2001 Annual Report

The complete report has been divided into four segments for easier online viewing and printing.

To our Shareholders:

2001 was a great year for Freddie Mac. We financed homes for more than three million families, including record numbers of first-time homebuyers. We delivered strong, high-quality earnings, with operating earnings per share of $4.21, up 24 percent from 2000. Our shareholders enjoyed a return on common equity exceeding 20 percent for the 20th consecutive year.

Freddie Mac achieved record volume in both our single-family and multifamily business in 2001, ensuring that a stable supply of low-cost mortgage money was available to America’s housing market. The support we provided to the market last year sustained a strong housing sector and helped buffer the weakening economy. Read the full text of the letter from Leland Brendsel and David Glenn [PDF 1.1M].

Segment 1 of the Report [PDF 1.1M] contains the following information:

Table of Contents

Financial Highlights
Shareholder Letter
Keys to the American Dream
Board of Directors

Segment 2 of the Report [PDF 735K] contains the following information:

Financial Review
Five-Year Financial Highlights
Management's Discussion and Analysis of Financial
 Condition and Results of Operations
Financial Highlights
Forward-Looking Statements
Business Outlook
Market Overview
Business Review
Critical Accounting Policies
Effect of Derivative Accounting on
 Reported Financial Results and Operating Earnings
Risk Management
    Credit Risk
            Mortgage Credit Risk
                Mortgage Credit Risk Management Strategies
            Institutional Credit Risk
    Interest-Rate Risk and Other Market Risks
            Interest-Rate Risk
            Sources of Interest-Rate Risk
            Interest-Rate Risk Management Strategies
                   Funding Transactions
                   Asset-Related Strategies
                   Derivative Transactions
                   Hedging Strategies
                   Summary of Derivatives Positions
                   Derivative-related Benefits
                   Derivative-related Risks
                Measurement of Interest-Rate Risk
                Risk Management Results
                Other Market Risks
            Operational Risks
Liquidity and Capital Management
Volume Statistics
Average Balance Sheets and Rate/Volume Analysis
Operating Earnings
Consolidated Results of Operations
Regulatory Matters
Tax Matters
Voluntary Commitments

Segment 3 of the Report [PDF 835K] contains the following information:

Consolidated Financial Statements
Notes to Consolidated Financial Statements
Management's Report on Consolidated Financial Statements
 and Internal Control Structure

Segment 4 of the Report [PDF 500K] contains the following information:

Report of Independent Public Accountants
Additional Financial Information
Eleven-Year Financial Highlights
Shareholder Information