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 2018 Earnings Presentation
14 slides from Freddie Mac's earnings presentation, Oct 31, 2018
Slide 1: Third Quarter 2018 Financial Results Supplement
Exhibit 99.2 Third Quarter 2018 Financial Results Supplement October 31, 2018
Slide 2: Financial Highlights
Financial Highlights Comprehensive Income $ Billions $4.7 ▪ 3Q18 comprehensive income of $2.6 billion was driven primarily by stable $2.9 $2.2 $2.4 $2.6 $0.2 business revenues and strong credit $2.1 $2.2 $1.8 quality. $(5.4) $(3.3)-$3.3 3Q17 4Q17 1Q18 2Q18 3Q18 Comprehensive income (loss) Litigation
Slide 3: Total Portfolio Balances
Total Portfolio Balances 2 Total guarantee portfolio Portfolio balance highlights $ Billions +6% YoY increase ▪ Total guarantee portfolio: $2,075 $2,101 $1,984 $2,032 $2,049 • Single-family - grew $75 billion, or 4% year-over- $226 $184 $203 $213 $220 year. • Multifamily - grew $42 billion, or 23% y
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 $114.0 $96.5 6 $71.3 $71.6 $53 $43 $35 $26 $21 $22 $10.9 $5.0 $0.3 $1.6 2008-2015 2016 2017 2018 YTD* Cumulative 12/31/201
Slide 5: Interest-rate Risk Measures
Interest-rate Risk Measures GAAP Adverse Scenario8 (Before-Tax) PMVS-Level9 and Average Duration Gap10 $ Billions ($0.5) ($0.6) ($0.5) ($0.5) $35 $17 $23 $18 ($1.2) $8 3Q17 4Q17 1Q18 2Q18 3Q18 ($2.8) ($3.1) ($3.3) ($3.4) ($3.3) PMVS-L (50 bps) ($ Millions) 84% 83% 86% 85% 58% 0 0 0 0 0 9/30/2017 12/
Slide 6: Key Economic Indicators
Key Economic Indicators National home prices increased by an average of 5.9% Quarterly ending interest rates over the past year 4.72% 4.44% 4.55% 3.99% 3.83% 3.11% 2.78% 2.93% 2.28% 2.39% 9/30/2017 12/31/2017 3/31/2018 6/30/2018 9/30/2018 30-year PMMS 10-year LIBOR Unemployment rate and job creation
Slide 7: Single-family Financial Highlights and Key Metrics
Single-family Financial Highlights and Key Metrics Single-family segment earnings New funding volume $ Millions $ Billions $1,065 Guarantee fees charged on new acquisitions (bps)11 $803 42 36 40 41 41 $758 $702 $98 $87 $84 $81 $41 $66 $255 $30 $26 $19 $28 $62 $57 $57 $38 $58 3Q17 4Q17 1Q18 2Q18 3Q18
Slide 8: Single-family Credit Risk Transfer – STACR / ACIS / Deep MI
Single-family Credit Risk Transfer – STACR / ACIS / Deep MI 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
Slide 9: 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) $660 4% 6% 6% 9% 6% 6% 6% 8% 8% 7% $524 $502 $404 $370 90% 88% 86% 83% 87% 2014 2015 2016 2017 YTD 2018* 3Q17 4Q17 1Q18
Slide 10: 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 $73.2 $62.2 Cap = $25.9 $5.5 $56.8 $51.2 $3.9 $44.4 $47.3 $39.5 $46.8 $20.3 $37.4 $4.7 $1.8 $17.3 $28.3 $28.1 $56.7 $2.4 $21.3 $47.3 $35.6 $39.7 $
Slide 11: Capital Markets Financial Highlights and Key Metrics
Capital Markets Financial Highlights and Key Metrics Capital Markets comprehensive income Capital Markets investments portfolio $ Billions $ Billions -9% YoY decrease $4.0 $289 $285 $260 $261 $262 $82 $89 $70 $73 $83 $1.0 $1.1 $1.0 $0.6 $207 $196 $190 $188 $180 3Q17 4Q17 1Q18 2Q18 3Q18 3Q17 4Q17 1Q1
Slide 12: 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 2,237 937 663 94 910 1,591 1,543 13 6 75 75 477 338 69 5 2 14 828 21 9 15 745 5 8 677 50 12 10 4 584 654 3 8 54 51 820 43 45 650 739 35 5
Slide 13: 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, 2018. 2 Based on unpaid principal balances (UPB) of loans and securities. Excludes m
Slide 14: 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