Exhibit 99.2
FREDDIE MAC SECOND QUARTER 2009 FINANCIAL RESULTS FINANCIAL STATEMENTS AND CORE TABLES |
TABLE OF CONTENTS
Table | GAAP Financial Statements | Page | ||||||
Consolidated Statements of Operations | 2 | |||||||
Consolidated Balance Sheets | 3 | |||||||
Consolidated Statements of Equity (Deficit) | 4 | |||||||
GAAP Financial Results | ||||||||
1A | Net Interest Yield Analysis | 5 | ||||||
1B | Net Interest Income | 6 | ||||||
2 | Non-Interest Income (Loss) | 7 | ||||||
3 | Management and Guarantee Income & Related Information | 8 | ||||||
4 | Derivatives Not in Hedge Accounting Relationships | 9 | ||||||
5 | Non-Interest Expense | 10 | ||||||
6 | Credit Quality Indicators | 11 | ||||||
7 | Single-Family Non-Credit-Enhanced Delinquency and Foreclosure Activity by Region | 12 | ||||||
8 | Real Estate Owned (REO) Activity | 13 |
FREDDIE MAC
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
Line: | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||||||
(dollars in millions, except | ||||||||||||||||||||||||
share-related amounts) | ||||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||
1 | Investments in securities | $ | 8,523 | $ | 8,603 | $ | 17,494 | $ | 17,049 | |||||||||||||||
2 | Mortgage loans | 1,721 | 1,320 | 3,301 | 2,563 | |||||||||||||||||||
3 | Other | 75 | 297 | 169 | 504 | |||||||||||||||||||
4 | Total interest income | 10,319 | 10,220 | 20,964 | 20,116 | |||||||||||||||||||
Interest expense | ||||||||||||||||||||||||
5 | Short-term debt | (571 | ) | (1,637 | ) | (1,693 | ) | (3,681 | ) | |||||||||||||||
6 | Long-term debt | (5,211 | ) | (6,711 | ) | (10,575 | ) | (13,436 | ) | |||||||||||||||
7 | Total interest expense | (5,782 | ) | (8,348 | ) | (12,268 | ) | (17,117 | ) | |||||||||||||||
8 | Expense related to derivatives | (282 | ) | (343 | ) | (582 | ) | (672 | ) | |||||||||||||||
9 | Net interest income | 4,255 | 1,529 | 8,114 | 2,327 | |||||||||||||||||||
Non-interest income | ||||||||||||||||||||||||
10 | Management and guarantee income (includes interest on guarantee asset of $251, $243, $500 and $458, respectively) | 710 | 757 | 1,490 | 1,546 | |||||||||||||||||||
11 | Gains (losses) on guarantee asset | 1,817 | 1,114 | 1,661 | (280 | ) | ||||||||||||||||||
12 | Income on guarantee obligation | 961 | 769 | 1,871 | 1,938 | |||||||||||||||||||
13 | Derivative gains (losses) | 2,361 | 115 | 2,542 | (130 | ) | ||||||||||||||||||
Gains (losses) on investments: | ||||||||||||||||||||||||
Impairment-related: | ||||||||||||||||||||||||
14 | Total other-than-temporary impairment ofavailable-for-sale securities | (10,473 | ) | (1,040 | ) | (17,603 | ) | (1,111 | ) | |||||||||||||||
15 | Portion of other-than-temporary impairment recognized in AOCI | 8,260 | — | 8,260 | — | |||||||||||||||||||
16 | Net impairment ofavailable-for-sale securities recognized in earnings | (2,213 | ) | (1,040 | ) | (9,343 | ) | (1,111 | ) | |||||||||||||||
17 | Other gains (losses) on investments | 797 | (2,287 | ) | 2,983 | (997 | ) | |||||||||||||||||
18 | Total gains (losses) on investments | (1,416 | ) | (3,327 | ) | (6,360 | ) | (2,108 | ) | |||||||||||||||
19 | Gains (losses) on debt recorded at fair value | (797 | ) | 569 | (330 | ) | (816 | ) | ||||||||||||||||
20 | Gains (losses) on debt retirement | (156 | ) | (29 | ) | (260 | ) | 276 | ||||||||||||||||
21 | Recoveries on loans impaired upon purchase | 70 | 121 | 120 | 347 | |||||||||||||||||||
22 | Low-income housing tax credit partnerships | (167 | ) | (108 | ) | (273 | ) | (225 | ) | |||||||||||||||
23 | Trust management income (expense) | (238 | ) | (19 | ) | (445 | ) | (16 | ) | |||||||||||||||
24 | Other income | 70 | 94 | 111 | 138 | |||||||||||||||||||
25 | Non-interest income | 3,215 | 56 | 127 | 670 | |||||||||||||||||||
Non-interest expense | ||||||||||||||||||||||||
26 | Salaries and employee benefits | (221 | ) | (241 | ) | (428 | ) | (472 | ) | |||||||||||||||
27 | Professional services | (64 | ) | (55 | ) | (124 | ) | (127 | ) | |||||||||||||||
28 | Occupancy expense | (15 | ) | (18 | ) | (33 | ) | (33 | ) | |||||||||||||||
29 | Other administrative expenses | (83 | ) | (90 | ) | (170 | ) | (169 | ) | |||||||||||||||
30 | Total administrative expenses | (383 | ) | (404 | ) | (755 | ) | (801 | ) | |||||||||||||||
31 | Provision for credit losses | (5,199 | ) | (2,537 | ) | (13,990 | ) | (3,777 | ) | |||||||||||||||
32 | Real estate owned operations expense | (9 | ) | (265 | ) | (315 | ) | (473 | ) | |||||||||||||||
33 | Losses on loans purchased | (1,199 | ) | (120 | ) | (3,211 | ) | (171 | ) | |||||||||||||||
34 | Other expenses | (97 | ) | (108 | ) | (175 | ) | (195 | ) | |||||||||||||||
35 | Non-interest expense | (6,887 | ) | (3,434 | ) | (18,446 | ) | (5,417 | ) | |||||||||||||||
36 | Income (loss) before income tax benefit | 583 | (1,849 | ) | (10,205 | ) | (2,420 | ) | ||||||||||||||||
37 | Income tax benefit | 184 | 1,030 | 1,121 | 1,452 | |||||||||||||||||||
38 | Net income (loss) | $ | 767 | $ | (819 | ) | $ | (9,084 | ) | $ | (968 | ) | ||||||||||||
39 | Less: net (income) loss attributable to noncontrolling interest | 1 | (2 | ) | 1 | (4 | ) | |||||||||||||||||
40 | Net income (loss) attributable to Freddie Mac | $ | 768 | $ | (821 | ) | $ | (9,083 | ) | $ | (972 | ) | ||||||||||||
41 | Preferred stock dividends | (1,142 | ) | (231 | ) | (1,520 | ) | (503 | ) | |||||||||||||||
42 | Amount allocated to participating security option holders | — | (1 | ) | — | (1 | ) | |||||||||||||||||
43 | Net loss attributable to common stockholders | $ | (374 | ) | $ | (1,053 | ) | $ | (10,603 | ) | $ | (1,476 | ) | |||||||||||
Loss per common share: | ||||||||||||||||||||||||
44 | Basic | $ | (0.11 | ) | $ | (1.63 | ) | $ | (3.26 | ) | $ | (2.28 | ) | |||||||||||
45 | Diluted | $ | (0.11 | ) | $ | (1.63 | ) | $ | (3.26 | ) | $ | (2.28 | ) | |||||||||||
Weighted average common shares outstanding (in thousands): | ||||||||||||||||||||||||
46 | Basic | 3,253,716 | 646,868 | 3,254,815 | 646,603 | |||||||||||||||||||
47 | Diluted | 3,253,716 | 646,868 | 3,254,815 | 646,603 | |||||||||||||||||||
48 | Dividends per common share | $ | — | $ | 0.25 | $ | — | $ | 0.50 |
2
FREDDIE MAC
CONSOLIDATED BALANCE SHEETS
(unaudited)
CONSOLIDATED BALANCE SHEETS
(unaudited)
June 30, | December 31, | |||||||||||||||
Line: | 2009 | 2008 | ||||||||||||||
(dollars in millions, except | ||||||||||||||||
share-related amounts) | ||||||||||||||||
Assets | ||||||||||||||||
1 | Cash and cash equivalents | $ | 46,662 | $ | 45,326 | |||||||||||
2 | Restricted cash | 1,609 | 953 | |||||||||||||
3 | Federal funds sold and securities purchased under agreements to resell | 8,500 | 10,150 | |||||||||||||
Investments in securities: | ||||||||||||||||
4 | Available-for-sale, at fair value (includes $8,112 and $21,302, respectively, pledged as collateral that may be repledged) | 420,691 | 458,898 | |||||||||||||
5 | Trading, at fair value | 250,666 | 190,361 | |||||||||||||
6 | Total investments in securities | 671,357 | 649,259 | |||||||||||||
Mortgage loans: | ||||||||||||||||
7 | Held-for-sale, at lower-of-cost-or-fair-value (except $223 and $401 at fair value, respectively) | 22,596 | 16,247 | |||||||||||||
8 | Held-for-investment, at amortized cost (net of allowances for loan losses of $831 and $690, respectively) | 99,354 | 91,344 | |||||||||||||
9 | Total mortgage loans, net | 121,950 | 107,591 | |||||||||||||
