Freddie Mac — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net income of $3.2 billion for the third quarter of 2026, a 17% increase year-over-year from $2.7 billion in the third quarter of 2025.
• Net revenues totaled $6.8 billion for the quarter, up 19% year-over-year from $5.7 billion, driven by higher net interest income and non-interest income.
• Net interest income was $5.9 billion, an 8% increase year-over-year, primarily due to growth in the fully guaranteed securitizations in the Multifamily portfolio and continued Single-Family mortgage portfolio growth.
• Non-interest income was $0.9 billion, compared to $0.3 billion in the third quarter of 2025, driven by net investment gains versus net investment losses in the prior year period.
• Provision for credit losses was $0.8 billion, an increase from $0.2 billion in the third quarter of 2025, primarily due to a credit reserve build in Single-Family driven by projected future mortgage interest rates and new acquisitions.
• Non-interest expense was $2.0 billion, down 6% year-over-year, driven by lower credit enhancement expense and decreased salaries and employee benefits.
• Net worth was $81 billion as of September 30, 2026, up from $67.6 billion in the third quarter of 2025.
• Total mortgage portfolio was $3.7 trillion as of September 30, 2026.
• Serious delinquency rate was 0.61% as of September 30, 2026, up from 0.57% at September 30, 2025.

Guidance and Future Outlook:

• No specific forward financial guidance or quantitative future outlook was provided in the press release.
• Management noted that the liquidation preference of the senior preferred stock will increase to $153.6 billion on December 31, 2026, based on the increase in Net Worth Amount during the third quarter of 2026.

Business Segments and Product Lines:

• Single-Family Segment:
  • Generated net income of $2.7 billion, up 16% year-over-year.
  • Net revenues were $5.8 billion, up 19% year-over-year.
  • New business activity was $98 billion, down from $99 billion in the third quarter of 2025.
  • Financed 286,000 mortgages, with 56% of eligible loans affordable to low- to moderate-income families.
  • First-time homebuyers represented 51% of new single-family home purchase loans.
  • Mortgage portfolio was $3.2 trillion, up 1% year-over-year.
  • Delinquency rate was 0.58%, up from 0.51% at September 30, 2025.
• Multifamily Segment:
  • Generated net income of $0.5 billion, up 22% year-over-year.
  • Net revenues were $1.0 billion, up 17% year-over-year.
  • New business activity was $16 billion, down from $25 billion in the third quarter of 2025, primarily driven by the higher mortgage interest rate environment.
  • Financed 134,000 rental units, with 91% of eligible units affordable to low- to moderate-income families.
  • Mortgage portfolio was $510 billion, up 6% year-over-year.
  • Delinquency rate was 0.58%, up from 0.44% at December 31, 2025.

Market and Competitive Landscape:

• The Multifamily business strategy change resulted in an increase in the balance of fully guaranteed securitizations.
• The company began accepting the use of VantageScore's credit scoring model by all lenders in the third quarter, following direction from the U.S. Federal Housing Administration.
• The higher mortgage interest rate environment contributed to a decline in new business activity in the Multifamily segment.

Risks and Challenges:

• The provision for credit losses increased due to a credit reserve build in Single-Family driven by an increase in projected future mortgage interest rates.
• Delinquency rates increased in both Single-Family and Multifamily segments compared to prior periods.
• The press release includes standard forward-looking statement risks regarding economic conditions, government actions, regulatory developments, and market trends.

Management Commentary and Tone:

• William J. Pulte, Director of U.S. Federal Housing and Chair of the Board, stated: "Freddie Mac delivered another strong quarter, with solid earnings and a growing mortgage portfolio."
• Kenny Smith, CEO, stated: "Freddie Mac's team has made home possible for millions of families across the country. In the third quarter alone, we helped 420,000 families buy, refinance, or rent a home... We earned net income of $3.2 billion on net revenue of $6.8 billion in the third quarter."
• Management highlighted that through the first three quarters of 2026, net income has increased 34% compared with the same period a year ago.

Other Key Points:

• Freddie Mac is operating under conservatorship with the Federal Housing Finance Administration (FHFA) as Conservator.
• The company was not required to pay a dividend to the Treasury on the senior preferred stock in September 2026 as it has not yet built sufficient capital to meet the capital requirements and buffers set forth in the Enterprise Regulatory Capital Framework.
• The amount of funding available to Freddie Mac under the Purchase Agreement with the Treasury was $140.2 billion at September 30, 2026.
• Cumulative dividend payments to the Treasury were $119.7 billion, and cumulative draws from the Treasury were $71.6 billion as of September 30, 2026.
• The liquidation preference of the senior preferred stock increased to $150.4 billion on September 30, 2026.
• The company financed 420,000 homes and rental units in the third quarter, including 106,000 first-time homebuyers.