Federal Home Loan Mortgage (FMCC) 8-K Freddie Mac Reports Third Quarter 2010 Financial Results

Exhibit 99.2

FREDDIE MAC
THIRD QUARTER 2010 FINANCIAL RESULTS
FINANCIAL STATEMENTS AND CORE TABLES

TABLE OF CONTENTS

	GAAP Financial Statements	Page
	Consolidated Statements of Operations		2
	Consolidated Balance Sheets		3
	Consolidated Statements of Equity (Deficit)		4
Table	GAAP Financial Results
1A	Net Interest Yield Analysis		5
1B	Net Interest Income		6
2	Non-Interest Income (Loss)		7
3	Non-Interest Expense		8
4	Credit Quality Indicators		9
5	Single-Family Non-Credit-Enhanced Serious Delinquency and Foreclosure Activity by Region		10
6	Real Estate Owned (REO) Activity		11
	Segment Earnings Results
7A	Segment Earnings — Consolidated		12
7B	Segment Earnings — Investments Segment		13
7C	Segment Earnings — Single-Family Guarantee Segment		14
7D	Segment Earnings — Multifamily Segment		15

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

					Three Months Ended						Nine Months Ended
					September 30,						September 30,
Line:					2010			2009			2010			2009
					(dollars in millions,
					except share-related amounts)
		Interest income
			Mortgage loans:
	1			Held by consolidated trusts	$	21,473		$	—		$	66,319		$	—
	2			Unsecuritized		2,305			1,740			6,445			5,041
	3			Total mortgage loans		23,778			1,740			72,764			5,041
	4		Investments in securities			3,557			8,080			11,030			25,574
	5		Other			48			45			115			214
	6			Total interest income		27,383			9,865			83,909			30,829
		Interest expense
	7		Debt securities of consolidated trusts			(18,721	)		—			(57,412	)		—
	8		Other debt			(4,145	)		(5,125	)		(13,212	)		(17,393	)
	9			Total interest expense		(22,866	)		(5,125	)		(70,624	)		(17,393	)
	10		Expense related to derivatives			(238	)		(278	)		(745	)		(860	)
	11	Net interest income				4,279			4,462			12,540			12,576
	12	Provision for credit losses				(3,727	)		(7,973	)		(14,152	)		(22,553	)
	13	Net interest income (loss) after provision for credit losses				552			(3,511	)		(1,612	)		(9,977	)
		Non-interest income (loss)
	14		Gains (losses) on extinguishment of debt securities of consolidated trusts			(66	)		—			(160	)		—
	15		Gains (losses) on retirement of other debt			(50	)		(215	)		(229	)		(475	)
	16		Gains (losses) on debt recorded at fair value			(366	)		(238	)		525			(568	)
	17		Derivative gains (losses)			(1,130	)		(3,775	)		(9,653	)		(1,233	)
			Impairment of available-for-sale securities:
	18		Total other-than-temporary impairment of available-for-sale securities			(523	)		(4,199	)		(1,054	)		(21,802	)
	19		Portion of other-than-temporary impairment recognized in AOCI			(577	)		3,012			(984	)		11,272
	20		Net impairment of available-for-sale securities recognized in earnings			(1,100	)		(1,187	)		(2,038	)		(10,530	)
	21		Other gains (losses) on investment securities recognized in earnings			(503	)		2,684			(1,176	)		5,693
	22		Other income			569			1,649			1,604			6,158
	23	Non-interest income (loss)				(2,646	)		(1,082	)		(11,127	)		(955	)
		Non-interest expense
	24		Salaries and employee benefits			(224	)		(230	)		(688	)		(658	)
	25		Professional services			(60	)		(91	)		(181	)		(215	)
	26		Occupancy expense			(16	)		(16	)		(47	)		(49	)
	27		Other administrative expenses			(76	)		(96	)		(242	)		(266	)
	28			Total administrative expenses		(376	)		(433	)		(1,158	)		(1,188	)
	29		Real estate owned operations income (expense)			(337	)		96			(456	)		(219	)
	30		Other expenses			(115	)		(628	)		(360	)		(4,014	)
	31	Non-interest expense				(828	)		(965	)		(1,974	)		(5,421	)
	32	Loss before income tax benefit				(2,922	)		(5,558	)		(14,713	)		(16,353	)
	33	Income tax benefit				411			149			800			1,270
	34	Net loss				(2,511	)		(5,409	)		(13,913	)		(15,083	)
	35		Less: Net loss attributable to noncontrolling interest			—			1			1			2
	36	Net loss attributable to Freddie Mac				(2,511	)		(5,408	)		(13,912	)		(15,081	)
	37		Preferred stock dividends			(1,558	)		(1,293	)		(4,146	)		(2,813	)
	38	Net loss attributable to common stockholders			$	(4,069	)	$	(6,701	)	$	(18,058	)	$	(17,894	)
		Loss per common share:
	39		Basic		$	(1.25	)	$	(2.06	)	$	(5.56	)	$	(5.50	)
	40		Diluted		$	(1.25	)	$	(2.06	)	$	(5.56	)	$	(5.50	)
		Weighted average common shares outstanding (in thousands):
	41		Basic			3,248,794			3,253,172			3,249,753			3,254,261
	42		Diluted			3,248,794			3,253,172			3.249,753			3,254,261
	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 2010 are not directly comparable to our financial results for 2009. See “NOTE 2: CHANGE IN ACCOUNTING PRINCIPLES” within our Form 10-Q dated November 3, 2010 for further information.

2

FREDDIE MAC
CONSOLIDATED BALANCE SHEETS⁽¹⁾
(unaudited)

