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 2014 Earnings Presentation

24 slides from Freddie Mac's earnings presentation, Aug 7, 2014

  1. Slide 1: Second Quarter 2014 Financial Results Supplement

    Exhibit 99.2 Second Quarter 2014 Financial Results Supplement August 7, 2014

  2. Slide 2: Table of contents

    Table of contents Financial Results Segment Business Information 2 - Quarterly Financial Results 10 - Single-Family New Funding Volume 3 - Comprehensive Income 11 - Single-Family Guarantee Fees 4 - Treasury Draw Requests and Dividend Payments 12 - Single-Family Risk-Sharing Transactions 5 - Financia

  3. Slide 3: Quarterly financial results

    Quarterly financial results $ Billions 2Q14 vs 1Q14 2Q14 1Q14 1 Net interest income $3.5 $3.5 ($0.0) 2 (Provision) benefit for credit losses (0.1) 0.6 0.7 3 Derivative losses (2.4) (1.9) 0.4 Net impairment of available-for-sale 4 (0.4) (0.2) 0.2 securities recognized in earnings 5 Other non-interest

  4. Slide 4: Comprehensive income

    Comprehensive income $ Billions $30.4 $9.8 $7.0 $5.6 $5.7 $4.4 $4.5 $2.9 $1.9 1 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 A Net income 2 B Total other comprehensive income (loss), net of taxes C=A+B Comprehensive income 1 Net income and Comprehensive income include $23.9 billion non-cash benefit

  5. Slide 5: Treasury draw requests and dividend payments

    Treasury draw requests and dividend payments $ Billions Draws From Treasury Dividend Payments to Treasury $ Billions Cumulative $ Billions Cumulative Total Total Total Senior Preferred Stock $72.3 Dividend Payments as of 06/30/14 $86.3 Outstanding 1 Less: Initial Liquidation Preference $1.0 3Q14 Div

  6. Slide 6: Financial results – key drivers

    Financial results – key drivers Net Interest Income (Provision) Benefit for Credit Losses $ Billions $ Billions $4.1 $4.3 $3.8 $3.5 $3.5 $1.1 $0.6 $0.6 $0.2 2Q13 3Q13 4Q13 1Q14 2Q14 ($0.1) 2Q13 3Q13 4Q13 1Q14 2Q14 1 Derivative Gains (Losses) Other Non-Interest Income (Loss) $ Billions $ Billions $1.

  7. Slide 7: Segment financial results

    Segment financial results $ Billions 1 Single-Family Investments Multifamily $3.8 $3.3 $0.6 $0.4 $0.9 $0.4 $0.3 $0.3 $0.6 $0.5 $0.3 $0.6 $0.4 $0.5 ($0.1) 1Q14 2Q14 1Q14 2Q14 1Q14 2Q14 Comprehensive Income Segment Earnings Segment Other Comprehensive Income (Loss) 1 Comprehensive income approximated

  8. Slide 8: National home prices

    National home prices 1 Cumulative decline of 11% since June 2006 2Q14 1 National home prices use the Freddie Mac House Price Index for the U.S., which is a value-weighted average of the state indexes where the value weights are based on Freddie Mac’s single-family credit guarantee portfolio. Other i

  9. Slide 9: Home price performance by state

    Home price performance by state June 2013 to June 2014 1 United States 6% NH 7% 3% WA ME 4% 7% 2% MT ND 6% VT 5% 7% MN 3% MA OR 7% 4% 3% NY 6% ID SD WI 9% RI 3% 5% MI 2% WY 3% PA CT 0% 4% NJ 2% IA 3% 12% NE 5% 3% OH 3% DE 1% NV 2% 5% IL IN 11% 9% 3% WV 4% MD UT CO 4% VA CA MO KY 5% DC 9% KS NC 3% TN

  10. Slide 10: Housing market support

    Housing market support Number of Families Freddie Mac Helped Single-Family Loan Workouts 2 to Own or Rent a Home 1 Number of Loans (000) In Thousands Cumulative Since 2009: 11,968 Cumulative Since 2009: 1,017 275 2,480 2,472 2,458 2,089 208 1,830 169 168 133 639 64 2009 2010 2011 2012 2013 YTD 2009

  11. Slide 11: Single-family new funding volume

    Single-family new funding volume $ Billions $130 30 $98 34 $63 $59 $49 100 29 23 33 64 34 26 26 2Q13 3Q13 4Q13 1Q14 2Q14 Refi UPB Purchase UPB 10

  12. Slide 12: Single-family guarantee fees

    Single-family guarantee fees Guarantee Fee Charged on New Average Management and Guarantee Acquisitions1 Rate on SF Portfolio 1 In Basis Points (bps), Annualized In Basis Points (bps), Annualized 2011: 27 bps 2012: 38 bps 2013: 51 bps Legislated 10 Basis Point Guarantee Fee Remitted to Treasury 2 Av

