fmcc-20250331

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended March 31, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period from to

Commission File Number: 001-34139

Federal Home Loan Mortgage Corporation

(Exact name of registrant as specified in its charter)

Federally chartered

52-0904874

8200 Jones Branch Drive

22102-3110

(703)

903-2000

corporation

McLean,

Virginia

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer

Identification No.)

(Address of principal executive offices)

(Zip Code)

(Registrant's telephone number,
including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None	N/A	N/A

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 8, 2025, there were 650,059,553 shares of the registrant's common stock outstanding.


Table of Contents

Table of Contents


			Page
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS			1
n Introduction			1
n Housing and Mortgage Market Conditions			4
n Consolidated Results of Operations			6
n Consolidated Balance Sheets Analysis			9
n Our Portfolios			10
n Our Business Segments			12
n Risk Management			19
l Credit Risk			19
l Market Risk			28
n Liquidity and Capital Resources			31
n Critical Accounting Estimates			37

n Regulation and Supervision			38
n Forward-Looking Statements			39
FINANCIAL STATEMENTS			41
OTHER INFORMATION			85
CONTROLS AND PROCEDURES			87
EXHIBIT INDEX			89
SIGNATURES			90
FORM 10-Q INDEX			91


Freddie Mac 1Q 2025 Form 10-Q						i


Table of Contents

MD&A TABLE INDEX


Table	Description	Page
1	Summary of Consolidated Statements of Income and Comprehensive Income	6
2	Components of Net Interest Income	6
3	Analysis of Net Interest Yield	7
4	Components of Non-Interest Income	7
5	(Provision) Benefit for Credit Losses	8
6	Components of Non-Interest Expense	8
7	Summarized Condensed Consolidated Balance Sheets	9
8	Mortgage Portfolio	10
9	Mortgage-Related Investments Portfolio	11
10	Other Investments Portfolio	11
11	Single-Family Segment Financial Results	15
12	Multifamily Segment Financial Results	18
13	Allowance for Credit Losses Activity	19
14	Allowance for Credit Losses Ratios	19
15	Single-Family New Business Activity	21
16	Single-Family Mortgage Portfolio Newly Acquired Credit Enhancements	21
17	Single-Family Mortgage Portfolio Credit Enhancement Coverage Outstanding	22
18	Serious Delinquency Rates for Credit-Enhanced and Non-Credit-Enhanced Loans in Our Single-Family Mortgage Portfolio	22
19	Credit Quality Characteristics and Serious Delinquency Rates of Our Single-Family Mortgage Portfolio	23
20	Single-Family Mortgage Portfolio Attribute Combinations	24
21	Single-Family Completed Loan Workout Activity	25
22	Multifamily Mortgage Portfolio CRT Issuance	27
23	Credit-Enhanced and Non-Credit-Enhanced Loans Underlying Our Multifamily Mortgage Portfolio	27
24	Credit Quality of Our Multifamily Mortgage Portfolio Without Credit Enhancement	27
25	Duration Gap and PVS-YC and PVS-L Results Assuming Shifts of the Yield Curve	29
26	Duration Gap and PVS Results	29
27	Income Sensitivity on Financial Instruments Not Primarily Funded by Debt	29
28	PVS-L Results Before Derivatives and After Derivatives	29
29	GAAP Fair Value Sensitivity to Changes in Interest Rates	30
30	Liquidity Sources	31
31	Funding Sources	32
32	Debt of Freddie Mac Activity	32
33	Maturity and Redemption Dates	33
34	Debt of Consolidated Trusts Activity	33
35	Net Worth Activity	34
36	Regulatory Capital Components	34
37	Statutory Capital Components	34
38	Capital Metrics Under ERCF	35
39	Forecasted House Price Growth Rates	37


Freddie Mac 1Q 2025 Form 10-Q						ii


Management's Discussion and Analysis						Introduction

Management's Discussion and Analysis of Financial Condition and Results of Operations

This Quarterly Report on Form 10-Q includes forward-looking statements that are based on current expectations and that are subject to significant risks and uncertainties. These forward-looking statements are made as of the date of this Form 10-Q. We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date of this Form 10-Q. Actual results might differ significantly from those described in or implied by such statements due to various factors and uncertainties, including those described in the MD&A - Forward-Looking Statements section of this Form 10-Q and the Introduction and Risk Factors sections of our Annual Report on Form 10-K for the year ended December 31, 2024, or 202 4 Annual Report.

Throughout this Form 10-Q, we use certain acronyms and terms that are defined in the Glossary of our 2024 Annual Report.

You should read the following MD&A in conjunction with our 2024 Annual Report and our condensed consolidated financial statements and accompanying notes for the three months ended March 31, 2025 included in Financial Statements.

INTRODUCTION

Freddie Mac is a GSE chartered by Congress in 1970, with a mission to provide liquidity, stability, and affordability to the U.S. housing market. We do this primarily by purchasing single-family and multifamily residential mortgage loans originated by lenders. In most instances, we package these loans into guaranteed mortgage-related securities, which are sold in the global capital markets, and transfer interest-rate and liquidity risks to third-party investors. In addition, we transfer a portion of our mortgage credit risk exposure to third-party investors through our credit risk transfer programs, which include securities- and insurance-based offerings. We also invest in mortgage loans, mortgage-related securities, and other types of assets. We do not originate mortgage loans or lend money directly to mortgage borrowers.

We support the U.S. housing market and the overall economy by enabling America's families to access mortgage loan funding with better terms and by providing consistent liquidity to the single-family and multifamily mortgage markets. We have helped many distressed borrowers keep their homes or avoid foreclosure and have helped many distressed renters avoid eviction.

Since September 2008, we have been operating in conservatorship, with FHFA as our Conservator. The conservatorship and related matters significantly affect our management, business activities, financial condition, and results of operations. Our future is uncertain, and the conservatorship has no specified termination date. We do not know what changes may occur to our business model during or following conservatorship, including whether we will continue to exist. In connection with our entry into conservatorship, we entered into the Purchase Agreement with Treasury under which we issued Treasury both senior preferred stock and a warrant to purchase common stock. The Purchase Agreement with Treasury is critical to keeping us solvent and avoiding the appointment of a receiver by FHFA under statutory mandatory receivership provisions. We believe the support provided by Treasury pursuant to the Purchase Agreement currently enables us to have adequate liquidity to conduct normal business activities. For additional information on the conservatorship and related matters and the Purchase Agreement, see our 2024 Annual Report.


Freddie Mac 1Q 2025 Form 10-Q						1


Management's Discussion and Analysis						Introduction

Business Results

Consolidated Financial Results

Net Revenues and Net Income

(In billions)

Net Worth

(In billions)

Key Drivers:

n Net income was $2.8 billion, up 1% from 1Q 2024.

n Net revenues were $5.9 billion, an increase of 2% year-over-year, primarily driven by higher net interest income, partially offset by lower non-interest income.

n Net worth was $62.4 billion as of March 31, 2025, up from $50.5 billion as of March 31, 2024. The quarterly increases in net worth have been, or will be, added to the aggregate liquidation preference of the senior preferred stock. The liquidation preference of the senior preferred stock was $132.2 billion on March 31, 2025, and will increase to $135.1 billion on June 30, 2025 based on the increase in net worth in 1Q 2025.

Market Liquidity

Market Liquidity

(In thousands)

We support the U.S. housing market by executing our mission to provide liquidity and help maintain credit availability for new and refinanced single-family mortgages as well as for rental housing. We provided $88 billion in liquidity to the mortgage market in 1Q 2025, which enabled the financing of 313,000 home purchases, refinancings, and rental units.


Freddie Mac 1Q 2025 Form 10-Q						2


Management's Discussion and Analysis						Introduction

Mortgage Portfolio Balances

Mortgage Portfolio

(UPB in billions)

Key Drivers:

n Our mortgage portfolio increased 3% year-over-year to $3.6 trillion at March 31, 2025, continuing to grow at a moderate pace.

l Our Single-Family mortgage portfolio was $3.1 trillion at March 31, 2025, up 2% year-over-year.

l Our Multifamily mortgage portfolio was $467 billion at March 31, 2025, up 5% year-over-year.

Credit Enhancement Coverage

Single-Family Mortgage Portfolio with Credit Enhancement

(UPB in billions)

Multifamily Mortgage Portfolio with Credit Enhancement

(UPB in billions)

In addition to transferring interest-rate and liquidity risk to third-party investors through our securitization activities, we engage in various types of credit enhancements, such as primary mortgage insurance and CRT transactions, to reduce our credit risk exposure and transfer a portion of the credit risk on certain loans in our mortgage portfolio to third parties. At March 31, 2025, we had credit enhancement coverage on 62% of our Single-Family mortgage portfolio and 93% of our Multifamily mortgage portfolio. See MD&A - Risk Management – Credit Risk for additional information on our credit enhancements.


Freddie Mac 1Q 2025 Form 10-Q						3


Management's Discussion and Analysis						Housing and Mortgage Market Conditions

HOUSING AND MORTGAGE MARKET CONDITIONS

The charts below present certain housing and mortgage market indicators that can significantly affect our business and financial results. Certain market and macroeconomic prior period data have been updated to reflect revised historical data. For additional information on the effect of these indicators on our business and financial results, see MD&A – Consolidated Results of Operations and MD&A – Our Business Segments.

Single-Family

U.S. Single-Family Home Sales and House Prices

Sources: National Association of Realtors, U.S. Census Bureau, and Freddie Mac House Price Index (seasonally adjusted rate).

U.S. Single-Family Mortgage Originations

(UPB in billions)

Source: Freddie Mac and Fannie Mae.

Single-Family Serious Delinquency Rates

Source: Freddie Mac and National Delinquency Survey from the Mortgage Bankers Association. The 1Q 2025 total mortgage market rate is not yet available.

Single-Family Mortgage Debt Outstanding

(UPB in trillions)

Source: Freddie Mac and Federal Reserve Financial Accounts of the United States of America. The 1Q 2025 U.S. single-family mortgage debt outstanding balance is not yet available.


Freddie Mac 1Q 2025 Form 10-Q						4


Management's Discussion and Analysis						Housing and Mortgage Market Conditions

Multifamily

Apartment Vacancy Rates and Change in Effective Rents

Source: Moody's.

Multifamily Quarterly Property Price Growth Rate

Source: Real Capital Analytics Commercial Property Price Index (RCA CPPI).

Multifamily Delinquency Rates

Source: Freddie Mac, FDIC Quarterly Banking Profile, Intex Solutions, Inc., and Wells Fargo Securities (Multifamily CMBS conduit market, excluding REOs). The 1Q 2025 delinquency rate for FDIC insured institutions is not yet available.

Multifamily Mortgage Debt Outstanding

(UPB in billions)

Source: Freddie Mac and Federal Reserve Financial Accounts of the United States of America. The 1Q 2025 U.S. multifamily mortgage debt outstanding balance is not yet available.


Freddie Mac 1Q 2025 Form 10-Q						5


Management's Discussion and Analysis						Consolidated Results of Operations

CONSOLIDATED RESULTS OF OPERATIONS

The discussion of our consolidated results of operations should be read in conjunction with our condensed consolidated financial statements and accompanying notes.

The table below compares our summarized consolidated results of operations.

Table 1 - Summary of Consolidated Statements of Income and Comprehensive Income


			Change
(Dollars in millions)	1Q 2025	1Q 2024	$	%
Net interest income	$5,102	$4,759	$343	7	%
Non-interest income	750	998	(248)	(25)
Net revenues	5,852	5,757	95	2
(Provision) benefit for credit losses	(280)	(181)	(99)	(55)
Non-interest expense	(2,088)	(2,122)	34	2
Income before income tax expense	3,484	3,454	30	1
Income tax expense	(690)	(688)	(2)	—
Net income	2,794	2,766	28	1
Other comprehensive income (loss), net of taxes and reclassification adjustments	34	(25)	59	NM
Comprehensive income	$2,828	$2,741	$87	3	%

Net Revenues

Net Interest Income

The table below presents the components of net interest income.

Table 2 - Components of Net Interest Income


			Change
(Dollars in millions)	1Q 2025	1Q 2024	$	%
Guarantee net interest income:
Contractual net interest income	$3,981	$3,772	$209	6	%
Deferred fee income	190	166	24	14
Total guarantee net interest income	4,171	3,938	233	6
Investments net interest income	1,297	1,514	(217)	(14)
Impact on net interest income from hedge accounting	(366)	(693)	327	47
Net interest income	$5,102	$4,759	$343	7	%

Key Drivers:

n Guarantee net interest income

l 1Q 2025 vs. 1Q 2024 - Increased primarily due to continued mortgage portfolio growth in Single-Family and an increase in the volume of fully guaranteed securitizations in Multifamily.

n Investments net interest income

l 1Q 2025 vs. 1Q 2024 - Decreased primarily due to lower income from securities purchased under agreements to resell driven by a decrease in short-term interest rates.

n Impact on net interest income from hedge accounting

l 1Q 2025 vs. 1Q 2024 - Decreased due to lower expense related to debt in hedge accounting relationships.


Freddie Mac 1Q 2025 Form 10-Q						6


Management's Discussion and Analysis						Consolidated Results of Operations

Net Interest Yield Analysis

The table below presents a yield analysis of interest-earning assets and interest-bearing liabilities.

Table 3 - Analysis of Net Interest Yield


	1Q 2025				1Q 2024
(Dollars in millions)	Average Balance	Interest Income (Expense)	Average Rate		Average Balance	Interest Income (Expense)	Average Rate
Interest-earning assets:
Cash and cash equivalents	$9,355	$79	3.38	%	$12,141	$125	4.09	%
Securities purchased under agreements to resell	111,687	1,240	4.44		111,796	1,532	5.48
Investment securities	55,955	620	4.43		41,293	470	4.56
Mortgage loans(1)	3,200,240	29,395	3.67		3,100,111	26,229	3.38
Other assets	2,055	31	5.98		1,784	29	6.48
Total interest-earning assets	3,379,292	31,365	3.71		3,267,125	28,385	3.47
Interest-bearing liabilities:
Debt of consolidated trusts	3,125,203	(24,059)	(3.08)		3,035,073	(21,122)	(2.78)
Debt of Freddie Mac	189,394	(2,204)	(4.66)		180,850	(2,504)	(5.53)
Total interest-bearing liabilities	3,314,597	(26,263)	(3.17)		3,215,923	(23,626)	(2.94)
Impact of net non-interest-bearing funding	64,695	—	0.06		51,202	—	0.05
Total funding of interest-earning assets	3,379,292	(26,263)	(3.11)		3,267,125	(23,626)	(2.89)
Net interest income/yield		$5,102	0.60	%		$4,759	0.58	%

(1)Loan fees included in net interest income were $0.3 billion during both 1Q 2025 and 1Q 2024.

Non-Interest Income

The table below presents the components of non-interest income.

Table 4 - Components of Non-Interest Income


			Change
(Dollars in millions)	1Q 2025	1Q 2024	$	%
Guarantee income	$440	$496	($56)	(11)	%
Investment gains, net	192	405	(213)	(53)
Other income	118	97	21	22
Non-interest income	$750	$998	($248)	(25)	%

Key Drivers:

n Guarantee income

l 1Q 2025 vs. 1Q 2024 - Decreased primarily due to lower fair value gains from prepayment rates, partially offset by fair value gains attributable to declines in medium-term interest rates during 1Q 2025.

n Investment gains, net

l 1Q 2025 vs. 1Q 2024 - Decreased primarily due to lower revenues from held-for-sale loan purchase and securitization activities, coupled with impacts from interest-rate risk management activities.


Freddie Mac 1Q 2025 Form 10-Q						7


Management's Discussion and Analysis						Consolidated Results of Operations

(Provision) Benefit for Credit Losses

The table below presents the components of provision for credit losses.

Table 5 - (Provision) Benefit for Credit Losses


			Change
(Dollars in millions)	1Q 2025	1Q 2024	$	%
Single-Family	($228)	($120)	($108)	(90)	%
Multifamily	(52)	(61)	9	15
(Provision) benefit for credit losses	($280)	($181)	($99)	(55)	%

Key Drivers:

n 1Q 2025 vs. 1Q 2024 - The provision for credit losses for 1Q 2025 was primarily driven by a credit reserve build in Single-Family attributable to new acquisitions. The provision for credit losses for 1Q 2024 was primarily driven by a credit reserve build in Single-Family attributable to new acquisitions and increasing mortgage rates.

Non-Interest Expense

The table below presents the components of non-interest expense.

Table 6 - Components of Non-Interest Expense


			Change
(Dollars in millions)	1Q 2025	1Q 2024	$	%
Salaries and employee benefits	($423)	($421)	($2)	—	%
Professional services, technology, and occupancy	(253)	(271)	18	7
Credit enhancement expense	(540)	(597)	57	10
Legislative and regulatory assessments:
Legislated guarantee fees expense	(744)	(724)	(20)	(3)
Affordable housing funds allocation	(37)	(30)	(7)	(23)
Regulatory assessment	(36)	(33)	(3)	(9)
Total legislative and regulatory assessments	(817)	(787)	(30)	(4)
Other expense	(55)	(46)	(9)	(20)
Non-interest expense	($2,088)	($2,122)	$34	2	%

Key Drivers:

n Credit enhancement expense

l 1Q 2025 vs. 1Q 2024 - Decreased primarily due to a lower volume of outstanding CRT transactions and lower losses on STACR Trust note repurchases.


Freddie Mac 1Q 2025 Form 10-Q						8


Management's Discussion and Analysis						Consolidated Balance Sheets Analysis

CONSOLIDATED BALANCE SHEETS ANALYSIS

The table below compares our summarized condensed consolidated balance sheets.

Table 7 - Summarized Condensed Consolidated Balance Sheets


			Change
(Dollars in millions)	March 31, 2025	December 31, 2024	$	%
Assets:
Cash and cash equivalents	$4,790	$5,534	($744)	(13)	%
Securities purchased under agreements to resell	105,070	100,118	4,952	5
Investment securities, at fair value	59,054	55,771	3,283	6
Mortgage loans held-for-sale	14,405	15,560	(1,155)	(7)
Mortgage loans held-for-investment	3,186,345	3,172,329	14,016	—
Accrued interest receivable	11,050	11,029	21	—
Deferred tax assets, net	4,992	5,018	(26)	(1)
Other assets	23,410	21,333	2,077	10
Total assets	$3,409,116	$3,386,692	$22,424	1	%

Liabilities and Equity
Liabilities:
Accrued interest payable	$9,756	$9,822	($66)	(1)	%
Debt	3,325,101	3,304,949	20,152	1
Other liabilities	11,856	12,346	(490)	(4)
Total liabilities	3,346,713	3,327,117	19,596	1
Total equity	62,403	59,575	2,828	5
Total liabilities and equity	$3,409,116	$3,386,692	$22,424	1	%

Key Drivers:

As of March 31, 2025 compared to December 31, 2024:

n Investment securities increased primarily due to an increase in purchases of U.S. Treasury securities.

n Mortgage loans held-for-investment increased primarily due to growth in our Single-Family mortgage portfolio.

n Debt increased primarily due to an increase in debt of consolidated trusts driven by growth in our Single-Family mortgage portfolio.


Freddie Mac 1Q 2025 Form 10-Q						9


Management's Discussion and Analysis						Our Portfolios

OUR PORTFOLIOS

Mortgage Portfolio

The table below presents the UPB of our mortgage portfolio by segment.

Table 8 - Mortgage Portfolio


	March 31, 2025			December 31, 2024
(In millions)	Single-Family	Multifamily	Total	Single-Family	Multifamily	Total
Mortgage loans held-for-investment:
By consolidated trusts	$3,034,514	$79,111	$3,113,625	$3,021,161	$70,701	$3,091,862
By Freddie Mac	40,053	11,372	51,425	42,050	16,715	58,765
Total mortgage loans held-for-investment	3,074,567	90,483	3,165,050	3,063,211	87,416	3,150,627
Mortgage loans held-for-sale	2,544	12,176	14,720	2,984	13,265	16,249
Total mortgage loans	3,077,111	102,659	3,179,770	3,066,195	100,681	3,166,876
Mortgage-related guarantees:
Mortgage loans held by nonconsolidated trusts	30,299	353,002	383,301	30,038	355,108	385,146
Other mortgage-related guarantees	7,770	10,839	18,609	7,941	10,846	18,787
Total mortgage-related guarantees	38,069	363,841	401,910	37,979	365,954	403,933
Total mortgage portfolio	$3,115,180	$466,500	$3,581,680	$3,104,174	$466,635	$3,570,809
Guaranteed mortgage-related securities:
Issued by consolidated trusts	$3,047,822	$79,415	$3,127,237	$3,033,506	$70,764	$3,104,270
Issued by nonconsolidated trusts	24,759	316,427	341,186	24,470	317,611	342,081
Total guaranteed mortgage-related securities	$3,072,581	$395,842	$3,468,423	$3,057,976	$388,375	$3,446,351

Investments Portfolio

Our investments portfolio consists of our mortgage-related investments portfolio and other investments portfolio.

Mortgage-Related Investments Portfolio

The Purchase Agreement limits the size of our mortgage-related investments portfolio to a maximum amount of $225 billion. The calculation of mortgage assets subject to the Purchase Agreement cap includes the UPB of mortgage assets and 10% of the notional value of interest-only securities. We are also subject to additional limitations on the size and composition of our mortgage-related investments portfolio pursuant to FHFA guidance. For additional information on the restrictions on our mortgage-related investments portfolio, see the MD&A - Conservatorship and Related Matters section in our 2024 Annual Report.


Freddie Mac 1Q 2025 Form 10-Q						10


Management's Discussion and Analysis						Our Portfolios

The table below presents the details of our mortgage-related investments portfolio.

Table 9 - Mortgage-Related Investments Portfolio


	March 31, 2025			December 31, 2024
(In millions)	Single-Family	Multifamily	Total	Single-Family	Multifamily	Total
Unsecuritized mortgage loans(1)	$42,597	$23,548	$66,145	$45,034	$29,980	$75,014
Mortgage-related securities:
Investment securities	2,980	3,886	6,866	3,136	4,020	7,156
Debt of consolidated trusts	18,203	804	19,007	18,188	634	18,822
Total mortgage-related securities	21,183	4,690	25,873	21,324	4,654	25,978
Mortgage-related investments portfolio	$63,780	$28,238	$92,018	$66,358	$34,634	$100,992
10% of notional amount of interest-only securities			$22,361			$22,495
Mortgage-related investments portfolio for purposes of Purchase Agreement cap			114,379			123,487

(1)Includes $31.7 billion and $30.0 billion of single-family loans that we have purchased from securitization trusts as of March 31, 2025 and December 31, 2024, respectively.

Other Investments Portfolio

The table below presents the details of the carrying value of our other investments portfolio.

Table 10 - Other Investments Portfolio


	March 31, 2025				December 31, 2024
(In millions)	Liquidity and Contingency Operating Portfolio	Custodial Account	Other	Total Other Investments Portfolio	Liquidity and Contingency Operating Portfolio	Custodial Account	Other	Total Other Investments Portfolio
Cash and cash equivalents	$3,734	$951	$105	$4,790	$4,369	$1,055	$110	$5,534
Securities purchased under agreements to resell	93,294	13,588	2,424	109,306	92,787	12,764	2,787	108,338
Non-mortgage related securities(1)	39,684	—	6,195	45,879	37,249	—	5,465	42,714
Other assets(2)	—	—	6,370	6,370	—	—	6,091	6,091
Other investments portfolio	$136,712	$14,539	$15,094	$166,345	$134,405	$13,819	$14,453	$162,677

(1)Primarily consists of U.S. Treasury securities.

(2)Primarily includes LIHTC investments and advances to lenders.


