Company: FMCCN
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001026214-25-000060
Chunk: 11

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 12
Chunk 11
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Management's Discussion and AnalysisOur 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 20251Q 2024$%Net interest income$349 $271 $78 29 %Non-interest income585 1,012 (427)(42)Net revenues934 1,283 (349)(27)(Provision) benefit for credit losses(52)(61)9 15 Non-interest expense(217)(197)(20)(10)Income before income tax expense665 1,025 (360)(35)Income tax expense(132)(204)72 35 Net income533 821 (288)(35)Other comprehensive income (loss), net of taxes and reclassification adjustments26 (20)46 NMComprehensive 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-Q18

Management's Discussion and AnalysisRisk 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