Freddie Mac · OTC:FMCC
Freddie Mac — Federal Home Loan Mortgage Corp (Fmcc, Fmccg, Fmcci, Fmccj, Fmccl, Fmccn, Fmcco, Fmccs, Fmcct, Fmcki, Fmckl, Fmckn, Frejn, Frejo) — Q2 2020 Earnings Presentation
16 slides from Freddie Mac's earnings presentation, Jul 30, 2020
Slide 1: Second Quarter 2020 Financial Results Supplement
Exhibit 99.2 Second Quarter 2020 Financial Results Supplement July 30, 2020
Slide 2: Financial Highlights
Financial Highlights Comprehensive Income $ Billions ▪ Comprehensive income of $1.9 billion, up $1.3 billion from the prior quarter, driven by: $2.4 ▪ Higher investment gains of $1.2 billion, after- tax, primarily due to higher quoted spreads in $1.8 $1.8 $1.9 the Multifamily business resulting in h
Slide 3: Total Portfolio Balances
Total Portfolio Balances 2 Total guarantee portfolio Portfolio balance highlights $ Billions 7% YoY increase ▪ Total guarantee portfolio: $2,342 $2,265 $2,295 $2,184 $2,221 • Single-Family - grew $126 billion, or 7%, year-over- $275 $281 $249 $260 $271 year. • Multifamily - grew $32 billion, or 13%,
Slide 4: Percentage of Loans in Forbearance
Percentage of Loans in Forbearance Single-Family(7) Multifamily(8) 3.8% 2.4% —% —% 12/31/19 06/30/20 12/31/19 06/30/20 Percentage of loans in the single-family guarantee portfolio that were delinquent and in forbearance Percentage of loans in the multifamily mortgage portfolio that were in forbearan
Slide 5: Conservatorship Matters and Total Equity
Conservatorship Matters and Total Equity Treasury draws and dividend payments(9) Total equity / Net worth $ Billions $ Billions $119.7 $112.4 $71.3 $71.6 $11.4 $9.1 $4.5 $0.3 $4.1 $3.1 2008-2017 2018 2019 2020 Cumulative $(0.3) Total Draws from Treasury Dividend payments to Treasury 2017 2018 2019 Y
Slide 6: Key Economic Indicators
Key Economic Indicators National house prices increased by an average of 3.9% Quarterly ending interest rates over the past year 3.73% 3.74% 3.64% 3.50% 3.13% 1.96% 1.89% 1.57% 0.72% 0.64% 06/30/19 09/30/19 12/31/19 03/31/20 06/30/20 30-year mortgage rate, based on Primary Mortgage Market Survey (PM
Slide 7: Single-Family Guarantee Financial Highlights and Key Metrics
Single-Family Guarantee Financial Highlights and Key Metrics Single-Family Guarantee Segment Earnings New business activity $ Billions $ Millions $1,420 Guarantee fees charged on new acquisitions (bps)10 $1,250 48 49 48 44 45 $955 $232 $753 $588 $147 $134 $138 $172 $102 $58 $84 $37 $83 $65 $76 $63 $
Slide 8: Single-Family Guarantee Loan Purchase Credit Characteristics
Single-Family Guarantee Loan Purchase Credit Characteristics Weighted average original loan-to-value ratio (OLTV) Weighted average original credit score 750 752 752 752 758 77% 77% 75% 74% 72% 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 New business activity with debt-to-income ratio > 45 % Lo
Slide 9: Single-Family Guarantee Credit Risk Transfer (CRT) – STACR / ACIS
Single-Family Guarantee Credit Risk Transfer (CRT) – STACR / ACIS Total single-family credit guarantee portfolio with Cumulative single-family transferred credit risk transferred credit risk based on outstanding balance at period end $ Billions $ Billions Outstanding reference pool UPB as a percenta
Slide 10: Multifamily Financial Highlights and Key Metrics
Multifamily Financial Highlights and Key Metrics Multifamily comprehensive income (loss) Multifamily acquisitions of units by area median $ Millions income (AMI) (% of eligible units acquired) 6% 9% 7% 6% 4% $1,063 $591 $502 94% 91% 93% 94% 96% $440 2016 2017 2018 2019 YTD 2020* $(174) 2Q19 3Q19 4Q1
Slide 11: Multifamily Key Metrics, continued
Multifamily Key Metrics, continued New business activity Multifamily securitization activity11,12 $ Billions $ Billions $78.4 $78.0 $75.4 $73.2 $0.5 $0.5 $72.8 $67.5 $6.5 $7.5 $6.8 $56.8 $52.1 $2.2 $77.9 $73.2 $77.5 $30.2 $66.3 $67.9 $60.7 $56.8 $0.1 $24.7 $49.9 $3.4 $30.1 $21.3 2016 2017 2018 2019
Slide 12: Multifamily Portfolio Metrics
Multifamily Portfolio Metrics Total portfolio 51% increase Total portfolio loan count $ Billions since 2016 In Thousands $309 $321$322 $280 $33 $36 $249 $36 $213 $6 $5 $39 $7 $42 27 28 $7 24 $13 $271 $281 21 $203 $237 $158 17 (74%) (82%) (85%) (88%) (88%) 12/31/16 12/31/17 12/31/18 12/31/19 06/30/20
Slide 13: Capital Markets Financial Highlights and Key Metrics
Capital Markets Financial Highlights and Key Metrics Capital Markets comprehensive income Capital Markets investments portfolio $ Millions $ Billions 18% YoY increase $291 $299 $254 $258 $269$268 $539 $120 $152 $433 $81 $87 $100 $210 $173 $124 $171 $168 $171 $147 $10 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q
Slide 14: Housing Market Support
Housing Market Support Number of families Freddie Mac helped Number of single-family loan workouts14 to own or rent a home13 In Thousands In Thousands 2,578 2,311 2,192 122 782 663 442 1,666 90 3 75 16 884 987 5 828 918 105 1,044 15 11 257 10 47 2 7 9 445 435 60 26 866 41 820 809 45 4 29 5 342 313 1
Slide 15: Endnotes
Endnotes 1 For additional information regarding Freddie Mac’s non-GAAP financial measures and reconciliations to the comparable amounts under GAAP, see the company’s Press Release for the quarter ended June 30, 2020. 2 Based on unpaid principal balances (UPB) of loans and securities. Excludes mortga
Slide 16: Safe Harbor Statements
Safe Harbor Statements Freddie Mac obligations Freddie Mac’s securities are obligations of Freddie Mac only. The securities, including any interest or return of discount on the securities, are not guaranteed by and are not debts or obligations of the United States or any federal agency or instrument