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) — Q3 2019 Earnings Presentation

15 slides from Freddie Mac's earnings presentation, Oct 30, 2019

  1. Slide 1: Third Quarter 2019 Financial Results Supplement

    Exhibit 99.2 Third Quarter 2019 Financial Results Supplement October 30, 2019

  2. Slide 2: Financial Highlights

    Financial Highlights Comprehensive Income $ Billions ▪ Comprehensive income of $1.8 billion, $2.6 unchanged from the prior quarter, driven by strong and consistent business performance. $1.7 $1.8 $1.8 $1.5 3Q18 4Q18 1Q19 2Q19 3Q19 Adjusted Net Interest Income ▪ Adjusted net interest income declined

  3. Slide 3: Total Portfolio Balances

    Total Portfolio Balances 2 Total guarantee portfolio Portfolio balance highlights $ Billions 6% YoY increase ▪ Total guarantee portfolio: $2,221 • Single-family - grew $86 billion, or 5%, year-over- $2,133 $2,157 $2,184 $2,101 year. $243 $249 $260 $226 $237 • Multifamily - grew $34 billion, or 15%,

  4. Slide 4: Conservatorship Matters

    Conservatorship Matters Treasury draws and dividend payments $ Billions $119.7 $101.5 6 $71.3 $71.6 $10.9 $0.3 $4.1 $3.1 2008-2016 2017 2018 YTD 2019* Cumulative Total Draws from Treasury Dividend payments to Treasury • Pursuant to the September 2019 Letter Agreement, the company will not have a div

  5. Slide 5: Key Economic Indicators

    Key Economic Indicators National home prices increased by an average of 3.4% Quarterly ending interest rates over the past year 4.72% 4.55% 4.06% 3.73% 3.64% 3.11% 2.72% 2.41% 1.96% 1.57% 9/30/2018 12/31/2018 3/31/2019 6/30/2019 9/30/2019 30-year Primary Mortgage Market Survey (PMMS) 10-year LIBOR U

  6. Slide 6: Single-Family Guarantee Financial Highlights and Key Metrics

    Single-Family Guarantee Financial Highlights and Key Metrics Single-Family Guarantee Segment Earnings New business activity $ Millions $ Billions Guarantee fees charged on new acquisitions (bps)7 $1,183 $1,250 41 44 45 $1,024 40 40 $955 $134 $740 $102 $81 58 $77 $70 $37 $19 $22 $24 $76 $62 $55 $46 $

  7. Slide 7: Single-Family Guarantee Loan Purchase Credit Characteristics

    Single-Family Guarantee Loan Purchase Credit Characteristics Weighted average original loan-to-value ratio (OLTV) Weighted average credit score 746 747 747 750 752 79% 77% 77% 77% 77% 3Q18 4Q18 1Q19 2Q19 3Q19 3Q18 4Q18 1Q19 2Q19 3Q19 New business activity with debt-to-income ratio > 45 % Loan purpos

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

    Single-Family Guarantee Credit Risk Transfer – 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 percentage of

  9. Slide 9: 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 (% of eligible units acquired) 6% 6% 9% 7% 5% $591 $505 $395 $440 94% 94% 91% 93% 95% $(199) 3Q18 4Q18 1Q19 2Q19 3Q19 2015 2016 2017 2018 YTD 20

  10. Slide 10: Multifamily Key Metrics, Continued

    Multifamily Key Metrics, Continued New business activity Multifamily risk transfer (RT) activity8 $ Billions $ Billions Cap = $36.5 Cap = $35.0 $77.5 $73.2 $73.4 Cap = $30.0 $69.1 $7.1 $60.4 $8.4 $56.8 $54.1 $54.4 $39.5 $44.9 $47.3 $4.2 $7.9 $20.3 $41.2 $36.0 $17.3 $66.3 $60.7 $49.9 $46.5 $36.5 $41.

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

    Capital Markets Financial Highlights and Key Metrics Capital Markets comprehensive income Capital Markets investments portfolio $ Millions $ Billions $873 -2% YoY decrease $648 $262$263 $254 $258 $229 $247 $534 $83 $433 $62 $76 $81 $87 $180 $167 $171 $173 $171 $10 3Q18 4Q18 1Q19 2Q19 3Q19 3Q18 4Q18

  12. Slide 12: Interest-Rate Risk Measures

    Interest-Rate Risk Measures GAAP Adverse Scenario9 (Before-Tax) PVS-Level10 and Average Duration Gap11 $ Billions $275 ($0.2) ($0.2) $(0.1) ($0.5) $54 $(0.8) $18 $11 $15 ($2.1) 3Q18 4Q18 1Q19 2Q19 3Q19 ($2.7) ($3.3) $(3.5) PVS-L (50 bps) ($ Millions) $(4.6) 97% 93% 89% 85% 82% 2.2 0 0 0 0.5 3Q18 4Q1

  13. Slide 13: Housing Market Support

    Housing Market Support Number of families Freddie Mac helped Number of single-family loan workouts13 to own or rent a home12 In Thousands In Thousands 2,421 2,311 2,192 937 663 442 1,855 90 3 473 75 16 69 5 11 884 9 15 828 5 745 744 12 10 36 1 60 6 45 6 820 866 43 739 638 23 2016 2017 2018 YTD 2019*

  14. Slide 14: 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 September 30, 2019. 2 Based on unpaid principal balances (UPB) of loans and securities. Excludes m

  15. Slide 15: 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

Federal Home Loan Mortgage Corp (Fmcc, Fmccg, Fmcci, Fmccj, Fmccl, Fmccn, Fmcco, Fmccs, Fmcct, Fmcki, Fmckl, Fmckn, Frejn, Frejo) — Q3 2019 Earnings Presentation on 6ix