Company: FMCCN
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001026214-25-000116
Chunk: 14

Company: FEDERAL HOME LOAN MORTGAGE CORP
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 12
Chunk 14
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 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 deterioration in the credit performance of certain delinquent loans. 

Freddie Mac 3Q 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