Federal Home Loan Mortgage : Press Release, 02/10/22

Freddie Mac Reports Net Income of $2.7 Billion for Fourth Quarter 2021

and $12.1 Billion for Full-Year 2021

Making Home Possible for Nearly Five Million Households in 2021

• Enabled 1.4 million families, including over 553,000 first-time homebuyers, to purchase a home and nearly 2.9 million homeowners to refinance into more favorable terms
• Financed 655,000 rental units, with 94% of eligible units being affordable to low- to moderate-income families

Fourth Quarter 2021 Financial Results

Market Liquidity		Homes and Rental Units		Net Worth -		Total Mortgage
Provided -		Financed -			Portfolio -
$298 Billion		1.2 Million		$28.0 Billion		$3.2 Trillion

Consolidated

Net Revenues

$5.6 Billion

Net Income $2.7 Billion

Comprehensive

Income

$2.7 Billion

Single-Family

Net Revenues

$4.7 Billion

Net Income $2.2 Billion

Comprehensive

Income

$2.2 Billion

Multifamily

Net Revenues

$0.9 Billion

Net Income $0.5 Billion

Comprehensive

Income

$0.5 Billion

• Net income of $2.7 billion, a decrease of 6% year-over-year, as higher net revenues were offset by an increase in credit-related expense
• Net revenues of $5.6 billion, an increase of 11% year-over-year, driven by mortgage portfolio growth and higher average portfolio guarantee fee rates
• Provision for credit losses of $0.1 billion, compared to a benefit for credit losses of $0.8 billion in the fourth quarter of 2020. The benefit for credit losses in the prior year was driven by a reserve release due to realized house price appreciation
• New business activity of $271 billion, down 29% year-over-year, as refinance activity moderated from historically high levels in the prior year. Full-year 2021 activity of $1.2 trillion, up 12% year-over-year
• Mortgage portfolio of $2,792 billion, up 20% year-over-year, driven by strong full-year new business activity and continued house price appreciation
• Serious delinquency rate of 1.12%, down from 1.46% at September 30, 2021 and 2.64% at December 31, 2020, driven by a decline in loans in forbearance
• Completed approximately 62,000 loan workouts
• 53% of mortgage portfolio covered by credit enhancements
• New business activity of $25 billion, down 29% year-over-year.Full-year 2021 activity of $70 billion, down 16% year-over-year, driven by a reduced loan purchase cap
• Mortgage portfolio of $415 billion, up 7% year-over-year, driven by ongoing loan purchase and securitization activity
• Delinquency rate, which does not include loans in forbearance, of 0.08%, down from 0.12% at September 30, 2021 and 0.16% at December 31, 2020
• 94% of mortgage portfolio covered by credit enhancements

"In 2021, Freddie Mac made significant progress responsibly advancing our mission of making home possible, helping nearly five million families rent, buy, or refinance a home. The company continued to build financial strength by adding nearly $12 billion to retained earnings, improving our safety and soundness, and moving us closer to our capital target. We accomplished this while effectively managing our risks, which allows us to support our mission through the economic cycle and particularly in times of crisis. We begin 2022 with much to be proud of-and even more to accomplish in the year ahead."

Michael J. DeVito

Chief Executive Officer

Freddie Mac Fourth Quarter and Full-Year 2021 Financial Results

February 10, 2022

Page 2

McLean, VA - Freddie Mac (OTCQB: FMCC) today reported net income of $2.7 billion for the fourth quarter of 2021, a decrease of 6% year-over-year, as higher net revenues were offset by an increase in credit-related expense. The company reported comprehensive income of $2.7 billion for the fourth quarter of 2021, an increase of 8% year-over-year.

Net revenues for the fourth quarter of 2021 increased 11% year-over-year to $5.6 billion, primarily driven by higher net interest income. Net interest income for the fourth quarter of 2021 increased 30% year-over-year to

$4.8 billion, primarily driven by continued mortgage portfolio growth and higher average portfolio guarantee fee rates in Single-Family.

Credit-related expense for the fourth quarter of 2021 was $0.6 billion, compared to credit-related income of $0.1 billion in the fourth quarter of 2020. Credit-related expense for the fourth quarter of 2021 included a provision for credit losses of $0.1 billion. Credit-related income for the fourth quarter of 2020 included a benefit for credit losses of $0.8 billion, which was primarily driven by a reserve release due to realized house price appreciation.

