Professional Documents
Culture Documents
November 2019
A Better Freddie Mac
…and a better housing finance system
For families
...innovating to improve the liquidity, stability, and
affordability of mortgage markets
For customers
...competing to earn their business
For taxpayers
...reducing their exposure to mortgage risks, innovating to
access private capital
© Freddie Mac 2
Table of Contents
Section Page
IV Multifamily Business 25
For more information about Freddie Mac and its business, please see the company’s filings with the Securities and Exchange Commission,
including the company’s Annual Report on Form 10-K for the year ended December 31, 2018, Quarterly Reports on Form 10-Q for the quarters
ended March 31, 2019, June 30, 2019 and September 30, 2019, and Current Reports on Form 8-K, which are available on the Investor Relations
page of the company’s website at www.FreddieMac.com/investors and the Securities and Exchange Commission’s website at www.sec.gov.
© Freddie Mac 3
Freddie Mac Overview
© Freddie Mac 4
Freddie Mac’s Mission
U.S. Residential
Mortgage Market
Mortgage Mortgage
Securitization Freddie Mac Investments
Mortgage-Backed Debt
Securities Global Capital Securities
Markets
“A primary purpose is to provide stability in the secondary market for home mortgages including mortgages securing housing for
low and moderate income families. This can be accomplished through both portfolio purchasing and selling activities, as well as
through the securitization of home mortgages.”1
© Freddie Mac 5
Conservatorship
© Freddie Mac 6
Amended Purchase Agreement
▪ On August 17, 2012, the Conservator, acting on our behalf, and Treasury entered into a third
amendment to the Purchase Agreement.
» Replacement of the fixed dividend rate with a net worth sweep dividend beginning in the
first quarter of 2013
© Freddie Mac 7
2017 Letter Agreement
▪ On December 21, 2017, the Conservator, acting on our behalf, entered into a Letter
Agreement with Treasury.
» The senior preferred stock dividend for the dividend period from October 1, 2017
through and including December 31, 2017 was reduced to $2.25 billion.
» The applicable Capital Reserve Amount from January 1, 2018 and thereafter will be
$3.0 billion, rather than zero as previously provided. If for any reason we were not to
pay our dividend requirement on the senior preferred stock in full in any future period,
the applicable Capital Reserve Amount would thereafter be zero.
» The liquidation preference of the senior preferred stock increased by $3.0 billion, to
$75.3 billion, on December 31, 2017.
© Freddie Mac 8
2019 Letter Agreement
▪ On September 27, 2019, the Conservator, acting on our behalf, entered into a Letter
Agreement with Treasury.
» For each Dividend Period from July 1, 2019 and thereafter, the Applicable Capital
Reserve Amount used in determining the dividend payable to Treasury will be $20.0
billion, rather than $3.0 billion as previously provided. If for any reason we were not to
pay our dividend requirement on the senior preferred stock in full in any future period,
the unpaid amount would be added to the liquidation preference and our applicable
Capital Reserve Amount would thereafter be zero.
» The liquidation preference of the senior preferred stock will be increased, at the end of
each fiscal quarter, beginning on September 30, 2019, by an amount equal to the
increase in the Net Worth Amount, if any, during the immediately prior fiscal quarter,
until the liquidation preference has increased by $17.0 billion.
© Freddie Mac 9
FHFA Strategic Plan – Fiscal Years 2018 - 2022
▪ On January 29, 2018, FHFA released the FHFA Strategic Plan: Fiscal Years 2018-2022,
which reflects the Agency’s priorities as regulator and conservator of Freddie Mac and
Fannie Mae (the Enterprises).
▪ FHFA’s Strategic Plan sets forth three goals for the Agency:
▪ FHFA, acting as conservator and regulator, must follow the mandates assigned to it by
statute and oversee the missions assigned to the Enterprises by their charters until such
time as Congress revises those mandates and missions.
© Freddie Mac 10
2019 Conservatorship Scorecard
Maintain, in a safe and sound manner, credit availability and foreclosure prevention activities for new and refinanced mortgages to
foster liquid, efficient, competitive, and resilient national housing finance markets. (40%)
▪ Continue efforts to support access to single-family mortgage credit for creditworthy borrowers, including underserved segments of the market.
» Continue to identify opportunities to support access to credit in a safe and sound manner that take into consideration changing borrower needs and enabling
technology to document income, assets, and employment.
» Continue to support access to credit for borrowers with limited English proficiency and make progress on multi-year language access plans.
