Federal Home Loan Mortgage : Press Release, 02/22/23

Freddie Mac Reports Net Income of $1.8 Billion for Fourth Quarter 2022

and $9.3 Billion for Full-Year 2022

Making Home Possible for 2.5 Million Households in 2022

• Financed 1.8 million mortgages, with 58% of eligible loans being affordable to low- to moderate-income families, and enabled 444,000 first-time homebuyers to purchase a home
• Financed 693,000 rental units, with 96% of eligible units being affordable to low- to moderate-income families

Fourth Quarter 2022 Financial Results

Market Liquidity	Homes and Rental Units	Net Worth -	Total Mortgage
Provided -	Financed -	Portfolio -
$104 Billion	504,000	$37.0 Billion	$3.4 Trillion

Consolidated

Net Revenues

$4.8 Billion

Net Income $1.8 Billion

Comprehensive

Income

$1.8 Billion

Single-Family

Net Revenues

$4.2 Billion

Net Income $1.5 Billion

Comprehensive

Income

$1.5 Billion

Multifamily

Net Revenues

$0.6 Billion

Net Income $0.3 Billion

Comprehensive

Income

$0.3 Billion

• Net income of $1.8 billion, a decrease of 36% year-over-year, primarily driven by lower net revenues and a credit reserve build in Single-Family
• Net revenues of $4.8 billion, a decrease of 13% year-over-year, primarily driven by a decline in non-interest income
• Provision for credit losses of $0.6 billion, up from $0.1 billion in the fourth quarter of 2021, primarily driven by declining observed and forecasted house price appreciation, partially offset by lower purchase volumes
• New business activity of $75 billion, down 72% year-over-year, as refinance activity slowed due to rising mortgage interest rates. Full- year 2022 activity of $541 billion, down 56% year-over-year
• Mortgage portfolio of $3.0 trillion, up 7% year-over-year, driven by an increase in average portfolio loan size and a higher share of single-family mortgage debt outstanding
• Serious delinquency rate of 0.66%, down from 1.12% at December 31, 2021, primarily driven by a decline in loans in forbearance
• Completed approximately 22,000 loan workouts
• 61% of mortgage portfolio covered by credit enhancements
• New business activity of $29 billion, up 16% year-over-year. Full- year 2022 activity of $73 billion, up 4% year-over-year, primarily driven by a larger loan purchase cap available during 2022
• Mortgage portfolio of $429 billion, up 3% year-over-year, primarily driven by new business activity, partially offset by increased borrower payoff activity driven by market conditions
• Delinquency rate of 0.12%, up from 0.08% at December 31, 2021
• 93% of mortgage portfolio covered by credit enhancements

"In a year with significant volatility and a challenging macroeconomic environment, Freddie Mac made home possible for

2.5 million families, while delivering solid financial results. Looking ahead, we expect to place even more emphasis on our mission by further advancing our affordable, sustainable, and equitable housing plans without compromising safety and soundness. We expect to accomplish these objectives by leveraging our talented workforce, collaborating with market participants to find new solutions, and continuously working to effectively manage risk. These actions will enable Freddie Mac to continue to build financial strength and stability that is central to fulfilling our mission."

Michael J. DeVito

Chief Executive Officer

Freddie Mac Fourth Quarter and Full-Year 2022 Financial Results

February 22, 2023

Page 2

McLean, VA - Freddie Mac (OTCQB: FMCC) today reported net income of $1.8 billion for the fourth quarter of 2022, a decrease of 36% year-over-year, primarily driven by lower net revenues and a credit reserve build in Single-Family.

Net revenues were $4.8 billion for the fourth quarter of 2022, down 13% year-over-year, primarily driven by a decline in non-interest income. Net interest income for the fourth quarter of 2022 was $4.6 billion, down 4% 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 for the fourth quarter of 2022 was $0.2 billion, down 70% year-over-year, primarily driven by a decline in net investment gains in both Single-Family and Multifamily.

Provision for credit losses was $0.6 billion for the fourth quarter of 2022, up from $0.1 billion for the fourth quarter of 2021, primarily driven by declining observed and forecasted house price appreciation, partially offset by lower purchase volumes.

Non-interest expense for the fourth quarter of 2022 was $2.0 billion, up 3% year-over-year, primarily driven by higher credit enhancement expense as a result of a higher volume of outstanding credit risk transfer transactions and higher spreads on recent transactions.