Full-Year 2021 Financial Results

Freddie Mac reported net income of $12.1 billion for full-year 2021, an increase of 65% year-over-year, primarily driven by higher net revenues and a credit reserve release in Single-Family. The company reported comprehensive income of $11.6 billion for full-year 2021, an increase of 54% year-over-year.

Net revenues for full-year 2021 increased 32% year-over-year to $22.0 billion, primarily driven by higher net interest income and higher net investment gains. Net interest income for full-year 2021 increased 38% year-over- year to $17.6 billion, primarily driven by continued mortgage portfolio growth, higher average portfolio guarantee fee rates, and higher deferred fee income recognition in Single-Family. The increase in net investment gains for full-year 2021 was primarily due to higher gains on Multifamily securitization activities.

Credit-related expense for full-year 2021 decreased 56% year-over-year to $1.0 billion, driven by a reserve release due to realized house price appreciation and improving economic conditions throughout 2021, partially offset by a decrease in credit enhancement recoveries. Credit-related expense for full-year 2020 was primarily driven by the negative economic effects of the COVID-19 pandemic.

Freddie Mac Fourth Quarter and Full-Year 2021 Financial Results

February 10, 2022

Page 3

Summary of Consolidated Statements of Comprehensive Income (Loss)

(Dollars in millions)

Net interest income

Guarantee income

Investment gains (losses), net

Other income (loss)

Net revenues

Benefit (provision) for credit losses Other credit-related expense(1)

Credit-related income (expense)

Administrative expense

Legislated 10 basis point fee expense

Other expense

Operating expense

Income (loss) before income tax (expense) benefit

Income tax (expense) benefit

Net income (loss)

Other comprehensive income (loss), net of taxes and reclassification adjustments

Comprehensive income (loss)

4Q 2021	3Q 2021	Change
$4,756	$4,418	$338
182	246	(64)
519	383	136
108	200	(92)
5,565	5,247	318
(138)	243	(381)
(466)	(437)	(29)
(604)	(194)	(410)
(734)	(627)	(107)
(636)	(602)	(34)
(156)	(178)	22
(1,526)	(1,407)	(119)
3,435	3,646	(211)
(691)	(727)	36
2,744	2,919	(175)
(22)	(10)	(12)
$2,722	$2,909	$(187)

4Q 2020	Change	2021	2020
$3,653	$1,103	$17,580	$12,771
281	(99)	1,032	1,442
856	(337)	2,746	1,813
232	(124)	593	633
5,022	543	21,951	16,659
813	(951)	1,041	(1,452)
(722)	256	(2,072)	(884)
91	(695)	(1,031)	(2,336)
(706)	(28)	(2,651)	(2,535)
(495)	(141)	(2,342)	(1,836)
(243)	87	(728)	(723)
(1,444)	(82)	(5,721)	(5,094)
3,669	(234)	15,199	9,229
(756)	65	(3,090)	(1,903)
2,913	(169)	12,109	7,326
(391)	369	(489)	205
$2,522	$200	$11,620	$7,531

1. Other credit-related expense includes credit enhancement expense, benefit for (decrease in) credit enhancement recoveries, and REO operations income (expense).

Conservatorship metrics (in billions)

Net worth	$28.0		$25.3	$2.7	$16.4	$11.6		$28.0		$16.4
Senior preferred stock liquidation preference	98.0		95.0	2.9	86.5	11.4		98.0		86.5
Remaining Treasury funding commitment	140.2		140.2	-	140.2	-	140.2		140.2
Cumulative dividend payments to Treasury	119.7		119.7	-	119.7	-	119.7		119.7
Cumulative draws from Treasury	71.6		71.6	-	71.6	-	71.6		71.6

Totals may not add due to rounding.

Freddie Mac Fourth Quarter and Full-Year 2021 Financial Results

February 10, 2022

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Single-Family Segment

Financial Results

Net Revenues	Net Income	Comprehensive Income
(In millions)	(In millions)	(In millions)