Freddie Mac 1Q 2025 Form 10-Q						11


Management's Discussion and Analysis						Our Business Segments

OUR BUSINESS SEGMENTS

As shown in the table below, we have two reportable segments, which are based on the way we manage our business.


Segment			Description
Single-Family			Reflects results from our purchase, securitization, and guarantee of single-family loans, our investments in single-family loans and mortgage-related securities, the management of Single-Family mortgage credit risk and market risk, and any results of our treasury function that are not allocated to each segment.


Multifamily			Reflects results from our purchase, securitization, and guarantee of multifamily loans, our investments in multifamily loans and mortgage-related securities, and the management of Multifamily mortgage credit risk and market risk.

Segment Net Revenues and Net Income

The charts below show our net revenues and net income by segment.

Segment Net Revenues

(In billions)

Segment Net Income

(In billions)


Freddie Mac 1Q 2025 Form 10-Q						12


Management's Discussion and Analysis			Our Business Segments \| Single-Family

Single-Family

Business Results

The charts, tables, and related discussion below present the business results of our Single-Family segment.

New Business Activity

UPB of Single-Family Loan Purchases and Guarantees by Loan Purpose and Average Estimated Guarantee Fee Rate(1) on New Acquisitions

(UPB in billions) 152

(1)Estimated guarantee fee rate calculations exclude the legislated guarantee fees and include deferred fees recognized over the estimated life of the related loans based on month-end market rates for the month of acquisition.

Number of Families Helped to Own a Home and Average Loan UPB of New Acquisitions

(Loan count in thousands)

Key Drivers:

n 1Q 2025 vs. 1Q 2024

l Both home purchase and refinance volume increased due to expanded market coverage, higher conforming loan limits, and house price appreciation in recent quarters.

l The average loan size of new acquisitions increased due to higher conforming loan limits and house price appreciation in recent quarters.


Freddie Mac 1Q 2025 Form 10-Q						13


Management's Discussion and Analysis			Our Business Segments \| Single-Family

Single-Family Mortgage Portfolio

Single-Family Mortgage Portfolio and Average Estimated Guarantee Fee Rate(1) on Mortgage Portfolio

(UPB in billions) 120

(1)Estimated guarantee fee rate is calculated based on month-end market rates for the month of acquisition and includes deferred fees recognized over the estimated life of the related loans. These calculations exclude the legislated guarantee fees and certain loans, the majority of which are held by VIEs that we do not consolidate. The UPB of these excluded loans was $40 billion as of March 31, 2025.

Single-Family Mortgage Loans

(Loan count in millions) 536

Key Drivers:

n March 31, 2025 vs. March 31, 2024

l Our Single-Family mortgage portfolio was $3.1 trillion at March 31, 2025, up 2% year-over-year. The mortgage portfolio continued to grow at a moderate pace.

l The average loan size of our Single-Family mortgage portfolio increased year-over-year due to higher conforming loan limits and house price appreciation in recent periods, which contributed to new business acquisitions having a larger loan size compared to older vintages that continued to run off.


Freddie Mac 1Q 2025 Form 10-Q						14


Management's Discussion and Analysis			Our Business Segments \| Single-Family

Financial Results

The table below presents the results of operations for our Single-Family segment. See Note 11 for additional information about segment financial results.

Table 11 - Single-Family Segment Financial Results


			Change
(Dollars in millions)	1Q 2025	1Q 2024	$	%
Net interest income	$4,753	$4,488	$265	6%
Non-interest income	165	(14)	179	NM
Net revenues	4,918	4,474	444	10
(Provision) benefit for credit losses	(228)	(120)	(108)	(90)
Non-interest expense	(1,871)	(1,925)	54	3
Income before income tax expense	2,819	2,429	390	16
Income tax expense	(558)	(484)	(74)	(15)
Net income	2,261	1,945	316	16
Other comprehensive income (loss), net of taxes and reclassification adjustments	8	(5)	13	NM
Comprehensive income	$2,269	$1,940	$329	17%

Key Drivers:

n 1Q 2025 vs. 1Q 2024

l Net income of $2.3 billion, up 16% year-over-year.

–Net revenues were $4.9 billion, up 10% year-over-year. Net interest income was $4.8 billion, up 6% year-over-year, primarily driven by continued mortgage portfolio growth and lower funding costs, partially offset by lower yields on short-term investments.

–Provision for credit losses was $0.2 billion for 1Q 2025, primarily driven by a credit reserve build attributable to new acquisitions. The provision for credit losses of $0.1 billion for 1Q 2024 was primarily driven by a credit reserve build attributable to new acquisitions and increasing mortgage interest rates.


Freddie Mac 1Q 2025 Form 10-Q						15


Management's Discussion and Analysis						Our Business Segments \| Multifamily

Multifamily

Business Results

The charts, tables, and related discussion below present the business results of our Multifamily segment.

New Business Activity and Securitization Activity

New Business Activity and Units Financed(1)

(UPB in billions)

(1) Includes rental units financed by supplemental loans.

New Securitization Activity(2)

(UPB in billions) 300

(2) Excludes resecuritizations.

Key Drivers:

n 1Q 2025 vs. 1Q 2024

l While the UPB of our new business activity increased 11% year-over-year, both periods were adversely impacted by the high mortgage interest rate environment. Approximately 65% of this activity, based on UPB, was mission-driven affordable housing, exceeding FHFA's minimum requirement of 50%.

l Total securitization issuance UPB increased 45% year-over-year, driven by a larger average securitization pipeline in 1Q 2025 compared to 1Q 2024.

l Fully guaranteed securitization issuance UPB increased, representing a larger percentage of total securitization issuance UPB in 1Q 2025 compared to 1Q 2024.

n Our index lock agreements and outstanding commitments to purchase or guarantee multifamily assets were $16.2 billion and $15.9 billion as of March 31, 2025 and March 31, 2024, respectively.


Freddie Mac 1Q 2025 Form 10-Q						16


Management's Discussion and Analysis						Our Business Segments \| Multifamily

Multifamily Mortgage Portfolio and Guarantee Exposure

Mortgage Portfolio

(UPB in billions)

Guarantee Exposure

(UPB in billions) 475

Key Drivers:

n March 31, 2025 vs. March 31, 2024

l Our mortgage portfolio increased 5% year-over-year, driven by our new business activity.

l Our guarantee exposure increased by 6% year-over-year, as our new mortgage-related security guarantees outpaced paydowns.

l The average guarantee fee rate on our guarantee exposures increased year-over-year, primarily due to continued growth of fully guaranteed securitization issuances for which we charge higher guarantee fee rates.

n In addition to our Multifamily mortgage portfolio, we have investments in LIHTC fund partnerships with carrying values totaling $4.3 billion as of both March 31, 2025 and December 31, 2024.


Freddie Mac 1Q 2025 Form 10-Q						17


Management's Discussion and Analysis						Our Business Segments \| Multifamily

Financial Results

The table below presents the results of operations for our Multifamily segment. See Note 11 for additional information about segment financial results.

Table 12 - Multifamily Segment Financial Results


			Change
(Dollars in millions)	1Q 2025	1Q 2024	$	%
Net interest income	$349	$271	$78	29	%
Non-interest income	585	1,012	(427)	(42)



Net revenues	934	1,283	(349)	(27)
(Provision) benefit for credit losses	(52)	(61)	9	15
Non-interest expense	(217)	(197)	(20)	(10)





Income before income tax expense	665	1,025	(360)	(35)
Income tax expense	(132)	(204)	72	35
Net income	533	821	(288)	(35)
Other comprehensive income (loss), net of taxes and reclassification adjustments	26	(20)	46	NM
Comprehensive income	$559	$801	($242)	(30)	%

Key Drivers:

n 1Q 2025 vs. 1Q 2024

l Net income of $0.5 billion, down 35% year-over-year.

–Net revenues were $0.9 billion, down 27% year-over-year.

◦Net interest income was $0.3 billion, up 29% year-over-year, primarily driven by an increase in the volume of fully guaranteed securitizations.

◦Non-interest income was $0.6 billion, down 42%, primarily driven by lower revenues from held-for-sale loan purchase and securitization activities, impacts from interest-rate risk management activities, and less favorable fair value changes from prepayment rates.


Freddie Mac 1Q 2025 Form 10-Q						18


Management's Discussion and Analysis						Risk Management

RISK MANAGEMENT

To achieve our mission, we take risks as an integral part of our business activities. We are exposed to the following key types of risk: credit risk, market risk, liquidity risk, operational risk, compliance risk, legal risk, strategic risk, and reputation risk.

Credit Risk

Allowance for Credit Losses

The tables below present a summary of the changes in our allowance for credit losses and key allowance for credit losses ratios.

Table 13 - Allowance for Credit Losses Activity


	1Q 2025						1Q 2024
(Dollars in millions)	Single-Family		Multifamily		Total		Single-Family		Multifamily		Total
Allowance for credit losses:
Beginning balance	$6,691		$548		$7,239		$6,402		$447		$6,849
Provision (benefit) for credit losses	228		52		280		120		61		181
Charge-offs	(191)		(1)		(192)		(123)		—		(123)
Recoveries collected	27		1		28		26		—		26
Net charge-offs	(164)		—		(164)		(97)		—		(97)
Other(1)	96		—		96		83		—		83
Ending balance	$6,851		$600		$7,451		$6,508		$508		$7,016

Average loans outstanding during the period(2)	$3,101,599		$86,445		$3,188,044		$3,030,531		$58,504		$3,089,035
Net charge-offs to average loans outstanding	0.01	%	—	%	0.01	%	—	%	—	%	—	%

Components of ending balance of allowance for credit losses:
Mortgage loans held-for-investment	$6,543		$431		$6,974		$6,189		$381		$6,570


Other(3)	308		169		477		319		127		446
Total ending balance	$6,851		$600		$7,451		$6,508		$508		$7,016

(1)Primarily includes capitalization of past due interest related to non-accrual loans that received payment deferral plans and loan modifications.

(2)Based on amortized cost basis of mortgage loans held-for-investment for which we have not elected the fair value option.

(3)Includes allowance for credit losses related to advances of pre-foreclosure costs and off-balance sheet credit exposures.

Table 14 - Allowance for Credit Losses Ratios


	March 31, 2025						December 31, 2024
(Dollars in millions)	Single-Family		Multifamily		Total		Single-Family		Multifamily		Total
Allowance for credit losses ratios:
Allowance for credit losses(1) to total loans outstanding	0.21	%	0.49	%	0.22	%	0.21	%	0.46	%	0.21	%
Non-accrual loans to total loans outstanding	0.53		0.24		0.52		0.51		0.15		0.50
Allowance for credit losses to non-accrual loans	39.73		208.21		41.83		40.11		314.40		42.25
Balances:
Allowance for credit losses on mortgage loans held-for-investment	$6,543		$431		$6,974		$6,381		$393		$6,774
Total loans outstanding(2)	3,103,245		87,449		3,190,694		3,092,137		84,554		3,176,691
Non-accrual loans(2)	16,467		207		16,674		15,908		125		16,033

(1)Represents allowance for credit losses on mortgage loans held-for-investment.

(2)Based on amortized cost basis of mortgage loans held-for-investment for which we have not elected the fair value option.


Freddie Mac 1Q 2025 Form 10-Q						19


Management's Discussion and Analysis						Risk Management

Single-Family Mortgage Credit Risk

Maintaining Prudent Eligibility Standards and Quality Control Practices and Managing Seller/Servicer Performance

Loan Purchase Credit Characteristics

We monitor and evaluate market conditions that could affect the credit quality of our single-family loan purchases. Additionally, when managing our new acquisitions, we consider our risk limits and guidance from FHFA and capital requirements under the ERCF. This may affect the volume and characteristics of our loan acquisitions.

The charts below show the credit profile of the single-family loans we purchased.

Weighted Average Original LTV Ratio 148

Weighted Average Original Credit Score(1) 191

(1)Weighted average original credit score is generally based on three credit bureaus (Equifax, Experian, and TransUnion).

Weighted Average Original DTI Ratio 348


Freddie Mac 1Q 2025 Form 10-Q						20


Management's Discussion and Analysis						Risk Management

The table below contains additional information about the single-family loans we purchased.

Table 15 - Single-Family New Business Activity


	1Q 2025			1Q 2024
(Dollars in millions)	Amount	% of Total		Amount	% of Total
20- and 30-year, amortizing fixed-rate	$72,772	93	%	$59,091	95	%
15-year or less, amortizing fixed-rate	4,434	6		2,278	4
Adjustable-rate	440	1		900	1
Total	$77,646	100	%	$62,269	100	%

Percentage of purchases
DTI ratio > 45%		30	%		28	%
Original LTV ratio > 90%		23			25
Transaction type:
Guarantor swap		71			66
Cash window		29			34

Property type:
Detached single-family houses and townhouses		92			91
Condominium or co-op		8			9
Occupancy type:
Primary residence		93			93
Second home		2			2
Investment property		5			5
Loan purpose:
Purchase		79			86
Cash-out refinance		11			8
Other refinance		10			6

Transferring Credit Risk to Third-Party Investors

We engage in various credit enhancement arrangements to reduce our credit risk exposure on our single-family loans.

Single-Family Mortgage Portfolio Newly Acquired Credit Enhancements

The table below provides the UPB of the mortgage loans acquired during the periods presented that were covered by primary mortgage insurance, the UPB of the mortgage loans covered by CRT transactions we entered into during the periods presented, and maximum coverage related to these newly acquired credit enhancements. In recent periods, we have changed our business strategy and revised our CRT transactions by retaining higher levels of initial losses. As a result, the benefits provided by these revised CRT transactions may be lower than those provided by the earlier CRT transactions even if the maximum coverage provided by the more recent CRT transactions is similar to that provided by the earlier CRT transactions.

Table 16 - Single-Family Mortgage Portfolio Newly Acquired Credit Enhancements


	1Q 2025		1Q 2024
(In millions)	UPB(1)(2)	Maximum Coverage(3)(4)	UPB(1)(2)	Maximum Coverage(3)(4)
Primary mortgage insurance	$29,454	$7,740	$25,135	$6,616

CRT transactions:
STACR	37,961	1,296	41,402	1,284
ACIS	24,238	783	15,523	559
Other	885	158	692	107

Total CRT issuance	$63,084	$2,237	$57,617	$1,950


Freddie Mac 1Q 2025 Form 10-Q						21


Management's Discussion and Analysis						Risk Management

(1) Represents the UPB of the mortgage assets, reference pool, or securitization trust, as applicable.

(2) The primary mortgage insurance and CRT transactions presented in this table are not mutually exclusive as a single loan may be covered by both primary mortgage insurance and CRT transactions.

(3) For primary mortgage insurance, represents the coverage as of the related loan acquisition. For STACR transactions, represents the balance held by third parties at issuance. For ACIS transactions, represents the aggregate limit of insurance purchased from third parties at issuance.

(4) The credit risk positions to which the maximum coverage applies may vary on a transaction-by-transaction basis.

Single-Family Mortgage Portfolio Credit Enhancement Coverage Outstanding

The table below provides information on the UPB and maximum coverage associated with credit-enhanced loans in our Single-Family mortgage portfolio.

Table 17 - Single-Family Mortgage Portfolio Credit Enhancement Coverage Outstanding


	March 31, 2025
(Dollars in millions)	UPB(1)	% of Portfolio		Maximum Coverage(2)(3)
Primary mortgage insurance(4)	$661,861	21	%	$175,838
STACR	1,212,945	39		28,053
ACIS	738,229	24		16,587
Other	39,145	1		10,614
Less: UPB with multiple credit enhancements and other reconciling items(5)	(725,320)	(23)		—
Single-Family mortgage portfolio - credit-enhanced	1,926,860	62		231,092
Single-Family mortgage portfolio - non-credit-enhanced	1,188,320	38		N/A
Total	$3,115,180	100	%	$231,092


	December 31, 2024
(Dollars in millions)	UPB(1)	% of Portfolio		Maximum Coverage(2)(3)
Primary mortgage insurance(4)	$658,104	21	%	$174,445
STACR	1,196,740	39		28,471
ACIS	754,489	24		16,474
Other	38,951	1		10,643
Less: UPB with multiple credit enhancements and other reconciling items(5)	(733,818)	(23)		—
Single-Family mortgage portfolio - credit-enhanced	1,914,466	62		230,033
Single-Family mortgage portfolio - non-credit-enhanced	1,189,708	38		N/A
Total	$3,104,174	100	%	$230,033

(1) Represents the current UPB of the mortgage assets, reference pool, or securitization trust, as applicable.

(2) For STACR transactions, represents the outstanding balance held by third parties. For ACIS transactions, represents the remaining aggregate limit of insurance purchased from third parties.

(3) The credit risk positions to which the maximum coverage applies may vary on a transaction-by-transaction basis.

(4) Amounts exclude certain loans for which we do not control servicing, as the coverage information for these loans is not readily available to us.

(5) Other reconciling items primarily include timing differences in reporting cycles between the UPB of certain CRT transactions and the UPB of the underlying loans.

Credit Enhancement Coverage Characteristics

The table below provides the serious delinquency rates for the credit-enhanced and non-credit-enhanced loans in our Single-Family mortgage portfolio. The credit-enhanced categories are not mutually exclusive as a single loan may be covered by both primary mortgage insurance and other credit enhancements.

Table 18 - Serious Delinquency Rates for Credit-Enhanced and Non-Credit-Enhanced Loans in Our Single-Family Mortgage Portfolio


	March 31, 2025				December 31, 2024
(% of portfolio based on UPB)(1)	% of Portfolio(2)		SDQ Rate		% of Portfolio(2)		SDQ Rate
Credit-enhanced:
Primary mortgage insurance	21	%	1.13	%	21	%	1.12	%
CRT and other	55		0.65		54		0.66
Non-credit-enhanced	38		0.43		38		0.43
Total	N/A		0.59		N/A		0.59


Freddie Mac 1Q 2025 Form 10-Q						22


Management's Discussion and Analysis						Risk Management

(1)Excludes loans underlying certain securitization products for which loan-level data is not available.

(2)Percentages do not total to 100% as a single loan may be included in multiple line items.

Credit Enhancement Recoveries

Our expected recovery receivable from freestanding credit enhancements was $0.1 billion as of both March 31, 2025 and December 31, 2024.

Monitoring Loan Performance and Characteristics

We review loan performance, including delinquency statistics and related loan characteristics, in conjunction with housing market and economic conditions, to assess credit risk when estimating our allowance for credit losses.

Loan Characteristics and Serious Delinquency Rates

The table below contains details of the characteristics and serious delinquency rates of the loans in our Single-Family mortgage portfolio.

Table 19 - Credit Quality Characteristics and Serious Delinquency Rates of Our Single-Family Mortgage Portfolio(1)


	March 31, 2025
(Dollars in millions)	UPB	Original Credit Score(2)	Current Credit Score(2)(3)	Original LTV Ratio		Current LTV Ratio		SDQ Rate
Single-Family mortgage portfolio year of origination:
2025	$44,125	757	757	77	%	77	%	—	%
2024	334,335	754	749	78		75		0.20
2023	243,876	750	748	79		72		0.78
2022	392,146	746	743	76		64		0.98
2021	896,566	752	755	71		50		0.42
2020 and prior	1,204,132	750	760	73		38		0.64
Total	$3,115,180	751	754	74		52		0.59


	December 31, 2024
(Dollars in millions)	UPB	Original Credit Score (2)	Current Credit Score(2)(3)	Original LTV Ratio		Current LTV Ratio		SDQ Rate
Single-Family mortgage portfolio year of origination:
2024	$309,757	754	749	78	%	76	%	0.12	%
2023	250,712	751	749	79		72		0.68
2022	399,741	746	743	76		65		0.95
2021	912,364	752	756	71		50		0.42
2020	665,137	761	768	71		43		0.25
2019 and prior	566,463	738	752	75		33		0.91
Total	$3,104,174	751	755	74		52		0.59

(1)Excludes certain credit quality characteristics and serious delinquency rate information on loans underlying certain securitization products for which data was not available.

(2)Original credit score is generally based on three credit bureaus (Equifax, Experian, and TransUnion). Current credit score is based on Experian only.

(3)Credit scores for certain recently acquired loans may not have been updated by the credit bureau since the loan acquisition and therefore the original credit scores also represent the current credit scores.


Freddie Mac 1Q 2025 Form 10-Q						23


Management's Discussion and Analysis						Risk Management

The table below presents the combination of credit score and CLTV ratio attributes of loans in our Single-Family mortgage portfolio.

Table 20 - Single-Family Mortgage Portfolio Attribute Combinations(1)


	March 31, 2025
	CLTV ≤ 60				CLTV > 60 to 80				CLTV > 80 to 90				CLTV > 90 to 100				CLTV > 100			All Loans
Current credit score(2)(3)	% of Portfolio		SDQ Rate		% of Portfolio		SDQ Rate		% of Portfolio		SDQ Rate		% of Portfolio		SDQ Rate		% of Portfolio		SDQ Rate	% of Portfolio		SDQ Rate
740 and above	50	%	0.04	%	16	%	0.06	%	4	%	0.09	%	2	%	0.10	%	—	%	NM	72	%	0.05	%
700 to 739	8		0.22		3		0.23		1		0.25		1		0.21		—		NM	13		0.22
680 to 699	2		0.43		1		0.40		1		0.51		—		NM		—		NM	4		0.43
660 to 679	2		0.68		1		0.65		—		NM		—		NM		—		NM	3		0.68
620 to 659	2		1.49		1		1.59		—		NM		—		NM		—		NM	3		1.51
Less than 620	3		7.63		1		10.33		1		12.19		—		NM		—		NM	5		8.54
Total	67	%	0.50		23	%	0.83		7	%	1.03		3	%	0.84		—	%	NM	100	%	0.59


	December 31, 2024
	CLTV ≤ 60				CLTV > 60 to 80				CLTV > 80 to 90				CLTV > 90 to 100				CLTV > 100			All Loans
Current credit score(2)(3)	% of Portfolio		SDQ Rate		% of Portfolio		SDQ Rate		% of Portfolio		SDQ Rate		% of Portfolio		SDQ Rate		% of Portfolio		SDQ Rate	% of Portfolio		SDQ Rate
740 and above	50	%	0.04	%	16	%	0.05	%	4	%	0.09	%	2	%	0.10	%	—	%	NM	72	%	0.05	%
700 to 739	9		0.22		2		0.22		2		0.25		1		0.18		—		NM	14		0.22
680 to 699	2		0.45		2		0.40		—		NM		—		NM		—		NM	4		0.44
660 to 679	2		0.73		1		0.66		—		NM		—		NM		—		NM	3		0.71
620 to 659	2		1.60		1		1.62		—		NM		—		NM		—		NM	3		1.60
Less than 620	3		7.95		1		10.62		—		NM		—		NM		—		NM	4		8.80
Total	68	%	0.51		23	%	0.82		6	%	1.00		3	%	0.75		—	%	NM	100	%	0.59

(1) Excludes loans underlying certain securitization products for which current credit score is not available.

(2) Current credit score is based on the credit bureau Experian only.

(3) Credit scores for certain recently acquired loans may not have been updated by the credit bureau since the loan acquisition and therefore the current credit scores represent the original credit scores.

Geographic Concentrations

We purchase mortgage loans from across the U.S. but do not purchase an equal number of loans from each geographic area, leading to concentrations of credit risk in certain geographic areas. Local economic and other conditions can affect the borrower's ability to repay and the value of the underlying collateral. Property insurance markets in certain geographic areas, including areas with high risk of natural disaster events, have observed increases in property insurance premiums and reduction in the availability of coverage in recent years. In addition, certain states and municipalities have passed or may pass laws that limit our ability to foreclose or evict and make it more difficult and costly to manage our risk.

See Note 12 for more information about the geographic distribution of our Single-Family mortgage portfolio.


