Freddie Mac Reports $3.6 Billion Net Income in Q1 2026, 27% Increase Year-Over-Year

Freddie Mac reported a net income of $3.6 billion for the first quarter of 2026, marking a 27% increase from the same period in 2025. This growth was primarily driven by a rise in net revenues, which reached $6.1 billion, a 5% year-over-year increase. The increase in net revenues was largely attributed to higher net interest income, which rose by 10% to $5.6 billion, while non-interest income fell by 31% to $514 million. The company's net worth also saw a significant increase, climbing to $73.9 billion from $62.4 billion a year earlier.

In terms of operational metrics, Freddie Mac provided $116 billion in liquidity to the mortgage market during the first quarter, facilitating the financing of approximately 380,000 home purchases, refinancings, and rental units. The mortgage portfolio grew by 2% year-over-year to $3.7 trillion, with the Single-Family segment accounting for $3.2 trillion and the Multifamily segment increasing by 7% to $498 billion. The company reported a total of 281,224 loans in the Single-Family segment, a 25% increase compared to the previous year, driven by a surge in refinance activity.

Freddie Mac's strategic developments included a shift in its Multifamily business model towards issuing fully guaranteed securities, which contributed to a 158% increase in fully guaranteed securitizations. The company also announced a limited rollout to accept loans scored with VantageScore® 4.0, with plans for similar implementation for FICO® Score 10T in the future. These changes reflect Freddie Mac's ongoing efforts to adapt to market conditions and enhance its product offerings.

The filing also highlighted a significant credit reserve release of $320 million in the first quarter of 2026, compared to a credit reserve build of $280 million in the same quarter of 2025. This shift was attributed to changes in the company's outlook on forecasted house price growth rates. Non-interest expenses decreased by 3% to $2.0 billion, primarily due to lower salaries and employee benefits, which were influenced by a reduction in employee headcount.

Looking ahead, Freddie Mac's management expressed cautious optimism regarding the housing market, noting that while the company continues to support liquidity and affordability in the mortgage sector, various economic factors, including interest rates and housing supply, could impact future performance. The company remains focused on maintaining adequate liquidity and capital resources to navigate potential challenges while fulfilling its mission to provide stability to the U.S. housing market.