Attached files
| file | filename |
|---|---|
| 8-K - 8-K - FEDERAL HOME LOAN MORTGAGE CORP | d53348d8k.htm |
| EX-99.1 - EXHIBIT 99.1 - FEDERAL HOME LOAN MORTGAGE CORP | d53348dex991.htm |
 Second
Quarter 2015 Financial Results Supplement
August 4, 2015 Exhibit 99.2 |
 © Freddie Mac
Table of contents 1 Financial Results Segment Business Information 2 - Quarterly Financial Results 11 - Single-Family New Funding Volume 3 - Financial Results - Key Drivers 12 - 4 - Financial Results - Key Drivers: Derivative Gains (Losses) 13 - Single-Family Risk Transfer Transactions 5 - Comprehensive Income 14 - 6 - Treasury Draw Requests and Dividend Payments 15 - 7 - Segment Financial Results 16 - 17 - Housing Market 18 - 8 - National Home Prices 19 - 9 - Home Price Performance by State: June 2014 to June 2015 20 - 10 - 21 - 22 - 23 - 24 - 25 - 26 - Single-Family Management and Guarantee Fees Charged on New Acquisitions Interest Rate Risk Measures Single-Family Transferred Credit Risk Housing Market Support Single-Family Credit Quality - Purchases Multifamily Securitization Volume Multifamily Market and Freddie Mac Delinquency Rates Multifamily Business Volume and Portfolio Composition Investments - Mortgage-Related Investments Portfolio: More Liquid versus Less Liquid Assets Investments - Purchase Agreement Portfolio Limits Single-Family Credit Quality - Credit Guarantee Portfolio Single-Family Mortgage Market and Freddie Mac Delinquency Rates Multifamily Percentage of Affordable Units Financed Single-Family Real Estate Owned Investments - Mortgage-Related Investments Portfolio Composition |
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Quarterly financial results
Note: Columns and rows may not add due to rounding.
2 $ Millions 2Q15 vs 2Q15 1Q15 1Q15 1 Net interest income 3,969 $ 3,647 $ 322 $ 2 Benefit for credit losses 857 499 358 3 Derivative gains (losses) 3,135 (2,403) 5,538 4 Other non-interest income (loss) (594) 256 (850) 5 Non-interest income (loss) 2,541 (2,147) 4,688 6 Non-interest expense (1,289) (1,211) (78) 7 Pre-tax income 6,078 $ 788 $ 5,290 $ 8 Income tax expense (1,909) (264) (1,645) 9 Net income 4,169 $ 524 $ 3,645 $ 10 Total other comprehensive income (loss), net of taxes (256) 222 (478) 11 Comprehensive income 3,913 $ 746 $ 3,167 $ 12 Total equity / GAAP net worth (ending balance) 5,713 $ 2,546 $ 3,167 $ |
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Financial results – key drivers Net Interest Income and Net Interest Yield $ Billions Benefit (Provision) for Credit Losses $ Billions Other Non-Interest Income (Loss) 1 $ Billions Administrative Expense and Efficiency Ratio 2 $ Billions 1 Includes settlement benefits from private-label securities litigation. 2 Efficiency (in basis points) is the ratio of administrative expense to the average total mortgage portfolio, calculated on an annualized basis. 3 Annual 2013: $16.5; 82 bps 2014: $14.3; 74 bps Annual 2013: $2.5 2014: ($0.1) Annual 2013: ($1.8); 9.3 bps 2014: ($1.9); 9.8 bps Annual 2013: $5.9 2014: $8.2 ($0.45) ($0.47) ($0.49) ($0.45) ($0.50) 9.5 bps 10.0 bps 10.3 bps 9.4 bps 10.4 bps 2Q14 3Q14 4Q14 1Q15 2Q15 Administrative Expense Efficiency Ratio $3.5 $3.7 $3.6 $3.6 $4.0 73 bps 77 bps 74 bps 75 bps 82 bps 2Q14 3Q14 4Q14 1Q15 2Q15 Net interest income Net interest yield $0.5 $1.4 $0.8 $0.3 ($0.6) 2Q14 3Q14 4Q14 1Q15 2Q15 $0.6 ($0.6) ($0.02) $0.5 $0.9 2Q14 3Q14 4Q14 1Q15 2Q15 |
 © Freddie Mac
2-Year and 10-Year LIBOR Rates
Percent (%) Derivative Gains (Losses) Fair Value Changes vs. Interest Carry 1 $ Billions 4 ($1.9) ($0.6) ($3.4) 1 Represents the net amount the company accrues during a period for interest-rate swap payments it will make or receive.