10 | Accounts and other receivables, net | 6,871 | 6,337 | |||||||||||||
11 | Derivative assets, net | 319 | 955 | |||||||||||||
12 | Guarantee asset, at fair value | 7,576 | 4,847 | |||||||||||||
13 | Real estate owned, net | 3,416 | 3,255 | |||||||||||||
14 | Deferred tax assets, net | 16,894 | 15,351 | |||||||||||||
15 | Low-income housing tax credit partnerships equity investments | 3,879 | 4,145 | |||||||||||||
16 | Other assets | 3,257 | 2,794 | |||||||||||||
17 | Total assets | $ | 892,290 | $ | 850,963 | |||||||||||
Liabilities and equity (deficit) | ||||||||||||||||
Liabilities | ||||||||||||||||
18 | Accrued interest payable | $ | 5,500 | $ | 6,504 | |||||||||||
Debt, net: | ||||||||||||||||
19 | Short-term debt (includes $1,645 and $1,638 at fair value, respectively) | 344,135 | 435,114 | |||||||||||||
20 | Long-term debt (includes $5,852 and $11,740 at fair value, respectively) | 492,843 | 407,907 | |||||||||||||
21 | Total debt, net | 836,978 | 843,021 | |||||||||||||
22 | Guarantee obligation | 11,956 | 12,098 | |||||||||||||
23 | Derivative liabilities, net | 885 | 2,277 | |||||||||||||
24 | Reserve for guarantee losses on Participation Certificates | 24,366 | 14,928 | |||||||||||||
25 | Other liabilities | 4,373 | 2,769 | |||||||||||||
26 | Total liabilities | 884,058 | 881,597 | |||||||||||||
27 | Commitments and contingencies | |||||||||||||||
Equity (deficit) | ||||||||||||||||
Freddie Mac stockholders’ equity (deficit) | ||||||||||||||||
28 | Senior preferred stock, at redemption value | 51,700 | 14,800 | |||||||||||||
29 | Preferred stock, at redemption value | 14,109 | 14,109 | |||||||||||||
30 | Common stock, $0.00 par value, 4,000,000,000 shares authorized, 725,863,886 shares issued and 648,305,154 shares and 647,260,293 shares outstanding, respectively | — | — | |||||||||||||
31 | Additional paid-in capital | 30 | 19 | |||||||||||||
32 | Retained earnings (accumulated deficit) | (18,863 | ) | (23,191 | ) | |||||||||||
Accumulated other comprehensive income (loss), or AOCI, net of taxes, related to: | ||||||||||||||||
33 | Available-for-sale securities (includes $17,774, net of taxes, of other-than-temporary impairments at June 30, 2009) | (31,375 | ) | (28,510 | ) | |||||||||||
34 | Cash flow hedge relationships | (3,275 | ) | (3,678 | ) | |||||||||||
35 | Defined benefit plans | (165 | ) | (169 | ) | |||||||||||
36 | Total AOCI, net of taxes | (34,815 | ) | (32,357 | ) | |||||||||||
37 | Treasury stock, at cost, 77,558,732 shares and 78,603,593 shares, respectively | (4,024 | ) | (4,111 | ) | |||||||||||
38 | Total Freddie Mac stockholders’ equity (deficit) | 8,137 | (30,731 | ) | ||||||||||||
39 | Noncontrolling interest | 95 | 97 | |||||||||||||
40 | Total equity (deficit) | 8,232 | (30,634 | ) | ||||||||||||
41 | Total liabilities and equity (deficit) | $ | 892,290 | $ | 850,963 | |||||||||||
3
FREDDIE MAC
CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT)
(unaudited)
CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT)
(unaudited)
Six Months Ended June 30, | ||||||||||||||||||||
2009 | 2008 | |||||||||||||||||||
Line: | Shares | Amount | Shares | Amount | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Senior preferred stock, at redemption value | ||||||||||||||||||||
1 | Balance, beginning of year | 1 | $ | 14,800 | — | $ | — | |||||||||||||
2 | Increase in liquidation preference | — | 36,900 | — | — | |||||||||||||||
3 | Senior preferred stock, end of period | 1 | 51,700 | — | — | |||||||||||||||
Preferred stock, at redemption value | ||||||||||||||||||||
4 | Balance, beginning of year | 464 | 14,109 | 464 | 14,109 | |||||||||||||||
5 | Preferred stock, end of period | 464 | 14,109 | 464 | 14,109 | |||||||||||||||
Common stock, at par value | ||||||||||||||||||||
6 | Balance, beginning of year | 726 | — | 726 | 152 | |||||||||||||||
7 | Common stock, end of period | 726 | — | 726 | 152 | |||||||||||||||
Additional paid-in capital | ||||||||||||||||||||
8 | Balance, beginning of year | 19 | 871 | |||||||||||||||||
9 | Stock-based compensation | 27 | 53 | |||||||||||||||||
10 | Income tax benefit from stock-based compensation | 7 | (12 | ) | ||||||||||||||||
11 | Common stock issuances | (86 | ) | (52 | ) | |||||||||||||||
12 | Real Estate Investment Trust preferred stock repurchase | — | 4 | |||||||||||||||||
13 | Transfer from retained earnings (accumulated deficit) | 63 | — | |||||||||||||||||
14 | Additional paid-in capital, end of period | 30 | 864 | |||||||||||||||||
Retained earnings (accumulated deficit) | ||||||||||||||||||||
15 | Balance, beginning of year | (23,191 | ) | 26,909 | ||||||||||||||||
16 | Cumulative effect of change in accounting principle, net of taxes | — | 1,023 | |||||||||||||||||
17 | Balance, beginning of year, as adjusted | (23,191 | ) | 27,932 | ||||||||||||||||
18 | Cumulative effect of change in accounting principle, net of taxes | 14,996 | — | |||||||||||||||||
19 | Net loss attributable to Freddie Mac | (9,083 | ) | (972 | ) | |||||||||||||||
20 | Senior preferred stock dividends declared | (1,519 | ) | — | ||||||||||||||||
21 | Preferred stock dividends declared | — | (503 | ) | ||||||||||||||||
22 | Common stock dividends declared | — | (323 | ) | ||||||||||||||||
23 | Dividend equivalent payments on expired stock options | (3 | ) | (6 | ) | |||||||||||||||
24 | Transfer to additional paid-in capital | (63 | ) | — | ||||||||||||||||
25 | Retained earnings (accumulated deficit), end of period | (18,863 | ) | 26,128 | ||||||||||||||||
AOCI, net of taxes | ||||||||||||||||||||
26 | Balance, beginning of year | (32,357 | ) | (11,143 | ) | |||||||||||||||
27 | Cumulative effect of change in accounting principle, net of taxes | — | (850 | ) | ||||||||||||||||
28 | Balance, beginning of year, as adjusted | (32,357 | ) | (11,993 | ) | |||||||||||||||
29 | Cumulative effect of change in accounting principle, net of taxes | (9,931 | ) | — | ||||||||||||||||
30 | Changes in unrealized gains (losses) related toavailable-for-sale securities, net of reclassification adjustments | 7,066 | (12,825 | ) | ||||||||||||||||
31 | Changes in unrealized gains (losses) related to cash flow hedge relationships, net of reclassification adjustments | 403 | 637 | |||||||||||||||||
32 | Changes in defined benefit plans | 4 | 1 | |||||||||||||||||
33 | AOCI, net of taxes, end of period | (34,815 | ) | (24,180 | ) | |||||||||||||||
Treasury stock, at cost | ||||||||||||||||||||
34 | Balance, beginning of year | 79 | (4,111 | ) | 80 | (4,174 | ) | |||||||||||||
35 | Common stock issuances | (1 | ) | 87 | (1 | ) | 49 | |||||||||||||
36 | Treasury stock, end of period | 78 | (4,024 | ) | 79 | (4,125 | ) | |||||||||||||
Noncontrolling interest | ||||||||||||||||||||
37 | Balance, beginning of year | 97 | 181 | |||||||||||||||||
38 | Net income (loss) attributable to noncontrolling interest | (1 | ) | 4 | ||||||||||||||||
39 | Real Estate Investment Trust preferred stock repurchase | — | (45 | ) | ||||||||||||||||
40 | Dividends and other | (1 | ) | (6 | ) | |||||||||||||||
41 | Noncontrolling interest, end of period | 95 | 134 | |||||||||||||||||
42 | Total equity (deficit) | $ | 8,232 | $ | 13,082 | |||||||||||||||
Comprehensive income (loss) | ||||||||||||||||||||
43 | Net loss | $ | (9,084 | ) | $ | (968 | ) | |||||||||||||
44 | Changes in other comprehensive income (loss), net of taxes, net of reclassification adjustments | 7,473 | (12,187 | ) | ||||||||||||||||
