |
| **(In millions)** | **Carrying Amount Assets / (Liabilities)** | **Total** | **Under the Portfolio Layer Method** | **Discontinued - Hedge Related** | **Total Amount by Amortized Cost Basis** | **Designated Amount by UPB** |
| Mortgage loans held-for-investment | $1068573 | ($2887) | ($366) | ($2521) | $43397 | $8585 |
| Debt<sup>(1)</sup> | (77412) | 2316 |  | 16 |  |  |
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Carrying Amount Assets / (Liabilities)** | **Cumulative Amount of Fair Value Hedging Basis Adjustment Included in the Carrying Amount** | **Cumulative Amount of Fair Value Hedging Basis Adjustment Included in the Carrying Amount** | **Cumulative Amount of Fair Value Hedging Basis Adjustment Included in the Carrying Amount** | **Closed Portfolio Under the Portfolio Layer Method** | **Closed Portfolio Under the Portfolio Layer Method** |
| **(In millions)** | **Carrying Amount Assets / (Liabilities)** | **Total** | **Under the Portfolio Layer Method** | **Discontinued - Hedge Related** | **Total Amount by Amortized Cost Basis** | **Designated Amount by UPB** |
| Mortgage loans held-for-investment | $1084479 | ($2768) | ($330) | ($2438) | $44826 | $8585 |
| Debt<sup>(1)</sup> | (68285) | 2054 |  | 15 |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Represents amounts primarily related to long-term debt on our condensed consolidated balance sheets.

Freddie Mac 1Q 2026 Form 10-Q 61

------

<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 9</u>

**NOTE 9** 

Collateralized Agreements

Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase

The table below presents offsetting and collateral information related to 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 Certain Financial Assets and Liabilities**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** |
| **(In millions)** | **Securities Purchased Under Agreements to Resell** | **Securities Sold Under Agreements to Repurchase** | **Securities Purchased Under Agreements to Resell** | **Securities Sold Under Agreements to Repurchase** |
| Gross amount recognized | $79128 | ($4324) | $78378 | ($6459) |
| Amount offset in the condensed consolidated balance sheets | (4324) | 4324 | (6459) | 6459 |
| **Net amount presented in the condensed consolidated balance sheets** | **74804** | **—** | **71919** | **—** |
| Gross amount not offset in the condensed consolidated balance sheets<sup>(1)</sup> | (74804) |  | (71919) |  |
| **Net amount** | **$—** | **$—** | **$—** | **$—** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)For securities purchased under agreements to resell, includes $64.2 billion and $78.3 billion of collateral that we had the right to repledge as of March 31, 2026 and December 31, 2025, respectively. We did not repledge collateral as of March 31, 2026 or December 31, 2025.

The table below presents the remaining contractual maturity of our gross obligations for our securities sold under agreements to repurchase. The collateral for such obligations consisted primarily of U.S. Treasury securities.

**Table 9.2 - Remaining Contractual Maturity**

---

| | | |
|:---|:---|:---|
| **(In millions)** | **March 31, 2026** | **December 31, 2025** |
| Overnight and continuous | $4324 | $— |
| 30 days or less |  | 6459 |
| After 30 days through 90 days |  |  |
| Greater than 90 days |  |  |
| **Total** | **$4324** | **$6459** |

---

Collateral Pledged

The table below summarizes the fair value of the securities pledged as collateral by us for derivatives and collateralized borrowing transactions, including securities that the secured party may repledge, and for regulatory requirements.

**Table 9.3 - Collateral in the Form of Securities Pledged**

---

| | | |
|:---|:---|:---|
| **(In millions)** | **March 31, 2026** | **December 31, 2025** |
| Trading securities | $8433 | $11159 |

---

Freddie Mac 1Q 2026 Form 10-Q 62

------

<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 10</u>

**NOTE 10**

Net Interest Income

The table below presents the components of net interest income per our condensed consolidated statements of income.

**Table 10.1 - Components of Net Interest Income** 

---

| | | |
|:---|:---|:---|
| **(In millions)** | **1Q 2026** | **1Q 2025** |
| Interest income |  |  |
| &nbsp;&nbsp;&nbsp;Mortgage loans | $31932 | $29395 |
| &nbsp;&nbsp;&nbsp;Investment securities | 833 | 620 |
| &nbsp;&nbsp;&nbsp;Securities purchased under agreements to resell | 798 | 1240 |
| &nbsp;&nbsp;&nbsp;Other | 87 | 110 |
| **Total interest income** | **33650** | **31365** |
| Interest expense |  |  |
| &nbsp;&nbsp;&nbsp;Debt issued by consolidated trusts | (26001) | (24059) |
| &nbsp;&nbsp;&nbsp;Short-term debt | (275) | (161) |
| &nbsp;&nbsp;&nbsp;Long-term debt | (1702) | (2000) |
| &nbsp;&nbsp;Securities sold under agreements to repurchase | (53) | (43) |
| **Total interest expense** | **(28031)** | **(26263)** |
| **Net interest income** | **5619** | **5102** |
| (Provision) benefit for credit losses | 320 | (280) |
| **Net interest income after (provision) benefit for credit losses** | **$5939** | **$4822** |