Freddie Mac 1Q 2025 Form 10-Q						24


Management's Discussion and Analysis						Risk Management

Delinquency Rates

We report Single-Family delinquency rates based on the number of loans in our Single-Family mortgage portfolio that are past due as reported to us by our servicers as a percentage of the total number of loans in our Single-Family mortgage portfolio.

The chart below presents the delinquency rates of mortgage loans in our Single-Family mortgage portfolio.

The percentage of loans that were one month past due was flat, while the percentage of loans that were two months past due increased, as of March 31, 2025 compared to March 31, 2024. The percentage of loans one month past due can be volatile due to seasonality, whether the last day of the period falls on a weekend, and other factors that may not be indicative of default. As a result, the percentage of loans two months past due tends to be a better early performance indicator than the percentage of loans one month past due.

Our Single-Family serious delinquency rate increased to 0.59% as of March 31, 2025, compared to 0.52% as of March 31, 2024, primarily due to a higher serious delinquency rate for loans originated during 2022 and later as well as lingering impacts from hurricanes that occurred in late 2024. See Note 3 for additional information on the payment status of our single-family mortgage loans.

Engaging in Loss Mitigation Activities

We offer a variety of borrower assistance programs. For purposes of the disclosure below related to loss mitigation activities, we generally exclude loans for which we do not control servicing. See Note 3 for additional information on our loss mitigation activities. For information on our refinance programs, see the MD&A - Our Business Segments - Single-Family and MD&A - Risk Management - Credit Risk - Single-Family Mortgage Credit Risk sections in our 2024 Annual Report.

Loan Workout Activities

We continue to help families retain their homes or otherwise avoid foreclosure through loan workouts. The table below provides details about the single-family loan workout activities that were completed during the periods presented.

Table 21 - Single-Family Completed Loan Workout Activity


	1Q 2025		1Q 2024
(UPB in millions, loan count in thousands)	UPB	Loan Count	UPB	Loan Count
Payment deferral plans	$2,874	11	$2,670	10
Loan modifications	1,894	7	1,382	6
Forbearance plans and other(1)	1,640	7	1,180	5
Total	$6,408	25	$5,232	21


Freddie Mac 1Q 2025 Form 10-Q						25


Management's Discussion and Analysis						Risk Management

(1) The forbearance data is limited to loans in forbearance that are past due based on the loans' original contractual terms and excludes loans included in certain legacy transactions, as the forbearance data for such loans is either not reported to us by the servicers or is otherwise not readily available to us. Other includes repayment plans and foreclosure alternatives.

Completed loan workout activity includes forbearance plans where borrowers fully reinstated the loan to current status during or at the end of the forbearance period, payment deferral plans, loan modifications, successfully completed repayment plans, short sales, and deeds in lieu of foreclosure. Completed loan workout activity excludes active loss mitigation activity that was ongoing and had not been completed as of the end of the period, such as forbearance plans that had been initiated but not completed and trial period modifications. There were approximately 19,000 loans in active forbearance plans and approximately 17,000 loans in other active loss mitigation activity as of March 31, 2025.

Multifamily Mortgage Credit Risk

Completing Our Own Underwriting, Credit, and Legal Review for New Business Activity

Our underwriting standards focus on the LTV ratio and DSCR, which estimates the value of the collateral and a borrower's ability to repay the loan using the secured property's cash flows, after expenses. The charts below provide the weighted average original LTV ratio and original DSCR for our new business activity.

Weighted Average Original LTV Ratio 150

Weighted Average Original DSCR(1)

(1) Assumes monthly payments that reflect amortization of principal.

Transferring Credit Risk to Third-Party Investors

To reduce our credit risk exposure, we engage in a variety of CRT activities through which we have transferred a substantial amount of the expected and stressed credit risk on the Multifamily mortgage portfolio, thereby reducing our overall credit risk exposure and required capital.


Freddie Mac 1Q 2025 Form 10-Q						26


Management's Discussion and Analysis						Risk Management

Multifamily Mortgage Portfolio CRT Issuance

While we continue to obtain credit enhancement through subordination, we have increased our use of MSCR and MCIP transactions as a result of larger volumes of fully-guaranteed securitizations. Through MSCR and MCIP transactions, we generally retain first loss exposure, while transferring a portion of the credit risk on our mortgage portfolio.

The table below provides the UPB of the multifamily mortgage loans covered by CRT transactions issued during the periods presented as well as the maximum coverage provided by those transactions.

Table 22 - Multifamily Mortgage Portfolio CRT Issuance


	1Q 2025		1Q 2024
(In millions)	UPB(1)	Maximum Coverage(2)(3)	UPB(1)	Maximum Coverage(2)(3)
Subordination	$6,604	$384	$6,598	$399
MSCR	11,574	279	—	—
MCIP	11,574	215	—	—
Lender risk-sharing	147	8	—	—
Less: UPB with more than one type of CRT	(11,574)	—	—	—
Total CRT issuance	$18,325	$886	$6,598	$399

(1) Represents the UPB of the assets included in the associated reference pool or securitization trust, as applicable.

(2) For subordination, represents the UPB of the securities that are held by third parties at issuance and are subordinate to the securities we guarantee. For MSCR transactions, represents the UPB of securities held by third parties at issuance. For MCIP transactions, represents the aggregate limit of insurance purchased from third parties at issuance. For lender risk-sharing, represents the maximum amount of loss recovery that is available subject to the terms of counterparty agreements at issuance.

(3) The credit risk positions to which the maximum coverage applies may vary on a transaction-by-transaction basis.

Multifamily Mortgage Portfolio Credit Enhancement Coverage Outstanding

While we have obtained various forms of credit protection in connection with the acquisition, guarantee, and/or securitization of a loan or group of loans, our principal credit enhancement type has been subordination, which is created through our senior subordinate securitization transactions. Our maximum coverage provided by subordination in nonconsolidated VIEs was $36.3 billion and $37.4 billion, as of March 31, 2025 and December 31, 2024, respectively.

The table below presents the UPB and delinquency rates for both credit-enhanced and non-credit-enhanced loans underlying our Multifamily mortgage portfolio.

Table 23 - Credit-Enhanced and Non-Credit-Enhanced Loans Underlying Our Multifamily Mortgage Portfolio


	March 31, 2025			December 31, 2024
(Dollars in millions)	UPB	Delinquency Rate		UPB	Delinquency Rate
Credit-enhanced:
Subordination	$350,519	0.53	%	$352,566	0.45	%
MSCR/MCIP	73,781	0.24		62,870	0.25
Other	9,780	0.67		9,737	0.82
Total credit-enhanced	434,080	0.49		425,173	0.43
Non-credit-enhanced	32,420	0.17		41,462	0.15
Total	$466,500	0.46		$466,635	0.40

The Multifamily delinquency rate increased to 0.46% at March 31, 2025, primarily driven by an increase in delinquent floating rate loans including small balance loans that are in their floating rate period. As of March 31, 2025, 98% of the delinquent loans in the Multifamily mortgage portfolio have credit enhancement coverage.


Freddie Mac 1Q 2025 Form 10-Q						27


Management's Discussion and Analysis						Risk Management

The table below contains details on the loans underlying our Multifamily mortgage portfolio that are not credit-enhanced.

Table 24 - Credit Quality of Our Multifamily Mortgage Portfolio Without Credit Enhancement


	March 31, 2025			December 31, 2024
(Dollars in millions)	UPB	Delinquency Rate			UPB	Delinquency Rate
Mortgage loans held-for-sale	$10,418	—	%		$11,856	—	%
Mortgage loans held-for-investment:
Held by Freddie Mac	8,958	0.60			14,589	0.33
Held by consolidated trusts	9,659	—			12,125	0.11
Other mortgage-related guarantees	3,385	—			2,892	—
Total	$32,420	0.17			$41,462	0.15

Credit Enhancement Recoveries

Our expected recovery receivable from freestanding credit enhancements was $0.1 billion as of both March 31, 2025 and December 31, 2024.

Market Risk

Overview

Our business segments have embedded exposure to market risk, which is the economic risk associated with adverse changes in interest rates, volatility, and spreads. Market risk can adversely affect future cash flows, or economic value, as well as earnings and net worth. The primary sources of interest-rate risk are from our investments in mortgage-related assets, non-mortgage assets (including Treasuries), the debt we issue to fund these assets, and our Single-Family guarantees.

Interest-Rate Risk

Our primary interest-rate risk measures are duration gap and Portfolio Value Sensitivity (PVS). Duration gap measures the difference in price sensitivity to interest rate changes between our financial assets and liabilities and is expressed in months relative to the value of assets. PVS is an estimate of the change in the present value of the cash flows of our financial assets and liabilities from an instantaneous shock to interest rates, assuming spreads are held constant and no rebalancing actions are undertaken. PVS is measured in two ways, one measuring the estimated sensitivity of our portfolio's value to a 50 bps parallel movement in interest rates (PVS-L) and the other to a nonparallel movement (PVS-YC), resulting from a 25 bps change in slope of the yield curve. While we believe that duration gap and PVS are useful risk management tools, they should be understood as estimates rather than as precise measurements.

Prior to 1Q 2025, our interest-rate risk limits required asset duration to match liability duration, net of derivatives. When capital increased, excess net assets were invested in investments with little to no duration, such as overnight reverse repurchase agreements, increasing our earnings sensitivity to short-term interest rates. Beginning in 1Q 2025, we updated our interest-rate risk limits to allow for longer-term investments, reducing our earnings sensitivity to changes in short-term interest rates. We continue to manage interest-rate risk related to financial instruments primarily funded by debt as before, targeting a low level of interest rate exposure as measured by our models. For all other financial instruments, we manage interest-rate risk to a target duration, which reduces our long-term earnings volatility related to changes in overnight rates. Such financial instruments may include treasuries, mortgage related securities, repurchase agreements, and derivatives.

The tables below provide our duration gap, estimated point-in-time, and minimum and maximum PVS-L and PVS-YC results, and an average of the daily values and standard deviation. The table below also provides PVS-L estimated present value (gains) losses assuming an immediate 100 bps shift in the yield curve. The interest-rate sensitivity of a mortgage portfolio varies across a wide range of interest rates.


Freddie Mac 1Q 2025 Form 10-Q						28


Management's Discussion and Analysis						Risk Management

Table 25 - Duration Gap and PVS-YC and PVS-L Results Assuming Shifts of the Yield Curve


	March 31, 2025				December 31, 2024
	Duration Gap	PVS-YC	PVS-L		Duration Gap	PVS-YC	PVS-L
(Dollars in millions, duration gap in months)		25 bps	50 bps	100 bps		25 bps	50 bps	100 bps








Interest-rate risk related to:
Financial instruments primarily funded by debt	0.3	$1	($8)	($83)	0.3	$—	$6	($28)






All other financial instruments(1)	8.1	23	234	482	0.2	1	5	10


Total	2.0	$22	$226	$399	0.3	$2	$11	($18)
PVS		$22	$226	$399		$2	$11	$—

(1)The UPB was $67 billion as of March 31, 2025 and $64 billion as of December 31, 2024.

Table 26 - Duration Gap and PVS Results


	1Q 2025			1Q 2024
(Dollars in millions, duration gap in months)	Duration Gap	PVS-YC 25 bps	PVS-L 50 bps	Duration Gap	PVS-YC 25 bps	PVS-L 50 bps
Average	0.8	$9	$86	0.1	$2	$—
Minimum	—	1	—	(0.1)	—	—
Maximum	2.0	24	228	0.2	5	5
Standard deviation	0.6	7	81	0.1	1	1

When managing interest rate risk related to financial instruments not funded primarily by debt, we also consider the overall income sensitivity attributable to these instruments, which we believe is an appropriate measure as we are targeting duration to reduce our long-term income volatility. We estimate income attributable to these instruments over a 12- month period, assuming the balance of these financial instruments stays constant. The estimate includes coupon interest income and expense, amortization income and expense, fair value changes, and the impact from our overall hedge accounting program. We then parallel shock rates up and down 100 bps to determine the volatility in income.

The table below presents the change in estimated income post-tax due to the impact of a parallel shift in rates on financial instruments not primarily funded by debt over the next 12 months relative to the baseline scenario.

Table 27 - Income Sensitivity on Financial Instruments Not Primarily Funded by Debt


(In millions)	March 31, 2025	March 31, 2024
+100 bps rate shift	$478	$434
- 100 bps rate shift	(536)	(434)

Derivatives enable us to reduce our economic interest-rate risk exposure as we continue to align our derivative portfolio with the changing duration of our economically hedged assets and liabilities. The table below shows that the PVS-L risk levels, assuming a 50 bps shift in the yield curve for the periods presented, would have been higher if we had not used derivatives.

Table 28 - PVS-L Results Before Derivatives and After Derivatives


(In millions)	March 31, 2025	December 31, 2024
PVS-L (50 bps):
Before derivatives	$1,939	$2,006
After derivatives	226	11
Effect of Derivatives	(1,713)	(1,995)

GAAP Fair Value Sensitivity to Market Risk

The GAAP accounting treatment for our financial assets and liabilities (i.e., some are measured at amortized cost, while others are measured at fair value) creates variability in our GAAP earnings when interest rates and spreads change. We manage this variability of GAAP earnings, which may not reflect the economics of our business, using fair value hedge accounting. See MD&A - Consolidated Results of Operations and MD&A - Our Business Segments for additional information on the effect of changes in interest rates and market spreads on our financial results.


Freddie Mac 1Q 2025 Form 10-Q						29


Management's Discussion and Analysis						Risk Management

Interest Rate Related GAAP Fair Value Sensitivity

Our GAAP financial results are subject to significant earnings variability from period to period based on changes in market conditions.

In an effort to reduce our GAAP earnings variability and better align our GAAP results with the economics of our business, we elect to use hedge accounting for certain single-family mortgage loans and certain debt instruments. See Note 8 for additional information on hedge accounting.

GAAP Fair Value Sensitivity to Changes in Interest Rates

We evaluate a range of interest rate scenarios to determine the sensitivity of our earnings due to changes in interest rates and to determine our fair value hedge accounting strategies. The interest rate scenarios evaluated include parallel shifts in the yield curve in which interest rates increase or decrease by 100 bps, non-parallel shifts in the yield curve in which long-term interest rates increase or decrease by 100 bps, and non-parallel shifts in the yield curve in which short-term and medium-term interest rates increase or decrease by 100 bps. This evaluation identifies the net effect on comprehensive income from changes in fair value attributable to changes in interest rates for financial instruments measured at fair value, including the effects of fair value hedge accounting, for each of the identified scenarios. This evaluation does not include the net effect on comprehensive income from interest-rate sensitive items that are not measured at fair value (e.g., amortization of mortgage loan premiums and discounts, changes in fair value of held-for-sale mortgage loans for which we have not elected the fair value option, etc.) or from changes in our future contractual net interest income due to repricing of our interest-bearing assets and liabilities. The before-tax results of this evaluation are shown in the table below.

Table 29 - GAAP Fair Value Sensitivity to Changes in Interest Rates


(In millions)	March 31, 2025	March 31, 2024
Interest rate scenarios(1)
Parallel yield curve shifts:
+100 bps	$42	$10
-100 bps	(42)	(10)
Non-parallel yield curve shifts - long-term interest rates:
+100 bps	417	282
-100 bps	(417)	(282)
Non-parallel yield curve shifts - short-term and medium-term interest rates:
+100 bps	(375)	(272)
-100 bps	375	272

(1)The earnings sensitivity presented is calculated using the change in interest rates and net effective duration exposure.

The actual effect of changes in interest rates on our comprehensive income in any given period may vary based on a number of factors, including, but not limited to, the composition of our assets and liabilities, the actual changes in interest rates that are realized at different terms along the yield curve, and the effectiveness of our hedge accounting strategies. Even if implemented properly, our hedge accounting programs may not be effective in reducing earnings volatility, and our hedges may fail in any given future period, which could expose us to significant earnings variability in that period.


Freddie Mac 1Q 2025 Form 10-Q						30


Management's Discussion and Analysis						Liquidity and Capital Resources

LIQUIDITY AND CAPITAL RESOURCES

Our business activities require that we maintain adequate liquidity to meet our financial obligations as they come due and to meet the needs of customers in a timely and cost-efficient manner. We also must maintain adequate capital resources to avoid being placed into receivership by FHFA.

Liquidity

Primary Sources of Liquidity

The table below lists the sources of our liquidity, the balances as of the dates shown, and a brief description of their importance to Freddie Mac.

Table 30 - Liquidity Sources

(In millions)

March 31, 2025(1)

December 31, 2024(1)

Description

Other Investments Portfolio - Liquidity and Contingency Operating Portfolio

$136,712

$134,405

The liquidity and contingency operating portfolio, included within our other investments portfolio, is primarily used for short-term liquidity management.

Mortgage-Related Investments Portfolio

24,075

24,144

The portion of our mortgage-related securities that can be pledged or sold for liquidity purposes. The amount of cash we may be able to raise from these activities may be substantially less than the balance.

(1)Represents carrying value for the liquidity and contingency operating portfolio, included within our other investments portfolio, and UPB for the portion of our mortgage-related securities that can be pledged as collateral or sold for liquidity purposes.

Other Investments Portfolio

Our other investments portfolio is important to our cash flow, collateral management, asset and liability management, and ability to provide liquidity and stability to the mortgage market.

Our liquidity and contingency operating portfolio primarily includes securities purchased under agreements to resell and non-mortgage-related securities. Our non-mortgage-related securities consist of U.S. Treasury securities and other investments that we could sell to provide us with an additional source of liquidity to fund our business operations. We also maintain non-interest-bearing deposits at the Federal Reserve Bank of New York and interest-bearing deposits at commercial banks. Our interest-bearing deposits at commercial banks totaled $4.4 billion and $5.1 billion as of March 31, 2025 and December 31, 2024, respectively. See MD&A - Our Portfolios - Investments Portfolio - Other Investments Portfolio for additional information about our other investments portfolio.

Mortgage-Related Investments Portfolio

We invest principally in mortgage-related investments, certain categories of which are largely unencumbered. Our primary source of liquidity among these mortgage assets is our holdings of agency securities. See MD&A - Our Portfolios - Investments Portfolio - Mortgage-Related Investments Portfolio for additional information about our mortgage loans and mortgage-related securities.


Freddie Mac 1Q 2025 Form 10-Q						31


Management's Discussion and Analysis						Liquidity and Capital Resources

Primary Sources of Funding

The table below lists the sources of our funding, the balances as of the dates shown, and a brief description of their importance to Freddie Mac.

Table 31 - Funding Sources


(In millions)	March 31, 2025(1)	December 31, 2024(1)	Description
Debt of Freddie Mac	$179,853	$182,008	Debt of Freddie Mac is used to fund our business activities.
Debt of Consolidated Trusts	3,145,248	3,122,941	Debt of consolidated trusts is used primarily to fund our Single-Family guarantee activities. This type of debt is principally repaid by the cash flows of the associated mortgage loans. As a result, our repayment obligation is limited to amounts paid pursuant to our guarantee of principal and interest and to purchase modified or seriously delinquent loans from the trusts.

(1)Represents the carrying value of debt balances after consideration of offsetting arrangements.

Debt of Freddie Mac

We issue debt of Freddie Mac to fund our operations. Competition for funding can vary with economic, financial market, and regulatory environments. The amount, type, and term of debt issued is based on a variety of factors and is designed to meet our ongoing cash needs and to comply with our Liquidity Management Framework.

The table below summarizes the par value and the average rate of debt of Freddie Mac securities we issued or paid off, including regularly scheduled principal payments, payments resulting from calls, and payments for repurchases. We call, exchange, or repurchase our outstanding debt securities from time to time for a variety of reasons, including managing our funding composition and supporting the liquidity of our debt securities.

Table 32 - Debt of Freddie Mac Activity


	1Q 2025			1Q 2024
(Dollars in millions)	Par Value	Average Rate(1)		Par Value	Average Rate(1)
Short-term:
Beginning balance	$14,716	4.59	%	$6,031	5.39	%
Issuances	38,793	4.31		15,943	5.29
Repayments	—	—		—	—
Maturities	(39,052)	4.42		(13,043)	5.26
Total short-term debt	14,457	4.29		8,931	5.37

Long-term:
Beginning balance	172,942	3.65		168,009	3.31
Issuances	22,195	4.88		16,438	5.38
Repayments	(18,106)	5.10		(20,812)	5.62
Maturities	(6,824)	2.16		(3,164)	2.62
Total long-term debt	170,207	3.72		160,471	3.24
Total debt of Freddie Mac, net	$184,664	3.76	%	$169,402	3.35	%

(1)Average rate is weighted based on par value.

As of March 31, 2025, our aggregate indebtedness pursuant to the Purchase Agreement was $184.7 billion, which was below the current $270.0 billion debt cap limit. Our aggregate indebtedness calculation primarily includes the par value of short- and long-term debt.

Maturity and Redemption Dates

The table below presents the par value of debt of Freddie Mac by contractual maturity date and earliest redemption date. The earliest redemption date includes callable debt at its earliest call date, and the contractual maturity date includes both callable debt and non-callable debt as of their respective maturity dates.


Freddie Mac 1Q 2025 Form 10-Q						32


Management's Discussion and Analysis						Liquidity and Capital Resources

Table 33 - Maturity and Redemption Dates


	As of March 31, 2025		As of December 31, 2024
(In millions)	Contractual Maturity Date	Earliest Redemption Date	Contractual Maturity Date	Earliest Redemption Date
Debt of Freddie Mac(1):
1 year or less	$66,108	$144,899	$62,951	$138,053
1 year through 2 years	34,819	26,507	45,007	36,281
2 years through 3 years	20,896	379	20,068	370
3 years through 4 years	8,100	345	8,307	345
4 years through 5 years	32,374	2,055	28,579	2,055
Thereafter	21,118	9,230	21,423	9,231
STACR and SCR debt(2)	1,249	1,249	1,324	1,324
Total debt of Freddie Mac	$184,664	$184,664	$187,659	$187,659

(1)As of March 31, 2025 and December 31, 2024, excludes $4.2 billion and $8.2 billion, respectively, of payables related to securities sold under agreements to repurchase that we offset against receivables related to securities purchased under agreements to resell on our consolidated balance sheets.

(2)STACR debt notes and SCR debt notes are subject to prepayment risk as their payments are based upon the performance of a reference pool of mortgage assets that may be prepaid by the related mortgage borrowers at any time generally without penalty and are, therefore, included as a separate category in the table.

Debt of Consolidated Trusts

The largest component of debt on our condensed consolidated balance sheets is debt of consolidated trusts, which relates to securitization transactions that we consolidate for accounting purposes. We primarily issue this type of debt by securitizing mortgage loans to finance our guarantee activities.

The table below shows the issuance and extinguishment activity for the debt of consolidated trusts.

Table 34 - Debt of Consolidated Trusts Activity


(In millions)	1Q 2025	1Q 2024
Beginning balance	$3,085,981	$2,999,893
Issuances	120,942	84,873
Repayments and extinguishments	(97,496)	(75,689)
Ending balance	3,109,427	3,009,077
Unamortized premiums and discounts	35,821	40,961
Debt of consolidated trusts	$3,145,248	$3,050,038

Off-Balance Sheet Arrangements

We enter into certain business arrangements that are not recorded on our condensed consolidated balance sheets or that may be recorded in amounts that differ from the full contractual or notional amount of the transaction that affect our short- and long-term liquidity needs. Our off-balance sheet arrangements primarily consist of guarantees and commitments. Certain of these arrangements present credit risk exposure. See Note 2 and Note 4 for additional information on these transactions. See MD&A - Risk Management - Credit Risk for additional information on our credit risk exposure on off-balance sheet arrangements.

Cash Flows

Cash and cash equivalents (including restricted cash and cash equivalents) increased from $3.5 billion as of March 31, 2024 to $4.8 billion as of March 31, 2025.