» Continue efforts supporting appraisal process modernization, including revised appraisal forms and data requirements.
▪ Continue to responsibly support the Neighborhood Stabilization Initiative.
▪ Continue efforts related to mortgage servicing that promote mortgage market stability by furthering opportunities to improve the borrower experience, expand liquidity, and
increase efficiency.
▪ Prepare for transition from LIBOR. Assess impact and perform industry outreach to inform policy and implementation plans.
▪ Explore opportunities to further affordability through multifamily energy and water efficiency programs.
▪ Manage the dollar volume of new multifamily business to remain at or below $35 billion (excluding loans in affordable and underserved market segments).
Reduce taxpayer risk through increasing the role of private capital in the mortgage market. (30%)
▪ Single-Family Credit Risk Transfers:
» Transfer a meaningful portion of credit risk on at least 90 percent of the unpaid principal balance (UPB) of newly acquired single-family mortgages in loan categories
targeted for credit risk transfer, subject to FHFA target adjustments as may be necessary to reflect market conditions and economic considerations.
» For 2019, targeted single-family loan categories include: non-HARP, fixed-rate mortgages with terms greater than 20 years and loan-to-value ratios above 60
percent.
» Report the actual amount of underlying mortgage credit risk transferred.
▪ Multifamily Credit Risk Transfers:
» Transfer a meaningful portion of the credit risk on newly acquired mortgages, subject to FHFA target adjustments as may be necessary to reflect market conditions
and economic considerations.
» Report the actual amount of underlying mortgage credit risk transferred.
▪ Retained Portfolio: Execute FHFA-approved retained portfolio plans that maintain, even under adverse conditions, the annual Preferred Stock Purchase Agreement
(PSPA) requirements and the $250 billion PSPA cap. Any sales should be commercially reasonable transactions that consider impacts to the market, borrowers, and
neighborhood stability.
▪ Servicer Eligibility Requirements 2.0: Evaluate the current liquidity requirements for non-depository Seller/Servicer Enterprise counterparties to determine whether
changes are appropriate.
Build a new single-family infrastructure for use by the Enterprises and adaptable for use by other participants in the secondary
market in the future. (30%)
▪ Common Securitization Platform (CSP) and Single Security Initiative:
» Continue working with FHFA, each other, and CSS to implement the Single Security Initiative on the CSP for both Enterprises.
» Incorporate certain design principles in developing the CSP such as allowing for the integration of additional market participants in the future.
» Continue to work with each other and CSS to obtain and use input from industry stakeholders.
» Work proactively with the industry to help market participants prepare for the implementation of the Single Security Initiative.
▪ Continue to provide active support for Mortgage Data Standardization Initiatives.
Source: FHFA
© Freddie Mac 11
New FHFA Strategic Plan and
2020 Conservatorship Scorecard
▪ On October 28, 2019, FHFA released a new Strategic Plan for the Conservatorships of
Freddie Mac and Fannie Mae.
▪ The three objectives of this new Strategic Plan are to ensure that the Enterprises:
» Focus on their core mission responsibilities to foster competitive, liquid, efficient, and
resilient (CLEAR) national housing finance markets that support sustainable
homeownership and affordable rental housing;
» Operate in a safe and sound manner appropriate for entities in conservatorship; and
» Prepare for their eventual exits from the conservatorships. FHFA, acting as
conservator and regulator, must follow the mandates assigned to it by statute and
oversee the missions assigned to the Enterprises by their charters until such time as
Congress revises those mandates and missions.
▪ FHFA also released a new annual Conservatorship Scorecard for Freddie Mac, Fannie
Mae, and Common Securitization Solutions. This new 2020 Conservatorship Scorecard
aligns tactical priorities and execution at the Enterprises to the 2019 Strategic Plan and
serves as a tool in holding the Enterprises accountable for its effective implementation.
© Freddie Mac 12
Market Presence
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD
2019*
Freddie Mac Fannie Mae Ginnie Mae Private Label
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019*
Enterprises &
95% 97% 96% 98% 99% 98% 95% 95% 97% 95% 92% 94%
Ginnie Mae
Private Label 5% 3% 4% 2% 1% 2% 5% 5% 3% 5% 8% 6%
$119.7
$101.5
2
$71.3 $71.6
$10.9
$0.3 $4.1 $3.1
• Pursuant to the September 2019 Letter Agreement, the company will not have a dividend requirement
on the senior preferred stock until its Net Worth Amount exceeds $20.0 billion. The company's Net
Worth Amount was $6.7 billion at September 30, 2019.
