Proceeds from / Repayments of Debt (USD, millions)

Net Change in Cash (USD, millions)

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Single-Family

- Net Interest Income

- Non-Interest Income

Multifamily

Capital Markets

Segment Earnings (Net of Taxes)

:--------------------------------

Single-family Guarantee

Investments

All Other

Total Segment Earnings

Total Revenue

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Freddie Mac (FMCC) is a government-sponsored enterprise that plays a crucial role in the U.S. housing market by providing liquidity, stability, and affordability. The company primarily engages in acquiring loans from lenders, securitizing these loans into mortgage-related securities, and managing associated risks. Freddie Mac sells mortgage-related securities and offers guarantees on these securities to investors, generating income through net interest, guarantee fees, and gains on loan sales.

1. **Single-Family Segment** - Involves the purchase, securitization, and guarantee of single-family loans, managing mortgage credit risk and market risk, and includes treasury functions not allocated to other segments.  **[0001026214-22-000150_fmcc-20220930.htm:67]** **[0001026214-24-000039_fmcc-20240331.htm:8]** 
2. **Multifamily Segment** - Focuses on the purchase, securitization, and guarantee of multifamily loans, managing associated credit and market risks, and offers a variety of loan products through its Optigo network, including conventional, targeted affordable housing, and small balance loans.  **[0001026214-22-000150_fmcc-20220930.htm:67]** **[0001026214-24-000039_fmcc-20240331.htm:8]**

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Subsequent Defaults of Restructured Loans ($ million)

Index Lock Agreements and Commitments ($ billion)

Multifamily Mortgage Portfolio CRT Issuance ($ million)

Serious Delinquency Rates - Credit-Enhanced (%)

Serious Delinquency Rates - Non-Credit-Enhanced (%)

Interest Rate Reduction (%)

Months of Term Extension

Payment Deferral or Forbearance ($)

