EX-99.1 2 a20251qerexhibit991.htm EX-99.1 Document
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Exhibit 99.1
Freddie Mac Reports Net Income of $2.8 Billion for First Quarter 2025
Making Home Possible for 313,000 Households in First Quarter 2025
•Financed 224,000 mortgages, with 51% of eligible loans affordable to low- to moderate-income families.
•First-time homebuyers represented 52% of new single-family home purchase loans.
•Financed 89,000 rental units, with 92% of eligible units affordable to low- to moderate-income families.
First Quarter 2025 Financial Results
During First Quarter 2025As of March 31, 2025
Market Liquidity Provided -
$88 Billion
Homes and Rental Units Financed -
313,000

Net Worth -
$62 Billion

Total Mortgage
 Portfolio -
$3.6 Trillion

Consolidated
•Net income of $2.8 billion, up 1% year-over-year.
•Net revenues of $5.9 billion, an increase of 2% year-over-year, primarily driven by higher net interest income, partially offset by lower non-interest income.
•Provision for credit losses of $0.3 billion, primarily driven by a credit reserve build in Single-Family.
•New business activity of $78 billion, up from $62 billion in the first quarter of 2024.
•Mortgage portfolio of $3.1 trillion, up 2% year-over-year.
•Serious delinquency rate of 0.59%, unchanged from December 31, 2024 and up from 0.52% at March 31, 2024.
•Completed approximately 25,000 loan workouts.
•62% of mortgage portfolio covered by credit enhancements.
•New business activity of $10 billion, up from $9 billion in the first quarter of 2024.
•Mortgage portfolio of $467 billion, up 5% year-over-year.
•Delinquency rate of 0.46%, up from 0.40% at December 31, 2024 and up from 0.34% at March 31, 2024.
•93% of mortgage portfolio covered by credit enhancements.
"Freddie Mac earned $2.8 billion of net income in the first quarter, driving the company’s net worth to $62 billion. The company helped more than 313,000 of America’s families buy, rent or refinance a home, with 52% of single-family loan purchases supporting first-time homebuyers and 92% of rental units financed affordable to middle-income renters, such as teachers, police officers and firefighters who are the backbone of our communities. FHFA is working with Freddie Mac to streamline its operations by stripping away unnecessary bureaucracy and eliminating non-essential activities. This work has set the stage for cost savings, supporting mortgage affordability while building an even safer, sounder Freddie Mac, one that better serves its mission and the American people."

William J. Pulte,
Director, U.S. Federal Housing and Chair of the Board of Directors, Freddie Mac
Net Revenues
$5.9 Billion
Net Income
$2.8 Billion
Comprehensive
Income
$2.8 Billion
Single-Family
Net Revenues
$4.9 Billion
Net Income
$2.3 Billion
Comprehensive
Income
$2.3 Billion
Multifamily
Net Revenues
$0.9 Billion
Net Income
$0.5 Billion
Comprehensive
Income
$0.6 Billion

Freddie Mac First Quarter 2025 Financial Results
May 1, 2025
Page 2


McLean, VA — Freddie Mac (OTCQB: FMCC) today reported net income of $2.8 billion for the first quarter of 2025, up 1% from the first quarter of 2024.
Net revenues were $5.9 billion for the first quarter of 2025, up 2% year-over-year, primarily driven by higher net interest income, partially offset by lower non-interest income. Net interest income for the first quarter of 2025 was $5.1 billion, up 7% year-over-year, primarily driven by continued mortgage portfolio growth and lower funding costs, partially offset by lower yields on short-term investments. Non-interest income for the first quarter of 2025 was $0.8 billion, down 25% year-over-year, primarily driven by lower net investment gains in Multifamily.
Provision for credit losses was $0.3 billion for the first quarter of 2025, primarily driven by a credit reserve build in Single-Family attributable to new acquisitions. The provision for credit losses of $0.2 billion for the first quarter of 2024 was primarily driven by a credit reserve build in Single-Family attributable to new acquisitions and increasing mortgage interest rates.
Summary of Consolidated Statements of Income and Comprehensive Income
(Dollars in millions)
1Q 20254Q 2024Change1Q 2024Change
Net interest income$5,102$5,051$51$4,759$343
Non-interest income7501,278(528)998(248)
Net revenues5,8526,329(477)5,757 95
(Provision) benefit for credit losses(280)(92)(188)(181)(99)
Non-interest expense(2,088)(2,219)131(2,122)34
Income before income tax expense3,4844,018(534)3,454 30
Income tax expense(690)(796)106(688)(2)
Net income2,7943,222(428)2,76628
Other comprehensive income (loss), net of taxes and reclassification adjustments34(37)71(25)59
Comprehensive income$2,828$3,185($357)$2,741$87
Conservatorship metrics (in millions)
Net worth$62,403$59,575$2,828$50,463$11,940
Senior preferred stock liquidation preference132,223129,0383,185120,37011,853
Remaining Treasury funding commitment140,162140,162—140,162—
Cumulative dividend payments to Treasury119,680119,680—119,680—
Cumulative draws from Treasury71,64871,648—71,648—



