FEDERAL HOME LOAN MORTGAGE CORP - FORM 8-K - EX-99.2 - EXHIBIT 99.2

Attached files

file	filename
8-K - 8-K - FEDERAL HOME LOAN MORTGAGE CORP	f71165e8vk.htm
EX-99.3 - EXHIBIT 99.3 - FEDERAL HOME LOAN MORTGAGE CORP	f71165exv99w3.htm
EX-99.1 - EXHIBIT 99.1 - FEDERAL HOME LOAN MORTGAGE CORP	f71165exv99w1.htm

Exhibit 99.2


FREDDIE MAC THIRD QUARTER 2009 FINANCIAL RESULTS FINANCIAL STATEMENTS AND CORE TABLES

TABLE OF CONTENTS


Table		GAAP Financial Statements	Page

		Consolidated Statements of Operations		2
		Consolidated Balance Sheets		3
		Consolidated Statements of Equity (Deficit)		4


		GAAP Financial Results


	1A	Net Interest Yield Analysis		5
	1B	Net Interest Income		6
	2	Non-Interest Income (Loss)		7
	3	Management and Guarantee Income & Related Information		8
	4	Derivatives Not in Hedge Accounting Relationships		9
	5	Non-Interest Expense		10
	6	Credit Quality Indicators		11
	7	Single-Family Non-Credit-Enhanced Delinquency and Foreclosure Activity by Region		12
	8	Real Estate Owned (REO) Activity		13

FREDDIE MAC
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)


					Three Months Ended September 30,						Nine Months Ended September 30,
Line:					2009			2008			2009			2008
					(dollars in millions, except
					share-related amounts)
		Interest income
	1		Investments in securities		$	8,080		$	8,718		$	25,574		$	25,767
	2		Mortgage loans			1,740			1,361			5,041			3,924
	3		Other			45			390			214			894

	4			Total interest income		9,865			10,469			30,829			30,585

		Interest expense
	5		Short-term debt			(333	)		(1,468	)		(2,026	)		(5,149	)
	6		Long-term debt			(4,792	)		(6,795	)		(15,367	)		(20,231	)

	7			Total interest expense		(5,125	)		(8,263	)		(17,393	)		(25,380	)
	8		Expense related to derivatives			(278	)		(362	)		(860	)		(1,034	)

	9	Net interest income				4,462			1,844			12,576			4,171

		Non-interest income (loss)
	10		Management and guarantee income (includes interest on guarantee asset of $235, $299, $735 and $757, respectively)			800			832			2,290			2,378
	11		Gains (losses) on guarantee asset			580			(1,722	)		2,241			(2,002	)
	12		Income on guarantee obligation			814			783			2,685			2,721
	13		Derivative gains (losses)			(3,775	)		(3,080	)		(1,233	)		(3,210	)
			Gains (losses) on investments:
				Impairment-related:
	14			Total other-than-temporary impairment of available-for-sale securities		(4,199	)		(9,106	)		(21,802	)		(10,217	)
	15			Portion of other-than-temporary impairment recognized in AOCI		3,012			—			11,272			—

	16			Net impairment of available-for-sale securities recognized in earnings		(1,187	)		(9,106	)		(10,530	)		(10,217	)
	17			Other gains (losses) on investments		2,605			(641	)		5,588			(1,638	)

	18		Total gains (losses) on investments			1,418			(9,747	)		(4,942	)		(11,855	)
	19		Gains (losses) on debt recorded at fair value			(238	)		1,500			(568	)		684
	20		Gains (losses) on debt retirement			(215	)		36			(475	)		312
	21		Recoveries on loans impaired upon purchase			109			91			229			438
	22		Low-income housing tax credit partnerships			(479	)		(121	)		(752	)		(346	)
	23		Trust management income (expense)			(155	)		4			(600	)		(12	)
	24		Other income			59			21			170			159

	25	Non-interest income (loss)				(1,082	)		(11,403	)		(955	)		(10,733	)

		Non-interest expense
	26		Salaries and employee benefits			(230	)		(133	)		(658	)		(605	)
	27		Professional services			(91	)		(61	)		(215	)		(188	)
	28		Occupancy expense			(16	)		(16	)		(49	)		(49	)
	29		Other administrative expenses			(96	)		(98	)		(266	)		(267	)

	30			Total administrative expenses		(433	)		(308	)		(1,188	)		(1,109	)
	31		Provision for credit losses			(7,577	)		(5,702	)		(21,567	)		(9,479	)
	32		Real estate owned operations income (expense)			96			(333	)		(219	)		(806	)
	33		Losses on loans purchased			(531	)		(252	)		(3,742	)		(423	)
	34		Securities administrator loss on investment activity			—			(1,082	)		—			(1,082	)
	35		Other expenses			(97	)		(89	)		(272	)		(284	)

	36	Non-interest expense				(8,542	)		(7,766	)		(26,988	)		(13,183	)

	37	Income (loss) before income tax benefit (expense)				(5,162	)		(17,325	)		(15,367	)		(19,745	)
	38	Income tax benefit (expense)				149			(7,970	)		1,270			(6,518	)

	39	Net (loss)			$	(5,013	)	$	(25,295	)	$	(14,097	)	$	(26,263	)
	40		Less: Net (income) loss attributable to noncontrolling interest			1			—			2			(4	)

	41	Net (loss) attributable to Freddie Mac			$	(5,012	)	$	(25,295	)	$	(14,095	)	$	(26,267	)

	42		Preferred stock dividends			(1,293	)		(6	)		(2,813	)		(509	)
	43		Amount allocated to participating security option holders			—			—			—			(1	)

	44	Net loss attributable to common stockholders			$	(6,305	)	$	(25,301	)	$	(16,908	)	$	(26,777	)

		Loss per common share:
	45		Basic		$	(1.94	)	$	(19.44	)	$	(5.20	)	$	(30.90	)
	46		Diluted		$	(1.94	)	$	(19.44	)	$	(5.20	)	$	(30.90	)
		Weighted average common shares outstanding (in thousands):
	47		Basic			3,253,172			1,301,430			3,254,261			866,472
	48		Diluted			3,253,172			1,301,430			3,254,261			866,472
	49	Dividends per common share			$	—		$	—		$	—		$	0.50

FREDDIE MAC
CONSOLIDATED BALANCE SHEETS
(unaudited)


				September 30,			December 31,
Line:				2009			2008
				(dollars in millions, except
				share-related amounts)
		Assets
	1	Cash and cash equivalents		$	55,620		$	45,326
	2	Restricted cash			1,698			953
	3	Federal funds sold and securities purchased under agreements to resell			9,550			10,150
		Investments in securities:
	4		Available-for-sale, at fair value (includes $11,594 and $21,302, respectively, pledged as collateral that may be repledged)		402,774			458,898
	5		Trading, at fair value		235,859			190,361

