The company’srn$(0.6) billion provisions for credit losses in the third quarter turned into arn$0.7 billion benefit in the fourth quarter. rnProvisions for losses narrowed for the entire year to $(1.9) billionrnfrom $(10.7) billion in 2011.  </p

The company will not require a draw fromrnTreasury for the fourth quarter because it had a positive net worth atrnquarter’s end of $8.8 billion.  Thisrnreflects $4.9 billion net worth at the end of the third quarter and fourthrnquarter comprehensive income of $5.7 billion. rnThe latter is partially offset by the $1.8 billion the company will payrnto the Treasury as a dividend on senior preferred stock.   Freddie Mac has not requested a draw fromrnTreasury since the second quarter of 2012 and requested an aggregate $0.3rnbillion in the first and second quarter of 2012.    </p

Since therncompany was placed into conservatorship under the Federal Housing Finance Agencyrnin August 2008 it has paid $23.8 billion in cashrndividends to Treasury on therncompany’s senior preferred stock. This represents 33 percent of the company’s cumulative drawsrnreceivedrnunder the Purchase Agreement with Treasury. In addition, in September 2012, Freddie Mac beganrnremitting proceeds to Treasury from thern10 basis point guarantee fee increasernrequiredrnby the Temporary Payroll Tax Cut Continuation Act of 2011. The guarantee fees related tornthisrnincrease totaled $108 million forrn2012.</p

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In August 2012 the company signed an agreement with Treasury to replacernthe fixed 10 percentrndividend rate established byrnits original stock purchase agreement withrna net worth sweeprndividendrnand suspended the periodic commitment fees.  Under this amendment which became effective on January 1 Freddie Mac is requiredrntornpay dividends to the extent that its Net WorthrnAmount,rnas defined inrnthe Purchase Agreement, exceeds the permitted capital reserve. The amount ofrnthe permitted capital reserve isrn$3 billion in 2013rnand will be reducedrnby $600 million each yearrnthereafterrnuntil it reaches zero inrn2018. The amendment effectively ends the circular practice ofrntaking draws from Treasury tornpay dividends to Treasury.  Based on Freddie Mac’s Net Worth Amount at December 31, 2012,rnthe company’s net worthrnsweep dividend obligationrnto Treasury in March 2013 will be $5.8 billion.</p

BeginningrnJanuary 1, 2013, the amount of remaining funding available tornFreddie Mac under thernPurchase Agreement with Treasury isrn$140.5 billion. This reflects the remaining funding available asrnof December 31, 2009 of $149.3 billion less the company’srnnetrnworth of $8.8 billion at December 31, 2012.</p

FreddiernMac reported that in 2012 it had provided relief financing to 687,000 borrowers</bthrough the Home Affordable Refinance Program (HARP) and other relief programsrnand had refinanced 996,000 borrowers through traditional programs.  The company financed 353,000 home purchasesrnand 436,000 multi-family units.  Throughrnthese programs it provided $427 billion in liquidity to the market inrn2012.  Freddie Mac's various foreclosurernprevention programs reached 169,000 homeowners in 2012.</p