Freddie Mac 1Q 2025 Form 10-Q						33


Management's Discussion and Analysis						Liquidity and Capital Resources

Capital Resources

The table below presents activity related to our net worth.

Table 35 - Net Worth Activity


(In millions)	1Q 2025	1Q 2024
Beginning balance	$59,575	$47,722
Comprehensive income	2,828	2,741
Capital draw from Treasury	—	—
Senior preferred stock dividends declared	—	—
Total equity / net worth	$62,403	$50,463

Remaining Treasury funding commitment	$140,162	$140,162
Aggregate draws under Purchase Agreement	71,648	71,648
Aggregate cash dividends paid to Treasury	119,680	119,680
Liquidation preference of the senior preferred stock	132,223	120,370

ERCF

For a description of our capital requirements under the ERCF, including the amended provisions, see the MD&A - Regulation and Supervision section in our 2024 Annual Report.

Capital Metrics

The table below presents the components of our regulatory capital.

Table 36 - Regulatory Capital Components


(In millions)	March 31, 2025	December 31, 2024
Total equity	$62,403	$59,575
Less:
Senior preferred stock	72,648	72,648
Preferred stock	14,109	14,109
Common equity	(24,354)	(27,182)
Less: Deferred tax assets arising from temporary differences that exceed 10% of CET1 capital and other regulatory adjustments	5,103	5,123
Common equity Tier 1 capital	(29,457)	(32,305)
Add: Preferred stock	14,109	14,109
Tier 1 capital	(15,348)	(18,196)
Tier 2 capital adjustments	—	—
Adjusted total capital	($15,348)	($18,196)

The table below presents the components of our statutory capital.

Table 37 - Statutory Capital Components


(In millions)	March 31, 2025	December 31, 2024
Total equity	$62,403	$59,575
Less:
Senior preferred stock	72,648	72,648
AOCI, net of taxes	7	(27)
Core capital	(10,252)	(13,046)
General allowance for foreclosure losses(1)	7,451	7,239
Total capital	($2,801)	($5,807)

(1)Represents our allowance for credit losses.


Freddie Mac 1Q 2025 Form 10-Q						34


Management's Discussion and Analysis						Liquidity and Capital Resources

The table below presents our capital metrics under the ERCF.

Table 38 - Capital Metrics Under ERCF


(In billions)	March 31, 2025	December 31, 2024
Adjusted total assets	$3,834	$3,817
Risk-weighted assets (standardized approach):
Credit risk	969	988
Market risk	58	58
Operational risk	72	72
Total risk-weighted assets	$1,099	$1,118

(In billions)	March 31, 2025	December 31, 2024
Stress capital buffer	$29	$28
Stability capital buffer	30	29
Countercyclical capital buffer amount	—	—
PCCBA	$59	$57
PLBA	$15	$14


	March 31, 2025
(Dollars in billions)	Minimum Capital Requirement		Applicable Buffer		Capital Requirement (Including Buffer(1))		Available Capital (Deficit)		Capital Shortfall
Risk-based capital amounts:
Total capital	$88		N/A		$88		($3)		($91)
CET1 capital	49		$59		108		(29)		(137)
Tier 1 capital	66		59		125		(15)		(140)
Adjusted total capital	88		59		147		(15)		(162)
Risk-based capital ratios(2):
Total capital	8.0	%	N/A		8.0	%	(0.3)	%	(8.3)	%
CET1 capital	4.5		5.4	%	9.9		(2.7)		(12.6)
Tier 1 capital	6.0		5.4		11.4		(1.4)		(12.8)
Adjusted total capital	8.0		5.4		13.4		(1.4)		(14.8)
Leverage capital amounts:
Core capital	$96		N/A		$96		($10)		($106)
Tier 1 capital	96		$15		111		(15)		(126)
Leverage capital ratios(3):
Core capital	2.5	%	N/A		2.5	%	(0.3)	%	(2.8)	%
Tier 1 capital	2.5		0.4	%	2.9		(0.4)		(3.3)


Freddie Mac 1Q 2025 Form 10-Q						35


Management's Discussion and Analysis						Liquidity and Capital Resources


	December 31, 2024
(Dollars in billions)	Minimum Capital Requirement		Applicable Buffer		Capital Requirement (Including Buffer(1))		Available Capital (Deficit)		Capital Shortfall
Risk-based capital amounts:
Total capital	$89		N/A		$89		($6)		($95)
CET1 capital	50		$57		107		(32)		(139)
Tier 1 capital	67		57		124		(18)		(142)
Adjusted total capital	89		57		146		(18)		(164)
Risk-based capital ratios(2):
Total capital	8.0	%	N/A		8.0	%	(0.5)	%	(8.5)	%
CET1 capital	4.5		5.1	%	9.6		(2.9)		(12.5)
Tier 1 capital	6.0		5.1		11.1		(1.6)		(12.7)
Adjusted total capital	8.0		5.1		13.1		(1.6)		(14.7)
Leverage capital amounts:
Core capital	$95		N/A		$95		($13)		($108)
Tier 1 capital	95		$14		109		(18)		(127)
Leverage capital ratios(3):
Core capital	2.5	%	N/A		2.5	%	(0.3)	%	(2.8)	%
Tier 1 capital	2.5		0.4	%	2.9		(0.5)		(3.4)

(1)PCCBA for risk-based capital and PLBA for leverage capital.

(2)As a percentage of RWA.

(3)As a percentage of ATA.

At March 31, 2025, our maximum payout ratio under the ERCF was 0.0%.

See Note 15 for additional information on our capital amounts and ratios under the ERCF.


Freddie Mac 1Q 2025 Form 10-Q						36


Management's Discussion and Analysis						Critical Accounting Estimates

CRITICAL ACCOUNTING ESTIMATES

Our critical accounting estimates and policies relate to the Single-Family allowance for credit losses. For additional information about our critical accounting estimates and significant accounting policies, see Note 1 and Critical Accounting Estimates in our 2024 Annual Report.

Single-Family Allowance for Credit Losses

The Single-Family allowance for credit losses represents our estimate of expected credit losses over the contractual term of the mortgage loans. The Single-Family allowance for credit losses pertains to all single-family loans classified as held-for-investment on our condensed consolidated balance sheets.

Determining the appropriateness of the Single-Family allowance for credit losses is a complex process that is subject to numerous estimates and assumptions requiring significant management judgment about matters that involve a high degree of subjectivity. This process involves the use of models that require us to make judgments about matters that are difficult to predict.

Changes in forecasted house price growth rates can have a significant effect on our allowance for credit losses estimates. The table below shows our nationwide forecasted house price growth rates that were used in determining our allowance for credit losses. See Note 5 for additional information regarding our current period provision for credit losses.

Table 39 - Forecasted House Price Growth Rates


	March 31, 2025		December 31, 2024
12-Month Forward	4.2	%	2.7	%
13- to 24-Month Forward	2.8		3.3


Freddie Mac 1Q 2025 Form 10-Q						37


Management's Discussion and Analysis						Regulation and Supervision

REGULATION AND SUPERVISION

In addition to oversight by FHFA as our Conservator, we are subject to regulation and oversight by FHFA under our Charter and the GSE Act and to certain regulation by other government agencies. FHFA has the power to require us from time to time to change our processes, take action and/or stop taking action that could impact our business. Furthermore, regulatory activities by other government agencies can affect us indirectly, even if we are not directly subject to such agencies' regulation or oversight. For example, regulations that modify requirements applicable to the purchase or servicing of mortgages can affect us.

Federal Housing Finance Agency

In the first quarter of 2025, FHFA in its power both as our Conservator and regulator rescinded or modified certain guidance, directives, and other requirements implemented by previous administrations affecting the Enterprises. The rescinded or modified actions included those relating to unfair or deceptive acts or practices, climate-related risk management, and fair lending and fair housing compliance. FHFA is expected to continue modifying, rescinding, or withdrawing, or changing its approach to implementation and enforcement of, guidance, directives, and other requirements relating to the Enterprises. The impact of these and any similar future actions taken by FHFA are uncertain at this time.


Freddie Mac 1Q 2025 Form 10-Q						38


Management's Discussion and Analysis			Forward-Looking Statements

FORWARD-LOOKING STATEMENTS

We regularly communicate information concerning our business activities to investors, the news media, securities analysts, and others as part of our normal operations. Some of these communications, including this Form 10-Q, contain "forward-looking statements." Examples of forward-looking statements include, but are not limited to, statements pertaining to the conservatorship, our current expectations and objectives for the Single-Family and Multifamily segments of our business, our efforts to assist the housing market, our liquidity and capital management, economic and market conditions and trends including, but not limited to, changes in house prices and house price forecasts, our market coverage, the effect of legislative and regulatory developments, judicial rulings, and new accounting guidance, the credit quality of loans we own or guarantee, the costs and benefits of our CRT transactions, the impact of banking crises or failures, the effects of natural disasters or catastrophic events and actions taken in response thereto on our business, and our results of operations and financial condition. Forward-looking statements involve known and unknown risks and uncertainties, some of which are beyond our control. Forward-looking statements are often accompanied by, and identified with, terms such as "could," "may," "will," "believe," "expect," "anticipate," "forecast," and similar phrases. These statements are not historical facts, but rather represent our expectations based on current information, plans, judgments, assumptions, estimates, and projections. Actual results may differ significantly from those described in or implied by such forward-looking statements due to various factors and uncertainties, including those described in the Risk Factors section in our 2024 Annual Report, and including, without limitation, the following:

n The actions the federal government (including FHFA, Treasury, and Congress) and state governments may take, require us to take, or restrict us from taking, including actions regarding our operations, access to affordable and sustainable housing, such as programs to implement the expectations in FHFA's Conservatorship Scorecards and other objectives for us;

n Changes in economic and market conditions, including trade laws or policies such as tariffs, volatility in the financial services industry, changes in employment rates, immigration policy, inflation, interest rates, spreads, and house prices;

n Changes in the fiscal and monetary policies of the Federal Reserve, including changes in target interest rates and in the amount of agency MBS and agency CMBS held by the Federal Reserve;

n The effect of the restrictions on our business due to the conservatorship and the Purchase Agreement;

n The impact of any changes in our credit ratings or those of the U.S. government;

n Changes in our Charter, applicable legislative or regulatory requirements (including any legislation affecting the future status of our company), or the Purchase Agreement;

n Changes to our capital requirements and potential effects of such changes on our business strategies;

n Changes in tax laws;

n Changes in privacy and cybersecurity laws and regulations;

n Changes in accounting policies, practices, standards, or guidance;

n Changes in the U.S. mortgage market, including the supply of houses available for sale, the supply of multifamily rental housing, and changes in the supply and type of loan products;

n The success of our efforts to mitigate our losses;

n The success of our strategy to transfer mortgage credit risk;

n Our ability to maintain adequate liquidity to fund our operations;

n Our ability to maintain the security and resiliency of our operational systems and infrastructure, including against cybersecurity incidents or other security incidents, whether due to insider error or malfeasance or system errors or vulnerabilities in our or our third parties' systems;

n Our ability to effectively execute our business strategies, implement significant changes, and improve efficiency;

n The adequacy of our risk management framework, including the adequacy of our regulatory capital framework prescribed by FHFA and internal models for measuring risk;

n Our ability to manage mortgage credit risk, including the effect of changes in underwriting and servicing practices;

n Changes in credit reporting at the credit reporting bureaus due to regulatory and legal developments, as well as lender practices;

n Our ability to limit or manage our economic exposure and GAAP earnings exposure to interest-rate volatility and spread volatility, including the availability of derivative financial instruments needed for interest-rate and spread risk management purposes and our ability to apply hedge accounting;

n Our operational ability to issue new securities, make timely and correct payments on securities, and provide initial and ongoing disclosures;

n Our reliance on CSS and the CSP for the operation of the majority of our Single-Family securitization activities, limits on our influence over CSS Board decisions, and any additional changes FHFA may require in our relationship with, or support of, CSS;


Freddie Mac 1Q 2025 Form 10-Q						39


Management's Discussion and Analysis			Forward-Looking Statements

n Performance of and changes in the methodologies, models, assumptions, and estimates we use to prepare our financial statements, make business decisions, and manage risks;

n Changes in investor demand for our debt or mortgage-related securities;

n Our ability to maintain market acceptance of the UMBS, including our ability to maintain alignment of the prepayment speeds and pricing performance of our and Fannie Mae's respective UMBS;

n Changes in the practices or performance of loan originators, servicers, property managers, investors, insurers, and other participants in the secondary mortgage market including as a result of evolving AI regulation;

n Competition from other market participants, which could affect the pricing we offer for and the performance of our mortgage-related products, the credit characteristics of the loans we purchase, and our ability to meet our affordable housing goals and other mandated activities;

n The availability of critical third parties, or their vendors and other business partners, to deliver products or services, or to manage risks, including cybersecurity risk, effectively;

n The occurrence of a catastrophic event or natural disaster in areas in which our offices, significant portions of our total mortgage portfolio, or the offices of critical third parties are located, and for which we may be uninsured or significantly underinsured; and

n Other factors and assumptions described in this Form 10-Q and our 2024 Annual Report, including in the MD&A section.

Forward-looking statements are made only as of the date of this Form 10-Q, and we undertake no obligation to update any forward-looking statements we make to reflect events or circumstances occurring after the date of this Form 10-Q.


Freddie Mac 1Q 2025 Form 10-Q						40


Financial Statements

Financial Statements


Freddie Mac 1Q 2025 Form 10-Q						41


Financial Statements			Condensed Consolidated Statements of Income and Comprehensive Income

FREDDIE MAC

Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited)


(In millions, except share-related amounts)	1Q 2025	1Q 2024
Net interest income
Interest income	$31,365	$28,385
Interest expense	(26,263)	(23,626)
Net interest income	5,102	4,759

Non-interest income
Guarantee income	440	496
Investment gains, net	192	405
Other income	118	97
Non-interest income	750	998
Net revenues	5,852	5,757

(Provision) benefit for credit losses	(280)	(181)

Non-interest expense
Salaries and employee benefits	(423)	(421)
Professional services, technology, and occupancy	(253)	(271)
Credit enhancement expense	(540)	(597)
Legislative and regulatory assessments	(817)	(787)
Other expense	(55)	(46)
Non-interest expense	(2,088)	(2,122)

Income before income tax expense	3,484	3,454
Income tax expense	(690)	(688)
Net income	2,794	2,766
Other comprehensive income (loss), net of taxes and reclassification adjustments	34	(25)
Comprehensive income	$2,828	$2,741

Net income	$2,794	$2,766
Amounts attributable to senior preferred stock	(2,828)	(2,741)
Net income (loss) attributable to common stockholders	($34)	$25
Net income (loss) per common share	($0.01)	$0.01
Weighted average common shares (in millions)	3,234	3,234

The accompanying notes are an integral part of these condensed consolidated financial statements.


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Financial Statements			Condensed Consolidated Balance Sheets

FREDDIE MAC

Condensed Consolidated Balance Sheets (Unaudited)


	March 31,	December 31,
(In millions, except share-related amounts)	2025	2024
Assets
Cash and cash equivalents (includes $1,056 and $1,165 of restricted cash and cash equivalents)	$4,790	$5,534
Securities purchased under agreements to resell	105,070	100,118
Investment securities, at fair value	59,054	55,771
Mortgage loans held-for-sale (includes $10,563 and $11,394 at fair value)	14,405	15,560
Mortgage loans held-for-investment (net of allowance for credit losses of $6,974 and $6,774 and includes $2,625 and $2,413 at fair value)	3,186,345	3,172,329
Accrued interest receivable	11,050	11,029
Deferred tax assets, net	4,992	5,018
Other assets (includes $6,210 and $5,870 at fair value)	23,410	21,333
Total assets	$3,409,116	$3,386,692
Liabilities and equity
Liabilities
Accrued interest payable	$9,756	$9,822
Debt (includes $3,278 and $2,339 at fair value)	3,325,101	3,304,949
Other liabilities (includes $815 and $978 at fair value)	11,856	12,346
Total liabilities	3,346,713	3,327,117
Commitments and contingencies
Equity
Senior preferred stock (liquidation preference of $132,223 and $129,038)	72,648	72,648
Preferred stock, at redemption value	14,109	14,109
Common stock, $0.00 par value, 4,000,000,000 shares authorized, 725,863,886 shares issued and 650,059,553 shares outstanding	—	—
Retained earnings	(20,476)	(23,270)
AOCI, net of taxes, related to:
Available-for-sale securities	95	66
Other	(88)	(93)
AOCI, net of taxes	7	(27)
Treasury stock, at cost, 75,804,333 shares	(3,885)	(3,885)
Total equity	62,403	59,575
Total liabilities and equity	$3,409,116	$3,386,692

The table below presents the carrying value and classification of the assets and liabilities related to consolidated VIEs on our condensed consolidated balance sheets.


	March 31,	December 31,
(In millions)	2025	2024
Assets
Cash and cash equivalents (includes $951 and $1,055 of restricted cash and cash equivalents)	$952	$1,056
Securities purchased under agreements to resell	13,588	12,764
Investment securities, at fair value	8	1
Mortgage loans held-for-investment, net	3,135,947	3,114,937
Accrued interest receivable	10,118	9,900
Other assets	6,745	5,881
Total assets of consolidated VIEs	$3,167,358	$3,144,539
Liabilities
Accrued interest payable	$8,696	$8,469
Debt	3,145,248	3,122,941
Total liabilities of consolidated VIEs	$3,153,944	$3,131,410

The accompanying notes are an integral part of these condensed consolidated financial statements.


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Financial Statements			Condensed Consolidated Statements of Equity

FREDDIE MAC

Condensed Consolidated Statements of Equity (Unaudited)


	Three Months Ended March 31,
(In millions)	2025	2024
Senior preferred stock
Balance at beginning of period and March 31	$72,648	$72,648
Preferred stock, at redemption value
Balance at beginning of period and March 31	14,109	14,109
Common stock, at par value
Balance at beginning of period and March 31	—	—
Retained earnings
Balance at beginning of period	(23,270)	(35,128)
Net income	2,794	2,766
Balance at March 31	(20,476)	(32,362)
AOCI, net of tax
Balance at beginning of period	(27)	(22)
Changes in net unrealized gains (losses) on available-for-sale securities (net of taxes of $8 million and $7 million as of March 31, 2025 and March 31, 2024, respectively)	29	(25)
Reclassification adjustment for (gains) losses on available-for-sale securities included in net income (net of taxes of $0 million and $1 million as of March 31, 2025 and March 31, 2024, respectively)	—	4
Other (net of taxes of $1 million and $1 million as of March 31, 2025 and March 31, 2024, respectively)	5	(4)
Balance at March 31	7	(47)
Treasury stock, at cost
Balance at beginning of period and March 31	(3,885)	(3,885)
Total equity	$62,403	$50,463

The accompanying notes are an integral part of these condensed consolidated financial statements.


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Financial Statements			Condensed Consolidated Statements of Cash Flows

FREDDIE MAC

Condensed Consolidated Statements of Cash Flows (Unaudited)


(In millions)	1Q 2025	1Q 2024
Net cash provided by (used in) operating activities	$3,572	$2,894
Cash flows from investing activities
Investment securities:
Purchases	(14,755)	(15,067)
Proceeds from sales	9,652	16,257
Proceeds from maturities and repayments	1,230	1,595
Mortgage loans acquired held-for-investment:
Purchases	(25,925)	(23,751)
Proceeds from sales	946	714
Proceeds from repayments	65,573	57,248
Advances under secured lending arrangements	(27,899)	(19,544)
Net (increase) decrease in securities purchased under agreements to resell	(968)	(10,736)
Cash flows related to derivatives	(1,182)	1,890
Other, net	(183)	320
Net cash provided by (used in) investing activities	6,489	8,926
Cash flows from financing activities
Debt of consolidated trusts:
Proceeds from issuance	65,596	43,851
Repayments and redemptions	(69,476)	(57,074)
Borrowings with original maturity of more than three months:
Proceeds from issuance	24,257	17,402
Repayments	(34,845)	(26,359)
Net increase (decrease) in:
Borrowings with original maturity of three months or less	7,648	4,318
Securities sold under agreements to repurchase	(3,984)	3,555
Other, net	(1)	(1)
Net cash provided by (used in) financing activities	(10,805)	(14,308)
Net increase (decrease) in cash and cash equivalents (includes restricted cash and cash equivalents)	(744)	(2,488)
Cash and cash equivalents (includes restricted cash and cash equivalents) at the beginning of year	5,534	6,019
Cash and cash equivalents (includes restricted cash and cash equivalents) at end of period	$4,790	$3,531

Supplemental cash flow information
Cash paid for:
Debt interest	$27,348	$24,220
Income taxes	—	—
Non-cash investing and financing activities (Notes 3 and 6)

The accompanying notes are an integral part of these condensed consolidated financial statements.


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Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 1

Notes to Condensed Consolidated Financial Statements

NOTE 1

Summary of Significant Accounting Policies

Freddie Mac is a GSE chartered by Congress in 1970, with a mission to provide liquidity, stability, and affordability to the U.S. housing market. We are regulated by FHFA, the SEC, HUD, and Treasury, and are currently operating under the conservatorship of FHFA. The conservatorship and related matters significantly affect our management, business activities, financial condition, and results of operations. In connection with our entry into conservatorship, we entered into the Purchase Agreement with Treasury, under which we issued Treasury both senior preferred stock and a warrant to purchase common stock. Our Purchase Agreement with Treasury is critical to keeping us solvent and avoiding the appointment of a receiver by FHFA under statutory mandatory receivership provisions. We believe the support provided by Treasury pursuant to the Purchase Agreement currently enables us to have adequate liquidity to conduct normal business activities. For more information on the conservatorship, the roles of FHFA and Treasury, and the Purchase Agreement, see our 2024 Annual Report. Throughout our unaudited condensed consolidated financial statements and related notes, we use certain acronyms and terms which are defined in the Glossary of our 2024 Annual Report.

The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes in our 2024 Annual Report.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP and include our accounts as well as the accounts of other entities in which we have a controlling financial interest. All intercompany balances and transactions have been eliminated.

Beginning in 1Q 2025, we changed our presentation on the statement of cash flows for borrowings with original contractual maturities of three months or less such that the proceeds from the issuance of these borrowings and the related payments to redeem them are presented on a net basis. Previously, proceeds from the issuance of these borrowings and the related repayments to redeem them were generally presented separately (i.e., gross) on the statement of cash flows. As a result of this change, we recast the prior periods presented to reflect the net presentation of cash flows on these borrowings. For borrowings with original contractual maturities greater than three months, we continue to present proceeds from issuance and payments to redeem the borrowings on a gross basis.

We are operating under the basis that we will realize assets and satisfy liabilities in the normal course of business as a going concern and in accordance with the authority provided by FHFA to our Board of Directors to oversee management's conduct of our business operations. In the opinion of management, our unaudited condensed consolidated financial statements contain all adjustments, which include only normal recurring adjustments, necessary for a fair statement of our results.

Use of Estimates

The preparation of our condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and disclosure of contingent assets and liabilities at the date of the financial statements. Management has made significant estimates to report the allowance for credit losses on single-family mortgage loans. Actual results could be different from these estimates.


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Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 1

Recently Issued Accounting Guidance


Recently Issued Accounting Guidance, Not Yet Adopted Within Our Consolidated Financial Statements
Standard	Description	Date of Adoption	Effect on Consolidated Financial Statements
ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures	The amendments in this Update require annual disclosure of more detailed tax rate reconciliation categories and income taxes paid by geography and jurisdiction.	December 31, 2025	We do not expect the adoption of these amendments to have a material effect on our consolidated financial statements.
ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses	The amendments in this Update require disaggregated disclosures for certain expense categories.	December 31. 2026	We do not expect the adoption of these amendments to have a material effect on our consolidated financial statements.


