Federal Home Loan Mortgage 8K Freddie Mac Reports First Quarter 2010 Financial Results | FMCC 5 May 10

Exhibit 99.2


FREDDIE MAC FIRST QUARTER 2010 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	Derivatives Not in Hedge Accounting Relationships		8
	4	Non-Interest Expense		9
	5	Credit Quality Indicators		10
	6	Single-Family Non-Credit-Enhanced Delinquency and Foreclosure Activity by Region		11
	7	Real Estate Owned (REO) Activity		12

		Segment Earnings Results

	8A	Segment Earnings — Consolidated		13
	8B	Segment Earnings — Investments Segment		14
	8C	Segment Earnings — Single-Family Guarantee Segment		15
	8D	Segment Earnings — Multifamily Segment		16
	9A	Segment Earnings — Reconciliation to GAAP Results 1Q 2009		17
	9B	Segment Earnings — Reconciliation to GAAP Results 2Q 2009		18
	9C	Segment Earnings — Reconciliation to GAAP Results 3Q 2009		19
	9D	Segment Earnings — Reconciliation to GAAP Results 4Q 2009		20
	9E	Segment Earnings — Reconciliation to GAAP Results 1Q 2010		21

FREDDIE MAC
CONSOLIDATED STATEMENTS OF OPERATIONS⁽¹⁾(unaudited)


					Three Months Ended March 31,
Line:					2010			2009
					(dollars in millions,
					except share-related amounts)
		Interest income
			Mortgage loans:
	1			Held by consolidated trusts	$	22,732		$	—
	2			Unsecuritized		1,961			1,580

	3			Total mortgage loans		24,693			1,580
	4		Investments in securities			3,899			8,971
	5		Other			33			94

	6			Total interest income		28,625			10,645

		Interest expense
	7		Debt securities of consolidated trusts			(19,643	)		—
	8		Other debt			(4,599	)		(6,486	)

	9			Total interest expense		(24,242	)		(6,486	)
	10		Expense related to derivatives			(258	)		(300	)

	11	Net interest income				4,125			3,859
	12	Provision for credit losses				(5,396	)		(8,915	)

	13	Net interest income after provision for credit losses				(1,271	)		(5,056	)

		Non-interest income (loss)
	14		Gains (losses) on extinguishment of debt securities of consolidated trusts			(98	)		—
	15		Gains (losses) on retirement of other debt			(38	)		(104	)
	16		Gains (losses) on debt recorded at fair value			347			467
	17		Derivative gains (losses)			(4,685	)		181
			Impairment of available-for-sale securities:
	18		Total other-than-temporary impairment of available-for-sale securities			(417	)		(7,130	)
	19		Portion of other-than-temporary impairment recognized in AOCI			(93	)		—

	20		Net impairment of available-for-sale securities recognized in earnings			(510	)		(7,130	)
	21		Other Gains (losses) on investment securities recognized in earnings			(416	)		2,182
	22		Other income			546			1,316

	23	Non-interest income (loss)				(4,854	)		(3,088	)

		Non-interest expense
	24		Salaries and employee benefits			(234	)		(207	)
	25		Professional services			(71	)		(60	)
	26		Occupancy expense			(16	)		(18	)
	27		Other administrative expenses			(74	)		(87	)

	28			Total administrative expenses		(395	)		(372	)
	29		Real estate owned operations expense			(159	)		(306	)
	30		Other expenses			(113	)		(2,090	)

	31	Non-interest expense				(667	)		(2,768	)

	32	Loss before income tax benefit				(6,792	)		(10,912	)
	33	Income tax benefit				103			937

	34	Net loss			$	(6,689	)	$	(9,975	)
	35		Less: Net (income) loss attributable to noncontrolling interest			1			—

	36	Net loss attributable to Freddie Mac			$	(6,688	)	$	(9,975	)

	37		Preferred stock dividends			(1,292	)		(378	)

	38	Net loss attributable to common stockholders			$	(7,980	)	$	(10,353	)

		Loss per common share:
	39		Basic		$	(2.45	)	$	(3.18	)
	40		Diluted		$	(2.45	)	$	(3.18	)
		Weighted average common shares outstanding (in thousands):
	41		Basic			3,251,295			3,255,718
	42		Diluted			3,251,295			3,255,718
	43	Dividends per common share			$	—		$	—

(1)

Our prospective adoption of the changes in the accounting standards related to transfers of financial assets and consolidation of VIEs significantly impacted the presentation of our financial statements. Consequently, our financial results for the first quarter of 2010 are not directly comparable to our financial results for 2009. See “NOTE 2: CHANGE IN ACCOUNTING PRINCIPLES” to our consolidated financial statements within our Form 10-Q dated May 5, 2010 for further information.

FREDDIE MAC
CONSOLIDATED BALANCE SHEETS⁽¹⁾(unaudited)


					March 31,			December 31,
Line:					2010			2009
					(dollars in millions,
					except share-related amounts)
		Assets
	1	Cash and cash equivalents (includes $2 at March 31, 2010 related to our consolidated VIEs)			$	55,445		$	64,683
	2	Restricted cash and cash equivalents (includes $9,386 at March 31, 2010 related to our consolidated VIEs)				9,788			527
	3	Federal funds sold and securities purchased under agreements to resell (includes $8,750 at March 31, 2010 related to our consolidated VIEs)				25,491			7,000
		Investments in securities:
	4			Available-for-sale, at fair value (includes $598 and $10,879, respectively, pledged as collateral that may be repledged)		252,353			384,684
	5			Trading, at fair value		75,955			222,250

	6			Total investments in securities		328,308			606,934

		Mortgage loans:
			Held-for-investment, at amortized cost:
	7			By consolidated trusts (net of allowances for loan losses of $21,758 at March 31, 2010)		1,745,765			—
	8			Unsecuritized (net of allowances for loan losses of $14,872 and $1,441, respectively)		160,613			111,565

	9			Total held-for-investment mortgage loans, net		1,906,378			111,565
	10			Held-for-sale, at lower-of-cost-or-fair-value (includes $2,206 and $2,799 at fair value, respectively)		2,206			16,305

	11			Total mortgage loans, net		1,908,584			127,870
	12	Accrued interest receivable (includes $7,565 at March 31, 2010 related to our consolidated VIEs)				9,468			3,376
	13	Derivative assets, net				57			215
	14	Real estate owned, net (includes $134 at March 31, 2010 related to our consolidated VIEs)				5,468			4,692
	15	Deferred tax assets, net				10,044			11,101
	16	Other assets (includes $3,080 at March 31, 2010 related to our consolidated VIEs)				7,557			15,386

	17		Total assets		$	2,360,210		$	841,784


		Liabilities and equity (deficit)

		Liabilities
	18	Accrued interest payable (includes $6,917 at March 31, 2010 related to our consolidated VIEs)			$	10,764		$	5,047

		Debt, net:
	19		Debt securities of consolidated trusts held by third parties			1,545,227			—
	20		Other debt (includes $8,496 and $8,918 at fair value, respectively)			806,621			780,604

	21		Total debt, net			2,351,848			780,604
	22	Derivative liabilities, net				888			589
	23	Other liabilities (includes $3,879 at March 31, 2010 related to our consolidated VIEs)				7,235			51,172

	24		Total liabilities			2,370,735			837,412

	25	Commitments and contingencies

		Equity (deficit)

		Freddie Mac stockholders’ equity (deficit)
	26		Senior preferred stock, at redemption value			51,700			51,700
	27		Preferred stock, at redemption value			14,109			14,109
	28		Common stock, $0.00 par value, 4,000,000,000 shares authorized, 725,863,886 shares issued and 649,105,601 shares and 648,369,668 shares outstanding, respectively			—			—
	29		Additional paid-in capital			—			57
	30		Retained earnings (accumulated deficit)			(50,933	)		(33,921	)
			Accumulated other comprehensive income (loss), or AOCI, net of taxes, related to:
	31			Available-for-sale securities (includes $14,719 and $15,947, respectively, net of taxes, of other-than-temporary impairments)		(18,653	)		(20,616	)
	32			Cash flow hedge relationships		(2,740	)		(2,905	)
	33			Defined benefit plans		(137	)		(127	)

	34			Total AOCI, net of taxes		(21,530	)		(23,648	)
	35		Treasury stock, at cost, 76,758,285 shares and 77,494,218 shares, respectively			(3,960	)		(4,019	)

	36			Total Freddie Mac stockholders’ equity (deficit)		(10,614	)		4,278
	37	Noncontrolling interest				89			94

	38		Total equity (deficit)			(10,525	)		4,372

	39		Total liabilities and equity (deficit)		$	2,360,210		$	841,784

(1)

FREDDIE MAC
CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT)
(unaudited)


			Three Months Ended March 31,
			2010					2009
Line:			Shares		Amount			Shares			Amount
			(in millions)
		Senior preferred stock, at redemption value
	1	Balance, beginning of year		1	$	51,700			1		$	14,800
	2	Increase in liquidation preference		—		—			—			30,800

