Key facts
- Freddie Mac reported $3.8 billion in net income for the second quarter.
- Net income increased 61% from the prior year, reaching $3.8 billion.
- Net revenue rose 1% year-over-year to $5.991 billion.
- Net interest income increased 13% to $6.01 billion.
- A $880 million benefit for credit losses was recorded.
- Freddie Mac's total mortgage portfolio grew to $3.7 trillion.
Freddie Mac reported a second-quarter net income of $3.8 billion, marking a 61% increase compared to the same period last year. This growth was primarily attributed to a release of credit reserves and an increase in net interest income. The company's net revenue saw a 1% rise year-over-year to $5.991 billion, supported by expansion in its mortgage portfolios and a larger balance of guaranteed multifamily securitizations.
During the quarter, Freddie Mac recorded an $880 million benefit for credit losses, a significant shift from the provision made in the prior year. This benefit stemmed from a release of single-family credit reserves following process updates for future home-price scenarios. The company's total mortgage portfolio expanded to $3.7 trillion.
The single-family business contributed $3.277 billion to net income, with new business activity increasing to $110 billion, largely due to higher refinance rates. The multifamily segment reported a net income of $561 million, with net revenue up 14% to $891 million, and new business activity reaching $18 billion.
Freddie Mac's net worth grew to $77.8 billion by the end of the quarter, up from $64.8 billion a year prior. The company stated it helped nearly 439,000 families buy, refinance, or rent a home in the second quarter, with a significant portion of financed units being affordable to low- and moderate-income families.