741b38db58c51f54244572010f00b73156d126d533e13d0d68b8780d57227248

| Name               | Position                                              | Start Date        | Short Bio                                                                                                                                                                                                                                                                                                                                 |
|--------------------|-------------------------------------------------------|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Michael J. DeVito  | Chief Executive Officer                               | June 2021         | Michael J. DeVito has served as CEO since June 2021 and has over 30 years of experience in the mortgage and financial services industries. He announced his intention to retire effective March 15, 2024.  **[0001026214-24-000025_fmcc-20231231.htm:307]** **[0001026214-23-000099_ex991pressreleasesept82023.htm:0]**                                                                                                                         |
| Michael T. Hutchins| President                                             | December 2020     | Michael T. Hutchins has been President since December 2020, after serving as interim President. He joined Freddie Mac in 2013 and has held various senior roles, including EVP - Investments and Capital Markets.  **[0001026214-24-000031_fmcc-20240315.htm:1]** **[0001026214-23-000037_fmcc-20221231.htm:321]** **[0001026214-22-000031_fmcc-20211231.htm:347]** **[0001026214-24-000025_fmcc-20231231.htm:322]**                                                                                                            |
| Christian M. Lown  | Executive Vice President & Chief Financial Officer    | N/A               | Christian M. Lown is the EVP & CFO as of at least February 22, 2023, but specific start date details are not provided.  **[0001026214-23-000037_a4q2210kexhibit322.htm:0]**                                                                                                                                                                                                               |
| Anil D. Hinduja    | Executive Vice President - Chief Risk Officer         | July 2015         | Anil D. Hinduja has been the EVP and CRO since July 2015, responsible for the company's enterprise-wide risk framework. He previously held risk management roles at Barclays PLC and Citigroup.  **[0001026214-24-000025_fmcc-20231231.htm:323]** **[0001026214-23-000037_fmcc-20221231.htm:322]**                                                                                                                                     |
| Heidi L. Mason     | Executive Vice President & General Counsel            | March 7, 2022     | Heidi L. Mason has been the EVP and General Counsel since March 7, 2022, overseeing legal strategies and corporate governance. She was previously a partner at ElevateNext Law and held senior roles at Wells Fargo.  **[0001026214-24-000025_fmcc-20231231.htm:323]** **[0001026214-22-000035_ex991pressreleasefeb1422.htm:0]**                                                                                                               |
| Ravi Shankar       | Senior Vice President - Single-Family Portfolio & Servicing | November 2022    | Ravi Shankar rejoined Freddie Mac in November 2022 as SVP, overseeing portfolio management and servicing. He has held senior advisor roles at Boston Consulting Group and United Wholesale Mortgage, and previously worked at Freddie Mac, JP Morgan Chase, and Citigroup.  **[0001026214-24-000025_fmcc-20231231.htm:325]** **[0001026214-23-000037_fmcc-20221231.htm:323]**                                                       |
| John Glessner      | Senior Vice President - Investments and Capital Markets | April 2021       | John Glessner has been SVP since April 2021, managing liquidity, financing, securitization, and derivative activities. He re-joined Freddie Mac in 2010 after various trading positions at other firms.  **[0001026214-24-000025_fmcc-20231231.htm:323]** **[0001026214-23-000037_fmcc-20221231.htm:321]** **[0001026214-22-000031_fmcc-20211231.htm:348]**                                                                                                                        |
| Sonu Mittal        | Senior Vice President - Single-Family Acquisitions    | March 2023        | Sonu Mittal has been SVP since March 2023, overseeing seller engagement, credit, products, and affordable mission goals. He has extensive experience in sales, operations, and capital markets from previous roles at Citizens Bank and Capital One.  **[0001026214-24-000025_fmcc-20231231.htm:324]**                                                                                |
| Frank Nazzaro      | Executive Vice President - Enterprise Operations & Technology | April 2021    | Frank Nazzaro has been EVP since April 2021, initially joining Freddie Mac in 2018 as SVP and CTO. He has over 20 years of experience in financial services technology.  **[0001026214-24-000025_fmcc-20231231.htm:324]** **[0001026214-23-000037_fmcc-20221231.htm:322]** **[0001026214-22-000031_fmcc-20211231.htm:348]**                                                                                                                                                      |
| Kevin Palmer       | Senior Vice President - Multifamily                   | May 2022          | Kevin Palmer has been SVP since May 2022, overseeing efforts to provide stability and affordability in the rental housing market. He joined Freddie Mac in 2001 and has held various roles in capital markets and risk management.  **[0001026214-23-000037_fmcc-20221231.htm:323]** **[0001026214-24-000025_fmcc-20231231.htm:324]**                                                                                              |
| Diana Reid         | Chief Executive Officer                               | September 10, 2024 | Diana Reid was appointed CEO on September 10, 2024, with over 40 years of experience in financial services, particularly in real estate lending and risk management. She previously led real estate business divisions at PNC Financial Services Group.  **[0001026214-24-000087_ex991pressreleaseseptember.htm:0]** **[0001026214-24-000087_fmcc-20240910.htm:1]**                                                                           |
| James Whitlinger   | Interim Chief Financial Officer                       | June 29, 2024     | James Whitlinger was appointed Interim CFO on June 29, 2024. He has been with Freddie Mac for 10 years and has over 30 years of experience in real estate finance, including roles at Univest Bank and Trust Co. and GMAC ResCap, Inc..  **[0001026214-24-000062_fmcc-20240628.htm:1]**                                                                                              |

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1. The multifamily delinquency rate has increased to 39 basis points, up 15 basis points from the end of September 2023, primarily due to delinquent floating rate loans  **[FMCC_3404686_3]** ; what strategies are you implementing to address this rise in delinquencies, and how do you foresee it impacting your multifamily credit risk profile?

2. The single-family serious delinquency rate rose to 54 basis points this quarter, an increase of 4 basis points from the previous quarter  **[FMCC_3404686_1]** ; what are the underlying causes of this increase, and what measures are you taking to prevent further deterioration in loan performance?

3. Your net income benefited significantly from credit reserve releases, including a $99 million benefit for single-family credit losses and a $92 million benefit for multifamily credit losses  **[FMCC_3404686_1]** **[FMCC_3404686_2]** ; how confident are you that these reserve releases are prudent, especially given potential future economic uncertainties?