Note: Totals may not add due to rounding.
($2.4) $3.1 ($0.7) ($0.6) ($0.7) ($0.6) ($0.5) ($1.3) ($2.7) ($1.8) $3.7 2Q14 3Q14 4Q14 1Q15 2Q15 Derivative Interest Carry Derivative Fair Value Changes 0.58 0.83 0.89 0.81 0.83 0.84 0.90 2.61 2.66 2.29 2.03 2.13 2.19 2.45 2Q14 3Q14 4Q14 1Q15 Apr-15 May-15 Jun-15 2-Year 10-Year Financial results – key drivers: Derivative gains (losses)
|
 © Freddie Mac
Comprehensive income 1 Consists of the after-tax changes in: (a) the unrealized gains and losses on available-for-sale securities; (b) the effective portion
of derivatives previously designated as cash flow hedges; and (c) defined
benefit plans. A
B C = A + B $ Billions 5 $1.9 $2.8 $0.3 $0.7 $3.9 2Q14 3Q14 4Q14 1Q15 2Q15 Net income Total other comprehensive income (loss), net of taxes Comprehensive income ¹ |
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Dividend Payments to Treasury
5 Draw Requests from Treasury 4 Treasury draw requests and dividend payments 1 The initial $1 billion liquidation preference of senior preferred stock was issued to Treasury in September 2008 as consideration for
Treasury’s funding commitment. The company received no cash
proceeds as a result of issuing this initial $1 billion liquidation preference of senior preferred stock. 2 Amounts may not add due to rounding. 3 Amount does not include the September 2015 dividend obligation of $3.9 billion. 4 Annual amounts represent the total draws requested based on Freddie Mac’s quarterly net deficits for the periods presented. Draw
requests are funded in the subsequent quarter (e.g., $19 million draw
request for 1Q12 was funded in 2Q12). 5
Represents quarterly cash dividends paid by Freddie Mac to Treasury during the periods
presented. Through December 31, 2012, Treasury was entitled to receive cumulative quarterly cash dividends at the annual rate of 10% per year on the liquidation preference of the senior preferred stock. However, the fixed
dividend rate was replaced with a net worth sweep dividend payment
beginning in the first quarter of 2013. See the company’s Annual Report on Form 10-K for the year ended December 31, 2014 for more information. $ Billions Draw Requests From Treasury Dividend Payments to Treasury 6 Cumulative Total Total Senior Preferred Stock Outstanding $72.3 Less: Initial Liquidation Preference 1 $1.0 Treasury Draws $71.3 Cumulative Total Dividend Payments as of 6/30/15 $92.6 3Q15 Dividend Obligation $3.9 Total Dividend Payments 2 $96.5 $44.6 $6.1 $13.0 $7.6 $0.02 $0.0 $0.0 $0.0 2008 2009 2010 2011 2012 2013 2014 YTD 2015 $0.2 $4.1 $5.7 $6.5 $7.2 $47.6 $19.6 $1.6 2008 2009 2010 2011 2012 2013 2014 YTD 2015 3 |
 © Freddie Mac
Segment financial results
$ Billions Investments Multifamily Single-Family Guarantee 1 Comprehensive Income Segment Earnings Segment Other Comprehensive Income (Loss) $3.0 $0.3 $0.5 1 Comprehensive income approximated segment earnings for both 1Q15 and 2Q15. Note: Totals may not add due to rounding. 7 $0.1 $0.4 $0.4 $0.1 $0.5 1Q15 2Q15 $0.2 ($0.2) $0.2 $3.2 1Q15 2Q15 ($0.1) $0.3 $0.5 1Q15 2Q15 |
 © Freddie Mac
1 National home prices use the Freddie Mac House Price Index for the U.S., which is a value-weighted average of the state indices where the
value weights are based on Freddie Mac’s
single-family credit guarantee portfolio. Other indices of home prices may have different results, as they are determined using home prices relating to different pools of mortgage loans and calculated under different conventions than Freddie Mac’s. Quarterly growth rates are calculated as a 3-month change based on
the final month of each quarter. ‘SA’ denotes
‘Seasonally Adjusted’ and ‘NSA’ denotes ‘Not Seasonally
Adjusted’; seasonal factors typically result in stronger house-price appreciation during the second and third quarters. Historical growth rates change as new data becomes available. Values for the most recent periods typically see the largest changes. Cumulative
decline, based on the NSA series, calculated as the percent change from
June 2006 to June 2015. Source: Freddie Mac.
