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 2013 Earnings Presentation
39 slides from Freddie Mac's earnings presentation, May 8, 2013
Slide 1: First Quarter 2013 Financial Results Supplement
Exhibit 99.3 First Quarter 2013 Financial Results Supplement May 8, 2013
Slide 2: Table of contents
PR Freddie Table of contents Mac Shes 5 Unrentes 3- Quarterly Net income and Comprehensive Income 21- National Home Prices 4- Comprehensive Income (Loss) 22- State-by-State Home Prices: June 2006 to March 2013 §- Senior Preferred Stock Purchase Agreement with Treasury 23 - State-by-State Home Prices
Slide 3: Quarterly Net Income and Comprehensive Income
3 Quarterly impairment mortgage-related resolution impact of spread ofnet expense taxincome matters tightening securities. included and withcomprehensive on Line the the13: impact Internal fairIncome value ofRevenue income implementing of taxthe benefit company’s Service. Line decreased 5:aNet third
Slide 4: Comprehensive Income (Loss)
4 Comprehensive portion of derivatives income previously (loss) 1designated 1 Consistsas ofcash the after-tax flow hedges; changes andin: (c)(a) defined the unrealized benefit plans. gainsAand B Closses = A +onB available-for-sale securities; (b) the effective
Slide 5: Senior Preferred Stock Purchase Agreement with Treasury
5 Senior 2013. entering for million on Agreement cumulative net first 1worth to Dividend quarter conservatorship Preferred eliminate is draws of $140.5 2013. $10.0 payments of Stock first $71.3 billion. Received billion quarter in Purchase billion September do Any at not March cumulative 2012 future
Slide 6: Treasury Draw Requests and Dividend Payments
6 Dividend amounts subsequent Treasury of payment information. 10% per represent beginning during year quarter Payment $ Billions the onthe (e.g., the in periods tothe total liquidation 3Treasury $19 2first 1draws presented. 1million quarter Draw requested preference draw of Through Request 2013. re
Slide 7: Total Equity (Deficit) and Senior Preferred Stock Activity
7 Total equity description billion. of (deficit) the company’s and Senior dividend Preferred obligation Stocktoactivity Treasury. 1 See 2 Includes the company’s the initial Quarterly liquidation Report preference on Formof10-Q Freddie for the Mac’s quarter senior ended preferred Marchstock 31, 2013
Slide 8: Loan Loss Reserves
8 Loan lossconsolidated company’s reserves 1 1 1statements Includes amounts of comprehensive related to income. certain loans 2 Consists purchased of theunder allowance financial for guarantees loan losses and and reflected the reserve within for guarantee other expenses losses.on 2 the
Slide 9: Deferred Tax Asset Valuation Allowance
9 Deferred company’s hold is DTAs. limited recent the position related for until more 2013 company available-for-sale losses periods, The to to, likely for Its conservatorship the tax taxable company can the access currently than following: asset certain past be recovered to income. not valuation th
Slide 10: Total Accumulated Other Comprehensive Income (Loss)
10 Total accumulated company’s consolidated other balance comprehensive sheets. income (loss)1 1 Total other comprehensive income (loss) represents the change in Total AOCI, net of taxes, on the
Slide 11: Real Estate Owned
11 Real Property March VT, LA, single-family alternatives, percent number region supervision VA, MO, require 31, of estate of WV); Inventory NE, our 2013. states of which REO NM, owned1 REO aSoutheast judicial court) with 2 Region result 1acquisitions OK, property Includes longer Property are TX, fo
Slide 12: Market Liquidity Provided
12 Market Family (purchase Freddie company’s conform (includes Trillion and 6,660 Mac with HARP) or liquidity single-family Multifamily) refinance mortgage-related the 1,613 current Purchase provided 1,321 mortgage) and $period Billions borrowers Number multifamily securities securities. presentatio
Slide 13: Single-Family Refinance Activity
13refinance period, company purchased Home to LTVSingle-family ratios Affordable including has more above their counted than refinance mortgages those 80%; Refinance one them associated however, refinance activity1 as without Program oneFreddie with borrower loan 1obtaining (HARP). Consists other re
