Federal Home Loan Mortgage : Press Release, 8/2/23

Freddie Mac Reports Net Income of $2.9 Billion for Second Quarter 2023

Making Home Possible for 372,000 Households in Second Quarter 2023

• Financed 258,000 mortgages, with 55% of eligible loans being affordable to low- to moderate-income families, and enabled 102,000 first-time homebuyers to purchase a home
• Financed 114,000 rental units, with 90% of eligible units being affordable to low- to moderate-income families

Second Quarter 2023 Financial Results

Market Liquidity	Homes and Rental Units	Net Worth -	Total Mortgage
Provided -	Financed -	Portfolio -
$96 Billion	372,000	$42.0 Billion	$3.4 Trillion

Consolidated

Net Revenues

$5.3 Billion

Net Income $2.9 Billion

Comprehensive

Income

$2.9 Billion

Single-Family

Net Revenues

$4.4 Billion

Net Income $2.4 Billion

Comprehensive

Income

$2.4 Billion

Multifamily

Net Revenues

$1.0 Billion

Net Income $0.6 Billion

Comprehensive

Income

$0.5 Billion

• Net income of $2.9 billion, an increase of 20% year-over-year, with the increase primarily driven by a credit reserve release in Single-Family
• Net revenues of $5.3 billion, a decrease of 1% year-over-year, as lower net interest income was partially offset by an increase in non-interest income
• Benefit for credit losses of $0.5 billion, primarily driven by improvements in observed and forecasted house price appreciation in Single-Family, partially offset by a credit reserve build in Multifamily
• New business activity of $83 billion, down 40% year-over-year, as both home purchase activity and refinance activity slowed due to higher mortgage interest rates
• Mortgage portfolio of $3.0 trillion, up 3% year-over-year, as portfolio growth has moderated in recent periods due to the slowdown in new business activity
• Serious delinquency rate of 0.56%, down from 0.76% at June 30, 2022, declining below pre-pandemic levels
• Completed approximately 20,000 loan workouts
• 62% of mortgage portfolio covered by credit enhancements
• New business activity of $13 billion, down 13% year-over-year, as higher mortgage interest rates have reduced demand for multifamily financing
• Mortgage portfolio of $427 billion, up 3% year-over-year, as portfolio growth has moderated in recent periods due to the slowdown in new business activity
• Delinquency rate of 0.21%, up from 0.07% at June 30, 2022
• 94% of mortgage portfolio covered by credit enhancements

"The second quarter saw single-family home prices stabilize, influenced by strong demand, higher residential mortgage rates, and limited homes for sale. Renters continue to be cost burdened as rents rose in the face of softening multifamily property prices. Freddie Mac remained focused on its mission and delivered a solid quarter, helping 372,000 buy, refinance, or rent a home, the majority of them affordable to low- or moderate-income borrowers and renters."

Michael J. DeVito Chief Executive Officer

Freddie Mac Second Quarter 2023 Financial Results

August 2, 2023

Page 2

McLean, VA - Freddie Mac (OTCQB: FMCC) today reported net income of $2.9 billion for the second quarter of 2023, an increase of 20% year-over-year, with the increase primarily driven by a credit reserve release in Single- Family.

Net revenues were $5.3 billion, down 1% year-over-year, as lower net interest income was partially offset by an increase in non-interest income. Net interest income was $4.5 billion, down 5% year-over-year, primarily driven by lower deferred fee income due to slower prepayments as a result of higher mortgage interest rates. Non-interest income was $0.8 billion, up 27% year-over year, primarily driven by higher guarantee income and higher net investment gains in Multifamily.

Benefit for credit losses was $0.5 billion for the second quarter of 2023, primarily driven by a credit reserve release in Single-Family due to improvements in observed and forecasted house price appreciation, partially offset by a credit reserve build in Multifamily due to deterioration in forecasted multifamily market conditions and current loan performance. The provision for credit losses of $0.3 billion for the second quarter of 2022 was primarily driven by a credit reserve build in Single-Family due to portfolio growth and deterioration in forecasted economic conditions.