	6		Total investments in securities		638,633			649,259
		Mortgage loans:
	7		Held-for-sale, at lower-of-cost-or-fair-value (except $1,572 and $401 at fair value, respectively)		12,801			16,247
	8		Held-for-investment, at amortized cost (net of allowances for loan losses of $974 and $690, respectively)		109,990			91,344

	9		Total mortgage loans, net		122,791			107,591
	10	Accounts and other receivables, net			6,070			6,337
	11	Derivative assets, net			162			955
	12	Guarantee asset, at fair value			8,722			4,847
	13	Real estate owned, net			4,234			3,255
	14	Deferred tax assets, net			12,443			15,351
	15	Low-income housing tax credit partnerships equity investments			3,402			4,145
	16	Other assets			3,276			2,794

	17		Total assets	$	866,601		$	850,963


		Liabilities and equity (deficit)
		Liabilities
	18	Accrued interest payable		$	4,341		$	6,504
		Debt, net:
	19		Short-term debt (includes $6,421 and $1,638 at fair value, respectively)		365,414			435,114
	20		Long-term debt (includes $2,661 and $11,740 at fair value, respectively)		438,367			407,907

	21		Total debt, net		803,781			843,021
	22	Guarantee obligation			12,215			12,098
	23	Derivative liabilities, net			949			2,277
	24	Reserve for guarantee losses on Participation Certificates			28,604			14,928
	25	Other liabilities			6,305			2,769

	26		Total liabilities		856,195			881,597

	27	Commitments and contingencies
		Equity (deficit)

		Freddie Mac stockholders’ equity (deficit)
	28		Senior preferred stock, at redemption value		51,700			14,800
	29		Preferred stock, at redemption value		14,109			14,109
	30		Common stock, $0.00 par value, 4,000,000,000 shares authorized, 725,863,886 shares issued and 648,335,201 shares and 647,260,293 shares outstanding, respectively		—			—
	31		Additional paid-in capital		50			19
	32		Retained earnings (accumulated deficit)		(25,171	)		(23,191	)
			Accumulated other comprehensive income (loss), or AOCI, net of taxes, related to:
	33		Available-for-sale securities (includes $17,837, net of taxes, of other-than-temporary impairments at September 30, 2009)		(23,108	)		(28,510	)
	34		Cash flow hedge relationships		(3,084	)		(3,678	)
	35		Defined benefit plans		(163	)		(169	)

	36		Total AOCI, net of taxes		(26,355	)		(32,357	)
	37		Treasury stock, at cost, 77,528,685 shares and 78,603,593 shares, respectively		(4,022	)		(4,111	)

	38		Total Freddie Mac stockholders’ equity (deficit)		10,311			(30,731	)
	39	Noncontrolling interest			95			97

	40		Total equity (deficit)		10,406			(30,634	)

	41		Total liabilities and equity (deficit)	$	866,601		$	850,963

FREDDIE MAC
CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT)
(unaudited)


			Nine Months Ended September 30,
			2009						2008
Line:			Shares			Amount			Shares			Amount
			(in millions)
		Senior preferred stock, at redemption value
	1	Balance, beginning of year		1		$	14,800			—		$	—
	2	Senior preferred stock issuance		—			—			1			1,000
	3	Increase in liquidation preference		—			36,900			—			—

	4	Senior preferred stock, end of period		1			51,700			1			1,000

		Preferred stock, at redemption value
	5	Balance, beginning of year		464			14,109			464			14,109

	6	Preferred stock, end of period		464			14,109			464			14,109

		Common stock, at par value
	7	Balance, beginning of year		726			—			726			152
	8	Adjustment to par value		—			—			—			(152	)

	9	Common stock, end of period		726			—			726			—

		Additional paid-in capital
	10	Balance, beginning of year					19						871
	11	Stock-based compensation					49						60
	12	Income tax benefit from stock-based compensation					7						(13	)
	13	Common stock issuances					(88	)					(60	)
	14	Real Estate Investment Trust preferred stock repurchase					—						4
	15	Adjustment to common stock par value					—						152
	16	Common stock warrant issuance					—						2,304
	17	Commitment from the U.S. Department of the Treasury					—						(3,304	)
	18	Transfer from retained earnings (accumulated deficit)					63						—

	19	Additional paid-in capital, end of period					50						14

		Retained earnings (accumulated deficit)
	20	Balance, beginning of year					(23,191	)					26,909
	21	Cumulative effect of change in accounting principle, net of taxes					—						1,023

	22	Balance, beginning of year, as adjusted					(23,191	)					27,932
	23	Cumulative effect of change in accounting principle, net of taxes					14,996						—
	24	Net loss attributable to Freddie Mac					(14,095	)					(26,267	)
	25	Senior preferred stock dividends declared					(2,813	)					—
	26	Preferred stock dividends declared					—						(503	)
	27	Common stock dividends declared					—						(323	)
	28	Dividend equivalent payments on expired stock options					(5	)					(6	)
	29	Transfer to additional paid-in capital					(63	)					—

	30	Retained earnings (accumulated deficit), end of period					(25,171	)					833

		AOCI, net of taxes
	31	Balance, beginning of year					(32,357	)					(11,143	)
	32	Cumulative effect of change in accounting principle, net of taxes					—						(850	)

	33	Balance, beginning of year, as adjusted					(32,357	)					(11,993	)
	34	Cumulative effect of change in accounting principle, net of taxes					(9,931	)					—
	35	Changes in unrealized gains (losses) related to available-for-sale securities, net of reclassification adjustments					15,333						(14,143	)
	36	Changes in unrealized gains (losses) related to cash flow hedge relationships, net of reclassification adjustments					594						501
	37	Changes in defined benefit plans					6						1

	38	AOCI, net of taxes, end of period					(26,355	)					(25,634	)

		Treasury stock, at cost
	39	Balance, beginning of year		79			(4,111	)		80			(4,174	)
	40	Common stock issuances		(1	)		89			(1	)		57

	41	Treasury stock, end of period		78			(4,022	)		79			(4,117	)

		Noncontrolling interest
	42	Balance, beginning of year					97						181
	43	Net income (loss) attributable to noncontrolling interest					(2	)					4
	44	Real Estate Investment Trust preferred stock repurchase					—						(82	)
	45	Dividends and other					—						(6	)

	46	Noncontrolling interest, end of period					95						97


	47	Total equity (deficit)				$	10,406					$	(13,698	)

		Comprehensive income (loss)
	48	Net loss				$	(14,097	)				$	(26,263	)
	49	Changes in other comprehensive income (loss), net of taxes, net of reclassification adjustments					15,933						(13,641	)

	50	Comprehensive income (loss)					1,836						(39,904	)
	51	Less: Comprehensive (income) loss attributable to noncontrolling interest					2						(4	)

	52	Total comprehensive income (loss) attributable to Freddie Mac				$	1,838					$	(39,908	)

FREDDIE MAC
NET INTEREST YIELD ANALYSIS
TABLE 1A
(unaudited)
(dollars in millions)


