FMCC 8-K
Federal Home Loan Mortgage Corp (FMCC)
8-K
2021-10-29
For: 2021-10-29
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Added on
April 05, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 29, 2021
(Exact name of registrant as specified in its charter)
Freddie Mac
| Federally chartered corporation | ||||||||||||||
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||||||||
Registrant’s telephone number, including area code: (703 ) 903-2000
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
| None | N/A | N/A | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On October 29, 2021, Freddie Mac (formally known as the Federal Home Loan Mortgage Corporation) announced its results of operations for the quarter ended September 30, 2021. A copy of the related press release for the quarter ended September 30, 2021 is being filed as Exhibit 99.1 to this report and is incorporated herein by reference. In addition, a copy of the Third Quarter 2021 Financial Results Supplement is being furnished as Exhibit 99.2 to this report and is incorporated herein by reference.
Exhibit 99.1 submitted herewith shall be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934.
Exhibit 99.2 submitted herewith shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of Section 18, nor shall it be deemed to be incorporated by reference into any disclosure document relating to Freddie Mac, except to the extent, if any, expressly set forth by specific reference in such document.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
The exhibits listed in the Exhibit Index below are being filed or furnished as part of this Current Report on Form 8-K:
| Exhibit Number | Description of Exhibit | |||||||
| 99.1 | ||||||||
| 99.2 | ||||||||
| 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document | |||||||
__________________________________________________________________________________________________________
Freddie Mac Form 8-K
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| FEDERAL HOME LOAN MORTGAGE CORPORATION | ||||||||
| By: | /s/ | Christian M. Lown | ||||||
| Christian M. Lown | ||||||||
| Executive Vice President - Chief Financial Officer | ||||||||
Date: October 29, 2021
__________________________________________________________________________________________________________
Freddie Mac Form 8-K
| Exhibit 99.1 | ||||||||
Freddie Mac Reports Net Income of $2.9 Billion and
Comprehensive Income of $2.9 Billion for Third Quarter 2021
Providing Stability to the Housing Market While Serving Freddie Mac's Affordable Housing Mission
•Made it possible for 415,000 families to purchase a home, including 46% first-time homebuyers, and for 612,000 homeowners to refinance into more favorable terms.
•Financed 161,000 rental units, with 94% of eligible units being affordable to low- to moderate-income families, and issued $832 million of Multifamily Social and Sustainability Bonds to support low- and very-low income families.
Third Quarter 2021 Financial Results
Market Liquidity Provided - $318 Billion | Homes and Rental Units Financed - 1.2 Million | Net Worth - $25.3 Billion | Total Mortgage Portfolio - $3.1 Trillion | |||||||||||||||||
| Consolidated | •Net income of $2.9 billion, an increase of 19% year-over-year, driven by higher net revenues and a credit reserve release •Net revenues of $5.2 billion, an increase of 4% year-over-year, driven by mortgage portfolio growth and higher average portfolio guarantee fee rates •Benefit for credit losses of $0.2 billion, driven by a credit reserve release due to realized house price appreciation and improving economic conditions •New business activity of $299 billion, down 11% year-over-year, as refinance activity moderated from historically high levels in the prior year. Year-to-date activity of $949 billion, up 34% year-over-year •Mortgage portfolio of $2,682 billion, up 23% year-over-year, driven by strong new business activity •Serious delinquency rate of 1.46%, down from 1.86% at June 30, 2021 and 3.04% at September 30, 2020, driven by the decline of loans in forbearance •Completed approximately 73,000 loan workouts •50% of mortgage portfolio covered by credit enhancements •New business activity of $18 billion, unchanged year-over-year. Year-to-date activity of $45 billion, down 6% year-over-year •Mortgage portfolio of $404 billion, up 10% year-over-year, driven by ongoing loan purchase and securitization activity •Delinquency rate, which does not include loans in forbearance, of 0.12%, down from 0.15% at June 30, 2021 and 0.13% at September 30, 2020 •94% of mortgage portfolio covered by credit enhancements | “We are pleased that Freddie Mac's third quarter results showed 19 percent year-over-year growth in net income and comprehensive income, which enabled us to add $2.9 billion to our net worth. These strong results allow the company to serve its mission of providing liquidity, stability and affordability to the housing market – and to do so expansively by making home possible for owners and renters across the country and in all economic environments.” Michael J. DeVito Chief Executive Officer | ||||||||||||
Net Revenues $5.2 Billion Net Income $2.9 Billion Comprehensive Income $2.9 Billion | ||||||||||||||
Single-Family | ||||||||||||||
Net Revenues $4.0 Billion Net Income $2.0 Billion Comprehensive Income $2.0 Billion | ||||||||||||||
Multifamily | ||||||||||||||
Net Revenues $1.3 Billion Net Income $0.9 Billion Comprehensive Income $0.9 Billion | ||||||||||||||
Totals may not add due to rounding.
Freddie Mac Third Quarter 2021 Financial Results
October 29, 2021
Page 2
McLean, VA — Freddie Mac (OTCQB: FMCC) today reported net income of $2.9 billion for the third quarter of 2021, an increase of 19% year-over-year, primarily driven by higher net revenues and a credit reserve release in Single-Family. The company also reported comprehensive income of $2.9 billion for the third quarter of 2021, an increase of 19% year-over-year.
Net revenues increased 4% year-over-year to $5.2 billion, primarily driven by higher net interest income, partially offset by a decline in net investment gains. Net interest income increased 28% year-over-year to $4.4 billion, primarily driven by continued mortgage portfolio growth and higher average portfolio guarantee fee rates in Single-Family. The decline in net investment gains was primarily due to lower gains from mortgage loan purchase and securitization activities in Multifamily as a result of lower favorable impacts from changes in market spreads.
