Freddie Mac Update

September 2013

Freddie Mac 2013

Table of contents
Section Page

I
II III IV V VI VII

Freddie Mac Overview

U.S. Housing Market Credit Guarantee Business Investment Management Business Multifamily Business Debt Funding Program Mortgage Funding

3
23 37 51 56 70 80

For more information about Freddie Mac and its business, please see the companys filings with the Securities and Exchange Co mmission, including the companys Annual Report on Form 10-K for the year ended December 31, 2012, which are available on the Investor Relations page of the companys Web site at www.FreddieMac.com/investors and the Securities and Exchange Commissions Web site at www.sec.gov. 2

Freddie Mac Overview

Freddie Mac 2013

Freddie Macs mission

U.S. Residential Mortgage Market

Mortgage Securitization

Freddie Mac

Mortgage Investments

Mortgage-backed Securities

Global Capital Markets

Debt Securities

A primary purpose is to provide stability in the secondary market for home mortgages including mortgages securing housing for low and moderate income families. This can be accomplished through both portfolio purchasing and selling activities, as well as through the securitization of home mortgages.1

1 House

of Representatives report on FIRREA, No. 54, 101st Congress, 1st Session, Part 3 at 2 (1989).

Conservatorship
We continue to operate under the conservatorship that commenced on September 6, 2008, under the direction of Federal Housing Finance Agency (FHFA) our Conservator. FHFA as our Conservator: FHFA assumed all powers of the Boards, management and shareholders FHFA has directed and will continue to direct certain of our business activities and strategies FHFA delegated certain authority to our Board of Directors to oversee, and to management to conduct, day-to-day operations Our ability to access funds from the Treasury under the Purchase Agreement is critical to keeping us solvent. There is significant uncertainty as to whether or when we will emerge from conservatorship, as it has no specified termination date. Our future structure and role will be determined by the Administration and Congress, and there will likely be significant changes beyond the near term.

FHFA strategic plan

On February 21, 2012, FHFA sent to Congress a strategic plan for the next phase of the conservatorships of Freddie Mac and Fannie Mae (the Enterprises).

The plan sets forth three strategic goals:

Build. Build a new infrastructure for the secondary mortgage market. Contract. Gradually contract the Enterprises dominant presence in the marketplace while simplifying and shrinking their operations. Maintain. Maintain foreclosure prevention activities and credit availability for new and refinanced mortgages. The steps envisioned in the strategic plan are consistent with each of the housing finance reform frameworks set forth in the Treasury white paper released in February 2011 as well as leading congressional proposals previously introduced. The plan envisions actions by the Enterprises that will help establish a new secondary mortgage market while leaving open options regarding the resolution of the conservatorships and the degree of government involvement in supporting the secondary mortgage market in the future.

In accomplishing the strategic goals, the plan notes that:

Public interest is best served by ensuring that the Enterprises have the best available corporate leaders to carry out the necessary work. Managers and staff also have critical roles to play.
6

2013 Conservatorship scorecard

Strategic Goal

Weight

Scorecard Objective
Common Securitization Platform

BUILD

30%

Contractual and Disclosure Framework Uniform Mortgage Data Program Single Family: Conduct Risk Transfer Transactions

CONTRACT

50%

Multifamily: Reduce New Business

Retained Portfolio: Reduce Balance by Selling Assets Adapt to statutory, regulatory, and market changes by making appropriate modifications/enhancements to loss mitigation and refinance options Enhance post-delivery quality control practices and transparency associated with new representation and warranty framework

MAINTAIN

20%

Complete representation and warranty demands for pre-conservatorship loan activity Develop counterparty risk management standards for mortgage insurers Incorporate policies related to lender placed insurance within Servicing Alignment Initiative

Amended Purchase Agreement On August 17, 2012, Freddie Mac, acting through FHFA, as Conservator, and Treasury entered into a third amendment to the Purchase Agreement. The principal changes, which are consistent with FHFAs strategic plan for Freddie Mac and Fannie Mae conservatorships, include: Replacement of the fixed dividend rate with a net worth sweep dividend beginning for the first quarter of 2013 Accelerated wind-down of the retained portfolio Submission of annual risk management plan to Treasury

Suspension of periodic commitment fee

U.S. housing finance market reform

On February 11, 2011, the Obama Administration delivered a report to Congress that lays out the Administrations plan to reform the U.S. housing finance market The report recommends winding down Freddie Mac and Fannie Mae

The report identifies a number of policy levers that could be used to wind down Freddie Mac and Fannie Mae, shrink the governments footprint in housing finance, and help bring private capital back to the mortgage market, including:
Increasing GSE g-fees Phasing in a 10 percent down payment requirement on mortgages insured by Freddie Mac and Fannie Mae Reducing conforming loan limits Winding down Freddie Mac and Fannie Maes investment portfolios, consistent with Freddie Mac and Fannie Maes Purchase Agreements with Treasury The report states that the government is committed to ensuring that the GSEs have sufficient capital to perform under any guarantees issued now or in the future and the ability to meet any of their debt obligations The report states that the Administration will not pursue policies or reforms in a way that would impair the GSEs ability to honor their obligations The report states the Administrations belief that under the Purchase Agreements there is sufficient funding to ensure the orderly and deliberate wind down of Freddie Mac and Fannie Mae
Source: The Department of the Treasury and U.S. Department of Housing and Urban Developments Reforming Americas Housing F inance Market: A Report to Congress, February 2011.

Market presence
MBS Issuance Volume
$ Trillions

2.4 2.0 1.6

$2.2T

$2.0T $1.9T $1.8T $1.5T $1.2T $1.2T $0.9T $1.7T

1.2 0.8 0.4 0.0

2005

2006

2007

2008

2009

2010

2011

Freddie Mac
2005 Enterprises & Ginnie Mae Private Label
1 2013 data as of June 30, 2013.

Fannie Mae
2006 44.0% 56.0% 2007 62.1% 37.9%

Ginnie Mae
2008 95.2% 4.8% 2009 96.7% 3.3%

YTD 1 2013 Private Label

2011 97.7% 2.3% 2012 99.3% 0.7% YTD 2013 98.3% 1.7%
10

2012

2010 95.9% 4.1%

44.8% 55.2%

Source: Inside Mortgage Finance.

Market liquidity provided

Number of Families Freddie Mac Helped to Own or Rent a Home1
In Thousands
3,000

Purchase and Issuance Volume2, 3 (Single-Family and Multifamily)

$ Billions
600 $546 $456 $406 $349 $276

2,500
2,000 1,500 1,000

2,480 2,089 1,830

2,472

500

400
1,466

300
755 723 743

200 100 0 $95

540
500 0

600

$110

$140

$138

$138

2009

2010

2011

2012

YTD 2013

2Q 2012

3Q 2012

4Q 2012

1Q 2013

2Q 2013

2009

2010

2011

2012

YTD 2013

2Q 2012

3Q 2012

4Q 2012

1Q 2013

2Q 2013

Cumulative Totals Since 2009 Number of Families Freddie Mac Helped to Own or Rent a Home 1 (In Thousands) Refinance borrowers (includes HARP) Purchase borrowers Multifamily rental units Freddie Mac Purchase and Issuance Volume 2 10,337 7,167 1,751 1,419 $2.0 Trillion

1 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.
2 Includes cash purchases of single-family and multifamily mortgage loans, issuances of Freddie Mac mortgage-related securities through the companys guarantor swap program,

issuances of other guarantee commitments and purchases of non-Freddie Mac mortgage-related securities.
3 In the first quarter of 2013, Freddie Mac made certain changes to more closely align the presentation of the companys single -family and multifamily securitization activities. As a

11

result, the purchase and issuance volumes for all prior periods have been revised to conform with the current period presentation.

Single-family loan workouts

Number of Loans (000) 300 250

Number of Loans (000) 60

275

41

45

43

46

41

208
200

169
30

150 100

133
87

50
0

0
2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013

2009

2010

2011

2012

YTD 2013

Loan modifications

Repayment plans

Forbearance agreements

Short sales and deed-in-lieu of foreclosure transactions

Home Retention Actions

Foreclosure Alternatives 1

Cumulative Totals Since 2009 Number of Families Avoiding Foreclosure (In Thousands) Families Retaining Homes
1

872 8 out of every 10

12

1 These categories are not mutually exclusive and a borrower in one category may also be included within another category in the same period. For the periods presented, borrowers

helped through home retention actions in each period may subsequently lose their home through foreclosure or a short sale or deed-in-lieu transaction.

Single-family loan modifications

Single-family Loan Modifications (HAMP and non-HAMP) 1

Number of Loans (000) 30

Number of Loans (000) 200

170 21
20

20

21

160

19
120 80 40

15
10

109 65 70 40

2Q 2012

3Q 2012

4Q 2012

1Q 2013

2Q 2013

2009

2010

2011

2012

YTD 2013

No change in terms Reduction of contractual interest rate, and in certain cases, term extension

Term extension Rate reduction, term extension and principal forbearance

2

1 Includes completed loan modifications under HAMP and under the companys other modification programs. Excludes those loan mo dification activities for which the borrower has

started the required process, but the modification has not been made permanent or effective, such as loans in a modification trial period.
2 Principal forbearance is a change to a loans terms to designate a portion of the principal as non-interest bearing and non-amortizing.

13

Single-family refinance activity1

2009 Number of Borrowers 2 (In Thousands) Other Refinance Relief Refinance - LTV 80% Relief Refinance - LTV > 80% to 100% (HARP) 3 Relief Refinance - LTV > 100% to 125% (HARP) 3 Relief Refinance - LTV > 125% (HARP) 3 Total Number of Borrowers $ Volume (In Billions) Other Refinance Relief Refinance - LTV 80% Relief Refinance - LTV > 80% to 100% (HARP) 3 Relief Refinance - LTV > 100% to 125% (HARP) 3 Relief Refinance - LTV > 125% (HARP) 3 Total $ Volume $345 $15 $17 $3 $0 $380 $200 $58 $38 $10 $0 $306 $168 $42 $27 $13 $0 $250 $228 $36 $37 $30 $20 $351 $78 $11 $10 $7 $5 $111 $68 $12 $10 $7 $3 $100 $1,087 $174 $139 $70 $28 $1,498 1,595 83 72 14 0 1,764 947 324 166 43 0 1,480 740 268 126 59 0 1,193 996 253 191 144 99 1,683 343 84 52 37 24 540 308 89 54 36 20 507 4,929 1,101 661 333 143 7,167 2010 2011 2012 1Q 2013 2Q 2013 Cumulative Total

1 Consists of all single-family refinance mortgage loans that the company either purchased or guaranteed during the period, including those associated with other guarantee commitments and

Other Guarantee Transactions.

