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 2009 Earnings Presentation
22 slides from Freddie Mac's earnings presentation, Aug 7, 2009
Slide 1: Second Quarter 2009 Financial Results Supplement
Second Quarter 2009 Financial Results Supplement August 7, 2009
Slide 2: Table of contents
Biss hae 2 Table of contents ees Nanisenaseniel GAAP Financia Results 414 National Home Prices 4+ Total Equity and Purchase Agreement with Treasury 12+ State by State Home Prices 5 Cumulative Effect of Adoption of FSP FAS 116-2and FAS 124-2 12- Single-Family Credit Statistics 6 Business Revenues 14
Slide 3: GAAP financial results
GAAP financial results Line 1: Net interest income benefited from a generally more favorable funding environment during the second quarter. Line 3: The company recorded net mark-to- market gains on its derivative portfolio, trading securities, and guarantee asset in 2Q 2009. These gains were primari
Slide 4: Total equity and Purchase Agreement with Treasury
Total equity and Purchase Agreement with Treasury 1 Net worth represents the difference between the company's assets and liabilities under GAAP. With the adoption of SFAS 160 on January 1, 2009, the company's net worth is now equal to its total equity (deficit). Prior to adoption of SFAS 160, total
Slide 5: Cumulative effect of adoption of FSP FAS 115-2 and FAS 124-2
Cumulative effect of adoption of FSP FAS 115-2 and FAS 124-21 1 As a result of the company's adoption of FSP FAS 115-2 and FAS 124-2 effective on April 1, 2009, the credit and non-credit components of other-than-temporary impairments (OTTI) of securities will be treated independently. Credit OTTI wi
Slide 6: Business revenues
Business revenues 1 Represents period-end unpaid principal balance (UPB). 2 Fully taxable-equivalent basis. 2 2 1 1
Slide 7: Reserve for loan losses
Period End Balance ($ Millions) Freddie ANS Reserve for loan losses $26,000 24,000 2.000 EEA "WW _244 a2 | 1.20% s15si8 | eo $10.220 | oo $5013 $5702 016% snare 020% ‘OR g02 2 ors + 040% + 020% 2.00% eo me" Ee f raze = sar) 40.2007 10.2008 20 2008 30 2008 40 208 10.209 20 2008 im Reserve for Loan Lo
Slide 8: Quarterly mark-to-market items
Quarterly mark-to-market items Line 1: Increased gains on the derivative portfolio were primarily driven by the impacts of a steepened yield curve on the company's net pay-fixed swaps portfolio. Line 2: Increased gains on the guarantee asset were primarily driven by increased interest rates, which r
Slide 9: Single-family foreclosure alternatives
Single-family foreclosure alternatives Helped more than 29,000 borrowers avoid foreclosure or sell their properties through our traditional delinquency resolution programs. Implemented the Freddie Mac Relief Refinance MortgageSM (HARP) and the Home Affordable Modification program (HAMP). As of June
Slide 10: Credit Supplement
Bis Dh “W424 Credit Supplement
Slide 11: National home prices have experienced a cumulative decline of 16.8% since June 2006
National home prices have experienced a cumulative decline of 16.8% since June 20061 1 National home prices use the internal Freddie Mac Index, which is value-weighted based on Freddie Mac's single-family portfolio. The U.S. index is a monthly series; quarterly growth rates are calculated as a 3-mon
Slide 12: States and Washington, DC had home price declines from June 2008 to June 2009
45 States and Washington, DC had home price declines from June 2008 to June 20091 1 National home prices use the internal Freddie Mac index, which is value-weighted based on Freddie Mac's single-family portfolio. The state index is a monthly series; annual growth rates are calculated as a 12-month c
Slide 13: Single-family credit statistics
Single-family credit statistics1 1 Beginning in November 2008, Freddie Mac periodically suspended foreclosure transfers of occupied homes and evictions for those homes eligible for certain foreclosure alternative programs, including the Making Home Affordable Program (MHA Program). These periodic ac
Slide 14: Single-family credit losses by book year and state
Single-family credit losses by book year1 and state 1 Book year indicates year of loan origination. 2 Credit losses consist of the aggregate amount of charge-offs, net of recoveries, and the amount of REO operations expense in each of the respective periods. 3 Based on the number of mortgages 90 day
Slide 15: Single-family credit losses and REO counts by region and state
1 Based on the number of mortgages 90 days or more delinquent or in foreclosure. UPB amounts exclude certain Structured Transactions. 2 Based on the UPB of loans at the time of REO acquisition. 3 Credit losses consist of the aggregate amount of charge-offs, net of recoveries, and the amount of REO o
Slide 16: Single-family portfolio characteristics
Single-family portfolio characteristics 1 Based on the unpaid principal balance of the underlying mortgage loans in the single-family portfolio. Disclosures include all Structured Transactions where loan characteristics data exists. 2 Loans purchased through bulk transactions and identified as Alt-A
Slide 17: Single-family portfolio characteristics, continued
Single-family portfolio characteristics 1 Based on the unpaid principal balance of the underlying mortgage loans in the single-family portfolio. Disclosures include all Structured Transactions where loan characteristics data exists. 2 Loans purchased through bulk transactions and identified as Alt-A
Slide 18: Single-family credit profile by book year and product feature
Single-family credit profile by book year and product feature 1 Based on the unpaid principal balance of the underlying mortgage loans in the single-family portfolio. Disclosures include all Structured Transactions where loan characteristics data exists. 2 Indicates year of loan origination. 3 Inclu
Slide 19: Single-family portfolio composition by product
Single-family portfolio composition by product 1 Based on the number of mortgages 90 days or more delinquent or in foreclosure. Percentage based on loan counts. 2 Includes 40-year and 20-year fixed-rate mortgages. 3 Interest-only includes adjustable-rate and fixed-rate mortgages.
Slide 20: Total single-family portfolio serious delinquencies by book year
Total Single-family portfolio serious delinquencies by book year Note: Excludes Structured Transactions. Book year indicates year of loan origination.
Slide 21: Total single-family portfolio cumulative default rates by book year
Total Single-family portfolio cumulative default rates1 by book year 1 Represents the cumulative transition rate of loans to a default event, and is calculated for each year of origination as the number of loans that have proceeded to foreclosure acquisition or other disposition events, excluding li
Slide 22: 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