Credit-related expense decreased 68% year-over-year to $0.2 billion, driven by a reserve release due to realized house price appreciation and improving economic conditions, partially offset by higher credit enhancement expense. Credit-related expense in the third quarter of 2020 was primarily driven by the negative economic effects of the COVID-19 pandemic.
Summary of Condensed Consolidated Statements of Comprehensive Income (Loss)
| (Dollars in millions) | 3Q 2021 | 2Q 2021 | Change | 3Q 2020 | Change | ||||||||||||||||||||||||||||||
| Net interest income | $4,418 | $4,767 | $(349) | $3,457 | $961 | ||||||||||||||||||||||||||||||
| Guarantee income | 246 | 356 | (110) | 315 | (69) | ||||||||||||||||||||||||||||||
| Investment gains (losses), net | 383 | 636 | (253) | 1,122 | (739) | ||||||||||||||||||||||||||||||
| Other income (loss) | 200 | 107 | 93 | 172 | 28 | ||||||||||||||||||||||||||||||
| Net revenues | 5,247 | 5,866 | (619) | 5,066 | 181 | ||||||||||||||||||||||||||||||
| Benefit (provision) for credit losses | 243 | 740 | (497) | (327) | 570 | ||||||||||||||||||||||||||||||
| Credit enhancement expense | (386) | (369) | (17) | (267) | (119) | ||||||||||||||||||||||||||||||
| Benefit for (decrease in) credit enhancement recoveries | (60) | (193) | 133 | 20 | (80) | ||||||||||||||||||||||||||||||
| Real estate owned (REO) operations income (expense) | 9 | (7) | 16 | (40) | 49 | ||||||||||||||||||||||||||||||
| Credit-related income (expense) | (194) | 171 | (365) | (614) | 420 | ||||||||||||||||||||||||||||||
| Administrative expense | (627) | (651) | 24 | (641) | 14 | ||||||||||||||||||||||||||||||
| Temporary Payroll Tax Cut Continuation Act of 2011 expense | (602) | (570) | (32) | (467) | (135) | ||||||||||||||||||||||||||||||
| Other expense | (178) | (179) | 1 | (237) | 59 | ||||||||||||||||||||||||||||||
| Operating expense | (1,407) | (1,400) | (7) | (1,345) | (62) | ||||||||||||||||||||||||||||||
| Income (loss) before income tax (expense) benefit | 3,646 | 4,637 | (991) | 3,107 | 539 | ||||||||||||||||||||||||||||||
| Income tax (expense) benefit | (727) | (958) | 231 | (644) | (83) | ||||||||||||||||||||||||||||||
| Net income (loss) | 2,919 | 3,679 | (760) | 2,463 | 456 | ||||||||||||||||||||||||||||||
| Total other comprehensive income (loss), net of taxes and reclassification adjustments | (10) | (68) | 58 | (14) | 4 | ||||||||||||||||||||||||||||||
| Comprehensive income (loss) | $2,909 | $3,611 | $(702) | $2,449 | $460 | ||||||||||||||||||||||||||||||
| Conservatorship metrics (in billions) | |||||||||||||||||||||||||||||||||||
| Net worth | $25.3 | $22.4 | $2.9 | $13.9 | $11.4 | ||||||||||||||||||||||||||||||
| Senior preferred stock liquidation preference | 95.0 | 91.4 | 3.6 | 84.1 | 10.9 | ||||||||||||||||||||||||||||||
| Remaining Treasury funding commitment | 140.2 | 140.2 | — | 140.2 | — | ||||||||||||||||||||||||||||||
| Cumulative dividend payments to Treasury | 119.7 | 119.7 | — | 119.7 | — | ||||||||||||||||||||||||||||||
| Cumulative draws from Treasury | 71.6 | 71.6 | — | 71.6 | — | ||||||||||||||||||||||||||||||
Totals may not add due to rounding.
Freddie Mac Third Quarter 2021 Financial Results
October 29, 2021
Page 3
| Single-Family Segment | ||
| Financial Results | ||
Net Revenues
(In millions)
Net Income
(In millions)
Comprehensive Income
(In millions)
| (Dollars in millions) | 3Q 2021 | 2Q 2021 | Change | 3Q 2020 | Change | |||||||||||||||||||||||||||
| Net interest income | $4,080 | $4,460 | $(380) | $3,168 | $912 | |||||||||||||||||||||||||||
| Non-interest income | (119) | 255 | (374) | 251 | (370) | |||||||||||||||||||||||||||
| Net revenues | 3,961 | 4,715 | (754) | 3,419 | 542 | |||||||||||||||||||||||||||
| Credit-related income (expense) | (177) | 128 | (305) | (594) | 417 | |||||||||||||||||||||||||||
| Operating expense | (1,251) | (1,245) | (6) | (1,208) | (43) | |||||||||||||||||||||||||||
| Income (loss) before income tax (expense) benefit | 2,533 | 3,598 | (1,065) | 1,617 | 916 | |||||||||||||||||||||||||||
| Income tax (expense) benefit | (505) | (743) | 238 | (335) | (170) | |||||||||||||||||||||||||||
| Net income (loss) | 2,028 | 2,855 | (827) | 1,282 | 746 | |||||||||||||||||||||||||||
| Total other comprehensive income (loss), net of taxes and reclassification adjustments | 18 | (74) | 92 | (10) | 28 | |||||||||||||||||||||||||||
| Comprehensive income (loss) | $2,046 | $2,781 | $(735) | $1,272 | $774 | |||||||||||||||||||||||||||
Key Drivers
Net income and comprehensive income increased year-over-year, mainly driven by:
•Higher net interest income primarily due to continued mortgage portfolio growth and higher average portfolio guarantee fee rates.
