Freddie Mac Reports $2.4 Billion Net Income in Q2 2025, Down 14% Year-Over-Year

Freddie Mac reported its financial results for the second quarter of 2025, revealing a net income of $2.4 billion, a decrease of 14% compared to the same period in 2024. The decline was primarily attributed to an increase in the provision for credit losses, which rose to $783 million from $394 million year-over-year. Net revenues for the quarter were $5.9 billion, down 1% from $5.988 billion in the prior year, driven by lower non-interest income, although this was partially offset by an increase in net interest income, which rose by 8% to $5.3 billion.

In terms of operational metrics, Freddie Mac's mortgage portfolio grew by 2% year-over-year, reaching $3.6 trillion as of June 30, 2025. The Single-Family mortgage portfolio accounted for $3.1 trillion, while the Multifamily segment increased to $466 billion, reflecting a 4% year-over-year growth. The company provided $106 billion in liquidity to the mortgage market during the quarter, facilitating the financing of 363,000 home purchases, refinancings, and rental units. The serious delinquency rate for the Single-Family mortgage portfolio increased slightly to 0.55%, up from 0.50% a year earlier.

Freddie Mac's net worth increased to $64.8 billion as of June 30, 2025, compared to $53.2 billion a year prior. This increase will be added to the aggregate liquidation preference of the senior preferred stock, which stood at $135.1 billion at the end of the quarter. The company continues to operate under conservatorship, with the Federal Housing Finance Agency (FHFA) as its conservator, which significantly impacts its business activities and financial condition.

Strategically, Freddie Mac has been focusing on enhancing its credit risk transfer programs, with 62% of its Single-Family mortgage portfolio and 92% of its Multifamily portfolio covered by credit enhancements as of June 30, 2025. The company has also seen a shift in its business strategy, resulting in an increase in the volume of fully guaranteed securitizations in the Multifamily segment. Looking ahead, Freddie Mac remains cautious about market conditions and the potential impacts of regulatory changes, particularly regarding its conservatorship status and the broader housing market dynamics.

Overall, while Freddie Mac's financial performance showed some resilience in net interest income and portfolio growth, the increase in credit loss provisions and the ongoing conservatorship present challenges as the company navigates the evolving housing market landscape.