																								Nine Months Ended September 30,
Line:			1Q 2008			2Q 2008			3Q 2008			4Q 2008			1Q 2009			2Q 2009			3Q 2009			2008			2009
		Net Interest Income:

	1	Net interest income	$	798		$	1,529		$	1,844		$	2,625		$	3,859		$	4,255		$	4,462		$	4,171		$	12,576
	2	Fully taxable-equivalent adjustments⁽¹⁾		107			105			98			94			102			99			95			310			296

	3	Net interest income (fully taxable-equivalent basis)	$	905		$	1,634		$	1,942		$	2,719		$	3,961		$	4,354		$	4,557		$	4,481		$	12,872

		Average Balances:


	4	Mortgage loans⁽²⁾	$	84,291		$	89,813		$	95,174		$	105,316		$	118,555		$	127,863		$	129,721		$	89,760		$	125,379
	5	Mortgage-related securities⁽³⁾		628,721			664,727			676,197			677,379			698,464			702,693			663,744			656,548			688,301

	6	Total mortgage-related investments portfolio		713,012			754,540			771,371			782,695			817,019			830,556			793,465			746,308			813,680
	7	Non-mortgage-related securities⁽³⁾		30,565			26,935			11,658			9,869			11,197			16,594			19,282			23,053			15,691
	8	Cash and cash equivalents		8,891			27,126			35,735			40,799			49,932			57,401			48,403			23,917			51,912
	9	Federal funds sold and securities purchased under agreements to resell		14,435			20,660			29,379			27,599			33,605			29,542			29,256			21,491			30,801

	10	Total interest-earning assets		766,903			829,261			848,143			860,962			911,753			934,093			890,406			814,769			912,084
	11	Short-term debt		204,650			240,119			241,150			292,357			362,566			293,475			256,324			228,640			304,122
	12	Long-term debt		538,295			569,443			589,377			547,931			521,151			582,998			570,863			565,705			558,337

	13	Total interest-bearing liabilities		742,945			809,562			830,527			840,288			883,717			876,473			827,187			794,345			862,459
	14	Net non-interest-bearing funding		23,958			19,699			17,616			20,674			28,036			57,620			63,219			20,424			49,625

	15	Total funding of interest-earning assets	$	766,903		$	829,261		$	848,143		$	860,962		$	911,753		$	934,093		$	890,406		$	814,769		$	912,084

		Yield/Cost:


	16	Mortgage loans		5.90	%		5.88	%		5.72	%		5.49	%		5.33	%		5.38	%		5.37	%		5.83	%		5.36	%
	17	Mortgage-related securities		5.17			5.04			5.08			5.41			5.02			4.69			4.78			5.10			4.83
	18	Total mortgage-related investments portfolio		5.26			5.14			5.16			5.42			5.06			4.79			4.88			5.19			4.91
	19	Non-mortgage-related securities		4.10			3.31			4.40			5.67			7.53			6.96			2.99			3.84			5.47
	20	Cash and cash equivalents		3.90			2.60			2.51			1.17			0.61			0.42			0.28			2.72			0.44
	21	Federal funds sold and securities purchased under agreements to resell		3.31			2.29			2.18			0.36			0.22			0.17			0.15			2.47			0.18
	22	Yield on total interest-earning assets		5.16			4.93			4.93			5.06			4.67			4.42			4.43			5.00			4.51
	23	Short-term debt		(3.95	)		(2.70	)		(2.38	)		(2.21	)		(1.24	)		(0.77	)		(0.51	)		(2.96	)		(0.88	)
	24	Long-term debt		(4.99	)		(4.71	)		(4.60	)		(4.59	)		(4.12	)		(3.57	)		(3.35	)		(4.76	)		(3.67	)
	25	Cost of interest-bearing liabilities		(4.70	)		(4.11	)		(3.96	)		(3.76	)		(2.94	)		(2.63	)		(2.48	)		(4.24	)		(2.68	)
	26	Expense related to derivatives		(0.18	)		(0.17	)		(0.18	)		(0.15	)		(0.13	)		(0.13	)		(0.13	)		(0.17	)		(0.13	)
	27	Impact of net non-interest-bearing funding		0.15			0.10			0.09			0.09			0.09			0.17			0.19			0.11			0.15
	28	Total funding of interest-earning assets		(4.73	)		(4.18	)		(4.05	)		(3.82	)		(2.98	)		(2.59	)		(2.42	)		(4.30	)		(2.66	)
	29	Net interest yield		0.43			0.75			0.88			1.24			1.69			1.83			2.01			0.70			1.85
	30	Fully taxable-equivalent adjustments⁽¹⁾		0.05			0.05			0.05			0.04			0.05			0.04			0.04			0.05			0.04
	31	Net interest yield (fully taxable-equivalent basis)		0.48	%		0.80	%		0.93	%		1.28	%		1.74	%		1.87	%		2.05	%		0.75	%		1.89	%


(1)		The determination of net interest income/yield (fully taxable-equivalent basis), which reflects fully taxable-equivalent adjustments to interest income, involves the conversion of tax-exempt sources of interest income to the equivalent amounts of interest income that would be necessary to derive the same net return if the investments had been subject to income taxes using our federal statutory tax rate of 35%.
(2)		Non-performing loans, where interest income is recognized when collected, are included in average balances.
(3)		For securities, we calculate average balances based on their unpaid principal balance plus their associated deferred fees and costs (e.g., premiums and discounts), but exclude the effects of mark-to-fair-value changes.

FREDDIE MAC
NET INTEREST INCOME
TABLE 1B
(unaudited)
(dollars in millions)


																											Nine Months Ended September 30,
Line:						1Q 2008			2Q 2008			3Q 2008			4Q 2008			1Q 2009			2Q 2009			3Q 2009			2008			2009
		Net Interest Income:
	1	Contractual amounts of net interest income				$	1,511		$	2,267		$	2,529		$	2,694		$	4,046		$	4,874		$	4,990		$	6,307		$	13,910
		Amortization income (expense), net:⁽¹⁾
	2		Accretion of impairments on available-for-sale securities⁽²⁾				—			—			81			470			715			253			114			81			1,082
	3		Asset-related amortization				(58	)		(90	)		(135	)		24			(385	)		(391	)		(173	)		(283	)		(949	)
	4		Long-term debt-related amortization				(326	)		(305	)		(269	)		(248	)		(217	)		(199	)		(191	)		(900	)		(607	)

	5				Total amortization income (expense), net		(384	)		(395	)		(323	)		246			113			(337	)		(250	)		(1,102	)		(474	)
		Expense related to derivatives:
	6		Amortization of deferred balances in AOCI⁽³⁾				(327	)		(307	)		(308	)		(315	)		(300	)		(282	)		(278	)		(942	)		(860	)
			Accrual of periodic settlements of derivatives:⁽⁴⁾
	7			Pay-fixed swaps			(2	)		(36	)		(54	)		—			—			—			—			(92	)		—