4. You assume home prices will remain flat over the next 12 months and increase by 0.8% over the subsequent 12 months  **[FMCC_3404686_1]** ; considering recent market volatility, how might deviations from this forecast affect your credit exposure and overall financial performance?

5. With the upcoming implementation of minimum lease standards in multifamily properties beginning in February 2025  **[FMCC_3404686_1]** , what impact do you anticipate this will have on your lending practices and borrower relationships, particularly concerning compliance and operational costs?

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- **Strong Financial Performance:** Freddie Mac reported net income of **$2.8 billion**, an increase of **$771 million or 39% year-over-year**.  **[FMCC_3381854_2]**  The Single-Family segment net income was **$1.9 billion**, up **16% year-over-year**  **[FMCC_3381854_2]** , and the Multifamily segment net income was **$821 million**, up **$503 million** from the prior year quarter.  **[FMCC_3381854_3]**
- **Growth in New Business Activity and Portfolios:** Total new business activity was **$62 billion** this quarter, slightly up from **$59 billion** in 1Q 2023.  **[FMCC_3381854_3]**  Multifamily new business activity was **$9 billion** for the first quarter, up **50% from a year ago**.  **[FMCC_3381854_4]**  The Single-Family mortgage portfolio grew **2%** to **$3 trillion**  **[FMCC_3381854_2]** , and the Multifamily mortgage portfolio increased **4% year-over-year** to **$443 billion**.  **[FMCC_3381854_4]**
- **Focus on Affordable Housing and Strong Credit Quality:** Freddie Mac supported affordable housing by providing financing where **90%** of rental homes were affordable to low and moderate-income families  **[FMCC_3381854_1]** , and **52%** of new Single-Family home purchase loans went to first-time homebuyers—a new high.  **[FMCC_3381854_3]** **[FMCC_3381854_1]**  The Single-Family portfolio has strong credit characteristics, with a weighted average current loan-to-value ratio of **52%** and a weighted average current credit score of **754**.  **[FMCC_3381854_2]**  The Single-Family serious delinquency rate declined to **52 basis points**, down **10 basis points** from 1Q 2023.  **[FMCC_3381854_2]**

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- **Noninterest income decreased by 18% year-over-year to $2.7 billion in 2023**, as the prior year period included gains that did not recur.  **[FMCC_3373456_1]**
- **Noninterest expense grew by 14% year-over-year to $8.9 billion in 2023**, primarily driven by a $646 million increase in net credit enhancement expense and a $313 million expense accrual related to an adverse litigation judgment.  **[FMCC_3373456_1]**
- **Multifamily provision for credit losses increased by $231 million to $300 million in 2023**, due to heightened uncertainty and deterioration in overall loan performance.  **[FMCC_3373456_3]**

8219d1cf0e5338a29b59169a858c3969015870b841a87524ba558701227aa31e

- **Decrease in net income:** Freddie Mac's net income decreased by **$179 million** or **6%** year-over-year in the second quarter of 2024, primarily due to a credit reserve build compared to a credit reserve release in the prior year quarter.  **[FMCC_3395287_1]**
- **Decline in Multifamily segment performance:** The Multifamily segment reported net income of **$481 million**, down **$82 million** or **15%** from the prior year quarter, driven by lower noninterest income, which declined **20%** year-over-year. Additionally, the Multifamily delinquency rate increased to **38 basis points**, up **17 basis points** from 21 basis points at the end of June 2023.  **[FMCC_3395287_2]**
- **Increase in credit loss provisions:** The provision for credit losses was an expense of **$394 million** for the quarter, a significant change from the credit reserve release in the prior year, indicating potential credit quality concerns. Specifically, the Single-Family provision for credit losses was an expense of **$315 million**, primarily due to a modest credit reserve build and the impact of higher mortgage rates.  **[FMCC_3395287_2]** **[FMCC_3395287_1]**