		$4,715		$4,702
	$3,849		$3,961				$2,855						$2,781
$3,409									$2,199						$2,204
				$1,747	$1,738			$2,028					$2,046
									$1,373	$1,410
4Q20	1Q21	2Q21	3Q21	4Q21	4Q20	1Q21	2Q21	3Q21	4Q21	4Q20	1Q21	2Q21	3Q21	4Q21
(Dollars in millions)			4Q 2021	3Q 2021	Change	4Q 2020	Change	2021	2020
Net interest income				$4,425	$4,080	$345	$3,349	$1,076	$16,273	$11,592
Non-interest income				277		(119)	396	60		217		954	457
Net revenues					4,702		3,961	741	3,409		1,293	17,227	12,049
Credit-related income (expense)		(605)		(177)	(428)	80		(685)	(1,086)	(2,200)
Operating expense				(1,343)	(1,251)	(92)	(1,288)		(55)	(5,070)	(4,543)
Income (loss) before income tax (expense)
benefit						2,754		2,533	221	2,201		553	11,071	5,306
Income tax (expense) benefit		(555)		(505)	(50)	(454)		(101)	(2,251)	(1,094)
Net income (loss)				2,199		2,028	171	1,747		452	8,820	4,212
Total other comprehensive income (loss), net of
taxes and reclassification adjustments			5		18	(13)	(374)		379	(379)	104
Comprehensive income (loss)		$2,204	$2,046	$158	$1,373		$831	$8,441	$4,316

Fourth Quarter 2021 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, partially offset by
• Credit-relatedexpense compared to credit-related income in the fourth quarter of 2020. Credit-related income in the fourth quarter of 2020 was primarily driven by a reserve release due to realized house price appreciation.

Full-Year 2021 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, higher average portfolio guarantee fee rates, and higher deferred fee income recognition.
• Lower credit-related expense driven by a reserve release due to realized house price appreciation and improving economic conditions throughout 2021, partially offset by a decrease in credit enhancement recoveries. Credit-related expense in full-year 2020 was primarily driven by the negative economic effects of the COVID-19 pandemic.

Freddie Mac Fourth Quarter and Full-Year 2021 Financial Results

February 10, 2022

Page 5

Single-Family Segment

Business Results

New Business Activity	Mortgage Portfolio	Serious Delinquency Rate
(UPB in billions)	(UPB in billions)

							$2,682	$2,792	2.64%
								2.34%
						$2,564
$383						$2,458						1.86%
$362				$2,326
		$299								1.46%
		$288	$271									1.12%
$274	$273	$190	$167	$160
$109	$89	$98	$132	$111
4Q20	1Q21	2Q21	3Q21	4Q21	4Q20 1Q21 2Q21 3Q21 4Q21	4Q20	1Q21	2Q21	3Q21	4Q21
	Home purchase	Refinance
						4Q 2021	3Q 2021	Change	4Q 2020	Change	2021	2020
New Business Statistics:
Average guarantee fee rate charged (bps)		47	48	(1)	47		-		49	47
Weighted average original loan-to-value (LTV) (%)	71	72	(1)	70		1		71	71
Weighted average original credit score		748	750	(2)	761		(13)		753	759
First-time homebuyers (%)(1)		46	46	-	45		1		46	46
Single-Family homes funded (in thousands)		955	1,027	(72)	1,292		(337)	4,236	3,798
Purchase borrowers (in thousands)		357	415	(58)	356		1	1,378	1,131
Refinance borrowers (in thousands)		598	612	(14)	936		(338)	2,858	2,667
UPB covered by new CRT issuance (in billions)		$242	$167	$75	$167		$75	$828	$477
Portfolio Statistics:
Average guarantee fee rate charged (bps)		46	46	-	44		2		46	44
Weighted average current LTV (%)		55	55	-	58		(3)		55	58
Weighted average current credit score		756	756	-	754		2		756	754
Loan count (in millions)			13.1	12.8	0.3	12.0		1.1	13.1	12.0
Credit-Related Statistics:
Loan workout activity (in thousands)		62	73	(11)	133		(71)		317	426
Loans in forbearance, based on loan count (%)		0.57	1.15	(0.58)	2.70		(2.13)	0.57	2.70
Credit enhancement coverage (%)		53	50	3	50		3		53	50

1. First-timehomebuyers 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 loans, nearly 598,000 of which were refinance loans. First-time homebuyers represented 46% of new single-family home purchase loans.
• Single-Familyloan workout activity decreased to 62,000 from 133,000 in the fourth quarter of 2020, as the demand for pandemic-related borrower assistance declined throughout 2021.
• 0.57% of loans in the Single-Family mortgage portfolio, based on loan count, were in forbearance as of December 31, 2021, down from 2.70% in the fourth quarter of 2020. More than 858,000 forbearance plans have been initiated to help borrowers since January 1, 2020. As of December 31, 2021, approximately 791,000 of these loans have exited forbearance, including 330,000 through reinstatement or payoff and 374,000 through payment deferral.
• Credit enhancement coverage of the Single-Family mortgage portfolio increased to 53% from 50% in the fourth quarter of 2020, primarily due to the new business activity included in credit risk transfer (CRT) transactions.