Freddie Mac Reports Net Income of $2.7 Billion for Third Quarter 2023

Making Home Possible for 389,000 Households in Third Quarter 2023

• Financed 271,000 mortgages, with 56% of eligible loans being affordable to low- to moderate-income families, and 

enabled 108,000 first-time homebuyers to purchase a home.

• Financed 118,000 rental units, with 90% of eligible units being affordable to low- to moderate-income families.

Third Quarter 2023 Financial Results

Market Liquidity 

Provided -

$98 Billion

Homes and Rental Units 

Financed -

389,000

Net Worth -

$44.7 Billion

Total Mortgage

 Portfolio -

$3.5 Trillion

Consolidated • Net income of $2.7 billion, an increase of 104% year-over-year, 

with the increase primarily driven by a credit reserve release in 

Single-Family in the current period compared to a credit 

reserve build in Single-Family in the prior period. 

• Net revenues of $5.7 billion, an increase of 10% year-over-year, 

driven by higher net interest income and non-interest income.

• Benefit for credit losses of $0.3 billion, primarily driven by 

increases in house price appreciation in Single-Family.

• New business activity of $85 billion, down 30% year-over-year, 

as both home purchase activity and refinance activity slowed 

due to higher mortgage interest rates.

• Mortgage portfolio of $3.0 trillion, up 2% year-over-year, as 

portfolio growth has moderated in recent periods due to the 

slowdown in new business activity.

• Serious delinquency rate of 0.55%, down from 0.67% at 

September 30, 2022.

• Completed approximately 18,000 loan workouts.

• 62% of mortgage portfolio covered by credit enhancements.

• New business activity of $13 billion, down 7% year-over-year, 

as higher mortgage interest rates have reduced demand for 

multifamily financing.

• Mortgage portfolio of $432 billion, up 4% year-over-year, as 

portfolio growth has moderated in recent periods due to the 

slowdown in new business activity.

• Delinquency rate of 0.24%, up from 0.13% at September 30, 

2022.

• 95% of mortgage portfolio covered by credit enhancements.

“Freddie Mac delivered 

solid third quarter 

earnings while supporting 

the U.S. housing finance 

system. Fifteen years 

after entering 

conservatorship, Freddie 

Mac is a stronger, more 

focused company. Year 

to date, Freddie Mac has 

helped make home 

possible for more than 

719,000 single-family 

homeowners and 

292,000 renters and 

remains strongly 

committed to the mission 

of making owning or 

renting a home affordable 

and accessible for 

families across the 

country.”

Michael J. DeVito

Chief Executive Officer

Net Revenues 

$5.7 Billion

Net Income

$2.7 Billion

Comprehensive 

Income

$2.7 Billion

Single-Family

Net Revenues 

$4.9 Billion

Net Income 

$2.3 Billion

Comprehensive

Income

$2.3 Billion

Multifamily

Net Revenues 

$0.8 Billion

Net Income 

$0.4 Billion

Comprehensive

Income 

$0.4 Billion
McLean, VA — Freddie Mac (OTCQB: FMCC) today reported net income of $2.7 billion for the third quarter of 

2023, an increase of 104% year-over-year, with the increase primarily driven by a credit reserve release in SingleFamily in the current period compared to a credit reserve build in Single-Family in the prior period. 

Net revenues were $5.7 billion, up 10% year-over-year, driven by higher net interest income and non-interest 

income. Net interest income was $4.7 billion, up 4% 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 $0.9 billion, up 50% year-over year, primarily 

driven by higher guarantee income in Multifamily and higher net investment gains.

Benefit for credit losses was $0.3 billion for the third quarter of 2023, primarily driven by a credit reserve release in 

Single-Family due to increases in observed and forecasted house price appreciation, partially offset by a credit 

reserve build in Multifamily due to deterioration in overall loan performance. The provision for credit losses of $1.8 

billion for the third quarter of 2022 was primarily driven by a credit reserve build in Single-Family due to 

deterioration in housing market conditions, including lower observed and forecasted house price appreciation. 

