Freddie Mac Reports $2.8 Billion Net Income in Q3 2025, Down 11% Year-Over-Year

Freddie Mac reported its financial results for the third quarter of 2025, revealing a net income of $2.8 billion, a decrease of 11% compared to the same period in 2024. The decline was primarily attributed to a credit reserve build in the current quarter, contrasting with a credit reserve release in the previous year. Net revenues for the quarter were $5.7 billion, down 2% year-over-year, driven by lower non-interest income, although this was partially offset by an increase in net interest income, which rose by 9% to $5.5 billion.

The company's net worth increased to $67.6 billion as of September 30, 2025, up from $56.4 billion a year earlier. This growth in net worth will contribute to the liquidation preference of the senior preferred stock, which was $137.5 billion at the end of the quarter and is expected to rise to $140.2 billion by the end of the year. Freddie Mac provided $124 billion in liquidity to the mortgage market during the quarter, facilitating the financing of 483,000 home purchases, refinancings, and rental units.

Freddie Mac's mortgage portfolio grew by 2% year-over-year to $3.6 trillion, with the Single-Family segment accounting for $3.1 trillion and the Multifamily segment reaching $480 billion, which marked a 6% increase. The company reported that 62% of its Single-Family mortgage portfolio and 90% of its Multifamily portfolio had partial credit enhancement coverage as of September 30, 2025. The increase in the Multifamily portfolio was attributed to a larger originations market and a strategic shift towards fully guaranteed securitizations.

Operationally, Freddie Mac's employee headcount remained stable, and the company continued to focus on enhancing its credit risk management strategies. The filing indicated that the provision for credit losses was $175 million for the quarter, a significant shift from a benefit of $191 million in the prior year, reflecting a more cautious outlook amid changing market conditions. The company noted that it is closely monitoring housing market indicators and credit quality characteristics, which could impact future performance.

Looking ahead, Freddie Mac remains committed to its mission of providing liquidity and stability to the U.S. housing market, while navigating the uncertainties associated with its conservatorship. The company is also preparing for potential regulatory changes and market conditions that could affect its operations and financial results. The outlook remains cautious, with Freddie Mac emphasizing the importance of maintaining adequate liquidity and capital resources to support its ongoing business activities.