Federal Home Loan Mortgage Corporation

What they do

Freddie Mac purchases and guarantees residential mortgages, securitizes them into mortgage-backed securities, and finances rental housing. It operates in two business segments: Single-Family Guarantee and Multifamily. The company is under conservatorship of the Federal Housing Finance Agency (FHFA) and receives no explicit federal guarantee on its securities.

Revenue drivers

• Single-Family Guarantee — Generates guarantee fees and net interest income from a mortgage portfolio of $3.2 trillion. Net revenues of $5.1 billion in Q2 2026; net income of $3.3 billion.
• Multifamily — Provides financing for rental housing through securitizations and loans. Net revenues of $0.9 billion in Q2 2026; net income of $0.6 billion. Portfolio $505 billion, up 8% year-over-year.
• Net interest income — Drove overall revenue growth; Q2 2026 net interest income of $6.0 billion, up 13% year-over-year, aided by Multifamily securitization growth and Single-Family portfolio expansion.

Recent performance

Q2 2026 net income was $3.8 billion, up 61% year-over-year, driven by a credit reserve release versus a build in the prior year. Net revenues were $6.0 billion, up 1% year-over-year. The benefit for credit losses was $0.9 billion, mainly from Single-Family reserve release. Net worth reached $78 billion as of June 30, 2026. For FY2025, net income was $10.73 billion on revenue of $23.27 billion.

Strategy

Management emphasizes disciplined risk management, cost discipline, and supporting the housing market across economic cycles. The company is focusing on increasing access to affordable housing and helping families with homeownership and rental options. Recent Multifamily business strategy changes have increased fully guaranteed securitizations. The company continues to operate under conservatorship with no plans for exit.

Risks

• Conservatorship and government control — The company remains under FHFA conservatorship; Treasury agreements limit activities and common stock dividends.
• Credit risk from mortgage delinquencies — Serious delinquency rate rose to 0.60% at June 30, 2026, up from 0.55% a year earlier; credit losses could rise if conditions deteriorate.
• Interest rate exposure — The large mortgage portfolio and debt issuance expose the company to interest rate volatility, affecting net interest income and fair value.
• Housing market conditions — Changes in house prices, employment, and refinance activity directly impact volumes and credit performance; the company noted updates to house price scenarios.

Outlook

Management did not provide specific forward guidance. They plan to continue supporting affordable housing and prudently managing risk. The company expects sustained demand for mortgage liquidity and rental financing. Any exit from conservatorship remains subject to legislative and regulatory decisions.