Non-interest expense was $2.6 billion, up 41% year-over-year, primarily driven by an accrual of $0.3 billion for an 

adverse judgment at trial and a decrease in credit enhancement recoveries due to a decline in expected credit 

losses on covered loans.

Summary of Consolidated Statements of Income and Comprehensive Income 

(Dollars in millions) 3Q 2023 2Q 2023 Change 3Q 2022 Change

Net interest income $4,749 $4,523 $226 $4,554 $195

Non-interest income 941 816 125 627 314

Net revenues 5,690 5,339 351 5,181 509

(Provision) benefit for credit losses 263 537 (274) (1,796) 2,059

Non-interest expense (2,576) (2,204) (372) (1,825) (751)

Income before income tax expense 3,377 3,672 (295) 1,560 1,817

Income tax expense (692) (728) 36 (247) (445)

Net income 2,685 2,944 (259) 1,313 1,372

Other comprehensive income (loss), net of taxes 

and reclassification adjustments 19 (54) 73 (181) 200

Comprehensive income $2,704 $2,890 ($186) $1,132 $1,572

Conservatorship metrics (in millions)

Net worth $44,661 $41,957 $2,704 $35,230 $9,431

Senior preferred stock liquidation preference 114,605 111,715 2,890 106,746 7,859

Remaining Treasury funding commitment 140,162 140,162 — 140,162 —

Cumulative dividend payments to Treasury 119,680 119,680 — 119,680 —

Cumulative draws from Treasury 71,648 71,648 — 71,648 —

Freddie Mac Third Quarter 2023 Financial Results 

November 1, 2023

Page 2 
Single-Family Segment

Financial Results 

Net Revenues

(In billions)

$4.4 $4.2 $4.2 $4.4

$4.9

3Q22 4Q22 1Q23 2Q23 3Q23

Net Income

(In billions)

$0.8

$1.5 $1.7

$2.4 $2.3

3Q22 4Q22 1Q23 2Q23 3Q23

Comprehensive Income

(In billions)

$0.8

$1.5 $1.7

$2.4 $2.3

3Q22 4Q22 1Q23 2Q23 3Q23

(Dollars in millions) 3Q 2023 2Q 2023 Change 3Q 2022 Change

Net interest income $4,534 $4,295 $239 $4,363 $171

Non-interest income 393 65 328 58 335

Net revenues 4,927 4,360 567 4,421 506

(Provision) benefit for credit losses 304 638 (334) (1,784) 2,088

Non-interest expense (2,310) (2,028) (282) (1,653) (657)

Income before income tax expense 2,921 2,970 (49) 984 1,937

Income tax expense (598) (589) (9) (141) (457)

Net income 2,323 2,381 (58) 843 1,480

Other comprehensive income (loss), net of taxes and 

reclassification adjustments (6) 2 (8) (39) 33 

Comprehensive income $2,317 $2,383 ($66) $804 $1,513

Third Quarter 2023

Net income of $2.3 billion, up 176% year-over-year.

• Net revenues were $4.9 billion, up 11% year-over year. Net interest income was $4.5 billion, up 4% year-overyear, 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.

• Benefit for credit losses was $0.3 billion for the third quarter of 2023, primarily driven by a credit reserve 

release due to increases in observed and forecasted house price appreciation. The provision for credit losses 

of $1.8 billion for the third quarter of 2022 was primarily driven by a deterioration in housing market conditions, 

including lower observed and forecasted house price appreciation.

• Non-interest expense was $2.3 billion for the third quarter of 2023, up 40% year-over-year, primarily driven by 

an allocation of $250 million for the accrual for an adverse judgment at trial and a decrease in credit 

enhancement recoveries due to a decline in expected credit losses on covered loans.