45 | Comprehensive income (loss) | (1,611 | ) | (13,155 | ) | |||||||||||||||
46 | Less: Comprehensive (income) loss attributable to noncontrolling interest | 1 | (4 | ) | ||||||||||||||||
47 | Total comprehensive income (loss) attributable to Freddie Mac | $ | (1,610 | ) | $ | (13,159 | ) | |||||||||||||
4
FREDDIE MAC
NET INTEREST YIELD ANALYSIS
TABLE 1A
(unaudited)
(dollars in millions)
NET INTEREST YIELD ANALYSIS
TABLE 1A
(unaudited)
(dollars in millions)
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||
Line: | 1Q 2008 | 2Q 2008 | 3Q 2008 | 4Q 2008 | 1Q 2009 | 2Q 2009 | 2008 | 2009 | ||||||||||||||||||||||||||||
Net Interest Income: | ||||||||||||||||||||||||||||||||||||
1 | Net interest income | $ | 798 | $ | 1,529 | $ | 1,844 | $ | 2,625 | $ | 3,859 | $ | 4,255 | $ | 2,327 | $ | 8,114 | |||||||||||||||||||
2 | Fully taxable-equivalent adjustments(1) | 107 | 105 | 98 | 94 | 102 | 99 | 212 | 201 | |||||||||||||||||||||||||||
3 | Net interest income (fully taxable-equivalent basis) | $ | 905 | $ | 1,634 | $ | 1,942 | $ | 2,719 | $ | 3,961 | $ | 4,354 | $ | 2,539 | $ | 8,315 | |||||||||||||||||||
Average Balances: | ||||||||||||||||||||||||||||||||||||
4 | Mortgage loans(2) | $ | 84,291 | $ | 89,813 | $ | 95,174 | $ | 105,316 | $ | 118,555 | $ | 127,863 | $ | 87,052 | $ | 123,209 | |||||||||||||||||||
5 | Mortgage-related securities(3) | 628,721 | 664,727 | 676,197 | 677,379 | 698,464 | 702,693 | 646,724 | 700,578 | |||||||||||||||||||||||||||
6 | Total mortgage-related investments portfolio | 713,012 | 754,540 | 771,371 | 782,695 | 817,019 | 830,556 | 733,776 | 823,787 | |||||||||||||||||||||||||||
7 | Non-mortgage-related securities(3) | 30,565 | 26,935 | 11,658 | 9,869 | 11,197 | 16,594 | 28,750 | 13,896 | |||||||||||||||||||||||||||
8 | Cash and cash equivalents | 8,891 | 27,126 | 35,735 | 40,799 | 49,932 | 57,401 | 18,008 | 53,666 | |||||||||||||||||||||||||||
9 | Federal funds sold and securities purchased under agreements to resell | 14,435 | 20,660 | 29,379 | 27,599 | 33,605 | 29,542 | 17,548 | 31,574 | |||||||||||||||||||||||||||
10 | Total interest-earning assets | 766,903 | 829,261 | 848,143 | 860,962 | 911,753 | 934,093 | 798,082 | 922,923 | |||||||||||||||||||||||||||
11 | Short-term debt | 204,650 | 240,119 | 241,150 | 292,357 | 362,566 | 293,475 | 222,385 | 328,020 | |||||||||||||||||||||||||||
12 | Long-term debt | 538,295 | 569,443 | 589,377 | 547,931 | 521,151 | 582,998 | 553,869 | 552,075 | |||||||||||||||||||||||||||
13 | Total interest-bearing liabilities | 742,945 | 809,562 | 830,527 | 840,288 | 883,717 | 876,473 | 776,254 | 880,095 | |||||||||||||||||||||||||||
14 | Net non-interest-bearing funding | 23,958 | 19,699 | 17,616 | 20,674 | 28,036 | 57,620 | 21,828 | 42,828 | |||||||||||||||||||||||||||
15 | Total funding of interest-earning assets | $ | 766,903 | $ | 829,261 | $ | 848,143 | $ | 860,962 | $ | 911,753 | $ | 934,093 | $ | 798,082 | $ | 922,923 | |||||||||||||||||||
Yield/Cost: | ||||||||||||||||||||||||||||||||||||
16 | Mortgage loans | 5.90 | % | 5.88 | % | 5.72 | % | 5.49 | % | 5.33 | % | 5.38 | % | 5.89 | % | 5.36 | % | |||||||||||||||||||
17 | Mortgage-related securities | 5.17 | 5.04 | 5.08 | 5.41 | 5.02 | 4.69 | 5.11 | 4.85 | |||||||||||||||||||||||||||
18 | Total mortgage-related investments portfolio | 5.26 | 5.14 | 5.16 | 5.42 | 5.06 | 4.79 | 5.20 | 4.93 | |||||||||||||||||||||||||||
19 | Non-mortgage-related securities | 4.10 | 3.31 | 4.40 | 5.67 | 7.53 | 6.96 | 3.73 | 7.19 | |||||||||||||||||||||||||||
20 | Cash and cash equivalents | 3.90 | 2.60 | 2.51 | 1.17 | 0.61 | 0.42 | 2.92 | 0.51 | |||||||||||||||||||||||||||
21 | Federal funds sold and securities purchased under agreements to resell | 3.31 | 2.29 | 2.18 | 0.36 | 0.22 | 0.17 | 2.71 | 0.20 | |||||||||||||||||||||||||||
22 | Yield on total interest-earning assets | 5.16 | 4.93 | 4.93 | 5.06 | 4.67 | 4.42 | 5.04 | 4.54 | |||||||||||||||||||||||||||
23 | Short-term debt | (3.95 | ) | (2.70 | ) | (2.38 | ) | (2.21 | ) | (1.24 | ) | (0.77 | ) | (3.27 | ) | (1.03 | ) | |||||||||||||||||||
24 | Long-term debt | (4.99 | ) | (4.71 | ) | (4.60 | ) | (4.59 | ) | (4.12 | ) | (3.57 | ) | (4.85 | ) | (3.83 | ) | |||||||||||||||||||
25 | Cost of interest-bearing liabilities | (4.70 | ) | (4.11 | ) | (3.96 | ) | (3.76 | ) | (2.94 | ) | (2.63 | ) | (4.40 | ) | (2.79 | ) | |||||||||||||||||||
26 | Expense related to derivatives | (0.18 | ) | (0.17 | ) | (0.18 | ) | (0.15 | ) | (0.13 | ) | (0.13 | ) | (0.17 | ) | (0.13 | ) | |||||||||||||||||||
27 | Impact of net non-interest-bearing funding | 0.15 | 0.10 | 0.09 | 0.09 | 0.09 | 0.17 | 0.13 | 0.14 | |||||||||||||||||||||||||||
28 | Total funding of interest-earning assets | (4.73 | ) | (4.18 | ) | (4.05 | ) | (3.82 | ) | (2.98 | ) | (2.59 | ) | (4.44 | ) | (2.78 | ) | |||||||||||||||||||
29 | Net interest yield | 0.43 | 0.75 | 0.88 | 1.24 | 1.69 | 1.83 | 0.60 | 1.76 | |||||||||||||||||||||||||||
30 | Fully taxable-equivalent adjustments(1) | 0.05 | 0.05 | 0.05 | 0.04 | 0.05 | 0.04 | 0.05 | 0.04 | |||||||||||||||||||||||||||
31 | Net interest yield (fully taxable-equivalent basis) | 0.48 | % | 0.80 | % | 0.93 | % | 1.28 | % | 1.74 | % | 1.87 | % | 0.65 | % | 1.80 | % | |||||||||||||||||||
(1) | The determination of net interest income/yield (fully taxable-equivalent basis), which reflects fully taxable-equivalent adjustments to interest income, involves the conversion of tax-exempt sources of interest income to the equivalent amounts of interest income that would be necessary to derive the same net return if the investments had been subject to income taxes using our federal statutory tax rate of 35%. | |
(2) | Non-performing loans, where interest income is recognized when collected, are included in average balances. | |
(3) | For securities, we calculate average balances based on their unpaid principal balance plus their associated deferred fees and costs (e.g., premiums and discounts), but exclude the effects of mark-to-fair-value changes. |
5
FREDDIE MAC
NET INTEREST INCOME
TABLE 1B
(unaudited)
(dollars in millions)
NET INTEREST INCOME
TABLE 1B
(unaudited)
(dollars in millions)
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||
Line: | 1Q 2008 | 2Q 2008 | 3Q 2008 | 4Q 2008 | 1Q 2009 | 2Q 2009 | 2008 | 2009 | ||||||||||||||||||||||||||||||||||
Net Interest Income: | ||||||||||||||||||||||||||||||||||||||||||
1 | Contractual amounts of net interest income | $ | 1,511 | $ | 2,267 | $ | 2,529 | $ | 2,694 | $ | 4,046 | $ | 4,874 | $ | 3,778 | $ | 8,920 | |||||||||||||||||||||||||
Amortization income (expense), net:(1) | ||||||||||||||||||||||||||||||||||||||||||
2 | Accretion of impairments on available-for-sale securities(2) | — | — | 81 | 470 | 715 | 253 | — | 968 | |||||||||||||||||||||||||||||||||
3 | Asset-related amortization | (58 | ) | (90 | ) | (135 | ) | 24 | (385 | ) | (391 | ) | (148 | ) | (776 | ) | ||||||||||||||||||||||||||
4 | Long-term debt-related amortization | (326 | ) | (305 | ) | (269 | ) | (248 | ) | (217 | ) | (199 | ) | (631 | ) | (416 | ) | |||||||||||||||||||||||||
5 | Total amortization income (expense), net | (384 | ) | (395 | ) | (323 | ) | 246 | 113 | (337 | ) | (779 | ) | (224 | ) | |||||||||||||||||||||||||||
Expense related to derivatives: | ||||||||||||||||||||||||||||||||||||||||||
