Q1 2020 Earnings Call

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Ladies and gentlemen, thank you for standing by and welcome to the Freddie Mac.

First quarter 2020 financial results call at this time participate in lines on to listen only mode. After the speakers presentation there'll be a question and answer session to ask a question during the session you'll need to press star one on your telephone.

If you acquire any further assistance. Please press star Zero I would now likely in the conference over to your Speaker JP Markowitz Senior Vice President of external relations and corporate communications.

Please go ahead Sir.

Thank you and good morning, Thank you for joining us for a discussion or Freddie Mac's first quarter 2020 financial results were joined today by our CEO, David Brickman General Counsel recorder ones are doing kind of single family done it clearly an acting CFO, Donnie Krish and CEO Jerry wise.

Before we begin.

We'd like to point out the during this call Freddie Mac executives may make forward looking statements, which are based on a set of assumptions about the company's key business drivers. There are factors changes in these factors could cause the company's actual results.

Sure vary materially from its expectations a description of these factors can be found in the company's quarterly report on form.

Thank you filed today.

Getting back executives may also discuss non-GAAP financial measures.

The protein only to the earnings statements just released there will be no culinary on any other topics. As reminder, this calls for the media and only they may ask questions with that I will turn the call over to David Letterman study next CEO.

Thank you, Jeff and good morning, welcome to our first quarter earnings Conference call.

Today's discussion will cover the following.

The company's response to the coded 19 endemic.

Freddie Mac.

First quarter financial and business results.

Our outlook on these uncertain times.

I want to first start by saying that I hope everyone on this call and all the families are seeing safe.

And really positive during these challenging time.

To bring this morning's discussion highlight the unprecedented.

Millions over the past six months.

Unprecedented increase.

Unemployment.

Second new home sales fell 15.4% to a seasonally adjusted annual rate of 627000 units last month.

The largest percentage decline.

Since July 2013.

On the rental side survey by rental technology company of deals or does it before.

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Yes.

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Could you.

Good morning.

Hello.

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We reported.

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We will be rewarded.

We will.

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Your.

Good.

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Ben do.

Good.

We'll be bringing our quarter final.

We have provided mortgage will be launched looking for more.

Your solutions, we will then.

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You offered more modification option.

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We're learning proved arguments.

The decision, which we struggle Peters.

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Encoder loop, which would you be book reserves.

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Liquidity.

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Dilutive.

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We are the company will deliver.

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Mark.

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For for Euro zone.

The good operational we're technology leadership.

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Total extraordinary.

We continue with the book to Bill.

We continue to put these loans we monitor.

We'll continue to bring new move ins Julie.

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And we look at the usual.

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All sports.

That's helpful New told the company.

A replay of inquiries.

Robert.

Where do you.

She was unfortunately utility.

Demonstrate.

Early recovery.

The solution.

Now, let's first look first quarters later.

We will comprehensive income.

<unk> point $6 billion.

Decrease.

One.

Oh your point 5 billion out there.

Higher water losses in June.

So John.

When we drill remorse reward.

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You produce whistler changes this quarter quarter.

You're.

As a downturn.

Wireless expected growth.

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Yes.

The partially offset by expected to close.

Great enhancements, which go diseases.

As of March.

Q3.

Chris will transactions, including dark.

Probably 51%.

Chris.

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Yes, the interest income.

Third quarter.

Just.

Two questions on Europe GDP growth.

We will work closely with revenue was a strong.

Increases would from Macquarie.

Total equity now stands at 9.5 noise.

What.

Wow.

Capital strengthens our balance sheet.

Great.

Our goal.

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Youre welcome to increase in total.

Should we trucks with other comprehensive income.

Well.

Increased by.

Locally.

This is due to just have to change orders.

Moving to all the options.

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During the quarter.

For example, we believe we soon.

Angie.

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Okay.

Launches.

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Bill.

Significant linkage.

We've also the gene Honda.

Our loan balance sheet.

We are positioning ourselves.

So Joe I'll do the here.

Good morning, everyone through.

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Hi, good long term.

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Looking forward, we issued a plot.

Two weeks margulies dollars.

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We follow that opposition lumber will flow through the.

Second overview.