---

Freddie Mac 1Q 2026 Form 10-Q 63

------

<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 11</u>

**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. |  |  |
| **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. |
| **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 2026** | **1Q 2026** | **1Q 2026** | **1Q 2025** | **1Q 2025** | **1Q 2025** |
| **(In millions)** | **Single-Family** | **Multifamily** | **Total** | **Single-Family** | **Multifamily** | **Total** |
| **Net interest income** | | | | | | |
| Interest income | $31570 | $2080 | $33650 | $30046 | $1319 | $31365 |
| Interest expense | (26450) | (1581) | (28031) | (25293) | (970) | (26263) |
| **Net interest income** | **5120** | **499** | **5619** | **4753** | **349** | **5102** |
| **Non-interest income** |  |  |  |  |  |  |
| Guarantee income | 20 | 300 | 320 | 23 | 417 | 440 |
| Investment gains (losses), net | (66) | 108 | 42 | 61 | 131 | 192 |
| Other income | 101 | 51 | 152 | 81 | 37 | 118 |
| **Non-interest income** | **55** | **459** | **514** | **165** | **585** | **750** |
| **Net revenues** | **5175** | **958** | **6133** | **4918** | **934** | **5852** |
| (Provision) benefit for credit losses | 311 | 9 | 320 | (228) | (52) | (280) |
| **Non-interest expense** |  |  |  |  |  |  |
| Administrative expense<sup>(1)</sup> | (482) | (144) | (626) | (523) | (153) | (676) |
| Credit enhancement expense | (386) | (55) | (441) | (491) | (49) | (540) |
| Legislative and regulatory assessments | (821) | (11) | (832) | (807) | (10) | (817) |
| Other expense | (91) | (32) | (123) | (50) | (5) | (55) |
| **Non-interest expense** | **(1780)** | **(242)** | **(2022)** | **(1871)** | **(217)** | **(2088)** |
| **Income before income tax expense** | **3706** | **725** | **4431** | **2819** | **665** | **3484** |
| Income tax expense | (730) | (143) | (873) | (558) | (132) | (690) |
| **Net income** | **2976** | **582** | **3558** | **2261** | **533** | **2794** |
| Other comprehensive income (loss), net of taxes and reclassification adjustments | (13) | (7) | (20) | 8 | 26 | 34 |
| **Comprehensive income** | **$2963** | **$575** | **$3538** | **$2269** | **$559** | **$2828** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Includes salaries and employee benefits and professional services, technology, and occupancy.

Freddie Mac 1Q 2026 Form 10-Q 64

------

<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 11</u>

The table below presents total assets for our Single-Family and Multifamily segments.

**Table 11.2 - Segment Assets** 

---

| | | |
|:---|:---|:---|
| **(In millions)** | **March 31, 2026** | **December 31, 2025** |
| Single-Family | $3157981 | $3156290 |
| Multifamily | 498332 | 495835 |
| **Total segment assets** | **3656313** | **3652125** |
| Reconciling items<sup>(1)</sup> | (150995) | (154527) |
| **Total assets per condensed consolidated balance sheets** | **$3505318** | **$3497598** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Reconciling items include (1) assets in our mortgage portfolio that are not recognized on our condensed consolidated balance sheets and (2) assets recognized on our condensed consolidated balance sheets that are not allocated to the reportable segments.

Freddie Mac 1Q 2026 Form 10-Q 65

------

<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 12</u>

**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, Note 4, and Note 5 for additional 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, 2026** | **March 31, 2026** | **March 31, 2026** |
| **(Dollars in millions)** | **Portfolio UPB**<sup>(1)</sup> | **% of Portfolio** | **SDQ Rate** |
| **Region:**<sup>(2)</sup> | | | |
| &nbsp;&nbsp;West | $919994 | 29% | 0.47% |
| &nbsp;&nbsp;Northeast | 729486 | 23 | 0.63 |
| &nbsp;&nbsp;Southeast | 565501 | 18 | 0.68 |
| &nbsp;&nbsp;Southwest | 479012 | 15 | 0.65 |
| &nbsp;&nbsp;North Central | 463683 | 15 | 0.59 |
| **Total** | **$3157676** | **100%** | **0.60** |
| **State:** |  |  |  |
| &nbsp;&nbsp;California | $507586 | 16% | 0.46% |
| &nbsp;&nbsp;Texas | 229802 | 7 | 0.74 |
| &nbsp;&nbsp;Florida | 213829 | 7 | 0.81 |
| &nbsp;&nbsp;New York | 138886 | 4 | 0.82 |
| &nbsp;&nbsp;Illinois | 117944 | 4 | 0.71 |
| &nbsp;&nbsp;All other | 1949629 | 62 | 0.56 |
| **Total** | **$3157676** | **100%** | **0.60** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Excludes UPB of loans underlying certain securitization products for which data was not available.

&nbsp;&nbsp;&nbsp;&nbsp;(2)Region designation: West (AK, AS, AZ, CA, GU, HI, ID, MP, MT, NV, OR, UT, WA); Northeast (CT, DE, DC, MA, ME, MD, NH, NJ, NY, PA, RI, VT, VA, WV); Southeast (AL, FL, GA, KY, MS, NC, PR, SC, TN, U.S. VI); Southwest (AR, CO, KS, LA, MO, NE, NM, OK, TX, WY); North Central (IL, IN, IA, MI, MN, ND, OH, SD, WI).

Freddie Mac 1Q 2026 Form 10-Q 66

------

<u>Financial Statements</u> <u>Notes to the Condensed Consolidated Financial Statements \| Note 12</u>

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 additional 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, 2026** | **March 31, 2026** | **March 31, 2026** |
| **(Dollars in millions)** | **Portfolio UPB** | **% of Portfolio** | **Delinquency Rate**<sup>(1)</sup> |
| **Region**<sup>(2)(3)</sup>**:** | | | |
| &nbsp;&nbsp;Northeast | $128093 | 26% | 0.87% |
| &nbsp;&nbsp;West | 115386 | 23 | 0.21 |
| &nbsp;&nbsp;Southeast | 105307 | 21 | 0.10 |
| &nbsp;&nbsp;Southwest | 96813 | 19 | 0.52 |
| &nbsp;&nbsp;North Central | 52733 | 11 | 0.35 |
| **Total** | **$498332** | **100%** | **0.43** |
| **State**<sup>(3)</sup>**:** |  |  |  |
| &nbsp;&nbsp;California | $61347 | 12% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.31 |
| &nbsp;&nbsp;Texas | 60929 | 12 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.48 |
| &nbsp;&nbsp;Florida | 45405 | 9 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.10 |
| &nbsp;&nbsp;New York | 39756 | 8 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 |
| &nbsp;&nbsp;Georgia | 21746 | 4 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.06 |
| &nbsp;&nbsp;All other | 269149 | 55 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.28 |
| **Total** | **$498332** | **100%** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**0.43** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Based on loans two monthly payments or more delinquent or in foreclosure.

&nbsp;&nbsp;&nbsp;&nbsp;(2)Region designation: Northeast (CT, DE, DC, MA, ME, MD, NH, NJ, NY, PA, RI, VT, VA, WV); West (AK, AS, AZ, CA, GU, HI, ID, MP, MT, NV, OR, UT, WA); Southeast (AL, FL, GA, KY, MS, NC, PR, SC, TN, U.S. VI); Southwest (AR, CO, KS, LA, MO, NE, NM, OK, TX, WY); North Central (IL, IN, IA, MI, MN, ND, OH, SD, WI).