6 | Amortization of deferred balances in AOCI(3) | (327 | ) | (307 | ) | (308 | ) | (315 | ) | (300 | ) | (282 | ) | (634 | ) | (582 | ) | |||||||||||||||||||||||||
Accrual of periodic settlements of derivatives:(4) | ||||||||||||||||||||||||||||||||||||||||||
7 | Pay-fixed swaps | (2 | ) | (36 | ) | (54 | ) | — | — | — | (38 | ) | — | |||||||||||||||||||||||||||||
8 | Total accrual of periodic settlements of derivatives | (2 | ) | (36 | ) | (54 | ) | — | — | — | (38 | ) | — | |||||||||||||||||||||||||||||
9 | Total expense related to derivatives | (329 | ) | (343 | ) | (362 | ) | (315 | ) | (300 | ) | (282 | ) | (672 | ) | (582 | ) | |||||||||||||||||||||||||
10 | Net interest income | 798 | 1,529 | 1,844 | 2,625 | 3,859 | 4,255 | 2,327 | 8,114 | |||||||||||||||||||||||||||||||||
11 | Fully taxable-equivalent adjustments | 107 | 105 | 98 | 94 | 102 | 99 | 212 | 201 | |||||||||||||||||||||||||||||||||
12 | Net interest income (fully taxable-equivalent basis) | $ | 905 | $ | 1,634 | $ | 1,942 | $ | 2,719 | $ | 3,961 | $ | 4,354 | $ | 2,539 | $ | 8,315 | |||||||||||||||||||||||||
(1) | Represents amortization related to premiums, discounts, deferred fees and other adjustments to the carrying value of our financial instruments and the reclassification of previously deferred balances from AOCI for certain derivatives in cash flow hedge relationships related to individual debt issuances and mortgage purchase transactions. |
(2) | The portion of the impairment charges recognized in earnings expected to be recovered is recognized as net interest income. |
(3) | Represents changes in fair value of derivatives in cash flow hedge relationships that were previously deferred in AOCI and have been reclassified to earnings as the associated hedged forecasted issuance of debt and mortgage purchase transactions affect earnings. |
(4) | Reflects the accrual of periodic cash settlements of all derivatives in qualifying hedge accounting relationships. |
6
FREDDIE MAC
NON-INTEREST INCOME (LOSS)
TABLE 2
(unaudited)
(dollars in millions)
NON-INTEREST INCOME (LOSS)
TABLE 2
(unaudited)
(dollars in millions)
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||
Line: | 1Q 2008 | 2Q 2008 | 3Q 2008 | 4Q 2008 | 1Q 2009 | 2Q 2009 | 2008 | 2009 | ||||||||||||||||||||||||||||||||||
Non-Interest Income (Loss): | ||||||||||||||||||||||||||||||||||||||||||
1 | Management and guarantee income | $ | 789 | $ | 757 | $ | 832 | $ | 992 | $ | 780 | $ | 710 | $ | 1,546 | $ | 1,490 | |||||||||||||||||||||||||
2 | Gains (losses) on guarantee asset | (1,394 | ) | 1,114 | (1,722 | ) | (5,089 | ) | (156 | ) | 1,817 | (280 | ) | 1,661 | ||||||||||||||||||||||||||||
3 | Income on guarantee obligation | 1,169 | 769 | 783 | 2,105 | 910 | 961 | 1,938 | 1,871 | |||||||||||||||||||||||||||||||||
Derivative gains (losses): | ||||||||||||||||||||||||||||||||||||||||||
Foreign-currency denominated derivatives gains (losses):(1) | ||||||||||||||||||||||||||||||||||||||||||
4 | Foreign-currency swaps gains (losses) | 1,237 | (48 | ) | (1,578 | ) | (195 | ) | (573 | ) | 583 | 1,189 | 10 | |||||||||||||||||||||||||||||
5 | Receive-fixed swaps — foreign-currency denominated gains (losses) | 193 | (490 | ) | 228 | 558 | 187 | (63 | ) | (297 | ) | 124 | ||||||||||||||||||||||||||||||
6 | U.S. dollar denominated derivatives gains (losses) | (1,330 | ) | 1,020 | (1,448 | ) | (11,806 | ) | 1,302 | 2,688 | (310 | ) | 3,990 | |||||||||||||||||||||||||||||
7 | Accrual of periodic settlements | (345 | ) | (367 | ) | (282 | ) | (301 | ) | (735 | ) | (847 | ) | (712 | ) | (1,582 | ) | |||||||||||||||||||||||||
8 | Total derivative gains (losses) | (245 | ) | 115 | (3,080 | ) | (11,744 | ) | 181 | 2,361 | (130 | ) | 2,542 | |||||||||||||||||||||||||||||
Gains (losses) on investments: | ||||||||||||||||||||||||||||||||||||||||||
9 | Gains (losses) on trading securities | 971 | (2,279 | ) | (932 | ) | 3,195 | 2,131 | 622 | (1,308 | ) | 2,753 | ||||||||||||||||||||||||||||||
10 | Gains (losses) on sale of mortgage loans | 71 | (5 | ) | 31 | 20 | 151 | 143 | 66 | 294 | ||||||||||||||||||||||||||||||||
11 | Gains (losses) on sale of available-for-sale securities | 215 | 38 | 287 | 6 | 51 | 205 | 253 | 256 | |||||||||||||||||||||||||||||||||
Impairment-related(2): | ||||||||||||||||||||||||||||||||||||||||||
12 | Total other-than-temporary impairment ofavailable-for-sale securities | (71 | ) | (1,040 | ) | (9,106 | ) | (7,465 | ) | (7,130 | ) | (10,473 | ) | (1,111 | ) | (17,603 | ) | |||||||||||||||||||||||||
13 | Portion of other-than-temporary impairment recognized in AOCI | — | — | — | — | — | 8,260 | — | 8,260 | |||||||||||||||||||||||||||||||||
14 | Net impairment ofavailable-for-sale securities recognized in earnings | (71 | ) | (1,040 | ) | (9,106 | ) | (7,465 | ) | (7,130 | ) | (2,213 | ) | (1,111 | ) | (9,343 | ) | |||||||||||||||||||||||||
15 | Lower-of-cost-or-fair-value adjustments | 33 | (41 | ) | (20 | ) | (2 | ) | (129 | ) | (102 | ) | (8 | ) | (231 | ) | ||||||||||||||||||||||||||
16 | Gains (losses) on mortgage loans elected at fair value | — | — | (7 | ) | (7 | ) | (18 | ) | (71 | ) | — | (89 | ) | ||||||||||||||||||||||||||||
17 | Total gains (losses) on investments | 1,219 | (3,327 | ) | (9,747 | ) | (4,253 | ) | (4,944 | ) | (1,416 | ) | (2,108 | ) | (6,360 | ) | ||||||||||||||||||||||||||
Gains (losses) on debt recorded at fair value:(1) | ||||||||||||||||||||||||||||||||||||||||||
18 | Translation gains (losses) | (1,214 | ) | 88 | 1,665 | 171 | 580 | (655 | ) | (1,126 | ) | (75 | ) | |||||||||||||||||||||||||||||
19 | Market value adjustments | (171 | ) | 481 | (165 | ) | (449 | ) | (113 | ) | (142 | ) | 310 | (255 | ) | |||||||||||||||||||||||||||
20 | Total gains (losses) on debt recorded at fair value | (1,385 | ) | 569 | 1,500 | (278 | ) | 467 | (797 | ) | (816 | ) | (330 | ) | ||||||||||||||||||||||||||||
21 | Gains (losses) on debt retirement | 305 | (29 | ) | 36 | (103 | ) | (104 | ) | (156 | ) | 276 | (260 | ) | ||||||||||||||||||||||||||||
22 | Recoveries on loans impaired upon purchase | 226 | 121 | 91 | 57 | 50 | 70 | 347 | 120 | |||||||||||||||||||||||||||||||||
23 | Low-income housing tax credit partnerships | (117 | ) | (108 | ) | (121 | ) | (107 | ) | (106 | ) | (167 | ) | (225 | ) | (273 | ) | |||||||||||||||||||||||||
24 | Trust management income (expense) | 3 | (19 | ) | 4 | (58 | ) | (207 | ) | (238 | ) | (16 | ) | (445 | ) | |||||||||||||||||||||||||||
25 | Other income | 44 | 94 | 21 | 36 | 41 | 70 | 138 | 111 | |||||||||||||||||||||||||||||||||
26 | Total non-interest income (loss) | $ | 614 | $ | 56 | $ | (11,403 | ) | $ | (18,442 | ) | $ | (3,088 | ) | $ | 3,215 | $ | 670 | $ | 127 | ||||||||||||||||||||||
(1) | We adopted Statement of Financial Accounting Standards, or SFAS, No. 159,“The Fair Value Option for Financial Assets and Financial Liabilities, Including an Amendment of FASB Statement No. 115,” on January 1, 2008. We initially elected the fair value option for our foreign-currency denominated debt. Due to this election, foreign currency exposure is a component of gains (losses) on debt recorded at fair value. We use a combination of foreign-currency swaps and foreign-currency denominated receive-fixed swaps to hedge the changes in fair value of our foreign-currency denominated debt related to fluctuations in exchange rates and interest rates. | |
