Federal Home Loan Mortgage 8K Freddie Mac Reports Net Income of $11.0 Billion, Comprehensive | FMCC 28 Feb 13

Fourth Quarter 2012

Financial Results

Supplement

February 28, 2013

Exhibit 99.3

Table of contents

Business Results

Credit Supplement

3 -

Quarterly Net Income and Comprehensive Income

20 -

National Home Prices

4 -

Full-Year Net Income and Comprehensive Income (Loss)

21 -

State-by-State Home Prices: June 2006 to December 2012

5 -

Comprehensive Income (Loss)

22 -

State-by-State Home Prices: December 2011 to December 2012

6 -

Treasury Draw Requests and Dividend Payments

23 -

Mortgage Market and Freddie Mac Serious Delinquency Rates

7 -

Total Equity (Deficit) and Senior Preferred Stock Activity

24 -

8 -

Total Other Comprehensive Income (Loss)

25 -

9 -

Loan Loss Reserves

26 -

10 -

Real Estate Owned

27 -

11 -

28 -

12 -

29 -

13 -

30 -

Multifamily Portfolio Composition

14 -

31 -

Multifamily New Business Volume by State

15 -

32 -

Multifamily Mortgage Portfolio UPB Concentration by State

16 -

33 -

Multifamily Mortgage Portfolio by Attribute

17 -

34 -

Multifamily Mortgage Portfolio by Attribute, Continued

18 -

Purchase Agreement Portfolio Limits

35 -

Multifamily Market and Freddie Mac Delinquency Rates

Loan Purpose of Single-Family Credit Guarantee Portfolio

Purchases

Credit Quality of Single-Family Credit Guarantee Portfolio Purchases

Single-Family Credit Guarantee Portfolio Characteristics

Single-Family 4Q 2012 Credit Losses and REO by Region and State

Single-Family Credit Profile by Book Year and Product Feature

Market Liquidity Provided

Single-Family Cumulative Foreclosure Transfer and Short Sale

Rates by Book Year

Single-Family Refinance Activity

Single-Family Loan Workouts

Repurchase Requests

Performance of Single-Family Modified Loans

Single-Family Loan Modifications

Administrative Expenses and Efficiency

Quarterly net income and comprehensive income

Line

(Provision)

benefit

for

credit

losses

shifted

from

provision expense for 3Q12 to a benefit for 4Q12. The

improvement is driven by a decrease in the volume of

newly delinquent single-family loans and the positive

impact of increased national home prices.

Line 5:

Net impairment of available-for-sale (AFS)

securities increased in 4Q12 mainly due to the

implementation of a third-party model to project cash flow

estimates on Freddie Mac’s single-family non-agency

mortgage-related securities, partially offset by

improvements in forecasted home prices over the

expected life of the company’s AFS securities.

Line 13:

Income tax benefit increased in 4Q12 primarily

due to the release of tax reserves as a result of the

favorable resolution of tax matters with the Internal

Revenue Service (IRS).

Line 15:

Total other comprehensive income decreased in

4Q12. The decrease mostly reflects that 3Q12 results

benefited from significant spread tightening on non-agency

AFS securities whereas non-agency spreads were

relatively flat in 4Q12.

($ Millions)

4Q 2012

4Q 2011

3Q 2012

4Q 2012

3Q 2012

Net interest income

$4,683

$4,269

$4,456

$187

(Provision) benefit for credit losses

(2,578)

(610)

700

1,310

Net interest income after provision for credit

losses

2,105

3,659

5,156

1,497

Non-interest income (loss)

Derivative gains (losses)

(766)

(488)

(22)

466

Net impairment of available-for-sale securities

recognized in earnings

(595)

(267)

(1,239)

(972)

Other non-interest income

390

195

(190)

Non-interest income (loss)

(971)

(560)

(1,256)

(696)

Non-interest expense

Total administrative expenses

(380)

(401)

(422)

(21)

Real estate owned operations income (expense)

(80)

(16)

Other expenses

(93)

(121)

(199)

(78)

Non-interest expense

(553)

(473)

(588)

(115)

Income before income tax benefit

581

2,626

3,312

686

Income tax benefit

302

1,145

843

Net income

619

2,928

4,457

1,529

Total other comprehensive income,

net of taxes

887

2,702

1,271

(1,431)

Comprehensive income

$1,506

$5,630

$5,728

$98

Full-year net income and comprehensive income (loss)

Line 2:

Provision for credit losses improved in 2012

driven by a decrease in the volume of newly delinquent

single-family loans and the positive impact of increased

national home prices.

Line 4:

Derivative losses decreased in 2012 primarily due

to improvement in the fair value of the company’s net pay-

fixed swap portfolio as interest rates declined less in 2012

as compared to 2011.

Line 13:

Income tax benefit increased in 2012 primarily

due to the release of tax reserves as a result of the

favorable resolution of tax matters with the Internal

Revenue Service (IRS).

Line 15:

Total other comprehensive income increased in

2012 primarily driven by the favorable impact of spread

changes on certain of the company’s non-agency AFS

securities in 2012, partially offset by lower benefit from

interest rates as rates declined less in 2012 as compared

to 2011.

($ Millions)

2012

2011

2012

2011

Net interest income

$18,397

$17,611

($786)

Provision for credit losses

(10,702)

(1,890)

8,812

Net interest income after provision for credit

losses

7,695

15,721

8,026

Non-interest income (loss)

Derivative gains (losses)

(9,752)

(2,448)

7,304

Net impairment of available-for-sale securities

recognized in earnings

(2,301)

(2,168)

133

Other non-interest income

1,175

533

(642)

Non-interest income (loss)

(10,878)

(4,083)

6,795

Non-interest expense

Total administrative expenses

(1,506)

(1,561)

(55)

Real estate owned operations expense

(585)

(59)

526

Other expenses

(392)

(573)

(181)

Non-interest expense

(2,483)

(2,193)

290

Income (loss) before income tax benefit

(5,666)

9,445

15,111

Income tax benefit

400

1,537

1,137

Net income (loss)

(5,266)

10,982

16,248

Total other comprehensive income,

net of taxes

4,036

5,057

1,021

Comprehensive income (loss)

($1,230)

$16,039

$17,269

Comprehensive income (loss)

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

accounted for as cash flow hedges; and (c) defined benefit plans.