	3	Senior preferred stock, end of period		1		51,700			1			45,600

		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			—

	7	Common stock, end of period		726		—			726			—

		Additional paid-in capital
	8	Balance, beginning of year				57						19
	9	Stock-based compensation				9						17
	10	Income tax benefit from stock-based compensation				1						(22	)
	11	Common stock issuances				(62	)					(77	)
	12	Noncontrolling interest purchase				(23	)					—
	13	Transfer from retained earnings (accumulated deficit)				18						63

	14	Additional paid-in capital, end of period				—						—

		Retained earnings (accumulated deficit)
	15	Balance, beginning of year				(33,921	)					(23,191	)
	16	Cumulative effect of change in accounting principle				(9,011	)					—

	17	Balance, beginning of year, as adjusted				(42,932	)					(23,191	)
	18	Net loss attributable to Freddie Mac				(6,688	)					(9,975	)
	19	Senior preferred stock dividends declared				(1,292	)					(370	)
	20	Dividend equivalent payments on expired stock options				(3	)					(2	)
	21	Transfer to additional paid-in capital				(18	)					(63	)

	22	Retained earnings (accumulated deficit), end of period				(50,933	)					(33,601	)

		AOCI, net of taxes
	23	Balance, beginning of year				(23,648	)					(32,357	)
	24	Cumulative effect of change in accounting principle				(2,690	)					—

	25	Balance, beginning of year, as adjusted				(26,338	)					(32,357	)
	26	Changes in unrealized gains (losses) related toavailable-for-sale securities, net of reclassification adjustments				4,646						3,844
	27	Changes in unrealized gains (losses) related to cash flow hedge relationships, net of reclassification adjustments				172						208
	28	Changes in defined benefit plans				(10	)					2

	29	AOCI, net of taxes, end of period				(21,530	)					(28,303	)

		Treasury stock, at cost
	30	Balance, beginning of year		77		(4,019	)		79			(4,111	)
	31	Common stock issuances		—		59			(1	)		78

	32	Treasury stock, end of period		77		(3,960	)		78			(4,033	)

		Noncontrolling interest
	33	Balance, beginning of year				94						97
	34	Cumulative effect of change in accounting principle				(2	)					—

	35	Balance, beginning of year, as adjusted				92						97
	36	Net income (loss) attributable to noncontrolling interest				(1	)					—
	37	Dividends and other				(2	)					(1	)

	38	Noncontrolling interest, end of period				89						96


	39	Total equity (deficit)			$	(10,525	)				$	(6,132	)

		Comprehensive income (loss)
	40	Net loss			$	(6,689	)				$	(9,975	)
	41	Changes in other comprehensive income (loss), net of taxes, net of reclassification adjustments				4,808						4,054

	42	Comprehensive income (loss)				(1,881	)					(5,921	)
	43	Less: Comprehensive (income) loss attributable to noncontrolling interest				1						—

	44	Total comprehensive income (loss) attributable to Freddie Mac			$	(1,880	)				$	(5,921	)

FREDDIE MAC
NET INTEREST YIELD ANALYSIS⁽¹⁾TABLE 1A
(unaudited)
(dollars in millions)


Line:			1Q 2009			2Q 2009			3Q 2009			4Q 2009			1Q 2010
		Net Interest Income:

	1	Net interest income	$	3,859		$	4,255		$	4,462		$	4,497		$	4,125


		Average Balances:


		Cash and cash equivalents:
	2	Cash and cash equivalents, excluding consolidated trusts	$	49,932		$	57,401		$	48,403		$	45,023		$	50,468
	3	Cash and cash equivalents, held by consolidated trusts		—			—			—			—			9,751

	4	Total cash and cash equivalents		49,932			57,401			48,403			45,023			60,219
		Federal funds sold and securities purchased under agreements to resell:
	5	Federal funds sold and securities purchased under agreements to resell, excluding consolidated trusts		33,605			29,542			29,256			21,695			42,792
	6	Federal funds sold and securities purchased under agreements to resell, held by consolidated trusts		—			—			—			—			8,853

	7	Total federal funds sold and securities purchased under agreements to resell		33,605			29,542			29,256			21,695			51,645

		Mortgage-related securities:
	8	Mortgage-related securities⁽²⁾⁽³⁾		698,464			702,693			663,744			635,768			593,512
	9	Extinguishment of PCs held by Freddie Mac		—			—			—			—			(245,022	)

	10	Total mortgage-related securities, net		698,464			702,693			663,744			635,768			348,490
	11	Non-mortgage-related securities⁽²⁾		11,197			16,594			19,282			18,809			20,189
	12	Mortgage loans held by consolidated trusts⁽⁴⁾		—			—			—			—			1,786,834
	13	Unsecuritized mortgage loans⁽⁴⁾		118,555			127,863			129,721			133,578			160,688

	14	Total interest-earning assets		911,753			934,093			890,406			854,873			2,428,065

		Debt securities of consolidated trusts:
	15	Debt securities of consolidated trusts including PCs held by Freddie Mac		—			—			—			—			1,801,525
	16	Extinguishment of PCs held by Freddie Mac		—			—			—			—			(245,022	)

	17	Total debt securities of consolidated trusts held by third parties		—			—			—			—			1,556,503

		Other debt:
	18	Short-term debt		362,566			293,475			256,324			236,672			242,938
	19	Long-term debt		521,151			582,998			570,863			553,723			556,907

	20	Total other debt		883,717			876,473			827,187			790,395			799,845

	21	Total interest-bearing liabilities		883,717			876,473			827,187			790,395			2,356,348
	22	Net non-interest bearing funding		28,036			57,620			63,219			64,478			71,717

	23	Total funding of interest-earning assets	$	911,753		$	934,093		$	890,406		$	854,873		$	2,428,065


		Yield/Cost:


		Cash and cash equivalents:
	24	Cash and cash equivalents excluding consolidated trusts		0.61	%		0.42	%		0.28	%		0.18	%		0.13	%
	25	Cash and cash equivalents, held by consolidated trusts		—			—			—			—			0.05
	26	Total cash and cash equivalents		0.61			0.42			0.28			0.18			0.12

		Federal funds sold and securities purchased under agreements to resell:
	27	Federal funds sold and securities purchased under agreements to resell, excluding consolidated trusts		0.22			0.17			0.15			0.11			0.12
	28	Federal funds sold and securities purchased under agreements to resell, held by consolidated trusts		—			—			—			—			0.11
	29	Total federal funds sold and securities purchased under agreements to resell		0.22			0.17			0.15			0.11			0.12

		Mortgage-related securities:
	30	Mortgage-related securities		5.02			4.69			4.78			4.80			4.91
	31	Extinguishment of PCs held by Freddie Mac		—			—			—			—			(5.62	)
	32	Total mortgage-related securities, net		5.02			4.69			4.78			4.80			4.41
	33	Non-mortgage-related securities		7.53			6.96			2.99			1.79			1.21
	34	Mortgage loans held by consolidated trusts		—			—			—			—			5.09
	35	Unsecuritized mortgage loans		5.33			5.38			5.37			5.31			4.88
	36	Yield on total interest-earning assets		4.67			4.42			4.43			4.45			4.72

		Debt securities of consolidated trusts:
	37	Debt securities of consolidated trusts including PCs held by Freddie Mac		—			—			—			—			(5.13	)
	38	Extinguishment of PCs held by Freddie Mac		—			—			—			—			5.62
	39	Total debt securities of consolidated trusts, net		—			—			—			—			(5.05	)

		Other debt:
	40	Short-term debt		(1.24	)		(0.77	)		(0.51	)		(0.34	)		(0.23	)
	41	Long-term debt		(4.12	)		(3.57	)		(3.35	)		(3.28	)		(3.20	)
	42	Total other debt		(2.94	)		(2.63	)		(2.48	)		(2.40	)		(2.30	)
	43	Cost of interest-bearing liabilities		(2.94	)		(2.63	)		(2.48	)		(2.40	)		(4.12	)
	44	Income (expense) related to derivatives		(0.13	)		(0.13	)		(0.13	)		(0.13	)		(0.04	)
	45	Impact of net non-interest bearing funding		0.09			0.17			0.19			0.19			0.12
	46	Total funding of interest-earning assets		(2.98	)		(2.59	)		(2.42	)		(2.34	)		(4.04	)
	47	Net interest yield		1.69			1.83			2.01			2.11			0.68


(1)		Our prospective adoption of the changes in the accounting standards related to transfers of financial assets and consolidation of VIEs significantly impacted the presentation of our financial results. Consequently, our financial results for the first quarter of 2010 are not directly comparable to our financial results for 2009. See “NOTE 2: CHANGE IN ACCOUNTING PRINCIPLES” to our consolidated financial statements within our Form 10-Q dated May 5, 2010 for further information.
(2)		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.
(3)		When we purchase multi-class resecuritization securities, we record them as investments in mortgage-related debt securities. Interest income from the debt securities is recognized as well as the interest income from underlying consolidated PC trusts. Additionally, the interest expense from the unsecured debt issued to purchase the security is recognized along with the interest expense of the underlying consolidated PC trusts.
(4)		Non-performing loans, where interest income is recognized when collected, are included in average balances.