Non-interest expense was $2.2 billion, up 9% year-over-year, primarily driven by a decrease in credit enhancement recoveries due to a decline in expected credit losses on covered loans.

Summary of Consolidated Statements of Income and Comprehensive Income

(Dollars in millions)

Net interest income

Non-interest income

Net revenues

(Provision) benefit for credit losses Non-interest expense

Income before income tax expense

Income tax expense

Net income

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

Comprehensive income

Conservatorship metrics (in millions)

Net worth

Senior preferred stock liquidation preference Remaining Treasury funding commitment Cumulative dividend payments to Treasury Cumulative draws from Treasury

2Q 2023	1Q 2023	Change		2Q 2022	Change
$4,523	$4,501	$22	$4,759	($236)
816	326	490	645	171
5,339	4,827	512	5,404	(65)
537	(395)	932	(307)	844
(2,204)	(1,932)	(272)	(2,020)	(184)
3,672	2,500	1,172	3,077	595
(728)	(505)	(223)	(624)	(104)
2,944	1,995	949	2,453	491
(54)	54	(108)	(66)	12
$2,890	$2,049	$841		$2,387	$503
$41,957	$39,067	$2,890	$34,098	$7,859
111,715	109,666	2,049	104,359	7,356
140,162	140,162	-	140,162	-
119,680	119,680	-	119,680	-
71,648	71,648	-	71,648	-

Freddie Mac Second Quarter 2023 Financial Results

August 2, 2023

Page 3

Single-Family Segment

Financial Results

		Net Revenues				Net Income			Comprehensive Income
		(In billions)				(In billions)				(In billions)
	$4.9
		$4.4	$4.2	$4.2	$4.4
						$2.2				$2.4	$2.2				$2.4
									$1.5	$1.7					$1.5	$1.7
								$0.8						$0.8
	2Q22	3Q22	4Q22	1Q23	2Q23		2Q22	3Q22	4Q22	1Q23	2Q23		2Q22	3Q22	4Q22	1Q23	2Q23

(Dollars in millions)

Net interest income

Non-interest income

Net revenues

(Provision) benefit for credit losses

Non-interest expense

Income before income tax expense

Income tax expense

Net income

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

Comprehensive income

2Q 2023	1Q 2023	Change		2Q 2022	Change
$4,295	$4,296	($1)	$4,535	($240)
65	(93)	158	336	(271)
4,360	4,203	157	4,871	(511)
638	(318)	956	(298)	936
(2,028)	(1,783)	(245)	(1,854)	(174)
2,970	2,102	868	2,719	251
(589)	(425)	(164)	(551)	(38)
2,381	1,677	704	2,168	213
2	(1)	3		5	(3)
$2,383	$1,676	$707	$2,173	$210

Second Quarter 2023

Net income of $2.4 billion, up 10% year-over-year.

• Net revenues were $4.4 billion, down 10% year-over year. Net interest income was $4.3 billion, down 5% year-over-year, primarily driven by lower deferred fee income due to slower prepayments as a result of higher mortgage interest rates.
• Benefit for credit losses was $0.6 billion for the second quarter of 2023, primarily driven by a credit reserve release due to improvements in observed and forecasted house price appreciation. The provision for credit losses of $0.3 billion for the second quarter of 2022 was primarily driven by a credit reserve build due to portfolio growth and deterioration in forecasted economic conditions.

