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	f71246e8vk.htm
EX-99.1 - EXHIBIT 99.1 - FEDERAL HOME LOAN MORTGAGE CORP	f71246exv99w1.htm
EX-99.3 - EXHIBIT 99.3 - FEDERAL HOME LOAN MORTGAGE CORP	f71246exv99w3.htm

Exhibit 99.2


FREDDIE MAC 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


					Year Ended December 31,
Line:					2009			2008			2007
					(dollars in millions, except
					share-related amounts)
		Interest income
	1		Investments in securities		$	33,290		$	35,067		$	36,587
	2		Mortgage loans			6,815			5,369			4,449
	3		Other:
	4			Cash and cash equivalents		193			618			594
	5			Federal funds sold and securities purchased under agreements to resell		48			423			1,280

	6			Total other		241			1,041			1,874

	7			Total interest income		40,346			41,477			42,910


		Interest expense
	8		Short-term debt			(2,234	)		(6,800	)		(8,916	)
	9		Long-term debt			(19,916	)		(26,532	)		(29,148	)

	10			Total interest expense on debt		(22,150	)		(33,332	)		(38,064	)
	11	Due to participation Certificate investors				—			—			(418	)

	12			Total interest expense		(22,150	)		(33,332	)		(38,482	)
	13		Expense related to derivatives			(1,123	)		(1,349	)		(1,329	)


	14	Net interest income				17,073			6,796			3,099

		Non-interest income (loss)
	15		Management and guarantee income (includes interest on guarantee asset of $923, $1,121 and $549, respectively)			3,033			3,370			2,635
	16		Gains (losses) on guarantee asset			3,299			(7,091	)		(1,484	)
	17		Income on guarantee obligation			3,479			4,826			1,905
	18		Derivative gains (losses)			(1,900	)		(14,954	)		(1,904	)
			Gains (losses) on investments:
				Impairment-related:
	19			Total other-than-temporary impairment of available-for-sale securities		(23,125	)		(17,682	)		(365	)
	20			Portion of other-than-temporary impairment recognized in AOCI		11,928			—			—

	21			Net impairment of available-for-sale securities recognized in earnings		(11,197	)		(17,682	)		(365	)
	22			Other gains (losses) on investments		5,841			1,574			659

	23		Total gains (losses) on investments			(5,356	)		(16,108	)		294
	24		Gains (losses) on debt recorded at fair value			(404	)		406			—
	25		Gains (losses) on debt retirement			(568	)		209			345
	26		Recoveries on loans impaired upon purchase			379			495			505
	27		Foreign-currency gains (losses), net			—			—			(2,348	)
	28		Low-income housing tax credit partnerships			(4,155	)		(453	)		(469	)
	29		Trust management income (expense)			(761	)		(70	)		18
	30		Other income			222			195			228


	31	Non-interest income (loss)				(2,732	)		(29,175	)		(275	)

		Non-interest expense
	32		Salaries and employee benefits			(912	)		(828	)		(828	)
	33		Professional services			(310	)		(262	)		(392	)
	34		Occupancy expense			(68	)		(67	)		(64	)
	35		Other administrative expenses			(361	)		(348	)		(390	)

	36			Total administrative expenses		(1,651	)		(1,505	)		(1,674	)
	37		Provision for credit losses			(29,530	)		(16,432	)		(2,854	)
	38		Real estate owned operations expense			(307	)		(1,097	)		(206	)
	39		Losses on certain credit guarantees			—			(17	)		(1,988	)
	40		Losses on loans purchased			(4,754	)		(1,634	)		(1,865	)
	41		Securities administrator loss on investment activity			—			(1,082	)		—
	42		Other expenses			(483	)		(418	)		(226	)


	43	Non-interest expense				(36,725	)		(22,185	)		(8,813	)

	44	Loss before income tax benefit (expense)				(22,384	)		(44,564	)		(5,989	)
	45	Income tax benefit (expense)				830			(5,552	)		2,887

	46	Net loss				(21,554	)		(50,116	)		(3,102	)
	47		Less: Net (income) loss attributable to noncontrolling interest			1			(3	)		8

	48	Net loss attributable to Freddie Mac			$	(21,553	)	$	(50,119	)	$	(3,094	)

	49		Preferred stock dividends and issuance costs on redeemed preferred stock			(4,105	)		(675	)		(404	)
	50		Amount allocated to participating security option holders			—			(1	)		(5	)

	51	Net loss attributable to common stockholders			$	(25,658	)	$	(50,795	)	$	(3,503	)


		Loss per common share:
	52		Basic		$	(7.89	)	$	(34.60	)	$	(5.37	)
	53		Diluted		$	(7.89	)	$	(34.60	)	$	(5.37	)

		Weighted average common shares outstanding (in thousands):
	54		Basic			3,253,836			1,468,062			651,881
	55		Diluted			3,253,836			1,468,062			651,881
	56	Dividends per common share			$	—		$	0.50		$	1.75

FREDDIE MAC
CONSOLIDATED BALANCE SHEETS


				December 31,
Line:				2009			2008
				(dollars in millions, except
				share-related amounts)
		Assets
	1	Cash and cash equivalents		$	64,683		$	45,326
	2	Restricted cash			527			953
	3	Federal funds sold and securities purchased under agreements to resell			7,000			10,150
		Investments in securities:
	4		Available-for-sale, at fair value (includes $10,879 and $21,302, respectively, pledged as collateral that may be repledged)		384,684			458,898
	5		Trading, at fair value		222,250			190,361

	6		Total investments in securities		606,934			649,259
		Mortgage loans:
	7		Held-for-sale, at lower-of-cost-or-fair-value (except $2,799 and $401 at fair value, respectively)		16,305			16,247
	8		Held-for-investment, at amortized cost (net of allowances for loan losses of $1,441 and $690, respectively)		111,565			91,344

	9		Total mortgage loans, net		127,870			107,591
	10	Accounts and other receivables, net			6,095			6,337
	11	Derivative assets, net			215			955
	12	Guarantee asset, at fair value			10,444			4,847
	13	Real estate owned, net			4,692			3,255
	14	Deferred tax assets, net			11,101			15,351
	15	Low-income housing tax credit partnerships equity investments			—			4,145
	16	Other assets			2,223			2,794

