Freddie Mac Reports Net Income of $3.8 Billion for First Quarter 2022

Making Home Possible for Over 835,000 Households in First Quarter 2022

• Financed 691,000 mortgages, with 52% of eligible loans being affordable to low- to moderate-income families, and 

enabled 111,000 first-time homebuyers to purchase a home

• Financed 144,000 rental units, with 95% of eligible units being affordable to low- to moderate-income families

First Quarter 2022 Financial Results

Market Liquidity 

Provided -

$223 Billion

Homes and Rental Units 

Financed -

835,000

Net Worth -

$31.7 Billion

Total Mortgage

 Portfolio -

$3.3 Trillion

Consolidated • Net income of $3.8 billion, an increase of 37% year-over-year, 

driven by higher net revenues and a credit reserve release in 

Single-Family

• Net revenues of $5.8 billion, an increase of 11% year-over-year, 

primarily driven by higher net interest income and an increase 

in net investment gains 

• Benefit for credit losses of $0.8 billion, driven by a credit 

reserve release due to observed house price appreciation and 

higher forecasted house prices

• New business activity of $207 billion, down 43% year-overyear, as refinance activity moderated

• Mortgage portfolio of $2.9 trillion, up 17% year-over-year, 

driven by continued house price appreciation and strong home 

purchase activity

• Serious delinquency rate of 0.92%, down from 1.12% at 

December 31, 2021 and 2.34% at March 31, 2021, driven by 

the decline of loans in forbearance

• Completed approximately 49,000 loan workouts

• 55% of mortgage portfolio covered by credit enhancements

• New business activity of $15 billion, up 7% year-over-year

• Mortgage portfolio of $415 billion, up 5% year-over-year, driven 

by ongoing loan purchase and securitization activity

• Delinquency rate of 0.08%, unchanged from December 31, 

2021 and down from 0.17% at March 31, 2021 

• 94% of mortgage portfolio covered by credit enhancements

“Freddie Mac delivered a 

strong first quarter 

performance, with net 

income exceeding both 

the first and fourth 

quarters of 2021. SingleFamily serious 

delinquencies have 

declined to their lowest 

point in two years, and 

Multifamily delinquencies 

are at near pre-pandemic 

levels as well. We remain 

intensely focused on our 

expansive mission, with 

an emphasis on 

promoting greater equity 

and sustainability.”

Michael J. DeVito

Chief Executive Officer

Net Revenues 

$5.8 Billion

Net Income

$3.8 Billion

Comprehensive 

Income

$3.7 Billion

Single-Family

Net Revenues 

$5.2 Billion

Net Income 

$3.4 Billion

Comprehensive

Income

$3.4 Billion

Multifamily

Net Revenues 

$0.6 Billion

Net Income 

$0.4 Billion

Comprehensive

Income 

$0.3 Billion
McLean, VA — Freddie Mac (OTCQB: FMCC) today reported net income of $3.8 billion for the first quarter of 2022, 

an increase of 37% year-over-year, due to higher net revenues and a credit reserve release in Single-Family. 

Net revenues increased 11% year-over-year to $5.8 billion, primarily driven by higher net interest income and an 

increase in net investment gains. Net interest income increased 13% year-over-year to $4.1 billion, primarily driven 

by continued mortgage portfolio growth and higher average portfolio guarantee fee rates in Single-Family. Net 

investment gains increased 25% year-over year to $1.5 billion, as higher gains in Single-Family offset a decline in 

Multifamily.

Benefit for credit losses increased $0.6 billion year-over-year to $0.8 billion, driven by a credit reserve release due 

to observed house price appreciation and higher forecasted house prices.

Summary of Consolidated Results of Operations

(Dollars in millions) 1Q 2022 4Q 2021 Change 1Q 2021 Change

Net interest income $4,104 $4,756 ($652) $3,639 $465

Guarantee income 70 182 (112) 248 (178)

Investment gains (losses), net 1,513 519 994 1,208 305

Other income (loss) 159 108 51 178 (19)

Net revenues 5,846 5,565 281 5,273 573

Benefit (provision) for credit losses 837 (138) 975 196 641

Salaries and employee benefits (356) (356) 0 (344) (12)

Credit enhancement expense (459) (428) (31) (335) (124)

Benefit for (decrease in) credit enhancement 

recoveries (17) (32) 15 (257) 240

Legislative assessments expense (759) (761) 2 (691) (68)

Other expense (341) (415) 74 (361) 20

Non-interest expense (1,932) (1,992) 60 (1,988) 56

Income (loss) before income tax (expense) 

benefit 4,751 3,435 1,316 3,481 1,270

Income tax (expense) benefit (953) (691) (262) (714) (239)

Net income (loss) 3,798 2,744 1,054 2,767 1,031

Other comprehensive income (loss), net of taxes 

and reclassification adjustments (120) (22) (98) (389) 269

Comprehensive income (loss) $3,678 $2,722 $956 $2,378 $1,300

Conservatorship metrics (in billions)