8717ca6a8e0dd312d2f1f54ccce594f1e148b1237f1ae8da688b8a85b0807a00

- **Strong Financial Performance**: Freddie Mac reported a net income of **$3.1 billion** for the third quarter of 2024, an increase of **$420 million or 16% year-over-year**  **[FMCC_3404686_3]** ,.  **[FMCC_3404686_1]**  The company's net worth increased to **$56 billion**, representing a **26% increase year-over-year**  **[FMCC_3404686_3]** ,.  **[FMCC_3404686_1]**
- **Growth in Mortgage Portfolio**: The total mortgage portfolio grew **2% year-over-year**, ending the quarter at **$3.5 trillion**.  **[FMCC_3404686_1]**  The single-family mortgage portfolio increased **2% year-over-year** to **$3.1 trillion**, while the multifamily mortgage portfolio increased **5% year-over-year** to **$452 billion**  **[FMCC_3404686_1]** ,.  **[FMCC_3404686_2]**
- **Commitment to Affordable Housing and Social Impact**: Freddie Mac helped **415,000 families** purchase, refinance, or rent a home in the quarter.  **[FMCC_3404686_1]**  **51%** of the primary home purchases financed supported **first-time homebuyers**, and **51%** of eligible purchase and refinance loans were affordable to low and moderate-income families.  **[FMCC_3404686_1]**  On the multifamily side, **94%** of the eligible rental units financed were similarly affordable.  **[FMCC_3404686_1]**

b772525973971c8daa7965d8c23c7bf01e9e0f476209c9cdab1aed266346f6d3

- Freddie Mac's net worth increased to **$53.2 billion**, representing a **27% increase year-over-year**.  **[FMCC_3395287_2]**
- The Single-Family mortgage portfolio grew to **$3.1 trillion**, up **2% year-over-year**, with strong credit characteristics such as a weighted average current loan-to-value ratio of **52%** and a weighted average current credit score of **755**.  **[FMCC_3395287_2]**
- The company has improved its house price forecast, now expecting an increase of **0.6% over the next 12 months** and **0.5% over the subsequent 12 months**, up from previous forecasts.  **[FMCC_3395287_1]**

ca6e8cde7ec15afdf6af880f82b0205f61442edc7478d07f3086ae04711d856b

- **Increase in Delinquency Rates:** The single-family serious delinquency rate increased by 4 basis points this quarter to 54 basis points, up from 50 basis points last quarter. Similarly, the multifamily delinquency rate rose to 39 basis points, which is 1 basis point higher than last quarter and 15 basis points higher than the end of September 2023.  **[FMCC_3404686_3]** **[FMCC_3404686_2]**
- **Decreased Benefit for Credit Losses:** The benefit for single-family credit losses decreased significantly to $99 million this quarter, compared to a benefit of $304 million in the prior year quarter, primarily due to smaller credit reserve releases.  **[FMCC_3404686_1]** **[FMCC_3404686_2]**
- **Flat Home Price Forecast:** The company forecasts that home prices will remain flat over the next 12 months, which may indicate limited appreciation in their mortgage portfolio's collateral value.  **[FMCC_3404686_2]**

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- **Multifamily delinquency rate increased significantly** to 34 basis points, up 21 basis points from 13 basis points at the end of March 2023, primarily driven by delinquencies in floating rate loans and small business loans portfolio.  **[FMCC_3381854_4]**
- **House price forecast has been revised downward**, expecting only a 0.2% increase over the next 12 months and 0.6% over the subsequent 12 months, down from previous forecasts of 2.8% and 2% growth, respectively.  **[FMCC_3381854_2]**
- **Provision for credit losses remains an expense**, with a total provision of $181 million this quarter due to modest credit reserve builds in both business segments, indicating potential concerns about credit quality.  **[FMCC_3381854_2]**

7b9ad7df03c14af3624f397cb3ae93e6513efc239af55a1f54372a7c13704f16

- **Freddie Mac's net income increased by 13% year-over-year to $10.5 billion in 2023**, demonstrating strong financial performance.  **[FMCC_3373456_1]**
- **Net worth increased to $47.7 billion at the end of the year, representing a 29% increase from 2022**, indicating a stronger financial position.  **[FMCC_3373456_3]**
- **Single-family serious delinquency rate declined to a historically low 55 basis points**, reflecting improved credit quality and effective risk management.  **[FMCC_3373456_3]**

cfc94cecaddb6ada3007e8c1fc9006fdc2878b8f1f94db8a1452f16682552c76

Federal Home Loan Mortgage Corp (FMCC)

Financials