&nbsp;&nbsp;&nbsp;&nbsp;(3)Loans collateralized by properties located in multiple regions or states are reported entirely in the region or state with the largest UPB as of origination.

Freddie Mac 1Q 2026 Form 10-Q 67

------

<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 13</u>

**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, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| **(In millions)** | **Level 1** | **Level 2** | **Level 3** | **Netting Adjustments**<sup>(1)</sup> | **Total** |
| **Assets:** | | | | | |
| Investment securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Available-for-sale | $— | $2263 | $649 | $— | $2912 |
| &nbsp;&nbsp;&nbsp;Trading: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage-related securities |  | 8551 | 2676 |  | 11227 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-mortgage-related securities | 61551 | 249 |  |  | 61800 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total trading securities** | **61551** | **8800** | **2676** | **—** | **73027** |
| **Total investment securities** | **61551** | **11063** | **3325** | **—** | **75939** |
| Mortgage loans held-for-investment |  | 6190 | 716 |  | 6906 |
| Other assets: |  |  |  |  |  |
| &nbsp;&nbsp; Guarantee assets |  |  | 4495 |  | 4495 |
| &nbsp;&nbsp; Derivative assets, net | 31 | 5243 | 60 | (3773) | 1561 |
| &nbsp;&nbsp; Other assets |  |  | 238 |  | 238 |
| &nbsp;&nbsp; **Total other assets** | **31** | **5243** | **4793** | **(3773)** | **6294** |
| **Total assets carried at fair value on a recurring basis** | **$61582** | **$22496** | **$8834** | **($3773)** | **$89139** |
| **Liabilities:** |  |  |  |  |  |
| Debt issued by consolidated trusts | $— | $5936 | $35 | $— | $5971 |
| Long-term debt |  | 122 | 67 |  | 189 |
| Other liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;Derivative liabilities, net | 3 | 4879 | 96 | (3995) | 983 |
| **Total liabilities carried at fair value on a recurring basis** | **$3** | **$10937** | **$198** | **($3995)** | **$7143** |

---

Freddie Mac 1Q 2026 Form 10-Q 68

------

<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 13</u>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **(In millions)** | **Level 1** | **Level 2** | **Level 3** | **Netting Adjustments**<sup>(1)</sup> | **Total** |
| **Assets:** | | | | | |
| Investment securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Available-for-sale | $— | $2616 | $700 | $— | $3316 |
| &nbsp;&nbsp;&nbsp;Trading: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage-related securities |  | 8146 | 2786 |  | 10932 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-mortgage-related securities | 70916 | 248 |  |  | 71164 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total trading securities** | **70916** | **8394** | **2786** | **—** | **82096** |
| **Total investment securities** | **70916** | **11010** | **3486** | **—** | **85412** |
| Mortgage loans held-for-investment |  | 5587 | 1418 |  | 7005 |
| Other assets: |  |  |  |  |  |
| &nbsp;&nbsp;Guarantee assets |  |  | 4728 |  | 4728 |
| &nbsp;&nbsp;Derivative assets, net | 5 | 5261 | 74 | (3874) | 1466 |
| &nbsp;&nbsp;Other assets |  |  | 227 |  | 227 |
| &nbsp;&nbsp; **Total other assets** | **5** | **5261** | **5029** | **(3874)** | **6421** |
| **Total assets carried at fair value on a recurring basis** | **$70921** | **$21858** | **$9933** | **($3874)** | **$98838** |
| **Liabilities:** |  |  |  |  |  |
| Debt issued by consolidated trusts | $— | $5808 | $33 | $— | $5841 |
| Long-term debt |  | 125 | 70 |  | 195 |
| Other liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;Derivative liabilities, net |  | 4708 | 52 | (3979) | 781 |
| **Total liabilities carried at fair value on a recurring basis** | **$—** | **$10641** | **$155** | **($3979)** | **$6817** |

---

(1) &nbsp;&nbsp;&nbsp;&nbsp;Represents counterparty netting and cash collateral netting, and includes accrued interest receivable and payable.

Freddie Mac 1Q 2026 Form 10-Q 69

------

<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 13</u>

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.

**Table 13.2 - Fair Value Measurements of Assets and Liabilities Using Significant Unobservable Inputs**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1Q 2026** | **1Q 2026** | **1Q 2026** | **1Q 2026** |
| **(In millions)** | **Investment Securities** | **Mortgage Loans Held-for-Investment** | **Other <br>Assets** | **Total <br>Liabilities** |
| **Balance at January 1, 2026** | **$3486** | **$1418** | **$5029** | **$155** |
| Total realized/unrealized gains/losses<sup>(1)</sup> |  |  |  |  |
| &nbsp;&nbsp;Included in earnings | (84) | (6) | (27) | 24 |
| &nbsp;&nbsp;Included in other comprehensive income | (22) |  |  |  |
| Purchases | 21 |  | (11) |  |
| Issues |  |  | 20 | 21 |
| Sales |  |  |  |  |
| Settlements, net | (76) | (57) | (218) | (2) |
| Transfers into Level 3 |  | 39 |  |  |
| Transfers out of Level 3 |  | (678) |  |  |
| **Balance at March 31, 2026** | **$3325** | **$716** | **$4793** | **$198** |
| Change in unrealized gains/losses<sup>(1)</sup> included in net income related to assets and liabilities still held as of March 31, 2026<sup>(2)</sup> | ($19) | ($11) | ($28) | $14 |
| Change in unrealized gains/losses<sup>(1)</sup>, net of tax, included in OCI related to assets and liabilities still held as of March 31, 2026 | (18) |  |  |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **1Q 2025** | **1Q 2025** | **1Q 2025** | **1Q 2025** | **1Q 2025** |
| **(In millions)** | **Investment Securities** | **Mortgage Loans Held-for-Sale** | **Mortgage Loans Held-for-Investment** | **Other <br>Assets** | **Total <br>Liabilities** |
| **Balance at January 1, 2025** | **$3610** | **$1295** | **$841** | **$5439** | **$241** |
| Total realized/unrealized gains/losses<sup>(1)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;Included in earnings | (17) | 3 | 10 | 79 | (36) |
| &nbsp;&nbsp;Included in other comprehensive income | 5 |  |  |  |  |
| Purchases | 88 | 32 |  |  |  |
| Issues |  |  |  | 153 | 3 |
| Sales |  |  |  | (6) |  |
| Settlements, net | (42) |  | (55) | (274) | (3) |
| Transfers into Level 3 |  |  | 31 |  | 17 |
| Transfers out of Level 3 |  | (1175) | (90) |  | (18) |
| **Balance at March 31, 2025** | **$3644** | **$155** | **$737** | **$5391** | **$204** |
| Change in unrealized gains/losses<sup>(1)</sup> included in net income related to assets and liabilities still held as of March 31, 2025<sup>(2)</sup> | $109 | $3 | $6 | $79 | ($36) |
| Change in unrealized gains/losses<sup>(1)</sup>, net of tax, included in OCI related to assets and liabilities still held as of March 31, 2025 | 4 |  |  |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;(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, 2026 and March 31, 2025, respectively.