2 Some loans have multiple borrowers, but the company has counted them as one borrower for this purpose. For the periods presented, a borrower may be counted more than once if the

company purchased more than one refinance loan relating to the same borrower.
3 The relief refinance mortgage initiative is Freddie Macs implementation of the Home Affordable Refinance Program (HARP). Un der the program, the company allows eligible borrowers who

have mortgages with high current LTV ratios to refinance their mortgages without obtaining new mortgage insurance in excess of what was already in place. HARP is targeted at borrowers with current LTV ratios above 80%; however, Freddie Macs program also allows borrowers with LTV ratios at or below 80% to pa rticipate.

14

Comprehensive income (loss)

$ Billions 8

$7.0 $5.6 $5.7 $4.4

6
4 2 0
$(1.1) $1.5 $1.8

$2.9

(2) (4)
$(4.4)

(6) 2Q 2011 3Q 2011

A B C=A+B

4Q 2011

1Q 2012

2Q 2012

3Q 2012

4Q 2012

1Q 2013

2Q 2013

Net income (loss) Total other comprehensive income (loss), net of taxes Comprehensive income (loss)
15
1

1 Consists of the after-tax changes in: (a) the unrealized gains and losses on available-for-sale securities; (b) the effective portion of derivatives previously designated as cash flow

hedges; and (c) defined benefit plans.

Senior Preferred Stock Purchase Agreement with Treasury

Senior preferred stock outstanding and held by Treasury remained $72.3 billion at June 30, 2013. 1
Dividend payments do not reduce prior Treasury draws. Any future draws will increase the balance of senior preferred stock outstanding.

Since entering conservatorship in September 2008, Freddie Mac has:

Received cumulative draws of $71.3 billion from Treasury. No draws have been requested for the past five quarters; last draw request was $19 million for first quarter 2012.

Freddie Macs net worth was $7.4 billion at June 30, 2013. As a result:
The companys dividend obligation to Treasury will be $4.4 billion in September 2013. The companys aggregate cash dividends paid to Treasury will total approximately $41 billion including the September obligation.

The amount of remaining Treasury funding currently available to Freddie Mac under the Purchase Agreement is $140.5 billion. Any future draws will reduce this amount.

1 Senior preferred stock outstanding of $72.3 billion at June 30, 2013 includes cumulative draws of $71.3 billion plus the initial liquidation preference of $1 billion.

16

Treasury draw requests and dividend payments

$ Billions
($ Billions)

Initial Liquidation Preference Treasury Draw Requests Total Senior Preferred Stock Outstanding

Cumulative Total $1.0 $71.3 $72.3

($ Billions)

Dividend Payments as of 6/30/13 3Q 2013 Dividend Obligation Total Dividend Payments1

Cumulative Total $36.6 $4.4 $40.9

$44.6

$13.0

$12.8 $7.6 $0.02 $0.0 YTD 2 2Q 2013 $4.1 $5.7 $6.5 $7.2

$6.1
2008 2009 2010

$0.2 2008 2009 2010 2011 2012 YTD 2Q 2013 2, 3

2011

2012

Draw Request from Treasury

Dividend Payment to Treasury

1 Amounts may not add due to rounding. 2 Data as of June 30, 2013.

3 Amount does not include the September 2013 dividend obligation of $4.4 billion.
4 Annual amounts represent the total draws requested based on Freddie Macs quarterly net deficits for the periods presented. Draw requests are funded in the subsequent quarter

(e.g., $19 million draw request for 1Q 2012 was funded in 2Q 2012).
5 Represents quarterly cash dividends paid by Freddie Mac to Treasury during the periods presented. Through December 31, 2012, Treasury was entitled to receive cumulative

quarterly cash dividends at the annual rate of 10% per year on the liquidation preference of the senior preferred stock. However, the fixed dividend rate was replaced with a net worth sweep dividend payment beginning in the first quarter of 2013. See the companys Quarterly Report on Form 10 -Q for the quarter ended June 30, 2013 for more information.

17

Deferred tax asset valuation allowance

A deferred tax asset (DTA) is recorded on the companys balance sheet and reflects future deductions against the companys taxable income. The realization of these net DTAs depends on sufficient taxable income in future periods. Valuation allowances are recorded to reduce net DTAs when it is more likely than not that a tax benefit will not be realized. As of June 30, 2013, the company maintains a valuation allowance of $28.6 billion on its net DTAs. The company determines whether a valuation allowance is necessary on its net DTAs considering objective and subjective evidence including, but not limited to, the following:
Objective Evidence Its cumulative income position for the past three years The trend of the companys financial and tax results Its significant tax net operating loss and low income housing tax credit carryforwards Its access to capital under the agreements associated with the conservatorship Subjective Evidence Difficulty in predicting unsettled circumstances related to conservatorship Its estimated 2012 taxable income (loss), which is expected to be breakeven Forecasts of future book and tax income

The companys consideration of evidence requires significant judgments, estimates, and assumptions about inherently uncertain matters. If the housing market continues to improve, the companys positive trend in book and taxable income continues, and the company retains its positive outlook for book and taxable income, then the company may release its valuation allowance in 2013. Any release of the valuation allowance would be recognized in income and the company would expect to report a significant tax benefit and a corresponding increase in net worth in that period. The increase in net worth would result in an increased dividend obligation to Treasury.
18

Purchase Agreement portfolio limits

Mortgage Assets
($ Billions)
1, 2

Indebtedness
($ Billions)

1, 3

$874.8 $780
$650 $558
4 4

$780

$780

$780 $663
4

$650

$650 $521

$650 $553
4

$534

$552

$535

$526

12/31/2012

3/31/2013

6/30/2013

9/30/2013

12/31/2013

12/31/2012 3/31/2013 6/30/2013 9/30/2013 12/31/2013 1/1/2014

Total debt outstanding Indebtedness limit

Mortgage-related investments portfolio ending balance Mortgage-related investments portfolio limit

1 The companys Purchase Agreement with Treasury limits the amount of mortgage assets the company can own and indebtedness it c an incur. Under the Purchase Agreement,

mortgage assets and indebtedness are calculated without giving effect to the January 1, 2010 change in the accounting guidance related to the transfer of financial assets and consolidation of variable interest entities (VIEs). See the companys Quarterly Report on Form 10-Q for the quarter ended June 30, 2013 for more information.
2 Represents the unpaid principal balance (UPB) of the companys mortgage -related investments portfolio. The company discloses its mortgage assets on this basis monthly in its

Monthly Volume Summary reports, which are available on its Web site and in Current Reports on Form 8-K filed with the Securities and Exchange Commission (SEC).
3 Represents the par value of the companys unsecured short -term and long-term debt securities issued to third parties to fund its business activities. The company discloses its

indebtedness on this basis monthly in its Monthly Volume Summary reports, which are available on its Web site and in Current Reports on Form 8-K filed with the SEC.
4 Limit under the Purchase Agreement, as amended on August 17, 2012.

19

Real estate owned1

Property Inventory 2Q 2013 Activity
((Number of Properties)
16,420

Geographic Distribution2 Based on Number of Properties in Inventory

Number of Properties 25,000 20k

20,000

(19,766)
15,000

18k

47,974

44,628
10,000 5k

12k 12k

6k

3/31/13 Inventory

Acquisitions

Dispositions

6/30/13 Inventory

5,000

5k

6k

5k

5k

Historical Trend Ending Property Inventory

Number of Properties 70,000 60,000 50,000

Northeast

Southeast

North Central

Southwest

West

3/31/2013

6/30/2013

In 2Q13 REO dispositions continued to exceed the volume of REO acquisitions. The volume of our single-family REO acquisitions in recent periods has been significantly affected by the length of the foreclosure process and a high volume of foreclosure alternatives, which result in fewer loans proceeding to foreclosure, and
61k
60k 61k 59k 53k 51k

thus fewer properties transitioning to REO. The North Central region comprised 40 percent of our REO property inventory at
49k 48k 45k

June 30, 2013. This region generally has experienced more challenging economic conditions, and includes a number of states with longer foreclosure timelines due to the local laws and foreclosure process in the region. Seven of the nine states in the North Central region require a judicial foreclosure process. Foreclosures generally

40,000
30,000 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013

take longer to complete in states where judicial foreclosures (those conducted under
the supervision of a court) are required than in states where non-judicial foreclosures are permitted.

1 Includes single-family and multifamily REO. Multifamily ending property inventory was 6 properties as of March 31, 2013 and 5 properties as of June 30, 2013. 2 Region designation: West (AK, AZ, CA, GU, HI, ID, MT, NV, OR, UT, WA); Northeast (CT, DE, DC, MA, ME, MD, NH, NJ, NY, PA, RI, VT, VA, WV); Southeast (AL, FL, GA, KY, MS,

20

NC, PR, SC, TN, VI); North Central (IL, IN, IA, MI, MN, ND, OH, SD, WI); and Southwest (AR, CO, KS, LA, MO, NE, NM, OK, TX, WY).

Performance of single-family modified loans

Quarterly Percentages of Modified Single-Family Loans (HAMP and non-HAMP) 1

% Current and Performing Quarter of Loan Modification Completion 2 Time Since Modification 3 to 5 months 6 to 8 months 9 to 11 months 12 to 14 months 15 to 17 months 18 to 20 months 21 to 23 months 24 to 26 months 2Q 2011 83% 77% 76% 73% 69% 68% 68% 66% 3Q 2011 81% 79% 75% 71% 69% 69% 67% N/A 4Q 2011 86% 80% 75% 73% 73% 71% N/A N/A 1Q 2012 85% 80% 77% 76% 74% N/A N/A N/A 2Q 2012 87% 83% 81% 78% N/A N/A N/A N/A 3Q 2012 84% 82% 78% N/A N/A N/A N/A N/A 4Q 2012 85% 81% N/A N/A N/A N/A N/A N/A 1Q 2013 86% N/A N/A N/A N/A N/A N/A N/A

1 Represents the percentage of loans that are current and performing (no payment is 30 days or more past due) or have been paid in full. Excludes loans in modification trial periods. 2 Loan modifications are recognized as completed in the quarterly period in which the servicer has reported the modification as effective and the agreement has been accepted by the

company. For loans that have been remodified (e.g., where a borrower has received a new modification after defaulting on the prior modification) the rates reflect the status of each modification separately. For example, in the case of a remodified loan where the borrower is performing, the previous modification would be presented as being in default in the applicable period.