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Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 2

NOTE 2

Securitization and Consolidation

Nonconsolidated VIEs

The table below presents the carrying amounts and classification of the assets and liabilities recorded on our condensed consolidated balance sheets that relate to our variable interests in VIEs for which we are not the primary beneficiary and with which we were involved in the design and creation and have a significant continuing involvement, our maximum exposure to loss as a result of our involvement with such VIEs, and the total assets of the VIEs. Our involvement with such VIEs primarily consists of guarantees that we have issued to the VIE, some of which are accounted for as derivative instruments, and investments in debt securities issued by the VIE. See Note 4 for additional information on our guarantees to nonconsolidated VIEs.

Total assets shown in the table below represents the remaining UPB of the mortgage loans or other noncash financial assets held by the VIE and excludes cash and nonfinancial assets held by the VIE. Maximum exposure to loss shown in the table below is primarily based on the remaining UPB of the guaranteed securities issued by the VIE and represents the contractual amounts that could be lost if the assets of the VIE (including the assets in the related reference pool for CRT products) became worthless at the balance sheet date, without consideration of proceeds from related collateral liquidation and possible recoveries under credit enhancements. We do not believe the maximum exposure to loss from our involvement with nonconsolidated VIEs is representative of the actual loss we are likely to incur based on our historical loss experience and after consideration of proceeds from related collateral liquidation and available credit enhancements.

Table 2.1 - Nonconsolidated VIEs


	March 31, 2025
	Carrying Amounts of the Assets and Liabilities on the Condensed Consolidated Balance Sheets			Total Assets	Maximum Exposure to Loss
(In millions)	Investment Securities	Accrued Interest Receivable and Other Assets(1)	Liabilities(1)
Single-Family:
Securitization products	$1,759	$159	$476	$30,299	$24,759
Resecuritization products(2)	5,272	74	634	102,835	102,835
CRT products(3)	—	93	146	26,880	7
Total Single-Family	7,031	326	1,256	160,014	127,601
Multifamily:
Securitization products(4)	5,147	5,480	4,253	353,002	316,427
CRT products(3)	—	32	16	2,005	23
Total Multifamily	5,147	5,512	4,269	355,007	316,450
Other	—	7	5	72	481
Total	$12,178	$5,845	$5,530	$515,093	$444,532


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Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 2


	December 31, 2024
	Carrying Amounts of the Assets and Liabilities on the Condensed Consolidated Balance Sheets			Total Assets	Maximum Exposure to Loss
(In millions)	Investment Securities	Accrued Interest Receivable and Other Assets(1)	Liabilities(1)
Single-Family:
Securitization products	$1,633	$157	$458	$30,038	$24,470
Resecuritization products(2)	5,159	69	701	104,120	104,120
CRT products(3)	—	89	171	27,224	7
Total Single-Family	6,792	315	1,330	161,382	128,597
Multifamily:
Securitization products(4)	5,263	5,171	4,374	355,108	317,611
CRT products(3)	—	29	15	1,738	22
Total Multifamily	5,263	5,200	4,389	356,846	317,633
Other	—	7	5	79	472
Total	$12,055	$5,522	$5,724	$518,307	$446,702

(1) Other assets primarily include our guarantee assets. Liabilities primarily include our guarantee obligations.

(2) Total assets and maximum exposure to loss are based on the UPB of Fannie Mae securities underlying commingled Freddie Mac resecuritization trusts. We exclude noncommingled resecuritization trusts from these amounts as we have already guaranteed the underlying collateral and therefore noncommingled resecuritizations do not involve any incremental assets or create any incremental exposure to credit risk.

(3) Maximum exposure to loss is based on our expected recovery receivables and excludes our obligations to make certain payments to the VIE to support payment of the interest due on the notes issued by the VIE, which we account for as derivative instruments. The notional value of these derivative instruments is equal to the total assets of the VIE.

(4) Includes total assets of $0.7 billion as of both March 31, 2025 and December 31, 2024 related to VIEs in which our interest would no longer absorb significant variability as the guaranteed securities have completely paid off.

Investments in Low Income Housing Tax Credits

We invest in LIHTC partnerships to support and preserve the supply of affordable housing. These investments do not provide us with a controlling financial interest in the underlying partnerships and we therefore do not consolidate these entities. We have elected to account for these investments using the proportional amortization method when applicable. The carrying amount of our investments in LIHTC partnerships is presented in other assets on our condensed consolidated balance sheets and totaled $4.3 billion as of both March 31, 2025, and December 31, 2024.


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Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 3

NOTE 3

Mortgage Loans

The table below provides details of the loans on our condensed consolidated balance sheets.

Table 3.1 - Mortgage Loans


	March 31, 2025			December 31, 2024
(In millions)	Single-Family	Multifamily	Total	Single-Family	Multifamily	Total
Held-for-sale UPB	$2,544	$12,176	$14,720	$2,984	$13,265	$16,249
Cost basis and fair value adjustments, net	(464)	149	(315)	(586)	(103)	(689)
Total held-for-sale loans, net	2,080	12,325	14,405	2,398	13,162	15,560
Held-for-investment UPB	3,074,567	90,483	3,165,050	3,063,211	87,416	3,150,627
Cost basis and fair value adjustments, net(1)	28,678	(409)	28,269	28,926	(450)	28,476
Allowance for credit losses	(6,543)	(431)	(6,974)	(6,381)	(393)	(6,774)
Total held-for-investment loans, net(2)	3,096,702	89,643	3,186,345	3,085,756	86,573	3,172,329
Total mortgage loans, net	$3,098,782	$101,968	$3,200,750	$3,088,154	$99,735	$3,187,889

(1)Includes ($0.4) billion and ($0.7) billion of basis adjustments maintained on a closed portfolio basis related to existing portfolio layer method fair value hedge relationships as of March 31, 2025 and December 31, 2024, respectively.

(2)Includes $2.6 billion and $2.4 billion of multifamily held-for-investment loans for which we have elected the fair value option as of March 31, 2025 and December 31, 2024, respectively.

The table below provides details of the UPB of loans we purchased and sold during the periods presented.

Table 3.2 - Loans Purchased and Sold


(In millions)	1Q 2025	1Q 2024
Single-Family:
Purchases:
Held-for-investment loans	$77,646	$62,269
Sales of held-for-sale loans(1)	759	618
Multifamily:
Purchases:
Held-for-investment loans	3,914	2,625
Held-for-sale loans	5,431	6,459
Sales of held-for-sale loans(2)	6,604	6,603

(1)Our sales of single-family loans reflect the sale of single-family seasoned loans.

(2)Our sales of multifamily loans occur primarily through the issuance of Multifamily K Certificates.


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Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 3

Reclassifications

The table below presents the allowance for credit losses or valuation allowance that was reversed or established due to loan reclassifications between held-for-investment and held-for-sale during the periods presented.

Table 3.3 - Loan Reclassifications(1)


	1Q 2025			1Q 2024
(In millions)	UPB	Allowance for Credit Losses Reversed or (Established)	Valuation Allowance (Established) or Reversed	UPB	Allowance for Credit Losses Reversed or (Established)	Valuation Allowance (Established) or Reversed
Single-Family reclassifications from:
Held-for-investment to held-for-sale	$689	$7	$—	$376	$8	$—
Held-for-sale to held-for-investment(2)	258	21	13	50	4	4
Multifamily reclassifications from:
Held-for-investment to held-for-sale	527	1	(27)	264	1	(5)
Held-for-sale to held-for-investment(2)	190	(1)	5	369	—	3

(1)Amounts exclude reclassifications related to loans for which we have elected the fair value option.

(2)Allowance for credit losses established upon loan reclassifications from held-for-sale to held-for-investment to reflect the net amount we expect to collect on the loan. Loans with prior charge-offs may have a negative allowance for credit losses established upon reclassification.

Interest Income

The table below presents the amortized cost basis of non-accrual loans as of the beginning and the end of the periods presented, including the interest income recognized for the period that is related to the loans on non-accrual status as of the period end.

Table 3.4 - Amortized Cost Basis of Held-for-Investment Loans on Non-Accrual(1)


	Non-Accrual Amortized Cost Basis		Interest Income Recognized(2)
(In millions)	March 31, 2025	December 31, 2024	1Q 2025
Single-Family:
20- and 30-year or more, amortizing fixed-rate	$15,724	$15,157	$43
15-year or less, amortizing fixed-rate	487	511	1
Adjustable-rate and other	256	240	1
Total Single-Family	16,467	15,908	45
Total Multifamily	207	125	1
Total Single-Family and Multifamily	$16,674	$16,033	$46


	Non-Accrual Amortized Cost Basis		Interest Income Recognized(2)
(In millions)	March 31, 2024	December 31, 2023	1Q 2024
Single-Family:
20- and 30-year or more, amortizing fixed-rate	$12,189	$12,682	$31
15-year or less, amortizing fixed-rate	485	519	1
Adjustable-rate and other	247	257	1
Total Single-Family	12,921	13,458	33
Total Multifamily	103	64	1
Total Single-Family and Multifamily	$13,024	$13,522	$34

(1)Excludes amounts related to loans for which we have elected the fair value option.

(2)Represents the amount of payments received during the period, including those received while the loans were on accrual status, for the held-for-investment loans on non-accrual status as of period end.


Freddie Mac 1Q 2025 Form 10-Q						51


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 3

The table below provides the amount of accrued interest receivable presented on our condensed consolidated balance sheets and the amount of accrued interest receivable related to loans on non-accrual status at the end of the periods that was charged off.

Table 3.5 - Accrued Interest Receivable and Related Charge-Offs


	Accrued Interest Receivable		Accrued Interest Receivable Related Charge-Offs
(In millions)	March 31, 2025	December 31, 2024	1Q 2025	1Q 2024
Single-Family loans	$9,936	$9,776	($64)	($46)
Multifamily loans	439	431	(3)	(1)

Credit Quality

Single-Family

The current LTV ratio is one key factor we consider when estimating our allowance for credit losses for single-family loans. As current LTV ratios increase, the borrower's equity in the home decreases, which may negatively affect the borrower's ability to refinance or to sell the property for an amount at or above the balance of the outstanding loan.

The table below presents the amortized cost basis of single-family held-for-investment loans by current LTV ratio. Our current LTV ratios are estimates based on available data through the end of each period presented.


Freddie Mac 1Q 2025 Form 10-Q						52


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 3

Table 3.6 - Amortized Cost Basis of Single-Family Held-for-Investment Loans by Current LTV Ratio and Vintage


	March 31, 2025
	Year of Origination						Total
(In millions)	2025	2024	2023	2022	2021	Prior
Current LTV ratio:
20- and 30-year or more, amortizing fixed-rate
≤ 60	$6,356	$52,703	$43,000	$112,167	$571,774	$996,917	$1,782,917
> 60 to 80	17,600	133,013	106,456	181,087	208,965	50,433	697,554
> 80 to 90	6,916	62,770	66,239	53,366	9,374	1,146	199,811
> 90 to 100	10,742	70,477	17,061	8,735	1,102	234	108,351
> 100	15	341	663	955	73	75	2,122
Total 20- and 30-year or more, amortizing fixed-rate	41,629	319,304	233,419	356,310	791,288	1,048,805	2,790,755
Current period gross charge-offs(1)	—	2	8	21	23	91	145
15-year or less, amortizing fixed-rate
≤ 60	1,164	6,433	4,297	21,266	106,871	131,292	271,323
> 60 to 80	1,170	5,620	2,743	3,176	636	42	13,387
> 80 to 90	203	914	249	75	5	—	1,446
> 90 to 100	129	284	14	9	—	—	436
> 100	—	1	—	—	—	—	1
Total 15-year or less, amortizing fixed-rate	2,666	13,252	7,303	24,526	107,512	131,334	286,593
Current period gross charge-offs(1)	—	—	—	—	—	1	1
Adjustable-rate and other
≤ 60	56	411	441	1,808	3,336	11,965	18,017
> 60 to 80	141	1,095	1,314	2,432	593	179	5,754
> 80 to 90	53	525	714	670	18	12	1,992
> 90 to 100	24	230	128	114	2	4	502
> 100	—	—	5	11	—	2	18
Total adjustable-rate and other	274	2,261	2,602	5,035	3,949	12,162	26,283
Current period gross charge-offs(1)	—	—	—	—	—	1	1
Total for all loan product types by current LTV ratio:
≤ 60	7,576	59,547	47,738	135,241	681,981	1,140,174	2,072,257
> 60 to 80	18,911	139,728	110,513	186,695	210,194	50,654	716,695
> 80 to 90	7,172	64,209	67,202	54,111	9,397	1,158	203,249
> 90 to 100	10,895	70,991	17,203	8,858	1,104	238	109,289
> 100	15	342	668	966	73	77	2,141
Total Single-Family loans	$44,569	$334,817	$243,324	$385,871	$902,749	$1,192,301	$3,103,631
Total current period gross charge-offs(1)	$—	$2	$8	$21	$23	$93	$147


Freddie Mac 1Q 2025 Form 10-Q						53


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 3


	December 31, 2024
	Year of Origination						Total
(In millions)	2024	2023	2022	2021	2020	Prior
Current LTV ratio:
20- and 30-year or more, amortizing fixed-rate
≤ 60	$47,642	$42,978	$109,174	$566,114	$544,209	$465,059	$1,775,176
> 60 to 80	125,634	106,407	182,774	225,774	48,905	9,859	699,353
> 80 to 90	52,612	69,714	61,282	10,650	813	311	195,382
> 90 to 100	70,104	20,274	8,820	949	124	74	100,345
> 100	168	435	777	59	19	56	1,514
Total 20- and 30-year or more, amortizing fixed-rate	296,160	239,808	362,827	803,546	594,070	475,359	2,771,770
Full-year gross charge-offs(1)	1	10	40	45	35	222	353
15-year or less, amortizing fixed-rate
≤ 60	5,664	4,353	21,308	110,094	85,662	52,305	279,386
> 60 to 80	5,326	3,012	3,986	927	44	7	13,302
> 80 to 90	856	338	103	7	—	—	1,304
> 90 to 100	377	19	10	—	—	—	406
> 100	2	—	—	—	—	—	2
Total 15-year or less, amortizing fixed-rate	12,225	7,722	25,407	111,028	85,706	52,312	294,400
Full-year gross charge-offs(1)	—	—	1	1	1	2	5
Adjustable-rate and other
≤ 60	384	438	1,793	3,355	1,338	11,123	18,431
> 60 to 80	1,065	1,309	2,457	661	49	139	5,680
> 80 to 90	466	766	767	17	1	12	2,029
> 90 to 100	241	150	112	2	—	3	508
> 100	—	2	11	—	—	1	14
Total adjustable-rate and other	2,156	2,665	5,140	4,035	1,388	11,278	26,662
Full-year gross charge-offs(1)	—	—	—	1	—	1	2
Total for all loan product types by current LTV ratio:
≤ 60	53,690	47,769	132,275	679,563	631,209	528,487	2,072,993
> 60 to 80	132,025	110,728	189,217	227,362	48,998	10,005	718,335
> 80 to 90	53,934	70,818	62,152	10,674	814	323	198,715
> 90 to 100	70,722	20,443	8,942	951	124	77	101,259
> 100	170	437	788	59	19	57	1,530
Total Single-Family loans	$310,541	$250,195	$393,374	$918,609	$681,164	$538,949	$3,092,832
Total full-year gross charge-offs(1)	$1	$10	$41	$47	$36	$225	$360

(1)Excludes charge-offs related to accrued interest receivable and advances of pre-foreclosure costs.

Multifamily

The table below presents the amortized cost basis of our multifamily held-for-investment loans, for which we have not elected the fair value option, by credit quality indicator, based on available data through the end of each period presented. These indicators involve significant management judgment and are defined as follows:

n "Pass" is current and adequately protected by the borrower's current financial strength and debt service capacity;

n "Special mention" has administrative issues that may affect future repayment prospects but does not have current credit weaknesses. In addition, this category generally includes loans in forbearance;

n "Substandard" has a weakness that jeopardizes the timely full repayment; and

n "Doubtful" has a weakness that makes collection or liquidation in full highly questionable and improbable based on existing conditions.


Freddie Mac 1Q 2025 Form 10-Q						54


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 3

Table 3.7 - Amortized Cost Basis of Multifamily Held-for-Investment Loans by Credit Quality Indicator and Vintage


	March 31, 2025
	Year of Origination						Total
(In millions)	2025	2024	2023	2022	2021	Prior		Revolving Loans
Category:
Pass	$2,115	$28,943	$14,340	$16,184	$7,183	$13,873	$2,361	$84,999
Special mention	—	50	96	284	109	476	—	1,015
Substandard	—	—	129	520	316	457	—	1,422
Doubtful	—	—	—	—	—	13	—	13
Total	$2,115	$28,993	$14,565	$16,988	$7,608	$14,819	$2,361	$87,449


	December 31, 2024
	Year of Origination						Total
(In millions)	2024	2023	2022	2021	2020	Prior		Revolving Loans
Category:
Pass	$27,713	$14,471	$16,548	$7,179	$6,201	$7,921	$2,426	$82,459
Special mention	50	76	239	39	86	327	—	817
Substandard	—	29	444	329	200	276	—	1,278
Doubtful	—	—	—	—	—	—	—	—
Total	$27,763	$14,576	$17,231	$7,547	$6,487	$8,524	$2,426	$84,554

Past Due Status

The table below presents the amortized cost basis of our single-family and multifamily held-for-investment loans, for which we have not elected the fair value option, by payment status.

Table 3.8 - Amortized Cost Basis of Held-for-Investment Loans by Payment Status(1)


	March 31, 2025
(In millions)	Current	One Month Past Due	Two Months Past Due	Three Months or More Past Due, or in Foreclosure(2)	Total	Non-Accrual With No Allowance(3)
Single-Family:
20- and 30-year or more, amortizing fixed-rate	$2,745,790	$23,421	$6,294	$15,250	$2,790,755	$532
15-year or less, amortizing fixed-rate	284,669	1,210	241	473	286,593	5
Adjustable-rate and other	25,668	282	85	248	26,283	38
Total Single-Family	3,056,127	24,913	6,620	15,971	3,103,631	575
Total Multifamily	87,211	26	5	207	87,449	135
Total Single-Family and Multifamily	$3,143,338	$24,939	$6,625	$16,178	$3,191,080	$710


	December 31, 2024
(In millions)	Current	One Month Past Due	Two Months Past Due	Three Months or More Past Due, or in Foreclosure(2)	Total	Non-Accrual with No Allowance(3)
Single-Family:
20- and 30-year or more, amortizing fixed-rate	$2,722,336	$27,090	$7,588	$14,756	$2,771,770	$465
15-year or less, amortizing fixed-rate	292,207	1,404	291	498	294,400	5
Adjustable-rate and other	26,019	309	101	233	26,662	33
Total Single-Family	3,040,562	28,803	7,980	15,487	3,092,832	503
Total Multifamily	84,288	60	80	126	84,554	75
Total Single-Family and Multifamily	$3,124,850	$28,863	$8,060	$15,613	$3,177,386	$578


Freddie Mac 1Q 2025 Form 10-Q						55


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 3

(1)There were no held-for-investment loans that were three months or more past due and accruing interest as of both March 31, 2025 and December 31, 2024.

(2)Includes $3.0 billion and $2.6 billion of single-family loans that were in the process of foreclosure as of March 31, 2025 and December 31, 2024, respectively.

(3)Loans with no allowance for loan losses primarily represent loans that were previously charged off and for which the amount we expect to collect is sufficiently in excess of the amortized cost to result in recovery of the entire amortized cost basis if the property were foreclosed upon or otherwise subject to disposition. We exclude the amounts of allowance for credit losses on advances of pre-foreclosure costs when determining whether a loan has an allowance for credit losses.

Loan Restructurings

Single-Family Loan Restructurings

We offer several types of restructurings to single-family borrowers that may result in a payment delay, interest rate reduction, term extension, or combination thereof. We do not offer principal forgiveness.

For purposes of the disclosure related to single-family loan restructurings involving borrowers experiencing financial difficulty, we exclude loans that were held-for-sale either at the time of restructuring or at the period end. The table below presents the period-end amortized cost basis of single-family held-for-investment loan restructurings involving borrowers experiencing financial difficulty that we entered into during the periods presented.

Table 3.9 - Single-Family Loan Restructurings Involving Borrowers Experiencing Financial Difficulty(1)


	1Q 2025
(Dollars in millions)	Payment Delay(2)	Payment Delay and Term Extension	Payment Delay, Term Extension, and Interest Rate Reduction	Total	Total as % of Class of Financing Receivable(3)
Single-Family:
20- and 30-year or more, amortizing fixed-rate	$7,308	$1,675	$121	$9,104	0.3	%
15-year or less, amortizing fixed-rate	255	—	—	255	0.1
Adjustable-rate and other	67	4	1	72	0.3
Total Single-Family loan restructurings	$7,630	$1,679	$122	$9,431	0.3


	1Q 2024
(Dollars in millions)	Payment Delay(2)	Payment Delay and Term Extension	Payment Delay, Term Extension, and Interest Rate Reduction	Total	Total as % of Class of Financing Receivable(3)
Single-Family:
20- and 30-year or more, amortizing fixed-rate	$5,461	$1,311	$6	$6,778	0.3	%
15-year or less, amortizing fixed-rate	222	—	—	222	0.1
Adjustable-rate and other	57	4	1	62	0.2
Total Single-Family loan restructurings	$5,740	$1,315	$7	$7,062	0.2

(1) Type of loan restructurings reflects the cumulative effects of the loan restructurings received during the period. Includes loan modifications in the period in which the borrower completes the trial period and the loan is permanently modified. The amortized cost basis of loans in the trial period modification plans was $2.9 billion and $2.2 billion as of March 31, 2025 and March 31, 2024, respectively. Most of these loans are 20- and 30-year or more, amortizing fixed-rate loans.

(2) Includes $2.8 billion and $2.6 billion related to payment deferral plans for 1Q 2025 and 1Q 2024, respectively. Also includes forbearance plans, repayment plans, and loan modifications that only involve payment delays.

(3) Based on the amortized cost basis as of period end, divided by the total period-end amortized cost basis of the corresponding financing receivable class of single-family held-for-investment loans.


Freddie Mac 1Q 2025 Form 10-Q						56


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 3

The table below shows the financial effect of single-family held-for-investment loan restructurings involving borrowers experiencing financial difficulty that we entered into during the periods presented.

Table 3.10 – Financial Effects of Single-Family Loan Restructurings Involving Borrowers Experiencing Financial Difficulty(1)


	1Q 2025
(Dollars in thousands)	Weighted-Average Interest Rate Reduction		Weighted-Average Months of Term Extension	Weighted-Average Payment Deferral or Principal Forbearance(2)
Single-Family:
20- and 30-year or more, amortizing fixed-rate	0.6	%	166	$15
15-year or less, amortizing fixed-rate	—		NM	10
Adjustable-rate and other	0.6		224	11


	1Q 2024
(Dollars in thousands)	Weighted-Average Interest Rate Reduction		Weighted-Average Months of Term Extension	Weighted-Average Payment Deferral or Principal Forbearance(2)
Single-Family:
20- and 30-year or more, amortizing fixed-rate	1.2	%	171	$16
15-year or less, amortizing fixed-rate	—		22	14
Adjustable-rate and other	0.8		217	16

(1) Averages are based on payment deferral plans and loan modifications completed during the periods presented. The financial effects of forbearance plans and repayment plans consist of a payment delay of between one and twelve months. In addition, the financial effect of a forbearance plan is included at the time the forbearance plan is completed if the borrower exits forbearance by entering into a payment deferral plan or loan modification.

(2) Primarily related to payment deferral plans. Amounts are based on non-interest-bearing principal balances on the restructured loans.