	8				Total accrual of periodic settlements of derivatives		(2	)		(36	)		(54	)		—			—			—			—			(92	)		—

	9	Total expense related to derivatives					(329	)		(343	)		(362	)		(315	)		(300	)		(282	)		(278	)		(1,034	)		(860	)

	10	Net interest income					798			1,529			1,844			2,625			3,859			4,255			4,462			4,171			12,576
	11	Fully taxable-equivalent adjustments					107			105			98			94			102			99			95			310			296

	12	Net interest income (fully taxable-equivalent basis)				$	905		$	1,634		$	1,942		$	2,719		$	3,961		$	4,354		$	4,557		$	4,481		$	12,872


(1)	Represents amortization related to premiums, discounts, deferred fees and other adjustments to the carrying value of our financial instruments and the reclassification of previously deferred balances from AOCI for certain derivatives in cash flow hedge relationships related to individual debt issuances and mortgage purchase transactions.
(2)	The portion of the impairment charges recognized in earnings expected to be recovered is recognized as net interest income.
(3)	Represents changes in fair value of derivatives in cash flow hedge relationships that were previously deferred in AOCI and have been reclassified to earnings as the associated hedged forecasted issuance of debt and mortgage purchase transactions affect earnings.
(4)	Reflects the accrual of periodic cash settlements of all derivatives in qualifying hedge accounting relationships.

FREDDIE MAC
NON-INTEREST INCOME (LOSS)
TABLE 2
(unaudited)
(dollars in millions)


																											Nine Months Ended September 30,
Line:						1Q 2008			2Q 2008			3Q 2008			4Q 2008			1Q 2009			2Q 2009			3Q 2009			2008			2009

		Non-Interest Income (Loss):

	1	Management and guarantee income				$	789		$	757		$	832		$	992		$	780		$	710		$	800		$	2,378		$	2,290
	2	Gains (losses) on guarantee asset					(1,394	)		1,114			(1,722	)		(5,089	)		(156	)		1,817			580			(2,002	)		2,241
	3	Income on guarantee obligation					1,169			769			783			2,105			910			961			814			2,721			2,685
		Derivative gains (losses):
			Foreign-currency denominated derivatives gains (losses):⁽¹⁾
	4			Foreign-currency swaps gains (losses)			1,237			(48	)		(1,578	)		(195	)		(573	)		583			238			(389	)		248
	5			Receive-fixed swaps — foreign-currency denominated gains (losses)			193			(490	)		228			558			187			(63	)		(2	)		(69	)		122
	6		U.S. dollar denominated derivatives gains (losses)				(1,330	)		1,020			(1,448	)		(11,806	)		1,302			2,688			(2,880	)		(1,758	)		1,110
	7		Accrual of periodic settlements				(345	)		(367	)		(282	)		(301	)		(735	)		(847	)		(1,131	)		(994	)		(2,713	)

	8				Total derivative gains (losses)		(245	)		115			(3,080	)		(11,744	)		181			2,361			(3,775	)		(3,210	)		(1,233	)
		Gains (losses) on investments:
	9		Gains (losses) on trading securities				971			(2,279	)		(932	)		3,195			2,131			622			2,211			(2,240	)		4,964
	10		Gains (losses) on sale of mortgage loans				71			(5	)		31			20			151			143			282			97			576
	11		Gains (losses) on sale of available-for-sale securities				215			38			287			6			51			205			473			540			729
		Impairment-related⁽²⁾:
	12		Total other-than-temporary impairment of available-for-sale securities				(71	)		(1,040	)		(9,106	)		(7,465	)		(7,130	)		(10,473	)		(4,199	)		(10,217	)		(21,802	)
	13		Portion of other-than-temporary impairment recognized in AOCI				—			—			—			—			—			8,260			3,012			—			11,272

	14			Net impairment of available-for-sale securities recognized in earnings			(71	)		(1,040	)		(9,106	)		(7,465	)		(7,130	)		(2,213	)		(1,187	)		(10,217	)		(10,530	)
	15		Lower-of-cost-or-fair-value adjustments				33			(41	)		(20	)		(2	)		(129	)		(102	)		(360	)		(28	)		(591	)
	16		Gains (losses) on mortgage loans elected at fair value				—			—			(7	)		(7	)		(18	)		(71	)		(1	)		(7	)		(90	)

	17			Total gains (losses) on investments			1,219			(3,327	)		(9,747	)		(4,253	)		(4,944	)		(1,416	)		1,418			(11,855	)		(4,942	)
		Gains (losses) on debt recorded at fair value:⁽¹⁾
	18		Translation gains (losses)				(1,214	)		88			1,665			171			580			(655	)		(240	)		539			(315	)
	19		Market value adjustments				(171	)		481			(165	)		(449	)		(113	)		(142	)		2			145			(253	)

	20			Total gains (losses) on debt recorded at fair value			(1,385	)		569			1,500			(278	)		467			(797	)		(238	)		684			(568	)

	21	Gains (losses) on debt retirement					305			(29	)		36			(103	)		(104	)		(156	)		(215	)		312			(475	)
	22	Recoveries on loans impaired upon purchase					226			121			91			57			50			70			109			438			229
	23	Low-income housing tax credit partnerships					(117	)		(108	)		(121	)		(107	)		(106	)		(167	)		(479	)		(346	)		(752	)
	24	Trust management income (expense)					3			(19	)		4			(58	)		(207	)		(238	)		(155	)		(12	)		(600	)
	25	Other income					44			94			21			36			41			70			59			159			170

	26			Total non-interest income (loss)		$	614		$	56		$	(11,403	)	$	(18,442	)	$	(3,088	)	$	3,215		$	(1,082	)	$	(10,733	)	$	(955	)


(1)		On January 1, 2008 we adopted the accounting standards on the fair value option for financial assets and financial liabilities (FASB ASC 825-10-15-4). We initially elected the fair value option for our foreign-currency denominated debt. Due to this election, foreign currency exposure is a component of gains (losses) on debt recorded at fair value. We use a combination of foreign-currency swaps and foreign-currency denominated receive-fixed swaps to hedge the changes in fair value of our foreign-currency denominated debt related to fluctuations in exchange rates and interest rates.
(2)		We adopted an amendment to the accounting standards for investments in debt and equity securities (FASB ASC 320-10-65-1) effective April 1, 2009. See “NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Change in Accounting Principles” to our consolidated financial statements for further information.