FREDDIE MAC
NET INTEREST INCOME⁽¹⁾TABLE 1B
(unaudited)
(dollars in millions)


Line:						1Q 2009			2Q 2009			3Q 2009			4Q 2009			1Q 2010
		Net Interest Income:
	1	Contractual amounts of net interest income				$	4,135		$	4,943		$	5,082		$	5,097		$	5,600
	2	Less: Contractual amounts of interest income related to non-accrual loans⁽²⁾					(89	)		(69	)		(92	)		(100	)		(1,143	)
		Amortization income (expense), net:⁽³⁾
	3		Accretion of impairments on available-for-sale securities⁽⁴⁾				715			254			122			89			76
			Asset-related amortization expense, net:
	4			Mortgage loans held by consolidated trusts			—			—			—			—			(9	)
	5			Unsecured mortgage loans			31			56			67			79			75
	6			Mortgage-related securities			(418	)		(456	)		(258	)		(213	)		(31	)
	7			Other assets			2			8			10			10			11

	8				Asset-related amortization expense, net		(385	)		(392	)		(181	)		(124	)		46
			Debt-related amortization expense net:
	9			Debt securities of consolidated trust			—			—			—			—			13
	10			Other long-term debt securities			(217	)		(199	)		(191	)		(202	)		(209	)

	11				Debt-related amortization expense, net		(217	)		(199	)		(191	)		(202	)		(196	)

	12				Total amortization income (expense), net		113			(337	)		(250	)		(237	)		(74	)
	13	Expense related to derivatives⁽⁵⁾					(300	)		(282	)		(278	)		(263	)		(258	)

	14	Net interest income					3,859			4,255			4,462			4,497			4,125
	15	Provision for credit losses					(8,915	)		(5,665	)		(7,973	)		(6,977	)		(5,396	)

	16	Net interest income after provision for credit losses				$	(5,056	)	$	(1,410	)	$	(3,511	)	$	(2,480	)	$	(1,271	)


(1)	Our prospective adoption of the changes in accounting standards related to transfers of financial assets and consolidation of VIEs significantly impacted the presentation of our financial results. Consequently, our financial results for the first quarter of 2010 are not directly comparable to our financial results for 2009. See “NOTE 2: CHANGE IN ACCOUNTING PRINCIPLES” to our consolidated financial statements within our Form 10-Q dated May 5, 2010 for further information.
(2)	Includes the reversal of interest income accrued, net of interest received on a cash basis related to mortgage loans that are on non-accrual status.
(3)	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.
(4)	The portion of the impairment charges recognized in earnings expected to be recovered is recognized as net interest income. Upon our adoption of an amendment to the accounting standards for investments in debt and equity securities on April 1, 2009, previously recognized non-credit-related other-than-temporary impairments are no longer accreted into net interest income.
(5)	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.

FREDDIE MAC
NON-INTEREST INCOME (LOSS)⁽¹⁾TABLE 2
(unaudited)
(dollars in millions)


Line:					1Q 2009			2Q 2009			3Q 2009			4Q 2009			1Q 2010
		Non-Interest Income (Loss):
	1	Gains (losses) on extinguishment of debt securities of consolidated trusts			$	—		$	—		$	—		$	—		$	(98	)
	2	Gains (losses) on retirement of other debt				(104	)		(156	)		(215	)		(93	)		(38	)
		Gains (losses) on debt recorded at fair value:
	3		Translation gains (losses)			580			(655	)		(240	)		106			321
	4		Market value adjustments			(113	)		(142	)		2			58			26

	5			Total gains (losses) on debt recorded at fair value		467			(797	)		(238	)		164			347

		Derivative gains (losses):
			Foreign-currency denominated derivatives gains (losses):
	6			Foreign-currency swaps gains (losses)		(573	)		583			238			(110	)		(331	)
	7			Receive-fixed swaps — foreign-currency denominated gains (losses)		187			(63	)		(2	)		(58	)		(8	)
	8		U.S. dollar denominated derivative gains (losses):			1,302			2,688			(2,880	)		731			(2,997	)
	9		Accrual of periodic settlements			(735	)		(847	)		(1,131	)		(1,230	)		(1,349	)

	10			Total derivative gains (losses)		181			2,361			(3,775	)		(667	)		(4,685	)

	11	Total other-than-temporary impairment of available-for-sale securities				(7,130	)		(10,473	)		(4,199	)		(1,323	)		(417	)
	12	Portion of other-than-temporary impairment recognized in AOCI				—			8,260			3,012			656			(93	)

	13		Net impairment of available-for-sale securities recognized in earnings			(7,130	)		(2,213	)		(1,187	)		(667	)		(510	)

		Other gains (losses) on investment securities recognized in earnings:
	14		Gains (losses) on trading securities			2,131			622			2,211			(82	)		(417	)
	15		Gains (losses) on sale of available-for-sale securities			51			205			473			354			1

	16			Total other gains (losses) on investment securities recognized in earnings		2,182			827			2,684			272			(416	)

		Other income (loss)
	17		Management and guarantee income			780			710			800			743			35
	18		Gains (losses) on guarantee asset			(156	)		1,817			580			1,058			(12	)
	19		Income on guarantee obligation			910			961			814			794			36
	20		Gains (losses) on sale of mortgage loans			151			143			282			169			95
	21		Lower-of-cost-or-fair-value adjustments on held-for-sale mortgage loans			(129	)		(102	)		(360	)		(88	)		—
	22		Gains (losses) on mortgage loans elected at fair value			(18	)		(71	)		(1	)		(100	)		21
	23		Recoveries on loans impaired upon purchase			50			70			109			150			169
	24		Low-income housing tax credit partnerships			(106	)		(167	)		(479	)		(3,403	)		—
	25		Trust management income (expense)			(207	)		(238	)		(155	)		(161	)		—
	26		All other			41			70			59			52			202

	27			Total other income (loss)		1,316			3,193			1,649			(786	)		546

	28			Total non-interest income (loss)	$	(3,088	)	$	3,215		$	(1,082	)	$	(1,777	)	$	(4,854	)

(1)

Our prospective adoption of the changes in the accounting standards related to transfers of financial assets and consolidation of VIEs significantly impacted the presentation of our financial results. Consequently, our financial results for the first quarter of 2010 are not directly comparable to our financial results for 2009. See “NOTE 2: CHANGE IN ACCOUNTING PRINCIPLES” to our consolidated financial statements within our Form 10-Q dated May 5, 2010 for further information.

FREDDIE MAC
DERIVATIVES NOT IN HEDGE ACCOUNTING RELATIONSHIPS
TABLE 3
(unaudited)
(dollars in millions)


Line:						1Q 2009			2Q 2009			3Q 2009			4Q 2009			1Q 2010
		Derivative Gains (Losses):
		Interest-rate swaps:
			Receive-fixed swaps
	1			Foreign-currency denominated		$	187		$	(63	)	$	(2	)	$	(58	)	$	(8	)
	2			U.S. dollar denominated			(1,803	)		(10,187	)		4,539			(5,886	)		2,383

	3				Total receive-fixed swaps		(1,616	)		(10,250	)		4,537			(5,944	)		2,375
	4		Pay-fixed swaps				6,705			18,524			(8,223	)		10,072			(4,747	)
	5		Basis (floating to floating)				1			(116	)		(59	)		(20	)		38

	6				Total interest-rate swaps		5,090			8,158			(3,745	)		4,108			(2,334	)
		Option-based:
			Call swaptions
	7			Purchased			(3,387	)		(5,910	)		2,285			(3,554	)		500
	8			Written			117			94			(59	)		96			59
			Put swaptions
	9			Purchased			45			1,002			(1,087	)		363			(974	)
	10			Written			13			(370	)		107			(71	)		(5	)
	11		Other option-based derivatives⁽¹⁾				25			(240	)		13			(168	)		(162	)

	12				Total option-based		(3,187	)		(5,424	)		1,259			(3,334	)		(582	)
	13	Futures					28			(252	)		(11	)		(65	)		(54	)
	14	Foreign-currency swaps⁽²⁾					(573	)		583			238			(110	)		(331	)
	15	Commitments⁽³⁾					(412	)		140			(385	)		(51	)		(35	)
	16	Credit derivatives					1			(6	)		—			1			—
	17	Swap guarantee derivatives					(31	)		9			—			2			—
	18	Other⁽⁴⁾					—			—			—			12			—

	19			Subtotal			916			3,208			(2,644	)		563			(3,336	)
		Accrual of periodic settlements:
	20		Receive-fixed interest rate swaps⁽⁵⁾				1,088			1,380			1,684			1,665			1,532
	21		Pay-fixed interest rate swaps				(1,942	)		(2,269	)		(2,847	)		(2,906	)		(2,884	)
	22		Foreign-currency swaps				49			22			10			8			7
	23		Other				70			20			22			3			(4	)

	24				Total accrual of periodic settlements		(735	)		(847	)		(1,131	)		(1,230	)		(1,349	)

	25				Total	$	181		$	2,361		$	(3,775	)	$	(667	)	$	(4,685	)


(1)		Primarily represents purchased interest rate caps and floors, guarantees of stated final maturity of issued Structured Securities, and written options, including written call options on agency mortgage-related securities. For the three months ended March 31, 2009, other option-based derivatives also included purchased put 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)		Commitments include: (a) our commitments to purchase and sell investments in securities; and (b) our commitments to purchase and extinguish or issue debt securities of our consolidated trusts.
(4)		Relates to the bankruptcy of Lehman Brothers Holdings, Inc. for the fourth quarter of 2009.
(5)		Includes imputed interest on zero-coupon swaps.