C = A + B

Net income (loss)

Comprehensive income (loss)

Total

other

comprehensive

income

(loss),

net

taxes

Dividend Payment to Treasury

Draw Request from Treasury

Treasury draw requests and dividend payments

Excludes the initial liquidation preference of Freddie Mac’s senior preferred stock of $1.0 billion.

Quarterly

amounts

represent

the

draw

requested

based

Freddie

Mac’s

net

worth

deficit

for

the

quarters

presented.

Annual

amounts

represent

the

total

draws

requested

based

on Freddie Mac’s quarterly net deficits for the periods presented. Draw requests are funded in the subsequent quarter (e.g., $19 million draw request for 1Q 2012 was funded in 2Q

2012).

Represents quarterly cash dividends paid by Freddie Mac to Treasury during the periods presented. Through December 31, 2012, Treasury was entitled to receive cumulative

quarterly

cash

dividends

the

annual

rate

10%

per

year

the

liquidation

preference

the

senior

preferred

stock.

However,

the

fixed

dividend

rate

was

replaced

with

net

worth sweep dividend payment beginning in the first quarter of 2013. See the company’s Annual Report on Form 10-K for the year ended December 31, 2012 for more information.

$ Billions

($ Billions)

Cumulative

Total

Treasury Draw Requests

$71.3

Dividend Payments

$23.8

Total equity (deficit) and Senior Preferred Stock activity

Senior Preferred Stock Funding Available to Freddie Mac as of January 1, 2013:

The amount of available funding remaining under the Purchase Agreement after 2012 is $140.5 billion. This amount

will

reduced

any

future

draws.

This

reflects

the

remaining

funding

available

December

31,

2009

$149.3

billion less the company’s net worth at December 31, 2012 of $8.8 billion. The provisions of the Purchase Agreement

whereby Treasury’s funding commitment would increase as necessary to accommodate any cumulative reduction

in our net worth during 2010, 2011, and 2012 no longer apply.

Includes the initial liquidation preference of Freddie Mac’s senior preferred stock of $1.0 billion.

($ Millions)

4Q 2011

1Q 2012

2Q 2012

3Q 2012

4Q 2012

Beginning balance -

Total equity (deficit) / GAAP net worth

($5,991)

($146)

($18)

$1,086

$4,907

Capital draw funded by Treasury

5,992

146

Net income

619

577

3,020

2,928

4,457

Total other comprehensive income (loss), net of taxes

887

1,212

(128)

2,702

1,271

Comprehensive income

1,506

1,789

2,892

5,630

5,728

Dividends paid to Treasury

(1,655)

(1,807)

(1,809)

(1,808)

Other

Ending balance -

Total equity (deficit) / GAAP net worth

($146)

($18)

$1,086

$4,907

$8,827

Requested capital draw

$146

$19

Aggregate liquidation preference of the senior preferred stock

(including the current quarter's requested capital draw)

$72,317

$72,336

Total

other

comprehensive

income

(loss)

Total other comprehensive income (loss) represents the change in Total AOCI, net of taxes, on the company’s consolidated balance sheets.

($ Millions)

12/31/2012

12/31/2011

9/30/2012

12/31/2012

9/30/2012

12/31/2011

Accumulated other comprehensive income (loss)

(AOCI), net of taxes, related to:

Total agency available-for-sale securities

$5,011

$4,212

$3,688

($524)

($1,323)

Total non-agency available-for-sale securities

(11,224)

(6,917)

(5,132)

1,785

6,092

Available-for-sale securities

(6,213)

(2,705)

(1,444)

1,261

4,769

Cash flow hedge relationships

(1,730)

(1,410)

(1,316)

414

Defined benefit plans

(52)

(94)

(178)

(84)

(126)

Total AOCI, net of taxes

($7,995)

($4,209)

($2,938)

$1,271

$5,057

Loan loss reserves

Includes amounts related to certain loans purchased under financial guarantees and reflected within other expenses on the company’s consolidated statements of comprehensive

income.

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

Total mortgage portfolio, excluding non-Freddie Mac securities.

$2.9

$3.0

$3.1

$3.2

$3.3

$2.9

$3.0

$2.5

$3.1

$2.0

$2.5

$3.6

$2.6

$1.8

$0.2

$0.6

($0.7)

$39.9

$39.3

$39.1

$39.7

$39.5

$38.3

$35.8

$33.8

$30.9

$5.0

$15.0

$25.0

$35.0

$45.0

($2.0)

($1.0)

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

4Q 2010

1Q 2011

2Q 2011

3Q 2011

4Q 2011

1Q 2012

2Q 2012

3Q 2012

4Q 2012

Period End Balances

$ Billions

Net Charge-offs

Provision (Benefit)

Loan Loss Reserves

2010

2011

2012

2.03%

2.02%

2.01%

2.06%

2.08%

2.03%

1.94%

1.86%

1.71%

Reserve as % of Total Mortgage Portfolio

Real

estate

owned

Property Inventory

2012 Activity

Geographic

Distribution

Based on Property Inventory

Historical Trend

Ending Property Inventory

Includes single-family and multifamily REO. Multifamily ending property inventory was 20 properties as of December 31, 2011 and 6 properties as of December 31, 2012.