National home prices 1 Cumulative decline of 6% since June 2006 (NSA Series) Freddie Mac House Price Index (December 2000=100) 8 100 110 120 130 140 150 160 170 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 United States (SA) United States (NSA) 2015Q2 NSA Index Growth: 3.7% 2015Q2 SA Index Growth: 1.2% |
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4% AL 3% AK 8% 4 to 7% -1 to 1% 2 to 3% 4% AR 6% AZ 8% CA 12% CO CT -1% DC 9% DE 3% 9% FL 7% GA 5% HI 3% IA 5% ID 3% IL 3% IN 3% KS KY 3% 5% LA 3% 5% ME 7% MI 4% MN 6% MO 3% MS 5% MT NC 6% 4% ND 5% NE NJ 1% 2% NM 9% NV 2% NY 5% OH 3% OK 9% OR 1% PA RI 3% 5% SC 5% SD TN 6% 8% TX 6% UT 1% VA 10% WA 3% WI 6% WV 3% WY 4% 4% VT 3% MD MA NH Home price performance by state June 2014 to June 2015 1 United States 5% 1 The Freddie Mac House Price Index for the U.S. is a value-weighted average of the state indexes where the value weights are based on Freddie Mac’s single-family credit guarantee portfolio. Other indices of home prices may have different results, as they are determined using different pools of mortgage loans and calculated under different conventions. The Freddie Mac House Price Index for the U.S. is a non-seasonally adjusted monthly series. Percent changes were rounded to nearest whole percentage point. Source: Freddie Mac 9 |
 © Freddie Mac
Housing market support Number of Families Freddie Mac Helped to Own or Rent a Home 1 In Thousands Single-Family Loan Workouts 2 Number of Loans (000) 1 Based on the company’s purchases of loans and issuances of mortgage-related securities. For the periods presented, a borrower may
be counted more than once if the company purchased more than one loan
(purchase or refinance mortgage) relating to the same borrower. 2
Consists of both home retention actions and foreclosure
alternatives. 3
These categories are not mutually exclusive and a borrower in one category may also be
included in another category in the same or another period. For example, a borrower helped through a home retention action in one period may subsequently lose his or her home through a foreclosure alternative in a later
period. 133
275 208 169 168 Repayment plans 3 Loan modifications 3 Forbearance agreements 3 Short sales and deed-in-lieu of foreclosure transactions 3 Home Retention Actions Foreclosure Alternatives Cumulative Since 2009: 14,069 Cumulative Since 2009: 1,126 10 120 53 2,480 2,089 1,830 2,472 2,458 1,627 1,113 2009 2010 2011 2012 2013 2014 YTD 2015 2009 2010 2011 2012 2013 2014 YTD 2015 |
 © Freddie Mac
$26 $33 $36 $52 $62 $33 $43 $35 $28 $39 2Q14 3Q14 4Q14 1Q15 2Q15 Refi UPB Purchase UPB Single-family new funding volume $ Billions $59 $77 $71 $80 11 Note: Totals may not add due to rounding. Annual 2013: $423 2014: $255 $101 |
 © Freddie Mac
Single-family management and guarantee fees charged
on new acquisitions 1 Includes the effect of fee adjustments that are based on the price performance of Freddie Mac’s PCs relative to comparable Fannie Mae securities. 2 Represents the estimated average rate of management and guarantee fees for new acquisitions during the period assuming amortization of delivery
fees using the estimated life of the related loans rather than the
original contractual maturity date of the related loans. 3