					September 30,			December 31,
Line:					2010			2009
					(dollars in millions,
					except share-related amounts)
		Assets
	1	Cash and cash equivalents (includes $1 at September 30, 2010 related to our consolidated VIEs)			$	27,920		$	64,683
	2	Restricted cash and cash equivalents (includes $5,817 at September 30, 2010 related to our consolidated VIEs)				6,280			527
	3	Federal funds sold and securities purchased under agreements to resell (includes $25,700 at September 30, 2010 related to our consolidated VIEs)				44,945			7,000
		Investments in securities:
	4			Available-for-sale, at fair value (includes $541 and $10,879, respectively, pledged as collateral that may be repledged)		239,585			384,684
	5			Trading, at fair value		63,208			222,250
	6			Total investments in securities		302,793			606,934
		Mortgage loans:
			Held-for-investment, at amortized cost:
	7			By consolidated trusts (net of allowances for loan losses of $13,228 at September 30, 2010)		1,681,736			—
	8			Unsecuritized (net of allowances for loan losses of $25,173 and $1,441, respectively)		186,974			111,565
	9			Total held-for-investment mortgage loans, net		1,868,710			111,565
	10			Held-for-sale, at lower-of-cost-or-fair-value (includes $2,864 and $2,799 at fair value, respectively)		2,864			16,305
	11			Total mortgage loans, net		1,871,574			127,870
	12	Accrued interest receivable (includes $7,203 at September 30, 2010 related to our consolidated VIEs)				9,009			3,376
	13	Derivative assets, net				100			215
	14	Real estate owned, net (includes $138 at September 30, 2010 related to our consolidated VIEs)				7,511			4,692
	15	Deferred tax assets, net				6,134			11,101
	16	Other assets (includes $7,057 at September 30, 2010 related to our consolidated VIEs)				12,464			15,386
	17		Total assets		$	2,288,730		$	841,784
		Liabilities and equity (deficit)
		Liabilities
	18	Accrued interest payable (includes $6,710 at September 30, 2010 related to our consolidated VIEs)			$	10,097		$	5,047
		Debt, net:
	19		Debt securities of consolidated trusts held by third parties			1,542,503			—
	20		Other debt (includes $4,998 and $8,918 at fair value, respectively)			727,391			780,604
	21		Total debt, net			2,269,894			780,604
	22	Derivative liabilities, net				1,071			589
	23	Other liabilities (includes $3,808 at September 30, 2010 related to our consolidated VIEs)				7,726			51,172
	24		Total liabilities			2,288,788			837,412
	25	Commitments and contingencies
		Equity (deficit)
		Freddie Mac stockholders’ equity (deficit)
	26		Senior preferred stock, at redemption value			64,100			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 649,164,670 shares and 648,369,668 shares outstanding, respectively			—			—
	29		Additional paid-in capital			4			57
	30		Retained earnings (accumulated deficit)			(61,017	)		(33,921	)
			Accumulated other comprehensive income (loss), or AOCI, net of taxes, related to:
	31			Available-for-sale securities (includes $12,164 and $15,947, respectively, net of taxes, of other-than-temporary impairments)		(10,775	)		(20,616	)
	32			Cash flow hedge relationships		(2,392	)		(2,905	)
	33			Defined benefit plans		(133	)		(127	)
	34			Total AOCI, net of taxes		(13,300	)		(23,648	)
	35		Treasury stock, at cost, 76,699,216 shares and 77,494,218 shares, respectively			(3,954	)		(4,019	)
	36			Total Freddie Mac stockholders’ equity (deficit)		(58	)		4,278
	37	Noncontrolling interest				—			94
	38		Total equity (deficit)			(58	)		4,372
	39		Total liabilities and equity (deficit)		$	2,288,730		$	841,784

(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 2010 are not directly comparable to our financial results for 2009. See “NOTE 2: CHANGE IN ACCOUNTING PRINCIPLES” in our Form 10-Q dated November 3, 2010 for further information.

3

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

			Nine Months Ended September 30,
			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		—		12,400			—			36,900
	3	Senior preferred stock, end of period		1		64,100			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			—
	7	Common stock, end of period		726		—			726			—
		Additional paid-in capital
	8	Balance, beginning of year				57						19
	9	Stock-based compensation				20						49
	10	Income tax benefit from stock-based compensation				1						7
	11	Common stock issuances				(66	)					(88	)
	12	Noncontrolling interest purchase				(31	)					—
	13	Transfer from retained earnings (accumulated deficit)				23						63
	14	Additional paid-in capital, end of period				4						50
		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	Cumulative effect of change in accounting principle				—						14,996
	19	Net loss attributable to Freddie Mac				(13,912	)					(15,081	)
	20	Senior preferred stock dividends declared				(4,146	)					(2,813	)
	21	Dividend equivalent payments on expired stock options				(4	)					(5	)
	22	Transfer to additional paid-in capital				(23	)					(63	)
	23	Retained earnings (accumulated deficit), end of period				(61,017	)					(26,157	)
		AOCI, net of taxes
	24	Balance, beginning of year				(23,648	)					(32,357	)
	25	Cumulative effect of change in accounting principle				(2,690	)					—
	26	Balance, beginning of year, as adjusted				(26,338	)					(32,357	)
	27	Cumulative effect of change in accounting principle				—						(9,931	)
	28	Changes in unrealized gains (losses) related toavailable-for-sale securities, net of reclassification adjustments				12,524						15,333
	29	Changes in unrealized gains (losses) related to cash flow hedge relationships, net of reclassification adjustments				520						594
	30	Changes in defined benefit plans				(6	)					6
	31	AOCI, net of taxes, end of period				(13,300	)					(26,355	)
		Treasury stock, at cost
	32	Balance, beginning of year		77		(4,019	)		79			(4,111	)
	33	Common stock issuances		—		65			(1	)		89
	34	Treasury stock, end of period		77		(3,954	)		78			(4,022	)
		Noncontrolling interest
	35	Balance, beginning of year				94						97
	36	Cumulative effect of change in accounting principle				(2	)					—
	37	Balance, beginning of year, as adjusted				92						97
	38	Net income (loss) attributable to noncontrolling interest				(1	)					(2	)
	39	Noncontrolling interest purchase				(89	)					—
	40	Dividends and other				(2	)					—
	41	Noncontrolling interest, end of period				—						95
	42	Total equity (deficit)			$	(58	)				$	9,420
		Comprehensive income (loss)
	43	Net loss			$	(13,913	)				$	(15,083	)
	44	Changes in other comprehensive income (loss), net of taxes, net of reclassification adjustments				13,038						15,933
	45	Comprehensive income (loss)				(875	)					850
	46	Less: Comprehensive (income) loss attributable to noncontrolling interest				1						2
	47	Total comprehensive income (loss) attributable to Freddie Mac			$	(874	)				$	852