FREDDIE MAC
MANAGEMENT AND GUARANTEE INCOME & RELATED INFORMATION
TABLE 3
(unaudited)
(dollars in millions)


																								Nine Months Ended September 30,
Line:			1Q 2008			2Q 2008			3Q 2008			4Q 2008			1Q 2009			2Q 2009			3Q 2009			2008			2009
		Management and Guarantee Income:
	1	Contractual management and guarantee fees	$	757		$	778		$	796		$	793		$	782		$	776		$	765		$	2,331		$	2,323
	2	Amortization of deferred fees included in other liabilities⁽¹⁾		32			(21	)		36			199			(2	)		(66	)		35			47			(33	)

	3	Total management and guarantee income	$	789		$	757		$	832		$	992		$	780		$	710		$	800		$	2,378		$	2,290

	4	Contractual management and guarantee fees		17.4 bp			17.5 bp			17.6 bp			17.5 bp			17.4 bp			17.3 bp			16.8 bp			17.5 bp			17.2 bp
	5	Amortization of deferred fees included in other liabilities		0.8			(0.5)			0.8			4.4			0.0			(1.5)			0.8			0.4			(0.3)

	6	Total management and guarantee income		18.2 bp			17.0 bp			18.4 bp			21.9 bp			17.4 bp			15.8 bp			17.6 bp			17.9 bp			16.9 bp

	7	Unamortized balance of deferred fees included in other liabilities, at period end⁽¹⁾	$	379		$	403		$	371		$	176		$	181		$	250		$	218		$	371		$	218


		Gains (Losses) on Guarantee Asset:
	8	Contractual management and guarantee fees	$	(689	)	$	(720	)	$	(730	)	$	(732	)	$	(733	)	$	(731	)	$	(729	)	$	(2,139	)	$	(2,193	)
	9	Portion attributable to imputed interest income		215			243			299			364			249			251			235			757			735

	10	Return of investment on guarantee asset		(474	)		(477	)		(431	)		(368	)		(484	)		(480	)		(494	)		(1,382	)		(1,458	)
	11	Change in fair value of future management and guarantee fees		(920	)		1,591			(1,291	)		(4,721	)		328			2,297			1,074			(620	)		3,699

	12	Gains (losses) on guarantee asset	$	(1,394	)	$	1,114		$	(1,722	)	$	(5,089	)	$	(156	)	$	1,817		$	580		$	(2,002	)	$	2,241


		Changes in Guarantee Asset:
	13	Beginning balance	$	9,591		$	9,134		$	11,019		$	9,679		$	4,847		$	5,026		$	7,576		$	9,591		$	4,847
	14	Additions, net		937			858			382			262			339			741			566			2,177			1,646
	15	Other		—			(87	)		—			(5	)		(4	)		(8	)		—			(87	)		(12	)
	16	Gains (losses) on guarantee asset		(1,394	)		1,114			(1,722	)		(5,089	)		(156	)		1,817			580			(2,002	)		2,241

	17	Ending balance	$	9,134		$	11,019		$	9,679		$	4,847		$	5,026		$	7,576		$	8,722		$	9,679		$	8,722

		Changes in Guarantee Obligation:
	18	Beginning balance	$	13,712		$	13,669		$	14,022		$	13,874		$	12,098		$	11,759		$	11,956		$	13,712		$	12,098
	19	Deferred guarantee income of newly-issued guarantees		1,132			1,255			638			341			584			1,177			1,075			3,025			2,836
	20	Other⁽²⁾		(6	)		(133	)		(3	)		(12	)		(13	)		(19	)		(2	)		(142	)		(34	)
	21	Income on guarantee obligation		(1,169	)		(769	)		(783	)		(2,105	)		(910	)		(961	)		(814	)		(2,721	)		(2,685	)

	22	Ending balance	$	13,669		$	14,022		$	13,874		$	12,098		$	11,759		$	11,956		$	12,215		$	13,874		$	12,215


(1)	Amortization of deferred fees for guarantees issued after 2002 is recorded in income on guarantee obligation.
(2)	Represents (a) portions of the guarantee obligation that correspond to incurred credit losses reclassified to reserve for guarantee losses on PCs, and (b) reductions associated with the extinguishment of our previously issued long-term credit guarantees.

FREDDIE MAC
DERIVATIVES NOT IN HEDGE ACCOUNTING RELATIONSHIPS
TABLE 4
(unaudited)
(dollars in millions)


																											Nine Months Ended September 30,
Line:						1Q 2008			2Q 2008			3Q 2008			4Q 2008			1Q 2009			2Q 2009			3Q 2009			2008			2009
		Derivative Gains (Losses):
		Interest rate swaps:
			Receive-fixed swaps
	1			Foreign-currency denominated		$	193		$	(490	)	$	228		$	558		$	187		$	(63	)	$	(2	)	$	(69	)	$	122
	2			U.S. dollar denominated			9,503			(7,204	)		2,101			25,332			(1,803	)		(10,187	)		4,539			4,400			(7,451	)

	3				Total receive-fixed swaps		9,696			(7,694	)		2,329			25,890			(1,616	)		(10,250	)		4,537			4,331			(7,329	)
	4		Pay-fixed swaps				(15,133	)		11,259			(5,296	)		(49,125	)		6,705			18,524			(8,223	)		(9,170	)		17,006
	5		Basis (floating to floating)				2			(23	)		(54	)		184			1			(116	)		(59	)		(75	)		(174	)

	6				Total interest rate swaps		(5,435	)		3,542			(3,021	)		(23,051	)		5,090			8,158			(3,745	)		(4,914	)		9,503
		Option-based:
			Call swaptions
	7			Purchased			3,240			(2,542	)		1,824			14,720			(3,387	)		(5,910	)		2,285			2,522			(7,012	)
	8			Written			(6	)		27			(7	)		—			117			94			(59	)		14			152
			Put swaptions
	9			Purchased			(125	)		72			22			(1,064	)		45			1,002			(1,087	)		(31	)		(40	)
	10			Written			3			(93	)		154			92			13			(370	)		107			64			(250	)
	11		Other option-based derivatives⁽¹⁾				24			(88	)		95			732			25			(240	)		13			31			(202	)

	12				Total option-based		3,136			(2,624	)		2,088			14,480			(3,187	)		(5,424	)		1,259			2,600			(7,352	)
	13	Futures					647			(154	)		(534	)		(2,033	)		28			(252	)		(11	)		(41	)		(235	)
	14	Foreign-currency swaps⁽²⁾					1,237			(48	)		(1,578	)		(195	)		(573	)		583			238			(389	)		248
	15	Forward purchase and sale commitments					511			(243	)		280			(660	)		(412	)		140			(385	)		548			(657	)
	16	Credit derivatives					4			10			(2	)		15			1			(6	)		—			12			(5	)
	17	Swap guarantee derivatives					—			(1	)		(4	)		1			(31	)		9			—			(5	)		(22	)
	18	Other⁽³⁾					—			—			(27	)		—			—			—			—			(27	)		—