Net of legislated 10 basis point guarantee fee remitted to Treasury as part of the Temporary Payroll Tax Cut Continuation Act of 2011. Quarterly In Basis Points (bps), Annualized 12 Annual In Basis Points (bps) Single-Family Management and Guarantee Fee Charged on New Acquisitions (net of amounts remitted to Treasury) 1, 2, 3 48 47 47 47 45 2Q14 3Q14 4Q14 1Q15 2Q15 20 25 27 31 41 47 2009 2010 2011 2012 2013 2014 |
 © Freddie Mac
Single-family risk transfer transactions
Structured Agency Credit Risk
(STACR ® ) Debt Note Issuances $ Billions Agency Credit Insurance Structure ® (ACIS ® Reinsurance) Transactions $ Millions 13 1 At issuance. Includes $138.4 billion of UPB related to credit risk transfer transactions completed during the first half of 2015.
2 In March 2015, Freddie Mac and one of its ACIS counterparties revised a number of the company’s existing ACIS policies changing the coverage
from calculated losses using a predefined formula to coverage based on
actual losses. $4.9
$1.1 2013 2014 YTD 2015 $706.7 $223.1 2013 2014 YTD 2015 Calculated loss Actual loss Calculated loss Actual loss $2.2 $2.0 $4.1 $77.4 $709.2 $929.9 Cumulative $ Billions STACR Issuances $10.2 ACIS Reinsurance Transactions $1.7 Reference Pool UPB 1 $343.8 2 |
 © Freddie Mac
Single-family Transferred Credit Risk
Based on Remaining Balance as of Period End
$ Billions Single-family transferred credit risk 1 14 1 Represents single-family credit risk transferred through STACR debt note and ACIS (re)insurance transactions.
2 Freddie Mac holds the senior risk, which is unfunded and not issued. 09/30/14
12/31/14 03/31/15
06/30/15 Mezzanine loss positions: Transferred to third parties Mezzanine loss positions: Retained by Freddie Mac First loss positions: Transferred to third parties First loss positions: Retained by Freddie Mac $0.2 $0.6 $5.5 $6.7 $8.8 $10.7 $0.7 $0.9 $1.2 $1.9 $1.7 $1.7 $1.2 $2.7 Freddie Mac senior loss positions 2 $166.3 $183.3 $216.3 $292.8 Total reference pools $174.2 $192.5 $227.7 $308.6 |
 © Freddie Mac
Single-family credit quality - purchases Percent (%) 1 Original LTV ratios are calculated as the unpaid principal balance (UPB) of the mortgage Freddie Mac guarantees including the credit-enhanced
portion, divided by the lesser of the appraised value of the property at
the time of mortgage origination or the mortgage borrower’s purchase price. Second liens not owned or guaranteed by Freddie Mac are excluded from the LTV ratio calculation. The existence of a second lien mortgage reduces the borrower’s equity in the home and, therefore, can
increase the risk of default. 2
Credit score data is based on FICO scores at the time of loan origination or Freddie
Mac’s purchase and may not be indicative of the borrowers’ current creditworthiness. FICO scores can range between approximately 300 and 850 points. 15 80 77 77 97 91 82 75 66 67 67 68 71 76 73 67 70 70 76 75 76 73 2009 2010 2011 2012 2013 2014 YTD 2015 Relief refinance (includes HARP) All other Total purchases 738 747 744 740 727 713 721 757 758 759 762 756 748 753 756 755 755 756 749 744 751 2009 2010 2011 2012 2013 2014 YTD 2015 Relief refinance (includes HARP) All other Total purchases Weighted Average Credit Score 2 Weighted Average Original LTV Ratio 1 |