Freddie Mac 1Q 2026 Form 10-Q 70

------

<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 13</u>

The table below provides the valuation technique, range, and 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, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| | **Level 3**<br>**Fair**<br>**Value** | **Predominant**<br>**Valuation**<br>**Technique(s)** | **Unobservable Inputs** | **Unobservable Inputs** | **Unobservable Inputs** |
| (**Dollars in millions**, except for certain unobservable inputs as shown) | **Level 3**<br>**Fair**<br>**Value** | **Predominant**<br>**Valuation**<br>**Technique(s)** | **Type** | **Range** | **Weighted**<br>**Average**<sup>(1)</sup> |
| **Assets** | | | | | |
| Investment securities | $2402 | External pricing sources | Price | $0.0 - $3,138.1 | $77.2 |
|  | 923 | Other |  |  |  |
| Mortgage loans held-for-investment | 716 | External pricing sources | Price | $25.3 - $104.9 | $83.2 |
| Other assets | 4197 | Discounted cash flows | OAS | 20 - 840 bps | 49 bps |
|  | 596 | Other |  |  |  |
| **Total Level 3 assets** | **$8834** |  |  |  |  |
| **Liabilities** |  |  |  |  |  |
| Total Level 3 liabilities | $198 |  |  |  |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Level 3<br>Fair<br>Value** | **Predominant<br>Valuation<br>Technique(s)** | **Unobservable Inputs** | **Unobservable Inputs** | **Unobservable Inputs** |
| (**Dollars in millions**, except for certain unobservable inputs as shown) | **Level 3<br>Fair<br>Value** | **Predominant<br>Valuation<br>Technique(s)** | **Type** | **Range** | **Weighted**<br>**Average**<sup>(1)</sup> |
| **Assets** |  |  |  |  |  |
| Investment securities | $2532 | External pricing sources | Price | $0.0 - $3,520.6 | $82.1 |
|  | 954 | Other |  |  |  |
| Mortgage loans held-for-investment | 1418 | External pricing sources | Price | $48.4 - $105.8 | $89.0 |
| Other assets | 4424 | Discounted cash flows | OAS | 17 - 8,850 bps | 50 bps |
|  | 605 | Other |  |  |  |
| **Total Level 3 assets** | **$9933** |  |  |  |  |
| **Liabilities** |  |  |  |  |  |
| Total Level 3 liabilities | $155 |  |  |  |  |

---

(1) &nbsp;&nbsp;&nbsp;&nbsp;Unobservable inputs were weighted primarily by the relative fair value of the financial instruments.

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 an allowance for credit losses based on the fair value of the underlying collateral.

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** 

---

| | | |
|:---|:---|:---|
| **(In millions)** | **March 31, 2026** | **December 31, 2025** |
| Mortgage loans held-for-investment:<sup>(1)</sup> |  |  |
| &nbsp;&nbsp;Level 2 |  | 109 |
| &nbsp;&nbsp;Level 3<sup>(2)</sup> | 754 | 508 |
| **Total** | **$754** | **$617** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Includes loans that are classified as held-for-investment where we recognize credit losses, either through an allowance for credit losses or charge-off, based on the fair value of the underlying collateral and held-for-sale loans where the fair value is below cost. The valuation date for certain items may occur during the period and not at period end.

&nbsp;&nbsp;&nbsp;&nbsp;(2)The predominant valuation technique used for Level 3 non-recurring fair value measurement at both March 31, 2026 and December 31, 2025 was external pricing sources. The unobservable inputs included a range of $77.2 - $104.5 and weighted average of $87.9 at March 31, 2026 and a range of $24.0 - $104.3 and weighted average of $85.7 at December 31, 2025.

Freddie Mac 1Q 2026 Form 10-Q 71

------

<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 13</u>

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, secured lending, and certain debt, the carrying value on our condensed consolidated balance sheets approximates fair value, as these assets and liabilities are short-term in nature and have limited fair value volatility.

**Table 13.5 - Fair Value of Financial Instruments** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| | **GAAP Measurement Category**<sup>(1)</sup> | **Carrying Amount**<sup>(2)</sup> | **Fair Value** | **Fair Value** | **Fair Value** | **Fair Value** | **Fair Value** |
| **(In millions)** | **GAAP Measurement Category**<sup>(1)</sup> | **Carrying Amount**<sup>(2)</sup> | **Level 1** | **Level 2** | **Level 3** | **Netting** <br>**Adjustments**<sup>(3)</sup> | **Total** |
| **Financial assets** | | | | | | | |
| Cash and cash equivalents | Amortized cost | $4469 | $4469 | $— | $— | $— | $4469 |
| Securities purchased under agreements to resell | Amortized cost | 74804 |  | 79128 |  | (4324) | 74804 |
| Investment securities: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Available-for-sale | FV - OCI | 2912 |  | 2263 | 649 |  | 2912 |
| &nbsp;&nbsp;&nbsp;Trading | FV - NI | 73027 | 61551 | 8800 | 2676 |  | 73027 |
| &nbsp;&nbsp; **Total investment securities** |  | **75939** | **61551** | **11063** | **3325** | **—** | **75939** |
| Mortgage loans held-for-sale | Lower-of-cost-or fair - value | 1225 |  | 19 | 1272 |  | 1291 |
| Mortgage loans held-for-investment, net of allowance for credit losses | Various<sup>(4)</sup> | 3302306 |  | 2614200 | 390594 |  | 3004794 |
| Other assets: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Guarantee assets | FV - NI | 4495 |  |  | 4497 |  | 4497 |
| &nbsp;&nbsp;&nbsp;Derivative assets, net | FV - NI | 1561 | 31 | 5243 | 60 | (3773) | 1561 |
| &nbsp;&nbsp;Other assets<sup>(5)</sup> | Various<sup>(6)</sup> | 3356 |  | 504 | 3073 |  | 3577 |
| **Total other assets** |  | **9412** | **31** | **5747** | **7630** | **(3773)** | **9635** |
| **Total financial assets** |  | **$3468155** | **$66051** | **$2710157** | **$402821** | **($8097)** | **$3170932** |
| **Financial liabilities** |  |  |  |  |  |  |  |
| Debt issued by consolidated trusts | Various<sup>(7)</sup> | $3214995 | $— | $2914620 | $376 | $— | $2914996 |
| Short-term debt | Amortized cost | 24408 |  | 24405 |  |  | 24405 |
| Long-term debt | Various<sup>(8)</sup> | 169850 |  | 167673 | 2669 |  | 170342 |
| Securities sold under agreements to repurchase | Amortized cost |  |  | 4324 |  | (4324) |  |
| Other liabilities: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Guarantee obligations | Amortized cost | 4258 |  | 91 | 5799 |  | 5890 |
| &nbsp;&nbsp;&nbsp;Derivative liabilities, net | FV - NI | 983 | 3 | 4879 | 96 | (3995) | 983 |
| &nbsp;&nbsp;Other liabilities<sup>(5)</sup> | FV - NI |  |  | 291 | 54 |  | 345 |
| &nbsp;&nbsp; **Total other liabilities** |  | **5241** | **3** | **5261** | **5949** | **(3995)** | **7218** |
| **Total financial liabilities** |  | **$3414494** | **$3** | **$3116283** | **$8994** | **($8319)** | **$3116961** |