4

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

														Nine Months Ended
		Full-year												September 30,
		2009			1Q 2010			2Q 2010			3Q 2010			2009			2010
	Net Interest Income:
1	Net interest income	$	17,073		$	4,125		$	4,136		$	4,279		$	12,576		$	12,540
	Average Balances:
2	Cash and cash equivalents	$	50,190		$	60,219		$	37,391		$	32,956		$	51,912		$	43,522
3	Federal funds sold and securities purchased under agreements to resell		28,524			51,645			37,238			51,439			30,801			46,774
	Mortgage-related securities:
4	Mortgage-related securities(2)(3)		675,167			593,512			540,380			500,500			688,301			544,797
5	Extinguishment of PCs held by Freddie Mac		—			(256,951	)		(220,350	)		(195,890	)		—			(224,397	)
6	Total mortgage-related securities, net		675,167			336,561			320,030			304,610			688,301			320,400
7	Non-mortgage-related securities(2)		16,471			20,189			32,571			28,631			15,691			27,130
8	Mortgage loans held by consolidated trusts(3)(4)		—			1,786,834			1,727,823			1,702,055			—			1,738,904
9	Unsecuritized mortgage loans(4)		127,429			160,688			213,704			222,138			125,379			198,844
10	Total interest-earning assets		897,781			2,416,136			2,368,757			2,341,829			912,084			2,375,574
	Debt securities of consolidated trusts:
11	Debt securities of consolidated trusts including PCs held by Freddie Mac(3)		—			1,801,525			1,739,519			1,723,095			—			1,754,713
12	Extinguishment of PCs held by Freddie Mac		—			(256,951	)		(220,350	)		(195,890	)		—			(224,397	)
13	Total debt securities of consolidated trusts held by third parties		—			1,544,574			1,519,169			1,527,205			—			1,530,316
	Other debt:(3)
14	Short-term debt		287,259			242,938			226,624			207,673			304,122			225,745
15	Long-term debt		557,184			556,907			561,353			542,842			558,337			553,701
16	Total other debt		844,443			799,845			787,977			750,515			862,459			779,446
17	Total interest-bearing liabilities		844,443			2,344,419			2,307,146			2,277,720			862,459			2,309,762
18	Net non-interest-bearing funding		53,338			71,717			61,611			64,109			49,625			65,812
19	Total funding of interest-earning assets	$	897,781		$	2,416,136		$	2,368,757		$	2,341,829		$	912,084		$	2,375,574
	Yield/Cost:
20	Cash and cash equivalents		0.38	%		0.12	%		0.19	%		0.28	%		0.44	%		0.18	%
21	Federal funds sold and securities purchased under agreements to resell		0.17			0.12			0.18			0.19			0.18			0.16
	Mortgage-related securities:
22	Mortgage-related securities		4.82			4.91			4.76			4.84			4.83			4.84
23	Extinguishment of PCs held by Freddie Mac		—			(5.36	)		(5.29	)		(5.19	)		—			(5.29	)
24	Total mortgage-related securities, net		4.82			4.56			4.40			4.62			4.83			4.52
25	Non-mortgage-related securities		4.42			1.21			0.67			0.59			5.47			0.78
26	Mortgage loans held by consolidated trusts		—			5.09			5.12			5.05			—			5.09
27	Unsecuritized mortgage loans		5.35			4.88			4.08			4.15			5.36			4.32
28	Yield on total interest-earning assets		4.49			4.74			4.71			4.67			4.51			4.71
	Debt securities of consolidated trusts:
29	Debt securities of consolidated trusts including PCs held by Freddie Mac		—			(5.13	)		(5.05	)		(4.94	)		—			(5.04	)
30	Extinguishment of PCs held by Freddie Mac		—			5.36			5.29			5.19			—			5.29
31	Total debt securities of consolidated trusts held by third parties		—			(5.09	)		(5.02	)		(4.90	)		—			(5.00	)
	Other debt:
32	Short-term debt		(0.78	)		(0.23	)		(0.24	)		(0.27	)		(0.88	)		(0.25	)
33	Long-term debt		(3.57	)		(3.20	)		(3.08	)		(2.94	)		(3.67	)		(3.08	)
34	Total other debt		(2.62	)		(2.30	)		(2.27	)		(2.20	)		(2.68	)		(2.26	)
35	Cost of interest-bearing liabilities		(2.62	)		(4.14	)		(4.08	)		(4.01	)		(2.68	)		(4.08	)
36	Income (expense) related to derivatives		(0.13	)		(0.04	)		(0.04	)		(0.04	)		(0.13	)		(0.04	)
37	Impact of net non-interest-bearing funding		0.16			0.12			0.11			0.11			0.15			0.11
38	Total funding of interest-earning assets		(2.59	)		(4.06	)		(4.01	)		(3.94	)		(2.66	)		(4.01	)
39	Net interest yield		1.90			0.68			0.70			0.73			1.85			0.70

(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 2010 are not directly comparable to our financial results for 2009. See “NOTE 2: CHANGE IN ACCOUNTING PRINCIPLES” in our Form 10-Q dated November 3, 2010 for further information.
(2)	For securities, we calculate average balances based on their amortized cost.
(3)	When we purchase multi-class resecuritization securities, we record them as investments in debt securities. Interest income from the investments in debt securities is recognized as well as the interest income from the mortgage loans backing the PCs held by the trusts, which underlie multi-class Structured Securities. Additionally, the interest expense from the unsecured debt issued to purchase the security is recognized along with the interest expense of the debt issued to third parties of the PC trusts we consolidate which underlie multi-class Structured Securities.
(4)	Non-performing loans, where interest income is generally recognized when collected, are included in average balances.

5

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

					Full-year												Nine Months Ended September 30,
					2009			1Q 2010			2Q 2010			3Q 2010			2009			2010
	Net Interest Income:
1	Contractual amounts of net interest income(2)				$	18,907		$	4,457		$	4,534		$	4,353		$	13,910		$	13,344
	Amortization income (expense), net:(3)
2		Accretion of impairments on available-for-sale securities(4)				1,180			76			81			157			1,091			314
		Asset-related amortization expense, net:
3			Mortgage loans held by consolidated trusts			—			(9	)		(49	)		(202	)		—			(260	)
4			Unsecured mortgage loans			233			75			85			84			154			244
5			Mortgage-related securities			(1,345	)		(31	)		(160	)		(50	)		(1,132	)		(241	)
6			Other assets			30			11			16			18			20			45
7				Asset-related amortization expense, net		(1,082	)		46			(108	)		(150	)		(958	)		(212	)
		Debt-related amortization expense net:
8			Debt securities of consolidated trusts			—			13			97			331			—			441
9			Other long-term debt securities			(809	)		(209	)		(219	)		(174	)		(607	)		(602	)
10				Debt-related amortization expense, net		(809	)		(196	)		(122	)		157			(607	)		(161	)
11				Total amortization income (expense), net		(711	)		(74	)		(149	)		164			(474	)		(59	)
12	Expense related to derivatives(5)					(1,123	)		(258	)		(249	)		(238	)		(860	)		(745	)
13	Net interest income					17,073			4,125			4,136			4,279			12,576			12,540
14	Provision for credit losses					(29,530	)		(5,396	)		(5,029	)		(3,727	)		(22,553	)		(14,152	)
15	Net interest income after provision for credit losses				$	(12,457	)	$	(1,271	)	$	(893	)	$	552		$	(9,977	)	$	(1,612	)

(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 2010 are not directly comparable to our financial results for 2009. See “NOTE 2: CHANGE IN ACCOUNTING PRINCIPLES” in our Form 10-Q dated November 3, 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 affects earnings.