Freddie Mac First Quarter 2025 Financial Results
May 1, 2025
Page 3


Single-Family Segment
Financial Results
Net Revenues
(In billions)
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Net Income
(In billions)
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Comprehensive Income
(In billions)
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(Dollars in millions)1Q 20254Q 2024Change1Q 2024Change
Net interest income$4,753$4,698$55$4,488$265
Non-interest income165497(332)(14)179
Net revenues4,9185,195(277)4,474444
(Provision) benefit for credit losses(228)(38)(190)(120)(108)
Non-interest expense(1,871)(1,971)100(1,925)54
Income before income tax expense2,8193,186(367)2,429390
Income tax expense(558)(631)73(484)(74)
Net income2,2612,555(294)1,945316
Other comprehensive income (loss), net of taxes and reclassification adjustments8(1)9(5)13 
Comprehensive income$2,269$2,554($285)$1,940$329
First Quarter 2025
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 the first quarter of 2025, primarily driven by a credit reserve build attributable to new acquisitions. The provision for credit losses of $0.1 billion for the first quarter of 2024 was primarily driven by a credit reserve build attributable to new acquisitions and increasing mortgage interest rates.


Freddie Mac First Quarter 2025 Financial Results
May 1, 2025
Page 4


Single-Family Segment
Business Results
New Business Activity
(UPB in billions)
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Mortgage Portfolio
(UPB in billions)
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Serious Delinquency Rate
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1Q 20254Q 2024Change1Q 2024Change
New Business Statistics:
Single-Family homes funded (in thousands)224 294 (70)19430
Purchase borrowers (in thousands)171 212 (41)16110
Refinance borrowers (in thousands)53 82 (29)3320
Affordable to low- to moderate-income families (%)(1)(2)
51 53 (2)54 (3)
First-time homebuyers (%)(3)
52 52 — 52 — 
Average estimated guarantee fee rate (bps)54 55 (1)55(1)
Weighted average original loan-to-value (LTV) (%)77 77 — 78 (1)
Weighted average original credit score756 756 —7533
Portfolio Statistics:
Average estimated guarantee fee rate (bps) 4949—49—
Weighted average current LTV (%)52 52 — 52 — 
Weighted average current credit score754755(1)754—
Loan count (in millions)13.913.9—13.80.1
Credit-Related Statistics:
Loan workout activity (in thousands)25205214
Allowance for credit losses to total loans outstanding (%)(4)
0.21 0.21 — 0.20 0.01 
Credit enhancement coverage (%)62 62 — 61 1 
(1) Eligible loans acquired affordable to families earning at or below 120% of area median income (AMI).
(2) First quarter 2025 results are based on 2024 annual median income data provided by FHFA.
(3) Calculated as a percentage of purchase borrowers with loans secured by primary residences.
(4) Calculated as the allowance for credit losses on mortgage loans held-for-investment divided by the amortized cost basis of mortgage loans held-for-investment for which the fair value option has not been elected.
Business Highlights
•New business activity of $78 billion, up from $62 billion in the first quarter of 2024, as both home purchase and refinance volume increased due to expanded market coverage, higher conforming loan limits, and house price appreciation in recent quarters. Financed 224,000 mortgages and enabled 81,000 first-time homebuyers to purchase a home.
•Credit enhancement coverage of the Single-Family mortgage portfolio increased to 62% at March 31, 2025, up from 61% at March 31, 2024.

Freddie Mac First Quarter 2025 Financial Results
May 1, 2025
Page 5



Multifamily Segment
Financial Results

Net Revenues
(In billions)
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Net Income
(In billions)chart-b5d3da394b3f48879cf.jpg



Comprehensive Income
(In billions)
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(Dollars in millions)
1Q 20254Q 2024Change1Q 2024Change
Net interest income$349$353($4)$271$78
Non-interest income585781(196)1,012(427)
Net revenues9341,134(200)1,283 (349)
(Provision) benefit for credit losses(52)(54)2(61)9
Non-interest expense(217)(248)31(197)(20)
Income before income tax expense665832(167)1,025 (360)
Income tax expense(132)(165)33(204)72
Net income533667(134)821 (288)
Other comprehensive income (loss), net of taxes and reclassification adjustments26(36)62(20)46
Comprehensive income$559$631($72)$801($242)
First Quarter 2025
Net income of $0.5 billion, down 35% year-over-year.
•Net revenues were $0.9 billion for the first quarter of 2025, 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% year-over-year, 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 First Quarter 2025 Financial Results
May 1, 2025
Page 6