Home
5
Retention
Actions
5
Foreclosure
5
Alternatives
© Freddie Mac 16
Housing Market Trends
Annual single-family mortgage originations6 Total value of U.S. real estate held by households7
$ Trillions $ Trillions
$26.1
2.1T 2.1T 2.0T
1.9T 1.9T Value of Housing Stock
1.8T
1.8T 1.7T
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Source: Freddie Mac October 2019 Economic and Housing Research Outlook. Incudes only 1st lien loans. Source: Federal Reserve Board’s Financial Accounts of the United States, Table B. 101. Data as of March 31, 2019.
Total cash-out dollars as a percentage of aggregate Total home equity cashed out
refinanced originations UPB $ Billions
28.1%
$52.2
16.7%
$38.2
8.8%
8.9% $16.4 $18.4
3.8% 4.0% $8.6 $6.4
Source: Freddie Mac Economic & Housing Research Quarterly Refinance Statistics November 7, 2019. Source: Freddie Mac Economic & Housing Research Quarterly Refinance Statistics November 7, 2019.
6.5 1.2
6.0
5.5
5.0
4.5 0.7
4.0
3.5
0.2
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019F
2020F
Source: U.S. Census Bureau, Freddie Mac October 2019 Economic and Housing Research Outlook. Source: U.S. Census Bureau, Freddie Mac October 2019 Economic and Housing Research Outlook.
Note: Dashed line indicates forecasted data. Note: Dashed line indicates forecasted data.
69 For-Rent Inventory
1.5
68 (Millions)
For-Sale Inventory
67 Homeownership rates are low despite 1.0
(Millions)
66 low unemployment levels due to:
• Many more millennial renters 0.5
65 • High student debt loan burden
• Limited access to credit
64 • Affordability
0.0
64.1%
63 • Prices increasing quicker than wages
-0.5 -0.9
62
-1.0
2000 2001 2003 2004 2006 2007 2009 2010 2012 2013 2015 2016 2018
Source: U.S. Census Bureau
Note: Data as of July 25, 2019. Source: Freddie Mac calculations using U.S. Census Bureau data. Data as of June 30, 2019.
© Freddie Mac 18
Key Economic Indicators
National home prices increased by an average of 3.4% Quarterly ending interest rates
over the past year
(2006 Peak)
© Freddie Mac 19
Credit Guarantee Business
© Freddie Mac 20
Total Mortgage Portfolio
$ Billions
$2,295
$2,251
$2,207 $2,165 $2,182
$2,103 $2,075 $2,098
$2,011
$1,956 $1,915 $1,942
$1,910
$2,074
$2,190
$116
$222
$105
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD
2019*
Outstanding Freddie Mac Mortgage-Related Securities and Other Mortgage-Related Guarantees
Mortgage-Related Investments Portfolio (PCs, REMICs, and Other Securitization Products)
Mortgage-Related Investments Portfolio (Non-Freddie Mac Mortgage-Related Securities & Mortgage Loans)
44%
43%
42% 42%
41% 41%
38% 38%
37%
35% 35%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD
2019*
North Central
© Freddie Mac 25
Multifamily Market Rental Vacancy Rates
Percent
6
Long-Term
5.4% Average
5
4.7%
4.2%
4
0
3Q 2015 3Q 2016 3Q 2017 3Q 2018 3Q 2019
$350 $339
$300 $285
$269
$250
$250
$200
$150
$100
$50
$-
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019(F)
Sources: Freddie Mac Form 10-Ks, 10-Qs, FHFA Report to Congress, and Freddie Mac's internal reports, Fannie Mae 10-Ks, 10-Qs, FHFA Report to Congress, and Fannie Mae's Multifamily
Monthly New Business Volumes, American Council of Life Insurers (ACLI), Wells Fargo Securities LLC, Intex Solutions Inc., Mortgage Bankers Association and Freddie Mac internal research.
© Freddie Mac 27
Multifamily 10-Year Fixed Rate
K-Deal A2 Spreads
80 bps
70 bps
70 bps
60 bps
60 bps
50 bps 53 bps
40 bps
30 bps
20 bps
10 bps
0 bps
© Freddie Mac 28
Basic K-Deal Transaction Structure
Freddie Mac securitizes loans via the K-Deal program through the following steps:
▪ The loans are sold to a third-party depositor who places the ▪ The resulting Freddie Mac guaranteed structured pass-
loans into a third-party trust. through certificates (“K Certificates”) are publicly offered via
▪ Private label securities backed by the loans are issued by placement agents.
the third-party trust. ▪ The unguaranteed mezzanine and subordinate bonds are
▪ Freddie Mac purchases and guarantees certain bonds issued by the third-party trust and are privately offered to
(“Guaranteed Bonds” ) issued by the third-party trust and
11 investors via placement agents.
securitizes these bonds via a Freddie Mac trust.