FREDDIE MAC
NON-INTEREST EXPENSE⁽¹⁾TABLE 4
(unaudited)
(dollars in millions)


Line:			1Q 2009		2Q 2009		3Q 2009			4Q 2009		1Q 2010
		Non-Interest Expense:
		Administrative expenses:
	1	Salaries and employee benefits	$	207	$	221	$	230		$	254	$	234
	2	Professional services		60		64		91			95		71
	3	Occupancy expense		18		15		16			19		16
	4	Other administrative expenses		87		83		96			95		74

	5	Total administrative expenses		372		383		433			463		395
	6	Real estate owned, or REO, operations (income) expense		306		9		(96	)		88		159
		Other expenses:
	7	Losses on loans purchased		2,012		1,199		531			1,012		17
	8	All other		78		97		97			211		96

	9	Total other expenses		2,090		1,296		628			1,223		113

	10	Total non-interest expense	$	2,768	$	1,688	$	965		$	1,774	$	667

(1)

Our prospective adoption of the changes in the accounting standards related to transfers of financial assets and consolidation of VIEs significantly impacted the presentation of our financial results. Consequently, our financial results for the first quarter of 2010 are not directly comparable to our financial results for 2009. See “NOTE 2: CHANGE IN ACCOUNTING PRINCIPLES” to our consolidated financial statements within our Form 10-Q dated May 5, 2010 for further information.

FREDDIE MAC
CREDIT QUALITY INDICATORS
TABLE 5
(unaudited)
(dollars in millions)


Line:			1Q 2009			2Q 2009			3Q 2009			4Q 2009			1Q 2010

		Credit Enhancements:

	1	Credit-enhanced percentage of mortgage loan portfolio purchases		8	%		6	%		7	%		11	%		13	%
	2	Credit-enhanced percentage of mortgage loan portfolio⁽¹⁾ (period end)		17	%		17	%		16	%		16	%		16	%

		Delinquencies Rates: at period end⁽²⁾⁽³⁾

		Single-family:
	3	Non-credit-enhanced		1.75	%		2.15	%		2.58	%		3.02	%		3.18	%
	4	Credit-enhanced		5.37	%		6.33	%		7.47	%		8.68	%		8.87	%
	5	Total Single-family, including Structured Transactions		2.41	%		2.89	%		3.43	%		3.98	%		4.13	%
		Multifamily:
	6	Non-credit-enhanced		0.07	%		0.05	%		0.03	%		0.07	%		0.13	%
	7	Credit enhanced		0.37	%		0.91	%		1.02	%		1.13	%		1.11	%
	8	Total Multifamily, excluding Structured Transactions		0.10	%		0.15	%		0.14	%		0.19	%		0.24	%
	9	Structured Transactions		0.61	%		0.99	%		0.59	%		0.25	%		0.19	%
	10	Total Multifamily, including Structured Transactions		0.11	%		0.16	%		0.15	%		0.19	%		0.24	%

		Foreclosure alternatives⁽³⁾⁽⁴⁾ (number of units):


	11	Repayment plans		10,459			7,409			7,728			8,129			8,761
	12	Loan modifications		24,623			15,603			9,013			15,805			44,076
	13	Forbearance agreements		1,448			1,421			2,979			8,780			8,858
	14	Pre-foreclosure sales		3,093			4,821			6,628			8,049			9,619

	15	Total foreclosure alternatives		39,623			29,254			26,348			40,763			71,314

		Non-performing assets⁽³⁾⁽⁵⁾ (at period end):


	16	Non-performing mortgage loans	$	58,965		$	72,171		$	86,285		$	99,227		$	110,644
	17	REO assets, net		2,948			3,416			4,234			4,692			5,468

	18	Total non-performing assets	$	61,913		$	75,587		$	90,519		$	103,919		$	116,112

		REO Operations Income (Expense):


	19	Single-family	$	(306	)	$	(1	)	$	98		$	(78	)	$	(156	)
	20	Multifamily		—			(8	)		(2	)		(10	)		(3	)

	21	Total	$	(306	)	$	(9	)	$	96		$	(88	)	$	(159	)

		Loan Loss Reserves:⁽⁶⁾


	22	Beginning balance	$	15,618		$	22,802		$	25,787		$	30,564		$	33,857
	23	Adjustments to beginning balance⁽⁷⁾		—			—			—			—			(186	)
	24	Provision for credit losses⁽⁸⁾		8,915			5,665			7,973			6,977			5,396
	25	Charge-offs — single-family, net		(972	)		(1,840	)		(2,155	)		(2,326	)		(2,634	)
	26	Charge-offs — multifamily, net		(2	)		(2	)		(15	)		(2	)		(18	)
	27	Transfers, net		(757	)		(838	)		(1,026	)		(1,356	)		396

	28	Ending balance	$	22,802		$	25,787		$	30,564		$	33,857		$	36,811

		Total Credit Losses:⁽⁹⁾


	29	Total credit losses	$	1,320		$	1,916		$	2,156		$	2,509		$	2,928
	30	Annualized credit losses / average mortgage loan portfolio⁽¹⁰⁾		27.7 bp			39.8 bp			44.3 bp			51.1 bp			59.5 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 loans 90 days or more delinquent or in foreclosure while multifamily delinquencies are based on unpaid principal balance of loans 60 days or more delinquent or in foreclosure. Delinquencies exclude 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. We have revised our presentation of single-family delinquency rates to include Structured Transactions and our multifamily delinquencies are reported at 60 days past due. Prior periods have been revised to conform to the current period presentation.
(3)		Based on loans held by us on our consolidated balance sheet as well as those underlying our PCs, Structured Securities and other mortgage-related financial guarantees. Foreclosure alternative information excludes loans underlying 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 dated February 24, 2010.
(5)		Represents completed activities and excludes those modification, repayment and forbearance activities for which the borrower has started the required process, but the actions have not been made permanent, or effective, such as loans in the trial period under HAMP. These categories are not mutually exclusive and a loan in the forbearance agreement category may also be included within another category. Many borrowers complete a forbearance agreement before beginning the trial period of HAMP or before one of the other foreclosure alternatives is pursued or completed. We only report activity for a single loan in one foreclosure alternative category during each quarterly period; however, a single loan may be reported under different foreclosure alternatives in separate periods. Prior periods have been revised to conform with the current period presentation. For more information on our non-performing assets see “Item 7. — CREDIT RISKS — Non-Performing Assets” in ourForm 10-K dated February 24, 2010.
(6)		Loan loss reserves equals the sum of allowance for loan losses (consolidated balance sheets — Lines 7 and 8) and reserve for guarantee losses, which is now a component of Other liabilities (Line 23). See “NOTE 22: SELECTED FINANCIAL STATEMENT LINE ITEMS” to our consolidated financial statements in ourForm 10-Q dated May 5, 2010 for additional information.
(7)		Adjustments relate to the adoption of amendments to the accounting standards for transfers of financial assets and consolidation of VIEs, which we implemented on January 1, 2010.
(8)		Provision for credit losses includes our provision for losses incurred on our loans held for investment, and our provision for guarantee losses incurred on loans underlying our non-consolidated PCs, Structured Securities and other mortgage-related financial guarantees.
(9)		Equal to REO operations income (expense) (Line 21) plus Charge-offs, net (Lines 25 and 26) plus amounts previously transferred to reduce the carrying value of loans purchased under financial guarantees. The previously transferred reserves totaled $117 million and $40 million for the first quarters of 2010 and 2009, respectively. Excludes other market-based credit losses recognized on our consolidated statements of operations, including losses on loans purchased and other than temporary impairments on our mortgage-related securities.
(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.