	19			Subtotal			100			482			(2,798	)		(11,443	)		916			3,208			(2,644	)		(2,216	)		1,480
		Accrual of periodic settlements:
	20		Receive-fixed interest rate swaps⁽⁴⁾				73			648			753			454			1,088			1,380			1,684			1,474			4,152
	21		Pay-fixed interest rate swaps				(477	)		(1,118	)		(1,128	)		(759	)		(1,942	)		(2,269	)		(2,847	)		(2,723	)		(7,058	)
	22		Foreign-currency swaps				57			101			105			56			49			22			10			263			81
	23		Other				2			2			(12	)		(52	)		70			20			22			(8	)		112

	24				Total accrual of periodic settlements		(345	)		(367	)		(282	)		(301	)		(735	)		(847	)		(1,131	)		(994	)		(2,713	)

	25				Total	$	(245	)	$	115		$	(3,080	)	$	(11,744	)	$	181		$	2,361		$	(3,775	)	$	(3,210	)	$	(1,233	)


(1)		Primarily represents purchased interest rate caps and floors, purchased put options on agency mortgage-related securities, as well as certain written options, including guarantees of stated final maturity of issued Structured Securities and written call options on agency mortgage-related securities.
(2)		Foreign-currency swaps are defined as swaps in which the net settlement is based on one leg calculated in a foreign-currency and the other leg calculated in U.S. dollars.
(3)		Relates to the bankruptcy of Lehman Brothers Holdings, Inc. for both the three and nine months ended September 30, 2008.
(4)		Includes imputed interest on zero-coupon swaps.

FREDDIE MAC
NON-INTEREST EXPENSE
TABLE 5
(unaudited)
(dollars in millions)


																		Nine Months Ended September 30,
Line:			1Q 2008		2Q 2008		3Q 2008		4Q 2008		1Q 2009		2Q 2009		3Q 2009			2008		2009
		Non-Interest Expense:
		Administrative expenses:
	1	Salaries and employee benefits⁽¹⁾	$	231	$	241	$	133	$	223	$	207	$	221	$	230		$	605	$	658
	2	Professional services		72		55		61		74		60		64		91			188		215
	3	Occupancy expense		15		18		16		18		18		15		16			49		49
	4	Other administrative expenses		79		90		98		81		87		83		96			267		266

	5	Total administrative expenses		397		404		308		396		372		383		433			1,109		1,188

	6	Provision for credit losses		1,240		2,537		5,702		6,953		8,791		5,199		7,577			9,479		21,567
	7	Real estate owned, or REO, operations (income) expense		208		265		333		291		306		9		(96	)		806		219
	8	Losses on loans purchased		51		120		252		1,211		2,012		1,199		531			423		3,742
	9	Securities administrator loss on investment activity⁽²⁾		—		—		1,082		—		—		—		—			1,082		—
	10	Other expenses		87		108		89		151		78		97		97			284		272

	11	Total non-interest expense	$	1,983	$	3,434	$	7,766	$	9,002	$	11,559	$	6,887	$	8,542		$	13,183	$	26,988


(1)	In the third quarter of 2008, we partially reversed our short-term performance compensation that had been previously accrued. Thereafter, we incurred short-term compensation at a reduced rate.
(2)	In accordance with PC trust agreements, we manage the funds of the securitization trusts created for administration of remittances on our PCs. To the extent there is an investment loss related to these funds, we, as the administrator, make up the shortfall. We recognized losses during the third quarter of 2008 on loans made to Lehman Brothers Holdings, Inc., on the trusts’ behalf.

FREDDIE MAC
CREDIT QUALITY INDICATORS
TABLE 6
(unaudited)
(dollars in millions)


																								Nine Months Ended September 30,
Line:			1Q 2008			2Q 2008			3Q 2008			4Q 2008			1Q 2009			2Q 2009			3Q 2009			2008			2009

		Credit Enhancements:

	1	Credit-enhanced percentage of new business purchases		25	%		19	%		23	%		16	%		8	%		6	%		7	%		22	%		7	%
	2	Credit-enhanced percentage of total mortgage portfolio⁽¹⁾ (period end)		17	%		18	%		18	%		18	%		17	%		17	%		16	%		18	%		16	%

		Delinquencies (at period end):⁽²⁾⁽³⁾

		Single-family:
		Non-credit-enhanced portfolio
	3	Delinquency rate		0.54	%		0.67	%		0.87	%		1.26	%		1.73	%		2.13	%		2.57	%		0.87	%		2.57	%
	4	Total number of delinquent loans		54,923			68,080			88,786			127,569			174,350			215,078			261,612			88,786			261,612
		Credit-enhanced portfolio
	5	Delinquency rate		1.81	%		2.10	%		2.75	%		3.79	%		4.85	%		5.82	%		6.98	%		2.75	%		6.98	%
	6	Total number of delinquent loans		39,942			47,216			62,729			85,719			107,427			125,257			147,637			62,729			147,637
		Total single-family portfolio
	7	Delinquency rate		0.77	%		0.93	%		1.22	%		1.72	%		2.29	%		2.78	%		3.33	%		1.22	%		3.33	%
	8	Total number of delinquent loans		94,865			115,296			151,515			213,288			281,777			340,335			409,249			151,515			409,249
		Multifamily:
	9	Delinquency rate		0.01	%		0.04	%		0.01	%		0.01	%		0.09	%		0.11	%		0.11	%		0.01	%		0.11	%
	10	Net carrying value of delinquent loans	$	7		$	34		$	12		$	12		$	81		$	102		$	104		$	12		$	104

		Foreclosure alternatives⁽³⁾⁽⁴⁾ (number of units):


	11	Repayment plans		12,387			10,691			10,270			8,714			10,459			7,409			7,728			33,348			25,596
	12	Loan modifications⁽⁵⁾		4,246			4,687			8,456			17,695			24,623			15,603			9,013			17,389			49,239
	13	Forbearance agreements		817			785			828			1,762			1,853			1,564			3,469			2,430			6,886
	14	Pre-foreclosure sales		831			1,252			1,911			2,375			3,093			4,821			6,628			3,994			14,542

	15	Total foreclosure alternatives⁽⁵⁾		18,281			17,415			21,465			30,546			40,028			29,397			26,838			57,161			96,263

		Non-performing assets⁽³⁾⁽⁶⁾ (at period end):


	16	Non-performing mortgage loans	$	20,485		$	25,234		$	32,628		$	45,087		$	60,795		$	73,951		$	87,991		$	32,628		$	87,991
	17	REO assets, net		2,214			2,580			3,224			3,255			2,948			3,416			4,234			3,224			4,234

	18	Total non-performing assets	$	22,699		$	27,814		$	35,852		$	48,342		$	63,743		$	77,367		$	92,225		$	35,852		$	92,225

		REO Operations Income (Expense):


	19	Single-family	$	(208	)	$	(265	)	$	(333	)	$	(291	)	$	(306	)	$	(1	)	$	98		$	(806	)	$	(209	)
	20	Multifamily		—			—			—			—			—			(8	)		(2	)		—			(10	)