---

Freddie Mac 1Q 2026 Form 10-Q 72

------

<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 13</u>

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **GAAP Measurement Category**<sup>(1)</sup> | **Carrying Amount**<sup>(2)</sup> | **Fair Value** | **Fair Value** | **Fair Value** | **Fair Value** | **Fair Value** |
| **(In millions)** | **GAAP Measurement Category**<sup>(1)</sup> | **Carrying Amount**<sup>(2)</sup> | **Level 1** | **Level 2** | **Level 3** | **Netting Adjustments**<sup>(3)</sup> | **Total** |
| **Financial assets** | | | | | | | |
| Cash and cash equivalents | Amortized cost | $5327 | $5327 | $— | $— | $— | $5327 |
| Securities purchased under agreements to resell | Amortized cost | 71919 |  | 78378 |  | (6459) | 71919 |
| Investment securities: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Available-for-sale | FV - OCI | 3316 |  | 2616 | 700 |  | 3316 |
| &nbsp;&nbsp;&nbsp;Trading | FV - NI | 82096 | 70916 | 8394 | 2786 |  | 82096 |
| &nbsp;&nbsp;**Total investment securities** |  | **85412** | **70916** | **11010** | **3486** | **—** | **85412** |
| Mortgage loans held-for-sale | Lower-of-cost-or fair - value | 1014 |  | 139 | 939 |  | 1078 |
| Mortgage loans held-for-investment, net of allowance for credit losses | Various<sup>(4)</sup> | 3290066 |  | 2626057 | 382754 |  | 3008811 |
| Other assets: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Guarantee assets | FV - NI | 4728 |  |  | 4730 |  | 4730 |
| &nbsp;&nbsp;&nbsp;Derivative assets, net | FV - NI | 1466 | 5 | 5261 | 74 | (3874) | 1466 |
| &nbsp;&nbsp;Other assets<sup>(5)</sup> | Various<sup>(6)</sup> | 2607 |  | 445 | 2442 |  | 2887 |
| &nbsp;&nbsp;**Total other assets** |  | **8801** | **5** | **5706** | **7246** | **(3874)** | **9083** |
| **Total financial assets** |  | **$3462539** | **$76248** | **$2721290** | **$394425** | **($10333)** | **$3181630** |
| **Financial liabilities** |  |  |  |  |  |  |  |
| Debt issued by consolidated trusts | Various<sup>(7)</sup> | $3198008 | $— | $2913353 | $434 | $— | $2913787 |
| Short-term debt | Amortized cost | 37718 |  | 37727 |  |  | 37727 |
| Long-term debt | Various<sup>(8)</sup> | 169296 |  | 167440 | 2674 |  | 170114 |
| Securities sold under agreements to repurchase | Amortized cost |  |  | 6459 |  | (6459) |  |
| Other liabilities: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Guarantee obligations | Amortized cost | 4494 |  | 92 | 6104 |  | 6196 |
| &nbsp;&nbsp;&nbsp;Derivative liabilities, net | FV - NI | 781 |  | 4708 | 52 | (3979) | 781 |
| &nbsp;&nbsp;Other liabilities<sup>(5)</sup> | FV - NI |  |  | 184 | 78 |  | 262 |
| &nbsp;&nbsp;**Total other liabilities** |  | **5275** | **—** | **4984** | **6234** | **(3979)** | **7239** |
| **Total financial liabilities** |  | **$3410297** | **$—** | **$3129963** | **$9342** | **($10438)** | **$3128867** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)FV - NI denotes fair value through net income. FV - OCI denotes fair value through other comprehensive income.

&nbsp;&nbsp;&nbsp;&nbsp;(2)Excludes allowance for credit losses on off-balance sheet credit exposure.

&nbsp;&nbsp;&nbsp;&nbsp;(3)Represents counterparty netting and cash collateral netting, and includes accrued interest receivable and payable.

&nbsp;&nbsp;&nbsp;&nbsp;(4)The GAAP carrying amounts measured at amortized cost and FV - NI were $3.3 trillion and $6.9 billion as of March 31, 2026, respectively, and $3.3 trillion and $7.0 billion as of December 31, 2025, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;(5)For other assets, includes advances to lenders, secured lending, and loan commitments. For other liabilities, includes loan commitments.

&nbsp;&nbsp;&nbsp;&nbsp;(6)The GAAP carrying amounts measured at amortized cost and FV - NI were $3.1 billion and $0.2 billion as of March 31, 2026, respectively, and $2.4 billion and $0.2 billion as of December 31, 2025, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;(7)The GAAP carrying amounts measured at amortized cost and FV - NI were $3.2 trillion and $6.0 billion as of March 31, 2026, respectively, and $3.2 trillion and $5.8 billion as of December 31, 2025, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;(8)The GAAP carrying amounts measured at amortized cost and FV - NI were $0.2 trillion and $0.2 billion as of March 31, 2026, respectively, and $0.2 trillion and $0.2 billion as of December 31, 2025, respectively.