Freddie Mac Third Quarter 2023 Financial Results 

November 1, 2023

Page 3 
Single-Family Segment

Business Results

New Business Activity

(UPB in billions)

$121

$75

$59

$83 $85

$98

$63 $51 $73 $76

$23

$12

$8

$10 $9

Home purchase Refinance

3Q22 4Q22 1Q23 2Q23 3Q23

Mortgage Portfolio

(UPB in billions)

$2,971 $2,986 $2,989 $3,004 $3,024

3Q22 4Q22 1Q23 2Q23 3Q23

Serious Delinquency Rate

0.67% 0.66% 0.62% 0.56% 0.55%

3Q22 4Q22 1Q23 2Q23 3Q23

3Q 2023 2Q 2023 Change 3Q 2022 Change

New Business Statistics:

Single-Family homes funded (in thousands) 271 258 13 392 (121)

Purchase borrowers (in thousands) 233 217 16 297 (64)

Refinance borrowers (in thousands) 38 41 (3) 95 (57)

Affordable to low- to moderate-income families (%)(1) 56 55 1 56 — 

First-time homebuyers (%)(2) 50 52 (2) 49 1 

Average estimated guarantee fee rate (bps) 55 57 (2) 54 1

Weighted average original loan-to-value (LTV) (%) 78 79 (1) 78 — 

Weighted average original credit score 753 751 2 747 6

UPB covered by new CRT issuance (in billions) $8 $56 ($48) $136 ($128)

Portfolio Statistics:

Average estimated guarantee fee rate (bps) 48 48 — 48 —

Weighted average current LTV (%) 53 54 (1) 53 — 

Weighted average current credit score 756 756 — 756 —

Loan count (in millions) 13.7 13.6 0.1 13.6 0.1

Credit-Related Statistics:

Loan workout activity (in thousands) 18 20 (2) 28 (10)

Credit enhancement coverage (%) 62 62 — 61 1 

(1) Eligible loans acquired affordable to families earning at or below 120% of area median income (AMI).

(2) Calculated as a percentage of purchase borrowers with loans secured by primary residences.

Business Highlights

• The percentage of new acquisitions represented by purchase loans increased in the third quarter of 2023, 

compared to the third quarter of 2022, as refinance activity slowed due to higher mortgage interest rates. Firsttime homebuyers represented 50% of new single-family home purchase loans.

• The UPB of mortgage loans covered by CRT transactions issued during the third quarter of 2023 decreased 

compared to the third quarter of 2022 due to a decrease in loan acquisition activity in recent quarters and 

changes in business strategy and market conditions.

• Single-Family loan workout activity decreased to 18,000 from 28,000 in the third quarter of 2022, as the 

seriously delinquent loan population continued to decline.

• Credit enhancement coverage of the Single-Family mortgage portfolio increased to 62% at September 30, 

2023, up from 61% at September 30, 2022.

Freddie Mac Third Quarter 2023 Financial Results 

November 1, 2023

Page 4 
Multifamily Segment

Financial Results

Net Revenues

(In billions)

$0.8

$0.6 $0.6

$1.0

$0.8

3Q22 4Q22 1Q23 2Q23 3Q23

Net Income

(In billions)

$0.5

$0.3 $0.3

$0.6

$0.4

3Q22 4Q22 1Q23 2Q23 3Q23

Comprehensive Income

(In billions)

$0.3 $0.3

$0.4

$0.5

$0.4

3Q22 4Q22 1Q23 2Q23 3Q23

 

(Dollars in millions) 3Q 2023 2Q 2023 Change 3Q 2022 Change

Net interest income $215 $228 ($13) $191 $24

Non-interest income 548 751 (203) 569 (21)

Net revenues 763 979 (216) 760 3

(Provision) benefit for credit losses (41) (101) 60 (12) (29)

Non-interest expense (266) (176) (90) (172) (94)

Income before income tax expense 456 702 (246) 576 (120)

Income tax expense (94) (139) 45 (106) 12

Net income 362 563 (201) 470 (108)

Other comprehensive income (loss), net of taxes and 

reclassification adjustments 25 (56) 81 (142) 167

Comprehensive income $387 $507 ($120) $328 $59

Third Quarter 2023

Net income of $0.4 billion, down 23% year-over-year.

