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) — Q4 2020 Earnings Presentation
16 slides from Freddie Mac's earnings presentation, Feb 11, 2021
Slide 1: Fourth Quarter 2020 Financial Results Supplement
Exhibit 99.2 Fourth Quarter 2020 Financial Results Supplement February 11, 2021
Slide 2: Financial Highlights
2© Freddie Mac Financial Highlights $2.6 $0.2 $1.8 $2.5 $2.9 $2.4 $0.6 $1.9 $2.4 $2.5 Net income Comprehensive income 4Q19 1Q20 2Q20 3Q20 4Q20 $0.7 $0.8 $0.4 $0.2 $0.1 $2.4 $2.5 $3.0 $3.0 $3.3 Adjusted net interest income Adjusted guarantee fee income 4Q19 1Q20 2Q20 3Q20 4Q20 Adjusted Net Interest I
Slide 3: Total Portfolio Balances
3© Freddie Mac $316 $334 $349 $345 $345 $213 $211 $194 $198 $182 $103 $123 $155 $147 $163 Mortgage-related investments portfolio Other investments portfolio 12/31/19 03/31/20 06/30/20 09/30/20 12/31/20 $2,265 $2,295 $2,342 $2,476 $2,638 $1,994 $2,020 $2,061 $2,179 $2,326 $271 $275 $281 $297 $312 Sin
Slide 4: Percentage of Loans in Forbearance
4© Freddie Mac Multifamily8Single-Family7 Percentage of Loans in Forbearance 0.10% 1.91% 2.01% Forbearance Period Repayment Period Total 0.37% 0.23% 0.18% 0.63% 1.29% 2.70% Current One Month Two Months Three Months to Six Months Greater Than Six Months Total Percentage of loans in the single-family
Slide 5: Conservatorship Matters
5© Freddie Mac Conservatorship Matters • The January 2021 Letter Agreement increased the Capital Reserve Amount used for purposes of calculating the dividend requirement on the senior preferred stock from $20 billion to the amount of adjusted total capital necessary to meet the capital requirements
Slide 6: Key Economic Indicators
6© Freddie Mac 210,000 (303,000) (4,427,000) 1,322,000 283,000 3.6% 4.4% 11.1% 7.8% 6.7% Average monthly net new jobs (non-farm) National unemployment rate (as of the last month in each quarter) 4Q19 1Q20 2Q20 3Q20 4Q20 Key Economic Indicators National home prices increased by an average of 11.6% ov
Slide 7: Single-Family Guarantee Financial Highlights and Key Metrics
7© Freddie Mac 0.26% 0.26% 1.95% 2.44% 2.04% 1.84% 1.79% 4.44% 5.47% 5.30% 0.63% 0.60% 2.48% 3.04% 2.64% Core single-family portfolio (loans originated post-2008) Legacy and relief refinance single-family portfolio Total 4Q19 1Q20 2Q20 3Q20 4Q20 $147 $138 $232 $337 $384 $63 $55 $60 $101 $109 $84 $83
Slide 8: Single-Family Guarantee Loan Purchase Credit Characteristics
8© Freddie Mac 752 752 758 761 761 4Q19 1Q20 2Q20 3Q20 4Q20 13% 14% 10% 10% 10% 4Q19 1Q20 2Q20 3Q20 4Q20 New business activity with debt-to-income ratio > 45% Weighted average original loan-to-value ratio (OLTV) Weighted average original credit score 75% 74% 72% 71% 70% 4Q19 1Q20 2Q20 3Q20 4Q20 Sing
Slide 9: Single-Family Guarantee Credit Risk Transfer – STACR / ACIS
9© Freddie Mac Total Single-Family credit guarantee portfolio with transferred credit risk $ Billions $598 $858 $1,144 $1,376 $1,859 $457 $648 $838 $906 $959 26% 35% 44% 45% 41% Reference pool UPB at issuance Reference pool UPB outstanding 2016 2017 2018 2019 2020 Outstanding reference pool UPB as a
Slide 10: Multifamily Financial Highlights and Key Metrics
10© Freddie Mac Multifamily acquisitions of units by area median income (AMI) (% of eligible units acquired) 94% 91% 93% 94% 96% 6% 9% 7% 6% 4% ≤120% AMI >120% AMI 2016 2017 2018 2019 2020 69% 69% 69% 66% 70% 4Q19 1Q20 2Q20 3Q20 4Q20 1.32 1.42 1.36 1.42 1.38 4Q19 1Q20 2Q20 3Q20 4Q20 Weighted average
Slide 11: Multifamily Key Metrics, continued
11© Freddie Mac Multifamily securitization activity11,12 $ Billions $52.1 $67.5 $72.8 $75.4 $75.0 $49.9 $60.7 $66.3 $67.9 $65.7 $2.2 $6.8 $6.5 $7.5 $9.3 Primary securitization products Other securitization products 2016 2017 2018 2019 2020 $56.8 $73.2 $78.0 $78.4 $83.0 $56.8 $73.2 $77.5 $77.9 $82.5
Slide 12: Multifamily Portfolio Metrics
12© Freddie Mac Freddie Mac (60+ day) FDIC insured institutions (90+ day) MF CMBS market (60+ day) ACLI investment bulletin (60+ day) 4Q16 4Q17 4Q18 4Q19 4Q20 $213 $249 $280 $353 $158 $203 $237 $271 $312 $13 $7 $7 $6 $4 $42 $39 $36 $33 $36 Guarantee portfolio Mortgage-related securities Unsecuritize
Slide 13: Capital Markets Financial Highlights and Key Metrics
13© Freddie Mac $168 $170 $146 $156 $135 $119 $116 $84 $85 $64 $19 $26 $35 $49 $51 $30 $28 $27 $22 $20 Liquid Securitization pipeline Less liquid 4Q19 1Q20 2Q20 3Q20 4Q20 Capital Markets Financial Highlights and Key Metrics Note: Totals may not add due to rounding. $268 $291 $299 $300 $295 $168 $171
Slide 14: Housing Market Support
14© Freddie Mac Number of families Freddie Mac helped to own or rent a home13 In Thousands 75 90 47 426 15 16 7 228 10 11 9 12 9 4 169 33 51 25 19 5 3 2 1 Forbearance agreements Repayment plans Payment deferrals Loan modifications Short sales and deed-in-lieu of foreclosure transactions 2017 2018 20
Slide 15: Endnotes
15© 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 December 31, 2020. 2 Based on unpaid principal balances (UPB) of loans and securit
Slide 16: Safe Harbor Statements
16© 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