(2) | We adopted FSPFAS 115-2 andFAS 124-2 effective April 1, 2009. See “NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Change in Accounting Principles” to our consolidated financial statements for further information. |
7
FREDDIE MAC
MANAGEMENT AND GUARANTEE INCOME & RELATED INFORMATION
TABLE 3
(unaudited)
(dollars in millions)
MANAGEMENT AND GUARANTEE INCOME & RELATED INFORMATION
TABLE 3
(unaudited)
(dollars in millions)
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||
Line: | 1Q 2008 | 2Q 2008 | 3Q 2008 | 4Q 2008 | 1Q 2009 | 2Q 2009 | 2008 | 2009 | ||||||||||||||||||||||||||||
Management and Guarantee Income: | ||||||||||||||||||||||||||||||||||||
1 | Contractual management and guarantee fees | $ | 757 | $ | 778 | $ | 796 | $ | 793 | $ | 782 | $ | 776 | $ | 1,535 | $ | 1,558 | |||||||||||||||||||
2 | Amortization of deferred fees included in other liabilities(1) | 32 | (21 | ) | 36 | 199 | (2 | ) | (66 | ) | 11 | (68 | ) | |||||||||||||||||||||||
3 | Total management and guarantee income | $ | 789 | $ | 757 | $ | 832 | $ | 992 | $ | 780 | $ | 710 | $ | 1,546 | $ | 1,490 | |||||||||||||||||||
4 | Contractual management and guarantee fees | 17.4 bp | 17.5 bp | 17.6 bp | 17.5 bp | 17.4 bp | 17.3 bp | 17.5 bp | 17.4 bp | |||||||||||||||||||||||||||
5 | Amortization of deferred fees included in other liabilities | 0.8 | (0.5) | 0.8 | 4.4 | 0.0 | (1.5) | 0.1 | (0.8) | |||||||||||||||||||||||||||
6 | Total management and guarantee income | 18.2 bp | 17.0 bp | 18.4 bp | 21.9 bp | 17.4 bp | 15.8 bp | 17.6 bp | 16.6 bp | |||||||||||||||||||||||||||
7 | Unamortized balance of deferred fees included in other liabilities, at period end(1) | $ | 379 | $ | 403 | $ | 371 | $ | 176 | $ | 181 | $ | 250 | $ | 403 | $ | 250 | |||||||||||||||||||
Gains (Losses) on Guarantee Asset: | ||||||||||||||||||||||||||||||||||||
8 | Contractual management and guarantee fees | $ | (689 | ) | $ | (720 | ) | $ | (730 | ) | $ | (732 | ) | $ | (733 | ) | $ | (731 | ) | $ | (1,409 | ) | $ | (1,464 | ) | |||||||||||
9 | Portion attributable to imputed interest income | 215 | 243 | 299 | 364 | 249 | 251 | 458 | 500 | |||||||||||||||||||||||||||
10 | Return of investment on guarantee asset | (474 | ) | (477 | ) | (431 | ) | (368 | ) | (484 | ) | (480 | ) | (951 | ) | (964 | ) | |||||||||||||||||||
11 | Change in fair value of future management and guarantee fees | (920 | ) | 1,591 | (1,291 | ) | (4,721 | ) | 328 | 2,297 | 671 | 2,625 | ||||||||||||||||||||||||
12 | Gains (losses) on guarantee asset | $ | (1,394 | ) | $ | 1,114 | $ | (1,722 | ) | $ | (5,089 | ) | $ | (156 | ) | $ | 1,817 | $ | (280 | ) | $ | 1,661 | ||||||||||||||
Changes in Guarantee Asset: | ||||||||||||||||||||||||||||||||||||
13 | Beginning balance | $ | 9,591 | $ | 9,134 | $ | 11,019 | $ | 9,679 | $ | 4,847 | $ | 5,026 | $ | 9,591 | $ | 4,847 | |||||||||||||||||||
14 | Additions, net | 937 | 858 | 382 | 262 | 339 | 741 | 1,795 | 1,080 | |||||||||||||||||||||||||||
15 | Other | — | (87 | ) | — | (5 | ) | (4 | ) | (8 | ) | (87 | ) | (12 | ) | |||||||||||||||||||||
16 | Gains (losses) on guarantee asset | (1,394 | ) | 1,114 | (1,722 | ) | (5,089 | ) | (156 | ) | 1,817 | (280 | ) | 1,661 | ||||||||||||||||||||||
17 | Ending balance | $ | 9,134 | $ | 11,019 | $ | 9,679 | $ | 4,847 | $ | 5,026 | $ | 7,576 | $ | 11,019 | $ | 7,576 | |||||||||||||||||||
Changes in Guarantee Obligation: | ||||||||||||||||||||||||||||||||||||
18 | Beginning balance | $ | 13,712 | $ | 13,669 | $ | 14,022 | $ | 13,874 | $ | 12,098 | $ | 11,759 | $ | 13,712 | $ | 12,098 | |||||||||||||||||||
19 | Deferred guarantee income of newly-issued guarantees | 1,132 | 1,255 | 638 | 341 | 584 | 1,177 | 2,387 | 1,761 | |||||||||||||||||||||||||||
20 | Other(2) | (6 | ) | (133 | ) | (3 | ) | (12 | ) | (13 | ) | (19 | ) | (139 | ) | (32 | ) | |||||||||||||||||||
21 | Income on guarantee obligation | (1,169 | ) | (769 | ) | (783 | ) | (2,105 | ) | (910 | ) | (961 | ) | (1,938 | ) | (1,871 | ) | |||||||||||||||||||
22 | Ending balance | $ | 13,669 | $ | 14,022 | $ | 13,874 | $ | 12,098 | $ | 11,759 | $ | 11,956 | $ | 14,022 | $ | 11,956 | |||||||||||||||||||
�� |
(1) | Amortization of deferred fees for guarantees issued after 2002 is recorded in income on guarantee obligation. |
(2) | Represents (a) portions of the guarantee obligation that correspond to incurred credit losses reclassified to reserve for guarantee losses on PCs, and (b) reductions associated with the extinguishment of our previously issued long-term credit guarantees. |
8
FREDDIE MAC
DERIVATIVES NOT IN HEDGE ACCOUNTING RELATIONSHIPS
TABLE 4
(unaudited)
(dollars in millions)
DERIVATIVES NOT IN HEDGE ACCOUNTING RELATIONSHIPS
TABLE 4
(unaudited)
(dollars in millions)
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||
Line: | 1Q 2008 | 2Q 2008 | 3Q 2008 | 4Q 2008 | 1Q 2009 | 2Q 2009 | 2008 | 2009 | ||||||||||||||||||||||||||||||||||
Derivative Gains (Losses): | ||||||||||||||||||||||||||||||||||||||||||
Interest-rate swaps: | ||||||||||||||||||||||||||||||||||||||||||
Receive-fixed swaps | ||||||||||||||||||||||||||||||||||||||||||
1 | Foreign-currency denominated | $ | 193 | $ | (490 | ) | $ | 228 | $ | 558 | $ | 187 | $ | (63 | ) | $ | (297 | ) | $ | 124 | ||||||||||||||||||||||
2 | U.S. dollar denominated | 9,503 | (7,204 | ) | 2,101 | 25,332 | (1,803 | ) | (10,187 | ) | 2,299 | (11,990 | ) | |||||||||||||||||||||||||||||
3 | Total receive-fixed swaps | 9,696 | (7,694 | ) | 2,329 | 25,890 | (1,616 | ) | (10,250 | ) | 2,002 | (11,866 | ) | |||||||||||||||||||||||||||||
4 | Pay-fixed swaps | (15,133 | ) | 11,259 | (5,296 | ) | (49,125 | ) | 6,705 | 18,524 | (3,874 | ) | 25,229 | |||||||||||||||||||||||||||||
5 | Basis (floating to floating) | 2 | (23 | ) | (54 | ) | 184 | 1 | (116 | ) | (21 | ) | (115 | ) | ||||||||||||||||||||||||||||
6 | Total interest-rate swaps | (5,435 | ) | 3,542 | (3,021 | ) | (23,051 | ) | 5,090 | 8,158 | (1,893 | ) | 13,248 | |||||||||||||||||||||||||||||
Option-based: | ||||||||||||||||||||||||||||||||||||||||||
Call swaptions | ||||||||||||||||||||||||||||||||||||||||||
7 | Purchased | 3,240 | (2,542 | ) | 1,824 | 14,720 | (3,387 | ) | (5,910 | ) | 698 | (9,297 | ) | |||||||||||||||||||||||||||||
8 | Written | (6 | ) | 27 | (7 | ) | — | 117 | 94 | 21 | 211 | |||||||||||||||||||||||||||||||
Put swaptions | ||||||||||||||||||||||||||||||||||||||||||
9 | Purchased | (125 | ) | 72 | 22 | (1,064 | ) | 45 | 1,002 | (53 | ) | 1,047 | ||||||||||||||||||||||||||||||
10 | Written | 3 | (93 | ) | 154 | 92 | 13 | (370 | ) | (90 | ) | (357 | ) | |||||||||||||||||||||||||||||
11 | Other option-based derivatives(1) | 24 | (88 | ) | 95 | 732 | 25 | (240 | ) | (64 | ) | (215 | ) | |||||||||||||||||||||||||||||
12 | Total option-based | 3,136 | (2,624 | ) | 2,088 | 14,480 | (3,187 | ) | (5,424 | ) | 512 | (8,611 | ) | |||||||||||||||||||||||||||||
13 | Futures | 647 | (154 | ) | (534 | ) | (2,033 | ) | 28 | (252 | ) | 493 | (224 | ) | ||||||||||||||||||||||||||||
14 | Foreign-currency swaps(2) | 1,237 | (48 | ) | (1,578 | ) | (195 | ) | (573 | ) | 583 | 1,189 | 10 | |||||||||||||||||||||||||||||
15 | Forward purchase and sale commitments | 511 | (243 | ) | 280 | (660 | ) | (412 | ) | 140 | 268 | (272 | ) | |||||||||||||||||||||||||||||
16 | Credit derivatives | 4 | 10 | (2 | ) | 15 | 1 | (6 | ) | 14 | (5 | ) | ||||||||||||||||||||||||||||||
17 | Swap guarantee derivatives | — | (1 | ) | (4 | ) | 1 | (31 | ) | 9 | (1 | ) | (22 | ) | ||||||||||||||||||||||||||||
