Company: FMCCN
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001026214-25-000086
Chunk: 12

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 12
Chunk 12
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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 ChangeChange(Dollars in millions)2Q 20252Q 2024$%YTD 2025YTD 2024$%Net interest income$401 $293 $108 37 %$750 $564 $186 33 %Non-interest income380 601 (221)(37)965 1,613 (648)(40)Net revenues781 894 (113)(13)1,715 2,177 (462)(21)(Provision) benefit for credit losses(161)(79)(82)(104)(213)(140)(73)(52)Non-interest expense(253)(213)(40)(19)(470)(410)(60)(15)Income before income tax expense367 602 (235)(39)1,032 1,627 (595)(37)Income tax expense(72)(121)49 40 (204)(325)121 37 Net income295 481 (186)(39)828 1,302 (474)(36)Other comprehensive income (loss), net of taxes and reclassification adjustments12 — 12 NM38 (20)58 NMComprehensive income$307 $481 ($174)(36)%$866 $1,282 ($416)(32)%

Key Drivers: 

n    2Q 2025 vs. 2Q 2024 

l    Net income of $0.3 billion, down 39% year-over-year.

–Net revenues were $0.8 billion, down 13% year-over-year.

◦Net interest income was $0.4 billion, up 37% year-over-year, primarily driven by our change in business strategy that resulted in an increase in the volume of fully guaranteed securitizations.

◦Non-interest income was $0.4 billion, down 37% year-over-year, primarily driven by lower revenues from held-for-sale loan purchase and securitization activities and impacts from interest-rate risk management activities. 

l    Provision for credit losses was $0.2 billion for 2Q 2025, primarily driven by a credit reserve build attributable to new loan