  13. Slide 13: Single-family risk-sharing transactions

    Single-family risk-sharing transactions Structured Agency Credit Risk Agency Credit Insurance Structure SM (STACR ®) Debt Note Issuances (ACIS) Transactions $ Billions $ Millions $553.9 $1.0 $1.0 $0.6 $0.5 No $77.4 No Transaction Transaction 3Q13 4Q13 1Q14 2Q14 3Q13 4Q13 1Q14 2Q14 YTD $ Billions 201

  14. Slide 14: Single-family credit quality - purchases

    Single-family credit quality - purchases 1 Weighted Average Original LTV Ratio 2 Percent (%) Weighted Average Credit Score Relief refinance (includes HARP) All other Total purchases Relief refinance (includes HARP) All other Total purchases 1 Original LTV ratios are calculated as the unpaid principa

  15. Slide 15: Single-family credit quality – credit guarantee portfolio

    Single-family credit quality – credit guarantee portfolio Concentration of Credit Risk Serious Delinquency Rates Percent (%) as of June 30, 2014 Percent (%) 9.39 9.15 8.77 8.25 7.93 8 9 15 21 81 3.26 3.29 3.24 3.16 3.11 56 2.79 2.58 2.39 2.20 2.07 0.63 0.62 0.64 0.65 0.66 7 3 0.25 0.25 0.24 0.24 0.2

  16. Slide 16: Single-family real estate owned

    Single-family real estate owned Property Inventory Historical Trend 2Q14 Activity Ending Property Inventory ((Number of Properties) ((Number of Properties) 53k 51k 10,592 49k 48k 47k 47k 45k 44k (18,023) 43,565 36k 36,134 03/31/14 Acquisitions Dispositions 06/30/14 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

  17. Slide 17: Single-family mortgage market and Freddie Mac delinquency rates

    Single-family mortgage market and Freddie Mac delinquency rates Single-family Serious Delinquency Rates 32 28 24 20 18.96% 16 12 8 5.04% 4 2.97% 2.20% 0 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 1 1 1 2 Total Mortgage Market Prime Subprime Freddie Mac 1 Source: National Delinque

  18. Slide 18: Multifamily business volume and portfolio composition

    Multifamily business volume and portfolio composition Multifamily New Business Volume Total Multifamily Portfolio $ Billions UPB $ Billions $7 $7 $177 $180 $169 $167 $164 $161 $154 $5 $135 $4 $3 2Q13 3Q13 4Q13 1Q14 2Q14 12/31/07 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 6/30/14 MF unsecu

  19. Slide 19: Multifamily securitization volume

    Multifamily securitization volume 1 K-Deal Securitization Volume UPB $ Billions $28.0 $21.2 $13.7 $8.4 $6.4 $2.1 2009 2010 2011 2012 2013 YTD 2 2014 YTD 2009 2010 2011 2012 2013 2014 Total 1 Total UPB $2.1 $6.4 $13.7 $21.2 $28.0 $8.4 $79.9 K-Deal 2 6 12 17 19 7 63 Transactions 1 Total UPB represents

  20. Slide 20: Multifamily mortgage portfolio attributes

    Multifamily mortgage portfolio attributes 1 UPB Deliquency At June 30, 2014 $ Billions Rate Credit Enhanced $76.5 0.02% Non-Credit Enhanced $56.1 0.02% Total $132.6 0.02% Year of Acquisition or Guarantee Current Loan Size $ Billions as of June 30, 2014 $ Billions as of June 30, 2014 $31.3 $73.5 $23.

  21. Slide 21: Multifamily market and Freddie Mac delinquency rates

    Multifamily market and Freddie Mac delinquency rates Percent 14 12 10 8 6.50% 6 4 2 0.74% 0.04% 0 0.00% 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 1 Freddie Mac (60+ day) FDIC Insured Institutions (90+ day) MF CMBS Market (60+ day) ACLI Investment Bulletin (60+ day) 1 See “MD&A – RISK MANAGEMENT –

  22. Slide 22: Investments – Purchase Agreement portfolio limits

    Investments – Purchase Agreement portfolio limits Mortgage Assets 1, 2 Indebtedness 1, 3 $ Billions $ Billions Mortgage-related investments portfolio ending balance Total debt outstanding Mortgage-related investments portfolio limit Indebtedness limit 1 The company’s Purchase Agreement with Treasury

  23. Slide 23: Investments – mortgage-related investments portfolio composition

    Investments – mortgage-related investments portfolio composition 1 Mortgage-Related Investments Portfolio $ Billions $755 $697 $653 $558 $461 $420 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 6/30/14 2 Mortgage Loans Non-Freddie Mac Mortgage-Related Securities (Non-Agency) Non-Freddie Mac Mortgage-R

  24. Slide 24: 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) — Q2 2014 Earnings Presentation on 6ix