The table below provides the amortized cost basis of single-family held-for-investment loans that had a payment default (i.e., loans that became two months delinquent) during the periods presented and had been restructured within the previous 12 months preceding the payment default, when the borrower was experiencing financial difficulty at the time of the restructuring.

Table 3.11 - Subsequent Defaults of Single-Family Restructured Loans Involving Borrowers Experiencing Financial Difficulty(1)


	1Q 2025
(In millions)	Payment Delay	Payment Delay and Term Extension	Payment Delay, Term Extension, and Interest Rate Reduction	Total
Single-Family:
20- and 30-year or more, amortizing fixed-rate	$975	$606	$9	$1,590
15-year or less, amortizing fixed-rate	35	—	—	35
Adjustable-rate and other	11	1	—	12
Total Single-Family	$1,021	$607	$9	$1,637


	1Q 2024
(In millions)	Payment Delay	Payment Delay and Term Extension	Payment Delay, Term Extension, and Interest Rate Reduction	Total
Single-Family:
20- and 30-year or more, amortizing fixed-rate	$798	$397	$5	$1,200
15-year or less, amortizing fixed-rate	30	—	—	30
Adjustable-rate and other	9	—	—	9
Total Single-Family	$837	$397	$5	$1,239

(1) Excludes forbearance plans and repayment plans as borrowers are typically past due based on the loan's original contractual terms at the time the borrowers enter into these plans.


Freddie Mac 1Q 2025 Form 10-Q						57


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 3

The table below provides the single-family held-for-investment loan performance in the 12 months after a restructuring involving borrowers experiencing financial difficulty. While a single-family loan is in a forbearance plan or repayment plan, payments continue to be due based on the loan’s original contractual terms because the loan has not been permanently modified. As a result, we report single-family loans in forbearance plans and repayment plans as delinquent to the extent that payments are past due based on the loan’s original contractual terms. Loans that have been restructured by entering into a payment deferral plan or loan modification are reported as delinquent to the extent that payments are past due based on the loan's restructured terms.

Table 3.12 - Amortized Cost Basis of Single-Family Restructured Loans Involving Borrowers Experiencing Financial Difficulty by Payment Status


	March 31, 2025
(In millions)	Current	One Month Past Due	Two Months Past Due	Three Months or More Past Due	Total
Single-Family:
20- and 30-year or more, amortizing fixed-rate	$12,733	$3,159	$2,000	$7,249	$25,141
15-year or less, amortizing fixed-rate	347	97	66	208	718
Adjustable-rate and other	80	17	18	77	192
Total Single-Family	$13,160	$3,273	$2,084	$7,534	$26,051


	March 31, 2024
(In millions)	Current	One Month Past Due	Two Months Past Due	Three Months or More Past Due	Total
Single-Family:
20- and 30-year or more, amortizing fixed-rate	$11,438	$2,559	$1,363	$5,201	$20,561
15-year or less, amortizing fixed-rate	394	84	49	191	718
Adjustable-rate and other	102	19	14	53	188
Total Single-Family	$11,934	$2,662	$1,426	$5,445	$21,467

Non-Cash Investing and Financing Activities

During 1Q 2025 and 1Q 2024, we acquired $55.7 billion and $41.5 billion, respectively, of loans held-for-investment in exchange for the issuance of debt of consolidated trusts in guarantor swap transactions. We received approximately $27.6 billion and $18.2 billion of loans held-for-investment from sellers during 1Q 2025 and 1Q 2024, respectively, to satisfy advances to lenders that were recorded in other assets on our condensed consolidated balance sheets.


Freddie Mac 1Q 2025 Form 10-Q						58


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 4

NOTE 4

Guarantees and Other Off-Balance Sheet Credit Exposures

Guarantee Activities

The table below presents information about our mortgage-related guarantees and guarantees of Fannie Mae securities, including the UPB of the loans or securities underlying the guarantee, the maximum potential amount of future payments that we could be required to make under the guarantee, the liability we have recognized on our condensed consolidated balance sheets for the guarantee, and the maximum remaining term of the guarantee. This table does not include our unrecognized guarantees, such as guarantees to consolidated VIEs or to resecuritization trusts that do not expose us to incremental credit risk. We do not believe the potential amount of future payments we could be required to make is representative of the actual payments we will be required to make, or the actual loss we are likely to incur, based on our historical loss experience and after consideration of proceeds from related collateral liquidation, including possible recoveries under credit enhancements.

Table 4.1 - Financial Guarantees


	March 31, 2025
(Dollars in millions, terms in years)	UPB	Maximum Exposure	Recognized Liability(1)	Maximum Remaining Term
Single-Family mortgage-related guarantees:
Nonconsolidated securitization products(2)	$30,299	$24,759	$431	40
Other mortgage-related guarantees	7,770	7,770	118	27
Total Single-Family mortgage-related guarantees	38,069	32,529	549
Multifamily mortgage-related guarantees:
Nonconsolidated securitization products(2)(3)	353,002	316,427	4,090	35
Other mortgage-related guarantees	10,839	10,825	362	34
Total Multifamily mortgage-related guarantees	363,841	327,252	4,452
Guarantees of Fannie Mae securities	102,835	102,835	—	37
Other	72	481	—	30


	December 31, 2024
(Dollars in millions, terms in years)	UPB	Maximum Exposure	Recognized Liability(1)	Maximum Remaining Term
Single-Family mortgage-related guarantees:
Nonconsolidated securitization products(2)	$30,038	$24,470	$413	39
Other mortgage-related guarantees	7,941	7,941	127	27
Total Single-Family mortgage-related guarantees	37,979	32,411	540
Multifamily mortgage-related guarantees:
Nonconsolidated securitization products(2)(3)	355,108	317,611	4,219	35
Other mortgage-related guarantees	10,846	10,831	364	34
Total Multifamily mortgage-related guarantees	365,954	328,442	4,583
Guarantees of Fannie Mae securities	104,120	104,120	—	37
Other	79	472	—	30

(1) Excludes allowance for credit losses on off-balance sheet credit exposures. See Note 5 for additional information on our allowance for credit losses on off-balance sheet credit exposures.

(2) Maximum exposure is based on remaining UPB of the guaranteed securities issued by the VIE.

(3) Includes UPB of $0.7 billion as of both March 31, 2025 and December 31, 2024 related to VIEs in which our interest would no longer absorb significant variability as the guaranteed securities have completely paid off. In addition, includes guarantees that are accounted for as derivatives with UPB of $2.0 billion as of both March 31, 2025 and December 31, 2024.


Freddie Mac 1Q 2025 Form 10-Q						59


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 4

The table below presents the payment status of the mortgage loans underlying our mortgage-related guarantees.

Table 4.2 – UPB of Loans Underlying Our Mortgage-Related Guarantees by Payment Status


	March 31, 2025
(In millions)	Current	One Month Past Due	Two Months Past Due	Three Months or More Past Due, or in Foreclosure	Total
Single-Family	$33,664	$2,100	$829	$1,476	$38,069
Multifamily	361,765	154	267	1,655	363,841
Total	$395,429	$2,254	$1,096	$3,131	$401,910


	December 31, 2024
(In millions)	Current	One Month Past Due	Two Months Past Due	Three Months or More Past Due, or in Foreclosure	Total
Single-Family	$33,454	$2,183	$852	$1,490	$37,979
Multifamily	363,983	335	117	1,519	365,954
Total	$397,437	$2,518	$969	$3,009	$403,933

Other Off-Balance Sheet Credit Exposures

In addition to our guarantees, we enter into other agreements that expose us to off-balance sheet credit risk. These agreements may require us to transfer cash before or upon settlement of our contractual obligation. We recognize an allowance for credit losses for those agreements not measured at fair value or otherwise recognized in the financial statements. Most of these commitments expire in less than one year. See Note 5 for additional discussion of our allowance for credit losses on our off-balance sheet credit exposures.

The table below presents our other off-balance sheet credit exposures.

Table 4.3 – Other Off-Balance Sheet Credit Exposures


(In millions)	March 31, 2025	December 31, 2024
Mortgage loan purchase commitments(1)	$11,455	$12,416
Unsettled securities purchased under agreements to resell, net(2)	22,579	10,650
Other commitments(3)	4,054	4,248
Total	$38,088	$27,314

(1)Includes $1.3 billion and $2.0 billion of commitments for which we have elected the fair value option as of March 31, 2025 and December 31, 2024, respectively. Excludes mortgage loan purchase commitments accounted for as derivative instruments. See Note 8 for additional information on commitments accounted for as derivative instruments.

(2)Net of $0.8 billion and $0.4 billion of unsettled securities sold under agreements to repurchase as of March 31, 2025 and December 31, 2024.

(3)Consists of unfunded portion of revolving lines of credit, liquidity guarantees, and other commitments.


Freddie Mac 1Q 2025 Form 10-Q						60


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 5

NOTE 5

Allowance for Credit Losses

The table below summarizes changes in our allowance for credit losses.

Table 5.1 - Details of the Allowance for Credit Losses


	1Q 2025			1Q 2024
(In millions)	Single-Family	Multifamily	Total	Single-Family	Multifamily	Total
Beginning balance	$6,691	$548	$7,239	$6,402	$447	$6,849
Provision (benefit) for credit losses	228	52	280	120	61	181
Charge-offs	(191)	(1)	(192)	(123)	—	(123)
Recoveries collected	27	1	28	26	—	26
Other(1)	96	—	96	83	—	83
Ending balance	$6,851	$600	$7,451	$6,508	$508	$7,016

Components of the ending balance of the allowance for credit losses:
Mortgage loans held-for-investment	$6,543	$431	$6,974	$6,189	$381	$6,570
Other(2)	308	169	477	319	127	446


Total ending balance	$6,851	$600	$7,451	$6,508	$508	$7,016

(1)Primarily includes capitalization of past due interest related to non-accrual loans that received payment deferral plans and loan modifications.

(2)Includes allowance for credit losses related to advances of pre-foreclosure costs and off-balance sheet credit exposures.


Freddie Mac 1Q 2025 Form 10-Q						61


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 6

NOTE 6

Investment Securities

The table below summarizes the fair values of our investments in debt securities by classification.

Table 6.1 - Investment Securities


(In millions)	March 31, 2025	December 31, 2024
Trading securities	$55,194	$51,872
Available-for-sale securities	3,860	3,899
Total fair value of investment securities	$59,054	$55,771

Trading Securities

The table below presents the fair values of our trading securities by major security type. Our non-mortgage-related securities primarily consist of investments in U.S. Treasury securities.

Table 6.2 - Trading Securities


(In millions)	March 31, 2025	December 31, 2024
Mortgage-related securities	$9,315	$9,158
Non-mortgage-related securities	45,879	42,714
Total fair value of trading securities	$55,194	$51,872

The table below provides details of our net trading gains (losses) recognized during the periods presented.

Table 6.3 - Net Trading Gains (Losses)


(In millions)	1Q 2025	1Q 2024
Net trading gains (losses)	$361	($238)
Less: Net trading gains (losses) on securities sold	18	(75)
Net trading gains (losses) related to securities still held at period end	$343	($163)

Available-for-Sale Securities

At both March 31, 2025 and December 31, 2024, all available-for-sale securities were mortgage-related securities.

The table below provides details of the securities classified as available-for-sale on our condensed consolidated balance sheets.

Table 6.4 - Available-for-Sale Securities


	March 31, 2025
	Amortized Cost Basis	Gross Unrealized Gains in Other Comprehensive Income	Gross Unrealized Losses in Other Comprehensive Income	Fair Value	Accrued Interest Receivable
(In millions)
Agency mortgage-related securities	$3,454	$9	($72)	$3,391	$7
Other mortgage-related securities	286	196	(13)	469	3
Total available-for-sale securities	$3,740	$205	($85)	$3,860	$10


	December 31, 2024
	Amortized Cost Basis	Gross Unrealized Gains in Other Comprehensive Income	Gross Unrealized Losses in Other Comprehensive Income	Fair Value	Accrued Interest Receivable
(In millions)
Agency mortgage-related securities	$3,528	$4	($100)	$3,432	$7
Other mortgage-related securities	287	194	(14)	467	3
Total available-for-sale securities	$3,815	$198	($114)	$3,899	$10


Freddie Mac 1Q 2025 Form 10-Q						62


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 6

The fair value of our available-for-sale securities held at March 31, 2025 scheduled to contractually mature after ten years was $1.4 billion, with an additional $1.2 billion scheduled to contractually mature after five years through ten years.

The table below presents available-for-sale securities in a gross unrealized loss position and whether such securities have been in an unrealized loss position for less than 12 months, or 12 months or greater.

Table 6.5 - Available-for-Sale Securities in a Gross Unrealized Loss Position


	March 31, 2025
	Less than 12 Months		12 Months or Greater
(In millions)	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
Agency mortgage-related securities	$300	($2)	$2,148	($70)
Other mortgage-related securities	10	—	31	(13)
Total available-for-sale securities in a gross unrealized loss position	$310	($2)	$2,179	($83)


	December 31, 2024
	Less than 12 Months		12 Months or Greater
(In millions)	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
Agency mortgage-related securities	$448	($6)	$2,198	($95)
Other mortgage-related securities	33	—	31	(13)
Total available-for-sale securities in a gross unrealized loss position	$481	($6)	$2,229	($108)

At March 31, 2025, the gross unrealized losses relate to 135 securities.

The table below summarizes the total proceeds, gross realized gains, and gross realized losses from sales of available-for-sale securities.

Table 6.6 - Total Proceeds, Gross Realized Gains, and Gross Realized Losses from Sales of Available-for-Sale Securities(1)


(In millions)									1Q 2024
Gross realized gains									$1
Gross realized losses									(6)
Net realized gains (losses)									($5)
Total proceeds									$399

(1)There were no sales of available-for-sale securities during the quarter ended March 31, 2025.

Non-Cash Investing and Financing Activities

During 1Q 2025 and 1Q 2024, we derecognized $0.8 billion and $0.5 billion, respectively, of mortgage-related securities and debt of consolidated trusts where we were no longer deemed the primary beneficiary.


Freddie Mac 1Q 2025 Form 10-Q						63


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 7

NOTE 7

Debt

The table below summarizes the balances of total debt on our condensed consolidated balance sheets.

Table 7.1 - Total Debt


(In millions)	March 31, 2025	December 31, 2024
Debt of consolidated trusts	$3,145,248	$3,122,941
Debt of Freddie Mac:
Short-term debt	14,407	14,675
Long-term debt	165,446	167,333
Total debt of Freddie Mac	179,853	182,008
Total debt	$3,325,101	$3,304,949

Debt of Consolidated Trusts

The table below summarizes the debt of consolidated trusts based on underlying loan product type.

Table 7.2 - Debt of Consolidated Trusts


	March 31, 2025					December 31, 2024
(Dollars in millions)	Contractual Maturity	UPB	Carrying Amount(1)	Weighted Average Coupon(2)		Contractual Maturity	UPB	Carrying Amount(1)	Weighted Average Coupon(2)
Single-Family:
20-and 30-year or more, fixed-rate	2025 - 2061	$2,723,857	$2,757,251	3.40	%	2025 - 2061	$2,701,936	$2,736,057	3.34	%
15-year or less, fixed-rate	2025 - 2040	283,717	287,292	2.33		2025 - 2040	291,054	294,875	2.30
Adjustable-rate and other	2025 - 2055	22,527	22,835	4.43		2025 - 2055	22,861	23,224	4.42
Total Single-Family		3,030,101	3,067,378				3,015,851	3,054,156
Multifamily	2025 - 2054	79,326	77,870	3.68		2025 - 2054	70,130	68,785	3.58
Total debt of consolidated trusts		$3,109,427	$3,145,248				$3,085,981	$3,122,941

(1)Includes $3.0 billion and $2.0 billion as of March 31, 2025 and December 31, 2024, respectively, of debt of consolidated trusts that represents the fair value of debt for which the fair value option was elected.

(2)The effective interest rate for debt of consolidated trusts was 3.10% and 3.01% as of March 31, 2025 and December 31, 2024, respectively.

Short-Term Debt

The table below summarizes the balances and effective interest rates for our short-term debt (debt with original maturities of one year or less).

Table 7.3 - Short-Term Debt


(Dollars in millions)	March 31, 2025		December 31, 2024
Par value	$14,457		$14,716
Carrying amount	14,407		14,675
Weighted average effective rate	4.29	%	4.59	%


Freddie Mac 1Q 2025 Form 10-Q						64


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 7

Long-Term Debt

The table below summarizes our long-term debt.

Table 7.4 - Long-Term Debt


	March 31, 2025					December 31, 2024
(Dollars in millions)	Contractual Maturity	Par Value	Carrying Amount(1)	Weighted Average Effective Rate(2)		Contractual Maturity	Par Value	Carrying Amount(1)	Weighted Average Effective Rate(2)
Fixed-rate(3)	2025 - 2054	$128,110	$124,760	3.17	%	2025 - 2054	$130,965	$126,815	3.09	%
Variable-rate(4)	2025 - 2035	36,100	36,091	5.16		2025 - 2034	35,906	35,893	5.16
Zero-coupon	2025 - 2039	4,748	3,303	6.24		2025 - 2039	4,748	3,254	6.22
Other(5)	2025 - 2053	1,249	1,292	10.83		2025 - 2053	1,324	1,371	10.90
Total long-term debt		$170,207	$165,446	3.71			$172,943	$167,333	3.65

(1)Represents par value, net of associated discounts or premiums and issuance costs. Includes $0.3 billion at both March 31, 2025 and December 31, 2024 of long-term debt that represents the fair value of debt for which the fair value option was elected. Includes hedge-related basis adjustments.

(2)Based on carrying amount. Excludes hedge-related basis adjustments.

(3)Includes $112.7 billion and $112.6 billion of callable debt as of March 31, 2025 and December 31, 2024, respectively.

(4)Includes $1.5 billion and $1.3 billion of callable debt as of March 31, 2025 and December 31, 2024, respectively.

(5)Includes STACR, SCR debt notes, and IO debt.

A portion of our long-term debt is callable. Callable debt gives us the option to redeem the debt security at par on one or more specified call dates or at any time on or after a specified call date.

The table below summarizes contractual maturities of long-term debt securities at March 31, 2025.

Table 7.5 - Contractual Maturities of Long-Term Debt(1)


(In millions)						Par Value
2025						$40,859
2026						42,409
2027						16,041
2028						14,108
2029						24,344
Thereafter						31,197
Total						$168,958

(1)Excludes $1.2 billion of STACR and $0.1 billion of SCR debt notes. Contractual maturities of these debt securities are not presented because they are subject to prepayment risk, as their payments are based upon the performance of a pool of mortgage assets that may be prepaid by the related mortgage borrowers at any time generally without penalty.


Freddie Mac 1Q 2025 Form 10-Q						65


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 8

NOTE 8

Derivatives

We analyze the interest-rate sensitivity of financial assets and liabilities across a variety of interest-rate scenarios based on market prices, models, and economics. We use derivatives primarily to hedge interest-rate sensitivity mismatches between our financial assets and liabilities. We principally use interest-rate swaps, purchased or written options (including swaptions), and exchange-traded futures in our interest-rate risk management activities. We designate certain derivatives as hedging instruments in qualifying hedge accounting relationships. Interest-rate risk management derivatives that are not designated in qualifying hedge accounting relationships are economic hedges of financial instruments measured at fair value on a recurring basis or of other transactions or instruments that expose us to interest-rate risk. When we use derivatives to mitigate our exposures, we consider a number of factors, including cost, exposure to counterparty credit risk, and our overall risk management strategy.

We apply fair value hedge accounting to certain single-family mortgage loans and certain issuances of debt where we hedge the changes in fair value of these items attributable to the designated benchmark interest rate, using interest-rate swaps.

Derivative Assets and Liabilities at Fair Value

The table below presents the notional value and fair value of derivatives reported on our condensed consolidated balance sheets.

Table 8.1 - Derivative Assets and Liabilities at Fair Value


	March 31, 2025			December 31, 2024
	Notional or Contractual Amount	Derivative Assets	Derivative Liabilities	Notional or Contractual Amount	Derivative Assets	Derivative Liabilities
(In millions)
Not designated as hedges
Interest-rate risk management derivatives:
Swaps	$413,151	$1,238	($340)	$382,761	$1,512	($340)
Written options	36,261	—	(1,663)	33,117	—	(1,826)
Purchased options(1)	143,540	4,427	—	126,750	4,649	—
Futures	60,935	—	—	165,894	—	—
Total interest-rate risk management derivatives	653,887	5,665	(2,003)	708,522	6,161	(2,166)
Mortgage commitment derivatives	41,640	22	(16)	37,407	26	(40)
CRT-related derivatives(2)	28,885	—	(162)	28,962	—	(186)
Other	23,216	69	(601)	20,505	94	(695)
Total derivatives not designated as hedges	747,628	5,756	(2,782)	795,396	6,281	(3,087)
Designated as fair value hedges
Interest-rate risk management derivatives:
Swaps	138,684	206	(3,425)	159,086	209	(4,149)
Total derivatives designated as fair value hedges	138,684	206	(3,425)	159,086	209	(4,149)
Receivables (payables)		15	(23)		91	—
Netting adjustments(3)		(5,128)	5,415		(6,080)	6,282
Total derivative portfolio, net	$886,312	$849	($815)	$954,482	$501	($954)

(1)Includes swaptions on credit indices with a notional or contractual amount of $6.5 billion and $6.8 billion at March 31, 2025 and December 31, 2024, respectively, and a fair value of $3.0 million and $1.0 million at March 31, 2025 and December 31, 2024, respectively.

(2)Includes derivative instruments related to CRT transactions that are considered freestanding credit enhancements.

(3)Represents counterparty netting and cash collateral netting.


Freddie Mac 1Q 2025 Form 10-Q						66


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 8

Derivative Counterparty Credit Risk

The table below presents offsetting and collateral information related to derivatives which are subject to enforceable master netting agreements or similar arrangements.

Table 8.2 - Offsetting of Derivatives


	March 31, 2025		December 31, 2024
	Derivative Assets	Derivative Liabilities	Derivative Assets	Derivative Liabilities
(In millions)
OTC derivatives	$5,879	($5,430)	$6,360	($6,315)
Cleared and exchange-traded derivatives	7	(17)	74	—
Mortgage commitment derivatives	22	(22)	53	(40)
Other	69	(761)	94	(881)
Total derivatives	5,977	(6,230)	6,581	(7,236)
Counterparty netting	(3,462)	3,462	(3,906)	3,906
Cash collateral netting(1)	(1,666)	1,953	(2,174)	2,376
Net amount presented in the condensed consolidated balance sheets	849	(815)	501	(954)
Gross amount not offset in the condensed consolidated balance sheets(2)	(679)	11	(190)	11
Net amount	$170	($804)	$311	($943)

(1)Excess cash collateral held is presented as a derivative liability, while excess cash collateral posted is presented as a derivative asset.

(2)Does not include the fair value amount of non-cash collateral posted or held that exceeds the associated net asset or liability, netted by counterparty, presented on the condensed consolidated balance sheets.

Gains and Losses on Derivatives

The table below presents the gains and losses on derivatives not designated in qualifying hedge relationships. These amounts are reported on our condensed consolidated statements of income as investment gains, net.

Table 8.3 - Gains and Losses on Derivatives


(In millions)	1Q 2025	1Q 2024
Interest-rate risk management derivatives:
Swaps	($317)	$262
Written options	126	37
Purchased options	(216)	56
Futures	(166)	374
Total interest-rate risk management derivatives fair value gains (losses)	(573)	729
Mortgage commitment derivatives	(108)	40
CRT-related derivatives(1)	44	(43)
Other	111	(108)
Total derivatives not designated as hedges fair value gains (losses)	($526)	$618

(1)Includes derivative instruments related to CRT transactions that are considered freestanding credit enhancements.