18 | Other(3) | — | — | (27 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||
19 | Subtotal | 100 | 482 | (2,798 | ) | (11,443 | ) | 916 | 3,208 | 582 | 4,124 | |||||||||||||||||||||||||||||||
Accrual of periodic settlements: | ||||||||||||||||||||||||||||||||||||||||||
20 | Receive-fixed interest-rate swaps(4) | 73 | 648 | 753 | 454 | 1,088 | 1,380 | 721 | 2,468 | |||||||||||||||||||||||||||||||||
21 | Pay-fixed interest-rate swaps | (477 | ) | (1,118 | ) | (1,128 | ) | (759 | ) | (1,942 | ) | (2,269 | ) | (1,595 | ) | (4,211 | ) | |||||||||||||||||||||||||
22 | Foreign-currency swaps | 57 | 101 | 105 | 56 | 49 | 22 | 158 | 71 | |||||||||||||||||||||||||||||||||
23 | Other | 2 | 2 | (12 | ) | (52 | ) | 70 | 20 | 4 | 90 | |||||||||||||||||||||||||||||||
24 | Total accrual of periodic settlements | (345 | ) | (367 | ) | (282 | ) | (301 | ) | (735 | ) | (847 | ) | (712 | ) | (1,582 | ) | |||||||||||||||||||||||||
25 | Total | $ | (245 | ) | $ | 115 | $ | (3,080 | ) | $ | (11,744 | ) | $ | 181 | $ | 2,361 | $ | (130 | ) | $ | 2,542 | |||||||||||||||||||||
(1) | Primarily represents purchased interest rate caps and floors, purchased put options on agency mortgage-related securities, as well as certain written options, including guarantees of stated final maturity of issued Structured Securities and written call options on agency mortgage-related securities. | |
(2) | Foreign-currency swaps are defined as swaps in which the net settlement is based on one leg calculated in a foreign-currency and the other leg calculated in U.S. dollars. | |
(3) | Relates to the bankruptcy of Lehman Brothers Holdings, Inc. for the third quarter of 2008. | |
(4) | Includes imputed interest on zero-coupon swaps. |
9
FREDDIE MAC
NON-INTEREST EXPENSE
TABLE 5
(unaudited)
(dollars in millions)
NON-INTEREST EXPENSE
TABLE 5
(unaudited)
(dollars in millions)
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||
Line: | 1Q 2008 | 2Q 2008 | 3Q 2008 | 4Q 2008 | 1Q 2009 | 2Q 2009 | 2008 | 2009 | ||||||||||||||||||||||||||||
Non-Interest Expense: | ||||||||||||||||||||||||||||||||||||
Administrative expenses: | ||||||||||||||||||||||||||||||||||||
1 | Salaries and employee benefits(1) | $ | 231 | $ | 241 | $ | 133 | $ | 223 | $ | 207 | $ | 221 | $ | 472 | $ | 428 | |||||||||||||||||||
2 | Professional services | 72 | 55 | 61 | 74 | 60 | 64 | 127 | 124 | |||||||||||||||||||||||||||
3 | Occupancy expense | 15 | 18 | 16 | 18 | 18 | 15 | 33 | 33 | |||||||||||||||||||||||||||
4 | Other administrative expenses | 79 | 90 | 98 | 81 | 87 | 83 | 169 | 170 | |||||||||||||||||||||||||||
5 | Total administrative expenses | 397 | 404 | 308 | 396 | 372 | 383 | 801 | 755 | |||||||||||||||||||||||||||
6 | Provision for credit losses | 1,240 | 2,537 | 5,702 | 6,953 | 8,791 | 5,199 | 3,777 | 13,990 | |||||||||||||||||||||||||||
7 | Real estate owned, or REO, operations expense | 208 | 265 | 333 | 291 | 306 | 9 | 473 | 315 | |||||||||||||||||||||||||||
8 | Losses on loans purchased | 51 | 120 | 252 | 1,211 | 2,012 | 1,199 | 171 | 3,211 | |||||||||||||||||||||||||||
9 | Securities administrator loss on investment activity(2) | — | — | 1,082 | — | — | — | — | — | |||||||||||||||||||||||||||
10 | Other expenses | 87 | 108 | 89 | 151 | 78 | 97 | 195 | 175 | |||||||||||||||||||||||||||
11 | Total non-interest expense | $ | 1,983 | $ | 3,434 | $ | 7,766 | $ | 9,002 | $ | 11,559 | $ | 6,887 | $ | 5,417 | $ | 18,446 | |||||||||||||||||||
(1) | In the third quarter of 2008, we partially reversed our short-term performance compensation that had been previously accrued. Thereafter, we incurred short-term compensation at a reduced rate. |
(2) | In accordance with PC trust agreements, we manage the funds of the securitization trusts created for administration of remittances on our PCs. To the extent there is an investment loss related to these funds, we, as the administrator, make up the shortfall. We recognized losses during the third quarter of 2008 on loans made to Lehman Brothers Holdings, Inc., on the trusts’ behalf. |
10
FREDDIE MAC
CREDIT QUALITY INDICATORS
TABLE 6
(unaudited)
(dollars in millions)
CREDIT QUALITY INDICATORS
TABLE 6
(unaudited)
(dollars in millions)
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||
Line: | 1Q 2008 | 2Q 2008 | 3Q 2008 | 4Q 2008 | 1Q 2009 | 2Q 2009 | 2008 | 2009 | ||||||||||||||||||||||||||||
Credit Enhancements: | ||||||||||||||||||||||||||||||||||||
1 | Credit-enhanced percentage of new business purchases | 25 | % | 19 | % | 23 | % | 16 | % | 8 | % | 6 | % | 22 | % | 7 | % | |||||||||||||||||||
2 | Credit-enhanced percentage of total mortgage portfolio(1) (period end) | 17 | % | 18 | % | 18 | % | 18 | % | 17 | % | 17 | % | 18 | % | 17 | % | |||||||||||||||||||
Delinquencies (at period end):(2)(3) | ||||||||||||||||||||||||||||||||||||
Single-family: | ||||||||||||||||||||||||||||||||||||
Non-credit-enhanced portfolio | ||||||||||||||||||||||||||||||||||||
3 | Delinquency rate | 0.54 | % | 0.67 | % | 0.87 | % | 1.26 | % | 1.73 | % | 2.13 | % | 0.67 | % | 2.13 | % | |||||||||||||||||||
4 | Total number of delinquent loans | 54,923 | 68,080 | 88,786 | 127,569 | 174,350 | 215,078 | 68,080 | 215,078 | |||||||||||||||||||||||||||
Credit-enhanced portfolio | ||||||||||||||||||||||||||||||||||||
5 | Delinquency rate | 1.81 | % | 2.10 | % | 2.75 | % | 3.79 | % | 4.85 | % | 5.82 | % | 2.10 | % | 5.82 | % | |||||||||||||||||||
6 | Total number of delinquent loans | 39,942 | 47,216 | 62,729 | 85,719 | 107,427 | 125,257 | 47,216 | 125,257 | |||||||||||||||||||||||||||
Total single-family portfolio | ||||||||||||||||||||||||||||||||||||
7 | Delinquency rate | 0.77 | % | 0.93 | % | 1.22 | % | 1.72 | % | 2.29 | % | 2.78 | % | 0.93 | % | 2.78 | % | |||||||||||||||||||
8 | Total number of delinquent loans | 94,865 | 115,296 | 151,515 | 213,288 | 281,777 | 340,335 | 115,296 | 340,335 | |||||||||||||||||||||||||||
Multifamily: | ||||||||||||||||||||||||||||||||||||
9 | Delinquency rate | 0.01 | % | 0.04 | % | 0.01 | % | 0.01 | % | 0.09 | % | 0.11 | % | 0.04 | % | 0.11 | % | |||||||||||||||||||
10 | Net carrying value of delinquent loans | $ | 7 | $ | 34 | $ | 12 | $ | 12 | $ | 81 | $ | 102 | $ | 34 | $ | 102 | |||||||||||||||||||
Foreclosure alternatives(3)(4) (number of units): | ||||||||||||||||||||||||||||||||||||
11 | Repayment plans | 12,387 | 10,691 | 10,270 | 8,714 | 10,459 | 7,409 | 23,078 | 17,868 | |||||||||||||||||||||||||||
12 | Loan modifications(5) | 4,246 | 4,687 | 8,456 | 17,695 | 24,623 | 15,603 | 8,933 | 40,226 | |||||||||||||||||||||||||||
13 | Forbearance agreements | 817 | 785 | 828 | 1,762 | 1,853 | 1,564 | 1,602 | 3,417 | |||||||||||||||||||||||||||
14 | Pre-foreclosure sales | 831 | 1,252 | 1,911 | 2,375 | 3,093 | 4,821 | 2,083 | 7,914 | |||||||||||||||||||||||||||
15 | Total foreclosure alternatives(5) | 18,281 | 17,415 | 21,465 | 30,546 | 40,028 | 29,397 | 35,696 | 69,425 | |||||||||||||||||||||||||||
Non-performing assets(3)(6) (at period end): | ||||||||||||||||||||||||||||||||||||
16 | Non-performing mortgage loans | $ | 20,535 | $ | 25,287 | $ | 32,671 | $ | 45,130 | $ | 60,897 | $ | 74,103 | $ | 25,287 | $ | 74,103 | |||||||||||||||||||
17 | REO assets, net | 2,214 | 2,580 | 3,224 | 3,255 | 2,948 | 3,416 | 2,580 | 3,416 | |||||||||||||||||||||||||||
18 | Total non-performing assets | $ | 22,749 | $ | 27,867 | $ | 35,895 | $ | 48,385 | $ | 63,845 | $ | 77,519 | $ | 27,867 | $ | 77,519 | |||||||||||||||||||
