Company: FMCCN
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001026214-25-000086
Chunk: 130

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 1
Chunk 130
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 2025 vs. YTD 2024 

l    Net income of $0.8 billion, down 36% year-over-year.

–Net revenues were $1.7 billion, down 21% year-over-year.

◦Net interest income was $0.8 billion, up 33% 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 $1.0 billion, down 40% year-over-year, 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. 

l    Provision for credit losses was $0.2 billion for YTD 2025, primarily driven by a credit reserve build attributable to new loan purchase commitment and acquisition activity, coupled with deterioration in the credit performance of certain delinquent loans. 

Freddie Mac 2Q 2025 Form 10-Q19

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

The tables below present a summary of the changes in our allowance for credit losses and key allowance for credit losses ratios.

Table 13 - Allowance for Credit Losses Activity

2Q 20252Q 2024YTD 2025YTD 2024(Dollars in millions) Single-FamilyMulti-familyTotalSingle-FamilyMulti-familyTotalSingle-FamilyMulti-familyTotalSingle-FamilyMulti-familyTotalAllowance for credit losses:Beginning balance$6,851 $600 $7,451 $6,508 $508 $7,016 $6,691 $548 $7,239 $6,402 $447 $6,849 Provision (benefit) for credit losses622 161 783 315 79 394 850 213 1,063 435 140 575   Charge-offs(96)(4)(100)(169)— (169)(287)(5)(292)(292)— (292)  Recoveries collected23 — 23