21

Repurchase requests
The UPB of outstanding repurchase requests issued to our single-family seller/servicers based on breaches of representations and warranties increased from $3.0 billion as of December 31, 2012 to $3.2 billion as of June 30, 2013.1
Trend in Repurchase Requests Outstanding
UPB $ Billions 6 5 34% 4 3 2 1 0
12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012

YTD June 2013 Repurchase Request Activity

Percent (%) 50 45% 45 40 35 30 25 20 15 $3.2 10 5 0

$ Billions
$4.9

39%

41%

($1.7)

20% $3.6 $4.2

20% $3.8 $2.7

$3.0

($2.9) $3.0 $3.2 New Requests Issued Requests 4 Collected Requests 5 Cancelled UPB of outstanding requests at 6/30/2013

6/30/20132

Outstanding repurchase requests Requests outstanding more than 4 months

3

UPB of outstanding requests at 12/31/2012

1 The amount the company expects to collect on outstanding requests is significantly less than the unpaid principal balance (UPB) of the loans subject to repurchase requests primarily

because many of these requests are likely to be satisfied by reimbursement of the companys realized credit losses by seller/servicers, or rescinded in the course of the contractual appeals process. Based on historical loss experience and the fact that many of these loans are covered by credit enhancements (e.g., mortgage insurance), Freddie Mac expects the actual credit losses experienced by the company should it fail to collect on these repurchase requests to also be less than the UPB of the loans.

2 Approximately $1.2 billion of the total amount of repurchase requests outstanding at June 30, 2013 were issued due to mortgage insurance rescission or mortgage insurance claim denial. 3 Repurchase requests outstanding more than four months include repurchase requests for which appeals were pending. 4 Requests collected are based on the UPB of the loans associated with the repurchase request, which in many cases is more than the amount of payments received for reimbursement of

losses for requests associated with foreclosed mortgage loans, negotiated settlements and other alternative remedies.
5 During the first half of 2013, repurchase requests related to $2.9 billion of UPB of loans were cancelled, primarily as a result of the servicer providing missing documentation or a successful

appeal of the request. In addition, requests cancelled includes $80 million of other items that affect the UPB of the loan while the repurchase request is outstanding, such as a change in UPB due to payments made on the loan, as well as requests deemed uncollectible due to the insolvency or other failure of the counterparty. 22

U.S. Housing Market

Freddie Mac 2013

U.S. single-family mortgage debt in relation to total value of housing stock

$ Trillions 25

20

Value of U.S. Housing Stock1

U.S. Home Equity 2 Record: $13.5 Trillion (2006)

15

$9.1 Trillion

10

5
U.S. Single-family Mortgage Debt Outstanding3

$9.4 Trillion

0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
1 Value of U.S. housing stock: Federal Reserve Boards Flow of Funds Accounts, June 6, 2013, Table B.100 (line #49). This figure includes homes with and without underlying

mortgages.
2 3

U.S. home equity is the difference between the value of the U.S. housing stock and the amount of U.S. single-family mortgage debt outstanding. U.S. single-family mortgage debt outstanding: Federal Reserve Boards Flow of Funds Accounts, June 6, 2013, Table L.100 (line #26). Source: Federal Reserve Boards Flow of Funds Accounts. Data as of March 31, 2013.

24

U.S. nominal house prices

Annual Changes in National House Prices
Percent
16 14

12
10 8 6 4

3.9%: 1952-2012 Average Growth Rate

2
0 -2 -4 -6

-8
-10 -12

- Recession Year

1962

1968

1952

1954

1956

1958

1960

1964

1966

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

Note: Growth rates for 1952 to 2012 are calculated using the annual average of certain third party and Freddie Mac indices. Sources: E. H. Boeckh and Associates, Bureau of Labor Statistics, U.S. Census Bureau and Freddie Mac.

2012
25

National home prices have experienced a cumulative decline of 16% since June 20061
Percent (%) 6 5.2 4.7 4.1 4 2.5 2.4 2 2.9 2.6 2.7 1.2 1.1 0.7 (0.0) (0.8) (2) (1.6) (2.1) (3.1) (4) (4.3) (6)
1Q 2004 1Q 2005 1Q 2006 1Q 2007 1Q 2008

5.2

2.2
1.3 0.4 1.1 0.5

1.3

0.8 0.8

0 (0.7)

0.1 (0.4)

(1.3)(1.1)
(1.6) (2.6) (2.5) (2.8) (2.1)

(2.8)

(5.4)
1Q 2009 1Q 2010 1Q 2011 1Q 2012 1Q 2Q 2013 2013

1 National home prices use the Freddie Mac House Price Index for the U.S., which is a value-weighted average of the state indexes where the value weights are based on Freddie Macs

single-family credit guarantee portfolio. Other indices of home prices may have different results, as they are determined using different pools of mortgage loans and calculated under different conventions than Freddie Macs. The Freddie Mac House Price Index for the U.S . is a non-seasonally adjusted monthly series; quarterly growth rates are calculated as a 3-month change based on the final month of each quarter. Seasonal factors typically result in stronger house-price appreciation during the second and third quarters. Historical quarterly growth rates change as new data becomes available. Values for the most recent periods typically see the largest changes. Cumulative decline calculated as the percent change from June 2006 to June 2013. Source: Freddie Mac.

26

Home Price Performance By State June 2006 to June 20131 United States -16%
NH -15% WA -14% OR 1% MT -16% ID 33% ND 11% SD 1% NE 0% KS 8% OK -3% VT-20% -15% WI -23% MI -12% -12% NY -10% ME MA

-16% MN

6% WY

-26% CA

-45% NV

-1% UT

4% CO

-32% AZ

-12% NM

6% AK

13% TX
-4% HI

-7% 1% PA IA -13% -21% -24% -5% OH 1% IL IN WV -14% -14% VA KY -1% MO NC -7% TN -3% -9% -1% AR -19% SC -9% -4% GA MS AL 2% LA -37% FL

RI -29% CT -19%
NJ -21%

DE -20% MD DC 20%

0% -12 to -1% -20 to -13% -21%

1 The Freddie Mac House Price Index for the U.S. is a value-weighted average of the state indexes where the value weights are based on Freddie Macs single-family credit

guarantee portfolio. Other indices of home prices may have different results, as they are determined using different pools of mortgage loans and calculated under different conventions. The Freddie Mac House Price Index for the U.S. is a non-seasonally adjusted monthly series. Source: Freddie Mac

27

Home Price Performance By State June 2012 to June 20131 United States 9%
NH 11% WA 14% OR 9% ID 3% WY 23% CA 30% NV 13% UT 7% MT 8% ND 6% SD 4% NE 3% KS 5% OK 4% ME 9% MN
2%

2% WI

1% VT 3% NY 6% 12% MI 4% 4% OH IN KY 3% 2% PA
6%

MA

2% IA 5% IL 3% MO 4% AR 4% LA

RI 2% CT 2% NJ 3% DE 1% MD DC 14%

10% CO

2% 5% WV VA

19% AZ

2% NM

NC 4% TN 5% 4% SC 3% 12% 6% GA MS AL 14% FL

4% AK 10% HI

7% TX

10% 5 to 9% 3 to 4% 0 to 2%

1 The Freddie Mac House Price Index for the U.S. is a value-weighted average of the state indexes where the value weights are based on Freddie Macs single-family credit

guarantee portfolio. Other indices of home prices may have different results, as they are determined using different pools of mortgage loans and calculated under different conventions. The Freddie Mac House Price Index for the U.S. is a non-seasonally adjusted monthly series. Source: Freddie Mac

28

Vacant housing oversupply

Excess Vacant Homes (Numbers in Millions)

2.0 1.8
Excess for-Rent Inventory Excess for-Sale Inventory

1.6
1.4 1.2 1.0 0.8

0.6
0.4 0.2 0.2 0.0 -0.2 2000 2001 2002 2003

2004 2005 2006

2007

2008 2009 2010 2011 2012 2013

29

Source: Freddie Mac calculations using U.S. Census Bureau data, 2013 data as of June 30, 2013. Negative values reflect undersupply. The under/oversupply of vacant housing was estimated based on the average vacancy rate from 1994Q1 to 2003Q4.

Inventories of homes for sale

Months Supply of Homes for Sale 15
14 13 12 11 10 9 8 7 6 5 4 3 2 1

Existing Homes

New Homes

0 1976

1979

1982

1985

1988

1991

1994

1997

2000

2003

2006

2009

2013

- Recession Year
Sources: U.S. Census Bureau and National Association of Realtors. 2013 data as of July 31, 2013.

30

Excess unsold homes for sale

Numbers in Thousands

Excess Unsold Homes for Sale

Annual Data Quarterly Data

1,000 900 800 700 600 500 400 300 200 100 0 -100
1996

Q1

Q4 Q1

Q4 Q1

Q4 Q1

Q4 Q1 Q4 Q1

Q4 Q1

Q4 Q1

Q4 Q1

2000 2004 2005

2006

2007

2008

2009

2010

2011

2012

2013

Note: The excess unsold homes were estimated using a vacancy rate of 1.7%, which represents the average vacancy rate from 1996Q1 to 2005Q4. Source: U.S. Census Bureau.

31

Single-family mortgage originations

$ Billions 4,000
Refinance Originations Home Purchase Originations

3,000

$2.1T

2,000

$1.8T

1,000

0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Est. Est.
Source: U.S. Department of Housing and Urban Development and Federal Financial Institutions Examination Council. 2012 and 2013 data based on the August 2013 estimate of Freddie Macs Office of the Chief Economist. Note: Estimates and forecasts by the Office of the Chief Economist do not necessarily represent the views of Freddie Mac or its management, should not be construed as indicating Freddie Mac's business prospects or expected results, and are subject to change without notice.

32

GSE purchases under the Home Affordable Refinance Program

# of Loans (Thousands) 30-Year Fixed Mortgage Rate1 (Percent)

140 120

5.5

5.0 100 80 60 40 3.5 20 0 Oct-09 3.0 Apr-10 Oct-10 Apr-11 Oct-11 Apr-12 Oct-12 Apr-13 4.5

4.0

Freddie Mac 2

Fannie Mae 3

30-Year Fixed Mortgage Rate

1 Based on Freddie Macs Primary Mortgage Market Survey rate for the last week in the period, which represents the national ave rage mortgage commitment rate to a qualified

borrower exclusive of any fees and points required by the lender on conforming mortgages with LTV ratios of 80%.
2 The Relief Refinance MortgageSM initiative is Freddie Macs implementation of the Home Affordable Refinance Program (HARP). 3 Fannie Maes Refi PlusTM initiative includes loans refinanced under HARP.

Source: Federal Housing Finance Agency, Freddie Mac. 2013 data as of June 30, 2013.

33

Housing affordability

Index
200 190 180 170 160 150 140 130 120 110 100 90 80 1991

182

Average = 136

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

Note: An index of 100 indicates a median income family has exactly enough income to qualify for a mortgage on a median-priced home. An index above 100 signifies that a median income family has more than enough income to qualify for a mortgage on a median-priced home. Data seasonally adjusted. Source: National Association of Realtors. 2013 data as of June 30, 2013.