•Lower credit-related expense primarily driven by a higher benefit for credit losses as a result of a credit reserve release due to realized house price appreciation and improving economic conditions, partially offset by higher credit enhancement expense. Credit-related expense in the third quarter of 2020 was primarily driven by the negative economic effects of the COVID-19 pandemic.
Freddie Mac Third Quarter 2021 Financial Results
October 29, 2021
Page 4
| Single-Family Segment | ||
| Business Results | ||
New Business Activity
(UPB in billions)
Mortgage Portfolio
(UPB in billions)
Serious Delinquency Rate
| 3Q 2021 | 2Q 2021 | Change | 3Q 2020 | Change | ||||||||||||||||||||||||||||
| New Business Statistics: | ||||||||||||||||||||||||||||||||
| Average guarantee fee rate charged (bps) | 48 | 49 | (1) | 46 | 2 | |||||||||||||||||||||||||||
| Weighted average original loan-to-value (LTV) (%) | 72 | 71 | 1 | 71 | 1 | |||||||||||||||||||||||||||
| Weighted average original credit score | 750 | 754 | (4) | 761 | (11) | |||||||||||||||||||||||||||
First-time homebuyers (%)(1) | 46 | 47 | (1) | 46 | — | |||||||||||||||||||||||||||
| Single-Family homes funded (in thousands) | 1,027 | 1,023 | 4 | 1,153 | (126) | |||||||||||||||||||||||||||
| Purchase borrowers (in thousands) | 415 | 315 | 100 | 340 | 75 | |||||||||||||||||||||||||||
| Refinance borrowers (in thousands) | 612 | 708 | (96) | 813 | (201) | |||||||||||||||||||||||||||
| UPB covered by new CRT issuance (in billions) | $167 | $174 | $(7) | $168 | $(1) | |||||||||||||||||||||||||||
| Portfolio Statistics: | ||||||||||||||||||||||||||||||||
| Average guarantee fee rate charged (bps) | 46 | 46 | — | 43 | 3 | |||||||||||||||||||||||||||
| Weighted average current LTV (%) | 55 | 56 | (1) | 59 | (4) | |||||||||||||||||||||||||||
| Weighted average current credit score | 756 | 756 | — | 753 | 3 | |||||||||||||||||||||||||||
| Loan count (in millions) | 12.8 | 12.5 | 0.3 | 11.6 | 1.2 | |||||||||||||||||||||||||||
| Credit-Related Statistics: | ||||||||||||||||||||||||||||||||
| Loan workout activity (in thousands) | 73 | 88 | (15) | 193 | (120) | |||||||||||||||||||||||||||
| Loans in forbearance, based on loan count (%) | 1.15 | 1.67 | (0.52) | 2.95 | (1.80) | |||||||||||||||||||||||||||
| Current (%) | 0.15 | 0.26 | (0.11) | N/A | N/A | |||||||||||||||||||||||||||
| Past due (%) | 1.00 | 1.41 | (0.41) | 2.95 | (1.95) | |||||||||||||||||||||||||||
| Credit enhancement coverage (%) | 50 | 49 | 1 | 51 | (1) | |||||||||||||||||||||||||||
(1) First-time homebuyers as a percentage of purchase borrowers with loans secured by primary residences.
Business Highlights
•The company provided funding for approximately 1.0 million single-family homes, more than 612,000 of which were refinance loans. First-time homebuyers represented 46% of new single-family home purchase loans.
•Single-Family loan workout activity decreased to 73,000, from 193,000 in the third quarter of 2020, primarily driven by the decrease in completed forbearance plans and payment deferrals related to the COVID-19 pandemic.
•1.15% of loans in the Single-Family mortgage portfolio, based on loan count, were in forbearance as of September 30, 2021, down from 2.95% in the third quarter of 2020.
•Credit enhancement coverage of the Single-Family mortgage portfolio decreased to 50%, from 51% in the third quarter of 2020, primarily due to the high volume of new business activity which has not been included in credit risk transfer (CRT) transactions, but which may be included in future periods.
Freddie Mac Third Quarter 2021 Financial Results
October 29, 2021
Page 5
| Multifamily Segment | ||
| Financial Results | ||
Net Revenues
(In millions)
Net Income
(In millions)
Comprehensive Income
(In millions)
| (Dollars in millions) | 3Q 2021 | 2Q 2021 | Change | 3Q 2020 | Change | |||||||||||||||||||||||||||
| Net interest income | $338 | $307 | $31 | $289 | $49 | |||||||||||||||||||||||||||
| Guarantee income | 266 | 346 | (80) | 275 | (9) | |||||||||||||||||||||||||||
| Investment gains (losses), net | 630 | 499 | 131 | 1,040 | (410) | |||||||||||||||||||||||||||
| Other income (loss) | 52 | (1) | 53 | 43 | 9 | |||||||||||||||||||||||||||
| Net revenues | 1,286 | 1,151 | 135 | 1,647 | (361) | |||||||||||||||||||||||||||
| Credit-related income (expense) | (17) | 43 | (60) | (20) | 3 | |||||||||||||||||||||||||||
| Operating expense | (156) | (155) | (1) | (137) | (19) | |||||||||||||||||||||||||||
| Income (loss) before income tax (expense) benefit | 1,113 | 1,039 | 74 | 1,490 | (377) | |||||||||||||||||||||||||||
| Income tax (expense) benefit | (222) | (215) | (7) | (309) | 87 | |||||||||||||||||||||||||||
| Net income (loss) | 891 | 824 | 67 | 1,181 | (290) | |||||||||||||||||||||||||||
| Total other comprehensive income (loss), net of taxes and reclassification adjustments | (28) | 6 | (34) | (4) | (24) | |||||||||||||||||||||||||||
| Comprehensive income (loss) | $863 | $830 | $33 | $1,177 | $(314) | |||||||||||||||||||||||||||
Key Drivers
Net income and comprehensive income decreased year-over-year, mainly driven by:
•Higher net interest income primarily due to the growth in PC securitizations.