Unguaranteed Subordinate
Subordinate Bond
Bonds Investors
© Freddie Mac 29
Multifamily
Financial Highlights and Key Metrics
Multifamily comprehensive income (loss) Multifamily acquisitions of units by area median
$ Millions income (% of eligible units acquired)
2Q19
Cap = $36.5
Cap = $35.0
Cap = $30.0
© Freddie Mac 32
Capital Markets
Financial Highlights and Key Metrics
Capital Markets comprehensive income Capital Markets investments portfolio
$ Billions $ Billions
-2% YoY
decrease
$262
Capital Markets cash window securitization Capital Markets mortgage investments portfolio
$ Billions $ Billions
-5% YoY
decrease
© Freddie Mac 33
Debt Funding Program
© Freddie Mac 34
Freddie Mac’s Total Debt Outstanding13,14
16
15
17
Outstanding Debt by Type and Weighted Average Unsecured Debt Issuance by Type21
Maturity in Years18 $ Billions
$ Billions
2.9
2.7
2.6 2.6
2.5 2.5 2.5
$511
0% $410 $310 $398 $347 $231 $164 $240
$454 2% 2% 2% 2% 1% 0%
7% 4% 5% 6% 5%
3% 8%
1% $418 4% 6%
9% 12% 26%
3% 12%
48% $357 17% 21%
40% $317 17%
5% 32%
38% 33% 23%
9% $280
$256
39% 9% 37%
4% 5% 10%
31% 19%
8%
21% 24% 29%
11% 10% 20% 72% 70%
26% 65%
8% 55% 55%
50%
28% 36% 37% 37%
42%
27% 30%
25%
17% 14% 15%
11%
Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Sep-19 2013 2014 2015 2016 2017 2018 Sep-19
16
Discount Notes Callable Debt
16 Discount Notes Callable Debt
Floating Rate Notes15 Non-Callable Debt
Floating Rate Notes 15 Non-Callable Debt
19 20
Other Unsecured Debt
Other Weighted Average Maturity
© Freddie Mac 36
Debt Maturity Profile22
$145.6 BN
© Freddie Mac 37
Credit Ratings
▪ Freddie Mac’s credit ratings and outlooks are primarily based on the support the company
receives from Treasury, and therefore, are affected by changes in the credit ratings and
outlooks of the U.S. government.
S&P Moody’s
Preferred stock23 D Ca
© Freddie Mac 39
Composition of Bond Market Debt Outstanding
Treasury 24
Municipal $15.9
$3.8 36%
9%
25
Agency Debt
29 $1.9
Corporate Debt
4%
$9.5
22%
26
28
MBS
Money Market $9.9
$1.1 27 23%
2% Asset-Backed
$1.6
4%
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
YTD*
Total single-family credit guarantee portfolio with Cumulative single-family transferred credit risk
transferred credit risk based on outstanding balance at period end
$ Billions $ Billions
$1,968
$1,533
$1,010 $1,020
$850
$322
$260
$173
$104
$21
U.S. Banks NY Fed Other Foreign Mutual REITs Life Insurers GSEs Credit State/Local
Funds Unions Govts
Source: Freddie Mac, Fannie Mae, Federal Reserve, Inside MBS & ABS, National Credit Union Administration, and the U.S. Treasury Department.
© Freddie Mac 43
As of June 30, 2019.
Estimated Demand for Agency
Mortgage-Related Securities31
$ Billions
200
150
100
50
(50)
(100)
Jul-10 Jun-11 May-12 Apr-13 Mar-14 Feb-15 Jan-16 Dec-16 Nov-17 Oct-18 Sep-19
Sources: Federal Reserve Board, Freddie Mac and Fannie Mae Monthly Volume Summaries, Treasury International Capital data, Federal Home Loan Banks,
© Freddie Mac 44
U.S. Treasury Department, Federal Reserve Bank of New York.
Estimated Asia Net Flows into Agencies32
$ Billions
40
30
20
10
(10)
(20)
(30)
Jul-10 Jun-11 May-12 Apr-13 Mar-14 Feb-15 Jan-16 Dec-16 Nov-17 Oct-18 Sep-19
15-year 20-year
4% 6% Other
7%
ARM
2%
Balloon
0%
30-year
81%
Note: Percentages may not add to 100% due to rounding. Data as September 30, 2019.