34

Jumbo-conforming spreads
Effective Jumbo-conforming Interest Rate Spread
Basis points 200 180 160 140
Record: 184 bps 12/19/08 Most recent: 20 bps 08/30/13

120
100 80 60 40

20
0

2008

2012

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2009

2010

2011

Note: Effective spread adds fees and points to the interest rate. Source: HSH Associates. Data as of August 30, 2013.

2013
35

30-year fixed mortgage rates

Percent 8.5 8.0 7.5 7.0 6.5 6.0 5.5 5.0 4.5 4.0 3.5 Jan- May- Sep08 08 08
4.85% 4.75% 4.65%

Jan- May- Sep- Jan09 09 09 10

Jun10

Oct10

Feb11

Jun11

Oct11

Feb12

Jun- Nov- Mar- Aug12 12 13 13

30-Year Conforming
Note: Points and fees are added to interest rates. Source: HSH Associates. Data as of August 30, 2013.

30-Year Conforming Jumbo

30-Year Non-Conforming Jumbo

36

Credit Guarantee Business

Freddie Mac 2013

Total mortgage portfolio

$ Billions
2,400 $2,207 $2,251 $2,165 $2,075

2,200
2,000 1,800 1,600 1,400 $1,505 $1,684 $1,827

$2,103

$1,956

$1,942

1,200
1,000 800 600 400 200 0 2004 1 2005 2006 2007 2008 2009 2010 2011 2012
$521

$1,421
$1,610

$189 $332

2013

Outstanding Freddie Mac Mortgage-Related Securities and Other Guarantee Commitments Mortgage-related Investments Portfolio (PCs, REMICs and Other Structured Securities) Mortgage-related Investments Portfolio (Non-Freddie Mac Mortgage-Related Securities & Mortgage Loans)
1

Includes Freddie Mac mortgage-related securities and other guarantee commitments Freddie Mac held in connection with PC market-making and support activities accomplished through the Securities Sales & Trading Group business unit and the Money Manager program. These programs ceased in the fourth quarter of 2004. Note: Totals may not add due to rounding. Source: Freddie Mac. 2013 data as of July 31, 2013. Figures for 2013 are subject to change.

38

Freddie Macs GSE market share

Freddie Mac share of PC/MBS issuances

50

45

43%

43% 40% 37% 38% 38%

40

35

35%

35%

30
2006 2007 2008 2009 2010 2011 2012 YTD 2013

Source: Freddie Mac and Fannie Mae Monthly Volume Summaries. Freddie Mac Monthly Volume Summary figures for 2013 are subject to change. 2013 data as of July 31, 2013.

39

Freddie Macs single-family credit guarantee portfolio by region1

North Central

18%
West 28%

Northeast

26% Southwest
11% Southeast 17%

1 Based on the unpaid principal balance of the single-family credit guarantee portfolio, which includes unsecuritized single-family mortgage loans held by the company on its

consolidated balance sheets and those underlying Freddie Mac mortgage-related securities, or covered by the company's other guarantee commitments. Source: Freddie Mac. Data as of June 30, 2013.

40

Mortgage market and Freddie Mac serious delinquency rates

Single-family Serious Delinquency Rates
32 28

Seriously Delinquent (%)

24 20 16 12 8
5.88%

19.05%

4 0

3.50% 2.79%

Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- June08 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12 12 13 13 Total Mortgage Market
1

Prime

Subprime

Freddie Mac

1 Source: National Delinquency Survey from the Mortgage Bankers Association. Categories represent first lien single-family loans. 2 See MD&A RISK MANAGEMENT Credit Risk Mortgage Credit Risk Single-Family Mortgage Credit Risk Credit Performance Delinquencies in Freddie Macs Form 10-K for

the year ended December 31, 2012, for information about the companys reported delinquency rates.

41

Estimated current LTV ratio of our single-family credit guarantee portfolio

Weighted Average Estimated Loan-to-Value1 Ratio of Our Single-family Credit Guarantee Portfolio Adjusted to Reflect Current Market Values
Weighted Average Estimated Current LTV Ratio (Percent)

80 77% 75 72% 70

80% 78% 75% 73%

65

63%

60 56%

57%

55
2005 2006 2007 2008 2009 2010 2011 2012 YTD 2013
42
1 Based on the unpaid principal balance of the single-family credit guarantee portfolio, excluding Other Guarantee Transactions for which the loan characteristics data is not available.

Current LTV ratios are management estimates, which are updated on a monthly basis. Current market values are estimated by adjusting the value of the property at origination based on changes in the market value of homes in the same geographical area since origination. Source: Freddie Mac. 2013 data as of June 30, 2013.

Risk characteristics of our single-family credit guarantee portfolio

Estimated Current Loan-to-Value Ratio1,2 (Percent)
Above 120 5% Above 100 to 120 8%

Credit Score2,3
620 to 659 Less than 620 3% 6%

Above 90 to 100 8%

60 and below 30%

660 to 699 13%

Above 80 to 90 13%

700 to 739 21% 740 and above 57%

Above 60 to 70 16% Above 70 to 80 20%

1 Current LTV ratios are management estimates, which are updated on a monthly basis. Current market values are estimated by adjusting the value of the property at origination based

on changes in the market value of homes in the same geographical area since origination.
2 Based on the unpaid principal balance of the single-family credit guarantee portfolio, excluding Other Guarantee Transactions for which the loan characteristics data are not available. 3 Credit score data is at the time of mortgage loan origination and is based on FICO scores. Excludes less than 1% of loans in the portfolio because the FICO scores at origination were

not available at June 30, 2013. Source: Freddie Mac. Data as of June 30, 2013.

43

Composition of our total mortgage portfolio

Total Mortgage Portfolio Purchases Seven Months Ended July 31, 2013 Total Mortgage Portfolio As of July 31, 2013 $1.8 Trillion
20-year Fixed Rate 5% 15-year Fixed Rate 17%
15-year Fixed Rate 23% 30-year Fixed Rate 63% ARMs 3% Multifamily Conventional Other 5% <1%

$316 Billion
20-year Fixed Rate 5%

IO 2% 30-year Fixed Rate 61% ARMs 4% Multifamily Conventional 5% Other 8%

Note: Excludes non-Freddie Mac mortgage-related securities. Percentages may not add up to 100% due to rounding. Source: Freddie Mac.

44

Credit quality of single-family credit guarantee portfolio purchases

2009 Weighted Average Original LTV Ratio 1 Relief refinance (includes HARP) All other Total purchases Weighted Average Credit Score 2 Relief refinance (includes HARP) All other Total purchases 738 757 756 747 758 755 744 759 755 740 762 756 731 760 753 729 757 750 80% 66% 67% 77% 67% 70% 77% 67% 70% 97% 68% 76% 93% 68% 74% 91% 70% 75% 2010 2011 2012 1Q 2013 2Q 2013

2009 Purchase of Relief Refinance Mortgages > 80% LTV (HARP loans) 3 $ Billions % of single-family credit guarantee portfolio purchases $19.6 4%

2010

2011

2012

1Q 2013 $21.5 16%

2Q 2013 $20.3 16%

$47.9 12%

$39.7 12%

$86.9 20%

1 Original LTV ratios are calculated as the unpaid principal balance (UPB) of the mortgage Freddie Mac guarantees including the credit-enhanced portion, divided by the lesser of the

appraised value of the property at the time of mortgage origination or the mortgage borrowers purchase price. Second liens not owned or guaranteed by Freddie Mac are e xcluded from the LTV ratio calculation. The existence of a second lien mortgage reduces the borrowers equity in the home and, therefore, can increase the risk of default. 2 Credit score data is based on FICO scores at the time of origination and may not be indicative of the borrowers creditworthiness at June 30, 2013. FICO scores can range between approximately 300 to 850 points. 3 HARP is the portion of the companys relief refinance initiative targeted at borrowers with current LTV ratios above 80%. In April 2013, HARP was extended by two years to December 31, 2015.

45

Loan loss reserves

Period End Balances $ Billions $45.0
$39.1 $39.7 $3.6 $3.2 $39.5

$ Billions $6.0 $5.0

$38.3
$35.8 $33.8

$4.0
$3.1

$35.0 $30.9 $2.5

$28.6 $2.1 $26.4 $1.9

$3.0
$2.0 $1.0

$2.5

$3.3 $3.2 $2.6 $1.8

$2.9

$3.0

$25.0

$0.6

$0.2
$0.0 ($1.0) ($2.0) 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 Net Charge-offs
1

$15.0 ($0.7) ($0.5) ($0.6) $5.0

Provision (Benefit)

Loan Loss Reserves

1 Includes amounts related to certain loans purchased under financial guarantees and reflected within other expenses on the companys co nsolidated statements of comprehensive

income.
2 Consists of the allowance for loan losses and the reserve for guarantee losses.

46

Single-family 2Q 2013 credit losses and REO by region and state

Total Portfolio UPB 1 Seriously Delinquent Loans Serious Delinquency ($ Billions) Region 1 2 3 4 5 6 West Northeast North Central Southeast Southwest Total
6

REO Acquisitions & Balance 4 2Q 2013 Acquisitions ($ Millions) REO Inventory ($ Millions)

Credit Losses5

% of Total

UPB ($ Millions)

% of Total

Rate (% )

% of Total Inventory

($ Millions)

% of Total

$459 427 292 275 193 $1,646

28% 26 18 17 11 100%

$11,314 17,620 6,881 13,553 2,779 $52,147

22% 34 13 26 5 100%

2.17% 3.55% 2.12% 4.19% 1.47% 2.79%

$367 362 628 827 213 $2,397

$1,044 1,000 2,400 1,778 605 $6,827

15% 15 35 26 9 100%

$480 242 376 607 58 $1,763

27% 14 21 35 3 100%

State7 7 8 9 10 11 12 13 14 15 California Florida Illinois Washington Ohio Michigan Nevada All other Total $269 93 83 55 46 46 16 1,038 $1,646 16% 6 5 3 3 3 1 63 100% $5,260 9,501 3,372 1,824 1,031 720 1,350 29,089 $52,147 10% 18 6 4 2 1 3 56 100% 1.71% 8.18% 3.43% 2.93% 2.33% 1.54% 6.41% 2.45% 2.79% $133 537 232 77 106 106 27 1,179 $2,397 $461 1,043 891 194 296 557 56 3,329 $6,827 7% 15 13 3 4 8 1 49 100% 246 496 190 65 63 55 85 563 $1,763 14% 28 11 4 3 3 5 32 100%

1 Based on the unpaid principal balance (UPB) of the single-family credit guarantee portfolio at June 30, 2013. 2 UPB amounts exclude $487 million of Other Guarantee Transactions since these securities are backed by non-Freddie Mac issued securities for which loan characteristic data was

not available.
3 Based on the number of loans that are three monthly payments or more past due or in the process of foreclosure. 4

Based on the UPB of loans at the time of REO acquisition.