Region designation: West (AK, AZ, CA, GU, HI, ID, MT, NV, OR, UT, WA); Northeast (CT, DE, DC, MA, ME, MD, NH, NJ, NY, PA, RI, VT, VA, WV); Southeast (AL, FL, GA, KY, MS,

NC, PR,

SC,

TN,

VI);

North

Central

(IL,

IN,

IA,

MI,

MN,

ND,

OH,

SD,

WI);

and

Southwest

(AR,

CO,

KS,

LA,

MO,

NE,

NM,

OK,

TX,

WY).

((Number of Properties)

In 2012, REO dispositions continued to exceed the volume of REO acquisitions. We

believe our single-family REO acquisition volume in 2012 and 2011 was less than it

otherwise would have been due in part to the length of the single-family foreclosure

timeline, particularly in states where judicial foreclosures (those conducted under the

supervision of the court) are required.

During 2012, our REO property inventory declined most in the West region primarily

due to increased disposition activity and strengthening home prices in California.

The North Central region comprised 42 percent of our REO property inventory at

December 31, 2012. We continue to have a significant number of properties in our

REO inventory that we are unable to list because they are occupied or in states with a

redemption period, particularly in Michigan, Minnesota and Illinois. States with

redemption periods require a period of time after foreclosure during which the

borrower may reclaim the property.

60,555

49,077

82,818

(94,296)

12/31/11

Inventory

Acquisitions

Dispositions

12/31/12

Inventory

13k

21k

13k

11k

21k

5,000

10,000

15,000

20,000

25,000

Northeast

Southeast

North Central

Southwest

West

Number of

Properties

12/31/2011

12/31/2012

72k

65k

61k

60k

61k

59k

53k

51k

49k

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2010

2011

2012

Number of

Properties

Market liquidity provided

Number of Families Freddie Mac

Helped

Own

Rent

Home

In Thousands

Purchase

and

Issuance

Volume

(Single-Family and Multifamily)

$ Billions

For the periods presented, a borrower may be counted more than once if the company purchased more than one loan (purchase or refinance mortgage) relating to the same

borrower.

Includes, on a settlement date basis, purchases of mortgages, issuance of other guarantee commitments, and purchases of non-Freddie Mac mortgage-related securities.

Number

Families

Freddie

Mac

Helped

Own

Rent

Home

(In Thousands)

Refinance borrowers (includes HARP)

Purchase borrowers

Multifamily rental units

Freddie

Mac

Purchase

and

Issuance

Volume

Cumulative Totals

Since 2009

8,871

$1.8 Trillion

6,120

1,517

1,234

Relief

Refinance

–

LTV

100%

125%

(HARP)

Single-family

refinance

activity

Number of Borrowers

2, 3

In Thousands

$ Volume

In Billions

Non-Relief

Refinance

Relief

Refinance

–

LTV

80%

Relief

Refinance

–

LTV

80%

100%

(HARP)

$380

$306

$250

1,764

1,480

1,193

426

$91

356

$72

$351

$81

1,683

392

(In Thousands)

Number of Borrowers Freddie Mac Helped to Refinance²

Relief Refinance (Includes HARP)

Non-Relief Refinance

Freddie Mac Single-Family Refinance Volume

Cumulative Totals Since

2009

6,120

1,842

$1.3 Trillion

4,278

Relief

Refinance

–

LTV

125%

(HARP)

510

$106

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

and

Other

Guarantee

Transactions.

Prior

period

amounts

have

been

revised

conform

current

period

presentation.

Some

loans

have

multiple

borrowers,

but

the

company

has

counted

them

one

borrower

for

this

purpose.

For

the

periods

presented,

borrower

may

counted

than

once if the company purchased more than one refinance loan relating to the same borrower.

The sum of the quarters may not equal the 2012 totals due to rounding.

The relief refinance mortgage initiative is Freddie Mac’s implementation of the Home Affordable Refinance Program (HARP). Under the program, the company allows eligible

borrowers who have mortgages with high current LTV ratios to refinance their mortgages without obtaining new mortgage insurance in excess of what was already in place.

HARP

targeted

borrowers

with

current

LTV

ratios

above

80%;

however,

Freddie

Mac’s

program

also

allows

borrowers

with

LTV

ratios

below

80%

participate.

Repayment plans

Loan modifications

Forbearance agreements

Short sales and deed-in-lieu of foreclosure transactions

Single-family loan workouts

Home Retention Actions

Foreclosure Alternatives

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

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

4Q 2011

1Q 2012

2Q 2012

3Q 2012

4Q 2012

Number of Loans

(000)

100

150

200

250

300

2009

2010

2011

2012

Number of Loans

(000)

133

275

208

169

Number of Families Avoiding Foreclosure

(In Thousands)

Families Retaining Homes

Cumulative Totals Since

2009

785

8 out of every 10

No change in terms

Term extension

Reduction of contractual interest rate, and in certain cases,

term extension

Rate reduction, term extension and principal forbearance

Single-family loan modifications

Includes

completed

loan

modifications

under

HAMP

and

under

the

company’s

other

modification

programs.

Excludes

those

loan

modification

activities

for

which

the

borrower

has

started the required process, but the modification has not been made permanent or effective, such as loans in a modification trial period.

Principal forbearance is a change to a loan’s terms to designate a portion of the principal as non-interest bearing and non-amortizing.

Single-family Loan Modifications

(HAMP and non-HAMP)

170

109

Quarterly Percentages of Modified Single-Family Loans

(HAMP and non-HAMP)

Performance of single-family modified loans

Of the loans modified in 4Q 2010, 63% were current and performing 24 to 26 months post modification.

Of the loans modified in 3Q 2012, 84% were current and performing 3 to 5 months post modification.

Represents the percentage of loans that are current and performing (no payment is 30 days or more past due) or have been paid in full. Excludes loans in modification trial periods.