Net worth $31.7 $28.0 $3.7 $18.8 $12.9

Senior preferred stock liquidation preference 100.7 98.0 2.7 89.1 11.6

Remaining Treasury funding commitment 140.2 140.2 — 140.2 —

Cumulative dividend payments to Treasury 119.7 119.7 — 119.7 —

Cumulative draws from Treasury 71.6 71.6 — 71.6 —

Freddie Mac First Quarter 2022 Financial Results 

April 28, 2022

Page 2 
Single-Family Segment

Financial Results 

Net Revenues

(In millions)

$3,849

$4,715

$3,961

$4,702

$5,214

1Q21 2Q21 3Q21 4Q21 1Q22

Net Income

(In millions)

$1,738

$2,855

$2,028 $2,199

$3,411

1Q21 2Q21 3Q21 4Q21 1Q22

Comprehensive Income

(In millions)

$1,410

$2,781

$2,046 $2,204

$3,399

1Q21 2Q21 3Q21 4Q21 1Q22

(Dollars in millions) 1Q 2022 4Q 2021 Change 1Q 2021 Change

Net interest income $3,806 $4,425 ($619) $3,308 $498

Non-interest income 1,408 277 1,131 541 867

Net revenues 5,214 4,702 512 3,849 1,365

Benefit (provision) for credit losses 831 (157) 988 146 685

Non-interest expense (1,778) (1,791) 13 (1,809) 31

Income (loss) before income tax (expense) benefit 4,267 2,754 1,513 2,186 2,081

Income tax (expense) benefit (856) (555) (301) (448) (408)

Net income (loss) 3,411 2,199 1,212 1,738 1,673

Other comprehensive income (loss), net of taxes and 

reclassification adjustments (12) 5 (17) (328) 316 

Comprehensive income (loss) $3,399 $2,204 $1,195 $1,410 $1,989

Key Drivers

Net income increased year-over-year, mainly driven by:

• Higher net interest income primarily due to continued mortgage portfolio growth and higher average portfolio 

guarantee fee rates.

• Higher non-interest income primarily due to higher net investment gains driven by mark-to-market gains on 

commitments to sell guaranteed mortgage-related securities used to economically hedge the securitization 

pipeline, as spreads on agency mortgage-related securities widened during the quarter.

• Higher benefit for credit losses driven by observed house price appreciation and higher forecasted house 

prices. 

Freddie Mac First Quarter 2022 Financial Results 

April 28, 2022

Page 3 
Single-Family Segment

Business Results

New Business Activity

(UPB in billions)

$362

$288 $299 $271

$207

$89 $98 $132 $111 $93

$273

$190 $167 $160

$114

Home purchase Refinance

1Q21 2Q21 3Q21 4Q21 1Q22

Mortgage Portfolio

(UPB in billions)

$2,458

$2,564

$2,682

$2,792

$2,884

1Q21 2Q21 3Q21 4Q21 1Q22

Serious Delinquency Rate

2.34%

1.86%

1.46%

1.12%

0.92%

1Q21 2Q21 3Q21 4Q21 1Q22

1Q 2022 4Q 2021 Change 1Q 2021 Change

New Business Statistics:

Single-Family homes funded (in thousands) 691 955 (264) 1,231 (540)

Purchase borrowers (in thousands) 279 357 (78) 291 (12)

Refinance borrowers (in thousands) 412 598 (186) 940 (528)

Affordable to low- to moderate-income families (%)(1) 52 54 (2) 49 3 

First-time homebuyers (%)(2) 48 46 2 46 2 

Average guarantee fee rate charged (bps) 49 47 2 50 (1)

Weighted average original loan-to-value (LTV) (%) 72 71 1 69 3 

Weighted average original credit score 746 748 (2) 759 (13)

UPB covered by new CRT issuance (in billions) $208 $242 ($34) $245 ($37)

Portfolio Statistics:

Average guarantee fee rate charged (bps) 47 46 1 45 2

Weighted average current LTV (%) 54 55 (1) 58 (4) 

Weighted average current credit score 756 756 — 754 2

Loan count (in millions) 13.4 13.1 0.3 12.3 1.1

Credit-Related Statistics:

Loan workout activity (in thousands) 49 62 (13) 94 (45)

Credit enhancement coverage (%) 55 53 2 50 5 

(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 company provided funding for approximately 691,000 single-family homes, more than 412,000 of which 

were refinance loans. First-time homebuyers represented 48% of new single-family home purchase loans.

• Single-Family loan workout activity decreased to 49,000, from 94,000 in the first quarter of 2021, as the overall 

forbearance population continues to decline.

• Credit enhancement coverage of the Single-Family mortgage portfolio increased to 55% from 50% in the first 

quarter of 2021, primarily due to the new business activity included in credit risk transfer (CRT) transactions.

