Freddie Mac : Financial Results Supplement, 10/30/19

Third Quarter 2019 Financial Results Supplement

October 30, 2019

Financial Highlights
Comprehensive Income
$ Billions					▪ Comprehensive income of $1.8 billion,
$2.6					unchanged from the prior quarter, driven by
					strong and consistent business
			$1.8	$1.8	performance.
		$1.7
	$1.5
3Q18	4Q18	1Q19	2Q19	3Q19
Adjusted Net Interest Income			▪ Adjusted net interest income declined from
and Adjusted Guarantee Fee Income		the prior quarter, primarily driven by higher
$ Billions
				amortization expense resulting from an
			$2.1	$2.3	increase in loan prepayments combined
$1.9	$1.8	$1.8		with a decrease in interest income on
$1.1	$1.1				unsecuritized loans.
$1.0	$1.0	$0.8	▪ Adjusted guarantee fee income increased
					from the prior quarter, primarily driven by
3Q18	4Q18	1Q19	2Q19	3Q19	higher amortization of single-family upfront
fees resulting from an increase in loan
	Adjusted net interest income1	Adjusted guarantee fee income1	prepayments.

Note: Totals may not add due to rounding.

© Freddie Mac

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Total Portfolio Balances

Total guarantee portfolio2

Portfolio balance highlights

$ Billions				6% YoY	▪	Total guarantee portfolio:
				increase
$2,101	$2,133	$2,157	$2,184	$2,221		• Single-family - grew $86 billion, or 5%, year-over-
$260		year.
$237	$243	$249
$226		• Multifamily - grew $34 billion, or 15%, year-over-
$1,875	$1,896	$1,914	$1,935	$1,961		year.
▪
9/30/2018	12/31/2018	3/31/2019	6/30/2019	9/30/2019	Total investments portfolio:
	• Mortgage-related investments portfolio - decreased
						$6 billion, or 3%, year-over-year.

Single-family credit guarantee portfolio

Multifamily guarantee portfolio3

Total investments portfolio	Total debt outstanding		Purchase Agreement
		4,5
$ Billions	$ Billions			2019 Debt Cap $300B
	2.9	2.9	2.6	2.6	2.5

				0.3% YoY
				increase
$311	$281	$296	$302	$312		$281	$256	$273	$280	$282
$83	$77	$83	$90		10%	10%	12%	10%	9%
$63		36%	37%	34%	32%	39%
					FHFA	39%	42%	37%	45%	37%
$228	$218	$219	$219	$222	2019 Limit
$225B*	15%	11%	17%	13%	15%
						9/30/2018	12/31/2018	3/31/2019	6/30/2019	9/30/2019
9/30/2018	12/31/2018	3/31/2019	6/30/2019	9/30/2019

					Discount notes		Callable debt
	Mortgage-related investments portfolio2,4			Non-callable debt		Other
	Other investments portfolio
				Weighted average maturity in years

Note: Totals may not add due to rounding.

*In February 2019, FHFA directed the company to maintain the mortgage-related investments portfolio at or below $225 billion at all times.

© Freddie Mac

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Conservatorship Matters

Treasury draws and dividend payments

$ Billions

				$119.7
$101.5
$71.3				6
			$71.6
	$10.9	$4.1	$3.1
	$0.3
2008-2016	2017	2018	YTD 2019*	Cumulative
				Total

Draws from Treasury

Dividend payments to Treasury

• Pursuant to the September 2019 Letter Agreement, the company will not have a dividend requirement on the senior preferred stock until its Net Worth Amount exceeds $20.0 billion. The company's Net Worth Amount was $6.7 billion at September 30, 2019.

Note: Totals may not add due to rounding.

*As of September 30, 2019.

© Freddie Mac

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Key Economic Indicators

National home prices increased by an average of 3.4%	Quarterly ending interest rates
over the past year	4.72%	4.55%
		4.06%
			3.73%	3.64%
	3.11%
	2.72%
		2.41%
			1.96%
				1.57%
	9/30/2018	12/31/2018	3/31/2019	6/30/2019	9/30/2019

30-year Primary Mortgage Market Survey (PMMS)

10-year LIBOR

Unemployment rate and job creation
3.7%	3.9%	3.8%	3.7%	3.5%
National home prices have surpassed the 2006 peak	233,000
189,000	174,000	152,000	157,000
196
168 (2006 Peak)
3Q18	4Q18	1Q19	2Q19	3Q19

										Freddie Mac House Price Index (December 2000 = 100)
2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019					Average monthly net new jobs (non-farm)
				National unemployment rate (as of the last month in
						United States (Not Seasonally Adjusted)								each quarter)

© Freddie Mac

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