Loan

modifications

are

recognized

completed

the

quarterly

period

which

the

servicer

has

reported

the

modification

effective

and

the

agreement

has

been

accepted

the

company. For loans that have been remodified (e.g., where a borrower has received a new modification after defaulting on the prior modification) the rates reflect the status of each

modification separately. For example, in the case of a remodified loan where the borrower is performing, the previous modification would be presented as being in default in the

applicable period.

Time Since Modification

4Q 2010

1Q 2011

2Q 2011

3Q 2011

4Q 2011

1Q 2012

2Q 2012

3Q 2012

3 to 5 months

82%

83%

81%

86%

85%

87%

84%

6 to 8 months

76%

77%

79%

80%

83%

N/A

9 to 11 months

72%

73%

76%

75%

77%

N/A

12 to 14 months

68%

73%

71%

73%

N/A

15 to 17 months

69%

70%

69%

N/A

18 to 20 months

67%

68%

N/A

21 to 23 months

64%

66%

N/A

24 to 26 months

63%

N/A

% Current and Performing

Quarter of Loan Modification Completion

The UPB of outstanding repurchase requests issued to our single-family seller/servicers

based on breaches of representations and warranties increased from $2.7 billion as of

December 31, 2011 to $3.0 billion as of December 31, 2012.

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

because many of these requests are likely to be satisfied by reimbursement of the company’s realized credit losses by seller/servicers, or rescinded in the course of the contractual appeals

process. Based on historical loss experience and the fact that many of these loans are covered by credit enhancements (e.g., mortgage insurance), Freddie Mac expects the actual credit

losses experienced by the company should it fail to collect on these repurchase requests to also be less than the UPB of the loans.

Approximately $1.2 billion of the total amount of repurchase requests outstanding at December 31, 2012 were issued due to mortgage insurance rescission or mortgage insurance claim

denial.

Repurchase requests outstanding more than four months include repurchase requests for which appeals were pending.

Requests collected are based on the UPB of the loans associated with the repurchase request, which in many cases is more than the amount of payments received for reimbursement of

losses for requests associated with foreclosed mortgage loans, negotiated settlements and other alternative remedies.

During

2012,

repurchase

requests

$5.4

billion

UPB

loans

were

cancelled,

primarily

result

the

servicer

providing

missing

documentation

successful

appeal

the

request. In addition, requests cancelled includes $30 million of other items that affect the UPB of the loan while the repurchase request is outstanding, such as a change in UPB due to

payments made on the loan, as well as requests deemed uncollectible due to the insolvency or other failure of the counterparty.

Repurchase requests

Trend in Repurchase Requests Outstanding

2012 Repurchase Request Activity

$ Billions

Outstanding repurchase requests

Requests outstanding more than 4 months

Administrative

expenses

and

efficiency

Administrative expenses, expressed as a percentage of the average total mortgage portfolio. Basis points for the quarters are calculated on an annualized basis.

Administrative expenses increased during 2012 as a result of initiatives we are pursuing

under the Conservatorship Scorecard and other-FHFA mandated strategic initiatives.

$653

$618

$581

$568

$558

$729

$650

$553

12/31/2011

3/31/2012

6/30/2012

9/30/2012

12/31/2012

12/31/2013

Mortgage-related investments portfolio ending balance

Mortgage-related investments portfolio limit

Purchase Agreement portfolio limits

Indebtedness

1, 3

($ Billions)

Mortgage Assets

1, 2

($ Billions)

Indebtedness limit

Total debt outstanding

$674

$629

$590

$570

$552

$972

$874.8

$780

12/31/2011

3/31/2012

6/30/2012

9/30/2012

12/31/2012

1/1/2013

The company’s Purchase Agreement with Treasury limits the amount of mortgage assets the company can own and indebtedness it can incur. Under the Purchase Agreement, mortgage

assets and indebtedness are calculated without giving effect to the January 1, 2010 change in the accounting guidance related to the transfer of financial assets and consolidation of

variable interest entities (VIEs). See the company’s Annual Report on Form 10-K for the year ended December 31, 2012 for more information.

Represents the unpaid principal balance (UPB) of the company’s mortgage-related investments portfolio. The company discloses its mortgage assets on this basis monthly in its Monthly

Volume Summary reports, which are available on its Web site and in Current Reports on Form 8-K filed with the Securities and Exchange Commission (SEC).

Represents the par value of the company’s unsecured short-term and long-term debt securities issued to third parties to fund its business activities. The company discloses its

indebtedness on this basis monthly in its Monthly Volume Summary reports, which are available on its Web site and in Current Reports on Form 8-K filed with the SEC.

Limit under the Purchase Agreement, as amended on August 17, 2012.

Credit

Supplement

LOGO

National home prices have experienced a cumulative decline of 22% since June 20061

Percent (%)

6 4 2 0 (2) (4) (6) (8)

5.2

4.6 4.8

2.6 2.5 .2 2.2 2.2

2.0

1.4 1.5

1.1

0.7 0.8 1.0

0.7 0.6 0.6

0.4

(0.0) (0.1)

(0.3)

(0.9) (1.2)

(1.5) (1.8) (1.7)

(2.1) (2.3)

(2.5)

(2.9) (3.1)(3.0)

(3.1)

(4.3)

(6.2)

1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 4Q

2004 2005 2006 2007 2008 2009 2010 2011 2012 2012

1 National home prices use the Freddie Mac House Price Index for the U.S., which is a value-weighted average of the state indexes where the value weights are based on Freddie Mac’s single-family credit guarantee portfolio. Other indices of home prices may have different results, as they are determined using different pools of mortgage loans and calculated under different conventions than Freddie Mac’s. The Freddie Mac House Price Index for the U.S. is a non-seasonally adjusted monthly series; quarterly growth rates are calculated as a 3-month change based on the final month of each quarter. Seasonal factors typically result in stronger house-price appreciation during the second and third quarters. Historical quarterly growth rates change as new data becomes available. Values for the most recent periods typically see the largest changes. Cumulative decline of 22% calculated as the percent change from June 2006 to December 2012.

