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 2020 Earnings Presentation
16 slides from Freddie Mac's earnings presentation, Oct 29, 2020
Slide 1: Third Quarter 2020 Financial Results Supplement
Exhibit 99.2 Third Quarter 2020 Financial Results Supplement October 29, 2020
Slide 2: Financial Highlights
Financial Highlights Net Income and Comprehensive Income ▪ Net income of $2.5 billion and comprehensive $ Billions income of $2.4 billion, up $0.7 billion and $0.5 billion, respectively, from the prior quarter, driven by $2.6 $2.4 $2.5 $2.4 guarantee portfolio growth, higher upfront fee income recog
Slide 3: Total Portfolio Balances
Total Portfolio Balances 2 Total guarantee portfolio Portfolio balance highlights $ Billions 11% YoY increase ▪ Total guarantee portfolio: $2,476 $2,295 $2,342 • Single-Family - grew $218 billion, or 11%, year- $2,221 $2,265 $297 $281 over-year. $260 $271 $275 • Multifamily - grew $37 billion, or 14
Slide 4: Percentage of Loans in Forbearance
Percentage of Loans in Forbearance Single-Family(7) Multifamily(8) 2.95% 2.34% 2.21% 1.99% 0.32% 0.29% 0.22% One Month Two Months Three Total Forbearance Period Repayment Period Total Months or More Past Due Percentage of loans in the single-family guarantee portfolio that were both in forbearance a
Slide 5: Conservatorship Matters and Total Equity
Conservatorship Matters and Total Equity Treasury draws and dividend payments(9) Total equity / Net worth $ Billions $ Billions $119.7 $112.4 $71.3 $71.6 $13.9 $9.1 $4.5 $0.3 $4.1 $3.1 2008-2017 2018 2019 YTD Cumulative $(0.3) 2020* Total Draws from Treasury Dividend payments to Treasury 2017 2018 2
Slide 6: Key Economic Indicators
Key Economic Indicators National house prices increased by an average of 8.4% Quarterly ending interest rates over the past year 3.74% 3.64% 3.50% 3.13% 2.90% 1.89% 1.57% 0.72% 0.64% 0.71% 09/30/19 12/31/19 03/31/20 06/30/20 09/30/20 30-year mortgage rate, based on Primary Mortgage Market Survey (PM
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 $1,420 Guarantee fees charged on new acquisitions (bps)10 $1,311 $1,250 48 49 48 45 46 $337 $753 $588 $232 $236 $134 $147 $138 $172 $58 $84 $83 $76 $63 $5
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 original credit score 752 752 752 758 761 77% 75% 74% 72% 71% 3Q19 4Q19 1Q20 2Q20 3Q20 3Q19 4Q19 1Q20 2Q20 3Q20 New business activity with debt-to-income ratio > 45 % Lo
Slide 9: Single-Family Guarantee Credit Risk Transfer (CRT) – STACR / ACIS
Single-Family Guarantee Credit Risk Transfer (CRT) – 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 percenta
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 (AMI) (% of eligible units acquired) 6% 9% 7% 6% 4% $1,177 $1,063 $591 94% 91% 93% 94% 96% $502 2016 2017 2018 2019 YTD 2020* $(174) 3Q19 4Q19 1
Slide 11: Multifamily Key Metrics, continued
Multifamily Key Metrics, continued New business activity Multifamily securitization activity11,12 $ Billions $ Billions $78.4 $78.0 $75.4 $73.2 $0.5 $0.5 $72.8 $67.5 $6.5 $7.5 $6.8 $56.8 $52.1 $48.3 $2.2 $46.9 $0.3 $6.2 $77.9 $73.2 $77.5 $66.3 $67.9 $56.8 $60.7 $48.0 $49.9 $40.7 2016 2017 2018 2019
Slide 12: Multifamily Portfolio Metrics
Multifamily Portfolio Metrics Total portfolio 55% increase Total portfolio loan count $ Billions since 2016 In Thousands $309 $331 $30 $280 $33 $249 $36 $4 $213 $6 $39 $7 28 $42 27 $7 24 $13 $271 $297 21 $203 $237 $158 17 (74%) (82%) (85%) (88%) (90%) 12/31/16 12/31/17 12/31/18 12/31/19 09/30/20 Gua
Slide 13: Capital Markets Financial Highlights and Key Metrics
Capital Markets Financial Highlights and Key Metrics Capital Markets comprehensive income (loss) Capital Markets investments portfolio $ Millions $ Billions $539 16% YoY increase $269 $291 $299 $300 $258 $268 $210 $87 $100 $120 $152 $144 $124 $10 $171 $168 $171 $147 $156 $(36) 3Q19 4Q19 1Q20 2Q20 3Q
Slide 14: Housing Market Support
Housing Market Support Number of families Freddie Mac helped Number of single-family loan workouts14 13 In Thousands to own or rent a home 293 In Thousands 1 15 3,003 95 2,578 497 2,311 2,192 6 809 775 820 1,855 866 638 90 987 75 3 176 828 5 51 884 744 1,731 33 47 2 36 12 9 25 1 10 11 20 782 4 3 6 6
Slide 15: 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 September 30, 2020. 2 Based on unpaid principal balances (UPB) of loans and securities. Excludes m
Slide 16: 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