Critical role in implementing 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, providing secondary-market liquidity to the U.S. residential mortgage market Significant improvements in risk management since the financial crisis Significant undercapitalization, though an amended agreement with the U.S. Treasury allows it to build capital toward regulatory requirements Monoline exposure to the U.S. mortgage market Elevated, but manageable delinquencies as of June 30, 2021 resulting from the economic fallout from COVID-19 Substantial uncertainties regarding the probability, timing, and scenario under which it may exit conservatorship The stable outlooks on our ratings on Freddie Mac's debt issues reflect the stable outlook on our sovereign