	17		Total assets	$	841,784		$	850,963


		Liabilities and equity (deficit)
		Liabilities
	18	Accrued interest payable		$	5,047		$	6,504
		Debt, net:
	19		Short-term debt (includes $6,328 and $1,638 at fair value, respectively)		343,975			435,114
	20		Long-term debt (includes $2,590 and $11,740 at fair value, respectively)		436,629			407,907

	21		Total debt, net		780,604			843,021
	22	Guarantee obligation			12,465			12,098
	23	Derivative liabilities, net			589			2,277
	24	Reserve for guarantee losses on Participation Certificates			32,416			14,928
	25	Other liabilities			6,291			2,769

	26		Total liabilities		837,412			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 648,369,668 shares and 647,260,293 shares outstanding, respectively		—			—
	31		Additional paid-in capital		57			19
	32		Retained earnings (accumulated deficit)		(33,921	)		(23,191	)
			Accumulated other comprehensive income (loss), or AOCI, net of taxes, related to:
	33		Available-for-sale securities (includes $15,947, net of taxes, of other-than-temporary impairments at December 31, 2009)		(20,616	)		(28,510	)
	34		Cash flow hedge relationships		(2,905	)		(3,678	)
	35		Defined benefit plans		(127	)		(169	)

	36		Total AOCI, net of taxes		(23,648	)		(32,357	)
	37		Treasury stock, at cost, 77,494,218 shares and 78,603,593 shares, respectively		(4,019	)		(4,111	)

	38		Total Freddie Mac stockholders’ equity (deficit)		4,278			(30,731	)
	39	Noncontrolling interest			94			97

	40		Total equity (deficit)		4,372			(30,634	)

	41		Total liabilities and equity (deficit)	$	841,784		$	850,963

FREDDIE MAC
CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT)


			Year Ended December 31,
			2009						2008						2007
Line:			Shares			Amount			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			—			13,800			—			—

	4	Senior preferred stock, end of year		1			51,700			1			14,800			—			—

		Preferred stock, at redemption value
	5	Balance, beginning of year		464			14,109			464			14,109			132			6,109
	6	Preferred stock issuances		—			—			—			—			344			8,600
	7	Preferred stock redemptions		—			—			—			—			(12	)		(600	)

	8	Preferred stock, end of year		464			14,109			464			14,109			464			14,109

		Common stock, par value
	9	Balance, beginning of year		726			—			726			152			726			152
	10	Adjustment to par value		—			—			—			(152	)		—			—

	11	Common stock, end of year		726			—			726			—			726			152

		Additional paid-in capital
	12	Balance, beginning of year					19						871						962
	13	Stock-based compensation					58						74						81
	14	Income tax benefit from stock-based compensation					7						(16	)					—
	15	Preferred stock issuance costs					—						—						(116	)
	16	Common stock issuances					(90	)					(66	)					(42	)
	17	Real Estate Investment Trust preferred stock repurchase					—						4						(14	)
	18	Adjustment to common stock par value					—						152						—
	19	Common stock warrant issuance					—						2,304						—
	20	Commitment from the U.S. Department of the Treasury					—						(3,304	)					—
	21	Transfer from retained earnings (accumulated deficit)					63						—						—

	22	Additional paid-in capital, end of year					57						19						871

		Retained earnings (accumulated deficit)
	23	Balance, beginning of year					(23,191	)					26,909						31,372
	24	Cumulative effect of change in accounting principle, net of taxes					—						1,023						181

	25	Balance, beginning of year, as adjusted					(23,191	)					27,932						31,553
	26	Cumulative effect of change in accounting principle, net of taxes					14,996						—						—
	27	Net loss attributable to Freddie Mac					(21,553	)					(50,119	)					(3,094	)
	28	Senior preferred stock dividends declared					(4,105	)					(172	)					—
	29	Preferred stock dividends declared					—						(503	)					(398	)
	30	Common stock dividends declared					—						(323	)					(1,140	)
	31	Dividend equivalent payments on expired stock options					(5	)					(6	)					(12	)
	32	Transfer to additional paid-in capital					(63	)					—						—

	33	Retained earnings (accumulated deficit), end of year					(33,921	)					(23,191	)					26,909

		AOCI, net of taxes
	34	Balance, beginning of year					(32,357	)					(11,143	)					(8,451	)
	35	Cumulative effect of change in accounting principle, net of taxes					—						(850	)					—

	36	Balance, beginning of year, as adjusted					(32,357	)					(11,993	)					(8,451	)
	37	Cumulative effect of change in accounting principle, net of taxes					(9,931	)					—						—
	38	Changes in unrealized gains (losses) related to available-for-sale securities, net of reclassification adjustments					17,825						(20,616	)					(3,708	)
	39	Changes in unrealized gains (losses) related to cash flow hedge relationships, net of reclassification adjustments					773						377						973
	40	Changes in defined benefit plans					42						(125	)					43

	41	AOCI, net of taxes, end of year					(23,648	)					(32,357	)					(11,143	)

		Treasury stock, at cost
	42	Balance, beginning of year		79			(4,111	)		80			(4,174	)		65			(3,230	)
	43	Common stock issuances		(2	)		92			(1	)		63			(1	)		56
	44	Common stock repurchases		—			—			—			—			16			(1,000	)

	45	Treasury stock, end of year		77			(4,019	)		79			(4,111	)		80			(4,174	)

		Noncontrolling interest
	46	Balance, beginning of year					97						181						516
	47	Net income (loss) attributable to noncontrolling interest					(1	)					3						(8	)
	48	Real Estate Investment Trust preferred stock repurchase					—						(82	)					(302	)
	49	Dividends and other					(2	)					(5	)					(25	)

	50	Noncontrolling interest, end of year					94						97						181


	51	Total equity (deficit)				$	4,372					$	(30,634	)				$	26,905

		Comprehensive income (loss)
	52	Net loss				$	(21,554	)				$	(50,116	)				$	(3,102	)
	53	Changes in other comprehensive income, net of taxes, net of reclassification adjustments					18,640						(20,364	)					(2,692	)

