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) — Q1 2020 Earnings Presentation
15 slides from Freddie Mac's earnings presentation, Apr 30, 2020
Slide 1: First Quarter 2020 Financial Results Supplement
Exhibit 99.2 First Quarter 2020 Financial Results Supplement April 30, 2020
Slide 2: COVID-19 Pandemic Response Efforts
COVID-19 Pandemic Response Efforts Employees & Vendors Sellers & Servicers Communities • We activated our Crisis Management • For sellers, we have introduced • For homeowners, we are offering Team to closely monitor the situation temporary measures to help provide additional mortgage relief options
Slide 3: Financial Highlights
Financial Highlights Comprehensive Income $ Billions ▪ Comprehensive income of $0.6 billion, down from the prior quarter, driven by higher credit- $2.4 related expenses, primarily due to higher expected credit losses as a result of the COVID-19 pandemic, lower gains on single- $1.7 $1.8 $1.8 family
Slide 4: Total Portfolio Balances
Total Portfolio Balances 2 Total guarantee portfolio Portfolio balance highlights $ Billions 6% YoY increase ▪ Total guarantee portfolio: $2,265 $2,295 $2,157 $2,184 $2,221 • Single-Family - grew $106 billion, or 6%, year-over- $271 $275 year. $243 $249 $260 • Multifamily - grew $32 billion, or 13%,
Slide 5: Conservatorship Matters and Total Equity
Conservatorship Matters and Total Equity Treasury draws and dividend payments Total Equity / Net Worth $ Billions $ Billions $119.7 $112.4 6 $71.3 $71.6 $9.1 $9.5 $4.5 $0.3 $4.1 $3.1 2008-2017 2018 2019 2020 Cumulative $(0.3) Total Draws from Treasury Dividend payments to Treasury 2017 2018 2019 YTD
Slide 6: Key Economic Indicators
Key Economic Indicators National home prices increased by an average of 5.2% Quarterly ending interest rates over the past year 4.06% 3.73% 3.64% 3.74% 3.50% 2.41% 1.96% 1.89% 1.57% 0.72% 3/31/2019 6/30/2019 9/30/2019 12/31/2019 3/31/2020 30-year mortgage rate, based on Primary Mortgage Market Surve
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 $ Billions $ Millions $1,420 Guarantee fees charged on new acquisitions (bps)7 $1,250 48 49 44 45 40 $955 $147 $134 $138 $740 $588 $102 $58 $84 $83 $70 $37 $24 $76 $46 $65 $63
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 credit score 747 750 752 752 752 77% 77% 77% 75% 74% 1Q19 2Q19 3Q19 4Q19 1Q20 1Q19 2Q19 3Q19 4Q19 1Q20 New business activity with debt-to-income ratio > 45 % Loan purpos
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% $591 $502 $395 $440 94% 91% 93% 94% 96% $(174) 1Q19 2Q19 3Q19 4Q19 1Q20 2016 2017 2018 2019
Slide 11: Multifamily Key Metrics, continued
Multifamily Key Metrics, continued New business activity Multifamily securitization activity8,9 $ 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 $2.2 $77.9 $73.2 $77.5 $66.3 $67.9 $56.8 $60.7 $49.9 $12.3 $10.0 $0.1 $1.7 $9.9 $10.6 2016 2017 2018 2019 YTD
Slide 12: Capital Markets Financial Highlights and Key Metrics
Capital Markets Financial Highlights and Key Metrics Capital Markets comprehensive income Capital Markets investments portfolio $ Millions $ Billions 18% YoY increase $269 $291 $247 $254 $258 $268 $534 $539 $120 $433 $76 $81 $87 $100 $210 $171 $173 $171 $168 $171 $10 1Q19 2Q19 3Q19 4Q19 1Q20 1Q19 2Q
Slide 13: Housing Market Support
Housing Market Support Number of families Freddie Mac helped Number of single-family loan workouts11 to own or rent a home10 In Thousands In Thousands 2,578 2,311 2,192 782 663 442 90 3 75 16 5 15 11 884 987 828 10 47 2 7 637 9 449 60 309 45 820 866 809 108 15 29 3 11 192 217 3 31 149 111 9 7 2017 2
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 quarter ended March 31, 2020. 2 Based on unpaid principal balances (UPB) of loans and securities. Excludes mortg
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