Freddie Mac Reports $11.8 Billion Net Income for 2024, 13% Increase from 2023

Freddie Mac reported net income of $11.8 billion for the year ended December 31, 2024, a 13% increase compared to $10.5 billion in 2023. This increase was primarily due to higher net revenues, partially offset by a credit reserve build in the Single-Family segment in 2024, contrasting with a credit reserve release in the same segment during 2023. Net revenues rose 13% year-over-year to $23.9 billion, driven by increases in both net interest income and non-interest income. Net worth increased to $59.6 billion as of December 31, 2024, up from $47.7 billion at the end of 2023.

The company provided $411 billion in liquidity to the mortgage market in 2024, facilitating the financing of 1.6 million home purchases, refinancings, and rental units. Freddie Mac's mortgage portfolio grew by 3% year-over-year to $3.6 trillion as of December 31, 2024, with the Single-Family portfolio increasing by 2% to $3.1 trillion and the Multifamily portfolio rising by 6% to $467 billion. The 2023 portfolio growth moderated to 2% year-over-year due to higher mortgage interest rates impacting new business activity.

Freddie Mac operates under the conservatorship of the Federal Housing Finance Agency (FHFA) since September 2008. This conservatorship significantly impacts the company's management, business activities, financial condition, and results of operations. The company's future remains uncertain, with no specified termination date for the conservatorship. Freddie Mac's operations are subject to the Purchase Agreement with the U.S. Treasury, which significantly affects its business activities, including limitations on secondary market activities, single-family loan acquisitions, indebtedness, and dividend payments.

The company's two reportable segments are Single-Family and Multifamily. As of January 31, 2025, Freddie Mac employed 8,076 full-time and 27 part-time employees, primarily located in the Washington, D.C. metropolitan area. The company's business is subject to extensive government regulation and supervision, impacting various aspects of its operations, including product offerings, pricing, and capital structure. Non-compliance with legal and regulatory requirements could result in penalties and reputational harm.

Freddie Mac's outlook is contingent upon various factors, including government actions, economic conditions, and market trends. The company's forward-looking statements acknowledge uncertainties related to the conservatorship, its business segments' performance, market conditions, legislative and regulatory developments, and credit quality. The company undertakes no obligation to update any forward-looking statements.