	21	Total	$	(208	)	$	(265	)	$	(333	)	$	(291	)	$	(306	)	$	(9	)	$	96		$	(806	)	$	(219	)

		Loan Loss Reserves:⁽⁷⁾


	22	Beginning balance	$	2,822		$	3,872		$	5,813		$	10,220		$	15,618		$	22,678		$	25,197		$	2,822		$	15,618
	23	Provision for credit losses⁽⁸⁾		1,240			2,537			5,702			6,953			8,791			5,199			7,577			9,479			21,567
	24	Charge-offs — single-family, net		(163	)		(451	)		(856	)		(815	)		(972	)		(1,840	)		(2,155	)		(1,470	)		(4,967	)
	25	Charge-offs — multifamily, net		—			—			(5	)		(3	)		(2	)		(2	)		(15	)		(5	)		(19	)
	26	Transfers, net		(27	)		(145	)		(434	)		(737	)		(757	)		(838	)		(1,026	)		(606	)		(2,621	)

	27	Ending balance	$	3,872		$	5,813		$	10,220		$	15,618		$	22,678		$	25,197		$	29,578		$	10,220		$	29,578

		Total Credit Losses:⁽⁹⁾


	28	Total credit losses	$	528		$	810		$	1,275		$	1,154		$	1,320		$	1,916		$	2,156		$	2,613		$	5,392
	29	Annualized credit losses / average total mortgage portfolio⁽¹⁰⁾		11.6 bp			17.3 bp			26.8 bp			24.1 bp			27.7 bp			39.8 bp			44.3 bp			18.7 bp			37.3 bp


(1)		Based on the total mortgage portfolio, excluding Freddie Mac Structured Transactions, non-Freddie Mac mortgage-related securities and that portion of Structured Securities that is backed by Ginnie Mae Certificates.
(2)		Single-family delinquencies are based on the number of mortgages 90 days or more delinquent or in foreclosure while multifamily delinquencies are based on net carrying value of mortgages 90 days or more delinquent or in foreclosure. Delinquencies exclude mortgage loans whose original contractual terms have been modified under an agreement with the borrower as long as the borrower complies with the modified contractual terms.
(3)		Based on loans held by us on our consolidated balance sheet as well as those underlying our PCs, Structured Securities and other mortgage guarantees. Foreclosure alternative information excludes Structured Transactions and that portion of Structured Securities that is backed by Ginnie Mae Certificates.
(4)		For more information on our foreclosure alternatives and loss mitigation activities see “Item 7. — CREDIT RISKS — Loss Mitigation Activities” in our Form 10-K filed March 11, 2009.
(5)		Excludes 88,668 loans at September 30, 2009, that were in the trial period based on information provided by our servicers to the MHA Program administrator. See “Item 2. — CREDIT RISKS — Loss Mitigation Activities,” in our Form 10-Q filed November 6, 2009.
(6)		For more information on our non-performing assets see “Item 7. — CREDIT RISKS — Non-Performing Assets” in our Form 10-K filed March 11, 2009.
(7)		Loan loss reserves equals the sum of allowance for loan losses (consolidated balance sheets — Line 8) and reserve for guarantee losses on Participation Certificates (consolidated balance sheets — Line 24).
(8)		Provision for credit losses includes our provision for losses incurred on our mortgage loans held for investment, which are a component of our mortgage-related investments portfolio, and our provision for guarantee losses incurred on mortgage loans underlying our issued PCs, Structured Securities and other mortgage-related financial guarantees.
(9)		Equal to REO operations income (expense) (Line 21) plus Charge-offs, net (Lines 24 and 25) plus amounts previously transferred to reduce the carrying value of loans purchased under financial guarantees. The previously transferred reserves totaled $187 million and $332 million for the nine months ended September 30, 2009 and 2008, respectively. Excludes other market-based credit losses recognized on our consolidated statements of operations, including losses on loans purchased, losses on certain credit guarantees, securities administrator loss on investment activity and other-than-temporary impairments on our mortgage-related investments portfolio.
(10)		Calculated based on the average balance of mortgage loans in our mortgage-related investments portfolio and mortgage loans underling our PCs and Structured Securities, excluding that portion of Structured Securities that is backed by Ginnie Mae Certificates.

FREDDIE MAC
SINGLE-FAMILY NON-CREDIT-ENHANCED DELINQUENCY AND FORECLOSURE ACTIVITY BY REGION⁽¹⁾TABLE 7
(unaudited)


				3Q 2008				4Q 2008				1Q 2009				2Q 2009				3Q 2009
				Number of Loans				Number of Loans				Number of Loans				Number of Loans				Number of Loans
Line:				(in thousands)		Percent⁽³⁾		(in thousands)		Percent⁽³⁾		(in thousands)		Percent⁽³⁾		(in thousands)		Percent⁽³⁾		(in thousands)		Percent⁽³⁾

		Northeast⁽²⁾

	1		Total number of loans		2,341				2,332				2,320				2,289				2,326

	2		Delinquent three or more payments		8		0.35%		12		0.53%		16		0.69%		19		0.83%		25		1.06%
	3		Foreclosures approved and in-process		8		0.34%		10		0.43%		14		0.60%		18		0.80%		22		0.94%

	4		Total delinquent loans		16		0.69%		22		0.96%		30		1.29%		37		1.63%		47		2.00%

		Southeast⁽²⁾

	5		Total number of loans		1,955				1,950				1,939				1,940				1,956

	6		Delinquent three or more payments		10		0.50%		16		0.82%		20		1.03%		22		1.16%		28		1.42%
	7		Foreclosures approved and in-process		16		0.81%		21		1.04%		28		1.46%		36		1.84%		42		2.14%

	8		Total delinquent loans		26		1.31%		37		1.86%		48		2.49%		58		3.00%		70		3.56%

		North Central⁽²⁾

	9		Total number of loans		2,305				2,289				2,270				2,268				2,281

	10		Delinquent three or more payments		8		0.32%		11		0.49%		14		0.59%		17		0.74%		21		0.94%
	11		Foreclosures approved and in-process		9		0.40%		11		0.49%		16		0.71%		18		0.81%		22		0.95%

	12		Total delinquent loans		17		0.72%		22		0.98%		30		1.30%		35		1.55%		43		1.89%

		Southwest⁽²⁾

	13		Total number of loans		1,364				1,361				1,351				1,349				1,363

	14		Delinquent three or more payments		3		0.24%		5		0.40%		6		0.44%		7		0.51%		8		0.63%
	15		Foreclosures approved and in-process		3		0.22%		4		0.28%		5		0.38%		6		0.45%		7		0.50%

	16		Total delinquent loans		6		0.46%		9		0.68%		11		0.82%		13		0.96%		15		1.13%

		West⁽²⁾

	17		Total number of loans		2,212				2,218				2,218				2,232				2,265

	18		Delinquent three or more payments		11		0.50%		19		0.86%		26		1.16%		33		1.47%		43		1.92%
	19		Foreclosures approved and in-process		13		0.58%		18		0.81%		29		1.34%		39		1.72%		44		1.93%