6

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

																Nine Months Ended
				Full-year												September 30,
				2009			1Q 2010			2Q 2010			3Q 2010			2009			2010
	Non-Interest Income (Loss):
1	Gains (losses) on extinguishment of debt securities of consolidated trusts			$	—		$	(98	)	$	4		$	(66	)	$	—		$	(160	)
2	Gains (losses) on retirement of other debt				(568	)		(38	)		(141	)		(50	)		(475	)		(229	)
	Gains (losses) on debt recorded at fair value:
3		Translation gains (losses)			(209	)		321			491			(386	)		(315	)		426
4		Market value adjustments			(195	)		26			53			20			(253	)		99
5			Total gains (losses) on debt recorded at fair value		(404	)		347			544			(366	)		(568	)		525
	Derivative gains (losses):
		Foreign-currency denominated derivatives gains (losses):
6			Foreign-currency swaps gains (losses)		138			(331	)		(484	)		382			248			(433	)
7			Receive-fixed swaps — foreign-currency denominated gains (losses)		64			(8	)		(57	)		(31	)		122			(96	)
8		U.S. dollar denominated derivative gains (losses):			1,841			(2,997	)		(2,086	)		(536	)		1,110			(5,619	)
9		Accrual of periodic settlements			(3,943	)		(1,349	)		(1,211	)		(945	)		(2,713	)		(3,505	)
10			Total derivative gains (losses)		(1,900	)		(4,685	)		(3,838	)		(1,130	)		(1,233	)		(9,653	)
11	Total other-than-temporary impairment of available-for-sale securities				(23,125	)		(417	)		(114	)		(523	)		(21,802	)		(1,054	)
12	Portion of other-than-temporary impairment recognized in AOCI				11,928			(93	)		(314	)		(577	)		11,272			(984	)
13		Net impairment of available-for-sale securities recognized in earnings			(11,197	)		(510	)		(428	)		(1,100	)		(10,530	)		(2,038	)
	Other gains (losses) on investment securities recognized in earnings:
14		Gains (losses) on trading securities			4,882			(417	)		(277	)		(561	)		4,964			(1,255	)
15		Gains (losses) on sale of available-for-sale securities			1,083			1			20			58			729			79
16			Total other gains (losses) on investment securities recognized in earnings		5,965			(416	)		(257	)		(503	)		5,693			(1,176	)
	Other income (loss)
17		Management and guarantee income			3,033			35			37			35			2,290			107
18		Gains (losses) on guarantee asset			3,299			(12	)		(13	)		(11	)		2,241			(36	)
19		Income on guarantee obligation			3,479			36			36			34			2,685			106
20		Gains (losses) on sale of mortgage loans			745			95			121			28			576			244
21		Lower-of-cost-or-fair-value adjustments on held-for-sale mortgage loans			(679	)		—			—			—			(591	)		—
22		Gains (losses) on mortgage loans recorded at fair value			(190	)		21			5			128			(90	)		154
23		Recoveries on loans impaired upon purchase			379			169			227			247			229			643
24		Low-income housing tax credit partnerships			(4,155	)		—			—			—			(752	)		—
25		Trust management income (expense)			(761	)		—			—			—			(600	)		—
26		All other			222			202			76			108			170			386
27			Total other income (loss)		5,372			546			489			569			6,158			1,604
28			Total non-interest income (loss)	$	(2,732	)	$	(4,854	)	$	(3,627	)	$	(2,646	)	$	(955	)	$	(11,127	)

(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 2010 are not directly comparable to our financial results for 2009. See “NOTE 2: CHANGE IN ACCOUNTING PRINCIPLES” within ourForm 10-Q dated November 3, 2010 for further information.

7

FREDDIE MAC
TABLE 3 — NON-INTEREST EXPENSE⁽¹⁾ (unaudited) (dollars in millions)

											Nine Months Ended
		Full-year									September 30,
		2009		1Q 2010		2Q 2010			3Q 2010		2009		2010
	Non-Interest Expense:
	Administrative expenses:
1	Salaries and employee benefits	$	912	$	234	$	230		$	224	$	658	$	688
2	Professional services		310		71		50			60		215		181
3	Occupancy expense		68		16		15			16		49		47
4	Other administrative expenses		361		74		92			76		266		242
5	Total administrative expenses		1,651		395		387			376		1,188		1,158
6	Real estate owned, or REO, operations (income) expense		307		159		(40	)		337		219		456
	Other expenses:
7	Losses on loans purchased		4,754		17		3			3		3,742		23
8	All other		483		96		129			112		272		337
9	Total other expenses		5,237		113		132			115		4,014		360
10	Total non-interest expense	$	7,195	$	667	$	479		$	828	$	5,421	$	1,974

(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 2010 are not directly comparable to our financial results for 2009. See “NOTE 2: CHANGE IN ACCOUNTING PRINCIPLES” within ourForm 10-Q dated November 3, 2010 for further information.

8

FREDDIE MAC
TABLE 4 — CREDIT QUALITY INDICATORS (unaudited) (dollars in millions)