	54	Comprehensive income (loss)					(2,914	)					(70,480	)					(5,794	)
	55	Less: Comprehensive (income) loss attributable to noncontrolling interest					1						(3	)					8

	56	Total comprehensive income (loss) attributable to Freddie Mac				$	(2,913	)				$	(70,483	)				$	(5,786	)

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


																											Full Year
Line:			1Q 2008			2Q 2008			3Q 2008			4Q 2008			1Q 2009			2Q 2009			3Q 2009			4Q 2009			2008			2009
		Net Interest Income:

	1	Net interest income	$	798		$	1,529		$	1,844		$	2,625		$	3,859		$	4,255		$	4,462		$	4,497		$	6,796		$	17,073
	2	Fully taxable-equivalent adjustments⁽¹⁾		107			105			98			94			102			99			95			92			404			388

	3	Net interest income (fully taxable-equivalent basis)	$	905		$	1,634		$	1,942		$	2,719		$	3,961		$	4,354		$	4,557		$	4,589		$	7,200		$	17,461

		Average Balances:


	4	Mortgage loans⁽²⁾	$	84,291		$	89,813		$	95,174		$	105,316		$	118,555		$	127,863		$	129,721		$	133,578		$	93,649		$	127,429
	5	Mortgage-related securities⁽³⁾		628,721			664,727			676,197			677,379			698,464			702,693			663,744			635,768			661,756			675,167
	6	Non-mortgage-related securities⁽³⁾		30,565			26,935			11,658			9,869			11,197			16,594			19,282			18,809			19,757			16,471
	7	Cash and cash equivalents		8,891			27,126			35,735			40,799			49,932			57,401			48,403			45,023			28,137			50,190
	8	Federal funds sold and securities purchased under agreements to resell		14,435			20,660			29,379			27,599			33,605			29,542			29,256			21,695			23,018			28,524

	9	Total interest-earning assets		766,903			829,261			848,143			860,962			911,753			934,093			890,406			854,873			826,317			897,781
	10	Short-term debt		204,650			240,119			241,150			292,357			362,566			293,475			256,324			236,672			244,569			287,259
	11	Long-term debt		538,295			569,443			589,377			547,931			521,151			582,998			570,863			553,723			561,261			557,184

	12	Total interest-bearing liabilities		742,945			809,562			830,527			840,288			883,717			876,473			827,187			790,395			805,830			844,443
	13	Net non-interest-bearing funding		23,958			19,699			17,616			20,674			28,036			57,620			63,219			64,478			20,487			53,338

	14	Total funding of interest-earning assets	$	766,903		$	829,261		$	848,143		$	860,962		$	911,753		$	934,093		$	890,406		$	854,873		$	826,317		$	897,781

		Yield/Cost:


	15	Mortgage loans		5.90	%		5.88	%		5.72	%		5.49	%		5.33	%		5.38	%		5.37	%		5.31	%		5.73	%		5.35	%
	16	Mortgage-related securities		5.17			5.04			5.08			5.41			5.02			4.69			4.78			4.80			5.18			4.82
	17	Non-mortgage-related securities		4.10			3.31			4.40			5.67			7.53			6.96			2.99			1.79			4.07			4.42
	18	Cash and cash equivalents		3.90			2.60			2.51			1.17			0.61			0.42			0.28			0.18			2.19			0.38
	19	Federal funds sold and securities purchased under agreements to resell		3.31			2.29			2.18			0.36			0.22			0.17			0.15			0.11			1.84			0.17
	20	Yield on total interest-earning assets		5.16			4.93			4.93			5.06			4.67			4.42			4.43			4.45			5.02			4.49
	21	Short-term debt		(3.95	)		(2.70	)		(2.38	)		(2.21	)		(1.24	)		(0.77	)		(0.51	)		(0.34	)		(2.78	)		(0.78	)
	22	Long-term debt		(4.99	)		(4.71	)		(4.60	)		(4.59	)		(4.12	)		(3.57	)		(3.35	)		(3,28	)		(4.73	)		(3.57	)
	23	Cost of interest-bearing liabilities		(4.70	)		(4.11	)		(3.96	)		(3.76	)		(2.94	)		(2.63	)		(2.48	)		(2.40	)		(4.14	)		(2.62	)
	24	Expense related to derivatives		(0.18	)		(0.17	)		(0.18	)		(0.15	)		(0.13	)		(0.13	)		(0.13	)		(0.13	)		(0.17	)		(0.13	)
	25	Impact of net non-interest-bearing funding		0.15			0.10			0.09			0.09			0.09			0.17			0.19			0.19			0.11			0.16
	26	Total funding of interest-earning assets		(4.73	)		(4.18	)		(4.05	)		(3.82	)		(2.98	)		(2.59	)		(2.42	)		(2.34	)		(4.20	)		(2.59	)
	27	Net interest yield		0.43			0.75			0.88			1.24			1.69			1.83			2.01			2.11			0.82			1.90
	28	Fully taxable-equivalent adjustments⁽¹⁾		0.05			0.05			0.05			0.04			0.05			0.04			0.04			0.04			0.05			0.04
	29	Net interest yield (fully taxable-equivalent basis)		0.48	%		0.80	%		0.93	%		1.28	%		1.74	%		1.87	%		2.05	%		2.15	%		0.87	%		1.94	%


(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)


																														Full Year
Line:						1Q 2008			2Q 2008			3Q 2008			4Q 2008			1Q 2009			2Q 2009			3Q 2009			4Q 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		$	4,997		$	9,001		$	18,907
		Amortization income (expense), net:⁽¹⁾
	2		Accretion of impairments on available-for-sale securities⁽²⁾				—			—			81			470			715			254			122			89			551			1,180
	3		Asset-related amortization				(58	)		(90	)		(135	)		24			(385	)		(392	)		(181	)		(124	)		(259	)		(1,082	)
	4		Long-term debt-related amortization				(326	)		(305	)		(269	)		(248	)		(217	)		(199	)		(191	)		(202	)		(1,148	)		(809	)