Multifamily Segment
Business Results
New Business Activity
(UPB in billions)
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Mortgage Portfolio        
(UPB in billions)
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Delinquency Rate
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1Q 20254Q 2024Change1Q 2024Change
New Business Statistics:
Number of rental units financed (in thousands)(1)
89245(156)854
Affordable to low-income families (%)(2)(4)
66 65 1 63 3 
Affordable to low- to moderate-income families (%)(3)(4)
92 93 (1)91 1 
Weighted average original LTV (%)62 64 (2)611 
Weighted average original debt service coverage ratio(5)
1.301.30—1.290.01
Securitization Statistics:
Securitization issuance (UPB in billions)$16$21($5)$11$5
Senior subordinate79 (2)7—
Fully guaranteed912 (3)45
Portfolio Statistics:
Average guarantee fee rate charged (bps) at period end52511475
Credit-Related Statistics:
Allowance for credit losses to total loans outstanding (%)(6)
0.49 0.46 0.03 0.64 (0.15)
Credit enhancement coverage (%)93 91 2 94 (1)
(1) Includes rental units financed by supplemental loans.
(2) Eligible units acquired affordable to families earning at or below 80% of AMI.
(3) Eligible units acquired affordable to families earning at or below 120% of AMI.
(4) First quarter 2025 results are based on 2024 annual median income data provided by FHFA.
(5) Assumes monthly payments that reflect amortization of principal.
(6) Calculated as the allowance for credit losses on mortgage loans held-for-investment divided by the amortized cost basis of mortgage loans held-for-investment for which the fair value option has not been elected.
Business Highlights
•While new business activity increased 11% year-over-year, both periods were adversely impacted by the high mortgage interest rate environment.
•The company provided financing for 89,000 multifamily rental units in the first quarter of 2025. 66% of the eligible multifamily rental units financed in the first quarter of 2025 were affordable to low-income families.
•Fully guaranteed securitization issuance UPB increased, representing a larger percentage of total securitization issuance UPB in the first quarter of 2025 compared to the first quarter of 2024.
•The Multifamily delinquency rate increased to 0.46% at March 31, 2025, from 0.34% at March 31, 2024, 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 had credit enhancement coverage.


Freddie Mac First Quarter 2025 Financial Results
May 1, 2025
Page 7


About Freddie Mac’s Conservatorship
Since September 2008, Freddie Mac has been operating under conservatorship with FHFA as Conservator. The support provided by Treasury pursuant to the Purchase Agreement enables the company to maintain access to the debt markets and have adequate liquidity to conduct its normal business operations. The amount of funding available to Freddie Mac under the Purchase Agreement was $140.2 billion at March 31, 2025.
Pursuant to the Purchase Agreement, Freddie Mac will not be required to pay a dividend to Treasury on the senior preferred stock until it has built sufficient capital to meet the capital requirements and buffers set forth in the Enterprise Regulatory Capital Framework. As a result, the company was not required to pay a dividend to Treasury on the senior preferred stock in March 2025. As the company builds capital during this period, the quarterly increases in its Net Worth Amount have been, or will be, added to the aggregate liquidation preference of the senior preferred stock. The liquidation preference of the senior preferred stock increased to $132.2 billion on March 31, 2025 based on the increase in the Net Worth Amount during the fourth quarter of 2024, and will increase to $135.1 billion on June 30, 2025 based on the increase in the Net Worth Amount during the first quarter of 2025.
Additional Information
For more information, including information related to Freddie Mac’s financial results, conservatorship, and related matters, see the company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 and the company’s First Quarter 2025 Financial Results Supplement. These documents are available on the Investor Relations page of the company’s website at www.FreddieMac.com.
Additional information about Freddie Mac and its business is also set forth in the company’s other filings with the SEC, which are available on the Investor Relations page of the company’s website at www.FreddieMac.com and the SEC’s website at www.sec.gov. Freddie Mac encourages all investors and interested members of the public to review these materials for a more complete understanding of the company’s financial results and related disclosures.
Webcast Announcement
Management will host a conference call at 9 a.m. Eastern Time on May 1, 2025 to share the company’s results with the media. The conference call will be concurrently webcast. To access the audio webcast, use the following link: https://edge.media-server.com/mmc/p/e6sz992t. The replay will be available on the company’s website at www.FreddieMac.com for approximately 30 days. All materials related to the call will be available on the Investor Relations page of the company’s website at www.FreddieMac.com.
Media Contact: Frederick Solomon (703) 903-3861Investor Contact: Mahesh Lal (571) 382-4732  
*    *    *    *
This press release contains forward-looking statements, which may include statements pertaining to the conservatorship, the company’s current expectations and objectives for its Single-Family and Multifamily segments, its efforts to assist the housing market, liquidity and capital management, economic and market conditions and trends including, but not limited to, changes in house prices and house price forecasts, its market coverage, the effect of legislative and regulatory developments and new accounting guidance, the credit quality of loans the company owns or guarantees, the costs and benefits of the company’s CRT transactions, the impact of banking crises or failures, the effects of natural disasters or catastrophic events and actions taken in response thereto on its business, results of operations, and financial condition. Forward-looking statements involve known and unknown risks and uncertainties, some of which are beyond the company’s control. Management’s expectations for the company’s future necessarily involve a number of assumptions, judgments, and estimates, and various factors, including changes in economic and market conditions, liquidity, mortgage spreads, credit outlook, actions by the U.S. government (including FHFA, Treasury, and Congress) and state and local governments, changes in the fiscal and monetary policies of the Federal Reserve, the impact of any downgrade in our credit ratings or those of the U.S. government, and the impacts of legislation or regulations and new or amended accounting guidance, that could cause actual results to differ materially from these expectations. These assumptions, judgments, estimates, and factors are discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2024, Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, and Current Reports on Form 8-K, which are available on the Investor Relations page of the company’s website at