•Lower net investment gains primarily due to less K Certificate spread tightening and lower initial pricing margin rates on new loan commitments, partially offset by higher gains on floating-rate loan securitizations. While the initial pricing margin rates for new loan commitments decreased year-over-year, these rates remained strong relative to long-term average rates.
Freddie Mac Third Quarter 2021 Financial Results
October 29, 2021
Page 6
| Multifamily Segment | ||
| Business Results | ||
New Business Activity
(UPB in billions)
Mortgage Portfolio
(UPB in billions)
Delinquency Rate
| 3Q 2021 | 2Q 2021 | Change | 3Q 2020 | Change | ||||||||||||||||||||||||||||
| New Business Statistics: | ||||||||||||||||||||||||||||||||
| Weighted average original LTV (%) | 67 | 68 | (1) | 66 | 1 | |||||||||||||||||||||||||||
| Weighted average original debt service coverage ratio | 1.35 | 1.38 | (0.03) | 1.42 | (0.07) | |||||||||||||||||||||||||||
| Number of rental units financed (in thousands) | 161 | 137 | 24 | 185 | (24) | |||||||||||||||||||||||||||
| Affordable ≤ 80% of AMI (% of eligible units acquired) | 68 | 77 | (9) | 70 | (2) | |||||||||||||||||||||||||||
| Affordable ≤ 120% of AMI (% of eligible units acquired) | 94 | 97 | (3) | 96 | (2) | |||||||||||||||||||||||||||
| Guarantee Activity Statistics: | ||||||||||||||||||||||||||||||||
| Average guarantee fee rate charged (bps) | 56 | 54 | 2 | 51 | 5 | |||||||||||||||||||||||||||
| Guaranteed UPB (in billions) | $15 | $18 | $(3) | $21 | $(6) | |||||||||||||||||||||||||||
| Portfolio Statistics: | ||||||||||||||||||||||||||||||||
| Average guarantee fee rate charged (bps) | 42 | 41 | 1 | 38 | 4 | |||||||||||||||||||||||||||
| Loan count (in thousands) | 30 | 30 | — | 28 | 2 | |||||||||||||||||||||||||||
| Unit count (in thousands) | 4,624 | 4,627 | (3) | 4,450 | 174 | |||||||||||||||||||||||||||
| Credit-Related Statistics: | ||||||||||||||||||||||||||||||||
| Loans in forbearance, based on UPB (%) | 0.46 | 1.28 | (0.82) | 2.20 | (1.74) | |||||||||||||||||||||||||||
| Loans in forbearance period (%) | 0.06 | 0.02 | 0.04 | 0.22 | (0.16) | |||||||||||||||||||||||||||
| Loans in repayment period (%) | 0.40 | 1.26 | (0.86) | 1.98 | (1.58) | |||||||||||||||||||||||||||
| Credit enhancement coverage (%) | 94 | 94 | — | 91 | 3 | |||||||||||||||||||||||||||
Business Highlights
•The company provided financing for more than 161,000 multifamily rental units. 68% of the eligible multifamily rental units financed were affordable to families earning at or below 80% of area median income (AMI).
•As of September 30, 2021, 0.46% of the loans in the Multifamily mortgage portfolio, based on UPB, were in a forbearance program and 0.40% were in the repayment period. Approximately 67% of the total loans in a Multifamily forbearance program were included in securitizations with credit enhancement provided by subordination.
•Credit enhancement coverage of the Multifamily mortgage portfolio increased to 94%, from 91% in the third quarter of 2020.
Freddie Mac Third Quarter 2021 Financial Results
October 29, 2021
Page 7
About Freddie Mac’s Conservatorship
Since September 2008, Freddie Mac has been operating under conservatorship with FHFA as Conservator. The support provided by Treasury pursuant to the Purchase Agreement enables the company to maintain access to the debt markets and have adequate liquidity to conduct its normal business operations. The amount of funding available to Freddie Mac under the Purchase Agreement was $140.2 billion at September 30, 2021.
Pursuant to the January 2021 Letter Agreement, the company will not be required to pay a dividend to Treasury until it has built sufficient capital to meet the capital requirements and buffers set forth in the Enterprise Regulatory Capital Framework. As a result, the company was not required to pay a dividend to Treasury on the senior preferred stock in September 2021. As the company builds capital during this period, the quarterly increases in its Net Worth Amount have been, or will be, added to the aggregate liquidation preference of the senior preferred stock. The liquidation preference of the senior preferred stock increased to $95.0 billion on September 30, 2021 based on the $3.6 billion increase in the Net Worth Amount during the second quarter of 2021, and will increase to $98.0 billion on December 31, 2021 based on the $2.9 billion increase in the Net Worth Amount during the third quarter of 2021.
Additional Information
For more information, including information related to Freddie Mac’s financial results, conservatorship, and related matters, see the company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 and the company’s Third Quarter 2021 Financial Results Supplement. These documents are available on the Investor Relations page of the company’s website at www.FreddieMac.com.
Additional information about Freddie Mac and its business is also set forth in the company’s other filings with the SEC, which are available on the Investor Relations page of the company’s website at www.FreddieMac.com and the SEC’s website at www.sec.gov. Freddie Mac encourages all investors and interested members of the public to review these materials for a more complete understanding of the company’s financial results and related disclosures.
