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) — Q1 2018 Earnings Presentation

14 slides from Freddie Mac's earnings presentation, May 1, 2018

  1. Slide 1: First Quarter 2018 Financial Results Supplement

    Exhibit 99.2 First Quarter 2018 Financial Results Supplement May 1, 2018

  2. Slide 2: Corporate Highlights: Financial highlights

    2© Freddie Mac Adjusted net interest income Adjusted guarantee fee income 1Q17 2Q17 3Q17 4Q17 1Q18 $1.2 $1.2 $1.1 $1.1 $1.1 $1.6 $1.7 $1.8 $1.8 $1.7 Comprehensive income (loss) Litigation settlement DTA Write-down 1Q17 2Q17 3Q17 4Q17 1Q18 $2.2 $2.0 $1.8 $2.1 $2.2$2.9 $4.7 $(5.4) -$3.3 Corporate High

  3. Slide 3: Total Portfolio Balances

    3© Freddie Mac Mortgage-related investments portfolio Other investments and cash portfolio 3/31/2017 6/30/2017 9/30/2017 12/31/2017 3/31/2018 $291 $284 $267 $253 $241 $92 $383 $82 $366 $82 $349 $89 $342 $70 $311 Single-family credit guarantee portfolio Multifamily guarantee portfolio 3/31/2017 6/30/

  4. Slide 4: Conservatorship and Regulatory Matters

    4© Freddie Mac Draw Requests from Treasury Dividend Payments to Treasury 2008-2015 2016 2017 2018 YTD Cumulative Total $71.3 $0.3 $71.6 $96.5 $5.0 $10.9 $112.4 Conservatorship and Regulatory Matters Treasury draw requests and dividend payments $ Billions DFAST7 - Additional draws needed under severe

  5. Slide 5: Interest-rate Risk Measures

    5© Freddie Mac Interest-rate Risk Measures Pre-Hedge Accounting Post-Hedge Accounting % Change 03/31/17 06/30/17 09/30/17 12/31/17 03/31/18 ($3.5) ($3.3) ($2.8) ($3.1) ($3.3) ($1.8) ($1.5) ($1.2) ($0.5) ($0.6) 50% 55% 58% 84% 83% GAAP Adverse Scenario8 (Before-Tax) $ Billions PMVS-Level9 and Average

  6. Slide 6: National home prices have surpassed the 2006 peak

    6© Freddie Mac National home prices have surpassed the 2006 peak United States (Not Seasonally Adjusted) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 168 184 Average monthly net new jobs (non-farm) National unemployment rate (as of the last month in each quarter) 1Q17 2Q17 3

  7. Slide 7: Single-family Financial Highlights and Key Metrics

    7© Freddie Mac Purchase UPB Refinance UPB 1Q17 2Q17 3Q17 4Q17 1Q18 $39 $45 $57 $57 $38 $47 $86 $28 $73 $30 $87 $41 $98 $28 $66 44 44 42 36 40 Core single-family portfolio (loans originated post-2008) Legacy and relief refinance single-family portfolio 1Q17 2Q17 3Q17 4Q17 1Q18 $1,317 $1,343 $1,377 $1

  8. Slide 8: Single-family Credit Risk Transfer – STACR / ACIS

    8© Freddie Mac Reference pool UPB at issuance Reference pool UPB outstanding 2014 2015 2016 2017 YTD 2018* $205 $385 $595 $854 $942 $193 $329 $454 $636 $698 12% 19% 26% 35% 38% Single-family Credit Risk Transfer – STACR / ACIS Total Single-family credit guarantee portfolio with transferred credit ri

  9. Slide 9: Multifamily Financial Highlights and Key Metrics

    9© Freddie Mac Multifamily acquisitions of units by area median income (% of eligible units acquired) ≤100% AMI >100% AMI 2014 2015 2016 2017 YTD 2018* 90% 88% 86% 83% 83% 10% 12% 14% 17% 17% Guarantee Portfolio Mortgage-related Securities Unsecuritized Loans 12/31/14 12/31/15 12/31/16 12/31/17 3/31

  10. Slide 10: Multifamily Key Metrics, continued

    10© Freddie Mac Multifamily securitization volume12 $ Billions K Certificate UPB SB Certificate UPB 2009-2013 2014 2015 2016 2017 YTD 2018* $71.5 $21.3 $35.6 $47.3 $56.7 $14.8 $1.8 $37.4 $3.9 $51.2 $5.5 $62.2 $1.4 $16.2 Purchase Volume Subject to Cap Purchase Volume not Subject to Cap 2014 2015 2016

  11. Slide 11: Capital Markets Financial Highlights and Key Metrics

    11© Freddie Mac Mortgage Investments Portfolio Other Investments and Cash Portfolio 1Q17 2Q17 3Q17 4Q17 1Q18 $225 $222 $207 $196 $190 $92 $317 $82 $304 $82 $289 $89 $285 $70 $260 Liquid Securitization Pipeline Less Liquid 1Q17 2Q17 3Q17 4Q17 1Q18 $141 $137 $129 $130 $126 $8 $12 $13 $10 $11 $76 $73 $

  12. Slide 12: Housing Market Support

    12© Freddie Mac Number of single-family loan workouts15 In Thousands Housing Market Support Loan modifications Repayment plans Forbearance agreements Short sales and deed-in-lieu of foreclosure transactions 2014 2015 2016 2017 YTD 2018* 67 54 43 45 14 25 21 12 10 3 9 6 5 15 8 19 120 13 94 9 69 5 75

  13. Slide 13: Endnotes

    13© Freddie Mac 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 March 31, 2018. 2 Based on unpaid principal balances (UPB) of loans and securities

  14. Slide 14: Safe Harbor Statements

    14© Freddie Mac 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 agen

Federal Home Loan Mortgage Corp (Fmcc, Fmccg, Fmcci, Fmccj, Fmccl, Fmccn, Fmcco, Fmccs, Fmcct, Fmcki, Fmckl, Fmckn, Frejn, Frejo) — Q1 2018 Earnings Presentation on 6ix