Source: Freddie Mac.

Home Price Performance By State

June

2006

December

2012

-11%

-12 to -1%

-23%

-22 to -13%

-7%

-37%

-38%

-3%

CT -22%

DC 10%

-18%

-41%

-29%

-17%

-2%

-23%

-29%

-11%

-4%

-1%

-18%

-27%

-15%

-29%

-22%

-15%

-12%

-4%

-13%

29%

-2%

-26%

-14%

-53%

-14%

-19%

-24%

-11%

RI -30%

-14%

-6%

-10%

-18%

-7%

-22%

-20%

-4%

-23%

United States -22%

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

guarantee portfolio. Other indices of home prices may have different results, as they are determined using different pools of mortgage loans and calculated under different

conventions.

The

Freddie

Mac

House

Price

Index

for

the

U.S.

non-seasonally

adjusted

monthly

series.

Source: Freddie Mac

Home Price Performance By State

December

2011

December

2012

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

guarantee portfolio. Other indices of home prices may have different results, as they are determined using different pools of mortgage loans and calculated under different

conventions. The Freddie Mac House Price Index for the U.S. is a

non-seasonally adjusted monthly series.

Source: Freddie Mac

3 to 8%

-1%

0 to 2%

26%

13%

12%

CT 0%

DC 8%

14%

-1%

16%

11%

-1%

11%

-2%

21%

RI 1%

11%

-1%

United States 6%

Source: National Delinquency Survey from the Mortgage Bankers Association. Categories represent first lien single-family loans.

See

“MD&A

–

RISK

MANAGEMENT

–

Credit

Risk

–

Mortgage

Credit

Risk

–

Single-Family

Mortgage

Credit

Risk

–

Credit

Performance

–

Delinquencies”

Freddie

Mac’s

Form

10-K

for the year ended December 31, 2012, for information about the company’s reported delinquency rates.

Single-family Serious Delinquency Rates

Mortgage market and Freddie Mac serious delinquency

rates

Dec-08

Mar-09

Jun-09

Sep-09

Dec-09

Mar-10

Jun-10

Sep-10

Dec-10

Mar-11

Jun-11

Sep-11

Dec-11

Mar-12

Jun-12

Sep-12

Dec-12

Total Mortgage Market

Prime

Subprime

Freddie Mac

21.70%

6.78%

4.34%

3.25%

Loan purpose of single-family credit guarantee

portfolio purchases

The relief refinance mortgage initiative is Freddie Mac’s implementation of the Home Affordable Refinance Program (HARP). Under the program, the company allows eligible

borrowers who have mortgages with high current LTV ratios to refinance their mortgages without obtaining new mortgage insurance in excess of what was already in place. HARP is

targeted at borrowers with current LTV ratios above 80%; however, Freddie Mac’s relief refinance initiative also allows borrowers with LTV ratios at or below 80% to participate.

Relief refinance mortgages with LTV ratios above 80% represented

approximately 20% of our total single-family credit guarantee portfolio purchases in 2012, based on unpaid

principal balance.

1, 2

100

2005

2006

2007

2008

2009

2010

2011

2012

Percent

(%)

Purchase

Non-Relief Refinance

Relief Refinance (includes HARP)

82%

Credit quality of single-family credit guarantee portfolio

purchases

2009

2010

2011

2012

Weighted Average Original LTV Ratio

Relief refinance (includes HARP)

80%

77%

97%

All other

66%

67%

68%

Total purchases

67%

70%

76%

Weighted Average Credit Score

Relief refinance (includes HARP)

738

747

744

740

All other

757

758

759

762

Total purchases

756

755

756

2009

2010

2011

2012

Purchase of Relief Refinance Mortgages > 80% LTV (HARP loans)

$ Billions

$19.6

$47.9

$39.7

$86.9

% of single-family credit guarantee portfolio purchases

12%

20%

Original LTV ratios are calculated as the amount of the mortgage Freddie Mac guarantees including the credit-enhanced portion, divided by the lesser of the appraised value of

the property at the time of mortgage origination or the mortgage borrower’s purchase price. Second liens not owned or guaranteed by Freddie Mac are excluded from the LTV

ratio

calculation

because

generally

not

receive

data

about

them.

The

existence

second

lien

mortgage

reduces

the

borrower’s

equity

the

home

and, therefore, can

increase the risk of default.

Credit score data are based on FICO scores at the time of origination and may not be indicative of the borrowers’

creditworthiness at December 31, 2012. FICO scores can

range between approximately 300 to 850 points.

HARP

the

portion

the

company’s

relief

refinance

initiative

targeted

borrowers

with

current

LTV

ratios

above

80%.

HARP

was

expanded

October

2011

allow

eligible

borrowers

who

have

mortgages

with

current

LTV

ratios

above

125%

refinance

under

the

program.

Single-family 4Q 2012 credit losses and REO

by region and state

Based on the unpaid principal balance (UPB) of the single-family credit guarantee portfolio at December 31, 2012.

UPB amounts exclude Other Guarantee Transactions with ending balances of $553 million since these securities are backed by non-Freddie Mac issued securities for which loan

characteristic data was not available.

Based on the number of loans that are three monthly payments or more past due or in the process of foreclosure.

Based

the

UPB

loans

the

time

REO

acquisition.

Consist of the aggregate amount of charge-offs, net of recoveries, and REO operations expense for 4Q 2012.