	5				Total amortization income (expense), net		(384	)		(395	)		(323	)		246			113			(337	)		(250	)		(237	)		(856	)		(711	)
		Expense related to derivatives:
	6		Amortization of deferred balances in AOCI⁽³⁾				(327	)		(307	)		(308	)		(315	)		(300	)		(282	)		(278	)		(263	)		(1,257	)		(1,123	)
			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	)		(263	)		(1,349	)		(1,123	)

	10	Net interest income					798			1,529			1,844			2,625			3,859			4,255			4,462			4,497			6,796			17,073
	11	Fully taxable-equivalent adjustments					107			105			98			94			102			99			95			92			404			388

	12	Net interest income (fully taxable-equivalent basis)				$	905		$	1,634		$	1,942		$	2,719		$	3,961		$	4,354		$	4,557		$	4,589		$	7,200		$	17,461


(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. Upon our adoption of an amendment to the accounting standards for investments in debt and equity securities on April 1, 2009, previously recognized non-credit-related other-than-temporary impairments are no longer accreted into 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)


																														Full Year
Line:						1Q 2008			2Q 2008			3Q 2008			4Q 2008			1Q 2009			2Q 2009			3Q 2009			4Q 2009			2008			2009

		Non-Interest Income (Loss):

	1	Management and guarantee income				$	789		$	757		$	832		$	992		$	780		$	710		$	800		$	743		$	3,370		$	3,033
	2	Gains (losses) on guarantee asset					(1,394	)		1,114			(1,722	)		(5,089	)		(156	)		1,817			580			1,058			(7,091	)		3,299
	3	Income on guarantee obligation					1,169			769			783			2,105			910			961			814			794			4,826			3,479
		Derivative gains (losses):
			Foreign-currency denominated derivatives gains (losses):
	4			Foreign-currency swaps gains (losses)			1,237			(48	)		(1,578	)		(195	)		(573	)		583			238			(110	)		(584	)		138
	5			Receive-fixed swaps — foreign-currency denominated gains (losses)			193			(490	)		228			558			187			(63	)		(2	)		(58	)		489			64
	6		U.S. dollar denominated derivatives gains (losses)				(1,330	)		1,020			(1,448	)		(11,806	)		1,302			2,688			(2,880	)		731			(13,564	)		1,841
	7		Accrual of periodic settlements				(345	)		(367	)		(282	)		(301	)		(735	)		(847	)		(1,131	)		(1,230	)		(1,295	)		(3,943	)

	8				Total derivative gains (losses)		(245	)		115			(3,080	)		(11,744	)		181			2,361			(3,775	)		(667	)		(14,954	)		(1,900	)
		Gains (losses) on investments:
	9		Gains (losses) on trading securities				971			(2,279	)		(932	)		3,195			2,131			622			2,211			(82	)		955			4,882
	10		Gains (losses) on sale of mortgage loans				71			(5	)		31			20			151			143			282			169			117			745
	11		Gains (losses) on sale of available-for-sale securities				215			38			287			6			51			205			473			354			546			1,083
		Impairment-related:⁽¹⁾
	12		Total other-than-temporary impairment of available-for-sale securities				(71	)		(1,040	)		(9,106	)		(7,465	)		(7,130	)		(10,473	)		(4,199	)		(1,323	)		(17,682	)		(23,125	)
	13		Portion of other-than-temporary impairment recognized in AOCI				—			—			—			—			—			8,260			3,012			656			—			11,928

	14			Net impairment of available-for-sale securities recognized in earnings			(71	)		(1,040	)		(9,106	)		(7,465	)		(7,130	)		(2,213	)		(1,187	)		(667	)		(17,682	)		(11,197	)
	15		Lower-of-cost-or-fair-value adjustments				33			(41	)		(20	)		(2	)		(129	)		(102	)		(360	)		(88	)		(30	)		(679	)
	16		Gains (losses) on mortgage loans elected at fair value				—			—			(7	)		(7	)		(18	)		(71	)		(1	)		(100	)		(14	)		(190	)

	17			Total gains (losses) on investments			1,219			(3,327	)		(9,747	)		(4,253	)		(4,944	)		(1,416	)		1,418			(414	)		(16,108	)		(5,356	)
		Gains (losses) on debt recorded at fair value:
	18		Translation gains (losses)				(1,214	)		88			1,665			171			580			(655	)		(240	)		106			710			(209	)
	19		Market value adjustments				(171	)		481			(165	)		(449	)		(113	)		(142	)		2			58			(304	)		(195	)

	20			Total gains (losses) on debt recorded at fair value			(1,385	)		569			1,500			(278	)		467			(797	)		(238	)		164			406			(404	)

	21	Gains (losses) on debt retirement					305			(29	)		36			(103	)		(104	)		(156	)		(215	)		(93	)		209			(568	)
	22	Recoveries on loans impaired upon purchase					226			121			91			57			50			70			109			150			495			379
	23	Low-income housing tax credit partnerships⁽²⁾					(117	)		(108	)		(121	)		(107	)		(106	)		(167	)		(479	)		(3,403	)		(453	)		(4,155	)
	24	Trust management income (expense)					3			(19	)		4			(58	)		(207	)		(238	)		(155	)		(161	)		(70	)		(761	)
	25	Other income					44			94			21			36			41			70			59			52			195			222

	26			Total non-interest income (loss)		$	614		$	56		$	(11,403	)	$	(18,442	)	$	(3,088	)	$	3,215		$	(1,082	)	$	(1,777	)	$	(29,175	)	$	(2,732	)


(1)		We adopted an amendment to the accounting standards for investments in debt and equity securities effective April 1, 2009. See “NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Recently Adopted Accounting Standards” to our consolidated financial statements for further information.
(2)		During the fourth quarter of 2009, we determined that we are no longer able to realize any value from our LIHTC investments, and accordingly, wrote down the carrying value of these investments to zero as of December 31, 2009. See “NOTE 5: VARIABLE INTEREST ENTITIES” to our consolidated financial statements for further information.