Full-Year 2022 Financial Results

Freddie Mac reported net income of $9.3 billion for full-year 2022, a decrease of 23% year-over-year, primarily driven by a credit reserve build in Single-Family.

Net revenues were $21.3 billion for full-year 2022, down 3% year-over-year, as higher net interest income in Single-Family was offset by a decline in non-interest income in Multifamily. Net interest income for full-year 2022 was $18.0 billion, up 2% year-over-year, as continued mortgage portfolio growth and higher average portfolio guarantee fee rates were partially offset by lower deferred fee income due to slower prepayments as a result of higher mortgage interest rates. Non-interest income for full-year 2022 was $3.3 billion, down 25% year-over-year, primarily driven by a decrease in net investment gains in Multifamily.

Provision for credit losses was $1.8 billion for full-year 2022, compared to a benefit for credit losses of $1.0 billion for full-year 2021, primarily driven by declining observed and forecasted house price appreciation.

Non-interest expense for full-year 2022 remained $7.8 billion, as higher credit enhancement expense driven by a higher volume of outstanding credit risk transfer transactions and higher spreads on transactions executed during 2022 was offset by a benefit for credit enhancement recoveries due to an increase in expected credit losses on covered loans.

Freddie Mac Fourth Quarter and Full-Year 2022 Financial Results

February 22, 2023

Page 3

Summary of Consolidated Statements of Income and Comprehensive Income

		4Q	3Q			4Q
(Dollars in millions)	2022	2022	Change	2021	Change	2022	2021
Net interest income	$4,588	$4,554	$34	$4,756	($168)	$18,005	$17,580
Non-interest income	245	627	(382)	809	(564)	3,259	4,371
Net revenues	4,833	5,181	(348)	5,565	(732)	21,264	21,951
(Provision) benefit for credit losses	(575)	(1,796)	1,221	(138)	(437)	(1,841)	1,041
Non-interest expense	(2,042)	(1,825)	(217)	(1,992)	(50)	(7,819)	(7,793)
Income before income tax expense	2,216	1,560	656	3,435	(1,219)	11,604	15,199
Income tax expense	(453)	(247)	(206)	(691)	238	(2,277)	(3,090)
Net income	1,763	1,313	450	2,744	(981)	9,327	12,109
Other comprehensive income (loss) , net
of taxes and reclassification
adjustments		25	(181)	206		(22)	47		(342)		(489)
Comprehensive income	$1,788	$1,132	$656	$2,722	($934)	$8,985	$11,620
Conservatorship metrics
(in millions)
Net worth	$37,018	$35,230	$1,788	$28,033	$8,985	$37,018	$28,033
Senior preferred stock liquidation
preference	107,878	106,746	1,132	97,959	9,919	107,878	97,959
Remaining Treasury funding
commitment	140,162	140,162	-	140,162	-	140,162	140,162
Cumulative dividend payments to
Treasury	119,680	119,680	-	119,680	-	119,680	119,680
Cumulative draws from Treasury	71,648	71,648	-	71,648	-	71,648	71,648

Freddie Mac Fourth Quarter and Full-Year 2022 Financial Results

February 22, 2023

Page 4

Single-Family Segment

Financial Results

		Net Revenues				Net Income			Comprehensive Income
		(In billions)				(In billions)				(In billions)
		$5.2						$3.4						$3.4
	$4.7	$4.9
		$4.4
			$4.2
				$2.2		$2.2			$2.2		$2.2
											$1.5						$1.5
										$0.8						$0.8
	4Q21	1Q22	2Q22	3Q22	4Q22		4Q21	1Q22	2Q22	3Q22	4Q22		4Q21	1Q22	2Q22	3Q22	4Q22

		4Q	3Q			4Q
(Dollars in millions)	2022	2022	Change	2021	Change	2022	2021
Net interest income	$4,363	$4,363	$-	$4,425	($62)	$17,067	$16,273
Non-interest income		(118)	58	(176)		277	(395)		1,684		954
Net revenues	4,245	4,421	(176)	4,702	(457)	18,751	17,227
(Provision) benefit for credit losses	(521)	(1,784)	1,263	(157)	(364)	(1,772)	919
Non-interest expense		(1,863)	(1,653)	(210)		(1,791)	(72)		(7,148)		(7,075)
Income before income tax expense	1,861	984	877	2,754	(893)	9,831	11,071
Income tax expense		(381)	(141)	(240)		(555)	174		(1,929)		(2,251)
Net income	1,480	843	637	2,199	(719)	7,902	8,820
Total other comprehensive income (loss), net of
taxes and reclassification adjustments		22	(39)	61		5	17		(24)		(379)
Comprehensive income	$1,502	$804	$698	$2,204	($702)	$7,878	$8,441

Fourth Quarter 2022

Net income of $1.5 billion, down 33% year-over-year.