 1 Loans acquired after 2008, excluding HARP and other relief refinance loans which are presented separately.
Concentration of Credit Risk
Percent (%) Serious Delinquency Rates Percent (%) 16 63 2 19 6 12 83 6 9 % of Portfolio As of June 30, 2015 % of Credit Losses For Six Months Ended June 30, 2015 New single-family book¹ HARP and other relief refinance loans 2005 - 2008 legacy single-family book Pre-2005 legacy single-family book 0.23 0.23 0.24 0.22 0.21 0.66 0.70 0.75 0.75 0.70 7.93 7.66 7.59 7.10 6.54 3.11 3.12 3.10 2.97 2.75 2.07 1.96 1.88 1.73 1.53 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 New single-family book¹ HARP and other relief refinance loans 2005 - 2008 legacy single-family book Pre-2005 legacy single-family book Total © Freddie Mac Single-family credit quality – credit guarantee portfolio |
 © Freddie Mac
Single-family real estate owned
Property Inventory 2Q15 Activity Historical Trend Ending Property Inventory (Number of Properties) (Number of Properties) 17 22,738 19,484 5,824 (9,078) 03/31/15 Inventory Acquisitions Dispositions 06/30/15 Inventory 45k 23k 47k 47k 44k 36k 29k 26k 19k 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 |
 © Freddie Mac
1 Source: National Delinquency Survey from the Mortgage Bankers Association. Categories represent first lien single-family loans.
Data is not yet available for the second quarter of 2015.
1 1 1 16.16% 4.24% 2.46% 1.73% Single-family Serious Delinquency Rates Single-family mortgage market and Freddie Mac delinquency rates 2 18 0 4 8 12 16 20 24 28 32 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Total Mortgage Market Prime Subprime Freddie Mac 2 See “MD&A – RISK MANAGEMENT – Credit Risk Overview – Single-Family Mortgage Credit Risk Framework and Profile– Monitoring Loan Performance” in Freddie Mac’s Form
10-K for the year ended December 31, 2014, for information
about the company’s reported delinquency rates. The single-family serious delinquency rate at June 30, 2015 was 1.53%. |
 © Freddie Mac
Total Multifamily Portfolio
UPB $ Billions Multifamily business volume and portfolio composition Multifamily New Business Volume $ Billions 1 Primarily K-Deals. 19 $15 $20 $29 $26 $28 $23 2010 2011 2012 2013 2014 YTD 2015 $179 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 06/30/15 MF unsecuritized loan portfolio MF investment securities portfolio MF guarantee portfolio¹ $169 $167 $180 $177 $169 |
 © Freddie Mac
Note: Totals may not add due to rounding.
Multifamily percentage of affordable units financed
Multifamily Acquisitions of Units by Area Median Income (AMI)
% of Units Acquired 20 87% of units acquired year-to- date June 30, 2015 are affordable to households earning at or below 100% AMI 11% 8% 14% 12% 16% 17% 13% 12% 62% 56% 61% 67% 63% 58% 61% 59% 17% 19% 15% 14% 13% 14% 16% 16% 11% 18% 10% 7% 8% 11% 10% 13% 2008 2009 2010 2011 2012 2013 2014 YTD 2015 50% AMI or less >50%-80% AMI >80%-100% AMI >100% AMI |
 © Freddie Mac
K-Deal Securitization Volume 1 UPB $ Billions Multifamily securitization volume 1 Represents the UPB of multifamily loans sold via Freddie Mac’s K Certificate transactions.
Note: Totals may not add due to rounding.