Freddie Mac 1Q 2025 Form 10-Q						67


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 8

Hedge Accounting

The table below presents the effects of fair value hedge accounting by condensed consolidated statements of income line item, including the gains and losses on derivatives and hedged items designated in qualifying hedge relationships and other components due to the application of hedge accounting.

Table 8.4 - Gains and Losses on Fair Value Hedges


	1Q 2025		1Q 2024
(In millions)	Interest Income	Interest Expense	Interest Income	Interest Expense
Total amounts of income and expense line items presented in our condensed consolidated statements of income in which the effects of fair value hedges are recorded:	$31,365	($26,263)	$28,385	($23,626)

Interest contracts on mortgage loans held-for-investment:
Gain (loss) on fair value hedging relationships:
Hedged items	695	—	(995)	—
Derivatives designated as hedging instruments	(772)	—	953	—
Interest accruals on hedging instruments	129	—	234	—
Discontinued hedge related basis adjustments amortization	66	—	43	—
Interest contracts on debt:
Gain (loss) on fair value hedging relationships:
Hedged items	—	(801)	—	134
Derivatives designated as hedging instruments	—	811	—	(127)
Interest accruals on hedging instruments	—	(478)	—	(929)
Discontinued hedge related basis adjustment amortization	—	(11)	—	(2)
Total impact of fair value hedge accounting	$118	($479)	$235	($924)

The table below presents the cumulative basis adjustments and the carrying amounts of the hedged item by its respective balance sheet line item.

Table 8.5 - Cumulative Basis Adjustments Due to Fair Value Hedging


	March 31, 2025
	Carrying Amount Assets / (Liabilities)	Cumulative Amount of Fair Value Hedging Basis Adjustment Included in the Carrying Amount			Closed Portfolio Under the Portfolio Layer Method
(In millions)		Total	Under the Portfolio Layer Method	Discontinued - Hedge Related	Total Amount by Amortized Cost Basis	Designated Amount by UPB
Mortgage loans held-for-investment	$1,127,264	($3,148)	($386)	($2,762)	$47,734	$9,155
Mortgage loans held-for-sale	138	1	—	1	—	—
Debt	(105,529)	3,252	—	16	—	—

	December 31, 2024
	Carrying Amount Assets / (Liabilities)	Cumulative Amount of Fair Value Hedging Basis Adjustment Included in the Carrying Amount			Closed Portfolio Under the Portfolio Layer Method
(In millions)		Total	Under the Portfolio Layer Method	Discontinued - Hedge Related	Total Amount by Amortized Cost Basis	Designated Amount by UPB
Mortgage loans held-for-investment	$1,117,060	($3,909)	($695)	($3,214)	$56,394	$12,070

Debt	(107,241)	4,050	—	19	—	—


Freddie Mac 1Q 2025 Form 10-Q						68


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 9

NOTE 9

Collateralized Agreements

Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase

The table below presents offsetting and collateral information related to securities purchased under agreements to resell, and securities sold under agreements to repurchase, which are subject to enforceable master netting agreements or similar arrangements.

Table 9.1 - Offsetting and Collateral Information of Certain Financial Assets and Liabilities


	March 31, 2025		December 31, 2024
(In millions)	Securities Purchased Under Agreements to Resell	Securities Sold Under Agreements to Repurchase	Securities Purchased Under Agreements to Resell	Securities Sold Under Agreements to Repurchase
Gross amount recognized	$109,306	($4,236)	$108,338	($8,220)
Amount offset in the condensed consolidated balance sheets	(4,236)	4,236	(8,220)	8,220
Net amount presented in the condensed consolidated balance sheets	105,070	—	100,118	—
Gross amount not offset in the condensed consolidated balance sheets(1)	(105,070)	—	(100,118)	—
Net amount	$—	$—	$—	$—

(1)For securities purchased under agreements to resell, includes $109.4 billion and $104.9 billion of collateral that we had the right to repledge as of March 31, 2025 and December 31, 2024, respectively. We did not repledge collateral at March 31, 2025 and December 31, 2024.

The table below presents the remaining contractual maturity of our gross obligations for our securities sold under agreements to repurchase. The collateral for such obligations consisted primarily of U.S. Treasury securities.

Table 9.2 - Remaining Contractual Maturity



(In millions)	March 31, 2025	December 31, 2024
Overnight and continuous	$4,236	$—
30 days or less	—	8,220
After 30 days through 90 days	—	—
Greater than 90 days	—	—
Total	$4,236	$8,220

Collateral Pledged

The table below summarizes the fair value of the securities pledged as collateral by us for derivatives and collateralized borrowing transactions, including securities that the secured party may repledge.

Table 9.3 - Collateral in the Form of Securities Pledged


(In millions)	March 31, 2025	December 31, 2024
Trading securities	$8,417	$9,559


Freddie Mac 1Q 2025 Form 10-Q						69


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 10

NOTE 10

Net Interest Income

The table below presents the components of net interest income per our condensed consolidated statements of income.

Table 10.1 - Components of Net Interest Income


(In millions)	1Q 2025	1Q 2024
Interest income
Mortgage loans	$29,395	$26,229
Investment securities	620	470
Securities purchased under agreements to resell	1,240	1,532
Other	110	154
Total interest income	31,365	28,385
Interest expense
Debt of consolidated trusts	(24,059)	(21,122)
Debt of Freddie Mac:
Short-term debt	(204)	(256)
Long-term debt	(2,000)	(2,248)
Total interest expense	(26,263)	(23,626)
Net interest income	5,102	4,759
(Provision) benefit for credit losses	(280)	(181)
Net interest income after (provision) benefit for credit losses	$4,822	$4,578


Freddie Mac 1Q 2025 Form 10-Q						70


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 11

NOTE 11

Segment Reporting

As shown in the table below, we have two reportable segments, Single-Family and Multifamily.


Segment			Description
Single-Family			Reflects results from our purchase, securitization, and guarantee of single-family loans, our investments in single-family loans and mortgage-related securities, the management of Single-Family mortgage credit risk and market risk, and any results of our treasury function that are not allocated to each segment.


Multifamily			Reflects results from our purchase, securitization, and guarantee of multifamily loans, our investments in multifamily loans and mortgage-related securities, and the management of Multifamily mortgage credit risk and market risk.

Segment Results

The table below presents the financial results for our Single-Family and Multifamily segments.

Table 11.1 - Segment Financial Results


	1Q 2025			1Q 2024

(In millions)	Single-Family	Multifamily	Total	Single-Family	Multifamily	Total
Net interest income
Interest income	$30,046	$1,319	$31,365	$27,441	$944	$28,385
Interest expense	(25,293)	(970)	(26,263)	(22,953)	(673)	(23,626)
Net interest income	4,753	349	5,102	4,488	271	4,759
Non-interest income
Guarantee income	23	417	440	19	477	496
Investment gains, net	61	131	192	(86)	491	405
Other income	81	37	118	53	44	97
Non-interest income	165	585	750	(14)	1,012	998
Net revenues	4,918	934	5,852	4,474	1,283	5,757
(Provision) benefit for credit losses	(228)	(52)	(280)	(120)	(61)	(181)
Non-interest expense
Administrative expense(1)	(523)	(153)	(676)	(542)	(150)	(692)
Credit enhancement expense	(491)	(49)	(540)	(557)	(40)	(597)
Legislative and regulatory assessments	(807)	(10)	(817)	(776)	(11)	(787)
Other expense	(50)	(5)	(55)	(50)	4	(46)
Non-interest expense	(1,871)	(217)	(2,088)	(1,925)	(197)	(2,122)
Income before income tax expense	2,819	665	3,484	2,429	1,025	3,454
Income tax expense	(558)	(132)	(690)	(484)	(204)	(688)
Net income	2,261	533	2,794	1,945	821	2,766
Other comprehensive income (loss), net of taxes and reclassification adjustments	8	26	34	(5)	(20)	(25)
Comprehensive income	$2,269	$559	$2,828	$1,940	$801	$2,741

(1)Includes salaries and employee benefits and professional services, technology, and occupancy.


Freddie Mac 1Q 2025 Form 10-Q						71


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 11

The table below presents total assets for our Single-Family and Multifamily segments.

Table 11.2 - Segment Assets


(In millions)	March 31, 2025	December 31, 2024
Single-Family	$3,115,180	$3,104,174
Multifamily	466,500	466,635
Total segment assets	3,581,680	3,570,809
Reconciling items(1)	(172,564)	(184,117)
Total assets per condensed consolidated balance sheets	$3,409,116	$3,386,692

(1)Reconciling items include (1) assets in our mortgage portfolio that are not recognized on our condensed consolidated balance sheets and (2) assets recognized on our condensed consolidated balance sheets that are not allocated to the reportable segments.


Freddie Mac 1Q 2025 Form 10-Q						72


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 12

NOTE 12

Concentration of Credit and Other Risks

Single-Family Mortgage Portfolio

The table below summarizes the concentration by geographic area of our Single-Family mortgage portfolio. See Note 2, Note 3, Note 4, and Note 5 for additional information about credit risk associated with single-family loans that we hold or guarantee.

Table 12.1 - Concentration of Credit Risk of Our Single-Family Mortgage Portfolio


	March 31, 2025
(Dollars in millions)	Portfolio UPB(1)	% of Portfolio		SDQ Rate
Region:(2)
West	$919,874	30	%	0.45	%
Northeast	719,229	23		0.61
Southeast	552,218	18		0.73
Southwest	469,181	15		0.61
North Central	454,351	14		0.58
Total	$3,114,853	100	%	0.59
State:
California	$514,199	17	%	0.45
Texas	224,716	7		0.68
Florida	209,606	7		0.95
New York	136,026	4		0.87
Illinois	116,194	4		0.73
All other	1,914,112	61		0.54
Total	$3,114,853	100	%	0.59

(1)Excludes UPB of loans underlying certain securitization products for which data was not available.

(2)Region designation: West (AK, AS, AZ, CA, GU, HI, ID, MP, MT, NV, OR, UT, WA); Northeast (CT, DE, DC, MA, ME, MD, NH, NJ, NY, PA, RI, VT, VA, WV); Southeast (AL, FL, GA, KY, MS, NC, PR, SC, TN, U.S. VI); Southwest (AR, CO, KS, LA, MO, NE, NM, OK, TX, WY); North Central (IL, IN, IA, MI, MN, ND, OH, SD, WI).


Freddie Mac 1Q 2025 Form 10-Q						73


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 12

Multifamily Mortgage Portfolio

The table below summarizes the concentration by geographic area of our Multifamily mortgage portfolio. See Note 2, Note 3, Note 4, and Note 5 for additional information about credit risk associated with multifamily loans that we hold or guarantee.

Table 12.2 - Concentration of Credit Risk of Our Multifamily Mortgage Portfolio


	March 31, 2025
(Dollars in millions)	Portfolio UPB	% of Portfolio		Delinquency Rate(1)
Region(2)(3):
Northeast	$116,139	25	%	0.80	%
West	112,509	24		0.20
Southeast	95,980	21		0.21
Southwest	94,978	20		0.46
North Central	46,894	10		0.79
Total	$466,500	100	%	0.46
State(3):
California	$60,701	13	%	0.31
Texas	59,796	13		0.55
Florida	40,615	9		0.23
New York	37,145	8		1.96
Georgia	19,655	4		0.08
All other	248,588	53		0.33
Total	$466,500	100	%	0.46

(1)Based on loans two monthly payments or more delinquent or in foreclosure.

(2)Region designation: Northeast (CT, DE, DC, MA, ME, MD, NH, NJ, NY, PA, RI, VT, VA, WV); West (AK, AS, AZ, CA, GU, HI, ID, MP, MT, NV, OR, UT, WA); Southeast (AL, FL, GA, KY, MS, NC, PR, SC, TN, U.S. VI); Southwest (AR, CO, KS, LA, MO, NE, NM, OK, TX, WY); North Central (IL, IN, IA, MI, MN, ND, OH, SD, WI).

(3)Loans collateralized by properties located in multiple regions or states are reported entirely in the region or state with the largest UPB as of origination.


Freddie Mac 1Q 2025 Form 10-Q						74


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 13

NOTE 13

Fair Value Disclosures

We use fair value measurements for the initial recording of certain assets and liabilities and periodic remeasurement of certain assets and liabilities on a recurring or non-recurring basis.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The table below presents our assets and liabilities measured on our condensed consolidated balance sheets at fair value on a recurring basis subsequent to initial recognition, including instruments where we have elected the fair value option.

Table 13.1 - Assets and Liabilities Measured at Fair Value on a Recurring Basis


	March 31, 2025
(In millions)	Level 1	Level 2	Level 3	Netting Adjustments(1)	Total
Assets:
Investment securities:
Available-for-sale	$—	$3,276	$584	$—	$3,860
Trading:
Mortgage-related securities	—	6,255	3,060	—	9,315
Non-mortgage-related securities	45,451	428	—	—	45,879
Total trading securities	45,451	6,683	3,060	—	55,194
Total investment securities	45,451	9,959	3,644	—	59,054
Mortgage loans held-for-sale	—	10,408	155	—	10,563
Mortgage loans held-for-investment	—	1,888	737	—	2,625
Other assets:
Guarantee assets	—	—	5,100	—	5,100
Derivative assets, net	6	5,886	70	(5,113)	849
Other assets	—	40	221	—	261
Total other assets	6	5,926	5,391	(5,113)	6,210
Total assets carried at fair value on a recurring basis	$45,457	$28,181	$9,927	($5,113)	$78,452
Liabilities:
Debt:
Debt of consolidated trusts	$—	$2,947	$17	$—	$2,964
Debt of Freddie Mac	—	214	100	—	314
Total debt	—	3,161	117	—	3,278
Other liabilities:
Derivative liabilities, net	—	6,120	87	(5,392)	815
Other liabilities	—	—	—	—	—
Total other liabilities	—	6,120	87	(5,392)	815
Total liabilities carried at fair value on a recurring basis	$—	$9,281	$204	($5,392)	$4,093


Freddie Mac 1Q 2025 Form 10-Q						75


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 13


	December 31, 2024
(In millions)	Level 1	Level 2	Level 3	Netting Adjustments(1)	Total
Assets:
Investment securities:
Available-for-sale	$—	$3,316	$583	$—	$3,899
Trading:
Mortgage-related securities	—	6,131	3,027	—	9,158
Non-mortgage-related securities	42,289	425	—	—	42,714
Total trading securities	42,289	6,556	3,027	—	51,872
Total investment securities	42,289	9,872	3,610	—	55,771
Mortgage loans held-for-sale	—	10,099	1,295	—	11,394
Mortgage loans held-for-investment	—	1,572	841	—	2,413
Other assets:
Guarantee assets	—	—	5,126	—	5,126
Derivative assets, net	9	6,387	94	(5,989)	501
Other assets	—	24	219	—	243
Total other assets	9	6,411	5,439	(5,989)	5,870
Total assets carried at fair value on a recurring basis	$42,298	$27,954	$11,185	($5,989)	$75,448
Liabilities:
Debt:
Debt of consolidated trusts	$—	$1,996	$17	$—	$2,013
Debt of Freddie Mac	—	241	85	—	326
Total debt	—	2,237	102	—	2,339
Other liabilities:
Derivative liabilities, net	—	7,116	120	(6,282)	954
Other liabilities	—	5	19	—	24
Total other liabilities	—	7,121	139	(6,282)	978
Total liabilities carried at fair value on a recurring basis	$—	$9,358	$241	($6,282)	$3,317

(1) Represents counterparty netting and cash collateral netting, and includes accrued interest receivable and payable.


Freddie Mac 1Q 2025 Form 10-Q						76


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 13

Level 3 Fair Value Measurements

The table below presents a reconciliation of all assets and liabilities measured on our condensed consolidated balance sheets at fair value on a recurring basis using significant unobservable inputs (Level 3), including transfers into and out of Level 3. The table also presents gains and losses due to changes in fair value, including both realized and unrealized gains and losses, recognized on our condensed consolidated statements of income for Level 3 assets and liabilities.

Table 13.2 - Fair Value Measurements of Assets and Liabilities Using Significant Unobservable Inputs


	1Q 2025
(In millions)	Investment Securities	Mortgage Loans Held-for-Sale	Mortgage Loans Held-for-Investment	Other Assets	Total Liabilities
Balance at January 1, 2025	$3,610	$1,295	$841	$5,439	$241
Total realized/unrealized gains/losses(1)
Included in earnings	(17)	3	10	79	(36)
Included in other comprehensive income	5	—	—	—	—
Purchases	88	32	—	—	—
Issues	—	—	—	153	3
Sales	—	—	—	(6)	—
Settlements, net	(42)	—	(55)	(274)	(3)
Transfers into Level 3	—	—	31	—	17
Transfers out of Level 3(3)	—	(1,175)	(90)	—	(18)
Balance at March 31, 2025	$3,644	$155	$737	$5,391	$204
Change in unrealized gains/losses(1) included in net income related to assets and liabilities still held as of March 31, 2025(2)	$109	$3	$6	$79	($36)
Change in unrealized gains/losses(1), net of tax, included in OCI related to assets and liabilities still held as of March 31, 2025	4	—	—	—	—


	1Q 2024
(In millions)	Investment Securities	Mortgage Loans Held-for-Sale	Mortgage Loans Held-for-Investment	Other Assets	Total Liabilities
Balance at January 1, 2024	$3,449	$896	$473	$5,519	$496
Total realized/unrealized gains/losses(1)
Included in earnings	(112)	(6)	(24)	131	20
Included in other comprehensive income	(5)	—	—	—	—
Purchases	359	294	—	(10)	(2)
Issues	—	—	—	106	19
Sales	—	(273)	—	(5)	—
Settlements, net	(52)	—	(47)	(201)	(4)
Transfers into Level 3	—	35	298	—	—
Transfers out of Level 3	—	(159)	(5)	—	—
Balance at March 31, 2024	$3,639	$787	$695	$5,540	$529
Change in unrealized gains/losses(1) included in net income related to assets and liabilities still held as of March 31, 2024(2)	$19	($7)	($29)	$130	$26
Change in unrealized gains/losses(1), net of tax, included in OCI related to assets and liabilities still held as of March 31, 2024	(4)	—	—	—	—

(1)For assets, increase and decrease in earnings and other comprehensive income is shown as gains and (losses), respectively. For liabilities, increase and decrease in earnings and comprehensive income is shown as (gains) and losses, respectively.

(2)Represents the amount of total gains or losses for the period, included in earnings, attributable to the change in unrealized gains and losses related to assets and liabilities classified as Level 3 that were still held at March 31, 2025 and March 31, 2024, respectively.

(3)Transfers out of level 3 during 1Q 2025 were primarily driven by a decline in the significance of the unobservable inputs for certain multifamily loans.

The table below provides valuation techniques, the range, and the weighted average of significant unobservable inputs for Level 3 assets and liabilities measured on our condensed consolidated balance sheets at fair value on a recurring basis.


Freddie Mac 1Q 2025 Form 10-Q						77


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 13

Table 13.3 - Quantitative Information about Recurring Level 3 Fair Value Measurements

March 31, 2025

Level 3

Fair

Value

Predominant

Valuation

Technique(s)

Unobservable Inputs

(Dollars in millions, except for certain unobservable inputs as shown)

Type

Range

Weighted

Average(1)

Assets

Investment securities

$2,289

External pricing sources

Price

$0.0 - $3,675.6

$95.6

1,355

Other

Mortgage loans held-for-sale

155

External pricing sources

Price

$95.2 - $105.9

$101.0

Mortgage loans held-for-investment

737

External pricing sources

Price

$21.6 - $101.8

$83.4

Other assets

4,794

Discounted cash flows

OAS

17 - 3,500 bps

48 bps

597

Other

Total Level 3 assets

$9,927

Liabilities

Total Level 3 liabilities

$204

December 31, 2024

Level 3
Fair
Value

Predominant
Valuation
Technique(s)

Unobservable Inputs

(Dollars in millions, except for certain unobservable inputs as shown)

Type

Range

Weighted

Average(1)

Assets

Investment securities

$2,344

External pricing sources

Price

$0.0 - $3,652.7

$99.1

1,266

Other

Mortgage loans held-for-sale

1,295

External pricing sources

Price

$87.8 - $104.4

$96.4

Mortgage loans held-for-investment

841

External pricing sources

Price

$29.2 - $100.0

$83.1

Other assets

4,816

Discounted cash flows

OAS

17 - 3,500 bps

48 bps

623

Other

Total Level 3 assets

$11,185

Liabilities

Total Level 3 liabilities

$241

(1) Unobservable inputs were weighted primarily by the relative fair value of the financial instruments.

Assets Measured at Fair Value on a Non-Recurring Basis

We may be required, from time to time, to measure certain assets at fair value on a non-recurring basis. The table below presents assets measured on our condensed consolidated balance sheets at fair value on a non-recurring basis.

Table 13.4 - Assets Measured at Fair Value on a Non-Recurring Basis


(In millions)	March 31, 2025	December 31, 2024
Mortgage loans:(1)
Level 1	$—	$—
Level 2	319	303
Level 3(2)	1,321	1,474
Total	$1,640	$1,777

(1)Includes loans that are classified as held-for-investment where we recognize credit losses, either through an allowance for credit losses or charge-off, based on the fair value of the underlying collateral and held-for-sale loans where the fair value is below cost. The valuation date for certain items may occur during the period and not at period end.

(2)The predominant valuation technique used for Level 3 non-recurring fair value measurement at both March 31, 2025 and December 31, 2024 was external pricing sources. The unobservable inputs included a range of $76.0 - $102.0 and weighted average of $82.8 at March 31, 2025 and a range of $74.1 - $100.4 and weighted average of $82.3 at December 31, 2024.


Freddie Mac 1Q 2025 Form 10-Q						78


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 13

Fair Value of Financial Instruments

The table below presents the carrying value and estimated fair value of our financial instruments. For certain types of financial instruments, such as cash and cash equivalents, securities purchased under agreements to resell, and certain debt, the carrying value on our condensed consolidated balance sheets approximates fair value, as these assets and liabilities are short-term in nature and have limited fair value volatility.