FREDDIE MAC
SINGLE-FAMILY NON-CREDIT-ENHANCED DELINQUENCY AND FORECLOSURE ACTIVITY BY REGION⁽¹⁾TABLE 6
(unaudited)


				1Q 2009				2Q 2009				3Q 2009				4Q 2009				1Q 2010
				Number of Loans				Number of Loans				Number of Loans				Number of Loans				Number of Loans
Line:				(in thousands)		Percentage⁽³⁾		(in thousands)		Percentage⁽³⁾		(in thousands)		Percentage⁽³⁾		(in thousands)		Percentage⁽³⁾		(in thousands)		Percentage⁽³⁾

		Northeast⁽²⁾

	1		Total number of loans		2,354				2,360				2,394				2,397				2,408

	2		Delinquent three or more payments		16		0.69%		20		0.83%		25		1.05%		31		1.30%		34		1.39%
	3		Foreclosures approved and in-process		15		0.61%		18		0.78%		22		0.93%		25		1.04%		27		1.13%

	4		Total delinquent loans		31		1.30%		38		1.61%		47		1.98%		56		2.34%		61		2.52%

		Southeast⁽²⁾

	5		Total number of loans		1,984				1,988				2,002				2,001				2,001

	6		Delinquent three or more payments		21		1.03%		23		1.18%		28		1.42%		35		1.75%		35		1.73%
	7		Foreclosures approved and in-process		29		1.48%		37		1.85%		43		2.16%		49		2.42%		53		2.67%

	8		Total delinquent loans		50		2.51%		60		3.03%		71		3.58%		84		4.17%		88		4.40%

		North Central⁽²⁾

	9		Total number of loans		2,276				2,274				2,287				2,280				2,284

	10		Delinquent three or more payments		13		0.59%		17		0.74%		22		0.95%		26		1.13%		26		1.14%
	11		Foreclosures approved and in-process		17		0.73%		19		0.82%		22		0.96%		25		1.11%		27		1.18%

	12		Total delinquent loans		30		1.32%		36		1.56%		44		1.91%		51		2.24%		53		2.32%

		Southwest⁽²⁾

	13		Total number of loans		1,390				1,386				1,398				1,401				1,407

	14		Delinquent three or more payments		6		0.44%		7		0.51%		9		0.62%		11		0.76%		11		0.76%
	15		Foreclosures approved and in-process		5		0.37%		6		0.44%		7		0.50%		8		0.56%		9		0.63%

	16		Total delinquent loans		11		0.81%		13		0.95%		16		1.12%		19		1.32%		20		1.39%

		West⁽²⁾

	17		Total number of loans		2,258				2,271				2,302				2,307				2,329

	18		Delinquent three or more payments		27		1.18%		34		1.50%		45		1.94%		56		2.45%		60		2.60%
	19		Foreclosures approved and in-process		30		1.36%		40		1.75%		45		1.96%		47		2.06%		50		2.13%

	20		Total delinquent loans		57		2.54%		74		3.25%		90		3.90%		103		4.51%		110		4.73%

		Total

	21		Total number of loans		10,262				10,279				10,383				10,386				10,429

	22		Delinquent three or more payments		83		0.81%		101		0.98%		129		1.24%		159		1.53%		166		1.59%
	23		Foreclosures approved and in-process		96		0.94%		120		1.17%		139		1.34%		154		1.49%		166		1.59%

	24		Total delinquent loans		179		1.75%		221		2.15%		268		2.58%		313		3.02%		332		3.18%


	25		90-day or more delinquency to REO, transition rate⁽⁴⁾				24.8%				24.7%				20.0%				16.4%				16.9%


(1)		Includes single-family non-credit-enhanced mortgage loans in our single-family credit guarantee portfolio, but excluding certain Structured Transactions for which regional data is not available. Structured Transactions for which regional information is not available are included in the totals. In the first quarter of 2010, we revised our presentation of single-family delinquency rates to include Structured Transactions. Prior periods have been revised to conform to current period presentation
(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; however, these may not recalculate since the number of loans presented on this table have been rounded, in thousands.
(4)		Calculated based on all loans that have been reported as 90 days or more delinquent or in foreclosure in the preceding year, which have transitioned to REO. The rate excludes other dispositions that can result in a loss, such as short-sales anddeed-in-lieu transactions. The decline in this transition rate during the last three quarters is attributed to our increase in loan modifications for delinquent borrowers.

FREDDIE MAC
REAL ESTATE OWNED (REO) ACTIVITY
TABLE 7
(unaudited)


Line:			1Q 2009			2Q 2009			3Q 2009			4Q 2009			1Q 2010

		Property Units, by Region:⁽¹⁾

		Northeast
	1	Beginning Balance		2,753			2,636			3,180			3,832			4,619
	2	Adjustment to beginning balance⁽²⁾		—			—			—			—			109
	3	Properties Acquired		1,123			1,827			2,103			2,476			2,644
	4	Properties Disposed		(1,240	)		(1,283	)		(1,451	)		(1,689	)		(1,912	)

	5	Ending Property Inventory		2,636			3,180			3,832			4,619			5,460

		Southeast
	6	Beginning Balance		5,172			5,689			6,496			7,660			8,749
	7	Adjustment to beginning balance⁽²⁾		—			—			—			—			242
	8	Properties Acquired		3,555			4,441			5,332			5,927			8,034
	9	Properties Disposed		(3,038	)		(3,634	)		(4,168	)		(4,838	)		(5,262	)

	10	Ending Property Inventory		5,689			6,496			7,660			8,749			11,763

		North Central
	11	Beginning Balance		9,251			8,527			10,901			12,915			13,648
	12	Adjustment to beginning balance⁽²⁾		—			—			—			—			262
	13	Properties Acquired		2,754			6,143			5,743			5,306			7,199
	14	Properties Disposed		(3,478	)		(3,769	)		(3,729	)		(4,573	)		(4,897	)

	15	Ending Property Inventory		8,527			10,901			12,915			13,648			16,212

		Southwest
	16	Beginning Balance		2,761			2,875			3,329			4,063			4,561
	17	Adjustment to beginning balance⁽²⁾		—			—			—			—			48
	18	Properties Acquired		1,659			2,094			2,540			2,649			3,090
	19	Properties Disposed		(1,545	)		(1,640	)		(1,806	)		(2,151	)		(2,332	)

	20	Ending Property Inventory		2,875			3,329			4,063			4,561			5,367

		West
	21	Beginning Balance		9,409			9,424			10,800			12,670			13,475
	22	Adjustment to beginning balance⁽²⁾		—			—			—			—			679
	23	Properties Acquired		4,898			7,493			8,657			8,392			8,449
	24	Properties Disposed		(4,883	)		(6,117	)		(6,787	)		(7,587	)		(7,566	)

	25	Ending Property Inventory		9,424			10,800			12,670			13,475			15,037

		Total
	26	Beginning Balance		29,346			29,151			34,706			41,140			45,052
	27	Adjustment to beginning balance⁽²⁾		—			—			—			—			1,340
	28	Properties Acquired		13,989			21,998			24,375			24,750			29,416
	29	Properties Disposed		(14,184	)		(16,443	)		(17,941	)		(20,838	)		(21,969	)

	30	Ending Property Inventory		29,151			34,706			41,140			45,052			53,839


		REO Balance, Net (dollars in millions)

		Single-family property, by region⁽¹⁾:
	31	Northeast	$	337		$	400		$	495		$	598		$	688
	32	Southeast		459			521			668			771			1,002
	33	North Central		634			796			980			1,041			1,217
	34	Southwest		261			307			392			449			520
	35	West		1,217			1,357			1,654			1,802			1,984

	36	Total single-family property		2,908			3,381			4,189			4,661			5,411
	37	Total multifamily property		40			35			45			31			57

	38	Total REO Balance, Net	$	2,948		$	3,416		$	4,234		$	4,692		$	5,468


(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).
(2)		Represents REO assets associated with previously non-consolidated trusts recognized upon the adoption of the amendment to the accounting standards for transfers of financial assets and consolidation of VIEs, which we implemented on January 1, 2010.