• Net revenues were $4.2 billion, down 10% year-over year. Net interest income was $4.4 billion, down 1% year-over-year, as continued mortgage portfolio growth and higher average portfolio guarantee fee rates were offset by lower deferred fee income due to slower prepayments as a result of higher mortgage interest rates. Non-interest income was a loss of $0.1 billion for the fourth quarter of 2022, compared to non-interest income of $0.3 billion for the fourth quarter of 2021, primarily driven by interest-rate-related fair value losses and lower gains on sales of mortgage loans due to lower volume.
• Provision for credit losses was $0.5 billion for the fourth quarter of 2022, up from $0.2 billion in the fourth quarter of 2021, primarily driven by declining observed and forecasted house price appreciation, partially offset by lower purchase volumes.

Full-Year 2022

Net income of $7.9 billion, down 10% year-over-year.

• Net revenues were $18.8 billion, up 9% year-over-year. Net interest income was $17.1 billion, up 5% year- over-year, as continued mortgage portfolio growth and higher average portfolio guarantee fee rates were partially offset by lower deferred fee income due to slower prepayments as a result of higher mortgage interest rates. Non-interest income was $1.7 billion, up 77% year-over-year, primarily driven by gains on commitments to hedge the Single-Family securitization pipeline in the first quarter of 2022.
• Provision for credit losses was $1.8 billion for full-year 2022, compared to a benefit for credit losses of $0.9 billion for full-year 2021, primarily driven by declining observed and forecasted house price appreciation.

Freddie Mac Fourth Quarter and Full-Year 2022 Financial Results

February 22, 2023

Page 5

Single-Family Segment

Business Results

New Business Activity			Mortgage Portfolio		Serious Delinquency Rate
	(UPB in billions)				(UPB in billions)
$271									$2,971	$2,986
	$207				$2,792	$2,884	$2,928	1.12%
										0.92%
$160													0.76%
$114	$138	$121											0.67%	0.66%
		$52	$23	$75
$111	$93	$86	$98	$12
$63
4Q21	1Q22	2Q22	3Q22	4Q22		4Q21	1Q22	2Q22	3Q22	4Q22		4Q21	1Q22	2Q22	3Q22	4Q22
	Home purchase	Refinance

		4Q	3Q		4Q
	2022	2022	Change	2021	Change	2022	2021
New Business Statistics:
Single-Family homes funded (in thousands)	252	392	(140)	955	(703)	1,803	4,236
Purchase borrowers (in thousands)	200	297	(97)	357	(157)	1,039	1,378
Refinance borrowers (in thousands)	52	95	(43)	598	(546)	764	2,858
Affordable to low- to moderate-income families (%)(1)	57	56	1	54	3	58	52
First-time homebuyers (%)(2)	49	49	-	46	3	49	46
Average estimated guarantee fee rate (bps)	51	54	(3)	47	4	51	49
Weighted average original loan-to-value (LTV) (%)	78	78	-	71	7	75	71
Weighted average original credit score	747	747	0	748	(1)	746	753
UPB covered by new CRT issuance (in billions)	$58	$136	($78)	$242	($184)	$553	$828
Portfolio Statistics:
Average estimated guarantee fee rate (bps)	48	48	-	46	2	48	46
Weighted average current LTV (%)	54	53	1	55	(1)	54	55
Weighted average current credit score	756	756	-	756	-	756	756
Loan count (in millions)	13.6	13.6	-	13.1	0.5	13.6	13.1
Credit-Related Statistics:
Loan workout activity (in thousands)	22	28	(6)	62	(40)	136	317
Credit enhancement coverage (%)	61	61	-	53	8	61	53

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

Fourth Quarter 2022 Business Highlights

• The company provided funding for 252,000 single-family loans, 200,000 of which were purchase loans, as refinance activity slowed due to higher mortgage interest rates. First-time homebuyers represented 49% of new single-family home purchase loans.
• Single-Familyloan workout activity decreased to 22,000 from 62,000 in the fourth quarter of 2021, as the overall forbearance population continued to decline.
• Credit enhancement coverage of the Single-Family mortgage portfolio increased to 61% from 53% in the fourth quarter of 2021, primarily due to the new business activity included in credit risk transfer (CRT) transactions.