5 Consist of the aggregate amount of charge-offs, net of recoveries, and REO operations expense for 2Q 2013. 6 Region designation: West (AK, AZ, CA, GU, HI, ID, MT, NV, OR, UT, WA); Northeast (CT, DE, DC, MA, ME, MD, NH, NJ, NY, PA, RI, VT, VA, WV); Southeast (AL, FL, GA, KY, MS,

NC, PR, SC, TN, VI); North Central (IL, IN, IA, MI, MN, ND, OH, SD, WI); and Southwest (AR, CO, KS, LA, MO, NE, NM, OK, TX, WY).
7 States presented are those with the highest credit losses during the three months ended June 30, 2013.

47

Single-family credit guarantee portfolio characteristics1

Attribute 1 2 3 4 5 6 7 8 9 10 11 UPB $ Billions Percent of Total Portfolio Average UPB per loan Fixed Rate (% of total portfolio) Owner Occupied Original Loan-to-Value (OLTV) OLTV > 90% Current Loan-to-Value (CLTV) CLTV > 90% CLTV > 100% CLTV > 110% FICO < 6204 Book Year5 14 15 16 17 18 19 20 21 22 23 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 and prior 12% 24% 12% 12% 10% 4% 6% 4% 5% 11% 13% 2.79% 0% 0% 0% 0% 0% 7% 30% 27% 20% 16% 13% 10.69% 0% 0% 0% 1% 1% 9% 36% 28% 21% 4% 10% 14.56% 0% 0% 0% 0% 0% 0% 2% 10% 59% 29% 16% 14.28% 6% 10% 5% 5% 4% 6% 20% 11% 10% 23% 24% 10.96% 6% 10% 6% 6% 5% 7% 16% 11% 11% 22% 21% 8.02% 15% 35% 12% 11% 5% 3% 6% 3% 2% 8% 49% 3.78% 10% 22% 7% 7% 4% 3% 18% 6% 5% 18% 59% 10.64% Total Portfolio as of June 30, 2013 $1,646 100% $152,797 93% 90% 74% 15% 73% 21% 13% 8% 739 3% Option Alt-A $64 4% $152,877 63% 82% 73% 4% 92% 52% 39% 29% 712 5%
2

FICO < 620 $49 3% $126,137 94% 95% 81% 26% 86% 42% 30% 20% 585 100%
4

FICO 620 - 659 $99 6% $132,619 93% 94% 79% 22% 84% 38% 26% 18% 642 0%
4

Original LTV > 90% $244 15% $168,148 98% 91% 106% 100% 103% 72% 45% 29% 724 5%

FICO < 620 & Original LTV > 90% 4 $13 1% $134,734 98% 96% 106% 100% 107% 73% 55% 38% 583 100%

Interest-only $41 2% $228,749 20% 81% 74% 3% 100% 62% 47% 33% 718 3%

ARM $7 0% $202,641 0% 76% 71% 2% 94% 51% 38% 28% 711 4%

12 Average FICO Score4 13

24 % of Loans with Credit Enhancement 25 % Seriously Delinquent6

1 Portfolio characteristics are based on the unpaid principal balance (UPB) of the single-family credit guarantee portfolio. Approximately $1 billion in UPB for Other Guarantee Transactions

is included in total UPB and percentage seriously delinquent but not included in the calculation of other statistics since these securities are backed by non-Freddie Mac issued securities for which loan characteristic data was not available.
2 For a description of Alt-A, see the Glossary in the companys Quarterly Report on Form 10-Q for the quarter ended June 30, 2013. 3 Beginning September 1, 2010, the company fully discontinued purchases of interest-only loans. 4 Represents the FICO score of the borrower at loan origination. The company estimates that less than 1% of loans within the portfolio are missing origination FICO scores and as such are

excluded.
5 Indicates year of loan origination. Calculated based on the loans remaining in the portfolio as of June 30, 2013, rather than all loans originally guaranteed by the company and originated in

the respective year. Each Book Year category represents the percentage of loans referenced in line 1 of the same vertical column.
6 Based on the number of loans that are three monthly payments or more past due or in the process of foreclosure.

48

Note: Individual categories are not mutually exclusive, and therefore are not additive across columns.

Single-family credit profile by book year and product feature1

Total Portfolio as of June 30, 2013 $1,646 74% 15% 73% 13% 8%
3

Book Year 2 2013 $202 75% 18% 76% 11% 7% 751 1% 3% 0% 8% 7% 2012 $398 78% 22% 73% 11% 8% 754 1% 4% 0% 6% 6% 2011 $193 72% 15% 65% 4% 2% 751 1% 7% 0% 5% 6% 2010 $197 72% 14% 67% 4% 2% 750 1% 4% 0% 4% 6% 2009 $161 71% 8% 67% 4% 1% 748 1% 1% 0% 3% 7% 2008 $61 74% 10% 84% 22% 12% 716 5% 7% 7% 8% 11% 2007 $97 77% 16% 101% 47% 34% 697 10% 11% 15% 7% 11% 2006 $74 75% 9% 98% 43% 31% 703 8% 18% 16% 6% 12% 2005 $83 73% 7% 83% 24% 16% 710 6% 21% 10% 5% 12% 2004 and prior $180 72% 10% 53% 4% 2% 712 6% 11% 1% 5% 8%

Attribute 1 2 3 4 5 6 7 8 9 10 UPB $ Billions Original Loan-to-Value (OLTV) OLTV > 90% Current Loan-to-Value (CLTV) CLTV > 100% CLTV > 110% Average FICO Score FICO < 620
3

739 3% 7% 2% 5% 8%

Adjustable-rate Interest-only4

11 Investor 12 Condo Geography5 13 14 15 16 17 18 19 20 California Florida Illinois Washington Ohio Michigan Nevada All other
6

16% 6% 5% 3% 3% 3% 1% 63% 13% 2.79%

20% 4% 5% 3% 3% 3% 1% 61% 15% 0.00%

20% 4% 5% 3% 3% 3% 1% 61% 13% 0.11%

16% 4% 5% 4% 3% 2% 0% 66% 10% 0.35%

15% 4% 6% 4% 3% 2% 0% 66% 8% 0.60%

12% 4% 5% 4% 2% 2% 1% 70% 8% 1.00%

15% 8% 5% 4% 2% 1% 1% 64% 25% 7.13%

16% 10% 5% 3% 2% 2% 2% 60% 26% 12.00%

15% 12% 5% 3% 2% 2% 2% 59% 15% 10.95%

15% 11% 5% 2% 3% 3% 2% 59% 12% 7.07%

12% 8% 5% 2% 4% 5% 1% 63% 12% 3.26%

21 % of Loans with Credit Enhancement 22 % Seriously Delinquent

1 Portfolio characteristics are based on the unpaid principal balance (UPB) of the single-family credit guarantee portfolio. Approximately $1 billion in UPB for Other Guarantee Transactions

is included in total UPB and percentage seriously delinquent but not included in the calculation of other statistics since these securities are backed by non-Freddie Mac issued securities for which loan characteristic data was not available.
2 Indicates year of loan origination. Calculated based on the loans remaining in the portfolio as of June 30, 2013, rather than all loans originally guaranteed by the company and originated

in the respective year.

3 Represents the average of the borrowers FICO scores at origination. The company estimates that less than 1% of loans within the portfolio are missing FICO scores and as such are

excluded.
4 Beginning September 1, 2010, the company fully discontinued purchases of interest-only loans. 5 States presented are those with the highest percentage of credit losses during the three months ended June 30, 2013. 6 Based on the number of loans that are three monthly payments or more past due or in the process of foreclosure.

49

Single-family cumulative foreclosure transfer and short sale rates1 by book year
Cumulative Foreclosure Transfer and Short Sale Rate

11.00% 10.00% 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00%
2013
2012

2007 2006

2005

2008 2004 2003 2011 2010 2009

0.00%
Yr1 Q1 Yr1 Q3 Yr2 Q1 Yr2 Q3

Yr3 Q1

Yr3 Q3

Yr4 Q1

Yr4 Q3

Yr5 Q1

Yr5 Q3

Yr6 Q1

Yr6 Q3

Yr7 Q1

Yr7 Q3

Yr8 Q1

Yr8 Q3

Yr9 Q1

Yr9 Yr10 Yr10 Yr11 Yr11 Q3 Q1 Q3 Q1 Q2

Quarter Post Origination

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

1 Rates are calculated for each year of origination as the number of loans that have proceeded to foreclosure transfer or short sale and resulted in a credit loss, excluding any

subsequent recoveries, divided by the number of loans originated in that year that were acquired in the companys single-family credit guarantee portfolio. Includes Other Guarantee Transactions where loan characteristic data is available.

50

Investment Management Business

Freddie Mac 2013

Mortgage-related investments portfolio

UPB $ Billions
$1,000 $900 $900 $867 $830 $800 $784 $810

$755
$729 $700 $697 $653 $600 $650

$558

$553

$500

Portfolio Balance at 7/31/2013: $521 Billion

$400 3/31/2009 6/30/2009 9/30/2009 12/31/2009 12/31/2010 12/31/2011

1

12/31/2012

12/31/2013

Mortgage-related investments portfolio ending balance

Mortgage-related investments portfolio limit (changes on Dec. 31 annually)

2,3

1 Represents the unpaid principal balance (UPB) of the companys mortgage -related investments portfolio. The mortgage-related investments portfolio is determined without giving effect to

the January 1, 2010 change in accounting standards related to the transfer of financial assets and consolidation of variable interest entities (VIEs).
2 The mortgage-related investments portfolio limit as of December 31, 2013 under the Purchase Agreement, as amended on August 17, 2012. 3 Under FHFA regulation and the Purchase Agreement with Treasury, as amended on August 17, 2012, the companys mortgage -related investments portfolio is subject to a cap beginning

in 2013 that decreases by 15% each year until the portfolio reaches $250 billion. Prior to the August 17, 2012 amendment, the portfolio was subject to a cap that decreased by 10% each year. Source: Freddie Mac. 2013 data as of July 31, 2013. Figures for 2013 are subject to change.