Webcast Announcement
Management will host a conference call at 9 a.m. Eastern Time on October 29, 2021 to share the company’s results with the media. The conference call will be concurrently webcast. To access the audio webcast, use the following link: https://edge.media-server.com/mmc/p/3y8zipj6. The replay will be available on the company’s website at www.FreddieMac.com for approximately 30 days. All materials related to the call will be available on the Investor Relations page of the company’s website at www.FreddieMac.com.
| Media Contact: Frederick Solomon (703) 903-3861 | Investor Contact: Laurie Garthune (571) 382-4732 | ||||
* * * *
This press release contains forward-looking statements, which may include statements pertaining to the conservatorship, the company’s current expectations and objectives for its Single-Family and Multifamily segments, its efforts to assist the housing market, liquidity and capital management, economic and market conditions and trends, the effects of the COVID-19 pandemic and actions taken in response thereto on its business, financial condition, and liquidity, its market share, the effect of legislative and regulatory developments and new accounting guidance, credit quality of loans the company owns or guarantees, the costs and benefits of the company’s CRT transactions, and results of operations and financial condition. 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, uncertainty about the duration, severity, and effects of the COVID-19 pandemic and actions taken in response thereto, actions by the U.S. government (including FHFA, Treasury, and Congress) and state and local governments, 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, 2020, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2021, June 30, 2021, and September 30, 2021, and Current Reports on Form 8-K, which are available on the Investor Relations page of the company’s website at www.FreddieMac.com and the SEC’s website at www.sec.gov. The company undertakes no obligation to update
Freddie Mac Third Quarter 2021 Financial Results
October 29, 2021
Page 8
forward-looking statements it makes to reflect events or circumstances occurring after the date of this press release.
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since its creation by Congress in 1970, the company has made housing more accessible and affordable for homebuyers and renters in communities nationwide. The company is building a better housing finance system for homebuyers, renters, lenders, and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.
Freddie Mac Third Quarter 2021 Financial Results
October 29, 2021
Page 9
FREDDIE MAC
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
(In millions, except share-related amounts) | 3Q 2021 | 2Q 2021 | 3Q 2020 | |||||||||||||||||
| Net interest income | ||||||||||||||||||||
| Interest income | $15,791 | $15,230 | $14,849 | |||||||||||||||||
| Interest expense | (11,373) | (10,463) | (11,392) | |||||||||||||||||
| Net interest income | 4,418 | 4,767 | 3,457 | |||||||||||||||||
| Non-interest income (loss) | ||||||||||||||||||||
| Guarantee income | 246 | 356 | 315 | |||||||||||||||||
| Investment gains (losses), net | 383 | 636 | 1,122 | |||||||||||||||||
| Other income (loss) | 200 | 107 | 172 | |||||||||||||||||
| Non-interest income (loss) | 829 | 1,099 | 1,609 | |||||||||||||||||
| Net revenues | 5,247 | 5,866 | 5,066 | |||||||||||||||||
| Benefit (provision) for credit losses | 243 | 740 | (327) | |||||||||||||||||
| Non-interest expense | ||||||||||||||||||||
| Salaries and employee benefits | (352) | (346) | (334) | |||||||||||||||||
| Professional services | (76) | (97) | (105) | |||||||||||||||||
| Other administrative expense | (199) | (208) | (202) | |||||||||||||||||
| Total administrative expense | (627) | (651) | (641) | |||||||||||||||||
| Credit enhancement expense | (386) | (369) | (267) | |||||||||||||||||
| Benefit for (decrease in) credit enhancement recoveries | (60) | (193) | 20 | |||||||||||||||||
| REO operations income (expense) | 9 | (7) | (40) | |||||||||||||||||
| Temporary Payroll Tax Cut Continuation Act of 2011 expense | (602) | (570) | (467) | |||||||||||||||||
| Other expense | (178) | (179) | (237) | |||||||||||||||||
| Non-interest expense | (1,844) | (1,969) | (1,632) | |||||||||||||||||
| Income (loss) before income tax (expense) benefit | 3,646 | 4,637 | 3,107 | |||||||||||||||||
| Income tax (expense) benefit | (727) | (958) | (644) | |||||||||||||||||
| Net income (loss) | 2,919 | 3,679 | 2,463 | |||||||||||||||||
| Other comprehensive income (loss), net of taxes and reclassification adjustments | ||||||||||||||||||||
| Changes in unrealized gains (losses) related to available-for-sale securities | (14) | (73) | (16) | |||||||||||||||||
| Changes in unrealized gains (losses) related to cash flow hedge relationships | 7 | 8 | 6 | |||||||||||||||||
| Changes in defined benefit plans | (3) | (3) | (4) | |||||||||||||||||
| Total other comprehensive income (loss), net of taxes and reclassification adjustments | (10) | (68) | (14) | |||||||||||||||||
| Comprehensive income (loss) | $2,909 | $3,611 | $2,449 | |||||||||||||||||