• Net revenues remained $0.8 billion, essentially unchanged year-over-year.

• Provision for credit losses was $41 million in the third quarter of 2023, driven by a credit reserve build due to 

deterioration in overall loan performance.

• Non-interest expense was $0.3 billion, up 55% year-over-year, primarily driven by an allocation of $63 million

for the accrual for an adverse judgment at trial.

Freddie Mac Third Quarter 2023 Financial Results 

November 1, 2023

Page 5 
Multifamily Segment

Business Results 

New Business Activity

(UPB in billions)

$14

$29

$6

$13 $13

3Q22 4Q22 1Q23 2Q23 3Q23

Mortgage Portfolio 

(UPB in billions)

$416 $429 $426 $427 $432

3Q22 4Q22 1Q23 2Q23 3Q23

Delinquency Rate

0.13% 0.12% 0.13%

0.21%

0.24%

3Q22 4Q22 1Q23 2Q23 3Q23

3Q 2023 2Q 2023 Change 3Q 2022 Change

New Business Statistics:

Number of rental units financed (in thousands)(1) 118 114 4 150 (32)

Affordable to low-income families (%)(2) 66 67 (1) 75 (9) 

Affordable to low- to moderate-income families (%)(3) 90 90 — 96 (6) 

Weighted average original LTV (%) 60 58 2 59 1 

Weighted average original debt service coverage ratio 1.26 1.27 (0.01) 1.31 (0.05)

UPB covered by new CRT issuance (in billions) $17 $16 $1 $11 $6

Portfolio Statistics:

Average guarantee fee rate charged (bps) 46 45 1 43 3

Credit-Related Statistics:

Credit enhancement coverage (%) 95 94 1 95 — 

(1) Includes rental units financed by supplemental loans.

(2) Eligible units acquired affordable to families earning at or below 80% of AMI.

(3) Eligible units acquired affordable to families earning at or below 120% of AMI.

Business Highlights

• The company provided financing for 118,000 multifamily rental units. 66% of the eligible multifamily rental units 

financed were affordable to low-income families.

• The Multifamily delinquency rate increased to 0.24% at September 30, 2023 primarily driven by an increase in 

delinquent loans in our senior housing and small balance loan portfolios. 94% of the delinquent loans in the 

Multifamily mortgage portfolio have credit enhancement coverage, while 95% of all loans in the Multifamily 

mortgage portfolio have credit enhancement coverage.

• The UPB of mortgage loans covered by new CRT transactions increased in the third quarter of 2023, 

compared to the third quarter of 2022, primarily due to the issuance of Multifamily Credit Insurance Pool 

(MCIP) and Structured Credit Risk (SCR) Trust note transactions. There were no MCIP or SCR Trust note 

transactions in the third quarter of 2022.

Freddie Mac Third Quarter 2023 Financial Results 

November 1, 2023

Page 6 
 About Freddie Mac’s Conservatorship 

Since September 2008, Freddie Mac has been operating under conservatorship with FHFA as Conservator. The 

support provided by Treasury pursuant to the Purchase Agreement enables the company to maintain access to 

the debt markets and have adequate liquidity to conduct its normal business operations. The amount of funding 

available to Freddie Mac under the Purchase Agreement was $140.2 billion at September 30, 2023. 

Pursuant to the Purchase Agreement, Freddie Mac will not be required to pay a dividend to Treasury on the senior 

preferred stock until it has built sufficient capital to meet the capital requirements and buffers set forth in the 

Enterprise Regulatory Capital Framework. As a result, the company was not required to pay a dividend to Treasury 

on the senior preferred stock in September 2023. As the company builds capital during this period, the quarterly 

increases in its Net Worth Amount have been, or will be, added to the aggregate liquidation preference of the 

senior preferred stock. The liquidation preference of the senior preferred stock increased to $114.6 billion on 

September 30, 2023 based on the increase in the Net Worth Amount during the second quarter of 2023, and will 

increase to $117.3 billion on December 31, 2023 based on the increase in the Net Worth Amount during the third 

quarter of 2023.