21 $2.1 $6.4 $13.7 $21.2 $28.0 $21.3 $15.2 2009 2010 2011 2012 2013 2014 YTD 2015 2009 2010 2011 2012 2013 2014 YTD 2015 Total Total UPB 1 $2.1 $6.4 $13.7 $21.2 $28.0 $21.3 $15.2 $108.0 Number of Transactions 2 6 12 17 19 17 12 85 |
 © Freddie Mac
0.00% Multifamily market and Freddie Mac delinquency rates Percent 1 See “MD&A – RISK MANAGEMENT – Credit Risk Overview – Multifamily Mortgage Credit Risk Profile”
in Freddie Mac’s Form 10-K for the year ended December 31, 2014, for information about the company’s reported multifamily delinquency rate. The multifamily delinquency rate at June 30, 2015 was 0.01%. Source: Freddie Mac, FDIC Quarterly Banking Profile, TREPP (CMBS multifamily 60+ delinquency rate, excluding REOs), American Council of Life Insurers (ACLI). Non-Freddie Mac data is not yet available for the second quarter of 2015. 1.22% 0.41% 0.03% 22 0 2 4 6 8 10 12 14 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 1Q15 Freddie Mac (60+ day) 1 FDIC Insured Institutions (90+ day) MF CMBS Market (60+ day) ACLI Investment Bulletin (60+ day) |
 © Freddie Mac
Mortgage-related investments portfolio ending balance
Mortgage-related investments portfolio limit
Investments – Purchase Agreement portfolio limits Indebtedness 1, 3 $ Billions Mortgage Assets 1, 2 $ Billions 1 The company’s Purchase Agreement with Treasury limits the amount of mortgage assets the company can own and indebtedness it can incur.
Under the Purchase Agreement, mortgage assets and indebtedness are
calculated without giving effect to the January 1, 2010 change in the accounting guidance related to the transfer of financial assets and consolidation of variable interest entities (VIEs). See the company’s Annual Report on Form 10-K for the year ended December 31,
2014 for more information. 2
Represents the unpaid principal balance (UPB) of the company’s
mortgage-related investments portfolio. The company discloses its mortgage assets on this basis monthly in its Monthly Volume Summary reports, which are available on its Web site and in Current Reports on Form 8-K filed with the Securities and Exchange Commission (SEC). 3 Represents the par value of the company’s unsecured short-term and long-term debt securities issued to third parties to fund its
business activities. The company discloses its indebtedness on this
basis in its Monthly Volume Summary reports, which are available on its Web site and in Current Reports on Form 8-K filed with the SEC. Indebtedness limit Total debt outstanding 23 $454 $451 $417 $663 $564 $564 $564 $564 12/31/14 03/31/15 06/30/15 09/30/15 12/31/15 $408 $406 $383 $470 $470 $470 $470 $399 12/31/14 03/31/15 06/30/15 09/30/15 12/31/15 |
 © Freddie Mac
1 Based on unpaid principal balances and excludes mortgage-related securities traded, but not yet settled. The mortgage-related
investments portfolio is determined without giving effect to the January
1, 2010 change in accounting standards related to the transfer of financial assets and consolidation of variable interest entities (VIEs). 2 Mortgage loans totaled $161.2 billion at June 30, 2015 of which $106.6 billion were single-family and $54.7 billion were
multifamily. Mortgage-Related
Investments Portfolio 1 $ Billions $755 $697 $653 $558 $461 24 $408 $383 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 06/30/15 Mortgage Loans 2 Non-Freddie Mac Mortgage-Related Securities (Non-Agency) Non-Freddie Mac Mortgage-Related Securities (Agency) Freddie Mac PCs and Structured Securities Investments – mortgage-related investments portfolio composition |
 © Freddie Mac
More Liquid versus Less Liquid Assets
$ Billions 25 1 Less liquid assets include unsecuritized single-family and multifamily mortgage loans, certain structured agency securities collateralized
with non-agency mortgage-related securities, and the
company’s investments in non-agency mortgage-related securities.