52

Mortgage-related investments portfolio composition

Mortgage-related Investments Portfolio $521 billion
Mortgage Loans 39% ($201.7 B)

Agency 4% ($20.1 B) Non-Agency Backed by Subprime Loans 8% ($41.9 B) PCs, REMICs and Other Structured Securities 35% ($184.6 B) Non-Agency Backed by Alt-A and Other Loans 3% ($13.1 B) Non-Agency Backed by Option ARM Loans Other 2% Non-Agency ($11.2 B) 9% ($48.5 B)

Note: Dollars and percentages may not add due to rounding. Credit ratings for most non-agency mortgage-related securities are designated by no fewer than two nationally recognized statistical rating organizations. Approximately 20% of total non-agency mortgage-related securities held at June 30, 2013 were AAA-rated based on the unpaid principal balance and the lowest rating available. The mortgage-related investments portfolio is determined without giving effect to the January 1, 2010 change in accounting standards related to the transfer of financial assets and consolidation of variable interest entities (VIEs). Source: Freddie Mac. Data based on unpaid principal balances as of June 30, 2013 and excludes mortgage loans and mortgage-related securities traded, but not yet settled.

53

Freddie Macs mortgage-related investments portfolio product types

Mortgage-Related Investments Portfolio1

Non-Freddie Mac MBS1

Subprime 31%

Non-Freddie Mac MBS 26%

Mortgage Loans 39%

Fannie Mae 15%

CMBS 32%
Freddie Mac Multi-class REMICs and Other Structured Securities 12%

Alt-A & Other 10%

Freddie Mac Single-class PCs 23%

Ginnie Mae <1%

Option ARM 8%

Obligations of State and Political Manufactured Subdivisions Housing 3% 1%

1 Based on unpaid principal balances and excludes mortgage-related securities traded, but not yet settled. The mortgage-related investments portfolio is determined without giving

effect to the January 1, 2010 change in accounting standards related to the transfer of financial assets and consolidation of variable interest entities (VIEs). Note: Percentages may not add due to rounding.

54

Source: Freddie Mac. Data as of June 30, 2013

Interest-rate risk measures

Average Monthly PMVS-Level1

$ Millions
600 500

Average Monthly Duration Gap2

Months

400
300 200 100 0

6 5 4 3 $371 $363 2 $355 $359 1 $301 $286 $263 0 $255 $253 (1) $204 $205 $203 (2) (3) (4) $33 (5) (6) Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July 12 12 12 12 12 12 13 13 13 13 13 13 13

Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May June July 12 12 12 12 12 12 13 13 13 13 13 13 13

1 PMVS is an estimate of the change in the market value of Freddie Macs net assets from an instantaneous 50 basis point shock to interest rates, assuming no rebalancing actions

are undertaken and assuming the mortgage-to-LIBOR basis does not change. PMVS-Level or PMVS-L measures the estimated sensitivity of the companys portfolio market value to parallel movements in interest rates.
2 Duration gap measures the difference in price sensitivity to interest rate changes between Freddie Macs assets and liabiliti es, and is expressed in months relative to the market

value of assets. Source: Freddie Mac. 2013 data as of July 31, 2013. Figures for 2013 are subject to change.

55

Multifamily Business

Freddie Mac 2013

Multifamily market rental vacancy rates

Percent 9 8 7 6 5 4 3 2 1 0 1990 1993 1997 2000 2004 2007 2011
4.3%

2013

Source: Reis U.S. Metro data. 2013 data as of June 30, 2013.

57

Apartment price index vs. Freddie Mac house price index

U.S. Property Value Index (2000 = 100)

170

160
150 140 130 120 110 100 90

Freddie Mac House Price Index1 16% Down 8% Down

NCREIF Apartment Index

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
1 The Freddie Mac House Price Index for the U.S. is a value-weighted average of the state indexes where the value weights are base d on Freddie Macs single-family credit

guarantee portfolio. Other indices of home prices may have different results, as they are determined using different pools of mortgage loans and calculated under different conventions. Source: Freddie Mac House Price Index, National Council of Real Estate Investment Fiduciaries. 2013 data as of June 30, 2013.

58

Multifamily total market originations

$Billions 175 Multifamily Mortgage Originations (Billions of Dollars) Forecast $160 150 $145 $150

125

100

75

50

25

0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Sources: FFIEC (HMDA), OTS Thrift Financial Report, ACLI Investment Bulletin, MBA Commercial Mortgage Banker Origination Survey, Freddie Macs Office of the Chief Economist.

Sources: FFIEC (HMDA), OTS Thrift Financial Report, ACLI Investment Bulletin, MBA Note: Estimates and forecasts by the Office of the Survey, Chief Economist do not necessarily represent the views of Freddie Mac or its management, should not be construed as Commercial Mortgage Banker Origination Freddie Mac.
indicating Freddie Mac's business prospects or expected results, and are subject to change without notice.

59

Multifamily portfolio composition

Total Multifamily (MF) Portfolio
UPB $ Billions 200 180 160 140 $135 $154 $164 $169 $177 $180 $180

120
100 80 60 40 20 0 12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012 6/30/2013

MF loan portfolio

MF investment securities portfolio

MF guarantee portfolio
60

Multifamily mortgage portfolio by attribute1

June 30, 2012 March 31, 2013 June 30, 2013 Delinquency UPB ($ Billions) Year of Acquisition or Guarantee 3 2004 and prior 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Maturity Dates 2013 2014 2015 2016 2017 Beyond 2017 Total Geography California Texas New York Florida Virginia Maryland All other states Total
4

Delinquency UPB ($ Billions) Rate2 (% ) UPB ($ Billions)

Delinquency Rate2 (% )

Rate2 (% )

1 2 3 4 5 6 7 8 9 10

$11.1 6.9 10.3 19.4 18.7 13.1 12.4 17.5 12.0 N/A $121.4

0.22% 0.64 0.47 0.73 0.38 N/A 0.27%

$8.3 6.3 9.5 16.5 16.0 12.1 11.8 16.9 25.6 6.0 $129.0

0.19% 0.14 0.89 0.22 0.16%

$7.6 6.0 9.2 16.1 15.0 11.8 11.5 16.6 24.5 13.5 $131.8

0.06% 0.53 0.11 0.08 0.09%

11 12 13 14 15 16

$5.7 7.3 10.7 14.0 10.4 73.3 $121.4

0.49% 0.66 0.27 0.16 0.38 0.22 0.27%

$1.9 5.2 9.2 12.6 10.6 89.5 $129.0

1.07% 0.15 0.05 0.19 0.17 0.16%

$1.1 4.3 8.7 12.4 10.5 94.8 $131.8

1.02% 0.45 0.06 0.09%

17 18 19 20 21 22 23

$21.0 14.7 10.1 7.8 6.4 5.8 55.6 $121.4

0.14% 0.50 0.10 0.39 0.27%

$21.2 16.0 10.8 9.0 7.0 6.6 58.4 $129.0

0.10% 0.13 0.09 0.04 0.26 0.16%

$21.5 16.2 11.3 9.2 7.1 6.8 59.7 $131.8

0.04% 0.13 0.09 0.35 0.09 0.09%

1 Based on the unpaid principal balance (UPB) of the multifamily mortgage portfolio. 2 Based on the UPB of mortgages two monthly payments or more past due or in the process of foreclosure. 3 Based on either: (a) the year of acquisition, for loans recorded on the companys consolidated balance sheets; or (b) the year that the company issued its guarantee, for the

remaining loans in its multifamily mortgage portfolio.

4 Presents the six states with the highest UPB at June 30, 2013.

61

Multifamily mortgage portfolio by attribute, continued1

June 30, 2012 March 31, 2013 June 30, 2013

Delinquency UPB ($ Billions) Current Loan Size > $25M > $5M & <= $25M > $3M & <= $5M > $750K & <= $3M <= $750K Total Rate2 (% ) UPB ($ Billions)

Delinquency Rate2 (% ) UPB ($ Billions)

Delinquency Rate2 (% )

1 2 3 4 5 6

$44.4 67.8 5.8 3.2 0.2 $121.4

0.12% 0.38 0.15 0.25 0.67 0.27%

$49.1 71.0 5.7 3.0 0.2 $129.0

-% 0.26 0.17 0.56 0.37 0.16%

$49.9 73.0 5.8 2.9 0.2 $131.8

0.05% 0.09 0.22 0.46 0.38 0.09%

Legal Structure 7 Unsecuritized Loans 8 Freddie Mac mortgage-related securities 9 Other guarantee commitments 10 Total Credit Enhancement 11 Credit Enhanced 12 Non-Credit Enhanced 13 Total Other 14 Original LTV > 80% 15 Original DSCR below 1.10 3

$79.6 32.3 9.5 $121.4

0.18% 0.45 0.40 0.27%

$73.7 46.0 9.3 $129.0

0.06% 0.35 0.16%

$69.4 53.1 9.3 $131.8

0.04% 0.17 0.09%

$39.5 81.9 $121.4

0.44% 0.19 0.27%

$52.2 76.8 $129.0

0.34% 0.04 0.16%

$59.3 72.5 $131.8

0.15% 0.04 0.09%

$6.1 $2.7

2.64% 2.35%

$5.6 $2.2

2.34% 3.76%

$5.5 $2.1

0.51% 0.91%

1 Based on the unpaid principal balance (UPB) of the multifamily mortgage portfolio.

2 Based on the UPB of mortgages two monthly payments or more past due or in the process of foreclosure.
3 DSCR Debt Service Coverage Ratio is an indicator of future credit performance for multifamily loans. DSCR estimates a multif amily borrowers ability to service its mortgage

obligation using the secured propertys cash flow, after deducting non-mortgage expenses from income. The higher the DSCR, the more likely a multifamily borrower will be able to continue servicing its mortgage obligation.

62

Multifamily market and Freddie Mac delinquency rates

Percent

14 12 10
8.54%

8 6 4

2
0 1Q 2009 3Q 2009 1Q 2010
1

1.35% 0.16% 0.01%

3Q 2010

1Q 2011

3Q 2011

1Q 2012

3Q 2012

1Q 2013

Freddie Mac (60+ day)

FDIC Insured Institutions (90+ day)

MF CMBS Market (60+ day)

ACLI Investment Bulletin (60+ day)

1 See MD&A RISK MANAGEMENT Credit Risk Mortgage Credit Risk Multifamily Mortgage Credit Risk in Freddie Macs Form 10-K for the year ended December 31,

2012, for information about the companys reported multifamily delinquency rate. The multifamily delinquency rate at June 30 , 2013 was 0.09%. Source: Freddie Mac, FDIC Quarterly Banking Profile, TREPP (CMBS multifamily 60+ delinquency rate, excluding REOs), American Council of Life Insurers (ACLI). Non-Freddie Mac data is not yet available for the second quarter of 2013.

63

Multifamily portfolio net charge-offs1

Basis Points 12 10 8

6
4 2 0 2Q 2005

2Q 2006

2Q 2007

2Q 2008

2Q 2009

2Q 2010

2Q 2011

2Q 2012

2Q 2013

1 Data point for each quarter equals sum of previous four quarters of net charge-offs, divided by the average multifamily loan portfolio and guarantee portfolio balance.