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


																											Full Year
Line:			1Q 2008			2Q 2008			3Q 2008			4Q 2008			1Q 2009			2Q 2009			3Q 2009			4Q 2009			2008			2009
		Management and Guarantee Income:
	1	Contractual management and guarantee fees	$	757		$	778		$	796		$	793		$	782		$	776		$	765		$	761		$	3,124		$	3,084
	2	Amortization of deferred fees included in other liabilities⁽¹⁾		32			(21	)		36			199			(2	)		(66	)		35			(18	)		246			(51	)

	3	Total management and guarantee income	$	789		$	757		$	832		$	992		$	780		$	710		$	800		$	743		$	3,370		$	3,033

	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			16.6 bp			17.5 bp			17.0 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)			1.4			(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			16.2 bp			18.9 bp			16.7 bp

	7	Unamortized balance of deferred fees included in other liabilities, at period end⁽¹⁾	$	379		$	403		$	371		$	176		$	181		$	250		$	218		$	238		$	176		$	238


		Gains (Losses) on Guarantee Asset:
	8	Contractual management and guarantee fees	$	(689	)	$	(720	)	$	(730	)	$	(732	)	$	(733	)	$	(731	)	$	(729	)	$	(729	)	$	(2,871	)	$	(2,922	)
	9	Portion attributable to imputed interest income		215			243			299			364			249			251			235			188			1,121			923

	10	Return of investment on guarantee asset		(474	)		(477	)		(431	)		(368	)		(484	)		(480	)		(494	)		(541	)		(1,750	)		(1,999	)
	11	Change in fair value of future management and guarantee fees		(920	)		1,591			(1,291	)		(4,721	)		328			2,297			1,074			1,599			(5,341	)		5,298

	12	Gains (losses) on guarantee asset	$	(1,394	)	$	1,114		$	(1,722	)	$	(5,089	)	$	(156	)	$	1,817		$	580		$	1,058		$	(7,091	)	$	3,299


		Changes in Guarantee Asset:
	13	Beginning balance	$	9,591		$	9,134		$	11,019		$	9,679		$	4,847		$	5,026		$	7,576		$	8,722		$	9,591		$	4,847
	14	Additions, net		937			858			382			262			339			741			566			664			2,439			2,310
	15	Other		—			(87	)		—			(5	)		(4	)		(8	)		—			—			(92	)		(12	)
	16	Gains (losses) on guarantee asset		(1,394	)		1,114			(1,722	)		(5,089	)		(156	)		1,817			580			1,058			(7,091	)		3,299

	17	Ending balance	$	9,134		$	11,019		$	9,679		$	4,847		$	5,026		$	7,576		$	8,722		$	10,444		$	4,847		$	10,444

		Changes in Guarantee Obligation:
	18	Beginning balance	$	13,712		$	13,669		$	14,022		$	13,874		$	12,098		$	11,759		$	11,956		$	12,215		$	13,712		$	12,098
	19	Deferred guarantee income of newly-issued guarantees		1,132			1,255			638			341			584			1,177			1,075			1,045			3,366			3,881
	20	Other⁽²⁾		(6	)		(133	)		(3	)		(12	)		(13	)		(19	)		(2	)		(1	)		(154	)		(35	)
	21	Income on guarantee obligation		(1,169	)		(769	)		(783	)		(2,105	)		(910	)		(961	)		(814	)		(794	)		(4,826	)		(3,479	)

	22	Ending balance	$	13,669		$	14,022		$	13,874		$	12,098		$	11,759		$	11,956		$	12,215		$	12,465		$	12,098		$	12,465


(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)


																														Full Year
Line:						1Q 2008			2Q 2008			3Q 2008			4Q 2008			1Q 2009			2Q 2009			3Q 2009			4Q 2009			2008			2009
		Derivative Gains (Losses):
		Interest rate swaps:
			Receive-fixed swaps
	1			Foreign-currency denominated		$	193		$	(490	)	$	228		$	558		$	187		$	(63	)	$	(2	)	$	(58	)	$	489		$	64
	2			U.S. dollar denominated			9,503			(7,204	)		2,101			25,332			(1,803	)		(10,187	)		4,539			(5,886	)		29,732			(13,337	)

	3				Total receive-fixed swaps		9,696			(7,694	)		2,329			25,890			(1,616	)		(10,250	)		4,537			(5,944	)		30,221			(13,273	)
	4		Pay-fixed swaps				(15,133	)		11,259			(5,296	)		(49,125	)		6,705			18,524			(8,223	)		10,072			(58,295	)		27,078
	5		Basis (floating to floating)				2			(23	)		(54	)		184			1			(116	)		(59	)		(20	)		109			(194	)

	6				Total interest rate swaps		(5,435	)		3,542			(3,021	)		(23,051	)		5,090			8,158			(3,745	)		4,108			(27,965	)		13,611
		Option-based:
			Call swaptions
	7			Purchased			3,240			(2,542	)		1,824			14,720			(3,387	)		(5,910	)		2,285			(3,554	)		17,242			(10,566	)
	8			Written			(6	)		27			(7	)		—			117			94			(59	)		96			14			248
			Put swaptions
	9			Purchased			(125	)		72			22			(1,064	)		45			1,002			(1,087	)		363			(1,095	)		323
	10			Written			3			(93	)		154			92			13			(370	)		107			(71	)		156			(321	)
	11		Other option-based derivatives⁽¹⁾				24			(88	)		95			732			25			(240	)		13			(168	)		763			(370	)

	12				Total option-based		3,136			(2,624	)		2,088			14,480			(3,187	)		(5,424	)		1,259			(3,334	)		17,080			(10,686	)
	13	Futures					647			(154	)		(534	)		(2,033	)		28			(252	)		(11	)		(65	)		(2,074	)		(300	)
	14	Foreign-currency swaps⁽²⁾					1,237			(48	)		(1,578	)		(195	)		(573	)		583			238			(110	)		(584	)		138
	15	Forward purchase and sale commitments					511			(243	)		280			(660	)		(412	)		140			(385	)		(51	)		(112	)		(708	)
	16	Credit derivatives					4			10			(2	)		15			1			(6	)		—			1			27			(4	)
	17	Swap guarantee derivatives					—			(1	)		(4	)		1			(31	)		9			—			2			(4	)		(20	)
	18	Other⁽³⁾					—			—			(27	)		—			—			—			—			12			(27	)		12