Region designation: West (AK, AZ, CA, GU, HI, ID, MT, NV, OR, UT, WA); Northeast (CT, DE, DC, MA, ME, MD, NH, NJ, NY, PA, RI, VT, VA, WV); Southeast (AL, FL, GA, KY, MS,

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

($ Billions)

% of Total

UPB

($ Millions)

% of Total

Serious

Delinquency

Rate

(%)

4Q 2012

Acquisitions

($ Millions)

REO

Inventory

($ Millions)

% of Total

Inventory

($ Millions)

% of Total

Region

West

$456

28%

$14,961

24%

2.79%

$667

$1,402

19%

$958

40%

Northeast

420

18,926

3.77%

283

944

219

North Central

293

8,402

2.52%

766

2,839

521

Southeast

277

16,703

4.97%

786

1,693

610

Southwest

192

3,270

1.69%

293

755

Total

$1,638

100%

$62,262

100%

3.25%

$2,795

$7,633

100%

$2,396

100%

State

California

$264

16%

$7,325

12%

2.34%

$340

$725

10%

$572

24%

Florida

11,968

9.87%

385

785

433

Illinois

4,095

4.08%

254

1,005

237

Ohio

1,244

2.73%

118

335

Michigan

916

1.88%

150

683

Arizona

1,170

2.45%

129

216

154

Nevada

1,782

8.14%

126

All other

1,046

33,762

2.77%

1,390

3,827

701

Total

$1,638

100%

$62,262

100%

3.25%

$2,795

$7,633

100%

$2,396

100%

Total Portfolio UPB

Credit Losses

REO Acquisitions & Balance

Seriously Delinquent Loans

Single-family

credit

guarantee

portfolio

characteristics

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

included

total

UPB

and

percentage

seriously

delinquent

but

not

included

the

calculation

other

statistics

since

these

securities

are

backed

non-Freddie

Mac

issued

securities

for which

loan characteristic data was not available.

For

description

Alt-A,

see

the

“Glossary”

the

company’s

Annual

Report

Form

10-K

for

the

year

ended

December

31,

2012.

Beginning September 1, 2010, the company fully discontinued purchases of interest-only loans.

Represents

the

FICO

score

the

borrower

loan

origination.

The

company

estimates

that

less

than

loans

within

the

portfolio

are

missing

origination

FICO

scores

and

such

are

excluded.

Indicates year of loan origination. Calculated based on the loans remaining in the portfolio as of December 31, 2012, rather than all loans originally guaranteed by the company and originated

in the respective year. Each Book Year category represents the percentage of loans referenced in line 1 of the same vertical column.

Based on the number of loans that are three monthly payments or more past due or in the process of foreclosure.

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

Option

FICO

Original

LTV

FICO < 620 &

Original

Attribute

Alt-A²

Interest-only

ARM

< 620

620 - 659

> 90%

LTV > 90%

UPB $ Billions

$1,638

$74

$50

$51

$104

$219

$12

Percent of Total Portfolio

100%

13%

Average UPB per loan

$150,749

$154,561

$233,540

$205,933

$125,942

$132,676

$164,443

$131,181

Fixed Rate (% of total portfolio)

93%

64%

23%

94%

93%

98%

97%

Owner Occupied

90%

82%

76%

95%

94%

93%

97%

Original Loan-to-Value (OLTV)

74%

73%

74%

71%

80%

79%

105%

103%

OLTV > 90%

13%

24%

21%

100%

Current Loan-to-Value (CLTV)

75%

100%

110%

105%

89%

87%

104%

107%

CLTV > 90%

24%

59%

73%

64%

46%

42%

78%

76%

CLTV > 100%

15%

47%

60%

52%

33%

30%

47%

56%

CLTV > 110%

10%

37%

46%

40%

23%

21%

30%

38%

Average FICO Score

737

714

718

711

586

642

722

584

FICO < 620

100%

Book Year

2012

22%

36%

22%

2011

14%

2010

15%

14%

2009

12%

2008

10%

2007

30%

37%

22%

18%

22%

2006

27%

28%

11%

12%

2005

20%

19%

58%

11%

12%

2004 and prior

13%

16%

29%

25%

10%

21%

% of Loans with Credit Enhancement

13%

10%

16%

25%

22%

52%

65%

% Seriously Delinquent

3.25%

11.37%

16.27%

16.31%

12.21%

8.99%

4.83%

12.71%

Total Portfolio

as of

December 31, 2012

Single-family credit profile by book year and product

feature

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

included

total

UPB

and

percentage

seriously

delinquent

but

not

included

the

calculation

other

statistics

since

these

securities

are

backed

non-Freddie

Mac

issued

securities

for which loan characteristic data was not available.

Indicates year of loan origination. Calculated based on the loans remaining in the portfolio as of December 31, 2012, rather than all loans originally guaranteed by the company and

originated in the respective year.

Represents

the

average

the

borrowers’

FICO

scores

origination.

The

company

estimates

that

less

than

loans

within

the

portfolio

are

missing

FICO

scores

and

such

are

excluded.

Beginning September 1, 2010, the company fully discontinued purchases of interest-only loans.

States presented are those with the highest percentage of credit losses during the three months ended December 31, 2012.

Attribute

2012

2011

2010

2009

2008

2007

2006

2005

2004 and

prior

UPB $ Billions

$1,638

$364

$226

$237

$205

$79

$119

$89

$101

$218

Original Loan-to-Value (OLTV)

74%

78%

72%

70%

74%

77%

75%

73%

72%

OLTV > 90%

13%

22%

14%

12%

10%

16%

10%

Current Loan-to-Value (CLTV)

75%

76%

67%

68%

69%

88%

107%

104%

89%

56%

CLTV > 100%

15%

13%

28%

55%

50%

32%

CLTV > 110%

10%

16%

42%

38%

22%

Average FICO Score

737

755

753

751

750

719

700

705

712

715

FICO < 620

Adjustable-rate

11%

17%

19%

10%

Interest-only

16%

10%

Investor

Condo

11%

12%

11%

Geography

California

16%

21%

17%

16%

13%

16%

15%

12%

Florida

11%

12%

11%

Illinois

Michigan

Ohio

Arizona

Nevada

All other

64%

60%

67%

68%

71%

63%

59%

57%

63%

% of Loans with Credit Enhancement

13%

10%

26%

15%

13%

12%

% Seriously Delinquent

3.25%

0.05%

0.26%

0.53%

0.88%

6.80%

12.37%

11.37%

7.20%

3.20%

Total Portfolio

as of

December 31, 2012

Book Year

Based on the number of loans that are three monthly payments or more past due or in the process of foreclosure.