| Net income (loss) | $2,919 | $3,679 | $2,463 | |||||||||||||||||
| Future increase in senior preferred stock liquidation preference | (2,909) | (3,611) | (2,449) | |||||||||||||||||
| Net income (loss) attributable to common stockholders | $10 | $68 | $14 | |||||||||||||||||
| Net income (loss) per common share — basic and diluted | $0.00 | $0.02 | $0.00 | |||||||||||||||||
| Weighted average common shares outstanding (in millions) — basic and diluted | 3,234 | 3,234 | 3,234 | |||||||||||||||||
Freddie Mac Third Quarter 2021 Financial Results
October 29, 2021
Page 10
FREDDIE MAC
Condensed Consolidated Balance Sheets (Unaudited)
| September 30, | December 31, | |||||||||||||
(In millions, except share-related amounts) | 2021 | 2020 | ||||||||||||
| Assets | ||||||||||||||
Cash and cash equivalents (includes $875 and $17,379 of restricted cash and cash equivalents) | $9,478 | $23,889 | ||||||||||||
| Securities purchased under agreements to resell | 85,315 | 105,003 | ||||||||||||
| Investment securities, at fair value | 56,930 | 59,825 | ||||||||||||
Mortgage loans held-for-sale (includes $8,436 and $14,199 at fair value) | 17,517 | 33,652 | ||||||||||||
Mortgage loans held-for-investment (net of allowance for credit losses of $4,531 and $5,732) | 2,715,597 | 2,350,236 | ||||||||||||
Accrued interest receivable (net of allowance of $157 and $140) | 7,490 | 7,754 | ||||||||||||
| Derivative assets, net | 953 | 1,205 | ||||||||||||
| Deferred tax assets, net | 6,099 | 6,557 | ||||||||||||
Other assets (includes $6,078 and $5,775 at fair value) | 38,605 | 39,294 | ||||||||||||
| Total assets | $2,937,984 | $2,627,415 | ||||||||||||
| Liabilities and equity | ||||||||||||||
| Liabilities | ||||||||||||||
| Accrued interest payable | $6,049 | $6,210 | ||||||||||||
Debt (includes $1,984 and $2,592 at fair value) | 2,895,426 | 2,592,546 | ||||||||||||
| Derivative liabilities, net | 389 | 954 | ||||||||||||
| Other liabilities | 10,809 | 11,292 | ||||||||||||
| Total liabilities | 2,912,673 | 2,611,002 | ||||||||||||
| Commitments and contingencies | ||||||||||||||
| Equity | ||||||||||||||
Senior preferred stock (liquidation preference of $95,050 and $86,539) | 72,648 | 72,648 | ||||||||||||
| Preferred stock, at redemption value | 14,109 | 14,109 | ||||||||||||
Common stock, $0.00 par value, 4,000,000,000 shares authorized, 725,863,886 shares issued and 650,059,553 shares and 650,059,292 shares outstanding | — | — | ||||||||||||
| Additional paid-in capital | — | — | ||||||||||||
| Retained earnings (accumulated deficit) | (57,737) | (67,102) | ||||||||||||
| AOCI, net of taxes, related to: | ||||||||||||||
| Available-for-sale securities | 328 | 810 | ||||||||||||
| Cash flow hedge relationships | (181) | (206) | ||||||||||||
| Defined benefit plans | 29 | 39 | ||||||||||||
| Total AOCI, net of taxes | 176 | 643 | ||||||||||||
Treasury stock, at cost, 75,804,333 shares and 75,804,594 shares | (3,885) | (3,885) | ||||||||||||
| Total equity | 25,311 | 16,413 | ||||||||||||
| Total liabilities and equity | $2,937,984 | $2,627,415 | ||||||||||||
The table below presents the carrying value and classification of the assets and liabilities of consolidated variable interest entities (VIEs) on the company's condensed consolidated balance sheets. | ||||||||||||||
| September 30, | December 31, | |||||||||||||
| (In millions) | 2021 | 2020 | ||||||||||||
| Condensed Consolidated Balance Sheet Line Item | ||||||||||||||
| Assets: | ||||||||||||||
| Mortgage loans held-for-investment | $2,671,954 | $2,273,347 | ||||||||||||
| All other assets | 65,454 | 83,982 | ||||||||||||
| Total assets of consolidated VIEs | $2,737,408 | $2,357,329 | ||||||||||||
| Liabilities: | ||||||||||||||
| Debt | $2,701,530 | $2,308,176 | ||||||||||||
| All other liabilities | 5,731 | 5,610 | ||||||||||||
| Total liabilities of consolidated VIEs | $2,707,261 | $2,313,786 | ||||||||||||
© Freddie Mac Third Quarter 2021 Financial Results Supplement October 29, 2021 Exhibit 99.2
© Freddie Mac 2 Financial Highlights $5.1 $5.0 $5.3 $5.9 $5.2 $2.5 $2.9 $2.8 $3.7 $2.9 $2.4 $2.5 $2.4 $3.6 $2.9 Net revenues Net income Comprehensive income 3Q20 4Q20 1Q21 2Q21 3Q21 Net revenues, net income, and comprehensive income $ Billions ▪ Net income and comprehensive income of $2.9 billion for the third quarter of 2021, an increase of 19% each year-over-year, driven by higher net revenues and a credit reserve release ▪ Net revenues increased 4% year-over-year to $5.2 billion, primarily driven by mortgage portfolio growth and higher average portfolio guarantee fee rates