Freddie Mac 1Q 2026 Form 10-Q 73

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<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 13</u>

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 items for which we have elected the fair value option.

**Table 13.6 - Difference Between Fair Value and UPB for Certain Financial Instruments with Fair Value Option Elected**<sup>(1)</sup> 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **(In millions)** | **Fair Value** | **UPB** | **Difference** | **Fair Value** | **UPB** | **Difference** |
| Mortgage loans held-for-investment | 6906 | 7073 | (167) | 7005 | 7148 | (143) |
| Long-term debt | 49 | 46 | 3 | 51 | 48 | 3 |
| Debt issued by consolidated trusts | 5441 | 5526 | (85) | 5387 | 5445 | ($58) |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;Excludes interest-only securities related to debt issued by consolidated trusts and long-term debt with a fair value of $0.7 billion as of March 31, 2026 and $0.6 billion as of December 31, 2025.

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 13.7 - Changes in Fair Value Under the Fair Value Option Election**

---

| | | |
|:---|:---|:---|
| | **1Q 2026** | **1Q 2025** |
| **(In millions)** | **Gains (Losses)** | **Gains (Losses)** |
| Mortgage loans held-for-sale | $— | $227 |
| Mortgage loans held-for-investment | (24) | 48 |
| Long-term debt | 3 | 11 |
| Debt issued by consolidated trusts | 34 | (47) |
| Other assets/other liabilities |  | 100 |

---

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.

Freddie Mac 1Q 2026 Form 10-Q 74

------

<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 14</u>

**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 connection with any of these lawsuits or any future lawsuits. However, it is possible that we could be adversely affected by these actions, 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 v. 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. On April 6, 2023, the U.S. Court of Appeals for the Sixth Circuit reversed the District Court's September 17, 2020 ruling, which had granted the plaintiff's request for summary judgment and entered final judgment in favor of Freddie Mac and other defendants, and remanded the case to the District Court for further proceedings. On August 29, 2025, the District Court granted defendants' motions for summary judgment and final judgment was entered for all defendants. The plaintiff has appealed the District Court's decision to the U.S. Court of Appeals for the Sixth Circuit.

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.

The Class Plaintiffs and Individual Plaintiffs (collectively "Plaintiffs") in 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

Freddie Mac 1Q 2026 Form 10-Q 75

------

<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 14</u>

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.

Court rulings limited the Plaintiffs' 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 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 retrial started on July 24, 2023. On August 14, 2023, the jury returned a verdict against FHFA, Fannie Mae, and Freddie Mac awarding compensatory damages of $282 million to Freddie Mac junior preferred shareholders and $31 million to Freddie Mac common shareholders. The jury declined to award the Freddie Mac shareholders prejudgment interest. In 2023, we recorded a $313 million accrual for the adverse judgment. On March 20, 2024, the District Court entered final judgment. On April 17, 2024, the defendants filed a renewed motion for judgment as a matter of law, notwithstanding the jury verdict, which was denied on March 14, 2025. The defendants filed a notice of appeal to the U.S. Court of Appeals for the D.C. Circuit on April 11, 2025. On April 25, 2025, the individual plaintiffs and the class plaintiffs filed their own appeals to the U.S. Court of Appeals for the D.C. Circuit. Oral argument was held before the U.S. Court of Appeals for the D.C. Circuit on April 21, 2026, and a decision is pending.

Freddie Mac 1Q 2026 Form 10-Q 76

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<u>Financial Statements</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to the Condensed Consolidated Financial Statements \| Note 15</u>

**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)** | **(In billions)** | **(In billions)** | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** |
| Adjusted total assets | Adjusted total assets | Adjusted total assets | $3903 | $3903 | $3905 | $3905 |
| Risk-weighted assets (standardized approach) | Risk-weighted assets (standardized approach) | Risk-weighted assets (standardized approach) | 1259 | 1259 | 1231 | 1231 |
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
|  | **Amounts** | **Amounts** | **Amounts** | **Ratios** | **Ratios** | **Ratios** |
| **(Dollars in billions)** | **Available Capital (Deficit)** | **Minimum <br>Capital <br>Requirement** | **Capital** <br>**Requirement** <br>**(Including Buffer**<sup>(1)</sup>**)** | **Available Capital (Deficit) Ratio**<sup>(2)</sup> | **Minimum Capital Requirement Ratio**<sup>(2)</sup> | **Capital** <br>**Requirement Ratio**<sup>(2)</sup><br>**(Including Buffer**<sup>(1)</sup>**)** |
| **Risk-based capital:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total capital | $9 | $101 | $101 | 0.7% | 8.0% | 8.0% |
| &nbsp;&nbsp;&nbsp;CET1 capital | (18) | 57 | 117 | (1.4) | 4.5 | 9.3 |
| &nbsp;&nbsp;&nbsp;Tier 1 capital | (4) | 76 | 136 | (0.3) | 6.0 | 10.8 |
| &nbsp;&nbsp;&nbsp;Adjusted total capital | (4) | 101 | 161 | (0.3) | 8.0 | 12.8 |
| **Leverage capital:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Core capital | 1 | 98 | 98 |  | 2.5 | 2.5 |
| &nbsp;&nbsp;&nbsp;Tier 1 capital | (4) | 98 | 113 | (0.1) | 2.5 | 2.9 |
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Amounts** | **Amounts** | **Amounts** | **Ratios** | **Ratios** | **Ratios** |
| **(Dollars in billions)** | **Available Capital (Deficit)** | **Minimum <br>Capital <br>Requirement** | **Capital** <br>**Requirement** <br>**(Including Buffer**<sup>(1)</sup>**)** | **Available Capital (Deficit) Ratio**<sup>(2)</sup> | **Minimum Capital Requirement Ratio**<sup>(2)</sup> | **Capital** <br>**Requirement Ratio**<sup>(2)</sup><br>**(Including Buffer**<sup>(1)</sup>**)** |
| **Risk-based capital:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total capital | $6 | $99 | $99 | 0.5% | 8.0% | 8.0% |
| &nbsp;&nbsp;&nbsp;CET1 capital | (22) | 55 | 114 | (1.8) | 4.5 | 9.3 |
| &nbsp;&nbsp;&nbsp;Tier 1 capital | (7) | 74 | 133 | (0.6) | 6.0 | 10.8 |
| &nbsp;&nbsp;&nbsp;Adjusted total capital | (7) | 99 | 158 | (0.6) | 8.0 | 12.8 |
| **Leverage capital:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Core capital | (2) | 98 | 98 | (0.1) | 2.5 | 2.5 |
| &nbsp;&nbsp;&nbsp;Tier 1 capital | (7) | 98 | 113 | (0.2) | 2.5 | 2.9 |

---

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

&nbsp;&nbsp;&nbsp;&nbsp;(2)As a percentage of RWA for risk-based capital and ATA for leverage capital.