© Freddie Mac 46
Multi-Lender Giant Issuance
as Percentage of Total Fixed-Rate Issuance
$ Millions Percent
60,000 100
90
50,000
80
70
40,000
60
30,000 50
40
20,000
30
20
10,000
10
0 0
Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19
© Freddie Mac 47
30-year Freddie/Fannie Prepayment Alignment
(September 2019)33
30 Yr. Cohort Speed Difference (3M CPR) 30 Yr. Fastest Quartile Speed Difference (3M CPR)
12 12
11 11
10 10
9 9
8 8
7 7
6 6
3M CPR Difference (FR-FN)
2013
2015
2016
2017
2013
2014
2015
2016
2017
2018
2013
2014
2015
2016
2017
2018
2014
2017
2018
2018
3 3.5 4 4.5 5 3 3.5 4 4.5 5
FHFA’s Uniform Mortgage-Backed Security Final Rule requires the Agencies to monitor cohort prepayment speed differences.
15 Yr. Cohort Speed Difference (3M CPR) 15 Yr. Fastest Quartile Speed Difference (3M CPR)
12 12
11 11
10 10
9 9
8 8
7 7
6 6
5 5
4 4
3 3
2 2
1 1
0 0
-1 -1
-2 -2
-3 -3
-4 -4
-5 -5
-6 -6
-7 -7
-8 -8
-9 -9
-10 -10
-11 -11
-12 -12
2013
2013
2015
2016
2017
2013
2014
2015
2016
2017
2018
2017
2018
2018
2013
2013
2015
2016
2017
2013
2014
2015
2016
2017
2018
2017
2018
2018
2 2.5 3 3.5 4 2 2.5 3 3.5 4
FHFA’s Uniform Mortgage-Backed Security Final Rule requires the Agencies to monitor cohort prepayment speed differences.
Bloomberg Outstanding
Freddie Mac Collateral Description
Ticker Balance*
Pass-through securities that are backed by a Giant PC and subject to a call option. In the event of a
Callable PCs (CPC)
call, the callable class is paid off at par and the call class receives the underlying Giant PC.
Pass-through securities that are backed by a REMIC class and subject to a call option. In the event of
a call, the callable class is paid off at par and the call class receives the underlying REMIC class.
Callable REMIC Classes (CRC)
Callable REMIC Classes may also be backed by a callable class of CPCs and will be retired upon
redemption of the collateral.
GMC is a feature added to a REMIC class to provide a stated legal maturity date, at par, guaranteed by
Guaranteed Maturity Class (GMC) Freddie Mac. GMCs have a final payment date earlier than the latest date by which these Classes might
be retired solely from payments on their underlying assets.
IO/PO Strips
Combinations of Floating Rate, Inverse Floating Rate, Floating Rate IO, Inverse Floating Rate IO
• Floater/Inverse Floater certificates that permit holders to exchange classes for combinations of floating rate and inverse floater
Combinations rate classes with various margins and caps.
Strip securities that are exchangeable for other classes of the same series having different class
• Gold MACS coupons or coupon formulas.
35
Interest-only securities backed by Excess Servicing Spread held by mortgage servicers. Loan
Excess IO Strips (XSIO) characteristics for the loans backing each issued XSIO security are pooled to mirror PC pooling
practices.
Modifiable And Combinable REMICs Holders of a MACR Class can exchange all or part of the class for a predetermined proportionate
(MACR) interest in other specified REMIC or MACR classes, and vice versa.
© Freddie Mac 51
Deal Structure Options, Continued
Permits the holder of both the REMIC Residual class and 100% of all outstanding REMIC classes
REMIC Unwinds
covered by the Residual class to exchange their REMIC interests for all collateral backing the REMIC.
Permits the holder of any portion of an issued REMIC class to use that class as collateral to back a
ReREMIC
subsequent REMIC.
Retail classes are designed primarily for individual investors and are typically issued and receive
Retail Classes
principal in $1,000 increments.
Permits the holder of a pro-rata portion of all outstanding REMIC classes within a REMIC group to
Reverse REMIC
recombine their interests for a pro-rata portion of the underlying REMIC collateral.
Simplifies the REMIC Unwind feature for the holder of the Residual class and 100% of all outstanding
Single Group Residual REMIC classes issued a single REMIC Group. Holder exchanges its interests for all collateral backing
the specific REMIC Group.