Additional Information

For more information, including information related to Freddie Mac’s financial results, conservatorship, and related 

matters, see the company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 and the 

company’s Third Quarter 2023 Financial Results Supplement. These documents are available on the Investor 

Relations page of the company’s website at www.FreddieMac.com.

Additional information about Freddie Mac and its business is also set forth in the company’s other filings with the 

SEC, which are available on the Investor Relations page of the company’s website at www.FreddieMac.com and 

the SEC’s website at www.sec.gov. Freddie Mac encourages all investors and interested members of the public to 

review these materials for a more complete understanding of the company’s financial results and related 

disclosures.

Webcast Announcement

Management will host a conference call at 9 a.m. Eastern Time on November 1, 2023 to share the company’s 

results with the media. The conference call will be concurrently webcast. To access the audio webcast, use the 

following link: https://edge.media-server.com/mmc/p/eokmx68e. The replay will be available on the company’s 

website at www.FreddieMac.com for approximately 30 days. All materials related to the call will be available on the 

Investor Relations page of the company’s website at www.FreddieMac.com.

Media Contact: Frederick Solomon (703) 903-3861 Investor Contact: Mahesh Lal (571) 382-4732 

* * * *

This press release contains forward-looking statements, which may include statements pertaining to the 

conservatorship, the company’s current expectations and objectives for its Single-Family and Multifamily 

segments, its efforts to assist the housing market, liquidity and capital management, economic and market 

conditions and trends including, but not limited to, changes in observed and forecasted house price appreciation, 

its market share, the effect of legislative and regulatory developments and new accounting guidance, the credit 

quality of loans the company owns or guarantees, the costs and benefits of the company’s CRT transactions, 

banking crises or failures, the effects of natural disasters, other catastrophic events, and significant climate change 

effects and actions taken in response thereto on its business, results of operations, and financial condition. 

Forward-looking statements involve known and unknown risks and uncertainties, some of which are beyond the 

company’s control. Management’s expectations for the company’s future necessarily involve a number of 

assumptions, judgments, and estimates, and various factors, including changes in economic and market 

conditions, liquidity, mortgage spreads, credit outlook, actions by the U.S. government (including FHFA, Treasury, 

and Congress) and state and local governments, changes in the fiscal and monetary policies of the Federal 

Reserve, the impact of any downgrade in our credit ratings or those of the U.S. government, and the impacts of 

legislation or regulations and new or amended accounting guidance, that could cause actual results to differ 

materially from these expectations. These assumptions, judgments, estimates, and factors are discussed in the 

company’s Annual Report on Form 10-K for the year ended December 31, 2022, Quarterly Report on Form 10-Q 

for the quarters ended March 31, 2023, June 30, 2023, and September 30, 2023, and Current Reports on Form 8-

Freddie Mac Third Quarter 2023 Financial Results 

November 1, 2023

Page 7 
K, which are available on the Investor Relations page of the company’s website at www.FreddieMac.com and the 

SEC’s website at www.sec.gov. The company undertakes no obligation to update forward-looking statements it 

makes to reflect events or circumstances occurring after the date of this press release.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. 

Since its creation by Congress in 1970, the company has made housing more accessible and affordable for 

homebuyers and renters in communities nationwide. The company is building a better housing finance system for 

homebuyers, renters, lenders, and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie 

Mac’s blog FreddieMac.com/blog.