Single-family cumulative foreclosure transfer and

short sale rates

by book year

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

subsequent

recoveries,

divided

the

number

loans

originated

that

year

that

were

acquired

the

company’s

single-family

credit

guarantee

portfolio.

Includes

Other

Guarantee

Transactions where loan characteristic data is available.

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

5.50%

6.50%

7.00%

7.50%

8.00%

8.50%

9.00%

9.50%

10.00%

10.50%

5.00%

6.00%

Yr1

Yr2

Yr3

Yr4

Yr5

Yr6

Yr7

Yr8

Yr9

Yr10

Yr11

2007

2006

2005

2004

2002

2003

2008

2009

2010

2011

Quarter Post Origination

2012

Total Multifamily (MF) Portfolio

Multifamily portfolio composition

100

120

140

160

180

200

12/31/2007

12/31/2008

12/31/2009

12/31/2010

12/31/2011

12/31/2012

MF loan portfolio

MF investment securities portfolio

MF guarantee portfolio

UPB

$ Billions

$135

$154

$164

$169

$177

$180

Multifamily

2012

New

Business

Volume

State

(%)

Based on the unpaid principal balance (UPB) of the multifamily loan purchases and issuance of other guarantee commitments.

MF New Business Volume $28.8B

> 5%

> 3% -

< 1%

> 1% -

0.0%

0.2%

2.1%

4.0%

0.2%

0.1%

1.8%

0.4%

0.9%

0.5%

0.8%

1.5%

1.4%

0.0%

0.1%

0.4%

1.5%

0.5%

0.7%

0.0%

0.5%

0.0%

3.9%

0.7%

0.0%

0.7%

0.4%

0.3%

8.9%

3.8%

0.4%

9.1%

0.0%

0.3%

3.1%

1.5%

7.4%

1.9%

1.8%

0.1%

1.1%

1.8%

13.9%

4.4%

0.2%

0.0%

MA 2.6%

13.2%

Multifamily Mortgage Portfolio UPB Concentration by

State

16.5%

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

mortgage-related securities and related unguaranteed K Certificates.

2 Consists of the UPB of unsecuritized multifamily loans, other guarantee commitments, and guaranteed Freddie Mac mortgage-related securities. Excludes the UPB associated with

unguaranteed K Certificates.

MF Mortgage Portfolio $127.4B

As of December 31, 2012

> 5%

> 2% -

< 1%

> 1% -

0.9%

0.0%

0.3%

2.2%

16.5%

3.0%

0.9%

0.2%

6.6%

4.7%

0.2%

0.3%

0.1%

2.5%

0.6%

0.9%

0.5%

0.8%

MA 2.1%

5.4%

<0.1%

1.0%

1.3%

1.2%

0.4%

<0.1%

2.8%

0.1%

0.5%

2.5%

0.3%

1.3%

8.4%

1.9%

0.5%

0.7%

2.4%

0.2%

1.0%

0.1%

1.5%

12.5%

0.5%

5.2%

0.0%

3.3%

0.6%

0.1%

<0.1%

0.1%

Multifamily

mortgage

portfolio

attribute

Based

the

unpaid

principal

balance

(UPB)

the

multifamily

mortgage

portfolio.

Based

the

UPB

mortgages

two

monthly

payments

past

due

the

process

foreclosure.

Based on either: (a) the year of acquisition, for loans recorded on the company’s consolidated balance sheets; or (b) the year that the company issued its guarantee, for the

Presents

the

six

states

with

the

highest

UPB

December

31,

2012.

Year of Acquisition or Guarantee

2004 and prior

$12.4

0.40%

$10.4

0.26%

$9.2

0.35%

2005

7.2

0.20

6.7

0.56

6.5

0.17

2006

10.8

0.25

10.1

0.27

9.5

2007

19.8

0.74

19.3

0.96

17.8

0.86

2008

20.6

0.09

18.0

0.34

16.6

0.30

2009

13.8

12.8

12.2

2010

12.7

12.2

12.0

2011

18.8

17.4

17.0

2012

N/A

18.3

26.6

Total

$116.1

0.22%

$125.2

0.27%

$127.4

0.19%

Maturity Dates

2012

$3.0

1.35%

$1.6

1.57%

N/A

2013

5.6

3.5

$3.3

0.90%

2014

7.6

0.03

6.9

0.69

5.8

2015

11.0

0.17

10.3

0.19

9.8

0.53

2016

13.5

0.06

13.6

0.01

13.0

0.05

Beyond 2016

75.4

0.25

89.3

0.28

95.5

0.17

Total

$116.1

0.22%

$125.2

0.27%

$127.4

0.19%

Geography

California

$20.2

0.02%

$21.3

0.24%

$21.1

0.12%

Texas

14.0

0.46

15.5

0.46

15.9

0.13

New York

9.6

10.2

0.09

10.7

0.09

Florida

7.1

0.05

8.2

0.04

8.4

0.12

Maryland

5.7

6.5

6.9

Virginia

6.3

6.5

6.6

All other states

53.2

0.35

57.0

0.36

57.8

0.32

Total

$116.1

0.22%

$125.2

0.27%

$127.4

0.19%

UPB

($ Billions)

December 31, 2012

UPB

($ Billions)

Delinquency

Rate

(%)

September 30, 2012

Delinquency

Rate

(%)

December 31, 2011

Delinquency

Rate

(%)

UPB

($ Billions)

remaining loans in its multifamily mortgage portfolio.