Collateral is stripped into separate Interest-only and Principal-only securities with transactions
Syndicated IO/PO Strips
underwritten and distributed by a syndicate of dealers.
© Freddie Mac 52
Endnotes
1 House of Representatives report on FIRREA, No. 54, 101st Congress, 1st Session, Part 3 at 2 (1989).
2 Excludes the initial $1 billion liquidation preference of senior preferred stock issued to Treasury in September 2008 as consideration for Treasury’s funding commitment, the $3.0 billion increase
in the aggregate liquidation preference of the senior preferred stock pursuant to the December 2017 Letter Agreement, and the $1.8 billion increase in the aggregate liquidation preference of the
senior preferred stock pursuant to the September 2019 Letter Agreement. The company received no cash proceeds in connection with the initial $1 billion liquidation preference of senior
preferred stock or the $3.0 billion and $1.8 billion increases on December 31, 2017 and September 30, 2019, respectively.
3 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.
4 Consists of both home retention actions and foreclosure alternatives.
5 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.
6 Estimates and forecasts by the Economic and Housing Research Department do not necessarily represent the views of Freddie Mac or its management, should not be construed as indicating
Freddie Mac's business prospects or expected results, and are subject to change without notice.
7 Value of U.S. housing stock includes homes with and without underlying mortgages. U.S. home equity is the difference between the value of the U.S. housing stock and the amount of U.S.
single-family mortgage debt outstanding.
8 Negative values reflect undersupply. The under/oversupply of vacant housing was estimated based on the average vacancy rate from 1Q 1994 to 4Q 2003.
9 Based on the unpaid principal balance (UPB) of the single-family credit guarantee portfolio, which includes unsecuritized single-family mortgage loans held by the company on its consolidated
balance sheets and those underlying Freddie Mac mortgage-related securities or covered by the company's other mortgage-related guarantees.
10 Represents the estimated average rate of guarantee fees for new acquisitions during the period assuming amortization of upfront fees using the estimated life of the related loans rather than the
original contractual maturity date of the related loans. Includes the effect of fee adjustments that are based on the price performance of Freddie Mac’s PCs relative to comparable Fannie Mae
securities. Net of legislated 10 basis point guarantee fee remitted to Treasury as part of the Temporary Payroll Tax Cut Continuation Act of 2011.
11 Multifamily's primary risk transfer securitization products are K Certificates and SB Certificates. In these transactions, the company guarantees the senior securities, but does not issue or
guarantee the mezzanine or subordinated securities. The interest-rate risk and a large majority of expected and stress credit risk is sold to third-party investors through the mezzanine and
subordinated securities, thereby reducing the company's risk exposure.
12 Guaranteed Bonds include senior amortizing bonds as well as interest-only bonds derived from senior and subordinate P&I bonds.
13 Data excludes securities sold under agreements to repurchase and other secured borrowings. All figures represent par amounts in USD billions based on settlement date. These figures could
differ significantly from proceeds, amortized principal amount and book value figures, particularly for zero-coupon securities.
14 Short-term debt includes any issuance of 12 months or less at issuance date. All others categories reflect greater than 12 month term at issuance.
15 Reflects non-callable floating rate notes.
16 Includes callable debt with expired call options.
17 Under the Purchase Agreement with Treasury, the company’s aggregate indebtedness (which primarily includes the par value of other short- and long-term debt, including securities sold under
agreements to repurchase and other secured borrowings) was subject to a limit of $346 billion in 2018 and declined to a limit of $300 billion on January 1, 2019.
18 Data includes securities sold under agreements to repurchase and other secured borrowings. All figures represent par amounts in USD billions based on settlement date. These figures could
differ significantly from proceeds, amortized principal amount, and book value figures, particularly for zero-coupon securities.
19 Other includes SF STACR, MF SCR Notes, securities sold under agreements to repurchase and other secured borrowings.
20 Weighted Average Maturity in years excludes securities sold under agreements to repurchase and other secured borrowings.
21 Issuance excludes overnights and securities sold under agreements to repurchase and other secured borrowings. All figures represent par amounts in USD billions based on settlement date.
These figures could differ significantly from proceeds, amortized principal amount, and book value figures, particularly for zero-coupon securities.
22 Outstanding balance using par amounts based on settlement date and maturity date.
23 Does not include senior preferred stock issued to Treasury.
© Freddie Mac 53
Endnotes, Continued
© Freddie Mac 54
Safe Harbor Statements
© Freddie Mac 55