Critical role in the implementation of U.S. government housing policy Integral link to the U.S. government Ongoing financial support from the U.S. Treasury Near-dominant market position, second only to Fannie Mae, as a secondary-market liquidity provider to the U.S. residential mortgage market Significant improvements in risk management since the financial crisis Structural inability to add to its extremely slim reported equity once it reaches $20 billion (albeit up from $3 billion) Monoline exposure to the U.S. residential mortgage market Delinquencies will likely rise due to economic fallout of COVID-19 and test the effectiveness of credit enhancements and private investors' appetite for bearing such risk Substantial uncertainties regarding impact of potential legislative changes The stable outlooks on our ratings on Freddie
