Freddie Mac (FMCC) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was $2.4 billion, down 14% year-over-year, mainly due to higher provision for credit losses.

• Net revenues were $5.9 billion, a 1% decrease year-over-year, with lower non-interest income partially offset by higher net interest income.

• Net worth rose to $65 billion at quarter end, up from $53.2 billion a year earlier.

• Provided over $100 billion in liquidity, supporting more than 360,000 families, with over 100,000 first-time homebuyers.

• 53% of single-family homes and 95% of eligible rental units financed were affordable to low/moderate-income households.

Financial highlights

• Net interest income rose 8% year-over-year to $5.3 billion, driven by mortgage portfolio growth and lower funding costs.

• Non-interest income fell 42% year-over-year, primarily from lower investment gains in multifamily.

• Provision for credit losses increased to $783 million, mainly from a credit reserve build in Single-Family due to lower house price forecasts.

• Net revenues for Q2 2025 were $5.9 billion, down 1% year-over-year.

• Total mortgage portfolio grew 2% year-over-year to $3.6 trillion.

Outlook and guidance

• House price forecast revised downward: 1.3% increase expected over next 12 months, down from previous 4.2% forecast.

• Management expects continued focus on efficiency, productivity, and safe portfolio growth.

• Forward-looking statements highlight risks from economic, market, and regulatory changes.

• FHFA continues to modify or rescind guidance, with uncertain impacts on business operations.