Federal Home Loan Mortgage : Press Release, 5/3/23

Freddie Mac Reports Net Income of $2.0 Billion for First Quarter 2023

Making Home Possible for 250,000 Households in First Quarter 2023

• Financed 190,000 mortgages, with 54% of eligible loans being affordable to low- to moderate-income families, and enabled 72,000 first-time homebuyers to purchase a home
• Financed 60,000 rental units, with 89% of eligible units being affordable to low- to moderate-income families

First Quarter 2023 Financial Results

Market Liquidity	Homes and Rental Units	Net Worth -	Total Mortgage
Provided -	Financed -	Portfolio -
$65 Billion	250,000	$39.1 Billion	$3.4 Trillion

Consolidated

Net Revenues

$4.8 Billion

Net Income $2.0 Billion

Comprehensive

Income

$2.0 Billion

Single-Family

Net Revenues

$4.2 Billion

Net Income $1.7 Billion

Comprehensive

Income

$1.7 Billion

Multifamily

Net Revenues

$0.6 Billion

Net Income $0.3 Billion

Comprehensive

Income

$0.4 Billion

• Net income of $2.0 billion, a decrease of 47% year-over-year, primarily driven by lower net revenues and a credit reserve build in the current period compared to a credit reserve release in the prior year period
• Net revenues of $4.8 billion, a decrease of 17% year-over-year, as higher net interest income was offset by a decline in non- interest income
• Provision for credit losses of $0.4 billion in the first quarter of 2023, compared to a benefit for credit losses of $0.8 billion in the first quarter of 2022
• New business activity of $59 billion, down 72% 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 4% year-over-year and flat quarter-over-quarter, as portfolio growth has moderated in recent periods due to the slowdown in new business activity
• Serious delinquency rate of 0.62%, down from 0.92% at March 31, 2022, primarily driven by the decline of loans in forbearance
• Completed approximately 24,000 loan workouts
• 62% of mortgage portfolio covered by credit enhancements
• New business activity of $6 billion, down 60% year-over-year, as higher mortgage interest rates and greater market uncertainty have reduced demand for multifamily mortgage financing
• Mortgage portfolio of $426 billion, up 3% year-over-year and down 1% quarter-over-quarter, primarily due to the slowdown in new business activity
• Delinquency rate of 0.13%, up from 0.08% at March 31, 2022
• 93% of mortgage portfolio covered by credit enhancements

"Freddie Mac's solid performance in the first quarter helped promote sustainable homeownership and rental opportunities across the nation. In an uncertain economic environment, we remain focused on our mission and will continue to serve as a stabilizing force for the housing finance system."

Michael J. DeVito Chief Executive Officer

Freddie Mac First Quarter 2023 Financial Results

May 3, 2023

Page 2

McLean, VA - Freddie Mac (OTCQB: FMCC) today reported net income of $2.0 billion for the first quarter of 2023, a decrease of 47% year-over-year, primarily driven by lower net revenues and a credit reserve build in the current period compared to a credit reserve release in the prior year period.

Net revenues were $4.8 billion, down 17% year-over-year, as higher net interest income was offset by a decline in non-interest income. Net interest income was $4.5 billion, up 10% year-over-year, primarily driven by mortgage portfolio growth, higher average portfolio guarantee fee rates, and higher investments net interest income due to higher interest rates. These increases were partially offset by a decline in deferred fee income due to slower prepayments as a result of higher mortgage interest rates. Non-interest income was $0.3 billion, down 81% year- over year, primarily driven by a decline in net investment gains in Single-Family from elevated levels in the prior year period.

Provision for credit losses was $0.4 billion for the first quarter of 2023, driven by a modest credit reserve build primarily attributable to new acquisitions in Single-Family. The benefit for credit losses of $0.8 billion for the first quarter of 2022 was primarily driven by a credit reserve release due to higher estimated house prices and an improvement in forecasted economic conditions.

Non-interest expense remained unchanged at $1.9 billion.

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

1Q 2023	4Q 2022	Change		1Q 2022	Change
$4,501	$4,588	($87)	$4,104	$397
326	245	81	1,742	(1,416)
4,827	4,833	(6)	5,846	(1,019)
(395)	(575)	180	837	(1,232)
(1,932)	(2,042)	110	(1,932)	-
2,500	2,216	284	4,751	(2,251)
(505)	(453)	(52)	(953)	448
1,995	1,763	232	3,798	(1,803)
54	25	29	(120)	174
$2,049	$1,788	$261		$3,678	($1,629)
$39,067	$37,018	$2,049	$31,711	$7,356
109,666	107,878	1,788	100,681	8,985
140,162	140,162	-	140,162	-
119,680	119,680	-	119,680	-
71,648	71,648	-	71,648	-

Freddie Mac First Quarter 2023 Financial Results

May 3, 2023

Page 3

Single-Family Segment

Financial Results

		Net Revenues				Net Income			Comprehensive Income
		(In billions)				(In billions)				(In billions)
	$5.2	$4.9				$3.4					$3.4
			$4.4
			$4.2	$4.2
								$2.2						$2.2
										$1.5	$1.7					$1.5	$1.7
									$0.8						$0.8
	1Q22	2Q22	3Q22	4Q22	1Q23		1Q22	2Q22	3Q22	4Q22	1Q23		1Q22	2Q22	3Q22	4Q22	1Q23

(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

1Q 2023	4Q 2022	Change		1Q 2022	Change
$4,296	$4,363	($67)	$3,806	$490
(93)	(118)	25	1,408	(1,501)
4,203	4,245	(42)	5,214	(1,011)
(318)	(521)	203	831	(1,149)
(1,783)	(1,863)	80	(1,778)	(5)
2,102	1,861	241	4,267	(2,165)
(425)	(381)	(44)	(856)	431
1,677	1,480	197	3,411	(1,734)
(1)	22	(23)		(12)	11
$1,676	$1,502	$174	$3,399	($1,723)

First Quarter 2023

Net income of $1.7 billion, down 51% year-over-year.