FREDDIE MAC
SEGMENT EARNINGS — CONSOLIDATED⁽¹⁾⁽²⁾TABLE 8A
(unaudited)
(dollars in millions)


Line:			1Q 2009			2Q 2009			3Q 2009			4Q 2009			1Q 2010
		Segment Earnings, net of taxes:
	1	Investments	$	518		$	3,108		$	958		$	1,892		$	(1,313	)
	2	Single-family Guarantee		(10,291	)		(4,494	)		(6,494	)		(5,864	)		(5,596	)
	3	Multifamily		8			(12	)		(83	)		(424	)		221
	4	All Other		(567	)		106			(627	)		(3,152	)		—

	5	Total Segment Earnings (loss), net of taxes		(10,332	)		(1,292	)		(6,246	)		(7,548	)		(6,688	)

		Reconciliation to GAAP net income (loss):
	6	Credit guarantee-related adjustments⁽³⁾		551			2,452			1,289			1,656			—
	7	Tax-related adjustments		(194	)		(858	)		(451	)		(580	)		—

	8	Total reconciling items, net of taxes		357			1,594			838			1,076			—

	9	Total net income (loss) attributable to Freddie Mac	$	(9,975	)	$	302		$	(5,408	)	$	(6,472	)	$	(6,688	)

		Net interest yield — Segment Earnings (annualized):
	10	Investments segment		103 bp			129 bp			86 bp			114 bp			74 bp
	11	Multifamily segment		56 bp			56 bp			63 bp			66 bp			65 bp
		Management and guarantee income — Segment Earnings (annualized):
	12	Single-family Guarantee segment		19.1 bp			19.3 bp			18.1 bp			18.1 bp			18.1 bp
	13	Multifamily segment		52.7 bp			53.0 bp			53.7 bp			53.8 bp			52.8 bp
		Credit losses — Segment Earnings:
	14	Single-family Guarantee segment		28.9 bp			41.7 bp			46.2 bp			53.6 bp			62.3 bp
	15	Multifamily segment		0.9 bp			4.3 bp			7.4 bp			4.6 bp			8.2 bp


(1)		See “NOTE 16: SEGMENT REPORTING” in our Form10-Q dated May 5, 2010 for more information regarding Segment Earnings.
(2)		Under our revised method, the sum of Segment Earnings gain (loss) for each segment and All Other equals GAAP net income (loss) attributable to Freddie Mac for the first quarter of 2010 and subsequent periods.
(3)		Consists primarily of amortization and valuation adjustments related to the guarantee asset and guarantee obligation which are excluded from Segment Earnings and cash compensation exchanged at the time of securitization, excluding buy-up and buy-down fees, which is amortized into earnings. These adjustments are recorded to periods prior to 2010 as the amendment to the accounting standards for transfers of financial assets and consolidation of VIEs was applied prospectively on January 1, 2010.

FREDDIE MAC
SEGMENT EARNINGS — INVESTMENTS SEGMENT⁽¹⁾⁽²⁾TABLE 8B
(unaudited)
(dollars in millions)


Line:			1Q 2009			2Q 2009			3Q 2009			4Q 2009			1Q 2010
		Segment Earnings, net of taxes:
	1	Net interest income	$	1,999		$	2,529		$	1,574		$	1,988		$	1,311
		Non-interest income (loss):
	2	Net impairments of available-for-sale securities		(6,414	)		(1,958	)		(1,004	)		(494	)		(376	)
	3	Derivative gains (losses)		1,164			3,522			(1,374	)		1,383			(2,702	)
	4	Other non-interest income (loss)		2,452			(260	)		2,168			322			(22	)

	5	Total non-interest income (loss)		(2,798	)		1,304			(210	)		1,211			(3,100	)

		Non-interest expense:
	6	Administrative expenses		(121	)		(120	)		(130	)		(144	)		(122	)
	7	Other non-interest expense		(7	)		(8	)		(11	)		(7	)		(7	)

	8	Total non-interest expense		(128	)		(128	)		(141	)		(151	)		(129	)

	9	Segment adjustments		—			—			—			—			510

	10	Segment Earnings (loss) before income tax (expense) benefit		(927	)		3,705			1,223			3,048			(1,408	)
	11	Income tax (expense) benefit		1,445			(597	)		(265	)		(1,155	)		97
	12	Less: net (income) loss — noncontrolling interest		—			—			—			(1	)		(2	)

	13	Segment Earnings (loss), net of taxes	$	518		$	3,108		$	958		$	1,892		$	(1,313	)

	14	Net interest yield — Segment Earnings (annualized)		103 bp			129 bp			86 bp			114 bp			74 bp


(1)		See “NOTE 16: SEGMENT REPORTING” in our Form10-Q dated May 5, 2010 for more information regarding Segment Earnings.
(2)		Under our revised method, Segment Earnings gain (loss) for the Investment segment equals GAAP net income (loss) attributable to Freddie Mac for the Investments segment.

FREDDIE MAC
SEGMENT EARNINGS — SINGLE-FAMILY GUARANTEE SEGMENT⁽¹⁾⁽²⁾TABLE 8C
(unaudited)
(dollars in millions)


Line:			1Q 2009			2Q 2009			3Q 2009			4Q 2009			1Q 2010
		Segment Earnings, net of taxes:
	1	Net interest income	$	54		$	74		$	86		$	93		$	59
	2	Provision for credit losses		(8,963	)		(5,626	)		(7,922	)		(6,591	)		(6,041	)
		Non-interest income:
	3	Management and guarantee income		873			888			840			847			848
	4	Other non-interest income		134			161			198			228			210

	5	Total non-interest income		1,007			1,049			1,038			1,075			1,058

		Non-interest expense:
	6	Administrative expenses		(201	)		(211	)		(246	)		(257	)		(219	)
	7	REO operations expense		(306	)		(1	)		98			(78	)		(156	)
	8	Other non-interest expense		(2,033	)		(1,228	)		(566	)		(1,061	)		(89	)

	9	Total non-interest expense		(2,540	)		(1,440	)		(714	)		(1,396	)		(464	)

	10	Segment adjustments		—			—			—			—			(213	)

	11	Segment Earnings (loss) before income tax (expense) benefit		(10,442	)		(5,943	)		(7,512	)		(6,819	)		(5,601	)
	12	Income tax (expense) benefit		151			1,449			1,018			955			5

	13	Segment Earnings (loss), net of taxes		(10,291	)		(4,494	)		(6,494	)		(5,864	)		(5,596	)

		Reconciliation to GAAP net income (loss):
	14	Credit guarantee-related adjustments⁽³⁾		546			2,455			1,280			1,660			—
	15	Tax-related adjustments		(192	)		(859	)		(448	)		(581	)		—

	16	Total reconciling items, net of taxes		354			1,596			832			1,079			—

	17	Total net income (loss) attributable to Freddie Mac	$	(9,937	)	$	(2,898	)	$	(5,662	)	$	(4,785	)	$	(5,596	)

		Management and guarantee income — Segment Earnings:
	18	Contractual management and guarantee fees (annualized rate)		14.4 bp			14.0 bp			13.6 bp			13.3 bp			13.3 bp
	19	Amortization of credit fees (annualized rate)		4.7 bp			5.3 bp			4.5 bp			4.8 bp			4.8 bp

	20	Total management and guarantee income (annualized rate) — Segment Earnings		19.1 bp			19.3 bp			18.1 bp			18.1 bp			18.1 bp

		Credit losses — Segment Earnings:
	21	Annualized credit losses/average single-family credit guarantee portfolio		28.9 bp			41.7 bp			46.2 bp			53.6 bp			62.3 bp


(1)		See “NOTE 16: SEGMENT REPORTING” in our Form10-Q dated May 5, 2010 for more information regarding Segment Earnings.
(2)		Under our revised method, Segment Earnings gain (loss) for the Single-family Guarantee segment equals GAAP net income (loss) attributable to Freddie Mac for the Single-family Guarantee segment for the first quarter of 2010 and subsequent periods.
(3)		Consists primarily of amortization and valuation adjustments related to the guarantee asset and guarantee obligation which are excluded from Segment Earnings and cash compensation exchanged at the time of securitization, excluding buy-up and buy-down fees, which is amortized into earnings. These adjustments are recorded to periods prior to 2010 as the amendment to the accounting standards for transfers of financial assets and consolidation of VIEs was applied prospectively on January 1, 2010.

FREDDIE MAC
SEGMENT EARNINGS — MULTIFAMILY SEGMENT⁽¹⁾⁽²⁾TABLE 8D
(unaudited)
(dollars in millions)


Line:			1Q 2009			2Q 2009			3Q 2009			4Q 2009			1Q 2010
		Segment Earnings, net of taxes:

	1	Net interest income	$	195		$	198		$	224		$	239		$	238
	2	Provision for credit losses		—			(57	)		(89	)		(428	)		(29	)
		Non-interest income (loss):
	3	Management and guarantee income		21			23			22			24			24
	4	Security impairments		—			—			(54	)		(83	)		(55	)
	5	Derivative gains (losses)		(31	)		—			—			4			5
	6	Other non-interest income		(121	)		(94	)		(140	)		(107	)		108

	7	Total non-interest income (loss)		(131	)		(71	)		(172	)		(162	)		82

		Non-interest expense:
	8	Administrative expenses		(50	)		(52	)		(57	)		(62	)		(54	)
	9	REO operations expense		—			(8	)		(2	)		(10	)		(3	)
	10	Other non-interest expense		(5	)		(7	)		(5	)		(1	)		(17	)

	11	Total non-interest expense		(55	)		(67	)		(64	)		(73	)		(74	)

	12	Segment adjustments		—			—			—			—			—

	13	Segment Earnings (loss) before income tax benefit		9			3			(101	)		(424	)		217
	14	LIHTC partnerships tax benefit		151			148			148			147			147
	15	Income tax benefit (expense)		(152	)		(164	)		(131	)		(147	)		(146	)
	16	Less: Net (income) loss — noncontrolling interest		—			1			1			—			3