END OF CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND ACCOMPANYING NOTES

Freddie Mac 1Q 2026 Form 10-Q 77

------

<u>Other Information</u>

**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 additional 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. Two of these cases remain pending and Freddie Mac is not a party to either. One of those lawsuits seeks to void the net worth sweep dividend provisions of the senior preferred stock, which were implemented pursuant to the August 2012 amendment to the Purchase Agreement. The other pending lawsuit challenges the constitutionality of the structure of FHFA.

Another case 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 v. 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 Court of Federal Claims dismissed the case with prejudice on September 1, 2023 and entered judgment for the defendants. On October 31, 2023, the plaintiffs filed a notice of appeal to the U.S. Court of Appeals for the Federal Circuit. On August 12, 2025, the Federal Circuit affirmed the dismissal of the plaintiffs' case. The plaintiffs did not file a petition with the Supreme Court seeking further review; therefore the Federal Circuit's affirmation of the dismissal is final.

**RISK FACTORS** 

This Form 10-Q should be read together with the Risk Factors section in our 2025 Annual Report, which describes 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/investors**, 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 a website (www.sec.gov) that contains reports, proxy and information statements, and other information regarding companies that file electronically with the SEC.

We provide information on the ERCF on our website at **www.freddiemac.com/investors**.

We provide disclosure about our debt securities on our website at **capitalmarkets.freddiemac.com/debt**. From this address, investors can access the offering circular and issuance information for debt securities offerings under Freddie Mac's global debt facility, including any required pricing supplements for individual issuances of debt securities. Similar information about

Freddie Mac 1Q 2026 Form 10-Q 78

------

<u>Other Information</u>

our STACR transactions and MSCR transactions is available at **capitalmarkets.freddiemac.com/crt** 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), 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, transaction 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 divisions, which can be found at **sf.freddiemac.com**, **mf.freddiemac.com**, and **capitalmarkets.freddiemac.com/capital-markets**.

**OTHER INFORMATION**

Insider Trading Arrangements and Policies

No executive officer or director adopted or terminated any contract, instruction, or written plan for the purchase or sale of, or any other such trading arrangement for, our securities during 1Q 2026. For additional information on executive officer and director compensation and security ownership by our executive officers and directors, see Directors, Corporate Governance, and Executive Officers, Executive Compensation, and Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters in our 2025 Annual Report.

**EXHIBITS**

The exhibits are listed in the Exhibit Index of this Form 10-Q.

Freddie Mac 1Q 2026 Form 10-Q 79

------

<u>Controls and Procedures</u>

**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 CEO and CFO, 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 CEO and CFO, conducted an evaluation of the effectiveness of our disclosure controls and procedures as of March 31, 2026. As a result of management's evaluation, our CEO and CFO concluded that our disclosure controls and procedures were not effective as of March 31, 2026, 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. Based on discussions with FHFA and the structural nature of this continuing weakness, we believe it is likely that we will not remediate this material weakness while we are under conservatorship.

**CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING DURING 1Q 2026**

We evaluated the changes in our internal control over financial reporting that occurred during 1Q 2026 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, 2026 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:

■&nbsp;&nbsp;&nbsp;&nbsp;FHFA has established a process to facilitate operation of the company under the oversight of the Conservator.

■&nbsp;&nbsp;&nbsp;&nbsp;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.

■&nbsp;&nbsp;&nbsp;&nbsp;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.

■&nbsp;&nbsp;&nbsp;&nbsp;Our senior management meets regularly with senior leadership at FHFA, including, but not limited to, the Director.

■&nbsp;&nbsp;&nbsp;&nbsp;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.

■&nbsp;&nbsp;&nbsp;&nbsp;Senior officials within FHFA's accounting group meet frequently with our senior financial executives regarding our accounting policies, practices, and procedures.

Freddie Mac 1Q 2026 Form 10-Q 80

------

<u>Controls and Procedures</u>

Although we and FHFA have attempted to design and implement disclosure policies and procedures to account for the conservatorship and accomplish the same objectives as disclosure controls and procedures for a typical reporting company, there are inherent structural limitations on our ability to design, implement, test, or operate effective disclosure controls and procedures under the circumstances of conservatorship. Despite our material weakness, we believe that our condensed consolidated financial statements for 1Q 2026 have been prepared in conformity with GAAP.

Freddie Mac 1Q 2026 Form 10-Q 81

------

<u>Exhibit Index</u>

**Exhibit Index** 

---

| | |
|:---|:---|
| **Exhibit** | **Description\*** |
| 4.1 | <u>[Federal Home Loan Mortgage Corporation Debt Facility Agreement, dated February 12, 2026](a1q2610qex41.htm)</u> |
| 31.1 | <u>[Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a)](a1q2610qex311.htm)</u> |
| 31.2 | <u>[Certification of Chief Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a)](a1q2610qex312.htm)</u> |
| 32.1 | <u>[Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350](a1q2610qex321.htm)</u> |
| 32.2 | <u>[Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350](a1q2610qex322.htm)</u> |
| 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 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;\* | The SEC file number 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 is 001-34139. |

---

Freddie Mac 1Q 2026 Form 10-Q 82

------

<u>Signatures</u>

**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 | Federal Home Loan Mortgage Corporation |
| By: | /s/ Kenny M. Smith |
|  | Kenny M. Smith |
|  | Chief Executive Officer |
|  | (Principal Executive Officer) |

---

Date: April 30, 2026

---

| | |
|:---|:---|
| By: | /s/ James Whitlinger |
|  | James Whitlinger |
|  | Executive Vice President and Chief Financial Officer |
|  | (Principal Financial Officer) |