REO Operations Expense: | ||||||||||||||||||||||||||||||||||||
19 | Single-family | $ | (208 | ) | $ | (265 | ) | $ | (333 | ) | $ | (291 | ) | $ | (306 | ) | $ | (1 | ) | $ | (473 | ) | $ | (307 | ) | |||||||||||
20 | Multifamily | — | — | — | — | — | (8 | ) | — | (8 | ) | |||||||||||||||||||||||||
21 | Total | $ | (208 | ) | $ | (265 | ) | $ | (333 | ) | $ | (291 | ) | $ | (306 | ) | $ | (9 | ) | $ | (473 | ) | $ | (315 | ) | |||||||||||
Loan Loss Reserves:(7) | ||||||||||||||||||||||||||||||||||||
22 | Beginning balance | $ | 2,822 | $ | 3,872 | $ | 5,813 | $ | 10,220 | $ | 15,618 | $ | 22,678 | $ | 2,822 | $ | 15,618 | |||||||||||||||||||
23 | Provision for credit losses(8) | 1,240 | 2,537 | 5,702 | 6,953 | 8,791 | 5,199 | 3,777 | 13,990 | |||||||||||||||||||||||||||
24 | Charge-offs — single-family, net | (163 | ) | (451 | ) | (856 | ) | (815 | ) | (972 | ) | (1,840 | ) | (614 | ) | (2,812 | ) | |||||||||||||||||||
25 | Charge-offs — multifamily, net | — | — | (5 | ) | (3 | ) | (2 | ) | (2 | ) | — | (4 | ) | ||||||||||||||||||||||
26 | Transfers, net | (27 | ) | (145 | ) | (434 | ) | (737 | ) | (757 | ) | (838 | ) | (172 | ) | (1,595 | ) | |||||||||||||||||||
27 | Ending balance | $ | 3,872 | $ | 5,813 | $ | 10,220 | $ | 15,618 | $ | 22,678 | $ | 25,197 | $ | 5,813 | $ | 25,197 | |||||||||||||||||||
Total Credit Losses:(9) | ||||||||||||||||||||||||||||||||||||
28 | Total credit losses | $ | 528 | $ | 810 | $ | 1,275 | $ | 1,154 | $ | 1,320 | $ | 1,916 | $ | 1,338 | $ | 3,236 | |||||||||||||||||||
29 | Annualized credit losses / average total mortgage portfolio(10) | 11.6 bp | 17.3 bp | 26.8 bp | 24.1 bp | 27.7 bp | 39.8 bp | 14.5 bp | 33.8 bp | |||||||||||||||||||||||||||
(1) | Based on the total mortgage portfolio, excluding Freddie Mac Structured Transactions, non-Freddie Mac mortgage-related securities and that portion of Structured Securities that is backed by Ginnie Mae Certificates. | |
(2) | Single-family delinquencies are based on the number of mortgages 90 days or more delinquent or in foreclosure while multifamily delinquencies are based on net carrying value of mortgages 90 days or more delinquent or in foreclosure. Delinquencies exclude mortgage loans whose original contractual terms have been modified under an agreement with the borrower as long as the borrower complies with the modified contractual terms. | |
(3) | Based on loans held by us on our consolidated balance sheet as well as those underlying our PCs, Structured Securities and other mortgage guarantees. Foreclosure alternative information excludes Structured Transactions and that portion of Structured Securities that is backed by Ginnie Mae Certificates. | |
(4) | For more information on our foreclosure alternatives and loss mitigation activities see “Item 7. — CREDIT RISKS — Loss Mitigation Activities” in ourForm 10-K filed March 11, 2009. | |
(5) | Excludes approximately 16,000 loans during the second quarter of 2009 that entered the three-month trial period payment plans as part of the HAMP process. See “Item 2. — CREDIT RISKS — Loss Mitigation Activities,” in ourForm 10-Q filed August 7, 2009. | |
(6) | For more information on our non-performing assets see “Item 7. — CREDIT RISKS — Non-Performing Assets” in ourForm 10-K filed March 11, 2009. | |
(7) | Loan loss reserves equals the sum of allowance for loan losses (consolidated balance sheets — Line 8) and reserve for guarantee losses on Participation Certificates (consolidated balance sheets — Line 24). | |
(8) | Provision for credit losses includes our provision for losses incurred on our mortgage loans held for investment, which are a component of our mortgage-related investments portfolio, and our provision for guarantee losses incurred on mortgage loans underlying our issued PCs, Structured Securities and other mortgage-related financial guarantees. | |
(9) | Equal to REO operations income (expense) (Line 21) plus Charge-offs, net (Lines 24 and 25) plus amounts previously transferred to reduce the carrying value of loans purchased under financial guarantees. The previously transferred reserves totaled $105 million and $251 million for the six months ended June 30, 2009 and 2008, respectively. Excludes other market-based credit losses recognized on our consolidated statements of operations, including losses on loans purchased, losses on certain credit guarantees, securities administrator loss on investment activity and other than temporary impairments on our mortgage-related investments portfolio. | |
(10) | Calculated based on the average total mortgage portfolio, excluding non-Freddie Mac mortgage-related securities and that portion of Structured Securities that is backed by Ginnie Mae Certificates. |
11
FREDDIE MAC
SINGLE-FAMILY NON-CREDIT-ENHANCED DELINQUENCY AND FORECLOSURE ACTIVITY BY REGION(1)
TABLE 7
(unaudited)
SINGLE-FAMILY NON-CREDIT-ENHANCED DELINQUENCY AND FORECLOSURE ACTIVITY BY REGION(1)
TABLE 7
(unaudited)
2Q 2008 | 3Q 2008 | 4Q 2008 | 1Q 2009 | 2Q 2009 | ||||||||||||||||||||||||||||||||||||||||||
Number of Loans | Number of Loans | Number of Loans | Number of Loans | Number of Loans | ||||||||||||||||||||||||||||||||||||||||||
Line: | (in thousands) | Percent(3) | (in thousands) | Percent(3) | (in thousands) | Percent(3) | (in thousands) | Percent(3) | (in thousands) | �� | Percent(3) | |||||||||||||||||||||||||||||||||||
Northeast(2) | ||||||||||||||||||||||||||||||||||||||||||||||
1 | Total number of loans | 2,339 | 2,341 | 2,332 | 2,320 | 2,289 | ||||||||||||||||||||||||||||||||||||||||
2 | Delinquent three or more payments | 6 | 0.24% | 8 | 0.35% | 12 | 0.53% | 16 | 0.69% | 19 | 0.83% | |||||||||||||||||||||||||||||||||||
3 | Foreclosures approved and in-process | 6 | 0.29% | 8 | 0.34% | 10 | 0.43% | 14 | 0.60% | 18 | 0.80% | |||||||||||||||||||||||||||||||||||
4 | Total delinquent loans | 12 | 0.53% | 16 | 0.69% | 22 | 0.96% | 30 | 1.29% | 37 | 1.63% | |||||||||||||||||||||||||||||||||||
Southeast(2) | ||||||||||||||||||||||||||||||||||||||||||||||
5 | Total number of loans | 1,951 | 1,955 | 1,950 | 1,939 | 1,940 | ||||||||||||||||||||||||||||||||||||||||
6 | Delinquent three or more payments | 7 | 0.37% | 10 | 0.50% | 16 | 0.82% | 20 | 1.03% | 22 | 1.16% | |||||||||||||||||||||||||||||||||||
7 | Foreclosures approved and in-process | 12 | 0.61% | 16 | 0.81% | 21 | 1.04% | 28 | 1.46% | 36 | 1.84% | |||||||||||||||||||||||||||||||||||
8 | Total delinquent loans | 19 | 0.98% | 26 | 1.31% | 37 | 1.86% | 48 | 2.49% | 58 | 3.00% | |||||||||||||||||||||||||||||||||||
North Central(2) | ||||||||||||||||||||||||||||||||||||||||||||||
9 | Total number of loans | 2,323 | 2,305 | 2,289 | 2,270 | 2,268 | ||||||||||||||||||||||||||||||||||||||||
10 | Delinquent three or more payments | 6 | 0.24% | 8 | 0.32% | 11 | 0.49% | 14 | 0.59% | 17 | 0.74% | |||||||||||||||||||||||||||||||||||
11 | Foreclosures approved and in-process | 8 | 0.35% | 9 | 0.40% | 11 | 0.49% | 16 | 0.71% | 18 | 0.81% | |||||||||||||||||||||||||||||||||||
12 | Total delinquent loans | 14 | 0.59% | 17 | 0.72% | 22 | 0.98% | 30 | 1.30% | 35 | 1.55% | |||||||||||||||||||||||||||||||||||
Southwest(2) | ||||||||||||||||||||||||||||||||||||||||||||||
13 | Total number of loans | 1,362 | 1,364 | 1,361 | 1,351 | 1,349 | ||||||||||||||||||||||||||||||||||||||||
14 | Delinquent three or more payments | 2 | 0.19% | 3 | 0.24% | 5 | 0.40% | 6 | 0.44% | 7 | 0.51% | |||||||||||||||||||||||||||||||||||