Source: Freddie Mac. Data as of June 30, 2013.

64

Multifamily K-deal securities Multifamily K Certificates are regularly-issued structured pass-through securities backed by multifamily mortgage loans. More than $63 billion of securities have been issued since the start of the K-deal program in 2008. As of July 31, 2013, none of our CME1 loans are delinquent 60 days or more.

1 Reflects performance of K-deals backed by Capital Markets Execution issued since 2008.

Note: Additional information is provided on http://www.freddiemac.com/multifamily/investors/kcerts.html. Source: Freddie Mac.

65

Multifamily securitization program

K-Deal Execution Volume
UPB $ Billions 25 20 15 10

5 0 2009 2010 2011 2012 YTD 2013

Total UPB1 K-Deals

$2.14 2

$6.44 6

$13.66 12

$21.20 17

$19.19 13

1 Total UPB represents the total collateral UPB associated with each transaction, including the portion Freddie Mac does not guarantee.

Source: Freddie Mac. 2013 data as of August 31, 2013.

66

Multifamily new business volume by state1 (%) MF New Business Volume $13.5B
Six Months Ended June 30, 2013
WA 3.0% MT 0.0% OR 1.5% ID 0.1% WY <0.1% NV 1.0% ME 0.1%

ND <0.1%

MN 0.5%

SD 0.0% IA 0.2%

WI 0.3% MI 1.0% IN 0.6% OH 1.4% WV 0.0%

VT 0.0% NH 0.0% NY 8.6% MA 1.1% PA 4.5% RI 0.4% CT 0.4% DE 0.5% DC 0.2%

NE 0.2%

NJ 7.5% MD 3.0%

UT 1.1%

IL 2.7% CO 3.2% KS 0.2% MO 0.4%

CA 13.8% AZ 3.3%

KY 0.4% TN 0.4%

VA 6.7% NC 2.3%

NM 0.1%

OK 0.3%

AR <0.1% MS 0.1%

SC 0.4% GA 6.3%

AL 0.8%

AK 0.0%

TX 11.4% HI 0.0%

LA 0.1% FL 10.0%

> 5% > 3% - 5%

> 1% - 3% 1%

1 Based on the unpaid principal balance (UPB) of the multifamily loan purchases and issuance of other guarantee commitments. Percentages shown above are rounded to the

nearest tenth of a percent although classifications are based on unrounded figures.

67

Multifamily mortgage portfolio UPB concentration by state1 MF Mortgage Portfolio $131.8B2

As of June 30, 2013
WA 3.2% MT <0.1% OR 0.8% ID 0.1% WY <0.1% NV 1.1% NE 0.5% UT 0.6% CO 3.0% ME <0.1%

ND 0.1%

MN 1.2% WI 0.6% IA 0.3% IL 2.6% IN 0.6% MI 0.9% OH 1.9%

SD 0.1%

VT 0.0%NH 0.1% NY 8.5% MA 1.9%

PA 2.6%

NJ 2.9%

RI 0.2% CT 0.9% DE 0.2%

CA 16.2%

KS 0.8%

MO 1.1%

KY 0.5% TN 1.4%

MD WV 5.2% 0.1% VA 5.4% NC 2.8% SC 1.0%

DC 0.7%

AZ 2.4%

NM 0.3%

OK 0.5%

AR 0.3% MS 0.4% AL 0.9% GA 4.7%

AK 0.0%

TX 12.5% HI 0.2%

LA 0.8%

FL 7.0%

> 5% > 2% - 5% > 1% - 2% 1%

1 Based on the unpaid principal balance (UPB) of unsecuritized mortgage loans, other guarantee commitments, and collateral underlying both Freddie Mac guaranteed mortgage-

related securities and related unguaranteed K Certificates. Percentages shown above are rounded to the nearest tenth of a percent although classifications are based on unrounded figures. 2 Consists of the UPB of unsecuritized multifamily loans, other guarantee commitments, and guaranteed Freddie Mac mortgage-related securities. Excludes the UPB associated with unguaranteed K Certificates.

68

Multifamily K-deal structure K-deals include guaranteed K-Certificates and interest-only classes. The related underlying private label trust includes unguaranteed mezzanine, subordinate and interest-only bonds. In a typical K-deal, the private-label securities that back the K-Certificates are generally rated AAA.

Freddie Mac sells loans to a third-party depositor

Loans deposited into the third-party trust by the depositor

Freddie Mac acquires Guaranteed Bonds and deposits them into a Freddie Mac trust

Freddie Mac sells guaranteed K-Certificates backed by the Guaranteed Bonds

Senior Investors

Unguaranteed Mezzanine Bonds Unguaranteed Subordinate Bonds

Mezzanine Investors

Subordinate Investors
69

Debt Funding Program

Freddie Mac 2013

Freddie Macs total debt outstanding

($ Billions) Instrument Type Short Term Medium Term Notes (MTNs) Reference Bills & Discount Notes MTN Callable Callables with Expired Options MTN Other Freddie Notes Total MTNs Mortgage-Linked Amortizing Notes Structured Agency Credit Risk Debt Notes Reference Notes

2009 $228.0 171.4 23.0 115.0 11.5 $320.9 $0.0 $253.8 3.8

2010 $194.9 130.3 11.7 137.5 12.4 $291.9 $0.0 $239.5 1.6 $241.1 $0.9 $728.8

2011 $161.3 122.1 7.7 142.0 4.2 $276.0 $0.0 $238.1 1.4 $239.5 $0.6 $677.5

2012 $118.5 99.0 7.0 102.2 1.2 $209.5 $1.9 $225.9 1.0 $226.8 $0.6 $557.3

YTD 2013 $136.1 100.0 4.7 80.6 0.8 $186.1 $1.2 $0.5 $211.2 0.5 $211.7 $0.6 $536.1

USD Reference Notes Reference Notes

Total Reference Notes Subordinated Debt Total Debt Outstanding

$257.6 $0.9 $807.3

Note: Totals may not recalculate due to rounding. Excludes debt securities of consolidated trusts held by third parties. All figures represent par amounts in USD billions based on trade date. These figures could differ significantly from proceeds, amortized principal amount and book value figures, particularly for zero-coupon securities. For non-dollar denominated instruments, the U.S. dollar amounts reflected are based on the exchange rate at issuance. Short-term debt is debt with an original maturity of less than or equal to one year, except certain medium-term notes that have original maturities of one year or less which are categorized as long-term debt. Source: Freddie Mac. 2013 data as of August 31, 2013.

71

Freddie Macs suite of debt products

$ Billions
900 800 700 600 500 400 300 200 100 0

Debt Securities Outstanding

2004

2005

2006

2007

2008

2009

2010

2011
1

2012

YTD 2013

Short-term Debt MTN Bullet Debt US$ Reference Notes Mortgage-Linked Amortizing Notes
1 Includes Callable MTNs, other callable debt securities with expired options and Freddie Notes securities.

Callable Debt

Subordinated Debt Reference Notes Structured Agency Credit Risk Debt Notes

Note: Totals may not recalculate due to rounding. Excludes debt securities of consolidated trusts held by third parties. All figures represent par amounts in USD billions based on trade date. These figures could differ significantly from proceeds, amortized principal amount and book value figures, particularly for zero-coupon securities. For non-dollar denominated instruments, the U.S. dollar amounts reflected are based on the exchange rate at issuance. Short-term debt is debt with an original maturity of less than or equal to one year, except certain medium-term notes that have original maturities of one year or less are categorized as long-term debt. Source: Freddie Mac. 2013 data as of August 31, 2013.

72

Debt maturity profile

$ Billions
160 140 120 $59 100 80

$76

60
40 20 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024+ $43

$82

Long-Term

Short-Term

Note: Totals may not recalculate due to rounding. Outstanding balance using par amounts based on settle date. Short-term debt is debt with an original maturity of less than or equal to one year, except certain medium-term notes that have original maturities of one year or less are categorized as long-term debt. Excludes debt securities of consolidated trusts held by third parties. Source: Freddie Mac. Data as of August 31, 2013.

73

Debt maturity profile by quarter

$ Billions
90 80 70 60 50 $55

$38

40
30 $21 20 $29 10 0 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 $14 $28 $18 $24 $21 $3

$9

Long-term

Short-term

Note: Totals may not recalculate due to rounding. Outstanding balance using par amounts based on settle date. Short-term debt is debt with an original maturity of less than or equal to one year, except certain medium-term notes that have original maturities of one year or less are categorized as long-term debt. Excludes debt securities of consolidated trusts held by third parties. Source: Freddie Mac. Data as of August 31, 2013.

74

Short-term debt balances

Total Short-term Debt Outstanding as a % of Total Debt Outstanding
40%

Total Short-term Debt Outstanding

$ Billions 350 300 250

35%

30%
200 150 100

25%
Average = 25%

20%
50 0 1Q04

2Q06

3Q08

4Q10

1Q13

15% 1Q04

2Q06

3Q08

4Q10

1Q13

Note: Outstanding balance using par amounts based on settle date. Short-term debt is debt with an original maturity of less than or equal to one year, except certain medium-term notes that have original maturities of one year or less are categorized as long-term debt. Excludes debt securities of consolidated trusts held by third parties. Source: Freddie Mac. 2013 data as of June 30, 2013.

75

Freddie Mac callable debt issued and called

Callable Debt
2-Year UST Yield 0.50 Issued
$21 $17 $10 $6 $2 $3 $1 ($2) ($5)

$ Billions 30
$24

20
$10

$16 $16 $10 $4 $11 $5 $10 $5

0.45

10

$7

$8 $1

$8

$7

0.40
$6 $4 $3

0
($2) ($5) ($7) ($12) ($7) ($7) ($7) ($11) ($6) ($8) ($1) ($1)

0.35
($5)

(10)
($11)
($14) ($13) ($12) ($11)

($7)

0.30

(20)

($19)

($18)
($21)

0.25 Called 2-Year UST Yield 0.20 Dec-12 Apr-13 Aug-13

(30)

($27)

Aug-11

Dec-11

Apr-12

Aug-12

Note: All figures represent par amounts in USD billions based on the trade date.
Source: Freddie Mac. Data as of August 31, 2013.

76

Demand for our Reference Notes securities over the last 12 months
Geographical Region
Investor Type

Central Bank 21%

Asia 10% Europe <1% Other 4%

Bank 9%

N. America 86%

Insurance & Pension 5% Investment Manager 57%

Other 8%

Note: Data reflects orders placed in the companys US$ Reference Notes securities syndicated bond offerings. Percentages ma y not add up to 100% due to rounding. Source: Freddie Mac. Data for the 12 months ended August 31, 2013.