© Freddie Mac 3 $345 $345 $339 $284 $255 $198 $182 $174 $113 $114 $147 $163 $165 $171 $141 Mortgage-related investments portfolio Other investments portfolio 09/30/20 12/31/20 03/31/21 06/30/21 09/30/21 $2,545 $2,714 $2,852 $2,962 $3,086 $2,179 $2,326 $2,458 $2,564 $2,682 $366 $388 $394 $398 $404 Single-Family mortgage portfolio Multifamily mortgage portfolio 09/30/20 12/31/20 03/31/21 06/30/21 09/30/21 Total Portfolio Balances Total debt outstanding5* $ Billions Portfolio balance highlightsMortgage portfolio1 $ Billions Investments portfolio $ Billions 21% YoY increase ▪ Total mortgage portfolio: • Single-Family - grew $503 billion, or 23%, year-over- year • Multifamily - grew $38 billion, or 10%, year-over-year ▪ Total investments portfolio: • Mortgage-related investments portfolio - decreased $84 billion, or 42%, year-over-year • Other investments portfolio - decreased $6.0 billion, or 4%, year-over-year 26% YoY decrease 51% 52% 52% 56% 59% 41% 43% 43% 39% 36% 8% 4% 5% 5% 5% 3.4 3.6 3.5 3.5 3.6 Non-callable debt Callable debt Discount Notes and other Weighted average maturity in years 09/30/20 12/31/20 03/31/21 06/30/21 09/30/21 $287 $287 Totals may not add due to rounding. *See Endnotes 2, 3, and 5 regarding limitations on our mortgage-related investments portfolio and total debt outstanding. $263 $231 2,3* $198 4
© Freddie Mac 4 Multifamily7Single-Family6 Percentage of Loans in Forbearance 0.06% 0.40% 0.46% Forbearance Period Repayment Period Total 0.15% 0.08% 0.06% 0.17% 0.69% 1.15% Current One Month Two Months Three Months to Six Months Greater Than Six Months Total Percentage of loans in the single-family mortgage portfolio that were in forbearance by payment status as of September 30, 2021 (based on loan count). Percentage of loans in the multifamily mortgage portfolio currently under a forbearance program as of September 30, 2021 (based on UPB). Past Due
© Freddie Mac 5 $25.3 $95.0 $140.2 Net worth Senior preferred stock liquidation preference Remaining Treasury funding commitment As of September 30, 2021 Conservatorship Matters Pursuant to the January 2021 Letter Agreement, Freddie Mac will not be required to pay a dividend to Treasury until it has built sufficient capital to meet the capital requirements and buffers set forth in the Enterprise Regulatory Capital Framework (ERCF). Draws and dividend payments $ Billions $71.6 $119.7 Cumulative draws from Treasury Cumulative dividend payments to Treasury As of September 30, 2021 Net worth, liquidation preference8, and Treasury funding commitment $ Billions
© Freddie Mac 6 1,342,000 213,000 518,000 615,000 550,000 7.8% 6.7% 6.0% 5.9% 4.8% Average monthly net new jobs (non-farm) National unemployment rate (as of the last month in each quarter) 3Q20 4Q20 1Q21 2Q21 3Q21 National home prices increased by an average of 18.6% over the past year Quarterly ending interest rates 2.90% 2.67% 3.17% 3.02% 3.01% 0.71% 0.93% 1.82% 1.44% 1.57% 30-year mortgage rate, based on Primary Mortgage Market Survey (PMMS) 10-year LIBOR 09/30/20 12/31/20 03/31/21 06/30/21 09/30/21 163 249 United States (Seasonally Adjusted) 2006 2009 2012 2015 2018 2021 Freddie Mac House Price Index (December 2000 = 100) National home prices since 2006 Unemployment rate and job creation Key Economic Indicators
© Freddie Mac 7 1.08% 1.01% 0.73% 0.73% 0.76% 0.50% 0.38% 0.27% 0.21% 0.20% 3.04% 2.64% 2.34% 1.86% 1.46% One month past due Two months past due Seriously delinquent 3Q20 4Q20 1Q21 2Q21 3Q21 $2,179 $2,326 $2,458 $2,564 $2,682 3Q20 4Q20 1Q21 2Q21 3Q21 $337 $383 $362 $288 $299 $101 $109 $89 $98 $132 $236 $274 $273 $190 $167 46 47 50 49 48 Home purchase UPB Refinance UPB 3Q20 4Q20 1Q21 2Q21 3Q21 Single-Family Financial Highlights and Key Metrics $1,282 $1,747 $1,738 $2,855 $2,028 $1,272 $1,373 $1,410 $2,781 $2,046 Net income Comprehensive income 3Q20 4Q20 1Q21 2Q21 3Q21 Net income and comprehensive income $ Millions Totals may not add due to rounding. Guarantee fees charged on new acquisitions (bps)9 23% YoY increase Mortgage portfolio $ Billions Delinquency rates6 New business activity $ Billions
© Freddie Mac 8 71% 70% 69% 71% 72% 3Q20 4Q20 1Q21 2Q21 3Q21 30% 28% 25% 34% 44% 16% 18% 20% 23% 26% 54% 54% 55% 43% 30% Home purchase Cash-out refinance Other refinance 3Q20 4Q20 1Q21 2Q21 3Q21 761 761 759 754 750 3Q20 4Q20 1Q21 2Q21 3Q21 10% 10% 10% 11% 12% 3Q20 4Q20 1Q21 2Q21 3Q21 New business activity with debt-to-income ratio > 45% Weighted average original loan-to-value ratio (OLTV) Weighted average original credit score Single-Family Loan Purchase Credit Characteristics Loan purpose
© Freddie Mac 9 UPB covered by new CRT issuance $ Billions $168 $167 $245 $174 $167 3Q20 4Q20 1Q21 2Q21 3Q21 Mortgage portfolio with credit enhancement UPB in $ Billions $1,108 $1,152 $1,230 $1,255 $1,345 51% 50% 50% 49% 50% UPB Percentage 09/30/20 12/31/20 03/31/21 06/30/21 09/30/21 Single-Family Credit Risk Transfer
© Freddie Mac 10 Acquisitions of units by area median income (AMI) (% of eligible units acquired) 39% 33% 43% 43% 36% 31% 38% 34% 34% 32% 26% 25% 20% 20% 26% 4% 4% 3% 3% 6% ≤60% >60% to ≤80% >80% to ≤120% >120% 3Q20 4Q20 1Q21 2Q21 3Q21 66% 70% 69% 68% 67% 3Q20 4Q20 1Q21 2Q21 3Q21 1.42 1.38 1.38 1.38 1.35 3Q20 4Q20 1Q21 2Q21 3Q21 Weighted average OLTV ratio for new business activity Multifamily Financial Highlights and Key Metrics Weighted average original debt service coverage ratio (ODSCR) for new business activity Net income and comprehensive income $ Millions $1,181 $1,166 $1,029 $824 $891 $1,177 $1,149 $968 $830 $863 Net income Comprehensive income 3Q20 4Q20 1Q21 2Q21 3Q21 (89 %)
© Freddie Mac 11 Guarantee activities $ Billions $21 $26 $21 $18 $15 3Q20 4Q20 1Q21 2Q21 3Q21 $18 $35 $14 $13 $18 3Q20 4Q20 1Q21 2Q21 3Q21 Multifamily Key Metrics, continued New business activity $ Billions New business activity includes LIHTC new business activity.
