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 2019 Earnings Presentation
15 slides from Freddie Mac's earnings presentation, Jul 31, 2019
Slide 1: Second Quarter 2019 Financial Results Supplement
Exhibit 99.2 Second Quarter 2019 Financial Results Supplement July 31, 2019
Slide 2: Financial Highlights
Financial Highlights Comprehensive Income (Loss) $ Billions ▪ Solid business revenues, strong $2.6 credit quality, low market-related $2.4 $0.2 volatility, and continued guarantee $1.7 $1.8 portfolio growth delivered $1.8 billion $1.5 of comprehensive income, a slight $2.2 increase from the prior qu
Slide 3: Total Portfolio Balances
Total Portfolio Balances 2 Total guarantee portfolio Portfolio balance highlights $ Billions +5% YoY increase ▪ Total guarantee portfolio: • Single-family - grew $80 billion, or 4%, year-over- $2,133 $2,157 $2,184 $2,075 $2,101 year. $243 $249 $220 $226 $237 • Multifamily - grew $29 billion, or 13%,
Slide 4: Conservatorship and Regulatory Matters
Conservatorship and Regulatory Matters Treasury draws and dividend payments DFAST7 - Additional draws needed under $ Billions severely adverse scenario $ Billions $140.2 $119.7 $101.5 6 $71.3 $71.6 $53 $43 $35 $26 $21 $22 $10.9 $0.3 $4.1 $3.1 2008-2016 2017 2018 YTD 2019* Cumulative 12/31/2015 12/31
Slide 5: Interest-Rate Risk Measures
Interest-Rate Risk Measures GAAP Adverse Scenario8 (Before-Tax) PVS-Level9 and Average Duration Gap10 $ Billions $275 ($0.2) ($0.2) ($0.5) ($0.5) $(0.8) $23 $18 $11 $15 ($2.1) 2Q18 3Q18 4Q18 1Q19 2Q19 ($2.7) ($3.4) ($3.3) PVS-L (50 bps) ($ Millions) $(4.6) 93% 86% 89% 85% 82% 2.2 0 0 0 0 2Q18 3Q18 4
Slide 6: Key Economic Indicators
Key Economic Indicators National home prices increased by an average of 3.7% Quarterly ending interest rates over the past year 4.55% 4.72% 4.55% 4.06% 3.73% 3.11% 2.93% 2.72% 2.41% 1.96% 6/30/2018 9/30/2018 12/31/2018 3/31/2019 6/30/2019 30-year PMMS 10-year LIBOR Unemployment rate and job creation
Slide 7: 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 $1,183 $1,024 Guarantee fees charged on new acquisitions (bps)11 $915 $955 41 41 40 40 44 $740 $102 $84 $81 $77 $70 $37 $26 $19 $22 $24 $58 $62 $55 $46 $6
Slide 8: 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 745 746 747 747 750 78% 79% 77% 77% 77% 746 746 747 747 750 78% 79% 77% 77% 77% 712 711 67% 66% 65% 62% 64% 707 707 706 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4
Slide 9: 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
Slide 10: 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% 6% $526 $505 $395 $440 94% 94% 91% 93% 94% $(199) 2Q18 3Q18 4Q18 1Q19 2Q19 2015 2016 2017 2018 YTD 20
Slide 11: Multifamily Key Metrics, Continued
Multifamily Key Metrics, Continued New business activity Multifamily risk transfer (RT) activity $ Billions $ Billions Cap = $36.5 Cap = $35.0 $73.4 $69.1 $7.1 $77.5 $8.4 $73.2 Cap = $30.0 $54.1 $4.2 $56.8 $41.2 $47.3 $39.5 $44.9 $20.3 $66.3 $31.4 $17.3 $31.0 $60.7 $2.7 $49.9 $41.2 $17.1 $36.5 $30.0
Slide 12: Capital Markets Financial Highlights and Key Metrics
Capital Markets Financial Highlights and Key Metrics Capital Markets comprehensive income Capital Markets investments portfolio $ Billions $ Billions -3% YoY decrease $1.0 $261 $262$263 $254 $0.9 $229 $247 $73 $83 $76 $81 $0.6 $62 $0.5 $0.4 $188 $180 $167 $171 $173 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18
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 90 3 884 75 16 828 69 5 745 1,045 9 15 11 257 5 12 10 445 820 866 739 60 26 343 45 41 43 4 2016 2017 2018 YTD 2019* 17
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 June 30, 2019. 2 Based on unpaid principal balances (UPB) of loans and securities. Excludes mortga
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