Multifamily

mortgage

portfolio

attribute,

continued

Based on the

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

Based on the UPB of mortgages two monthly payments or more past due or in the process of foreclosure.

Current Loan Size

> $25M

$42.8

0.06%

$46.3

0.12%

$48.5

0.06%

> $5M & <= $25M

64.0

0.31

69.6

0.36

70.0

0.26

> $3M & <= $5M

5.7

0.35

5.9

0.35

5.7

0.22

> $750K & <= $3M

3.3

0.26

3.2

0.40

3.0

0.65

<= $750K

0.3

0.13

0.2

0.62

0.2

0.37

Total

$116.1

0.22%

$125.2

0.27%

$127.4

0.19%

Legal Structure

Unsecuritized Loans

$82.3

0.10%

$80.3

0.16%

$76.6

0.08%

Freddie Mac mortgage-related securities

24.2

0.64

35.4

0.49

41.4

0.41

Other guarantee commitments

9.6

0.18

9.5

0.40

9.4

0.13

Total

$116.1

0.22%

$125.2

0.27%

$127.4

0.19%

Credit Enhancement

Credit Enhanced

$31.6

0.52%

$42.7

0.45%

$47.8

0.36%

Non-Credit Enhanced

84.5

0.11

82.5

0.18

79.6

0.10

Total

$116.1

0.22%

$125.2

0.27%

$127.4

0.19%

Other

Original LTV > 80%

$6.4

2.34%

$6.2

2.75%

$5.8

2.31%

Original DSCR below 1.10

$2.8

2.58%

$2.7

3.18%

$2.3

2.97%

December 31, 2012

UPB

($ Billions)

Delinquency

Rate

(%)

September 30, 2012

Delinquency

Rate

(%)

December 31, 2011

Delinquency

Rate

(%)

UPB

($ Billions)

UPB

($ Billions)

DSCR –

Debt Service Coverage Ratio –

is an indicator of future credit performance for multifamily loans. DSCR estimates a multifamily borrower’s ability to service its mortgage

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

continue servicing its mortgage obligation.

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

3Q 2008

1Q 2009

3Q 2009

1Q 2010

3Q 2010

1Q 2011

3Q 2011

1Q 2012

3Q 2012

Freddie Mac (60+ day)

FDIC Insured Institutions (90+ day)

MF CMBS Market (60+ day)

ACLI Investment Bulletin (60+ day)

0.02%

Multifamily market and Freddie Mac delinquency rates

Percent

9.65%

1.84%

0.27%

See “MD&A – RISK MANAGEMENT – Credit Risk – Mortgage Credit Risk – Multifamily Mortgage Credit Risk ” in Freddie Mac’s Form 10-K for the year ended December 31,

2012, for information about the company’s reported multifamily delinquency rate. The multifamily delinquency rate at December 31, 2012 was 0.19%.

Source: Freddie Mac, FDIC Quarterly Banking Profile, TREPP (CMBS multifamily 60+ delinquency rate, excluding REOs), American Council of Life Insurers (ACLI).

Non-Freddie Mac data is not yet available for the fourth quarter of 2012.

Safe Harbor Statements

Freddie Mac obligations

Freddie Mac’s securities are obligations of Freddie Mac only. The securities, including any interest or return of discount on the securities,

are not guaranteed by and are not debts or obligations of the United States or any federal agency or instrumentality other than Freddie

Mac.

No offer or solicitation of securities

This

presentation

includes

information

to,

referenced

the

offering

documentation

for,

certain

Freddie

Mac

securities,

including offering circulars and related supplements and agreements. Freddie Mac securities may not be eligible for offer or sale in

certain

jurisdictions

certain

persons.

This

information

provided

for

your

general

information

only,

current

only

its

specified

date and does not constitute an offer to sell or a solicitation of an offer to buy securities. The information does not constitute a sufficient

basis

for

making

decision

with

respect

the

purchase

sale

any

security.

All

information

regarding

relating

Freddie

Mac

securities

qualified

its

entirety

the

relevant

offering

circular

and

any

supplements.

Investors

should

review

the

relevant

offering circular and any related supplements before making a decision with respect to the purchase or sale of any security. In addition,

before purchasing any security, please consult your legal and financial advisors for information about and analysis of the security, its

risks and its suitability as an investment in your particular circumstances.

Forward-looking statements

Freddie Mac's presentations may contain forward-looking statements, which may include statements pertaining to the conservatorship,

the company’s current expectations and objectives for its efforts under the MHA Program, the servicing alignment initiative and other

programs to assist the U.S. residential mortgage market, future business plans, liquidity, capital management, economic and market

conditions and trends, market share, the effect of legislative and regulatory developments, implementation of new accounting guidance,

credit

losses,

internal

control

remediation

efforts,

and

results

operations

and

financial

condition

GAAP,

Segment

Earnings

and

fair value basis. Forward-looking statements involve known and unknown risks and uncertainties, some of which are beyond the

company’s control. Management’s expectations for the company’s future necessarily involve a number of assumptions, judgments and

estimates, and various factors, including changes in market conditions, liquidity, mortgage-to-debt option-adjusted spread, credit outlook,

actions by FHFA, Treasury, the Federal Reserve, the SEC, HUD, other federal agencies, the Administration and Congress, and the

impacts of legislation or regulations and new or amended accounting guidance, could cause actual results to differ materially from these

expectations. These assumptions, judgments, estimates and factors are discussed in the company’s Annual Report on Form 10-K for

the year ended December 31, 2012, which is available on the Investor Relations page of the company’s Web site at

www.FreddieMac.com/investors

and

the

SEC’s

Web

site

www.sec.gov.

The

company

undertakes

obligation

update

forward-

looking statements it makes to reflect events or circumstances after the date of this presentation.

Federal Home Loan Mortgage (FMCC) 8-KFreddie Mac Reports Net Income of $11.0 Billion, Comprehensive