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 2014 Earnings Presentation

24 slides from Freddie Mac's earnings presentation, Nov 6, 2014

  1. Slide 1: Third Quarter 2014 Financial Results Supplement

    Exhibit 99.2 Third Quarter 2014 Financial Results Supplement November 6, 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 Charged on New Acquisitions 4 - Treasury Draw Requests and Dividend Payments 12 - Single-Family Risk Trans

  3. Slide 3: Quarterly financial results

    Quarterly financial results $ Billions 3Q14 vs 2Q14 3Q14 2Q14 1 Net interest income $3.5 $3.7 $0.2 2 (Provision) benefit for credit losses 0.6 (0.6) (1.2) 3 Derivative losses (1.9) (0.6) 1.3 4 Other non-interest income 0.5 1.4 0.9 5 Non-interest income (loss) (1.4) 0.8 2.2 6 Non-interest expense (0.

  4. Slide 4: Comprehensive income

    Comprehensive income $ Billions $30.4 $9.8 $7.0 $5.6 $5.7 $4.4 $4.5 $1.9 $2.8 1 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 A Net income B Total other comprehensive income (loss), net of taxes 2 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 Cumulative Cumulative Total Total Total Senior Preferred Stock $72.3 Dividend Payments as of 09/30/14 $88.2 Outstanding Less: Initial Liquidation Preference 1 $1.0 4Q14 Dividend Obligation $2.8

  6. Slide 6: Financial results – key drivers

    Financial results – key drivers Net Interest Income (Provision) Benefit for Credit Losses $ Billions $ Billions $4.3 $3.8 $3.7 $1.1 $3.5 $3.5 $0.6 $0.2 ($0.1) ($0.6) 3Q13 4Q13 1Q14 2Q14 3Q14 3Q13 4Q13 1Q14 2Q14 3Q14 Derivative Gains (Losses) Other Non-Interest Income (Loss)1 $ Billions $ Billions $1

  7. Slide 7: Segment financial results

    Segment financial results $ Billions 1 Single-Family Guarantee Investments Multifamily $2.3 $0.6 $1.4 $0.9 $0.4 $0.3 $0.2 $0.3 $0.6 $0.6 $0.8 $0.5 $0.4 $0.2 ($0.1) ($0.1) 2Q14 3Q14 2Q14 3Q14 2Q14 3Q14 Comprehensive Income Segment Earnings Segment Other Comprehensive Income (Loss) 1 Comprehensive inc

  8. Slide 8: National home prices

    1 National home prices Cumulative decline of 11% since June 2006 170 United States (NSA) 160 Q32014 NSA Index Growth: 0.7% Q32014 SA Index Growth: 1.2% 150 140 130 United States (SA) 120 110 100 Freddie Mac House Price Index (December 2000=100) 90 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1

  9. Slide 9: Home price performance by state

    Home price performance by state September 2013 to September 2014 1 United States 5% NH 7% 4% WA 5% 8% ME 0% MT ND 1% VT 4% 7% MN 1% MA OR 3% 3% 3% 4% NY ID SD WI 8% RI 6% 3% MI 2% WY 3% PA CT -1% 5% NJ 1% IA 4% 13% NE 4% 4% 0% OH DE 6% NV 3% IL IN 4% 7% 4% 4% 4% MD 8% UT WV CO KS MO VA CA KY 3% DC 7

  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: 12,427 Cumulative Since 2009: 1,047 275 2,480 2,472 2,458 2,089 208 1,830 169 168 133 1,098 94 2009 2010 2011 2012 2013 YTD 200

  11. Slide 11: Single-family new funding volume

    Single-family new funding volume $ Billions $98 34 $77 $63 $59 $49 43 29 33 23 64 34 26 33 26 3Q13 4Q13 1Q14 2Q14 3Q14 Refi UPB Purchase UPB Note: Totals may not add due to rounding. © Freddie Mac 10

