Company: FMCCN
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001026214-25-000116
Chunk: 132

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 1
Chunk 132
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,254 1,834 (580)(32)Other comprehensive income (loss), net of taxes and reclassification adjustments10 52 (42)(81)48 32 16 50 Comprehensive income$436 $584 ($148)(25)%$1,302 $1,866 ($564)(30)%

Key Drivers: 

n    3Q 2025 vs. 3Q 2024 

l    Net income of $0.4 billion, down 20% year-over-year.

–Net revenues were $0.8 billion, up 7% year-over-year.

◦Net interest income was $0.4 billion, up 33% year-over-year, primarily driven by our business strategy change that resulted in an increase in the volume of fully guaranteed securitizations.

◦Non-interest income was $0.4 billion, down 10% year-over-year, primarily driven by lower revenues from held-for-sale loan purchase and securitization activities due to our business strategy change, partially offset by impacts from interest-rate risk management activities. 

l    Provision for credit losses was $0.1 billion for 3Q 2025, primarily driven by new loan purchase commitment and acquisition activities and deterioration in the credit performance of certain delinquent loans. The benefit for credit losses of $0.1 billion for 3Q 2024 was primarily driven by a credit reserve release due to enhancements in the credit loss estimation process.

n    YTD 2025 vs. YTD 2024 

l    Net income of $1.3 billion, down 32% year-over-year.

–Net revenues were $2.6 billion, down 14% year-over-year.

◦Net interest income was $1.2 billion, up 33% year-over-year, primarily driven by our business strategy change that resulted in an increase in the volume of fully guaranteed securitizations.

◦Non-interest income was $1.4 billion, down 33% year-over-year, primarily driven by lower revenues from held-for-sale loan purchase and securitization activities due to our business strategy change, impacts from interest-rate risk management activities, and less favorable fair value changes from prepayment rates. 

l    Provision for credit losses was $0.3 billion for YTD 2025, primarily driven by a credit reserve build attributable to new loan purchase commitment and acquisition activities, coupled with