	20		Total delinquent loans		24		1.08%		37		1.67%		55		2.50%		72		3.19%		87		3.85%

		Total

	21		Total number of loans		10,177				10,150				10,098				10,078				10,191

	22		Delinquent three or more payments		40		0.39%		64		0.64%		82		0.80%		98		0.97%		126		1.24%
	23		Foreclosures approved and in-process		49		0.48%		64		0.62%		92		0.93%		117		1.16%		136		1.33%

	24		Total delinquent loans		89		0.87%		128		1.26%		174		1.73%		215		2.13%		262		2.57%


	25		90-day or more delinquency to REO, transition rate⁽⁴⁾				25.4%				25.5%				24.8%				24.7%				20.0%


(1)		Includes single-family non-credit-enhanced mortgage loans in our mortgage-related investments portfolio and those underlying our guaranteed PCs and Structured Securities issued, but excluding Structured Transactions and that portion of Structured Securities backed by Ginnie Mae Certificates.
(2)		Region Designation: Northeast (CT, DE, DC, MA, ME, MD, NH, NJ, NY, PA, RI, VT, VA, WV); Southeast (AL, FL, GA, KY, MS, NC, PR, SC, TN, VI); North Central (IL, IN, IA, MI, MN, ND, OH, SD, WI); Southwest (AR, CO, KS, LA, MO, NE, NM, OK, TX, WY); West (AK, AZ, CA, GU, HI, ID, MT, NV, OR, UT, WA).
(3)		Percentages are calculated based on loan counts.
(4)		Calculated based on all loans that have been reported as 90 days or more delinquent or in foreclosure in the same quarter of the preceding year that have transitioned to REO. The rate excludes other dispositions that can result in a loss, such as short-sales and deed-in-lieu transactions.

FREDDIE MAC
REAL ESTATE OWNED (REO) ACTIVITY
TABLE 8
(unaudited)


																								Nine Months Ended September 30,
Line:			1Q 2008			2Q 2008			3Q 2008			4Q 2008			1Q 2009			2Q 2009			3Q 2009			2008			2009

		Property Units, by Region:⁽¹⁾

		Northeast
	1	Beginning Balance		1,474			2,119			2,429			2,793			2,753			2,636			3,180			1,474			2,753
	2	Properties Acquired		1,267			1,310			1,485			1,063			1,123			1,827			2,103			4,062			5,053
	3	Properties Disposed		(622	)		(1,000	)		(1,121	)		(1,103	)		(1,240	)		(1,283	)		(1,451	)		(2,743	)		(3,974	)

	4	Ending Property Inventory		2,119			2,429			2,793			2,753			2,636			3,180			3,832			2,793			3,832

		Southeast
	5	Beginning Balance		2,686			3,259			3,924			4,851			5,172			5,689			6,496			2,686			5,172
	6	Properties Acquired		1,983			2,614			3,231			2,897			3,555			4,441			5,332			7,828			13,328
	7	Properties Disposed		(1,410	)		(1,949	)		(2,304	)		(2,576	)		(3,038	)		(3,634	)		(4,168	)		(5,663	)		(10,840	)

	8	Ending Property Inventory		3,259			3,924			4,851			5,172			5,689			6,496			7,660			4,851			7,660

		North Central
	9	Beginning Balance		6,121			7,113			7,763			9,050			9,251			8,527			10,901			6,121			9,251
	10	Properties Acquired		3,137			3,445			3,995			3,101			2,754			6,143			5,743			10,577			14,640
	11	Properties Disposed		(2,145	)		(2,795	)		(2,708	)		(2,900	)		(3,478	)		(3,769	)		(3,729	)		(7,648	)		(10,976	)

	12	Ending Property Inventory		7,113			7,763			9,050			9,251			8,527			10,901			12,915			9,050			12,915

		Southwest
	13	Beginning Balance		2,230			2,545			2,651			2,924			2,761			2,875			3,329			2,230			2,761
	14	Properties Acquired		1,370			1,465			1,616			1,235			1,659			2,094			2,540			4,451			6,293
	15	Properties Disposed		(1,055	)		(1,359	)		(1,343	)		(1,398	)		(1,545	)		(1,640	)		(1,806	)		(3,757	)		(4,991	)

	16	Ending Property Inventory		2,545			2,651			2,924			2,761			2,875			3,329			4,063			2,924			4,063

		West
	17	Beginning Balance		1,883			3,383			5,262			8,474			9,409			9,424			10,800			1,883			9,409
	18	Properties Acquired		2,182			3,576			5,556			4,003			4,898			7,493			8,657			11,314			21,048
	19	Properties Disposed		(682	)		(1,697	)		(2,344	)		(3,068	)		(4,883	)		(6,117	)		(6,787	)		(4,723	)		(17,787	)

	20	Ending Property Inventory		3,383			5,262			8,474			9,409			9,424			10,800			12,670			8,474			12,670

		Total
	21	Beginning Balance		14,394			18,419			22,029			28,092			29,346			29,151			34,706			14,394			29,346
	22	Properties Acquired		9,939			12,410			15,883			12,299			13,989			21,998			24,375			38,232			60,362
	23	Properties Disposed		(5,914	)		(8,800	)		(9,820	)		(11,045	)		(14,184	)		(16,443	)		(17,941	)		(24,534	)		(48,568	)

	24	Ending Property Inventory		18,419			22,029			28,092			29,346			29,151			34,706			41,140			28,092			41,140


		REO Balance, net (dollars in millions)

		Single-family property, by region⁽¹⁾:
	25	Northeast	$	358		$	381		$	402		$	374		$	337		$	400		$	495		$	402		$	495
	26	Southeast		330			373			451			460			459			521			668			451			668
	27	North Central		619			636			715			720			634			796			980			715			980
	28	Southwest		253			253			266			255			261			307			392			266			392
	29	West		654			937			1,365			1,399			1,217			1,357			1,654			1,365			1,654

	30	Total single-family property		2,214			2,580			3,199			3,208			2,908			3,381			4,189			3,199			4,189
	31	Total multifamily property		—			—			24			47			40			35			45			24			45

	32	Total REO Balance, net	$	2,214		$	2,580		$	3,223		$	3,255		$	2,948		$	3,416		$	4,234		$	3,223		$	4,234


(1)		Region Designation: Northeast (CT, DE, DC, MA, ME, MD, NH, NJ, NY, PA, RI, VT, VA, WV); Southeast (AL, FL, GA, KY, MS, NC, PR, SC, TN, VI); North Central (IL, IN, IA, MI, MN, ND, OH, SD, WI); Southwest (AR, CO, KS, LA, MO, NE, NM, OK, TX, WY); West (AK, AZ, CA, GU, HI, ID, MT, NV, OR, UT, WA).

FEDERAL HOME LOAN MORTGAGE CORP - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - November 6, 2009

Attached files

Also read