Freddie Mac projected a pretax net loss of $15.3 billion from the first quarter of 2017 through the first quarter of 2019 under the severely adverse scenario of the Dodd-Frank stress test.

The severely adverse scenario uses a 6.5% decline in GDP from the pre-recession peak and the unemployment rate reaching 10%.

Freddie Mac would see $7.3 billion in credit losses, or 0.36% of average portfolio balance during the covered period.

The Federal Housing Finance Agency requires that Freddie Mac disclose stress test results in the severely adverse scenario under a version that does not reflect having to re-establish the valuation reserve on deferred tax assets and under another version that reflects re-establishing the deferred tax asset reserve.

Without re-establishing valuation allowance on the deferred tax assets, Freddie Mac would post a total comprehensive loss of $20.2 billion and additional Treasury draws of $20.5 billion during the nine quarters, leaving $120 billion remaining under the preferred stock purchase agreement with the U.S. Treasury Department. With re-establishing valuation allowance on deferred tax assets, Freddie Mac would see a total comprehensive loss of $41.9 billion, $42.6 billion in additional draws and $97.8 billion remaining under the preferred stock purchase agreement.