62% 63% 62% 59% 59% 58% 36% 38% 37% 38% 41% 41% 42% $558 $461 $434 $420 $414 $408 $383 12/31/12 12/31/13 03/31/14 06/30/14 03/30/14 12/31/14 06/30/15 Less Liquid Assets 1 More Liquid Assets 64% Investments – mortgage-related investments portfolio: More liquid versus less liquid assets |
 © Freddie Mac
$ Millions Average Monthly PMVS-Level 1 Interest-rate risk measures Average Monthly Duration Gap 2 Months 1 Portfolio Market Value Sensitivity, or PMVS, is an estimate of the change in the market value of Freddie Mac’s financial assets and
liabilities from an instantaneous 50 basis point shock to interest rates,
assuming no rebalancing actions are undertaken and assuming the mortgage-to-LIBOR basis does not change. PMVS-Level or PMVS-L measures the estimated sensitivity of the company’s portfolio market value to parallel movements in interest rates.
2 Duration gap measures the difference in price sensitivity to interest rate changes between Freddie Mac’s financial assets and liabilities, and is expressed in months relative to the market value of assets. 26 $95 $26 $23 $55 $93 $127 $99 $122 $146 $105 $90 $78 $123 0 50 100 150 200 Jun 14 Jul 14 Aug 14 Sep 14 Oct 14 Nov 14 Dec 14 Jan 15 Feb 15 Mar 15 Apr 15 May 15 Jun 15 (6) (5) (4) (3) (2) (1) 0 1 2 3 4 5 6 Jun 14 Jul 14 Aug 14 Sep 14 Oct 14 Nov 14 Dec 14 Jan 15 Feb 15 Mar 15 Apr 15 May 15 Jun 15 |
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Safe Harbor Statements Freddie Mac obligations Freddie Mac’s securities are obligations of Freddie Mac only. The securities, including any interest or return of discount on the securities, are not guaranteed by and are not debts or obligations of the United States or any federal agency or instrumentality other than Freddie
Mac. No offer or solicitation of securities This presentation includes information related to, or referenced in the offering documentation for, certain Freddie Mac securities,
including offering circulars and related supplements and agreements. Freddie Mac
securities may not be eligible for offer or sale in certain
jurisdictions or to certain persons. This information is provided for your general information only, is current only as of its specified date and does not constitute an offer to sell or a solicitation of an offer to buy securities. The information does not constitute a sufficient
basis for making a decision with respect to the purchase or sale of any
security. All information regarding or relating to Freddie Mac
securities is qualified in its entirety by the relevant offering circular and any
related supplements. Investors should review the relevant offering
circular and any related supplements before making a decision with respect to the purchase or sale of any security. In addition, before purchasing any security, please consult your legal and financial advisors for information about and analysis of the security, its
risks and its suitability as an investment in your particular
circumstances. Forward-looking statements
Freddie Mac's presentations may contain forward-looking statements, which may
include statements pertaining to the conservatorship, the company’s
current expectations and objectives for its single-family, investment and multifamily businesses, its loan workout initiatives and other efforts to assist the U.S. residential mortgage market, liquidity, capital management, economic and market
conditions and trends, market share, the effect of legislative and regulatory
developments and new accounting guidance, credit quality of loans we
guarantee, and results of operations and financial condition on a GAAP, Segment Earnings and fair value basis. Forward- looking statements involve known and unknown risks and uncertainties, some of which are beyond the company’s control.
Management’s expectations for the company’s future necessarily involve a
number of assumptions, judgments and estimates, and various factors,
including changes in market conditions, liquidity, mortgage spreads, credit outlook, actions by the U.S. government (including FHFA, Treasury and Congress), and the impacts of legislation or regulations and new or amended accounting guidance, could
cause actual results to differ materially from these expectations. These assumptions,
judgments, estimates and factors are discussed in the company’s
Annual Report on Form 10-K for the year ended December 31, 2014, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2015 and June 30, 2015 and Current Reports on Form 8-K, which are available on the Investor Relations page of the
company’s Web site at www.FreddieMac.com/investors and the
SEC’s Web site at www.sec.gov. The company undertakes no obligation
to update forward-looking statements it makes to reflect events or circumstances occurring after the date of this presentation. 27 |