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These issuances builds to draw.

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We have the where weve overview for financial obligation.

Quality meet local.

Moving to our business as usual, we executed on our mission of providing stability.

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You quarter, we hope for the 640 barrels.

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On a year we.

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This is beyond the goals in would result in Brazil.

Extraordinary measures on structure.

The challenge now because of that little bit.

Total.

Which one of which will.

Over the next year.

Well, we're increasing the fourth quarter.

Sure we'll have to become converging.

We also.

Correct.

Please.

Robert.

The quality.

We're still be significant.

We'll be original football litigation.

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In addition, the federal reserve supportive of one solution.

Steve was born.

Good.

We expect reached really low over two years results includes.

Largely offset.

Corn, we're disappointed.

We expect fluor's delinquency rates low volume awards litigation activity.

Significantly.

Your term.

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While we believe.

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Sounds good results.

Last litigation the short term.

We will work, we see higher delinquencies.

Future.

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This is award for war.

Loss from the merger.

Recruiting clearly we have opened on certain times.

What we were interested.

Well there is moving towards low.

The plan.

So you will recall.

Our backfill rewards.

With capital.

I think we'll go into targets Chamber Division food.

Customer.

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The growth rate progression will hold global health.

Okay. Good local.

Basically remarks.

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The strong.

Bookings continued through holds reported numbers Scott.

On way for back to belt.

Remarks, there will still grow on doing on growth.

For the time.

Okay.

Okay.

I will now take any questions.

Great.

As a reminder that question.

Good morning neutral.

Your question.

Please be mindful combo jewelry roster.

Once again those stores on ladies and gentlemen.

Just a question.

And our first question is going to come from Olivia.

Okay.

And your line is no.

Thanks, so much for taking my call.

Finally.

Maybe you can talk a little bit more about what happened at the end forbearance period.

Okay, great and falling.

Hi payment opportunities.

Will you be issuing debt.

You talked about please thanks.

Sure.

Additional options lose different options that you will fare water closed loans.

We continue to remain.

Security mortgage backed securities.

No.

Not performed in certain instances.

Our focus there obviously.

We are.

Our balance sheet merger, but it really depends on board.

Where is that how lower orders.

Okay.

Our comments.

Yes.

Thank you and any.

Hey, ultimately will give some more insight into what you see.

Data with four there on infer that you expect.

Overall, two quick questions wise any more color on how much I, just really anything that youre seeing in terms of reimbursable costs.

Unfortunately, we cant at this point in time.

Still wall.

Well.

Hello.

Hope to do we'll provide more solutions.

Yes.

Yeah.

Please.

To close.

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Yeah.

Good luck loads more reported.

On the statistics.

What would you look abroad.

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Okay.

Thank you.

Next question comes from.

Hello.

Thank God mortgage loans now open.

Okay.

Paul.

Good question about.

Sure.

Looking at all.

It is.

Okay.

Okay.

Any movement so.

Hello.

Yes.

Hello.

Yes.

Sure.

Thanks for the question.

But the volume versus the two pieces.

As I mentioned in my comments.

Fourth quarter, we continue to do you see or too early.

I'll now Mark will hold bars sealer too.

During the call.

Your first between how big those transactions.

Versus what we see in terms of liquidity modeling.

The ability to issue with the future offer flows addressing what we've already shipping and we expect you to perform as expected.

Please refer to.

Roughly.

Gross margin.

Both.

Offer to our provisions related to.

Veterans here so bird.

We spoke of.

Before.

The Rob.

Thank you.

Hi, Bill.

So for that matter looking good.

We experienced.

Significant volatility over the.

Several weeks third is moving quickly.

Yes.

Lewis with also similar products.

Spring includes report.

Hello good.

No they want to speculate but nothing on we're working actively with low.

Quarter of both based on.

Good morning.

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Hey, Doug will could you level, we expect Q.

In the region.

We are feeling strong flow.

Okay.

Thank you for gold label.

Thank you.

I'm showing no further questions. So now, let's turn the call back over to Jeff.

Hi.

Sure thank everybody congratulations.

During the quarter.

Thank you ladies and gentlemen, this concludes todays conference call. Thank you participating you may now disconnect.

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