																							Nine Months Ended
																							September 30,
		1Q 2009			2Q 2009			3Q 2009			4Q 2009			1Q 2010			2Q 2010			3Q 2010			2009			2010
	Credit Enhancements:
1	Credit-enhanced percentage of mortgage loan portfolio purchases		8	%		6	%		7	%		11	%		13	%		8	%		8	%		7	%		10	%
2	Credit-enhanced percentage of mortgage loan portfolio(1) (period end)		17	%		17	%		16	%		16	%		16	%		16	%		15	%		16	%		15	%
	Delinquencies Rates: at period end(2)(3)
	Single-family:
3	Non-credit-enhanced		1.75	%		2.15	%		2.58	%		3.02	%		3.18	%		3.08	%		2.97	%		2.58	%		2.97	%
4	Credit-enhanced		5.37	%		6.33	%		7.47	%		8.68	%		8.87	%		8.50	%		8.13	%		7.47	%		8.13	%
5	Total Single-family, including Structured Transactions		2.41	%		2.89	%		3.43	%		3.98	%		4.13	%		3.96	%		3.80	%		3.43	%		3.80	%
	Multifamily:
6	Non-credit-enhanced		0.07	%		0.05	%		0.03	%		0.07	%		0.13	%		0.10	%		0.18	%		0.03	%		0.18	%
7	Credit enhanced		0.37	%		0.91	%		1.02	%		1.13	%		1.11	%		1.66	%		1.61	%		1.02	%		1.61	%
8	Total Multifamily, excluding Structured Transactions		0.10	%		0.15	%		0.14	%		0.19	%		0.24	%		0.28	%		0.36	%		0.14	%		0.36	%
9	Structured Transactions		1.35	%		0.61	%		0.93	%		0.59	%		0.41	%		0.37	%		0.30	%		0.93	%		0.30	%
10	Total Multifamily, including Structured Transactions		0.12	%		0.16	%		0.15	%		0.20	%		0.25	%		0.28	%		0.35	%		0.15	%		0.35	%
	Single-family loan workouts(3)(4) (number of units):
11	Loan modifications		24,623			15,603			9,013			15,805			44,076			49,492			38,121			49,239			131,689
12	Repayment plans		10,459			7,409			7,728			8,129			8,761			7,455			7,030			25,596			23,246
13	Forbearance agreements		1,448			1,421			2,979			8,780			8,858			12,815			6,976			5,848			28,649
14	Short sales and deed-in-lieu transactions(5)		2,732			4,259			5,695			6,533			7,064			9,542			10,472			12,686			27,078
15	Total single-family loan workouts		39,262			28,692			25,415			39,247			68,759			79,304			62,599			93,369			210,662
	Non-performing assets(3) (at period end):
16	Non-performing mortgage loans	$	58,965		$	72,171		$	86,285		$	99,227		$	110,644		$	112,411		$	113,492		$	86,285		$	113,492
17	REO assets, net		2,948			3,416			4,234			4,692			5,468			6,298			7,511			4,234			7,511
18	Total non-performing assets	$	61,913		$	75,587		$	90,519		$	103,919		$	116,112		$	118,709		$	121,003		$	90,519		$	121,003
	REO Operations Income (Expense):
19	Single-family	$	(306	)	$	(1	)	$	98		$	(78	)	$	(156	)	$	41		$	(337	)	$	(209	)	$	(452	)
20	Multifamily		—			(8	)		(2	)		(10	)		(3	)		(1	)		—			(10	)		(4	)
21	Total	$	(306	)	$	(9	)	$	96		$	(88	)	$	(159	)	$	40		$	(337	)	$	(219	)	$	(456	)
	Loan Loss Reserves:(6)
22	Beginning balance	$	15,618		$	22,802		$	25,787		$	30,564		$	33,857		$	36,811		$	38,319		$	15,618		$	33,857
23	Adjustments to beginning balance(7)		—			—			—			—			(186	)		—			—			—			(186	)
24	Provision for credit losses(8)		8,915			5,665			7,973			6,977			5,396			5,029			3,727			22,553			14,152
25	Charge-offs — single-family, net		(972	)		(1,840	)		(2,155	)		(2,326	)		(2,634	)		(3,748	)		(3,723	)		(4,967	)		(10,105	)
26	Charge-offs — multifamily, net		(2	)		(2	)		(15	)		(2	)		(18	)		(27	)		(23	)		(19	)		(68	)
27	Transfers, net		(757	)		(838	)		(1,026	)		(1,356	)		396			254			296			(2,621	)		946
28	Ending balance	$	22,802		$	25,787		$	30,564		$	33,857		$	36,811		$	38,319		$	38,596		$	30,564		$	38,596
	Total Credit Losses:(9)
29	Total credit losses	$	1,320		$	1,916		$	2,156		$	2,509		$	2,928		$	3,879		$	4,239		$	5,392		$	11,046
30	Annualized credit losses / average mortgage loan portfolio(10)		27.7 bps			39.8 bps			44.3 bps			51.1 bps			59.5 bps			79.1 bps			87.0 bps			37.3 bps			75.2 bps

(1)	Based on the total mortgage portfolio, 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 three monthly payments or more delinquent or in foreclosure while multifamily delinquencies are based on UPB of loans two monthly payments 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.
(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.
(4)	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 category may also be included within another category. Many borrowers complete a short-term forbearance agreement before one of the other alternatives is pursued or completed. We only report activity for a single loan in the forbearance category during each quarterly period; however, a single loan may be reported in the forbearance category in separate periods. For more information on our loan workout activities see “MD&A — CREDIT RISKS — Loss Mitigation Activities” in our 2009Form 10-K dated February 24, 2010.
(5)	In the third quarter of 2010, we began to exclude third-party sales at foreclosure auctions. Prior period amounts have been revised to conform to the current period presentation.
(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” in ourForm 10-Q dated November 3, 2010 for additional information. Results for the second quarter of 2010 and the nine month period ended September 30, 2010 include an out-of-period accounting adjustment which resulted in a $1.3 billion increase in our allowance for loan losses and consequently our provision for credit losses. For further details related to this out-of-period accounting adjustment, see “NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES” in ourForm 10-Q dated November 3, 2010.
(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 $417 million and $187 million for the nine months ended September 30, 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.

9

FREDDIE MAC
TABLE 5 — SINGLE-FAMILY NON-CREDIT-ENHANCED SERIOUS DELINQUENCY AND FORECLOSURE ACTIVITY BY REGION⁽¹⁾ (unaudited)

			3Q 2009				4Q 2009				1Q 2010				2Q 2010				3Q 2010
			Number of Loans				Number of Loans				Number of Loans				Number of Loans				Number of Loans
			(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		2,394				2,397				2,408				2,404				2,372
2		Delinquent three or more payments		25		1.05%		31		1.30%		34		1.39%		31		1.27%		27		1.16%
3		Foreclosures approved and in-process		22		0.93%		25		1.04%		27		1.13%		28		1.18%		31		1.29%
4		Total seriously delinquent loans		47		1.98%		56		2.34%		61		2.52%		59		2.45%		58		2.45%
	Southeast(2)
5		Total number of loans		2,002				2,001				2,001				1,991				1,960
6		Delinquent three or more payments		28		1.42%		35		1.75%		35		1.73%		33		1.67%		28		1.43%
7		Foreclosures approved and in-process		43		2.16%		49		2.42%		53		2.67%		54		2.71%		55		2.83%
8		Total seriously delinquent loans		71		3.58%		84		4.17%		88		4.40%		87		4.38%		83		4.26%
	North Central(2)
9		Total number of loans		2,287				2,280				2,284				2,271				2,235
10		Delinquent three or more payments		22		0.95%		26		1.13%		26		1.14%		24		1.03%		20		0.88%
11		Foreclosures approved and in-process		22		0.96%		25		1.11%		27		1.18%		27		1.21%		29		1.28%
12		Total seriously delinquent loans		44		1.91%		51		2.24%		53		2.32%		51		2.24%		49		2.16%
	Southwest(2)
13		Total number of loans		1,398				1,401				1,407				1,400				1,375
14		Delinquent three or more payments		9		0.62%		11		0.76%		11		0.76%		9		0.69%		9		0.62%
15		Foreclosures approved and in-process		7		0.50%		8		0.56%		9		0.63%		9		0.62%		9		0.65%
16		Total seriously delinquent loans		16		1.12%		19		1.32%		20		1.39%		18		1.31%		18		1.27%
	West(2)
17		Total number of loans		2,302				2,307				2,329				2,332				2,301
18		Delinquent three or more payments		45		1.94%		56		2.45%		60		2.60%		56		2.39%		47		2.04%
19		Foreclosures approved and in-process		45		1.96%		47		2.06%		50		2.13%		49		2.10%		50		2.18%
20		Total seriously delinquent loans		90		3.90%		103		4.51%		110		4.73%		105		4.49%		97		4.22%
	Total
21		Total number of loans		10,383				10,386				10,429				10,398				10,246
22		Delinquent three or more payments		129		1.24%		159		1.53%		166		1.59%		153		1.47%		131		1.28%
23		Foreclosures approved and in-process		139		1.34%		154		1.49%		166		1.59%		167		1.61%		174		1.70%
24		Total seriously delinquent loans		268		2.58%		313		3.02%		332		3.18%		320		3.08%		305		2.97%

