Federal Home Loan Mortgage (FMCC) 10-Q 2009 Q2 Quarterly report

Exhibit 12.1

RATIO OF EARNINGS TO FIXED CHARGES

	Six Months Ended
	June 30,						Year Ended December 31,
	2009(1)			2008(1)			2008(1)			2007(1)			2006		2005		2004
	(dollars in millions)
Net income (loss) before income tax expense (benefit) and cumulative effect of changes in accounting principles	$	(10,205	)	$	(2,420	)	$	(44,561	)	$	(5,985	)	$	2,340	$	2,626	$	3,341
Add:
Low-income housing tax credit partnerships		273			225			453			469			407		320		282
Total interest expense		12,268			17,117			33,332			38,482			37,270		29,899		26,566
Interest factor in rental expenses		3			5			8			7			6		6		6
Earnings (loss), as adjusted	$	2,339		$	14,927		$	(10,768	)	$	32,973		$	40,023	$	32,851	$	30,195
Fixed charges:
Total interest expense	$	12,268		$	17,117		$	33,332		$	38,482		$	37,270	$	29,899	$	26,566
Interest factor in rental expenses		3			5			8			7			6		6		6
Capitalized interest		—			—			—			—			—		—		1
Total fixed charges	$	12,271		$	17,122		$	33,340		$	38,489		$	37,276	$	29,905	$	26,573
Ratio of earnings to fixed charges(2)		—			—			—			—			1.07		1.10		1.14

(1)

For the ratio of earnings to fixed charges to equal 1.00, earnings (loss), as adjusted must increase by $9.9 billion and $2.2 billion for the six months ended June 30, 2009 and June 30, 2008, respectively. For the ratio of earnings to fixed charges to equal 1.00, earnings (loss), as adjusted must increase by $44.1 billion and $5.5 billion for the years ended December 31, 2008 and 2007, respectively.

(2)

Ratio of earnings to fixed charges is computed by dividing earnings (loss), as adjusted by total fixed charges.

RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS

	Six Months Ended
	June 30,						Year Ended December 31,
	2009(1)			2008(1)			2008(1)			2007(1)			2006		2005		2004
	(dollars in millions)
Net income (loss) before income tax expense (benefit) and cumulative effect of changes in accounting principles	$	(10,205	)	$	(2,420	)	$	(44,561	)	$	(5,985	)	$	2,340	$	2,626	$	3,341
Add:
Low-income housing tax credit partnerships		273			225			453			469			407		320		282
Total interest expense		12,268			17,117			33,332			38,482			37,270		29,899		26,566
Interest factor in rental expenses		3			5			8			7			6		6		6
Earnings (loss), as adjusted	$	2,339		$	14,927		$	(10,768	)	$	32,973		$	40,023	$	32,851	$	30,195
Fixed charges:
Total interest expense	$	12,268		$	17,117		$	33,332		$	38,482		$	37,270	$	29,899	$	26,566
Interest factor in rental expenses		3			5			8			7			6		6		6
Capitalized interest		—			—			—			—			—		—		1
Senior preferred stock and preferred stock dividends(2)		1,519			503			675			398			270		260		260
Total fixed charges including preferred stock dividends	$	13,790		$	17,625		$	34,015		$	38,887		$	37,546	$	30,165	$	26,833
Ratio of earnings to combined fixed charges and preferred stock dividends(3)		—			—			—			—			1.07		1.09		1.13

(1)	For the ratio of earnings to combined fixed charges and preferred stock dividends to equal 1.00, earnings (loss), as adjusted must increase by $11.5 billion and $2.7 billion for the six months ended June 30, 2009 and June 30, 2008, respectively. For the ratio of earnings to combined fixed charges and preferred stock dividends to equal 1.00, earnings (loss), as adjusted must increase by $44.8 billion and $5.9 billion for the years ended December 31, 2008 and 2007, respectively.
(2)	Senior preferred stock and preferred stock dividends represent pre-tax earnings required to cover any senior preferred stock and preferred stock dividend requirements computed using our effective tax rate, whenever there is an income tax provision, for the relevant periods.
(3)	Ratio of earnings to combined fixed charges and preferred stock dividends is computed by dividing earnings (loss), as adjusted by total fixed charges including preferred stock dividends.