Slide 14: Single-Family Loan Workouts
14 Repayment Home also subsequently beRetention included lose plans within Actions their 14home another Loan 1 Foreclosure through modifications category foreclosure Alternatives in the Forbearance same or 1aperiod. 133 short agreements 275 sale For 40or the 208 deed-in-lieu periods Short 41 45sales
Slide 15: Single-Family Loan Modifications
15 non-interest principal programs. permanent as No change forbearance Excludes or effective, inbearing terms those 15Term and such Single-family loan non-amortizing. as extension modification loans inReduction loan a modification Single-family modifications activities of contractual for trial which
Slide 16: Performance of Single-Family Modified Loans
16 the percentage periods. agreement on performing, Quarterly prior 2 Loan has ofmodification) the Percentages loans been previous modifications that accepted are modification of the current Modified by rates arethe recognized reflect and company. Single-Family would performing the be as status For
Slide 17: Repurchase Requests
17 aThe $3.0 less reimbursement experience experienced total UPB requests the as Repurchase request. than change billion amount ofUPB the associated related theand loans in In as requests by unpaid ofUPB addition, of of the outstanding repurchase toDecember associated the $1.4 fact company with due
Slide 18: Administrative Expenses
18 Administrative expenses Annual Administrative Expenses Quarterly Administrative Expenses
Slide 19: Purchase Agreement Portfolio Limits
193Mortgage-related 1, own 2010 Quarterly company’s which value indebtedness with($ and the change of are Billions) the SEC. indebtedness Report available mortgage-related company’s in on 4the Mortgage Limit this onaccounting on Form basis investments under itits unsecured can Web monthly Assets 10-
Slide 20: Credit Supplement
Bick Credit Supplement
Slide 21: National Home Prices
21 1based are different seasonally typically available. 2013.National Source: pools result on Values adjusted Freddie home Freddie of infor mortgage stronger monthly prices the Mac’s Mac. most house-price use loans single-family 21 series; recent the National and Freddie quarterly periods calculated
Slide 22: State-by-State Home Prices: June 2006 to March 2013
22 Home CT MN SC for Other conventions. the 7% -24% -18% indices U.S. SDDC Price MO TN isThe 15% of a-10% -9% Performance value-weighted home Freddie DE 6% MS prices -20% TX-5% Mac -10% By -39% may MT House average State UT have NC-12% FL-22% Price June -28% different of 2006 the Index VA 26% GAstat
Slide 23: State-by-State Home Prices: March 2012 to March 2013
23 Home DC NC WI state results, U.S.4% 11% 7% is indexes aWV as ND non-seasonally DE—4% Price they 3% 0% where are Performance NE WY 15% determined the NJ 1%-2% value FL adjusted -1%9% 1% By VT weights using GA NM State monthly 4%5% different 22% NH March are HIMA based NV series. 3%2012 pools MD 2%
Slide 24: Mortgage Market and Freddie Mac Serious Delinquency Rates
24 1the for Performance—Delinquencies” delinquency Delinquency Source: first quarter rates. National RatesThe of Mortgage 2013. Delinquency single-family 2 market See in Freddie “MD&A—RISK Survey serious and Freddie Mac’s from delinquency Form the MacMANAGEMENT—Credit Mortgage 10-K serious ratefor a
Slide 25: Single-Family Credit Guarantee Portfolio Purchases
25refinance Home to LTV84% ratios Affordable Loan above their purpose mortgages 80%; Refinance ofhowever, single-family without Program Freddie obtaining (HARP). credit Mac’s guarantee new Under relief mortgage refinance the portfolio program, insurance initiative purchases the company inalso excess
Slide 26: Credit Quality of Single-Family Credit Guarantee Portfolio Purchases
26April mortgage origination The on approximately In Credit FICO existence 2013, scores quality Freddie or the of HARP 300 ataof mortgage Mac the second tosingle-family was 850 time guarantees points. extended lien of borrower’s origination mortgage 3credit including HARP by two purchase guarantee r
Slide 27: Single-Family 1Q 2013 Credit Losses and REO by Region and State
