Company: FMCCN
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001026214-25-000040
Chunk: 35

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-02-13
Form: 10-K
Item: Item 12
Chunk 35
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 for 2023, primarily driven by a credit reserve release due to improvements in house prices.

n    2023 vs. 2022 

l    Net income of $9.0 billion, up 14% year-over-year.

–Net revenues were $18.3 billion, down 3% year-over-year.

◦Net interest income was $17.7 billion, up 3% year-over-year, primarily driven by higher investments net interest income as a result of higher short-term interest rates, partially offset by lower deferred fee income due to slower mortgage prepayment activity. 

◦Non-interest income was $0.6 billion, down 64% year-over-year, as the prior year period included spread-related gains on commitments to hedge the securitization pipeline that did not recur in 2023.

–Benefit for credit losses was $1.2 billion for 2023, primarily driven by a credit reserve release due to improvements in house prices. The provision for credit losses was $1.8 billion for 2022, primarily driven by a credit reserve build due to deterioration in house prices.

–Non-interest expense was $8.1 billion for 2023, up 14% year-over-year, primarily driven by higher credit enhancement expense due to a higher volume of outstanding cumulative CRT transactions and higher losses on STACR Trust note repurchases, a decrease in credit enhancement recoveries due to a decline in expected credit losses on covered loans, and an allocation of $250 million for the $313 million accrual for the adverse judgment at trial.

FREDDIE MAC  |  2024 Form 10-K37

Management's Discussion and AnalysisOur Business Segments | Multifamily

Multifamily

Business Overview

Our Multifamily segment provides liquidity and support to the multifamily mortgage market through a variety of activities that include the purchase, securitization, and guarantee of multifamily loans originated by our Optigo® network of approved lenders. Our support of the multifamily mortgage market occurs through all economic cycles and is especially important during periods of economic stress. During these periods, we serve a critical countercyclical role by providing liquidity when many other capital providers exit the market. Central to our mission is our commitment to support greater access to quality, affordable, and sustainable rental housing, particularly in underserved markets.

Multifamily loans are typically originated by our Optigo lenders without recourse to the borrower, making repayment dependent on the cash flows generated by the underlying