(1)	Includes single-family non-credit-enhanced mortgage loans in our single-family credit guarantee portfolio, but regional data excludes certain Structured Securities for which the regional data is not available.
(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.

10

FREDDIE MAC
TABLE 6 — REAL ESTATE OWNED (REO) ACTIVITY (unaudited)

		3Q 2009			4Q 2009			1Q 2010			2Q 2010			3Q 2010
	Property Units, by Region:(1)
	Northeast
1	Beginning Balance		3,180			3,832			4,619			5,460			6,316
2	Adjustment to beginning balance(2)		—			—			109			—			—
3	Properties Acquired		2,103			2,476			2,644			3,086			3,673
4	Properties Disposed		(1,451	)		(1,689	)		(1,912	)		(2,230	)		(2,263	)
5	Ending Property Inventory		3,832			4,619			5,460			6,316			7,726
	Southeast
6	Beginning Balance		6,496			7,660			8,749			11,763			14,483
7	Adjustment to beginning balance(2)		—			—			242			—			—
8	Properties Acquired		5,332			5,927			8,034			9,594			11,301
9	Properties Disposed		(4,168	)		(4,838	)		(5,262	)		(6,874	)		(7,450	)
10	Ending Property Inventory		7,660			8,749			11,763			14,483			18,334
	North Central
11	Beginning Balance		10,901			12,915			13,648			16,212			18,393
12	Adjustment to beginning balance(2)		—			—			262			—			—
13	Properties Acquired		5,743			5,306			7,199			8,119			8,759
14	Properties Disposed		(3,729	)		(4,573	)		(4,897	)		(5,938	)		(5,783	)
15	Ending Property Inventory		12,915			13,648			16,212			18,393			21,369
	Southwest
16	Beginning Balance		3,329			4,063			4,561			5,367			6,156
17	Adjustment to beginning balance(2)		—			—			48			—			—
18	Properties Acquired		2,540			2,649			3,090			3,601			4,442
19	Properties Disposed		(1,806	)		(2,151	)		(2,332	)		(2,812	)		(2,688	)
20	Ending Property Inventory		4,063			4,561			5,367			6,156			7,910
	West
21	Beginning Balance		10,800			12,670			13,475			15,037			16,842
22	Adjustment to beginning balance(2)		—			—			679			—			—
23	Properties Acquired		8,657			8,392			8,449			10,267			10,881
24	Properties Disposed		(6,787	)		(7,587	)		(7,566	)		(8,462	)		(8,152	)
25	Ending Property Inventory		12,670			13,475			15,037			16,842			19,571
	Total
26	Beginning Balance		34,706			41,140			45,052			53,839			62,190
27	Adjustment to beginning balance(2)		—			—			1,340			—			—
28	Properties Acquired		24,375			24,750			29,416			34,667			39,056
29	Properties Disposed		(17,941	)		(20,838	)		(21,969	)		(26,316	)		(26,336	)
30	Ending Property Inventory		41,140			45,052			53,839			62,190			74,910
	REO Balance, Net (dollars in millions)
	Single-family property, by region(1):
31	Northeast	$	495		$	598		$	688		$	794		$	956
32	Southeast		668			771			1,002			1,234			1,538
33	North Central		980			1,041			1,217			1,406			1,628
34	Southwest		392			449			520			609			778
35	West		1,654			1,802			1,984			2,185			2,520
36	Total single-family property		4,189			4,661			5,411			6,228			7,420
37	Total multifamily property		45			31			57			70			91
38	Total REO Balance, Net	$	4,234		$	4,692		$	5,468		$	6,298		$	7,511

(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.

11

FREDDIE MAC
TABLE 7A — SEGMENT EARNINGS — CONSOLIDATED⁽¹⁾⁽²⁾ (unaudited) (dollars in millions)

																							Nine Months Ended
																							September 30,
		1Q 2009			2Q 2009			3Q 2009			4Q 2009			1Q 2010			2Q 2010			3Q 2010			2009			2010
	Segment Earnings, net of taxes:
1	Investments	$	518		$	3,108		$	958		$	1,892		$	(1,313	)	$	(411	)	$	284		$	4,584		$	(1,440	)
2	Single-family Guarantee		(10,291	)		(4,494	)		(6,494	)		(5,864	)		(5,596	)		(4,505	)		(3,138	)		(21,279	)		(13,239	)
3	Multifamily		8			(12	)		(83	)		(424	)		221			150			381			(87	)		752
4	All Other		(567	)		106			(627	)		(3,152	)		—			53			(38	)		(1,088	)		15
5	Total Segment Earnings (loss), net of taxes		(10,332	)		(1,292	)		(6,246	)		(7,548	)		(6,688	)		(4,713	)		(2,511	)		(17,870	)		(13,912	)
	Reconciliation to GAAP net income (loss):
6	Credit guarantee-related adjustments(3)		551			2,452			1,289			1,656			—			—			—			4,292			—
7	Tax-related adjustments		(194	)		(858	)		(451	)		(580	)		—			—			—			(1,503	)		—
8	Total reconciling items, net of taxes		357			1,594			838			1,076			—			—			—			2,789			—
9	Total net income (loss) attributable to Freddie Mac	$	(9,975	)	$	302		$	(5,408	)	$	(6,472	)	$	(6,688	)	$	(4,713	)	$	(2,511	)	$	(15,081	)	$	(13,912	)
	Net interest yield — Segment Earnings (annualized):
10	Investments segment		103 bps			129 bps			86 bps			114 bps			74 bps			94 bps			108 bps			107 bps			91 bps
11	Multifamily segment		56 bps			56 bps			63 bps			66 bps			65 bps			77 bps			80 bps			58 bps			74 bps
	Management and guarantee income — Segment Earnings (annualized):
12	Single-family Guarantee segment		19.1 bps			19.3 bps			18.1 bps			18.1 bps			18.1 bps			18.5 bps			19.9 bps			18.8 bps			18.9 bps
13	Multifamily segment		52.7 bps			53.0 bps			53.7 bps			53.8 bps			52.8 bps			49.6 bps			49.8 bps			53.2 bps			50.6 bps
	Credit losses — Segment Earnings (annualized):
14	Single-family Guarantee segment		28.9 bps			41.7 bps			46.2 bps			53.6 bps			62.3 bps			82.8 bps			91.4 bps			39.0 bps			78.8 bps
15	Multifamily segment		0.9 bps			4.3 bps			7.4 bps			4.6 bps			8.2 bps			10.4 bps			9.0 bps			4.3 bps			9.2 bps