27California portfolio issued the REO NH, Southwest Acquisitions 18% 4.61% 7 11 1,530 $2,063 10 Single-family process NJ, $705 operations Washington 3securities 804 100% 7.17% NY, at34% (AR, 1,754 of March $267 ($ PA, Total foreclosure. 35 Millions) 2CO, expense for 1Q RI, 24 Northeast 16% 62 56 31,
Slide 28: Single-Family Serious Delinquency Rates by State and Region
28 Single-family Rates MANAGEMENT—Credit Form highest (CT, ND, 3.8% OH, DE, 4.6% 10-Q Bynumber DC, SD, Region1,3 forWI); MA, the ofserious seriously quarter and ME, 1 Based Southwest MD, delinquency ended Risk—Mortgage delinquent on NH, the March (AR, NJ, number rates NY, loans CO, 31,PA, by 2013, o
Slide 29: Seriously Delinquent Loans by Judicial and Non-Judicial States
29 Aging Transactions judicial WI. All foreclosure other of single-family since statesthe process aregeographic classified seriously consist as information of: delinquent having CT, DE, a non-judicial isloans FL, notHI, available by IA, judicial foreclosure IL,toIN, and usKS, for non-judicial proces
Slide 30: Single-Family Credit Guarantee Portfolio Characteristics
30 Single-family credit but was Beginning origination. year company Based exclusive, not not ofguarantee on loan included available. and the and September The origination. number originated therefore portfolio. company in credit 2the For of 1,calculation guarantee loans are aCalculated in 2010, desc
Slide 31: Single-Family Credit Profile by Book Year and Product Feature
31 Single-family family delinquent characteristic rather origination. September during foreclosure. than credit the three but 1, all The guarantee 2010, data loans not months company credit was included the originally not company portfolio. profile ended estimates available. in the guaranteed March
Slide 32: Single-Family Foreclosure Transfer and Short Sale Rates
32 Single-family that originated characteristic have proceeded in that datacumulative year is to available. that foreclosure were foreclosure 2007 acquired transfer 2006transfer in2005 orthe short company’s 2004 andsale short 2003 andsale single-family 2008 resulted rates1 2009inby 2010 a credit boo
Slide 33: Multifamily Portfolio Composition
33 Total Multifamily (MF) Portfolio Multifamily portfolio composition
Slide 34: Multifamily New Business Volume by State
34Based AZ MD 0.5% 1 Multifamily 3.7% 2.1% ORonCA 2.6% ME the13.1% 0.0% unpaid PA 1Q 3.3% 2013 MI CO principal 1.2% 2.9% RI new0.8% business MN CT balance SC 0.1% 0.6% 0.6% volume DC (UPB) MOSD 0.2% 0.3% by 0.0% of state1 DE the MSTN multifamily 0.0% 0.2% (%) 0.7% FL AL MT TX 12.6% 1.2% 0.0% loan 13
Slide 35: Multifamily Mortgage Portfolio UPB Concentration by State
35 Multifamily 2.3% 1.9% OK 0.1% both other 0.5% Freddie guarantee CA116.3% MD 35 OR 5.2% Percentage Mac 0.8% mortgage commitments, ME CO guaranteed PA <0.1% 3.1% based 2.4% portfolio CT MI on RI mortgage-related 0.9% and 1.0% the 0.2% guaranteed UPB unpaid DC MN SC0.8% concentration 1.0% 1.3% princ
Slide 36: Multifamily Mortgage Portfolio by Attribute
36 Multifamily mortgages company’s Presents thetwo consolidated sixmonthly mortgage states with payments balance portfolio the highest sheets; or bymore attribute1 UPB or past (b) at the March due 1 year Based or31, in that on the 2013. the the process company unpaid of principal foreclosure. issued
Slide 37: Multifamily Mortgage Portfolio by Attribute, Continued
37 Multifamily the future property’s continue UPBcredit of servicing cash mortgages performance flow, mortgage its after mortgage twoportfolio for deducting monthly multifamily obligation. by payments non-mortgage attribute, loans. orcontinued1 DSCR more expenses past estimates due 1 from Based orai
Slide 38: Multifamily Market and Freddie Mac Delinquency Rates
38 0.06% Multifamily multifamily TREPP the first (CMBS quarter Multifamily delinquency Mortgage of multifamily 2013. market Credit 38 rate. 9.94% 60+ Risk The anddelinquency Freddie multifamily “1.56% in Freddie 0.19% Macrate, delinquency Mac’s delinquency 1 excluding Form rate 10-K rates REOs), atP
Slide 39: 39 Safe return than
39 Safe return than certain sale does offering with information Freddie current mortgage regulatory financial some judgments actions regulations estimates for www.FreddieMac.com/investors makes the in Freddie respect not of of to certain quarter Freddie expectations by Harbor Mac’s which circular co