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 2010 Earnings Presentation
25 slides from Freddie Mac's earnings presentation, Aug 9, 2010
Slide 1: Second Quarter 2010 Financial Results Supplement
Second Quarter 2010 Financial Results Supplement August 9, 2010
Slide 2: Table of contents
Table of contents Freddie B Mac ‘Quarterly GAAP Financial Results ‘otal Equity and Purchas Agreement with Treasury Loan Loss Reserves Purchase Agreement Portfolio Limits ‘Supporting the Housing Market Freddie Mac Refinance Activity ome Affordable Moditeation Program Upda “otal Sin Family Foreclosure
Slide 3: Quarterly GAAP financial results
Quarterly GAAP financial results Line 1: Net interest income in 2Q 2010 continued to benefit from lower funding costs due to lower interest rates. Line 2: Provision for credit losses in 2Q 2010 was mostly driven by a lower single-family delinquency rate and a slower growth in non-performing assets d
Slide 4: Total equity and Purchase Agreement with Treasury
Total equity and Purchase Agreement with Treasury 1 As a result of the company's adoption of accounting guidance related to other-than-temporary impairments on April 1, 2009, the company recognized a cumulative-effect adjustment of $15.0 billion to its opening balance of retained earnings (accumulat
Slide 5: Loan loss reserves
Loan loss reserves 1 1 3 Includes allowance for loan losses and reserve for guarantee losses. Beginning January 1, 2010, the company's reserve for guarantee losses is included in other liabilities on the consolidated balance sheets as a result of the company's adoption of the new accounting standard
Slide 6: Purchase Agreement portfolio limits
Purchase Agreement portfolio limits1 Indebtedness 1,3 ($ Billions) Mortgage Assets 1,2 ($ Billions) 1 The company's Purchase Agreement with Treasury limits the amount of mortgage assets the company can own and indebtedness it can incur. Under the Purchase Agreement, mortgage assets and indebtedness
Slide 7: Supporting the housing market
Provided much needed liquidity and helped keep mortgage rates low during the second quarter of 2010 Purchased or guaranteed approximately 1 out of every 4 home loans originated1 Purchased or guaranteed approximately $82 billion in unpaid principal balances of mortgages and mortgage-related securitie
Slide 8: Freddie Mac refinance activity
Freddie Mac helped to refinance approximately 270,000 borrowers during 2Q 2010 Estimated total annual borrower savings of $4921 million Estimated annual savings of over $1,8001 per refinanced borrower Freddie Mac refinance activity Cumulative refinance activity through June 30, 2010 Relief Refi (CLT
Slide 9: HAMP trial period and completed modifications
Active HAMP trial period loans Completed HAMP loan modifications As of June 30, 2010, Freddie Mac had approximately 143,000 trial and permanent HAMP modifications still in effect Estimated annual borrower savings of nearly $8,7003 per modified loan Trial period plans were cancelled for 90,000 borrow
Slide 10: Total single-family foreclosure alternatives
Total Single-family foreclosure alternatives 1 Based on the number of modifications offered by the company's servicers and accepted, or acknowledged by the company and the borrower during the period. Includes completed loan modifications under HAMP; however, the number of such completions differs fr
Slide 11: Credit Supplement
Freddi Bvisc Credit Supplement
Slide 12: National home prices cumulative decline of 17% since June 2006
National home prices have experienced a cumulative decline of 17% since June 20061 1 National home prices use the internal Freddie Mac index, which is value-weighted based on Freddie Mac's single-family credit guarantee portfolio. The U.S. index is a monthly series; quarterly growth rates are calcul
Slide 13: State-by-state home prices
2.8 -4.6 -0.8 - -8.0 6.3 - -0.3 RI 8.5 CT -0.5 DC 7.3 - -1.0 - -2.4 - -5.3 2.4 2.1 - -0.2 - -1.5 1.9 +0.0 -1.5 0.6 +0.0 - -3.9 3.7 - -0.2 -1.0 -3.9 - -2.4 - -4.9 3.4 1.6 -1.9 - -2.3 - -4.3 - -2.9 -0.0 -0.9 3.1 - -4.3 3.4 -3.0 1.0 - -0.5 3.3 - -4.3 -0.3 - -3.6 - -1.5 - -2.7 -1.2 2.8 >= 0% - -2 to 0%
Slide 14: Mortgage market and Freddie Mac delinquency rates
Mortgage market and Freddie Mac delinquency rates Single-family delinquency rates as of March 31, 2010 1 Source: National Delinquency Survey from the Mortgage Bankers Association. Categories represent first lien single-family loans. Data is not yet available for the second quarter of 2010. 2 The tot
Slide 15: Single-family guarantee segment portfolio quality by book year
Single-family guarantee segment portfolio quality by book year 1 See "NOTE 16: SEGMENT REPORTING" in the company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2010 for further information regarding our segments. 2 Book year indicates year of loan origination. 3 Based on the unpaid p
Slide 16: Single-family credit statistics
Single-family credit statistics 1 REO operations income for 2Q 2010 was primarily driven by the recovery of prior period write-downs due to improved REO fair values during the quarter. 2 Calculated as annualized credit losses divided by the average total single-family credit guarantee portfolio. 3 C
Slide 17: Single-family credit losses by book year and state
Single-family credit losses by book year1 and state 1 Book year indicates year of loan origination. 2 Based on the unpaid principal balance of the single-family credit guarantee portfolio. 3 Consist of the aggregate amount of charge-offs, net of recoveries, and REO operations income (expense) in eac
Slide 18: 2Q 2010 credit losses and REO by region and state
Single-family 2Q 2010 credit losses & REO by region and state 1 Based on the unpaid principal balance of the single-family credit guarantee portfolio. 2 Based on mortgages three monthly payments or more past due or in foreclosure. UPB amounts exclude certain Structured Transactions for which loan ch
Slide 19: Credit guarantee portfolio characteristics
Single-family credit guarantee portfolio characteristics1 1 Portfolio characteristics are based on the unpaid principal balance of the single-family credit guarantee portfolio excluding certain Structured Transactions for which the loan characteristics data is not available. 2 Loans identified as Al
Slide 20: Credit guarantee portfolio characteristics, continued
Single-family credit guarantee portfolio characteristics, continued1 1 Portfolio characteristics are based on the unpaid principal balance of the single-family credit guarantee portfolio excluding certain Structured Transactions for which the loan characteristics data is not available. 2 Loans ident
Slide 21: Credit profile by book year and product feature
Single-family credit profile by book year and product feature1 1 Portfolio characteristics are based on the unpaid principal balance of the single-family credit guarantee portfolio excluding certain Structured Transactions for which the loan characteristics data is not available. 2 Indicates year of
Slide 22: Credit guarantee portfolio composition by product
Single-family credit guarantee portfolio composition by product1 1 Based on the unpaid principal balance of the single-family credit guarantee portfolio excluding certain Structured Transactions for which the loan characteristics data is not available. 2 Based on the number of mortgages three monthl
Slide 23: Cumulative foreclosure transfer and short sale rates by book year
Single-family cumulative foreclosure transfer and short sale rates1 by book year 1 Rates are calculated for each year of origination as the number of loans that have proceeded to foreclosure transfer or short sale divided by the number of loans in the company's single-family credit guarantee portfol
Slide 24: Multifamily credit profile by loan attributes
Multifamily credit profile by loan attributes1 1 Based on unpaid principal balance (UPB) of the multifamily mortgage portfolio which excludes securities and guarantees backed by HFA bonds and multifamily Structured Transactions. 2 Based on the UPB of mortgages two monthly payments or more past due o
Slide 25: 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