(1)	See “NOTE 16: SEGMENT REPORTING” in our Form10-Q dated November 3, 2010 for more information regarding Segment Earnings.
(2)	Beginning January 1, 2010, under our revised method, the sum of Segment Earnings for each segment and All Other category equals GAAP net income (loss) attributable to Freddie Mac.
(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 reconciling items exist in 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.

12

FREDDIE MAC
TABLE 7B — SEGMENT EARNINGS — INVESTMENTS SEGMENT⁽¹⁾⁽²⁾ (unaudited) (dollars in millions)

																							Nine Months Ended
																							September 30,
		1Q 2009			2Q 2009			3Q 2009			4Q 2009			1Q 2010			2Q 2010			3Q 2010			2009			2010
	Segment Earnings, net of taxes:
1	Net interest income	$	1,999		$	2,529		$	1,574		$	1,988		$	1,311		$	1,509		$	1,667		$	6,102		$	4,487
	Non-interest income (loss):
2	Net impairments of available-for-sale securities		(6,414	)		(1,958	)		(1,004	)		(494	)		(376	)		(327	)		(934	)		(9,376	)		(1,637	)
3	Derivative gains (losses)		1,164			3,522			(1,374	)		1,383			(2,702	)		(2,193	)		192			3,312			(4,703	)
4	Other non-interest income (loss)		2,452			(260	)		2,168			322			(22	)		294			(768	)		4,360			(496	)
5	Total non-interest income (loss)		(2,798	)		1,304			(210	)		1,211			(3,100	)		(2,226	)		(1,510	)		(1,704	)		(6,836	)
	Non-interest expense:
6	Administrative expenses		(121	)		(120	)		(130	)		(144	)		(122	)		(111	)		(110	)		(371	)		(343	)
7	Other non-interest expense		(7	)		(8	)		(11	)		(7	)		(7	)		(6	)		(1	)		(26	)		(14	)
8	Total non-interest expense		(128	)		(128	)		(141	)		(151	)		(129	)		(117	)		(111	)		(397	)		(357	)
9	Segment adjustments		—			—			—			—			510			294			272			—			1,076
10	Segment Earnings (loss) before income tax (expense) benefit		(927	)		3,705			1,223			3,048			(1,408	)		(540	)		318			4,001			(1,630	)
11	Income tax (expense) benefit		1,445			(597	)		(265	)		(1,155	)		97			129			(34	)		583			192
12	Less: Net (income) loss — noncontrolling interest		—			—			—			(1	)		(2	)		—			—			—			(2	)
13	Segment Earnings (loss), net of taxes	$	518		$	3,108		$	958		$	1,892		$	(1,313	)	$	(411	)	$	284		$	4,584		$	(1,440	)
14	Net interest yield — Segment Earnings (annualized)		103 bps			129 bps			86 bps			114 bps			74 bps			94 bps			108 bps			107 bps			91 bps

(1)	See “NOTE 16: SEGMENT REPORTING” in our Form10-Q dated November 3, 2010 for more information regarding Segment Earnings.
(2)	Under our revised method, Segment Earnings for the Investments segment equals GAAP net income (loss) attributable to Freddie Mac for the Investments segment.

13

FREDDIE MAC
TABLE 7C — SEGMENT EARNINGS — SINGLE-FAMILY GUARANTEE SEGMENT⁽¹⁾⁽²⁾ (unaudited) (dollars in millions)

																							Nine Months Ended
																							September 30,
		1Q 2009			2Q 2009			3Q 2009			4Q 2009			1Q 2010			2Q 2010			3Q 2010			2009			2010
	Segment Earnings, net of taxes:
1	Net interest income	$	54		$	74		$	86		$	93		$	59		$	51		$	(4	)	$	214		$	106
2	Provision for credit losses(3)		(8,963	)		(5,626	)		(7,922	)		(6,591	)		(6,041	)		(5,294	)		(3,980	)		(22,511	)		(15,315	)
	Non-interest income:
3	Management and guarantee income		873			888			840			847			848			865			922			2,601			2,635
4	Other non-interest income		134			161			198			228			210			268			307			493			785
5	Total non-interest income		1,007			1,049			1,038			1,075			1,058			1,133			1,229			3,094			3,420
	Non-interest expense:
6	Administrative expenses		(201	)		(211	)		(246	)		(257	)		(219	)		(225	)		(212	)		(658	)		(656	)
7	REO operations income (expense)		(306	)		(1	)		98			(78	)		(156	)		41			(337	)		(209	)		(452	)
8	Other non-interest expense		(2,033	)		(1,228	)		(566	)		(1,061	)		(89	)		(107	)		(97	)		(3,827	)		(293	)
9	Total non-interest expense		(2,540	)		(1,440	)		(714	)		(1,396	)		(464	)		(291	)		(646	)		(4,694	)		(1,401	)
10	Segment adjustments		—			—			—			—			(213	)		(208	)		(245	)		—			(666	)
11	Segment Earnings (loss) before income tax (expense) benefit		(10,442	)		(5,943	)		(7,512	)		(6,819	)		(5,601	)		(4,609	)		(3,646	)		(23,897	)		(13,856	)
12	Income tax (expense) benefit		151			1,449			1,018			955			5			104			508			2,618			617
13	Segment Earnings (loss), net of taxes	$	(10,291	)	$	(4,494	)	$	(6,494	)	$	(5,864	)	$	(5,596	)	$	(4,505	)	$	(3,138	)	$	(21,279	)	$	(13,239	)
	Reconciliation to GAAP net income (loss):
14	Credit guarantee-related adjustments(4)	$	546		$	2,455		$	1,280		$	1,660		$	—		$	—		$	—		$	4,281		$	—
15	Tax-related adjustments		(192	)		(859	)		(448	)		(581	)		—			—			—			(1,499	)		—
16	Total reconciling items, net of taxes		354			1,596			832			1,079			—			—			—			2,782			—
17	Net income (loss) attributable to Freddie Mac	$	(9,937	)	$	(2,898	)	$	(5,662	)	$	(4,785	)	$	(5,596	)	$	(4,505	)	$	(3,138	)	$	(18,497	)	$	(13,239	)
	Management and guarantee income — Segment Earnings:
18	Contractual management and guarantee fees (annualized rate)		14.4 bps			14.0 bps			13.6 bps			13.3 bps			13.3 bps			13.6 bps			13.5 bps			14.0 bps			13.5 bps
19	Amortization of credit fees (annualized rate)		4.7 bps			5.3 bps			4.5 bps			4.8 bps			4.8 bps			4.9 bps			6.4 bps			4.8 bps			5.4 bps
20	Segment Earnings management and        guarantee income (annualized rate)		19.1 bps			19.3 bps			18.1 bps			18.1 bps			18.1 bps			18.5 bps			19.9 bps			18.8 bps			18.9 bps
	Credit losses — Segment Earnings:
21	Annualized credit losses/average single-family credit guarantee portfolio		28.9 bps			41.7 bps			46.2 bps			53.6 bps			62.3 bps			82.8 bps			91.4 bps			39.0 bps			78.8 bps