---

Date: April 30, 2026

Freddie Mac 1Q 2026 Form 10-Q 83

------

<u>Form 10-Q Index</u>

**Form 10-Q Index** 

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**Item Number** | | **Page(s)** |
| &nbsp;&nbsp;&nbsp;**PART I** | **FINANCIAL INFORMATION** | |
| &nbsp;&nbsp;&nbsp;&nbsp;Item 1. | Financial Statements | <u>[35](#ied0d197bc0174bfba8b73040a5da0088_439)</u> - <u>[77](#ied0d197bc0174bfba8b73040a5da0088_682)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | <u>[1](#ied0d197bc0174bfba8b73040a5da0088_13)</u> - <u>[34](#ied0d197bc0174bfba8b73040a5da0088_436)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Item 3. | Quantitative and Qualitative Disclosures About Market Risk | <u>[23](#ied0d197bc0174bfba8b73040a5da0088_313)</u> - <u>[24](#ied0d197bc0174bfba8b73040a5da0088_325)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Item 4. | Controls and Procedures | <u>[80](#ied0d197bc0174bfba8b73040a5da0088_706)</u> - <u>[81](#ied0d197bc0174bfba8b73040a5da0088_709)</u> |
| &nbsp;&nbsp;&nbsp;**PART II** | **OTHER INFORMATION** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Item 1. | Legal Proceedings | <u>[78](#ied0d197bc0174bfba8b73040a5da0088_688)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Item 1A. | Risk Factors | <u>[78](#ied0d197bc0174bfba8b73040a5da0088_691)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | <u>[78](#ied0d197bc0174bfba8b73040a5da0088_694)</u> - <u>[79](#ied0d197bc0174bfba8b73040a5da0088_700)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Item 5. | Other Information | <u>[79](#ied0d197bc0174bfba8b73040a5da0088_700)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Item 6. | Exhibits | <u>[79](#ied0d197bc0174bfba8b73040a5da0088_700)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Exhibit Index |  | <u>[82](#ied0d197bc0174bfba8b73040a5da0088_715)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;Signatures |  | <u>[83](#ied0d197bc0174bfba8b73040a5da0088_718)</u> |

---

Freddie Mac 1Q 2026 Form 10-Q 84

## Exhibit 4.1

**Exhibit 4.1**

**FEDERAL HOME LOAN MORTGAGE CORPORATION** 

**GLOBAL DEBT FACILITY AGREEMENT** 

**AGREEMENT**, dated as of February 12, 2026, among the Federal Home Loan Mortgage Corporation **("Freddie Mac"**) and Holders of Debt Securities (each as hereinafter defined).

Whereas:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 12, 2026, 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.

*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.

*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 12, 2026 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 book-entry 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.

*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 dated November 5, 2024 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 and the Global Agent.

*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 book-entry 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.

*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 mortgage-related 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 12, 2026 (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 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:* Freddie Mac.

*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.

*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.

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*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.

*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.

*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

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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.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (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

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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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 https://capitalmarkets.freddiemac.com/debt/redemption-release.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Variable Rate Debt Securities* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Variable Rate Debt Securities may have a Cap and/or a Floor.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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):

![sofra.jpg](sofra.jpg)

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***

<u>Benchmark Replacement</u>. 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 then-current Benchmark for all purposes relating to the notes in respect of all determinations on such date and for all determinations on all subsequent dates.

<u>Benchmark Replacement Conforming Changes</u>. 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.

<u>Decisions and Determinations</u>. 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.

<u>Certain Defined Terms</u>. 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the sum of: (a) the ISDA Fallback Rate and (b) the Benchmark Replacement Adjustment; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) if the applicable Unadjusted Benchmark Replacement is equivalent to the ISDA Fallback Rate, the ISDA Fallback Adjustment; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

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**"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):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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):

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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)";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

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successor service) under the heading "...Treasury Constant Maturities. Federal Reserve Board Release H.15...Mondays Approximately 3:45 p.m.";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is published by the Federal Reserve or the Treasury Department; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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)";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) *Zero Coupon Debt Securities* 

Zero Coupon Debt Securities shall not bear interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 mortgage-related assets, as described in the related Supplemental Agreement. Mortgage Linked Amortizing Debt Securities may bear interest at fixed or variable rates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 Book-Entry 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 Book-Entry 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 Freddie Mac in its role as 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Registrar* 

Freddie Mac in its role as 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.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *General* 

Unless otherwise provided in the applicable Supplemental Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Primary Distribution* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *Euroclear and Clearstream, Luxembourg.* Investors holding Other Registered Debt Securities through Euroclear, Clearstream, Luxembourg or such other clearing system shall follow the settlement

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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).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Secondary Market Transfers* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Payments on Registered Debt Securities* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 Freddie Mac in its role as 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

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Payment Date following the next Record Date to the Holder on such next Record Date. The principal of 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 Freddie Mac in its role as 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

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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 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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. 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

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Securities issued in global form for which they were exchanged. In the case of a transfer of a definitive Debt 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.

**ARTICLE VI** 

**Currency Conversions** 

**Section 6.01. Currency Conversions for DTC Registered Debt Securities.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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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**Section 7.05. Amendment.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

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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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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**

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION**

**PURSUANT TO SECURITIES EXCHANGE ACT RULE 13a-14(a)**

I, Kenny M. Smith, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 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: April 30, 2026

---

| |
|:---|
| /s/ Kenny M. Smith |
| Kenny M. Smith |
| Chief Executive Officer |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION**

**PURSUANT TO SECURITIES EXCHANGE ACT RULE 13a-14(a)**

I, James Whitlinger, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 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: April 30, 2026

---

| |
|:---|
| /s/ James Whitlinger |
| James Whitlinger |
| Executive Vice President and Chief Financial Officer |

---

## Exhibit 32.1

**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, 2026 of the Federal Home Loan Mortgage Corporation (the "Company"), as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Kenny M. Smith, 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: April 30, 2026

---

| |
|:---|
| /s/ Kenny M. Smith |
| Kenny M. Smith |
| Chief Executive Officer |

---

## Exhibit 32.2

**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, 2026 of the Federal Home Loan Mortgage Corporation (the "Company"), as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, James Whitlinger, 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: April 30, 2026

---

| |
|:---|
| /s/ James Whitlinger |
| James Whitlinger |
| Executive Vice President and Chief Financial Officer |

---

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