Freddie Mac Second Quarter 2023 Financial Results

August 2, 2023

Page 4

Single-Family Segment

Business Results

New Business Activity			Mortgage Portfolio		Serious Delinquency Rate
	(UPB in billions)					(UPB in billions)
$138	$121				$2,928	$2,971	$2,986	$2,989	$3,004
								0.76%
$52	$23											0.67%	0.66%
$75		$83										0.62%	0.56%
		$59	$10
		$12
		$8
$86	$98
$63		$73
	$51
2Q22	3Q22	4Q22	1Q23	2Q23		2Q22		3Q22	4Q22	1Q23	2Q23		2Q22	3Q22	4Q22	1Q23	2Q23
	Home purchase	Refinance

		2Q 2023	1Q 2023	Change		2Q 2022	Change
New Business Statistics:
Single-Family homes funded (in thousands)	258	190	68	468	(210)
Purchase borrowers (in thousands)	217	157	60	263	(46)
Refinance borrowers (in thousands)	41	33	8	205	(164)
Affordable to low- to moderate-income families (%)(1)	55	54	1	61	(6)
First-time homebuyers (%)(2)	52	51	1	49	3
Average estimated guarantee fee rate (bps)	57	55	2	52	5
Weighted average original loan-to-value (LTV) (%)	79	79	-	75	4
Weighted average original credit score	751	749	2	744	7
UPB covered by new CRT issuance (in billions)	$56	$15	$41	$151	($95)
Portfolio Statistics:
Average estimated guarantee fee rate (bps)	48	48	-	47	1
Weighted average current LTV (%)	54	55	(1)	52	2
Weighted average current credit score	756	755	1	756	-
Loan count (in millions)	13.6	13.6	-	13.5	0.1
Credit-Related Statistics:
Loan workout activity (in thousands)	20	24	(4)	37	(17)
Credit enhancement coverage (%)	62	62	-	59	3

1. Eligible loans acquired affordable to families earning at or below 120% of area median income (AMI).
2. Calculated as a percentage of purchase borrowers with loans secured by primary residences.

Business Highlights

• The percentage of new acquisitions represented by purchase loans increased significantly in the second quarter of 2023, compared to the second quarter of 2022, as refinance activity slowed due to higher mortgage interest rates. First-time homebuyers represented 52% of new single-family home purchase loans.
• Single-Familyloan workout activity decreased to 20,000 from 37,000 in the second quarter of 2022, as the seriously delinquent loan population continued to decline.
• Credit enhancement coverage of the Single-Family mortgage portfolio increased to 62% at June 30, 2023, up from 59% at June 30, 2022.

Freddie Mac Second Quarter 2023 Financial Results

August 2, 2023

Page 5

Multifamily Segment

Financial Results

		Net Revenues				Net Income			Comprehensive Income
		(In billions)				(In billions)				(In billions)
					$1.0
		$0.8
	$0.5		$0.6	$0.6				$0.5			$0.6						$0.5
														$0.4
						$0.3		$0.3	$0.3				$0.3	$0.3
								$0.2
	2Q22	3Q22	4Q22	1Q23	2Q23		2Q22	3Q22	4Q22	1Q23	2Q23		2Q22	3Q22	4Q22	1Q23	2Q23

(Dollars in millions)

Net interest income

Non-interest income

Net revenues

(Provision) benefit for credit losses

Non-interest expense

Income before income tax expense

Income tax expense

Net income

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

Comprehensive income

2Q 2023	1Q 2023	Change		2Q 2022	Change
$228	$205	$23	$224	$4
751	419	332	309	442
979	624	355	533	446
(101)	(77)	(24)	(9)	(92)
(176)	(149)	(27)	(166)	(10)
702	398	304	358	344
(139)	(80)	(59)	(73)	(66)
563	318	245	285	278
(56)	55	(111)		(71)	15
$507	$373	$134	$214	$293

Second Quarter 2023

Net income of $0.6 billion, up 98% year-over-year.

• Net revenues were $1.0 billion, up 84% year-over-year.Non-interest income was $0.8 billion, up 143% year- over-year, driven by higher guarantee income and higher net investment gains. Guarantee income increased primarily due to lower fair value losses on guarantee assets as a result of smaller interest rate increases. Net investment gains increased primarily due to fair value gains from interest-rate risk management activities.
• Provision for credit losses was $0.1 billion in the second quarter of 2023, driven by a credit reserve build due to deterioration in forecasted multifamily market conditions and current loan performance.