	17	Segment Earnings, net of taxes		8			(12	)		(83	)		(424	)		221

		Reconciliation to GAAP net income (loss):

	18	Credit guarantee-related adjustments		5			(3	)		9			(4	)		—
	19	Fair value-related adjustments⁽³⁾		—			—			(362	)		(3,399	)		—
	20	Tax-related adjustments		(2	)		1			123			1,191			—

	21	Total reconciling items		3			(2	)		(230	)		(2,212	)		—

	22	Total net income (loss) attributable to Freddie Mac	$	11		$	(14	)	$	(313	)	$	(2,636	)	$	221

	23	Net interest yield — Segment Earnings (annualized)		56 bp			56 bp			63 bp			66 bp			65 bp
		Management and guarantee income — Segment Earnings:

	24	Average contractual rate (annualized)⁽⁴⁾		52.7 bp			53.0 bp			53.7 bp			53.8 bp			52.8 bp
		Credit losses — Segment Earnings:

	25	Annualized credit losses/average multifamily mortgage portfolio		0.9 bp			4.3 bp			7.4 bp			4.6 bp			8.2 bp


(1)		See “NOTE 16: SEGMENT REPORTING” in ourForm 10-Q dated May 5, 2010 for more information regarding Segment Earnings.
(2)		Under our revised method, Segment Earnings gain (loss) for the Multifamily segment equals GAAP net income (loss) attributable to Freddie Mac for the Multifamily segment for the first quarter of 2010 and subsequent periods.
(3)		We wrote down the carrying value of our LIHTC investments to zero in our GAAP financial statements at December 31, 2009, as we will not be able to realize any value either though reductions to our taxable income and related tax liabilities or through a sale to a third party.
(4)		There are no credit fees associated with our multifamily guarantees; however, this rate excludes prepayment and certain other fees.

FREDDIE MAC
SEGMENT EARNINGS — RECONCILIATION TO GAAP RESULTS⁽¹⁾1Q 2009
TABLE 9A
(unaudited)
(dollars in millions)


								Non-Interest Income												Non-Interest Expense									Income Tax Provision								Less: Net
					Provision			Management									Other														Income						(Income)		Net
			Net		for			and									Non-Interest						REO			Other			LIHTC		Tax			Net			Loss —		Income
			Interest		Credit			Guarantee			Security			Derivative			Income			Administrative			Operations			Non-Interest			Partnerships		(Expense)			Income			Noncontrolling		(Loss) —
Line:			Income		Losses			Income⁽²⁾			Impairments			Gains (Losses)			(Loss)			Expense			Expense			Expense			Tax Credit		Benefit			(Loss)			Interests		Freddie Mac

		Segment Earnings:

	1	Investments	$	1,999	$	—		$	—		$	(6,414	)	$	1,164		$	2,452		$	(121	)	$	—		$	(7	)	$	—	$	1,445		$	518		$	—	$	518
	2	Single-family Guarantee		54		(8,963	)		873			—			—			134			(201	)		(306	)		(2,033	)		—		151			(10,291	)		—		(10,291	)
	3	Multifamily		195		—			21			—			(31	)		(121	)		(50	)		—			(5	)		151		(152	)		8			—		8
	4	All Other		—		—			—			—			—			—			—			—			—			—		(567	)		(567	)		—		(567	)

	5	Total Segment Earnings (loss), net of taxes		2,248		(8,963	)		894			(6,414	)		1,133			2,465			(372	)		(306	)		(2,045	)		151		877			(10,332	)		—		(10,332	)


		Reconciliation to Consolidated Statements of Operations:

	6	Credit guarantee-related adjustments⁽³⁾		5		6			(218	)		—			—			803			—			—			(45	)		—		—			551			—		551
	7	Reclassifications		1,606		42			104			(716	)		(952	)		(187	)		—			—			—			—		103			—			—		—
	8	Tax-related adjustments		—		—			—			—			—			—			—			—			—			—		(194	)		(194	)		—		(194	)

	9	Total reconciling items		1,611		48			(114	)		(716	)		(952	)		616			—			—			(45	)		—		(91	)		357			—		357

	10	Total per consolidated statements of operations	$	3,859	$	(8,915	)	$	780		$	(7,130	)	$	181		$	3,081		$	(372	)	$	(306	)	$	(2,090	)	$	151	$	786		$	(9,975	)	$	—	$	(9,975	)


(1)		See “NOTE 16: SEGMENT REPORTING” in ourForm 10-Q dated May 5, 2010 for more information regarding Segment Earnings.
(2)		Management and guarantee income total per consolidated statements of operations is included in other income on our GAAP consolidated statements of operations.
(3)		Consists primarily of amortization and valuation adjustments related to the guarantee asset and guarantee obligation which are excluded from Segment Earnings and cash compensation exchanged at the time of securitization, excludingbuy-up and buy-down fees, which is amortized into earnings. These adjustments are recorded to periods prior to 2010 as the amendment to the accounting standards for transfers of financial assets and consolidation of VIEs was applied prospectively on January 1, 2010.

FREDDIE MAC
SEGMENT EARNINGS — RECONCILIATION TO GAAP RESULTS⁽¹⁾2Q 2009
TABLE 9B
(unaudited)
(dollars in millions)


								Non-Interest Income												Non-Interest Expense									Income Tax Provision								Less: Net
					Provision			Management									Other														Income						(Income)		Net
			Net		for			and									Non-Interest						REO			Other			LIHTC		Tax			Net			Loss —		Income
			Interest		Credit			Guarantee			Security			Derivative			Income			Administrative			Operations			Non-Interest			Partnerships		(Expense)			Income			Noncontrolling		(Loss) —
Line:			Income		Losses			Income⁽²⁾			Impairments			Gains (Losses)			(Loss)			Expense			Expense			Expense			Tax Credit		Benefit			(Loss)			Interests		Freddie Mac

		Segment Earnings:

	1	Investments	$	2,529	$	—		$	—		$	(1,958	)	$	3,522		$	(260	)	$	(120	)	$	—		$	(8	)	$	—	$	(597	)	$	3,108		$	—	$	3,108
	2	Single-family Guarantee		74		(5,626	)		888			—			—			161			(211	)		(1	)		(1,228	)		—		1,449			(4,494	)		—		(4,494	)
	3	Multifamily		198		(57	)		23			—			—			(94	)		(52	)		(8	)		(7	)		148		(164	)		(13	)		1		(12	)
	4	All Other		—		—			—			—			—			—			—			—			—			—		106			106			—		106

	5	Total Segment Earnings (loss), net of taxes		2,801		(5,683	)		911			(1,958	)		3,522			(193	)		(383	)		(9	)		(1,243	)		148		794			(1,293	)		1		(1,292	)


		Reconciliation to Consolidated Statements of Operations:

	6	Credit guarantee-related adjustments⁽³⁾		6		(1	)		(312	)		—			—			2,812			—			—			(53	)		—		—			2,452			—		2,452
	7	Reclassifications		1,448		19			111			(255	)		(1,161	)		(262	)		—			—			—			—		100			—			—		—
	8	Tax-related adjustments		—		—			—			—			—			—			—			—			—			—		(858	)		(858	)		—		(858	)

	9	Total reconciling items		1,454		18			(201	)		(255	)		(1,161	)		2,550			—			—			(53	)		—		(758	)		1,594			—		1,594

	10	Total per consolidated statement of operations	$	4,255	$	(5,665	)	$	710		$	(2,213	)	$	2,361		$	2,357		$	(383	)	$	(9	)	$	(1,296	)	$	148	$	36		$	301		$	1	$	302


(1)		See “NOTE 16: SEGMENT REPORTING” in ourForm 10-Q dated May 5, 2010 for more information regarding Segment Earnings.
(2)		Management and guarantee income total per consolidated statements of operations is included in other income on our GAAP consolidated statements of operations.
(3)		Consists primarily of amortization and valuation adjustments related to the guarantee asset and guarantee obligation which are excluded from Segment Earnings and cash compensation exchanged at the time of securitization, excludingbuy-up and buy-down fees, which is amortized into earnings. These adjustments are recorded to periods prior to 2010 as the amendment to the accounting standards for transfers of financial assets and consolidation of VIEs was applied prospectively on January 1, 2010.