77

Demand for our Reference Notes securities

Geographic Region
100% 90%

Investor Type
100% Other

Other

90%
North America
80% 70%

Insurance & Pension

80%
70% 60%

Bank

60%
50%

50%
40% 30% Europe

Investment Manager

40%

30%
Asia
20% 10% Central Bank

20%
10%

0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Note: Data reflects 6-month moving average of orders placed in the companys US$ Reference Notes securities syndicated bond off erings. Source: Freddie Mac. 2013 data as of August 31, 2013.

78

Structured Agency Credit Risk (STACRSM) Debt Notes

Final Investor Distribution: Class M-1
Hedge Fund 34%

Final Investor Distribution: Class M-2

Hedge Fund 33%

Money Manager 39%

REIT 15%

Money Manager 38%

REIT 24%

Pension Fund <1%

Bank / Credit Union Insurance 10% 1%

Bank / Credit Union Insurance 4% 2%

Note: Data reflects final investor distribution for STACR 2013-DN1. Percentages may not add up to 100% due to rounding. Source: Freddie Mac. Data as of July 31, 2013.

79

Mortgage Funding

Freddie Mac 2013

Composition of bond market debt outstanding

Outstanding Public and Private Bond Market Debt $38.7 Trillion
Treasury ($11.3) 29%
1

Municipal ($3.7) 10%

Agency Debt 2 ($2.1) 5%

Corporate Debt ($9.2) 24%

5

MBS 3 ($8.1) 21%

Money Market ($2.5) Asset-Backed ($1.7) 4 6% 4%

1 Interest-bearing marketable public debt.
2 Includes Freddie Mac, Fannie Mae, Federal Home Loan Banks, Farmer Mac, the Farm Credit System, and federal budget agencies (e.g. TVA). 3 Includes Ginnie Mae, Fannie Mae and Freddie Mac mortgage-backed securities and CMOs, CMBS and private-label MBS/CMOs. 4 Includes auto, credit card, home equity, manufacturing, student loans and other. CDOs of ABS are included. 5 Includes commercial paper, bankers acceptances and large time deposits.

Note: Percentages may not add up to 100% due to rounding. Source: Securities Industry and Financial Markets Association as of March 31, 2013. Data revised as of June 30, 2013.

81

Freddie Macs mortgage-related securities products

Mortgage-related Securities Products Outstanding
$Billions
2000 1800 1600

1400 1200
1000 800 600 400 200 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 June-30 2013

REMICs

Reference REMIC

T-deals/WLR

Strips

PCs
82

Source: Freddie Mac.

Composition of Freddie Macs single-family pass-through securities1

FHA/VA <1% Adjustable-rate 4% Interest-only 2%
2

15-year fixed-rate 19%

30-year fixed-rate 74%

1 Based on unpaid principal balances of the securities and excludes mortgage-related debt traded, but not yet settled. 2 Portfolio balance includes $1.0 billion in UPB of option ARM mortgage loans as of June 30, 2013. 3 Includes 20-year fixed-rate mortgage loans.

Note: Percentages may not add up to 100% due to rounding. Source: Freddie Mac. Data as of June 30, 2013.

83

Agency CMO issuance

Agency CMO Issuance

$ Billions $ Billions

Agency CMO Outstanding

500 400 300 200

100 0
2007 2008 2009 2010 2011 2012 2013 YTD

1,400 1,200 1,000 800 600 400 200 0

2007 2008 2009 2010 2011 2012 2013 YTD

Freddie Mac

Fannie Mae

Ginnie Mae

Freddie Mac

Fannie Mae

Ginnie Mae

Source: Bloomberg. 2013 data as of August 31, 2013.

84

Composition of collateral underlying Freddie Mac REMICs

Other ARM Balloon <1% 1% <1%

15-year 16%

20-year 10%

30-year 73%

Note: Percentages may not add up to 100% due to rounding. Source: Freddie Mac. Data as of August 31, 2013.

85

Estimated institutional holdings of Agency MBS

$Billions 1,400 1,200 1,000 800 600 400

200
0

Note: Other investors include hedge funds, structured investment vehicles, pension funds, saving institutions, nonprofits and individuals. Source: Freddie Mac, Fannie Mae, Federal Reserve, Inside MBS & ABS, National Credit Union Administration, and the U.S. Treasury Department. Data as of December 31, 2012.

86

Estimated demand for Agency mortgage-related securities

$ Billions 250 200 150 100 50 0

-50
-100 1/08 6/08 11/08 4/09 9/09 2/10 7/10 Freddie 12/10 5/11 10/11 3/12 FHLB 8/12 1/13 Fed 6/13

Comm Bank PT

Comm Bank CMO

Fannie

Foreign

Treasury

Note: Presents net purchases/sales of Agency mortgage-related securities by the listed institutions, excluding securitization activity. Comm Bank PT and Comm Bank CMO represent net purchases/sales of Agency mortgage-related securities by commercial banks through passthroughs and CMOs, respectively. Agency mortgage-related securities include securities issued by Freddie Mac, Fannie Mae and Ginnie Mae. Source: Federal Reserve Board, Freddie Mac and Fannie Mae Monthly Volume Summaries, Treasury International Capital data, Federal Home Loan Banks, US Treasury Department, Federal Reserve Bank of New York.

87

Estimated Asia net flows into Agencies

$ Billions 30 20 10 0 -10

-20
-30 1/08 6/08 11/08 4/09
Japan

9/09

2/10

7/10

12/10

5/11

10/11
Taiwan

3/12

8/12

1/13

6/13

China

Korea

Hong Kong

Singapore

Note: Consists of agency mortgage-related and debt securities which include securities issued by Freddie Mac, Fannie Mae, Ginnie Mae, Federal Home Loan Banks, Farmer Mac, the Farm Credit System, and federal budget agencies (e.g. TVA). Source: Treasury International Capital data.

88

Freddie Mac structured finance securities1

Bloomberg Ticker
FHR

Freddie Mac REMICs

Collateral Description
Gold and 75 Day PCs ReREMICs of Existing Multiclass Securities Gold PCs Freddie Mac Owned New or Seasoned Private Label ABS Gold and 75 Day PCs

Series 0001 4245

Outstanding Balance2 $375.1B $35.3B

Reference REMICs with Guaranteed Final

FHRR

R001 R016

$4.5B

T-Deals

FSPC

T001 T082

$12.3B $18.9B $14.0B $53.5B

Strips

FHS Excess Servicing Assets Freddie Mac Owned Multifamily Loans Held as Private Label ABS Municipal Bonds Secured by Tax-Exempt or Taxable Multifamily Affordable Housing Loans FHMS FHM (Tax-Exempt)

001 309,311

K-Deals

K001 K031

Multifamily Variable Rate Certificates

M001 M026
FHMT (Taxable)

$3.7B

1 Guaranteed as described in the applicable offering documents. 2 Outstanding balance reflects issuance through August 31, 2013.

89

Deal structure options

REMIC Program Feature Callable PCs (CPC) Benefit Pass-through securities that are backed by a Giant PC and subject to a call option. In the event of a call, the callable class is paid off at par and the call class receives the underlying Giant PC. Pass-through securities that are backed by a REMIC classes and subject to a call option. In the event of a call, the callable class is paid off at par and the call class receives the underlying REMIC class. Callable REMIC Classes may also be backed by a callable class of CPCs and will be retired upon redemption of the collateral. GMC is a feature added to a REMIC class to provide a stated legal maturity date, at par, guaranteed by Freddie Mac. GMCs have a final payment date earlier than the latest date by which these Classes might be retired solely from payments on their underlying assets.

Callable REMIC Classes (CRC)

Guaranteed Maturity Class (GMC)

IO/PO Strips Floater/Inverse Floater Combinations Gold MACS Combinations of Floating Rate, Inverse Floating Rate, Floating Rate IO, Inverse Floating Rate IO certificates that permit holders to exchange classes for combinations of floating rate and inverse floater rate classes with various margins and caps. Strip securities that are exchangeable for other classes of the same series having different class coupons or coupon formulas. Interest Only securities backed by Excess Servicing Spread 1 held by mortgage servicers. Loan characteristics for the loans backing each issued XSIO security are pooled to mirror PC pooling practices. Holders of a MACR Class can exchange all or part of the class for a predetermined proportionate interest in other specified REMIC or MACR classes, and vice versa.

Excess IO Strips (XSIO)

Modifiable And Combinable REMICs (MACR)

1 Excess Servicing Spread is the excess of the Servicer retained mortgage servicing fee rate over the Freddie Mac minimum core servicing fee rate of 25 basis points.

90

Deal structure options (continued)

REMIC Program Feature REMIC Unwinds

Benefit Permits the holder of both the REMIC Residual class and 100% of all outstanding REMIC classes covered by the Residual class to exchange their REMIC interests for all collateral backing the REMIC. Permits the holder of any portion of an issued REMIC class to use that class as collateral to back a subsequent REMIC. Retail classes are designed primarily for individual investors and are typically issued and receive principal in $1,000 increments. Permits the holder of a pro-rata portion of all outstanding REMIC classes within a REMIC group to recombine their interests for a pro-rata portion of the underlying REMIC collateral. Simplifies the REMIC Unwind feature for the holder of the Residual class and 100% of all outstanding REMIC classes issued a single REMIC Group. Holder exchanges its interests for all collateral backing the specific REMIC Group. Collateral is stripped into separate Interest Only and Principal Only securities with transactions underwritten and distributed by a syndicate of dealers.

ReREMIC

Retail Classes

Reverse REMIC

Single Group Residual

Syndicated IO/PO Strips

91

Safe Harbor Statements

Freddie Mac obligations Freddie Macs 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 companys current expectations and objectives for its efforts under the MHA Program, the servicing alignment initiative and other programs to assist the U.S. residential mortgage market, future business plans, liquidity, capital management, economic and market conditions and trends, market share, the effect of legislative and regulatory developments, implementation of new accounting guidance, credit losses, internal control remediation efforts, and results of operations and financial condition on a GAAP, Segment Earnings and fair value basis. Forward-looking statements involve known and unknown risks and uncertainties, some of which are beyond the companys control. Managements expectations for the companys future necessarily involve a number of assumptions, judgments and estimates, and various factors, including changes in market conditions, liquidity, mortgage-to-debt option-adjusted spread, credit outlook, actions by FHFA, Treasury, the Federal Reserve, the SEC, HUD, other federal agencies, the Administration and Congress, 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 companys Annual Report on Form 10 -K for the year ended December 31, 2012, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2013 and June 30, 2013 and Current Reports on Form 8-K, which are available on the Investor Relations page of the companys Web site at www.FreddieMac.com/investors and the SECs Web site at www.sec.gov. The company undertakes no obligation to update forward looking statements it makes to reflect events or circumstances after the date of this presentation.

92