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 2018 Earnings Presentation

15 slides from Freddie Mac's earnings presentation, Feb 14, 2019

  1. Slide 1: Fourth Quarter 2018 Financial Results Supplement

    Exhibit 99.2 Fourth Quarter 2018 Financial Results Supplement February 14, 2019

  2. Slide 2: Financial Highlights

    Financial Highlights Comprehensive Income $ Billions ▪ 4Q18 comprehensive income included $0.6 billion in market-related $2.2 $2.4 $2.6 $0.2 $1.5 losses. There will be a $1.5 billion $2.1 $2.2 dividend requirement to the U.S. Treasury in March 2019. $(5.4) $(3.3) 4Q17 1Q18 2Q18 3Q18 4Q18 Comprehensi

  3. Slide 3: Total Portfolio Balances

    Total Portfolio Balances Total guarantee portfolio2 Portfolio balance highlights $ Billions +5% YoY increase ▪ Total guarantee portfolio: $2,133 $2,032 $2,049 $2,075 $2,101 • Single-family - grew $67 billion, or 4% year-over- $237 $203 $213 $220 $226 year. • Multifamily - grew $34 billion, or 17% ye

  4. Slide 4: Conservatorship and Regulatory Matters

    Conservatorship and Regulatory Matters Treasury draw requests and dividend payments DFAST7 - Additional draws needed under $ Billions severely adverse scenario $ Billions $140.2 $116.5 $96.5 6 $71.3 $71.6 $53 $43 $35 $26 $21 $22 $10.9 $5.0 $0.3 $4.1 2008-2015 2016 2017 2018 Cumulative 12/31/2015 12/

  5. Slide 5: Interest-rate Risk Measures

    Interest-rate Risk Measures GAAP Adverse Scenario8 (Before-Tax) PMVS-Level9 and Average Duration Gap10 $ Billions $(0.2) ($0.5) ($0.6) ($0.5) ($0.5) $17 $8 $23 $18 $11 4Q17 1Q18 2Q18 3Q18 4Q18 $(2.7) ($3.1) ($3.3) ($3.4) ($3.3) PMVS-L (50 bps) ($ Millions) 93% 84% 83% 86% 85% 0 0 0 0 0 12/31/2017 3/

  6. Slide 6: Key Economic Indicators

    Key Economic Indicators National home prices increased by an average of 4.7% Quarterly ending interest rates over the past year 4.72% 4.44% 4.55% 4.55% 3.99% 3.11% 2.93% 2.78% 2.72% 2.39% 12/31/2017 3/31/2018 6/30/2018 9/30/2018 12/31/2018 30-year PMMS 10-year LIBOR Unemployment rate and job creatio

  7. Slide 7: Single-family Financial Highlights and Key Metrics

    Single-family Financial Highlights and Key Metrics Single-family segment earnings New business activity $ Millions $ Billions $1,183 $1,024 Guarantee fees charged on new acquisitions (bps)11 $915 40 41 41 41 $822 $786 36 $98 $84 $81 $77 $41 $66 $26 $19 $22 $28 $62 $57 $38 $58 $55 4Q17 1Q18 2Q18 3Q18

  8. Slide 8: Single-family Loan Purchase Credit Characteristics

    Single-family Loan Purchase Credit Characteristics Weighted average original loan-to-value ratio (OLTV) Weighted average credit score 745 744 745 746 747 76% 76% 78% 79% 77% 76% 76% 78% 79% 77% 745 745 746 746 747 68% 66% 67% 66% 65% 708 709 707 707 712 4Q17 1Q18 2Q18 3Q18 4Q18 4Q17 1Q18 2Q18 3Q18 4

  9. Slide 9: Single-family Credit Risk Transfer – STACR / ACIS

    Single-family 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 44% percentage of total

  10. Slide 10: Multifamily Financial Highlights and Key Metrics

    Multifamily Financial Highlights and Key Metrics Multifamily comprehensive income Multifamily acquisitions of units by area median $ Millions income (% of eligible units acquired) 4% 6% 6% 9% 7% $660 6% 6% 8% 8% 8% $526 $505 $404 90% 88% 86% 83% 85% 2014 2015 2016 2017 2018 $(199) 4Q17 1Q18 2Q18 3Q1

  11. Slide 11: Multifamily Key Metrics, continued

    Multifamily Key Metrics, continued New funding volume Multifamily securitization volume12 $ Billions $ Billions Cap = $36.5 Cap = $35.0 Cap = $30.0 $71.5 $77.5 $68.6 $73.2 $62.2 Cap = $25.9 $7.0 $5.5 $56.8 $51.2 $3.9 $47.3 $39.5 $44.9 $20.3 $37.4 $1.8 $17.3 $28.3 $56.7 $61.6 $2.4 $21.3 $47.3 $35.6 $

  12. Slide 12: Capital Markets Financial Highlights and Key Metrics

    Capital Markets Financial Highlights and Key Metrics Capital Markets investments portfolio Capital Markets comprehensive income $ Billions $ Billions -20% YoY decrease $285 $260 $261 $263 $1.0 $1.0 $0.9 $229 $89 $70 $73 $83 $0.6 $0.6 $62 $196 $190 $188 $180 $167 4Q17 1Q18 2Q18 3Q18 4Q18 4Q17 1Q18 2Q

  13. Slide 13: Housing Market Support

    Housing Market Support Number of families Freddie Mac helped Number of single-family loan workouts15 to own or rent a home14 In Thousands In Thousands 2,421 2,311 2,237 2,192 937 663 442 94 910 90 13 3 6 75 16 69 5 884 828 21 9 15 11 745 5 677 12 10 54 60 820 866 43 45 650 739 2015 2016 2017 2018 20

  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 year ended December 31, 2018. 2 Based on unpaid principal balances (UPB) of loans and securities. Excludes mortg

  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 2018 Earnings Presentation on 6ix