FREDDIE MAC
SEGMENT EARNINGS — RECONCILIATION TO GAAP RESULTS⁽¹⁾3Q 2009
TABLE 9C
(unaudited)
(dollars in millions)


									Non-Interest Income												Non-Interest Expense									Income Tax Provision								Less: Net
						Provision			Management									Other														Income						(Income)		Net
			Net			for			and									Non-Interest						REO			Other			LIHTC		Tax			Net			Loss —		Income
			Interest			Credit			Guarantee			Security			Derivative			Income			Administrative			Operations			Non-Interest			Partnerships		(Expense)			Income			Noncontrolling		(Loss) —
Line:			Income			Losses			Income⁽²⁾			Impairments			Gains (Losses)			(Loss)			Expense			Expense			Expense			Tax Credit		Benefit			(Loss)			Interests		Freddie Mac

		Segment Earnings:

	1	Investments	$	1,574		$	—		$	—		$	(1,004	)	$	(1,374	)	$	2,168		$	(130	)	$	—		$	(11	)	$	—	$	(265	)	$	958		$	—	$	958
	2	Single-family Guarantee		86			(7,922	)		840			—			—			198			(246	)		98			(566	)		—		1,018			(6,494	)		—		(6,494	)
	3	Multifamily		224			(89	)		22			(54	)		—			(140	)		(57	)		(2	)		(5	)		148		(131	)		(84	)		1		(83	)
	4	All Other		—			—			—			—			—			(362	)		—			—			—			—		(265	)		(627	)		—		(627	)

	5	Total Segment Earnings (loss), net of taxes		1,884			(8,011	)		862			(1,058	)		(1,374	)		1,864			(433	)		96			(582	)		148		357			(6,247	)		1		(6,246	)


		Reconciliation to Consolidated Statements of Operations:

	6	Credit guarantee-related adjustments⁽³⁾		6			1			(175	)		—			—			1,503			—			—			(46	)		—		—			1,289			—		1,289
	7	Reclassifications		2,572			37			113			(129	)		(2,401	)		(287	)		—			—			—			—		95			—			—		—
	8	Tax-related adjustments		—			—			—			—			—			—			—			—			—			—		(451	)		(451	)		—		(451	)

	9	Total reconciling items		2,578			38			(62	)		(129	)		(2,401	)		1,216			—			—			(46	)		—		(356	)		838			—		838
					��
	10	Total per consolidated statement of operations	$	4,462		$	(7,973	)	$	800		$	(1,187	)	$	(3,775	)	$	3,080		$	(433	)	$	96		$	(628	)	$	148	$	1		$	(5,409	)	$	1	$	(5,408	)


(1)		See “NOTE 16: SEGMENT REPORTING” in ourForm 10-Q dated May 5, 2010 for more information regarding Segment Earnings.
(2)		Management and guarantee income total per consolidated statements of operations is included in other income on our GAAP consolidated statements of operations.
(3)		Consists primarily of amortization and valuation adjustments related to the guarantee asset and guarantee obligation which are excluded from Segment Earnings and cash compensation exchanged at the time of securitization, excluding buy-up and buy-down fees, which is amortized into earnings. These adjustments are recorded to periods prior to 2010 as the amendment to the accounting standards for transfers of financial assets and consolidation of VIEs was applied prospectively on January 1, 2010.

FREDDIE MAC
SEGMENT EARNINGS — RECONCILIATION TO GAAP RESULTS⁽¹⁾4Q 2009
TABLE 9D
(unaudited)
(dollars in millions)


								Non-Interest Income												Non-Interest Expense									Income Tax Provision								Less: Net
					Provision			Management									Other														Income						(Income)			Net
			Net		for			and									Non-Interest						REO			Other			LIHTC		Tax			Net			Loss —			Income
			Interest		Credit			Guarantee			Security			Derivative			Income			Administrative			Operations			Non-Interest			Partnerships		(Expense)			Income			Noncontrolling			(Loss) —
Line:			Income		Losses			Income⁽²⁾			Impairments			Gains (Losses)			(Loss)			Expense			Expense			Expense			Tax Credit		Benefit			(Loss)			Interests			Freddie Mac

		Segment Earnings:

	1	Investments	$	1,988	$	—		$	—		$	(494	)	$	1,383		$	322		$	(144	)	$	—		$	(7	)	$	—	$	(1,155	)	$	1,893		$	(1	)	$	1,892
	2	Single-family Guarantee		93		(6,591	)		847			—			—			228			(257	)		(78	)		(1,061	)		—		955			(5,864	)		—			(5,864	)
	3	Multifamily		239		(428	)		24			(83	)		4			(107	)		(62	)		(10	)		(1	)		147		(147	)		(424	)		—			(424	)
	4	All Other		—		—			—			—			—			(3,291	)		—			—			(109	)		—		248			(3,152	)		—			(3,152	)

	5	Total Segment Earnings (loss), net of taxes		2,320		(7,019	)		871			(577	)		1,387			(2,848	)		(463	)		(88	)		(1,178	)		147		(99	)		(7,547	)		(1	)		(7,548	)


		Reconciliation to Consolidated Statements of Operations:

	6	Credit guarantee-related adjustments⁽³⁾		4		—			(240	)		—			—			1,937			—			—			(45	)		—		—			1,656			—			1,656
	7	Reclassifications		2,173		42			112			(90	)		(2,054	)		(275	)		—			—			—			—		92			—			—			—
	8	Tax-related adjustments		—		—			—			—			—			—			—			—			—			—		(580	)		(580	)		—			(580	)

	9	Total reconciling items		2,177		42			(128	)		(90	)		(2,054	)		1,662			—			—			(45	)		—		(488	)		1,076			—			1,076

	10	Total per consolidated statements of operations	$	4,497	$	(6,977	)	$	743		$	(667	)	$	(667	)	$	(1,186	)	$	(463	)	$	(88	)	$	(1,223	)	$	147	$	(587	)	$	(6,471	)	$	(1	)	$	(6,472	)


(1)		See “NOTE 16: SEGMENT REPORTING” in ourForm 10-Q dated May 5, 2010 for more information regarding Segment Earnings.
(2)		Management and guarantee income total per consolidated statements of operations is included in other income on our GAAP consolidated statements of operations.
(3)		Consists primarily of amortization and valuation adjustments related to the guarantee asset and guarantee obligation which are excluded from Segment Earnings and cash compensation exchanged at the time of securitization, excluding buy-up and buy-down fees, which is amortized into earnings. These adjustments are recorded to periods prior to 2010 as the amendment to the accounting standards for transfers of financial assets and consolidation of VIEs was applied prospectively on January 1, 2010.

FREDDIE MAC
SEGMENT EARNINGS — RECONCILIATION TO GAAP RESULTS⁽¹⁾1Q 2010
TABLE 9E
(unaudited)
(dollars in millions)


								Non-Interest Income												Non-Interest Expense												Income Tax Provision								Less: Net
					Provision			Management									Other																	Income						(Income)			Net
			Net		for			and									Non-Interest						REO			Other						LIHTC		Tax			Net			Loss —			Income
			Interest		Credit			Guarantee			Security			Derivative			Income			Administrative			Operations			Non-Interest			Segment			Partnerships		(Expense)			Income			Noncontrolling			(Loss) —
Line:			Income		Losses			Income⁽²⁾			Impairments			Gains (Losses)			(Loss)			Expense			Expense			Expense			Adjustments			Tax Credit		Benefit			(Loss)			Interests			Freddie Mac

		Segment Earnings:

	1	Investments	$	1,311	$	—		$	—		$	(376	)	$	(2,702	)	$	(22	)	$	(122	)	$	—		$	(7	)	$	510		$	—	$	97		$	(1,311	)	$	(2	)	$	(1,313	)
	2	Single-family Guarantee		59		(6,041	)		848			—			—			210			(219	)		(156	)		(89	)		(213	)		—		5			(5,596	)		—			(5,596	)
	3	Multifamily		238		(29	)		24			(55	)		5			108			(54	)		(3	)		(17	)		—			147		(146	)		218			3			221

	4	Total Segment Earnings (loss), net of taxes		1,608		(6,070	)		872			(431	)		(2,697	)		296			(395	)		(159	)		(113	)		297			147		(44	)		(6,689	)		1			(6,688	)


		Reconciliation to Consolidated Statements of Operations:

	5	Reclassifications		2,007		674			(624	)		(79	)		(1,988	)		10			—			—			—			—			—		—			—			—			—
	6	Segment adjustments		510		—			(213	)		—			—			—			—			—			—			(297	)		—		—			—			—			—

	7	Total reconciling items		2,517		674			(837	)		(79	)		(1,988	)		10			—			—			—			(297	)		—		—			—			—			—

	8	Total per consolidated statements of operations	$	4,125	$	(5,396	)	$	35		$	(510	)	$	(4,685	)	$	306		$	(395	)	$	(159	)	$	(113	)	$	—		$	147	$	(44	)	$	(6,689	)	$	1		$	(6,688	)


(1)		See “NOTE 16: SEGMENT REPORTING” in ourForm 10-Q dated May 5, 2010 for more information regarding Segment Earnings.
(2)		Management and guarantee income total per consolidated statements of operations is included in other income on our GAAP consolidated statements of operations.

Federal Home Loan Mortgage (FMCC) 8-KFreddie Mac Reports First Quarter 2010 Financial Results