Freddie Mac First Quarter 2025 Financial Results
May 1, 2025
Page 8


www.FreddieMac.com and the SEC’s website at www.sec.gov. The company undertakes no obligation to update forward-looking statements it makes to reflect events or circumstances occurring after the date of this press release.
Freddie Mac's mission is to make home possible for families across the nation. Freddie Mac promotes liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, Freddie Mac has helped tens of millions of families buy, rent or keep their home.


Freddie Mac First Quarter 2025 Financial Results
May 1, 2025
Page 9


FREDDIE MAC
Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited)
(In millions, except share-related amounts)
1Q 20254Q 20241Q 2024
Net interest income
Interest income$31,365$30,619$28,385
Interest expense(26,263)(25,568)(23,626)
Net interest income5,102 5,051 4,759 
Non-interest income
Guarantee income440 245 496 
Investment gains, net192 879 405 
Other income118 154 97 
Non-interest income750 1,278 998 
Net revenues5,852 6,329 5,757 
(Provision) benefit for credit losses(280)(92)(181)
Non-interest expense
Salaries and employee benefits(423)(412)(421)
Professional services, technology, and occupancy(253)(336)(271)
Credit enhancement expense(540)(544)(597)
Legislative and regulatory assessments(817)(830)(787)
Other expense(55)(97)(46)
Non-interest expense(2,088)(2,219)(2,122)
Income before income tax expense3,484 4,018 3,454 
Income tax expense(690)(796)(688)
Net income2,794 3,222 2,766 
Other comprehensive income (loss), net of taxes and reclassification adjustments34 (37)(25)
Comprehensive income$2,828$3,185$2,741
Net income$2,794$3,222$2,766
Amounts attributable to senior preferred stock(2,828)(3,185)(2,741)
Net income (loss) attributable to common stockholders($34)$37$25
Net income (loss) per common share($0.01)$0.01$0.01
Weighted average common shares (in millions)3,234 3,234 3,234 


Freddie Mac First Quarter 2025 Financial Results
May 1, 2025
Page 10


FREDDIE MAC
Condensed Consolidated Balance Sheets (Unaudited)
March 31, December 31,
(In millions, except share-related amounts)
20252024
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 resell105,070 100,118 
Investment securities, at fair value59,054 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 receivable11,050 11,029 
Deferred tax assets, net4,992 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 liabilities3,346,713 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 value14,109 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)
Total AOCI, net of taxes7 (27)
Treasury stock, at cost, 75,804,333 shares
(3,885)(3,885)
Total equity62,403 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 variable interest entities (VIEs) on the company's condensed consolidated balance sheets.
March 31,December 31,
(In millions)20252024
Assets
Cash and cash equivalents (includes $951 and $1,055 of restricted cash and cash equivalents)
$952$1,056 
Securities purchased under agreements to resell13,58812,764 
Investment securities, at fair value81
Mortgage loans held-for-investment, net3,135,9473,114,937
Accrued interest receivable, net10,1189,900 
Other assets6,745 5,881 
Total assets of consolidated VIEs$3,167,358$3,144,539
Liabilities
Accrued interest payable$8,696$8,469
Debt3,145,2483,122,941
Total liabilities of consolidated VIEs$3,153,944$3,131,410