© Freddie Mac 12 0.13% 0.12% 0.28% 1.76% 1.30% 0.08% Freddie Mac (60+ day) FDIC insured institutions (90+ day) MF CMBS market (60+ day) ACLI investment bulletin (60+ day) 3Q20 4Q20 1Q21 2Q21 3Q21 $366 $388 $394 $398 $404 3Q20 4Q20 1Q21 2Q21 3Q21 Multifamily market and Freddie Mac delinquency rates7 Mortgage portfolio unit count In Thousands Mortgage portfolio loan count In Thousands Mortgage portfolio $ Billions 28 29 30 30 30 3Q20 4Q20 1Q21 2Q21 3Q21 Multifamily Mortgage Portfolio Metrics 10% YOY increase 4,450 4,598 4,613 4,627 4,624 3Q20 4Q20 1Q21 2Q21 3Q21
© Freddie Mac 13 94 52 38 27 21 94 74 50 55 45 6 7 6 6 7 Forbearance agreements Payment deferrals Other 3Q20 4Q20 1Q21 2Q21 3Q21 Number of families Freddie Mac helped to own or rent a home10 In Thousands Housing Market Support 1,338 1,598 1,365 1,160 1,188 813 936 940 708 612 340 356 291 315 415 185 306 134 137 161 Single-Family refinance borrowers Single-Family home purchase borrowers Multifamily rental units 3Q20 4Q20 1Q21 2Q21 3Q21 Other includes repayment plans, loan modifications, and foreclosure alternatives. Number of Single-Family loan workouts11 In Thousands 12 12 Totals may not add due to rounding. 12
© Freddie Mac 14 Endnotes 1 Based on unpaid principal balances (UPB) of securitized mortgage loans, unsecuritized mortgage loans, and other, which primarily consists of mortgage-related guarantees. 2 The company’s Purchase Agreement with Treasury limits the amount of mortgage assets the company can own and indebtedness it can incur. See the company’s Annual Report on Form 10-K for the year ended December 31, 2020 for more information. 3 Based on unpaid principal balances (UPB) of unsecuritized mortgage loans, agency mortgage-related securities, and non-agency mortgage-related securities. Excludes mortgage- related securities traded, but not yet settled. The amount of mortgage assets that the company may own in its mortgage-related investments portfolio is currently capped by FHFA at $225 billion and under the Purchase Agreement at $250 billion (the Purchase Agreement cap will be lowered to $225 billion at the end of 2022). The calculation of mortgage assets subject to these caps includes the UPB of these assets as well as 10% of the notional value of the company's interest-only securities. The balance of the mortgage-related investments portfolio for purposes of these caps was $126.7 billion as of September 30, 2021 (which includes $12.9 billion representing 10% of the notional amount of the interest-only securities the company held at that date). With respect to the composition of Freddie Mac's mortgage-related investments portfolio, FHFA has instructed the company to reduce the amount of agency MBS to no more than $20 billion, based on UPB, by June 30, 2022. 4 The other investments portfolio is primarily used for short-term liquidity management, cash and other investments held by consolidated trusts, and other investments, which include investments in debt securities used to pledge as collateral, LIHTC partnerships, and secured lending activities. 5 Represents the company’s aggregate indebtedness for purposes of the Purchase Agreement debt cap and primarily includes the par value of Freddie Mac short-term and long-term debt used to fund its business activities. The company's debt cap under the Purchase Agreement is currently $300 billion and will decrease to $270 billion on January 1, 2023 as a result of the decrease in the mortgage assets limit under the Purchase Agreement to $225 billion on December 31, 2022 pursuant to the January 2021 Letter Agreement. 6 Information related to single-family loans in forbearance is based on information reported by servicers. For the purpose of reporting delinquency rates, the company reports single-family loans in forbearance as delinquent during the forbearance period to the extent that payments are past due based on the loan's original contractual terms, irrespective of the forbearance agreement. 7 Multifamily loans in forbearance are reported as current as long as the borrower is in compliance with the forbearance agreement, including the agreed upon repayment plan. Loans in forbearance are therefore not included in the multifamily delinquency rates if the borrower is in compliance with the forbearance agreement. 8 Includes the initial $1 billion liquidation preference of the senior preferred stock issued to Treasury in September 2008, the $71.6 billion of draws from Treasury under the Purchase Agreement, and the $22.4 billion in increases to our Net Worth Amount pursuant to the Letter Agreements. 9 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. Net of legislated 10 basis point guarantee fee remitted to Treasury as part of the Temporary Payroll Tax Cut Continuation Act of 2011. 10 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. 11 Consists of both home retention actions and foreclosure alternatives. 12 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.
© Freddie Mac 15 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 and Multifamily segments, its efforts to assist the housing market, liquidity and capital management, economic and market conditions and trends, the effects of the COVID-19 pandemic and actions taken in response thereto on its business, financial condition, and liquidity, its market share, the effect of legislative and regulatory developments and new accounting guidance, credit quality of loans the company owns or guarantees, the costs and benefits of the company’s credit risk transfer transactions, and results of operations and financial condition. 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 state and local governments, 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, 2020, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2021, June 30, 2021, and September 30, 2021, and Current Reports on Form 8-K, which are available on the Investor Relations page of the company’s website at www.freddiemac.com and the SEC’s website 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.