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 2009 Earnings Presentation
22 slides from Freddie Mac's earnings presentation, May 13, 2009
Slide 1: First Quarter 2009 Financial Results Supplement
First Quarter 2009 Financial Results Supplement May 12, 2009
Slide 2: Table of contents
Bnet Dk “W244 Table of contents Slide: ‘Slide: 3 GAAP Financial Results 10- National Home Prices 4- Total Equity and Purchase Agreement with Treasury 11 State by State Home Prices 5 Business Revenues 12- Single-Family Creat Statistics Reserve for Loan Losses 13 Single-Family Creat Losses by Book Yea
Slide 3: GAAP financial results
GAAP financial results Line 1: Increased net interest income was primarily driven by lower short- and long- term funding costs. Line 3: The company recorded net mark- to-market gains on its derivative portfolio, guarantee asset, and trading securities in 1Q 2009 primarily driven by increased long-te
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: Business revenues
$712 $792 $805 $867 $737 0.48% 0.80% 0.93% 1.28% $650 $700 $750 $800 $850 $900 $950 $1,000 1Q08 2Q08 3Q08 4Q08 1Q09 - -0.40% 0.00% 0.40% 0.80% 1.20% 1.60% 2.00% Mortgage-related investments portfolio ($ Billions) Net Interest Yield Business revenues 1 Represents period-end unpaid principal balance (
Slide 6: Reserve for loan losses
$803 $1,138 $2,312 $2,822 $5,813 $15,618 $22,678 $75 $111 $320 $545 $942 $863 $1,014 $2,537 $5,702 $6,953 $8,791 $3,872 $10,220 $63 $44 $248 $447 $1,372 $787 $1,240 0.16% 0.53% 0.30% 0.21% 0.13% 0.07% 0.05% 1.16% 0.81% $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 $2
Slide 7: Quarterly mark-to-market items
Quarterly mark-to-market items Line 1: Increases in swap interest rates resulted in fair value gains in the net pay-fixed swaps portfolio, partially offset by losses on swaptions. Line 2: Increased interest rates drove mark-to-market gains on the company's guarantee asset. Line 3: Net gains on tradi
Slide 8: Summary of AFS security impairments
Summary of AFS security impairments 1 Represents UPB as of March 31, 2009 of securities impaired between January 1, 2008 and March 31, 2009. 2 Accretable balance as of March 31, 2009. Assumes full accretion back to earnings. Actual results may vary and amounts realized may be materially less than in
Slide 9: Credit Supplement
Mc jee ae ee Bliss j Credit Supplement
Slide 10: National home prices have experienced a cumulative decline of 19.6% since June 2006
National home prices have experienced a cumulative decline of 19.6% 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 11: States and Washington, DC had home price declines from March 2008 to March 2009
47 States and Washington, DC had home price declines from March 2008 to March 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
Slide 12: Single-family credit statistics
Single-family credit statistics1 1 In November 2008, Freddie Mac temporarily suspended foreclosure transfers of occupied homes and evictions until January 31, 2009. The suspension of evictions was subsequently extended until April 1, 2009. On February 13, 2009, Freddie Mac temporarily suspended fore
Slide 13: 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 14: Single-family 1Q 2009 credit losses & 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 15: 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 16: 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 17: 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 18: 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 19: 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 20: Total single-family portfolio cumulative default rates by book year
Total Single-family portfolio cumulative default rates by book year Note: Excludes certain Structured Transactions. Book year indicates year of loan origination.
Slide 21: Single-family foreclosure alternatives
Single-family foreclosure alternatives Working with FHFA, the company has significantly increased its loan modification and foreclosure prevention efforts since entering into Conservatorship. Beginning March 7, 2009, the company suspended foreclosure transfers of occupied homes where the borrower is
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