	19			Subtotal			100			482			(2,798	)		(11,443	)		916			3,208			(2,644	)		563			(13,659	)		2,043
		Accrual of periodic settlements:
	20		Receive-fixed interest rate swaps⁽⁴⁾				73			648			753			454			1,088			1,380			1,684			1,665			1,928			5,817
	21		Pay-fixed interest rate swaps				(477	)		(1,118	)		(1,128	)		(759	)		(1,942	)		(2,269	)		(2,847	)		(2,906	)		(3,482	)		(9,964	)
	22		Foreign-currency swaps				57			101			105			56			49			22			10			8			319			89
	23		Other				2			2			(12	)		(52	)		70			20			22			3			(60	)		115

	24				Total accrual of periodic settlements		(345	)		(367	)		(282	)		(301	)		(735	)		(847	)		(1,131	)		(1,230	)		(1,295	)		(3,943	)

	25				Total	$	(245	)	$	115		$	(3,080	)	$	(11,744	)	$	181		$	2,361		$	(3,775	)	$	(667	)	$	(14,954	)	$	(1,900	)


(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.
(4)		Includes imputed interest on zero-coupon swaps.

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


																				Full Year
Line:			1Q 2008		2Q 2008		3Q 2008		4Q 2008		1Q 2009		2Q 2009		3Q 2009			4Q 2009		2008		2009
		Non-Interest Expense:
		Administrative expenses:
	1	Salaries and employee benefits⁽¹⁾	$	231	$	241	$	133	$	223	$	207	$	221	$	230		$	254	$	828	$	912
	2	Professional services		72		55		61		74		60		64		91			95		262		310
	3	Occupancy expense		15		18		16		18		18		15		16			19		67		68
	4	Other administrative expenses		79		90		98		81		87		83		96			95		348		361

	5	Total administrative expenses		397		404		308		396		372		383		433			463		1,505		1,651

	6	Provision for credit losses⁽²⁾		1,240		2,537		5,702		6,953		8,915		5,665		7,973			6,977		16,432		29,530
	7	Real estate owned, or REO, operations (income) expense		208		265		333		291		306		9		(96	)		88		1,097		307
	8	Losses on loans purchased		51		120		252		1,211		2,012		1,199		531			1,012		1,634		4,754
	9	Securities administrator loss on investment activity⁽³⁾		—		—		1,082		—		—		—		—			—		1,082		—
	10	Other expenses		87		108		89		151		78		97		97			211		435		483

	11	Total non-interest expense⁽²⁾	$	1,983	$	3,434	$	7,766	$	9,002	$	11,683	$	7,353	$	8,938		$	8,751	$	22,185	$	36,725


(1)	In the third quarter of 2008, we partially reversed our short-term performance compensation that had been previously accrued during 2008.
(2)	During the fourth quarter of 2009, we identified two errors in loss severity rate inputs used by our models to estimate our single-family loan loss reserves. These errors affected amounts previously reported. We have concluded that while these errors are not material to our previously issued consolidated financial statements for the first three quarters of 2009 or to our consolidated financial statements for the full year 2009, the cumulative impact of correcting these errors in the fourth quarter would have been material to the fourth quarter of 2009. We revised our previously reported results for the first three quarters of 2009 to correct these errors in the appropriate quarterly period. These revisions resulted in a net increase to the provision for credit losses in the amounts of $124 million, $466 million and $396 million for the first, second and third quarters of 2009, respectively. Previously reported provision for credit losses were $8,791 million, $5,199 million and $7,577 million for the first, second and third quarters of 2009, respectively. We will appropriately revise the 2009 results in each of our quarterly filings on Form 10-Q when next presented throughout 2010.
(3)	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 investments made by Freddie Mac in Lehman Brothers Holdings, Inc., on the trusts’ behalf.

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


																											Full Year
Line:			1Q 2008			2Q 2008			3Q 2008			4Q 2008			1Q 2009			2Q 2009			3Q 2009			4Q 2009			2008			2009

		Credit Enhancements:

	1	Credit-enhanced percentage of new business purchases		25	%		19	%		23	%		16	%		8	%		6	%		7	%		11	%		21	%		8	%
	2	Credit-enhanced percentage of total mortgage portfolio⁽¹⁾ (period end)		17	%		18	%		18	%		18	%		17	%		17	%		16	%		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	%		3.00	%		1.26	%		3.00	%
	4	Total number of delinquent loans		54,923			68,080			88,786			127,569			174,350			215,078			261,612			305,840			127,569			305,840
		Credit-enhanced portfolio
	5	Delinquency rate		1.81	%		2.10	%		2.75	%		3.79	%		4.85	%		5.82	%		6.98	%		8.17	%		3.79	%		8.17	%
	6	Total number of delinquent loans		39,942			47,216			62,729			85,719			107,427			125,257			147,637			168,903			85,719			168,903
		Total single-family portfolio
	7	Delinquency rate		0.77	%		0.93	%		1.22	%		1.72	%		2.29	%		2.78	%		3.33	%		3.87	%		1.72	%		3.87	%
	8	Total number of delinquent loans		94,865			115,296			151,515			213,288			281,777			340,335			409,249			474,743			213,288			474,743
		Multifamily:
	9	Delinquency rate		0.01	%		0.04	%		0.01	%		0.01	%		0.09	%		0.11	%		0.11	%		0.15	%		0.01	%		0.15	%
	10	Net carrying value of delinquent loans	$	7		$	34		$	12		$	12		$	81		$	102		$	104		$	147		$	12		$	147

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


	11	Repayment plans		12,387			10,691			10,270			8,714			10,459			7,409			7,728			8,129			42,062			33,725
	12	Loan modifications⁽⁵⁾		4,246			4,687			8,456			17,695			24,623			15,603			9,013			15,805			35,084			65,044
	13	Forbearance agreements		817			785			828			1,762			1,853			1,564			3,469			14,469			4,192			21,355
	14	Pre-foreclosure sales		831			1,252			1,911			2,375			3,093			4,821			6,628			8,049			6,369			22,591