Freddie Mac Third Quarter 2023 Financial Results 

November 1, 2023

Page 8 
FREDDIE MAC

Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited)

(In millions, except share-related amounts) 3Q 2023 2Q 2023 3Q 2022

Net interest income

Interest income $26,799 $25,755 $21,894

Interest expense (22,050) (21,232) (17,340) 

Net interest income 4,749 4,523 4,554 

Non-interest income

Guarantee income 301 309 125 

Investment gains, net 555 411 415 

Other income 85 96 87 

Non-interest income 941 816 627 

Net revenues 5,690 5,339 5,181 

(Provision) benefit for credit losses 263 537 (1,796) 

Non-interest expense

Salaries and employee benefits (418) (405) (387) 

Credit enhancement expense (634) (590) (542) 

Benefit for (decrease in) credit enhancement recoveries (103) (108) 210 

Legislative assessments expense (757) (751) (753) 

Other expense (664) (350) (353) 

Non-interest expense (2,576) (2,204) (1,825) 

Income before income tax expense 3,377 3,672 1,560 

Income tax expense (692) (728) (247) 

Net income 2,685 2,944 1,313 

Other comprehensive income (loss), net of taxes and reclassification adjustments 19 (54) (181) 

Comprehensive income $2,704 $2,890 $1,132

Net income $2,685 $2,944 $1,313

Amounts attributable to senior preferred stock (2,704) (2,890) (1,132)

Net income attributable to common stockholders ($19) $54 $181

Net income per common share ($0.01) $0.02 $0.06

Weighted average common shares (in millions) 3,234 3,234 3,234 

Freddie Mac Third Quarter 2023 Financial Results 

November 1, 2023

Page 9 
FREDDIE MAC 

Condensed Consolidated Balance Sheets (Unaudited)

September 30, December 31,

(In millions, except share-related amounts) 2023 2022

Assets

Cash and cash equivalents (includes $655 and $707 of restricted cash and cash equivalents) $5,354 $6,360

Securities purchased under agreements to resell 115,161 87,295 

Investment securities, at fair value 39,443 38,701 

Mortgage loans held-for-sale (includes $8,071 and $3,218 at fair value) 13,905 12,197 

Mortgage loans held-for-investment (net of allowance for credit losses of $6,948 and $7,391 

and includes $1,309 and $1,214 at fair value) 3,060,822 3,022,318 

Accrued interest receivable, net 9,526 8,529 

Deferred tax assets, net 4,875 5,777 

Other assets (includes $5,798 and $5,890 at fair value) 22,555 27,156 

Total assets $3,271,641 $3,208,333

Liabilities and equity

Liabilities

Accrued interest payable $8,451 $7,309

Debt (includes $2,597 and $3,047 at fair value) 3,202,097 3,145,832 

Other liabilities (includes $1,128 and $759 at fair value) 16,432 18,174 

Total liabilities 3,226,980 3,171,315 

Commitments and contingencies

Equity

Senior preferred stock (liquidation preference of $114,605 and $107,878) 72,648 72,648 

Preferred stock, at redemption value 14,109 14,109 

Common stock, $0.00 par value, 4,000,000,000 shares authorized, 725,863,886 shares 

issued and 650,059,553 shares outstanding — — 

Retained earnings (38,042) (45,666) 

AOCI, net of taxes, related to:

Available-for-sale securities (71) (84) 

Other (98) (104) 

Total AOCI, net of taxes (169) (188) 

Treasury stock, at cost, 75,804,333 shares (3,885) (3,885) 

Total equity 44,661 37,018 

Total liabilities and equity $3,271,641 $3,208,333

The table below presents the carrying value and classification of the assets and liabilities of consolidated variable interest entities (VIEs) on the 

company's condensed consolidated balance sheets.

September 30, December 31,

(In millions) 2023 2022

Assets:

Cash and cash equivalents (includes $566 and $610 of restricted cash and cash equivalents) $567 $611 

Securities purchased under agreements to resell 10,786 9,703 

Investment securities, at fair value 82 126

Mortgage loans held-for-investment, net 3,019,212 2,971,601

Accrued interest receivable, net 8,594 7,944 

Other assets 5,536 5,019 

Total assets of consolidated VIEs $3,044,777 $2,995,004

Liabilities:

Accrued interest payable $7,280 $6,619

Debt 3,027,175 2,979,070

Total liabilities of consolidated VIEs $3,034,455 $2,985,689

Freddie Mac Third Quarter 2023 Financial Results 

November 1, 2023

Page 10