Freddie Mac Reports $10.7 Billion Net Income for 2025, 10% Decrease from 2024

Freddie Mac reported a net income of $10.7 billion for 2025, a 10% decrease compared to the $11.9 billion reported in 2024. This decline was primarily attributed to lower net revenues and an increase in the provision for credit losses. Net revenues for 2025 totaled $23.3 billion, a 3% decrease from the $23.9 billion in the previous year, driven by lower non-interest income, which was partially offset by higher net interest income. The company's net worth increased to $70.4 billion as of December 31, 2025, up from $59.6 billion as of December 31, 2024.

The company's net interest income increased by 8% to $21.4 billion in 2025, compared to $19.7 billion in 2024, primarily due to continued mortgage portfolio growth in the Single-Family segment and an increase in the volume of fully guaranteed securitizations in the Multifamily segment. Non-interest income decreased by 55% to $1.9 billion in 2025, compared to $4.2 billion in 2024, primarily due to interest rate and spread changes in the Single-Family segment, as well as lower revenues from held-for-sale loan purchase and securitization activities and impacts from interest-rate risk management activities in the Multifamily segment. The provision for credit losses increased significantly to $1.3 billion in 2025, compared to $476 million in 2024, driven by a credit reserve build in the Single-Family segment attributable to new acquisitions, changes in estimated market values of single-family properties based on the company's internal house price index, and changes in forecasted house price growth rates, as well as a credit reserve build in the Multifamily segment attributable to new loan purchase commitment and acquisition activities due to the change in the company's Multifamily business strategy and deterioration in the credit performance of certain delinquent loans.

Key operational developments included a 2% increase in the mortgage portfolio to $3.7 trillion at December 31, 2025, with the Single-Family mortgage portfolio increasing by 2% to $3.2 trillion and the Multifamily mortgage portfolio increasing by 6% to $496 billion. New business activity in the Single-Family segment increased by 12% to $388.7 billion in 2025, driven by an increase in refinance activity. In the Multifamily segment, new business activity increased by 17% to $76.4 billion in 2025, driven by a larger multifamily originations market, coupled with the execution of the company's competitive strategies. The company provided $465 billion in liquidity to the mortgage market in 2025, which enabled the financing of 1.7 million home purchases, refinancings, and rental units.

Freddie Mac continues to operate under the conservatorship of the FHFA, which significantly affects the company's management, business activities, financial condition, and results of operations. The Purchase Agreement with the U.S. Department of the Treasury remains critical to the company's solvency and liquidity. The company's ability to pay dividends to Treasury on the senior preferred stock is contingent upon meeting capital requirements and buffers set forth in the ERCF. As of January 31, 2026, the company had 7,355 employees.

Looking ahead, Freddie Mac expects guarantee income to decline in future periods as it focuses primarily on issuing fully guaranteed securities in the Multifamily segment. The company also expects net investment gains related to sales of multifamily loans to be lower in future periods as it focuses primarily on issuing fully guaranteed securitizations. The company's future performance is subject to various risks and uncertainties, including changes in economic and market conditions, legislative and regulatory developments, and the actions of FHFA and Treasury.