  12. Slide 12: Single-family guarantee fees charged on new acquisitions

    Single-family guarantee fees charged on new acquisitions 1 Quarterly Annual In Basis Points (bps), Annualized In Basis Points (bps) 56 58 57 53 55 51 38 25 27 20 3Q13 4Q13 1Q14 2Q14 3Q14 2009 2010 2011 2012 2013 2 Legislated 10 Basis Point Guarantee Fee Remitted to Treasury Single-Family Guarantee F

  13. Slide 13: Single-family risk transfer transactions

    Single-family risk transfer transactions Structured Agency Credit Risk Agency Credit Insurance Structure SM (STACR ®) Debt Note Issuances (ACIS SM) Transactions $ Billions $ Millions $1.9 $553.9 $1.0 $1.0 $0.6 $0.5 $77.4 No No No Transaction Transaction Transaction 3Q13 4Q13 1Q14 2Q14 3Q14 3Q13 4Q13

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

    Single-family credit quality - purchases Weighted Average Original LTV Ratio 1 2 Weighted Average Credit Score Percent (%) 756 755 755 756 97 76 91 77 749 762 744 70 70 758 759 67 83 757 756 76 71 80 77 77 68 748 67 747 67 744 740 66 738 727 712 2009 2010 2011 2012 2013 YTD 2009 2010 2011 2012 2013

  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 September 30, 2014 Percent (%) 9.15 8.77 8.25 7.93 7.66 8 8 14 20 83 3.29 3.24 3.11 3.12 3.16 58 2.58 2.39 2.20 2.07 1.96 0.62 0.64 0.65 0.66 0.70 7 2 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 3Q14 Activity Ending Property Inventory (Number of Properties) (Number of Properties) 51k 49k 48k 47k 47k 45k 44k 36k 8,648 29k 36,134 (15,438) 29,344 06/30/14 Acquisitions Dispositions 09/30/14 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q

  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 18.35% 16 12 8 4.80% 4 2.86% 2.07% 0 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-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 $177 $180 $169 $167 $7 $7 $164 $162 $154 $135 $5 $4 $3 3Q13 4Q13 1Q14 2Q14 3Q14 12/31/07 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 9/30/14 MF unsecu

  19. Slide 19: Multifamily securitization volume

    Multifamily securitization volume K-Deal Securitization Volume 1 UPB $ Billions $28.0 $21.2 $13.7 $12.9 $6.4 $2.1 2009 2010 2011 2012 2013 YTD 2014 YTD 2009 2010 2011 2012 2013 2014 Total 1 Total UPB $2.1 $6.4 $13.7 $21.2 $28.0 $12.9 $84.4 Number of 2 6 12 17 19 11 67 Transactions 1 Represents the U

  20. Slide 20: Multifamily mortgage portfolio attributes

    1 Multifamily mortgage portfolio attributes UPB Deliquency At September 30, 2014 $ Billions Rate Credit Enhanced $79.5 0.03% Non-Credit Enhanced $55.7 0.02% Total $135.2 0.03% Year of Acquisition or Guarantee Current Loan Size $ Billions as of September 30, 2014 $ Billions as of September 30, 2014 $

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

    Multifamily market and Freddie Mac delinquency rates Percent 14 12 10 8 6 4 2 0 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 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 – Credit Risk – Mortgage

  22. Slide 22: Investments – Purchase Agreement portfolio limits

    Investments – Purchase Agreement portfolio limits Mortgage Assets 1, 2 Indebtedness 1, 3 $ Billions $ Billions $780 $663 $663 $663 $663 $553 $553 $553 $553 $564 $470 $511 $461 $458 $434 $449 $440 $420 $414 12/31/13 03/31/14 06/30/14 09/30/14 12/31/14 12/31/13 03/31/14 06/30/14 09/30/14 12/31/14 01/0

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

    Investments – mortgage-related investments portfolio composition Mortgage-Related Investments Portfolio1 $ Billions $755 $697 $653 $558 $461 $414 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 9/30/14 Mortgage Loans 2 Non-Freddie Mac Mortgage-Related Securities (Non-Agency) Non-Freddie Mac Mortgage-Re

  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) — Q3 2014 Earnings Presentation on 6ix