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 2008 Earnings Presentation
22 slides from Freddie Mac's earnings presentation, Mar 11, 2009
Slide 1: Fourth Quarter 2008 Financial Results Supplement
Fourth Quarter 2008 Financial Results Supplement March 11, 2009
Slide 2: Table of contents
Bist er aa Table of contents Slide: 3+ GAAP Financial Results 40- National Home Prices 4- Stockholders’ Equity and Purchase Agreement with Treasury 11 State by State Home Prices 5- Business Revenues 12- Single-Family Credit Statistics 6 Reserve for Loan Losses. 413 Single-Family Credit Losses by Boo
Slide 3: GAAP financial results
GAAP financial results Line 1: 4Q 2008 Net interest income increased partially due to a $389 million increase in accretion income associated with other-than-temporary impairments recognized in prior periods. Line 3: The company incurred significant net mark-to-market losses on its derivative portfol
Slide 4: Stockholders' equity and Purchase Agreement with Treasury
Stockholders' equity and Purchase Agreement with Treasury 1 Fourth quarter 2008 Dividends and other, net includes an initial cash dividend payment of $172 million to the U.S. Department of the Treasury (Treasury) on December 31, 2008 for the period from September 8, 2008 through December 31, 2008, o
Slide 5: Business revenues
Business revenues 1 Represents period-end unpaid principal balance (UPB). 2 Fully taxable-equivalent basis. 2 1 2 1
Slide 6: Reserve for loan losses
Reserve for loan losses $619 $803 $1,138 $2,312 $3,872 $10,220 $15,618 $63 $75 $111 $320 $545 $942 $863 $1,240 $2,537 $5,702 $6,953 $5,813 $2,822 $37 $44 $787 $1,372 $447 $248 $160 0.53% 0.81% 0.04% 0.05% 0.07% 0.16% 0.21% 0.30% 0.13% $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $1
Slide 7: Quarterly mark-to-market items
Quarterly mark-to-market items Line 1: Declines in swap interest rates resulted in fair value losses in the net pay-fixed swaps portfolio, partially offset by gains on swaptions. Line 2: Declines in interest rates resulted in mark-to-market losses on the company's guarantee asset. Line 3: Net gains
Slide 8: Summary of AFS security impairments
Summary of AFS security impairments 1 Represents UPB as of December 31, 2008. 2 Accretable balance as of December 31, 2008. Assumes full accretion back to earnings. Actual results may vary and amounts realized may be materially less than indicated. Factors that could influence amounts realized inclu
Slide 9: Credit Supplement
Bis Dh “W444 Credit Supplement
Slide 10: National Home Prices Have Experienced a Cumulative Decline of 16.8% Since 3Q 2006
National Home Prices Have Experienced a Cumulative Decline of 16.8% Since 3Q 20061 1 National home prices use the internal Freddie Mac index, which is value-weighted based on Freddie Mac's single-family portfolio. Source: Freddie Mac.
Slide 11: States and Washington, DC had Home Price Declines from 4Q 2007 to 4Q 2008
49 States and Washington, DC had Home Price Declines from 4Q 2007 to 4Q 20081 -3.3 - -3.4 - -2.0 - -25.9 - -25.7 - -3.2 RI -13.0 CT -7.2 DC -6.2 - -8.1 - -25.2 - -10.4 - -7.1 - -0.8 - -9.5 - -8.8 - -5.2 - -1.4 - -0.3 - -5.0 - -7.2 - -13.0 - -3.4 - -15.0 - -9.9 - -6.0 -4.9 - -1.8 - -3.0 1.7 - -1.8 -
Slide 12: Single-family credit statistics
Single-family credit statistics1 1 In November 2008, Freddie Mac temporarily suspended foreclosure sales 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 foreclosure sales until Mar
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 Annualized total credit losses in basis
Slide 14: Single-family 4Q 2008 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 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 opera
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. 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. 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% Yr1-Q1 Yr1-Q4 Yr2-Q3 Yr3-Q2 Yr4-Q1 Yr4-Q4 Yr5-Q3 Yr6-Q2 Yr7-Q1 Yr7-Q4 Yr8-Q3 Yr9-Q2 Quarter Post Origi
Slide 21: Single-family foreclosure alternatives
In 2008, Freddie Mac undertook a number of initiatives to help slow the pace of foreclosures and encourage more loan workouts: Implemented the "Streamlined Modification Program" to fast-track loan modifications to certain troubled borrowers that could help reduce their monthly payment. Temporarily s
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