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 2019 Earnings Presentation

15 slides from Freddie Mac's earnings presentation, Feb 13, 2020

  1. Slide 1: Fourth Quarter 2019 Financial Results Supplement

    Exhibit 99.2 Fourth Quarter 2019 Financial Results Supplement February 13, 2020

  2. Slide 2: Financial Highlights

    Financial Highlights Comprehensive Income $ Billions ▪ Comprehensive income increased $2.4 from the prior quarter driven primarily by higher amortization income, gains $1.7 $1.8 $1.8 on debt extinguishment, and lower $1.5 market-related losses. 4Q18 1Q19 2Q19 3Q19 4Q19 Adjusted Net Interest Income a

  3. Slide 3: Total Portfolio Balances

    Total Portfolio Balances Total guarantee portfolio2 Portfolio balance highlights $ Billions +6% YoY increase ▪ Total guarantee portfolio: $2,265 • Single-Family - grew $98 billion, or 5% year-over- $2,133 $2,157 $2,184 $2,221 $271 year. $237 $243 $249 $260 • Multifamily - grew $34 billion, or 14% ye

  4. Slide 4: Conservatorship Matters and Total Equity

    Conservatorship Matters and Total Equity Treasury draws and dividend payments Total Equity / Net Worth $ Billions $ Billions $119.7 $112.4 $9.1 6 $71.3 $71.6 $4.5 $0.3 $4.1 $0.0 $3.1 2008-2017 2018 2019 Cumulative -$0.3 Total 2017 2018 2019 Draws from Treasury Dividend payments to Treasury • Pursuan

  5. Slide 5: Key Economic Indicators

    Key Economic Indicators National home prices increased by an average of 3.8% Quarterly ending interest rates over the past year 4.55% 4.06% 3.73% 3.64% 3.65% 2.72% 2.41% 1.96% 1.89% 1.57% 12/31/2018 3/31/2019 6/30/2019 9/30/2019 12/31/2019 30-year mortgage rate, based on Primary Mortgage Market Surv

  6. Slide 6: 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 7 $1,420 Guarantee fees charged on new acquisitions (bps) 48 $1,250 44 45 40 40 $1,024 $147 $955 $134 $740 $102 $58 $84 $77 $70 $37 $22 $24 $76 $55 $46 $6

  7. Slide 7: 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 747 747 750 752 752 77% 77% 77% 77% 75% 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 New business activity with debt-to-income ratio > 45% Loan purpose

  8. Slide 8: 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

  9. Slide 9: 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 (AMI) (% of eligible units acquired) 6% 6% 9% 7% 6% $591 $502 $395 $440 94% 94% 91% 93% 94% $(199) 4Q18 1Q19 2Q19 3Q19 4Q19 2015 2016 2017 2018

  10. Slide 10: Multifamily Key Metrics, continued

    Multifamily Key Metrics, continued New business activity Multifamily securitization activity8,9 $ Billions $ Billions $78.0 $78.4 $72.8 $75.4 $73.2 $0.5 $0.5 $67.5 $6.5 $7.5 $6.8 $56.8 $52.1 $2.2 $47.3 $41.2 $5.1 $66.3 $67.9 $77.5 $77.9 $60.7 $73.2 $49.9 $56.8 $36.1 $47.3 2015 2016 2017 2018 2019 20

  11. Slide 11: Capital Markets Financial Highlights and Key Metrics

    Capital Markets Financial Highlights and Key Metrics Capital Markets comprehensive income Capital Markets investments portfolio $ Millions $ Billions +17% YoY increase $648 $269 $254 $258 $268 $534 $539 $229 $247 $433 $62 $76 $81 $87 $100 $167 $171 $173 $171 $168 $10 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q

  12. Slide 12: Interest-Rate Risk Measures

    Interest-Rate Risk Measures GAAP Adverse Scenario10(Before-Tax) PVS-Level11 and Average Duration Gap12 $ Billions $275 ($0.2) ($0.2) ($0.1) $(0.1) $54 ($0.8) $11 $15 $35 ($2.1) 4Q18 1Q19 2Q19 3Q19 4Q19 ($2.7) ($3.5) PVS-L (50 bps) ($ Millions) $(4.3) ($4.6) 97% 98% 93% 89% 82% 2 0 0 0 0 4Q18 1Q19 2Q

  13. Slide 13: Housing Market Support

    Housing Market Support Number of families Freddie Mac helped Number of single-family loan workouts14 to own or rent a home13 In Thousands In Thousands 2,578 2,421 2,311 2,192 90 782 3 937 663 442 75 16 69 5 9 15 11 5 884 987 828 10 47 745 12 2 7 9 60 43 45 866 739 820 809 29 2016 2017 2018 2019 2016

  14. 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 December 31, 2019. 2 Based on unpaid principal balances (UPB) of loans and securities. Excludes mo

  15. 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

Federal Home Loan Mortgage Corp (Fmcc, Fmccg, Fmcci, Fmccj, Fmccl, Fmccn, Fmcco, Fmccs, Fmcct, Fmcki, Fmckl, Fmckn, Frejn, Frejo) — Q4 2019 Earnings Presentation on 6ix