• Net revenues were $4.2 billion, down 19% year-over year.
• • Net interest income was $4.3 billion, up 13% year-over-year, primarily driven by mortgage portfolio growth, higher average portfolio guarantee fee rates, and higher investments net interest income due to higher interest rates. These increases were partially offset by a decline in deferred fee income due to slower prepayments driven by higher mortgage interest rates.
  • Non-interestincome was a loss of $0.1 billion for the first quarter of 2023, compared to non-interest income of $1.4 billion for the first quarter of 2022, which was primarily driven by spread-related gains on commitments to hedge the securitization pipeline during that period.
• Provision for credit losses was $0.3 billion for the first quarter of 2023, driven by a modest credit reserve build primarily attributable to new acquisitions. The benefit for credit losses of $0.8 billion for the first quarter of 2022 was driven by a credit reserve release due to higher estimated house prices and an improvement in forecasted economic conditions.

Freddie Mac First Quarter 2023 Financial Results

May 3, 2023

Page 4

Single-Family Segment

Business Results

New Business Activity		Mortgage Portfolio		Serious Delinquency Rate
	(UPB in billions)				(UPB in billions)
$207					$2,884	$2,928	$2,971	$2,986	$2,989
	$138										0.92%	0.76%
$114	$121											0.67%	0.66%
$52											0.62%
	$23	$75	$59
			$12
$93	$86	$98	$8
$63
			$51
1Q22	2Q22	3Q22	4Q22	1Q23		1Q22	2Q22	3Q22	4Q22	1Q23		1Q22	2Q22	3Q22	4Q22	1Q23
	Home purchase	Refinance

		1Q 2023	4Q 2022	Change	1Q 2022	Change
New Business Statistics:
Single-Family homes funded (in thousands)	190	252	(62)	691	(501)
Purchase borrowers (in thousands)	157	200	(43)	279	(122)
Refinance borrowers (in thousands)	33	52	(19)	412	(379)
Affordable to low- to moderate-income families (%)(1)	54	57	(3)	52	2
First-time homebuyers (%)(2)	51	49	2	48	3
Average estimated guarantee fee rate (bps)	55	51	4	49	6
Weighted average original loan-to-value (LTV) (%)	79	78	1	72	7
Weighted average original credit score	749	747	2	746	3
UPB covered by new CRT issuance (in billions)	$15	$58	($43)	$208	($193)
Portfolio Statistics:
Average estimated guarantee fee rate (bps)	48	48	-	47	1
Weighted average current LTV (%)	55	54	1	54	1
Weighted average current credit score	755	756	(1)	756	(1)
Loan count (in millions)	13.6	13.6	-	13.4	0.2
Credit-Related Statistics:
Loan workout activity (in thousands)	24	22	2	49	(25)
Credit enhancement coverage (%)	62	61	1	55	7

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

• 83% of new acquisitions in the first quarter of 2023 were purchase loans, compared to 40% in the first quarter of 2022, as refinance activity slowed due to higher mortgage interest rates. First-time homebuyers represented 51% of new single-family home purchase loans.
• Single-Familyloan workout activity decreased to 24,000 from 49,000 in the first quarter of 2022, as the overall forbearance population continued to decline.
• Credit enhancement coverage of the Single-Family mortgage portfolio increased to 62% at March 31, 2023, up from 55% at March 31, 2022.

Freddie Mac First Quarter 2023 Financial Results

May 3, 2023

Page 5

Multifamily Segment

Financial Results

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

(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

1Q 2023	4Q 2022	Change		1Q 2022	Change
$205	$225	($20)	$298	($93)
419	363	56	334	85
624	588	36	632	(8)
(77)	(54)	(23)	6	(83)
(149)	(179)	30	(154)	5
398	355	43	484	(86)
(80)	(72)	(8)	(97)	17
318	283	35	387	(69)
55	3	52		(108)	163
$373	$286	$87	$279	$94

First Quarter 2023

Net income of $0.3 billion, down 18% year-over-year.

• Net revenues were $0.6 billion, down 1% year-over-year.
• • Net interest income was $0.2 billion, down 31% year-over-year, primarily due to lower prepayment income driven by higher mortgage interest rates.
  • Non-interestincome was $0.4 billion, up 25% year-over-year, primarily driven by higher guarantee income, partially offset by lower net investment gains. Guarantee income increased as the first quarter of 2022 included fair value losses on guarantee assets due to rising interest rates. Net investment gains declined due to lower revenue from held-for-sale loan purchase and securitization activity as a result of lower volumes and lower margins, coupled with net losses from interest-rate risk management activities.
• Provision for credit losses was $0.1 billion for the first quarter of 2023, compared to a small benefit for credit losses for the first quarter of 2022, primarily due to a credit reserve build to reflect increased uncertainty in forecasted economic conditions.