	15	Total foreclosure alternatives⁽⁵⁾		18,281			17,415			21,465			30,546			40,028			29,397			26,838			46,452			87,707			142,715

		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		$	100,896		$	45,087		$	100,896
	17	REO assets, net		2,214			2,580			3,224			3,255			2,948			3,416			4,234			4,692			3,255			4,692

	18	Total non-performing assets	$	22,699		$	27,814		$	35,852		$	48,342		$	63,743		$	77,367		$	92,225		$	105,588		$	48,342		$	105,588

		REO Operations Income (Expense):


	19	Single-family	$	(208	)	$	(265	)	$	(333	)	$	(291	)	$	(306	)	$	(1	)	$	98		$	(78	)	$	(1,097	)	$	(287	)
	20	Multifamily		—			—			—			—			—			(8	)		(2	)		(10	)		—			(20	)

	21	Total	$	(208	)	$	(265	)	$	(333	)	$	(291	)	$	(306	)	$	(9	)	$	96		$	(88	)	$	(1,097	)	$	(307	)

		Loan Loss Reserves:⁽⁷⁾


	22	Beginning balance	$	2,822		$	3,872		$	5,813		$	10,220		$	15,618		$	22,802		$	25,787		$	30,564		$	2,822		$	15,618
	23	Provision for credit losses⁽⁸⁾⁽⁹⁾		1,240			2,537			5,702			6,953			8,915			5,665			7,973			6,977			16,432			29,530
	24	Charge-offs — single-family, net		(163	)		(451	)		(856	)		(815	)		(972	)		(1,840	)		(2,155	)		(2,326	)		(2,285	)		(7,293	)
	25	Charge-offs — multifamily, net		—			—			(5	)		(3	)		(2	)		(2	)		(15	)		(2	)		(8	)		(21	)
	26	Transfers, net		(27	)		(145	)		(434	)		(737	)		(757	)		(838	)		(1,026	)		(1,356	)		(1,343	)		(3,977	)

	27	Ending balance⁽⁹⁾	$	3,872		$	5,813		$	10,220		$	15,618		$	22,802		$	25,787		$	30,564		$	33,857		$	15,618		$	33,857

		Total Credit Losses:⁽¹⁰⁾


	28	Total credit losses	$	528		$	810		$	1,275		$	1,154		$	1,320		$	1,916		$	2,156		$	2,509		$	3,767		$	7,901
	29	Annualized credit losses / average total mortgage portfolio⁽¹¹⁾		11.6 bp			17.3 bp			26.8 bp			24.1 bp			27.7 bp			39.8 bp			44.3 bp			51.1 bp			20.1 bp			40.8 bp


(1)		Based on the total mortgage portfolio, excluding 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 and excludes Structured Transactions and that portion of Structured Securities that is backed by Ginnie Mae Certificates. Also excludes securities and guarantees backed by state and local housing finance agencies.
(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 February 24, 2010.
(5)		Excludes 129,380 loans at December 31, 2009, that were in the trial period based on information provided by our servicers to the MHA Program administrator. See “Item 7. — CREDIT RISKS — Loss Mitigation Activities,” in our Form 10-K filed February 24, 2010.
(6)		For more information on our non-performing assets see “Item 7. — CREDIT RISKS — Non-Performing Assets” in our Form 10-K filed February 24, 2010.
(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 consolidated balance sheets, and our provision for guarantee losses incurred on mortgage loans underlying our issued PCs, Structured Securities and other mortgage-related financial guarantees.
(9)		During the fourth quarter of 2009, we identified two errors in loss severity rate inputs used by our models to estimate our single-family loan loss reserves. These errors affected amounts previously reported. We have concluded that while these errors are not material to our previously issued consolidated financial statements for the first three quarters of 2009 or to our consolidated financial statements for the full year 2009, the cumulative impact of correcting these errors in the fourth quarter would have been material to the fourth quarter of 2009. We revised our previously reported results for the first three quarters of 2009 to correct these errors in the appropriate quarterly period. These revisions resulted in a net increase to the provision for credit losses in the amounts of $124 million, $466 million and $396 million for the first, second and third quarters of 2009, respectively, and a corresponding cumulative net increase to our loan loss reserves of $124 million, $590 million and $986 million for the quarters ended March 31, 2009, June 30, 2009 and September 30, 2009, respectively. Previously reported provision for credit losses were $8,791 million, $5,199 million and $7,577 million for the first, second and third quarters of 2009, respectively. We will appropriately revise the 2009 results in each of our quarterly filings on Form 10-Q when next presented throughout 2010.
(10)		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 $280 million and $377 million for the twelve months ended December 31, 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.
(11)		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)


				4Q 2008				1Q 2009				2Q 2009				3Q 2009				4Q 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		2,332				2,320				2,289				2,326				2,331

	2		Delinquent three or more payments		12		0.53%		16		0.69%		19		0.83%		25		1.06%		31		1.32%
	3		Foreclosures approved and in-process		10		0.43%		14		0.60%		18		0.80%		22		0.94%		25		1.05%

	4		Total delinquent loans		22		0.96%		30		1.29%		37		1.63%		47		2.00%		56		2.37%

		Southeast⁽²⁾

	5		Total number of loans		1,950				1,939				1,940				1,956				1,957

	6		Delinquent three or more payments		16		0.82%		20		1.03%		22		1.16%		28		1.42%		34		1.75%
	7		Foreclosures approved and in-process		21		1.04%		28		1.46%		36		1.84%		42		2.14%		47		2.40%

	8		Total delinquent loans		37		1.86%		48		2.49%		58		3.00%		70		3.56%		81		4.15%

		North Central⁽²⁾

	9		Total number of loans		2,289				2,270				2,268				2,281				2,274

	10		Delinquent three or more payments		11		0.49%		14		0.59%		17		0.74%		21		0.94%		25		1.11%
	11		Foreclosures approved and in-process		11		0.49%		16		0.71%		18		0.81%		22		0.95%		25		1.10%

	12		Total delinquent loans		22		0.98%		30		1.30%		35		1.55%		43		1.89%		50		2.21%

		Southwest⁽²⁾

	13		Total number of loans		1,361				1,351				1,349				1,363				1,367

	14		Delinquent three or more payments		5		0.40%		6		0.44%		7		0.51%		8		0.63%		10		0.76%
	15		Foreclosures approved and in-process		4		0.28%		5		0.38%		6		0.45%		7		0.50%		8		0.57%