15 | Foreclosures approved and in-process | 3 | 0.19% | 3 | 0.22% | 4 | 0.28% | 5 | 0.38% | 6 | 0.45% | |||||||||||||||||||||||||||||||||||
16 | Total delinquent loans | 5 | 0.38% | 6 | 0.46% | 9 | 0.68% | 11 | 0.82% | 13 | 0.96% | |||||||||||||||||||||||||||||||||||
West(2) | ||||||||||||||||||||||||||||||||||||||||||||||
17 | Total number of loans | 2,192 | 2,212 | 2,218 | 2,218 | 2,232 | ||||||||||||||||||||||||||||||||||||||||
18 | Delinquent three or more payments | 7 | 0.30% | 11 | 0.50% | 19 | 0.86% | 26 | 1.16% | 33 | 1.47% | |||||||||||||||||||||||||||||||||||
19 | Foreclosures approved and in-process | 11 | 0.50% | 13 | 0.58% | 18 | 0.81% | 29 | 1.34% | 39 | 1.72% | |||||||||||||||||||||||||||||||||||
20 | Total delinquent loans | 18 | 0.80% | 24 | 1.08% | 37 | 1.67% | 55 | 2.50% | 72 | 3.19% | |||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||||||||
21 | Total number of loans | 10,168 | 10,177 | 10,150 | 10,098 | 10,078 | ||||||||||||||||||||||||||||||||||||||||
22 | Delinquent three or more payments | 28 | 0.27% | 40 | 0.39% | 64 | 0.64% | 82 | 0.80% | 98 | 0.97% | |||||||||||||||||||||||||||||||||||
23 | Foreclosures approved and in-process | 40 | 0.40% | 49 | 0.48% | 64 | 0.62% | 92 | 0.93% | 117 | 1.16% | |||||||||||||||||||||||||||||||||||
24 | Total delinquent loans | 68 | 0.67% | 89 | 0.87% | 128 | 1.26% | 174 | 1.73% | 215 | 2.13% | |||||||||||||||||||||||||||||||||||
25 | 90-day or more delinquency to REO, transition rate(4) | 22.8% | 25.4% | 25.5% | 24.8% | 24.7% | ||||||||||||||||||||||||||||||||||||||||
(1) | Includes single-family non-credit-enhanced mortgage loans in our mortgage-related investments portfolio and those underlying our guaranteed PCs and Structured Securities issued, but excluding Structured Transactions and that portion of Structured Securities backed by Ginnie Mae Certificates. | |
(2) | Region Designation: 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); Southwest (AR, CO, KS, LA, MO, NE, NM, OK, TX, WY); West (AK, AZ, CA, GU, HI, ID, MT, NV, OR, UT, WA). | |
(3) | Percentages are calculated based on loan counts. | |
(4) | Calculated based on all loans that have been reported as 90 days or more delinquent or in foreclosure in the same quarter of the preceding year that have transitioned to REO. The rate excludes other dispositions that can result in a loss, such as short-sales anddeed-in-lieu transactions. |
12
FREDDIE MAC
REAL ESTATE OWNED (REO) ACTIVITY
TABLE 8
(unaudited)
REAL ESTATE OWNED (REO) ACTIVITY
TABLE 8
(unaudited)
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||
Line: | 1Q 2008 | 2Q 2008 | 3Q 2008 | 4Q 2008 | 1Q 2009 | 2Q 2009 | 2008 | 2009 | ||||||||||||||||||||||||||||
Property Units, by Region:(1) | ||||||||||||||||||||||||||||||||||||
Northeast | ||||||||||||||||||||||||||||||||||||
1 | Beginning Balance | 1,474 | 2,119 | 2,429 | 2,793 | 2,753 | 2,636 | 1,474 | 2,753 | |||||||||||||||||||||||||||
2 | Properties Acquired | 1,267 | 1,310 | 1,485 | 1,063 | 1,123 | 1,827 | 2,577 | 2,950 | |||||||||||||||||||||||||||
3 | Properties Disposed | (622 | ) | (1,000 | ) | (1,121 | ) | (1,103 | ) | (1,240 | ) | (1,283 | ) | (1,622 | ) | (2,523 | ) | |||||||||||||||||||
4 | Ending Property Inventory | 2,119 | 2,429 | 2,793 | 2,753 | 2,636 | 3,180 | 2,429 | 3,180 | |||||||||||||||||||||||||||
Southeast | ||||||||||||||||||||||||||||||||||||
5 | Beginning Balance | 2,686 | 3,259 | 3,924 | 4,851 | 5,172 | 5,689 | 2,686 | 5,172 | |||||||||||||||||||||||||||
6 | Properties Acquired | 1,983 | 2,614 | 3,231 | 2,897 | 3,555 | 4,441 | 4,597 | 7,996 | |||||||||||||||||||||||||||
7 | Properties Disposed | (1,410 | ) | (1,949 | ) | (2,304 | ) | (2,576 | ) | (3,038 | ) | (3,634 | ) | (3,359 | ) | (6,672 | ) | |||||||||||||||||||
8 | Ending Property Inventory | 3,259 | 3,924 | 4,851 | 5,172 | 5,689 | 6,496 | 3,924 | 6,496 | |||||||||||||||||||||||||||
North Central | ||||||||||||||||||||||||||||||||||||
9 | Beginning Balance | 6,121 | 7,113 | 7,763 | 9,050 | 9,251 | 8,527 | 6,121 | 9,251 | |||||||||||||||||||||||||||
10 | Properties Acquired | 3,137 | 3,445 | 3,995 | 3,101 | 2,754 | 6,143 | 6,582 | 8,897 | |||||||||||||||||||||||||||
11 | Properties Disposed | (2,145 | ) | (2,795 | ) | (2,708 | ) | (2,900 | ) | (3,478 | ) | (3,769 | ) | (4,940 | ) | (7,247 | ) | |||||||||||||||||||
12 | Ending Property Inventory | 7,113 | 7,763 | 9,050 | 9,251 | 8,527 | 10,901 | 7,763 | 10,901 | |||||||||||||||||||||||||||
Southwest | ||||||||||||||||||||||||||||||||||||
13 | Beginning Balance | 2,230 | 2,545 | 2,651 | 2,924 | 2,761 | 2,875 | 2,230 | 2,761 | |||||||||||||||||||||||||||
14 | Properties Acquired | 1,370 | 1,465 | 1,616 | 1,235 | 1,659 | 2,094 | 2,835 | 3,753 | |||||||||||||||||||||||||||
15 | Properties Disposed | (1,055 | ) | (1,359 | ) | (1,343 | ) | (1,398 | ) | (1,545 | ) | (1,640 | ) | (2,414 | ) | (3,185 | ) | |||||||||||||||||||
16 | Ending Property Inventory | 2,545 | 2,651 | 2,924 | 2,761 | 2,875 | 3,329 | 2,651 | 3,329 | |||||||||||||||||||||||||||
West | ||||||||||||||||||||||||||||||||||||
17 | Beginning Balance | 1,883 | 3,383 | 5,262 | 8,474 | 9,409 | 9,424 | 1,883 | 9,409 | |||||||||||||||||||||||||||
18 | Properties Acquired | 2,182 | 3,576 | 5,556 | 4,003 | 4,898 | 7,493 | 5,758 | 12,391 | |||||||||||||||||||||||||||
19 | Properties Disposed | (682 | ) | (1,697 | ) | (2,344 | ) | (3,068 | ) | (4,883 | ) | (6,117 | ) | (2,379 | ) | (11,000 | ) | |||||||||||||||||||
20 | Ending Property Inventory | 3,383 | 5,262 | 8,474 | 9,409 | 9,424 | 10,800 | 5,262 | 10,800 | |||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||
21 | Beginning Balance | 14,394 | 18,419 | 22,029 | 28,092 | 29,346 | 29,151 | 14,394 | 29,346 | |||||||||||||||||||||||||||
22 | Properties Acquired | 9,939 | 12,410 | 15,883 | 12,299 | 13,989 | 21,998 | 22,349 | 35,987 | |||||||||||||||||||||||||||
23 | Properties Disposed | (5,914 | ) | (8,800 | ) | (9,820 | ) | (11,045 | ) | (14,184 | ) | (16,443 | ) | (14,714 | ) | (30,627 | ) | |||||||||||||||||||
24 | Ending Property Inventory | 18,419 | 22,029 | 28,092 | 29,346 | 29,151 | 34,706 | 22,029 | 34,706 | |||||||||||||||||||||||||||
REO Balance, net (dollars in millions) | ||||||||||||||||||||||||||||||||||||
Single-family property, by region(1): | ||||||||||||||||||||||||||||||||||||
25 | Northeast | $ | 358 | $ | 381 | $ | 402 | $ | 374 | $ | 337 | $ | 400 | $ | 381 | $ | 400 | |||||||||||||||||||
26 | Southeast | 330 | 373 | 451 | 460 | 459 | 521 | 373 | 521 | |||||||||||||||||||||||||||
27 | North Central | 619 | 636 | 715 | 720 | 634 | 796 | 636 | 796 | |||||||||||||||||||||||||||
28 | Southwest | 253 | 253 | 266 | 255 | 261 | 307 | 253 | 307 | |||||||||||||||||||||||||||
29 | West | 654 | 937 | 1,365 | 1,399 | 1,217 | 1,357 | 937 | 1,357 | |||||||||||||||||||||||||||
30 | Total single-family property | 2,214 | 2,580 | 3,199 | 3,208 | 2,908 | 3,381 | 2,580 | 3,381 | |||||||||||||||||||||||||||
31 | Total multifamily property | — | — | 24 | 47 | 40 | 35 | — | 35 | |||||||||||||||||||||||||||
32 | Total REO Balance, net | $ | 2,214 | $ | 2,580 | $ | 3,223 | $ | 3,255 | $ | 2,948 | $ | 3,416 | $ | 2,580 | $ | 3,416 | |||||||||||||||||||
�� |
(1) | Region Designation: 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); Southwest (AR, CO, KS, LA, MO, NE, NM, OK, TX, WY); West (AK, AZ, CA, GU, HI, ID, MT, NV, OR, UT, WA). |
13