(1)	See “NOTE 16: SEGMENT REPORTING” in our Form10-Q dated November 3, 2010 for more information regarding Segment Earnings.
(2)	Beginning January 1, 2010, under our revised method, Segment Earnings for the Single-family Guarantee segment equals GAAP net income (loss) attributable to Freddie Mac for the Single-family Guarantee segment.
(3)	Results for the three months ended June 30, 2010 and nine months periods ended September 30, 2010 include an out-of-period accounting adjustment which resulted in a $1.3 billion increase in our allowance for loan losses and consequently our provision for credit losses in the second quarter of 2010. For further details related to this out-of-period accounting adjustment, see “NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES” in ourForm 10-Q dated November 3, 2010.
(4)	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 reconciling items exist in 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.

14

FREDDIE MAC
TABLE 7D — SEGMENT EARNINGS — MULTIFAMILY SEGMENT⁽¹⁾⁽²⁾ (unaudited) (dollars in millions)

																							Nine Months Ended
																							September 30,
		1Q 2009			2Q 2009			3Q 2009			4Q 2009			1Q 2010			2Q 2010			3Q 2010			2009			2010
	Segment Earnings, net of taxes:
1	Net interest income	$	195		$	198		$	224		$	239		$	238		$	278		$	290		$	617		$	806
2	Provision for credit losses		—			(57	)		(89	)		(428	)		(29	)		(119	)		(19	)		(146	)		(167	)
	Non-interest income (loss):
3	Management and guarantee income		21			23			22			24			24			25			25			66			74
4	Security impairments		—			—			(54	)		(83	)		(55	)		(17	)		(5	)		(54	)		(77	)
5	Derivative gains (losses)		(31	)		—			—			4			5			(1	)		1			(31	)		5
6	Other non-interest income (loss)		(121	)		(94	)		(140	)		(107	)		108			55			185			(355	)		348
7	Total non-interest income (loss)		(131	)		(71	)		(172	)		(162	)		82			62			206			(374	)		350
	Non-interest expense:
8	Administrative expenses		(50	)		(52	)		(57	)		(62	)		(54	)		(51	)		(54	)		(159	)		(159	)
9	REO operations expense		—			(8	)		(2	)		(10	)		(3	)		(1	)		—			(10	)		(4	)
10	Other non-interest expense		(5	)		(7	)		(5	)		(1	)		(17	)		(19	)		(17	)		(17	)		(53	)
11	Total non-interest expense		(55	)		(67	)		(64	)		(73	)		(74	)		(71	)		(71	)		(186	)		(216	)
12	Segment adjustments		—			—			—			—			—			—			—			—			—
13	Segment Earnings (loss) before income tax benefit		9			3			(101	)		(424	)		217			150			406			(89	)		773
14	LIHTC partnerships tax benefit		151			148			148			147			147			146			146			447			439
15	Income tax benefit (expense)		(152	)		(164	)		(131	)		(147	)		(146	)		(146	)		(171	)		(447	)		(463	)
16	Less: Net (income) loss — noncontrolling interest		—			1			1			—			3			—			—			2			3
17	Segment Earnings, net of taxes		8			(12	)		(83	)		(424	)		221			150			381			(87	)		752
	Reconciliation to GAAP net income (loss):
18	Credit guarantee-related adjustments		5			(3	)		9			(4	)		—			—			—			11			—
19	Fair value-related adjustments(3)		—			—			(362	)		(3,399	)		—			—			—			(362	)		—
20	Tax-related adjustments		(2	)		1			123			1,191			—			—			—			122			—
21	Total reconciling items, net of taxes		3			(2	)		(230	)		(2,212	)		—			—			—			(229	)		—
22	Net income (loss) attributable to Freddie Mac	$	11		$	(14	)	$	(313	)	$	(2,636	)	$	221		$	150		$	381		$	(316	)	$	752
23	Net interest yield — Segment Earnings (annualized)		56 bps			56 bps			63 bps			66 bps			65 bps			77 bps			80 bps			58 bps			74 bps
	Management and guarantee income — Segment Earnings:
24	Average contractual rate (annualized)(4)		52.7 bps			53.0 bps			53.7 bps			53.8 bps			52.8 bps			49.6 bps			49.8 bps			53.2 bps			50.6 bps
	Credit losses — Segment Earnings:
25	Annualized credit losses/average multifamily mortgage portfolio		0.9 bps			4.3 bps			7.4 bps			4.6 bps			8.2 bps			10.4 bps			9.0 bps			4.3 bps			9.2 bps

(1)	See “NOTE 16: SEGMENT REPORTING” in ourForm 10-Q dated November 3, 2010 for more information regarding Segment Earnings.
(2)	Beginning January 1, 2010, under our revised method, Segment Earnings for the Multifamily segment equals GAAP net income (loss) attributable to Freddie Mac for the Multifamily segment.
(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.

15