	16		Total delinquent loans		9		0.68%		11		0.82%		13		0.96%		15		1.13%		18		1.33%

		West⁽²⁾

	17		Total number of loans		2,218				2,218				2,232				2,265				2,271

	18		Delinquent three or more payments		19		0.86%		26		1.16%		33		1.47%		43		1.92%		55		2.40%
	19		Foreclosures approved and in-process		18		0.81%		29		1.34%		39		1.72%		44		1.93%		46		2.04%

	20		Total delinquent loans		37		1.67%		55		2.50%		72		3.19%		87		3.85%		101		4.44%

		Total

	21		Total number of loans		10,150				10,098				10,078				10,191				10,200

	22		Delinquent three or more payments		64		0.64%		82		0.80%		98		0.97%		126		1.24%		155		1.52%
	23		Foreclosures approved and in-process		64		0.62%		92		0.93%		117		1.16%		136		1.33%		151		1.48%

	24		Total delinquent loans		128		1.26%		174		1.73%		215		2.13%		262		2.57%		306		3.00%


	25		90-day or more delinquency to REO, transition rate⁽⁴⁾				25.5%				24.8%				24.7%				20.0%				16.4%


(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. Also excludes securities and guarantees backed by state and local housing finance agencies.
(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 pre-foreclosure sale transactions.

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


																											Full Year
Line:			1Q 2008			2Q 2008			3Q 2008			4Q 2008			1Q 2009			2Q 2009			3Q 2009			4Q 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			3,832			1,474			2,753
	2	Properties Acquired		1,267			1,310			1,485			1,063			1,123			1,827			2,103			2,476			5,125			7,529
	3	Properties Disposed		(622	)		(1,000	)		(1,121	)		(1,103	)		(1,240	)		(1,283	)		(1,451	)		(1,689	)		(3,846	)		(5,663	)

	4	Ending Property Inventory		2,119			2,429			2,793			2,753			2,636			3,180			3,832			4,619			2,753			4,619

		Southeast
	5	Beginning Balance		2,686			3,259			3,924			4,851			5,172			5,689			6,496			7,660			2,686			5,172
	6	Properties Acquired		1,983			2,614			3,231			2,897			3,555			4,441			5,332			5,927			10,725			19,255
	7	Properties Disposed		(1,410	)		(1,949	)		(2,304	)		(2,576	)		(3,038	)		(3,634	)		(4,168	)		(4,838	)		(8,239	)		(15,678	)

	8	Ending Property Inventory		3,259			3,924			4,851			5,172			5,689			6,496			7,660			8,749			5,172			8,749

		North Central
	9	Beginning Balance		6,121			7,113			7,763			9,050			9,251			8,527			10,901			12,915			6,121			9,251
	10	Properties Acquired		3,137			3,445			3,995			3,101			2,754			6,143			5,743			5,306			13,678			19,946
	11	Properties Disposed		(2,145	)		(2,795	)		(2,708	)		(2,900	)		(3,478	)		(3,769	)		(3,729	)		(4,573	)		(10,548	)		(15,549	)

	12	Ending Property Inventory		7,113			7,763			9,050			9,251			8,527			10,901			12,915			13,648			9,251			13,648

		Southwest
	13	Beginning Balance		2,230			2,545			2,651			2,924			2,761			2,875			3,329			4,063			2,230			2,761
	14	Properties Acquired		1,370			1,465			1,616			1,235			1,659			2,094			2,540			2,649			5,686			8,942
	15	Properties Disposed		(1,055	)		(1,359	)		(1,343	)		(1,398	)		(1,545	)		(1,640	)		(1,806	)		(2,151	)		(5,155	)		(7,142	)

	16	Ending Property Inventory		2,545			2,651			2,924			2,761			2,875			3,329			4,063			4,561			2,761			4,561

		West
	17	Beginning Balance		1,883			3,383			5,262			8,474			9,409			9,424			10,800			12,670			1,883			9,409
	18	Properties Acquired		2,182			3,576			5,556			4,003			4,898			7,493			8,657			8,392			15,317			29,440
	19	Properties Disposed		(682	)		(1,697	)		(2,344	)		(3,068	)		(4,883	)		(6,117	)		(6,787	)		(7,587	)		(7,791	)		(25,374	)

	20	Ending Property Inventory		3,383			5,262			8,474			9,409			9,424			10,800			12,670			13,475			9,409			13,475

		Total
	21	Beginning Balance		14,394			18,419			22,029			28,092			29,346			29,151			34,706			41,140			14,394			29,346
	22	Properties Acquired		9,939			12,410			15,883			12,299			13,989			21,998			24,375			24,750			50,531			85,112
	23	Properties Disposed		(5,914	)		(8,800	)		(9,820	)		(11,045	)		(14,184	)		(16,443	)		(17,941	)		(20,838	)		(35,579	)		(69,406	)

	24	Ending Property Inventory		18,419			22,029			28,092			29,346			29,151			34,706			41,140			45,052			29,346			45,052


		REO Balance, net (dollars in millions)

		Single-family property, by region⁽¹⁾:
	25	Northeast	$	358		$	381		$	402		$	374		$	337		$	400		$	495		$	598		$	374		$	598
	26	Southeast		330			373			451			460			459			521			668			771			460			771
	27	North Central		619			636			715			720			634			796			980			1,041			720			1,041
	28	Southwest		253			253			266			255			261			307			392			449			255			449
	29	West		654			937			1,365			1,399			1,217			1,357			1,654			1,802			1,399			1,802

	30	Total single-family property		2,214			2,580			3,199			3,208			2,908			3,381			4,189			4,661			3,208			4,661
	31	Total multifamily property		—			—			24			47			40			35			45			31			47			31

	32	Total REO Balance, net	$	2,214		$	2,580		$	3,223		$	3,255		$	2,948		$	3,416		$	4,234		$	4,692		$	3,255		$	4,692


(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 - February 24, 2010

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