Table 13.5 - Fair Value of Financial Instruments


		March 31, 2025
	GAAP Measurement Category(1)	Carrying Amount(2)	Fair Value
(In millions)			Level 1	Level 2	Level 3	Netting Adjustments(3)	Total
Financial assets
Cash and cash equivalents	Amortized cost	$4,790	$4,790	$—	$—	$—	$4,790
Securities purchased under agreements to resell	Amortized cost	105,070	—	109,306	—	(4,236)	105,070
Investment securities:
Available-for-sale	FV - OCI	3,860	—	3,276	584	—	3,860
Trading	FV - NI	55,194	45,451	6,683	3,060	—	55,194
Total investment securities		59,054	45,451	9,959	3,644	—	59,054
Mortgage loans held-for-sale	Various(4)	14,405	—	12,234	2,324	—	14,558
Mortgage loans held-for-investment, net of allowance for credit losses	Various(5)	3,186,345	—	2,525,831	302,446	—	2,828,277
Other assets:
Guarantee assets	FV - NI	5,100	—	—	5,102	—	5,102
Derivative assets, net	FV - NI	849	6	5,886	70	(5,113)	849
Other assets(6)	Various	2,138	—	305	1,930	—	2,235
Total other assets		8,087	6	6,191	7,102	(5,113)	8,186
Total financial assets		$3,377,751	$50,247	$2,663,521	$315,516	($9,349)	$3,019,935
Financial liabilities
Debt:
Debt of consolidated trusts		$3,145,248	$—	$2,779,729	$380	$—	$2,780,109
Debt of Freddie Mac		179,853	—	181,379	3,390	(4,236)	180,533
Total debt	Various(7)	3,325,101	—	2,961,108	3,770	(4,236)	2,960,642
Other liabilities:
Guarantee obligations	Amortized cost	4,965	—	96	6,390	—	6,486
Derivative liabilities, net	FV - NI	815	—	6,120	87	(5,392)	815
Other liabilities(6)	FV - NI	—	—	523	93	—	616
Total other liabilities		5,780	—	6,739	6,570	(5,392)	7,917
Total financial liabilities		$3,330,881	$—	$2,967,847	$10,340	($9,628)	$2,968,559


Freddie Mac 1Q 2025 Form 10-Q						79


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 13


		December 31, 2024
	GAAP Measurement Category(1)	Carrying Amount(2)	Fair Value
(In millions)			Level 1	Level 2	Level 3	Netting Adjustments(3)	Total
Financial assets
Cash and cash equivalents	Amortized cost	$5,534	$5,534	$—	$—	$—	$5,534
Securities purchased under agreements to resell	Amortized cost	100,118	—	108,338	—	(8,220)	100,118
Investment securities:
Available-for-sale	FV - OCI	3,899	—	3,316	583	—	3,899
Trading	FV - NI	51,872	42,289	6,556	3,027	—	51,872
Total investment securities		55,771	42,289	9,872	3,610	—	55,771
Mortgage loans held-for-sale	Various(4)	15,560	—	11,943	3,764	—	15,707
Mortgage loans held-for-investment, net of allowance for credit losses	Various(5)	3,172,329	—	2,469,708	286,371	—	2,756,079
Other assets:
Guarantee assets	FV - NI	5,126	—	—	5,128	—	5,128
Derivative assets, net	FV - NI	501	9	6,387	94	(5,989)	501
Other assets(6)	Various	1,801	—	323	1,607	—	1,930
Total other assets		7,428	9	6,710	6,829	(5,989)	7,559
Total financial assets		$3,356,740	$47,832	$2,606,571	$300,574	($14,209)	$2,940,768
Financial liabilities
Debt:
Debt of consolidated trusts		$3,122,941	$—	$2,699,412	$380	$—	$2,699,792
Debt of Freddie Mac		182,008	—	187,287	3,283	(8,220)	182,350
Total debt	Various(7)	3,304,949	—	2,886,699	3,663	(8,220)	2,882,142
Other liabilities:
Guarantee obligations	Amortized cost	5,072	—	98	6,362	—	6,460
Derivative liabilities, net	FV - NI	954	—	7,116	120	(6,282)	954
Other liabilities(6)	FV - NI	23	—	701	109	—	810
Total other liabilities		6,049	—	7,915	6,591	(6,282)	8,224
Total financial liabilities		$3,310,998	$—	$2,894,614	$10,254	($14,502)	$2,890,366

(1)FV - NI denotes fair value through net income. FV - OCI denotes fair value through other comprehensive income.

(2)Excludes allowance for credit losses on off-balance sheet credit exposure.

(3)Represents counterparty netting and cash collateral netting, and includes accrued interest receivable and payable.

(4)The GAAP carrying amounts measured at lower-of-cost-or-fair-value and FV - NI were $3.8 billion and $10.6 billion as of March 31, 2025, respectively, and $4.2 billion and $11.4 billion as of December 31, 2024, respectively.

(5)The GAAP carrying amounts measured at amortized cost and FV - NI were $3.2 trillion and $2.6 billion as of March 31, 2025, respectively, and $3.2 trillion and $2.4 billion as of December 31, 2024, respectively.

(6)For other assets, includes advances to lenders, secured lending, and loan commitments. For other liabilities, includes loan commitments.

(7)The GAAP carrying amounts measured at amortized cost and FV - NI were $3.3 trillion and $3.3 billion as of March 31, 2025, respectively, and $3.3 trillion and $2.3 billion as of December 31, 2024, respectively.


Freddie Mac 1Q 2025 Form 10-Q						80


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 13

Fair Value Option

We elected the fair value option for certain mortgage loans and loan commitments and certain debt issuances.

The table below presents the fair value and UPB related to items for which we have elected the fair value option.

Table 13.6 - Difference Between Fair Value and UPB for Certain Financial Instruments with Fair Value Option Elected(1)


	March 31, 2025			December 31, 2024
(In millions)	Fair Value	UPB	Difference	Fair Value	UPB	Difference
Mortgage loans held-for-sale	$10,563	$10,377	$186	$11,394	$11,470	($76)
Mortgage loans held-for-investment	2,625	2,870	(245)	2,413	2,710	(297)
Debt of Freddie Mac	150	148	2	152	150	2
Debt of consolidated trusts	2,655	2,739	(84)	1,689	1,817	(128)
Other assets (other liabilities)	39	N/A	N/A	1	N/A	N/A

(1) Excludes interest-only securities related to debt of consolidated trusts and debt of Freddie Mac with a fair value of $0.5 billion as of both March 31, 2025 and December 31, 2024.

Changes in Fair Value Under the Fair Value Option Election

The table below presents the changes in fair value related to items for which we have elected the fair value option. These amounts are included in investment gains, net, on our condensed consolidated statements of income.

Table 13.7 - Changes in Fair Value Under the Fair Value Option Election


	1Q 2025	1Q 2024
(In millions)	Gains (Losses)	Gains (Losses)
Mortgage loans held-for-sale	$227	($159)
Mortgage loans held-for-investment	48	(31)
Debt of Freddie Mac	11	1
Debt of consolidated trusts	(47)	9
Other assets/other liabilities	100	143

Changes in fair value attributable to instrument-specific credit risk were not material for the periods presented for assets or liabilities for which we elected the fair value option.


Freddie Mac 1Q 2025 Form 10-Q						81


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 14

NOTE 14

Legal Contingencies

We are involved, directly or indirectly, in a variety of legal and regulatory proceedings arising from time to time in the ordinary course of business (including, among other things, contractual disputes, personal injury claims, employment-related litigation, and other legal proceedings incidental to our business) and in connection with the conservatorship and Purchase Agreement. We are frequently involved, directly or indirectly, in litigation involving mortgage foreclosures. From time to time, we are also involved in proceedings arising from our termination of a seller's or servicer's eligibility to sell loans to, and/or service loans for, us. In these cases, the former seller or servicer sometimes seeks damages against us for wrongful termination under a variety of legal theories. In addition, we are sometimes sued in connection with the origination or servicing of loans. These suits typically involve claims alleging wrongful actions of sellers and servicers. Our contracts with our sellers and servicers generally provide for indemnification of Freddie Mac against liability arising from sellers' and servicers' wrongful actions with respect to loans sold to or serviced for Freddie Mac.

Litigation claims and proceedings of all types are subject to many uncertainties (including appeals and procedural filings), and there can be no assurance as to the ultimate outcome of those actions (including the matters described below). In accordance with the accounting guidance for contingencies, we reserve for litigation claims and assessments asserted or threatened against us when a loss is probable (as defined in such guidance) and the amount of the loss can be reasonably estimated. The actual costs of resolving legal actions may be substantially higher or lower than the amounts accrued for those actions.

It is not possible for us to predict the actions the U.S. government (including Treasury and FHFA) might take in connection with any of these lawsuits or any future lawsuits. However, it is possible that we could be adversely affected by these actions, including, for example, by changes to the Purchase Agreement, or any resulting actual or perceived changes in the level of U.S. government support for our business.

Putative Securities Class Action Lawsuit: Ohio Public Employees Retirement System vs. Freddie Mac, Syron, Et Al.

This putative securities class action lawsuit was filed against Freddie Mac and certain former officers on January 18, 2008 in the U.S. District Court for the Northern District of Ohio purportedly on behalf of a class of purchasers of Freddie Mac stock from August 1, 2006 through November 20, 2007. FHFA later intervened as Conservator, and the plaintiff amended its complaint on several occasions. The plaintiff alleged, among other things, that the defendants violated federal securities laws by making false and misleading statements concerning our business, risk management, and the procedures we put into place to protect the company from problems in the mortgage industry. The plaintiff seeks unspecified damages and interest, and reasonable costs and expenses, including attorney and expert fees.

In August 2018, the District Court denied the plaintiff's motion for class certification. On April 6, 2023, the Sixth Circuit reversed the District Court's September 17, 2020 decision to grant the plaintiff's request for summary judgment and enter final judgment in favor of Freddie Mac and other defendants, and remanded the case to the District Court for further proceedings. On May 3, 2024, defendants filed motions for summary judgment, which remain pending. The trial in the District Court is scheduled to begin on October 6, 2025.

Litigation Concerning the Purchase Agreement in the U.S. District Court for the District of Columbia

In re Fannie Mae/Freddie Mac Senior Preferred Stock Purchase Agreement Class Action Litigations. This is a consolidated class action lawsuit filed by private individual and institutional investors (collectively, "Class Plaintiffs") against FHFA, Fannie Mae, and Freddie Mac.

Fairholme Funds, Inc., et al. v. FHFA, et al. This is an individual plaintiffs’ lawsuit by certain institutional investors (“Individual Plaintiffs”) against FHFA, Fannie Mae, and Freddie Mac.

The Class Plaintiffs and Individual Plaintiffs (collectively "Plaintiffs") in the District of Columbia lawsuits filed an amended complaint on November 1, 2017 alleging claims for breach of contract, breach of the implied covenant of good faith and fair dealing, breach of fiduciary duties, and violation of Delaware and Virginia corporate law. Additionally, the Class Plaintiffs brought derivative claims against FHFA for breach of fiduciary duties and the Individual Plaintiffs brought claims under the Administrative Procedure Act. Both sets of claims are generally based on allegations that the net worth sweep dividend provisions of the senior preferred stock that were implemented pursuant to the August 2012 amendments nullified certain of the shareholders’ rights, including the rights to receive dividends and a liquidation preference. On September 28, 2018, the District


Freddie Mac 1Q 2025 Form 10-Q						82


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 14

Court dismissed all of the claims except those for breach of the implied covenant of good faith and fair dealing. The cases were consolidated for trial.

Court rulings limited the Plaintiffs’ damages theories to those based on the decline in Freddie Mac’s and Fannie Mae’s share value immediately after the Third Amendment. The Plaintiffs asserted losses based on the decline in value of Freddie Mac’s common and junior preferred stock from August 16 to August 17, 2012. During the trial in October and early November 2022, the Plaintiffs requested that the jury award $832 million plus pre-judgment interest as damages against Freddie Mac. The jury in that trial was not able to reach a unanimous verdict and on November 7, 2022 the judge declared a mistrial. The retrial started on July 24, 2023. On August 14, 2023, the jury returned a verdict against FHFA, Fannie Mae, and Freddie Mac awarding compensatory damages of $282 million to Freddie Mac junior preferred shareholders and $31 million to Freddie Mac common shareholders. The jury declined to award the Freddie Mac shareholders prejudgment interest. In 2023, we recorded a $313 million accrual in other expense on our condensed consolidated statements of income for the adverse judgment. On March 20, 2024, the District Court entered final judgment. On April 17, 2024, the defendants filed a motion in the District Court requesting entry of judgment in their favor notwithstanding the jury verdict. That motion was denied on March 14, 2025. The defendants filed a notice of appeal to the U.S. Court of Appeals for the D.C. Circuit on April 11, 2025. On April 25, 2025, a number of the individual plaintiffs and the class plaintiffs filed their own appeals to the U.S. Court of Appeals for the D.C. Circuit.


Freddie Mac 1Q 2025 Form 10-Q						83


Financial Statements			Notes to the Condensed Consolidated Financial Statements \| Note 15

NOTE 15

Regulatory Capital

ERCF

The table below presents our capital metrics under the ERCF.

Table 15.1 - ERCF Available Capital and Capital Requirements


(In billions)			March 31, 2025			December 31, 2024
Adjusted total assets			$3,834			$3,817
Risk-weighted assets (standardized approach)			1,099			1,118

	March 31, 2025
	Amounts			Ratios
(Dollars in billions)	Available Capital (Deficit)	Minimum Capital Requirement	Capital Requirement (Including Buffer(1))	Available Capital (Deficit) Ratio(2)		Minimum Capital Requirement Ratio(2)		Capital Requirement Ratio(2) (Including Buffer(1))
Risk-based capital:
Total capital	($3)	$88	$88	(0.3)	%	8.0	%	8.0	%
CET1 capital	(29)	49	108	(2.7)		4.5		9.9
Tier 1 capital	(15)	66	125	(1.4)		6.0		11.4
Adjusted total capital	(15)	88	147	(1.4)		8.0		13.4
Leverage capital:
Core capital	(10)	96	96	(0.3)		2.5		2.5
Tier 1 capital	(15)	96	111	(0.4)		2.5		2.9

	December 31, 2024
	Amounts			Ratios
(Dollars in billions)	Available Capital (Deficit)	Minimum Capital Requirement	Capital Requirement (Including Buffer(1))	Available Capital (Deficit) Ratio(2)		Minimum Capital Requirement Ratio(2)		Capital Requirement Ratio(2) (Including Buffer(1))
Risk-based capital:
Total capital	($6)	$89	$89	(0.5)	%	8.0	%	8.0	%
CET1 capital	(32)	50	107	(2.9)		4.5		9.6
Tier 1 capital	(18)	67	124	(1.6)		6.0		11.1
Adjusted total capital	(18)	89	146	(1.6)		8.0		13.1
Leverage capital:
Core capital	(13)	95	95	(0.3)		2.5		2.5
Tier 1 capital	(18)	95	109	(0.5)		2.5		2.9

(1)PCCBA for risk-based capital and PLBA for leverage capital.

(2)As a percentage of RWA for risk-based capital and ATA for leverage capital.

END OF CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND ACCOMPANYING NOTES


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Other Information

Other Information

LEGAL PROCEEDINGS

We are involved, directly or indirectly, in a variety of legal proceedings arising from time to time in the ordinary course of business and in connection with the conservatorship and Purchase Agreement. See Note 14 for additional information regarding our involvement as a party to various legal proceedings, including those in connection with the conservatorship and Purchase Agreement.

Over the last several years, numerous lawsuits have been filed against the U.S. government and, in some cases, the Secretary of the Treasury and the Director of FHFA, challenging certain government actions related to the conservatorship (including actions taken in connection with the imposition of conservatorship) and the Purchase Agreement. Freddie Mac is not a party to all of these lawsuits. Several of the lawsuits seek to invalidate the net worth sweep dividend provisions of the senior preferred stock, which were implemented pursuant to the August 2012 amendment to the Purchase Agreement. Some of these cases also have challenged the constitutionality of the structure of FHFA. A number of cases have been dismissed (some of which have been appealed), and others remain pending.

These cases include one that was filed in the U.S. Court of Federal Claims as a derivative lawsuit, purportedly on behalf of Freddie Mac as a “nominal” defendant: Reid and Fisher vs. the United States of America and Federal Home Loan Mortgage Corporation. This case was filed on February 26, 2014. The complaint alleges, among other items, that the net worth sweep dividend provisions of the senior preferred stock constitute an unlawful taking of private property for public use without just compensation. The plaintiffs ask that Freddie Mac be awarded just compensation for the U.S. government's alleged taking of its property, attorneys' fees, costs, and other expenses. The Court dismissed the case with prejudice on September 1, 2023 and entered judgment for the defendants. On October 31, 2023, the plaintiffs filed a notice of appeal to the Federal Circuit, which has been fully briefed since May 22, 2024.

RISK FACTORS

This Form 10-Q should be read together with the Risk Factors section in our 2024 Annual Report, which describes various risks and uncertainties to which we are or may become subject. These risks and uncertainties could, directly or indirectly, adversely affect our business, financial condition, results of operations, cash flows, strategies, and/or prospects.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Recent Sales of Unregistered Securities

The securities we issue are "exempted securities" under the Securities Act of 1933, as amended. As a result, we do not file registration statements with the SEC with respect to offerings of our securities.

Following our entry into conservatorship, we suspended the operation of, and ceased making grants under, equity compensation plans. Previously, we had provided equity compensation under those plans to employees and members of the Board of Directors. Under the Purchase Agreement, we cannot issue any new options, rights to purchase, participations, or other equity interests without Treasury's prior approval.

Information About Certain Securities Issuances by Freddie Mac

We make available, free of charge through our website at www.freddiemac.com/investors, our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all other SEC reports and amendments to those reports as soon as reasonably practicable after we electronically file the material with the SEC. The SEC also maintains a website (www.sec.gov) that contains reports, proxy and information statements, and other information regarding companies that file electronically with the SEC.

We provide information on the ERCF on our website at www.freddiemac.com/investors.

We provide disclosure about our debt securities on our website at www.freddiemac.com/debt. From this address, investors can access the offering circular and issuance information for debt securities offerings under Freddie Mac's global debt facility, including any required pricing supplements for individual issuances of debt securities. Similar information about our STACR transactions and MSCR transactions is available at crt.freddiemac.com and mf.freddiemac.com/investors, respectively.


Freddie Mac 1Q 2025 Form 10-Q						85


Other Information

We provide disclosure about our mortgage-related securities, some of which are off-balance sheet obligations (e.g., K Certificates), on our website at www.freddiemac.com/mbs and mf.freddiemac.com/investors. From these addresses, investors can access information and documents, including offering circulars and offering circular supplements, for mortgage-related securities offerings.

We provide additional information, including product descriptions, investor presentations, securities issuance calendars, transaction volumes and details, redemption notices, Freddie Mac research, and material developments or other events that may be important to investors, in each case as applicable, on the websites for our business divisions, which can be found at sf.freddiemac.com, mf.freddiemac.com, and capitalmarkets.freddiemac.com/capital-markets.

OTHER INFORMATION

Insider Trading Arrangements and Policies

No executive officer or director adopted or terminated any contract, instruction, or written plan for the purchase or sale of, or any other such trading arrangement for, our securities during 1Q 2025. For additional information on executive officer and director compensation and security ownership by our executive officers and directors, see Directors, Corporate Governance, and Executive Officers, Executive Compensation, and Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters in our 2024 Annual Report.

Corporate Governance

Effective April 9, 2025, the Board announced that David S. Farbman had been appointed as Vice-Chair of the Board. In addition, Freddie Mac announced that it had constituted its Board committees as follows:

Executive
Committee

Audit
Committee

Compensation and Management
Development
Committee

Nominating and Governance
Committee

Risk
Committee

William J. Pulte, Chair

Ralph (Cody) Kittle, Chair

David S. Farbman, Chair

William J. Pulte, Chair

Brandon Hamara, Chair

David S. Farbman, Vice Chair

Kathleen L. Casey

Mark H. Bloom

Kathleen L. Casey

Mark H. Bloom

Brandon Hamara

Aleem Gillani

Michael Parrott

Aleem Gillani

David S. Farbman

Michael T. Hutchins

Clinton Jones

Ralph (Cody) Kittle

EXHIBITS

The exhibits are listed in the Exhibit Index of this Form 10-Q.


Freddie Mac 1Q 2025 Form 10-Q						86


Controls and Procedures

Controls and Procedures

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that the information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified by the SEC's rules and forms and that such information is accumulated and communicated to management of the company, including the company's Interim CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure. In designing our disclosure controls and procedures, we recognize that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and we must apply judgment in implementing possible controls and procedures.

Management, including the company's Interim CEO and CFO, conducted an evaluation of the effectiveness of our disclosure controls and procedures as of March 31, 2025. As a result of management's evaluation, our Interim CEO and CFO concluded that our disclosure controls and procedures were not effective as of March 31, 2025, at a reasonable level of assurance, because we have not been able to update our disclosure controls and procedures to provide reasonable assurance that information known by FHFA on an ongoing basis is communicated from FHFA to Freddie Mac's management in a manner that allows for timely decisions regarding our required disclosure under the federal securities laws. We consider this situation to be a material weakness in our internal control over financial reporting. Given the inherent nature of this ongoing weakness, we believe it is unlikely that we will be able to remediate this material weakness while under conservatorship.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING DURING 1Q 2025

We evaluated the changes in our internal control over financial reporting that occurred during 1Q 2025 and concluded that there were no changes that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

MITIGATING ACTIONS RELATED TO THE MATERIAL WEAKNESS IN INTERNAL CONTROL OVER FINANCIAL REPORTING

As described above under Evaluation of Disclosure Controls and Procedures, we have one material weakness in internal control over financial reporting as of March 31, 2025 that we have not remediated.

Given the structural nature of this material weakness, we believe it is likely that we will not remediate it while we are under conservatorship. However, both we and FHFA have continued to engage in activities and employ procedures and practices intended to permit accumulation and communication to management of information needed to meet our disclosure obligations under the federal securities laws. These include the following:

n FHFA has established a process to facilitate operation of the company under the oversight of the Conservator.

n We provide drafts of our SEC filings to FHFA personnel for their review and comment prior to filing. We also provide drafts of certain external press releases and statements to FHFA personnel for their review and comment prior to release.

n FHFA personnel, including senior officials, review our SEC filings prior to filing, including this Form 10-Q, and engage in discussions with us regarding issues associated with the information contained in those filings. Prior to filing this Form 10-Q, FHFA provided us with a written acknowledgment that it had reviewed the Form 10-Q, was not aware of any material misstatements or omissions in the Form 10-Q, and had no objection to our filing the Form 10-Q.

n Our senior management meets regularly with senior leadership at FHFA, including, but not limited to, the Director.

n FHFA representatives attend meetings frequently with various groups within the company to enhance the flow of information and to provide oversight on a variety of matters, including accounting, credit and capital markets management, external communications, and legal matters.

n Senior officials within FHFA's accounting group meet frequently with our senior financial executives regarding our accounting policies, practices, and procedures.


Freddie Mac 1Q 2025 Form 10-Q						87


Controls and Procedures

Although we and FHFA have attempted to design and implement disclosure policies and procedures to account for the conservatorship and accomplish the same objectives as disclosure controls and procedures for a typical reporting company, there are inherent structural limitations on our ability to design, implement, test, or operate effective disclosure controls and procedures under the circumstances of conservatorship. Despite our material weakness, we believe that our condensed consolidated financial statements for 1Q 2025 have been prepared in conformity with GAAP.


Freddie Mac 1Q 2025 Form 10-Q						88


Exhibit Index

Exhibit Index


Exhibit			Description*

4.1			Federal Home Loan Mortgage Corporate Debt Facility Agreement, dated February 13, 2025


31.1			Certification of President and Interim Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a)


31.2			Certification of Chief Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a)


32.1			Certification of President and Interim Chief Executive Officer pursuant to 18 U.S.C. Section 1350


32.2			Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350




















101.INS			XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document


101.SCH			XBRL Taxonomy Extension Schema


101. CAL			XBRL Taxonomy Extension Calculation


101.DEF			XBRL Taxonomy Extension Definition


101.LAB			XBRL Taxonomy Label


101. PRE			XBRL Taxonomy Extension Presentation


104			Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

*			The SEC file number for the Registrant's Registration Statement on Form 10, Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K is 001-34139.


Freddie Mac 1Q 2025 Form 10-Q						89


Signatures

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


Federal Home Loan Mortgage Corporation

By:						/s/ Michael T. Hutchins
						Michael T. Hutchins
						President and Interim Chief Executive Officer
						(Principal Executive Officer)

Date: May 1, 2025


By:						/s/ James Whitlinger
						James Whitlinger
						Executive Vice President and Chief Financial Officer
						(Principal Financial Officer)

Date: May 1, 2025


Freddie Mac 1Q 2025 Form 10-Q						90


Form 10-Q Index

Form 10-Q Index


Item Number		Page(s)
PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements	41 - 84
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	1 - 40
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28 - 30
Item 4.	Controls and Procedures	87 - 88
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	85
Item 1A.	Risk Factors	85
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	85 - 86
Item 5.	Other Information	86
Item 6.	Exhibits	86
Exhibit Index		89
Signatures		90


Freddie Mac 1Q 2025 Form 10-Q						91