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 2023 Earnings Presentation
14 slides from Freddie Mac's earnings presentation, Feb 14, 2024
Slide 1: Fourth Quarter 2023 Financial Results Supplement
© Freddie Mac Fourth Quarter 2023 Financial Results Supplement February 14, 2024 Exhibit 99.2
Slide 2: Financial Highlights
© Freddie Mac 2 Financial Highlights $4.8 $4.8 $5.3 $5.7 $5.4 $1.8 $2.0 $2.9 $2.7 $2.9 Net revenues Net income 4Q22 1Q23 2Q23 3Q23 4Q23 Net revenues and net income $ Billions ▪ Net income of $2.9 billion for the fourth quarter of 2023, an increase of 65% year-over-year, primarily driven by higher ne
Slide 3: Mortgage Portfolio Balances
© Freddie Mac 3 $3,415 $3,415 $3,431 $3,456 $3,480 $2,986 $2,989 $3,004 $3,024 $3,039 $429 $426 $427 $432 $441 Single-Family mortgage portfolio Multifamily mortgage portfolio 12/31/22 03/31/23 06/30/23 09/30/23 12/31/23 Mortgage Portfolio Balances Mortgage portfolio1 UPB in $ Billions 2% YoY increas
Slide 4: Conservatorship Matters
© Freddie Mac 4 $47.7 $117.3 $140.2 Net worth Senior preferred stock liquidation preference Remaining Treasury funding commitment As of December 31, 2023 Conservatorship Matters Pursuant to the Purchase Agreement, Freddie Mac will not be required to pay a dividend to Treasury until it has built suff
Slide 5: Key Economic Indicators
© Freddie Mac 5 National home prices increased by an average of 6.6% over the past year 6.42% 6.32% 6.71% 7.31% 6.61% 4.06% 4.63% 5.07% 5.32% 5.34% 30-year mortgage rate, based on Primary Mortgage Market Survey (PMMS) SOFR 12/31/22 03/31/23 06/30/23 09/30/23 12/31/23 Key Economic Indicators Quarterl
Slide 6: Single-Family Financial Highlights and Key Metrics
© Freddie Mac 6 $2,986 $2,989 $3,004 $3,024 $3,039 4Q22 1Q23 2Q23 3Q23 4Q23 0.94% 0.76% 0.88% 0.99% 1.10% 0.24% 0.20% 0.21% 0.24% 0.27% 0.66% 0.62% 0.56% 0.55% 0.55% One month past due Two months past due Seriously delinquent 4Q22 1Q23 2Q23 3Q23 4Q23 $75 $59 $83 $85 $73 $63 $51 $73 $76 $65 $12 $10 $
Slide 7: Single-Family Loan Purchase Credit Characteristics
© Freddie Mac 7 Loan purpose 78% 79% 79% 78% 77% 4Q22 1Q23 2Q23 3Q23 4Q23 84% 86% 88% 89% 89% 12% 9% 8% 8% 8%4% 5% 4% Home purchase Cash-out refinance Other refinance 4Q22 1Q23 2Q23 3Q23 4Q23 747 749 751 753 752 4Q22 1Q23 2Q23 3Q23 4Q23 22% 23% 26% 29% 31% 4Q22 1Q23 2Q23 3Q23 4Q23 New business activ
Slide 8: Single-Family Credit Risk Transfer
© Freddie Mac 8 UPB covered by new CRT issuance $ Billions $58 $15 $56 $8 $36 4Q22 1Q23 2Q23 3Q23 4Q23 Mortgage portfolio with credit enhancement UPB in $ Billions Single-Family Credit Risk Transfer $1,832 $1,840 $1,864 $1,865 $1,860 61% 62% 62% 62% 61% UPB Percentage 12/31/22 03/31/23 06/30/23 09/3
Slide 9: Multifamily Financial Highlights and Key Metrics
© Freddie Mac 9 0.12% 0.28% 0.17% 0.29% 0.84% 0.57% Freddie Mac (60+ day) FDIC insured institutions (90+ day) MF CMBS market (60+ day) 4Q22 1Q23 2Q23 3Q23 4Q23 $29 $6 $13 $13 $16 4Q22 1Q23 2Q23 3Q23 4Q23 Multifamily delinquency rates $429 $426 $427 $432 $441 4Q22 1Q23 2Q23 3Q23 4Q23 Multifamily Fina
Slide 10: Multifamily New Business Characteristics
© Freddie Mac 10 Acquisitions of units by area median income (AMI) (% of eligible units acquired) 34% 44% 38% 36% 38% 33% 25% 29% 30% 29% 28% 22% 23% 24% 27% 5% 9% 10% 10% 6% ≤60% >60% to ≤80% >80% to ≤120% >120% 4Q22 1Q23 2Q23 3Q23 4Q23 1.25 1.27 1.27 1.26 1.27 58% 57% 58% 60% 59% Weighted average
Slide 11: Multifamily Credit Risk Transfer
© Freddie Mac 11 $398 $396 $402 $410 $415 93% 93% 94% 95% 94% UPB Percentage 12/31/22 03/31/23 06/30/23 09/30/23 12/31/23 Mortgage portfolio with credit enhancement UPB in $ Billions $16 $8 $16 $17 $11 4Q22 1Q23 2Q23 3Q23 4Q23 Multifamily Credit Risk Transfer UPB covered by new CRT issuance $ Billio
Slide 12: Housing Market Support
© Freddie Mac 12 22 24 20 18 19 6 7 6 5 6 10 11 9 7 8 6 6 5 6 5 Forbearance and other Payment deferral plans Loan modifications 4Q22 1Q23 2Q23 3Q23 4Q23 Number of families Freddie Mac helped to own or rent a home4 In Thousands Housing Market Support 504 250 372 389 52 33 41 38 37 200 157 217 233 199
Slide 13: Endnotes
© Freddie Mac 13 Endnotes 1 Based on unpaid principal balances (UPB) of mortgage loans held-for-investment, mortgage loans held-for-sale, and mortgage loans underlying our mortgage-related guarantees. 2 Includes the initial $1 billion liquidation preference of the senior preferred stock issued to Tr
Slide 14: Safe Harbor Statements
© Freddie Mac 14 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 age