Freddie Mac Reports 61% Increase in Net Income to $3.8 Billion in Q2 2026

Freddie Mac reported significant financial performance improvements in its second quarter of 2026, with net income reaching $3.8 billion, a 61% increase from $2.4 billion in the same period last year. This surge was primarily attributed to a credit reserve release in the current quarter, contrasting with a credit reserve build in the previous year. Net revenues for the quarter were $6.0 billion, reflecting a modest 1% year-over-year increase, driven by higher net interest income, which rose by 13% to $6.0 billion, while non-interest income turned negative at $(19) million, down from $617 million in 2Q 2025.

The company's net worth also saw a substantial increase, climbing to $77.8 billion as of June 30, 2026, compared to $64.8 billion a year earlier. This growth in net worth will contribute to the liquidation preference of the senior preferred stock, which stood at $146.6 billion at the end of the quarter. Freddie Mac provided $128 billion in liquidity to the mortgage market during the quarter, facilitating the financing of 439,000 home purchases, refinancings, and rental units.

Freddie Mac's mortgage portfolio expanded by 2% year-over-year to $3.7 trillion, with the Single-Family segment growing to $3.2 trillion, a 1% increase, while the Multifamily segment surged by 8% to $505 billion. The company reported a notable increase in new business activity, particularly in the Single-Family segment, where total UPB rose by 18% to $110.1 billion in 2Q 2026, driven by a significant uptick in refinance activity. The Multifamily segment also experienced growth, with new business activity increasing by 58% year-over-year.

Operationally, Freddie Mac's employee headcount decreased, contributing to a 3% reduction in non-interest expenses to $2.1 billion. The company continues to navigate the complexities of its conservatorship, which has been in place since 2008, and remains subject to regulatory oversight by the Federal Housing Finance Agency (FHFA). Looking ahead, Freddie Mac's management expressed cautious optimism, noting that while the current economic environment presents challenges, the company is well-positioned to support the housing market and maintain liquidity. The outlook remains uncertain, particularly regarding potential changes in regulatory frameworks and market conditions.