Freddie Mac First Quarter 2022 Financial Results 

April 28, 2022

Page 4 
Multifamily Segment

Financial Results

Net Revenues

(In millions)

$1,424

$1,151

$1,286

$863

$632

1Q21 2Q21 3Q21 4Q21 1Q22

Net Income

(In millions)

$1,029

$824 $891

$545

$387

1Q21 2Q21 3Q21 4Q21 1Q22

Comprehensive Income

(In millions)

$968 $830 $863

$518

$279

1Q21 2Q21 3Q21 4Q21 1Q22

 

(Dollars in millions) 1Q 2022 4Q 2021 Change 1Q 2021 Change

Net interest income $298 $331 ($33) $331 ($33)

Guarantee income 40 147 (107) 159 (119)

Investment gains (losses), net 261 348 (87) 908 (647)

Other income (loss) 33 37 (4) 26 7

Net revenues 632 863 (231) 1,424 (792)

Benefit (provision) for credit losses 6 19 (13) 50 (44)

Non-interest expense (154) (201) 47 (179) 25

Income (loss) before income tax (expense) benefit 484 681 (197) 1,295 (811)

Income tax (expense) benefit (97) (136) 39 (266) 169

Net income (loss) 387 545 (158) 1,029 (642)

Other comprehensive income (loss), net of taxes and 

reclassification adjustments (108) (27) (81) (61) (47)

Comprehensive income (loss) $279 $518 ($239) $968 ($689)

Key Drivers

Net income decreased year-over-year, mainly driven by: 

• Lower guarantee income as continued growth in the Multifamily guarantee portfolio was offset by the impact of 

rising interest rates on the fair values of guarantee assets.

• Lower net investment gains due to spread widening and lower initial pricing margins on new loan purchases.

Freddie Mac First Quarter 2022 Financial Results 

April 28, 2022

Page 5 
Multifamily Segment

Business Results

New Business Activity

(UPB in billions)

$14 $13

$18

$25

$15

1Q21 2Q21 3Q21 4Q21 1Q22

Mortgage Portfolio 

(UPB in billions)

$394 $398 $404 $415 $415

1Q21 2Q21 3Q21 4Q21 1Q22

Delinquency Rate

0.17%

0.15%

0.12%

0.08% 0.08%

1Q21 2Q21 3Q21 4Q21 1Q22

1Q 2022 4Q 2021 Change 1Q 2021 Change

New Business Statistics:

Number of rental units financed (in thousands) 144 223 (79) 134 10

Affordable to low-income families (%)(1) 72 57 15 77 (5) 

Affordable to low- to moderate-income families (%)(2) 95 91 4 97 (2) 

Weighted average original LTV (%) 67 67 — 69 (2) 

Weighted average original debt service coverage ratio 1.33 1.33 — 1.38 (0.05)

UPB covered by new CRT issuance (in billions) $14 $23 ($9) $26 ($12)

Portfolio Statistics:

Average guarantee fee rate charged (bps) 43 42 1 41 2

Unit count (in thousands) 4,616 4,652 (36) 4,613 3

Credit-Related Statistics:

Credit enhancement coverage (%) 94 94 — 92 2 

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

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

Business Highlights

• The company provided financing for more than 144,000 multifamily rental units. 72% of the eligible multifamily 

rental units financed were affordable to low-income families.

• UPB covered by new CRT issuance significantly decreased to $14 billion from $26 billion in the first quarter of 

2021, primarily due to a smaller securitization pipeline and no Structured Credit Risk Trust note transactions in 

the first quarter of 2022. 

• While the mortgage portfolio increased slightly as of March 31, 2022 compared to December 31, 2021, total 

portfolio unit count decreased, primarily driven by the impact of portfolio payoffs and higher per unit cost of 

newly financed multifamily properties as a result of property price appreciation.

• Credit enhancement coverage of the Multifamily mortgage portfolio increased to 94% from 92% in the first 

quarter of 2021.

Freddie Mac First Quarter 2022 Financial Results 

April 28, 2022

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 March 31, 2022. 

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 March 2022. 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 $100.7 billion on 

March 31, 2022 based on the $2.7 billion increase in the Net Worth Amount during the fourth quarter of 2021, and 

will increase to $104.4 billion on June 30, 2022 based on the $3.7 billion increase in the Net Worth Amount during 

the first quarter of 2022.

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 March 31, 2022 and the 

company’s First Quarter 2022 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 April 28, 2022 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/rippuc8p. 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: Laurie Garthune (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, 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, the effects of natural disasters, other catastrophic events, including the effects of the COVID-19 

pandemic, 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 market conditions, liquidity, mortgage spreads, credit outlook, uncertainty about the duration, severity, 

and effects of the COVID-19 pandemic and actions taken in response thereto, actions by the U.S. government 

(including FHFA, Treasury, and Congress) and state and local governments, and the impacts of legislation or 

regulations and new or amended accounting guidance, 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, 2021, Quarterly Report on Form 10-Q for the quarter ended 

March 31, 2022, and Current Reports on Form 8-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 

Freddie Mac First Quarter 2022 Financial Results 

April 28, 2022

Page 7 
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 First Quarter 2022 Financial Results 

April 28, 2022

Page 8 
FREDDIE MAC

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) 

(In millions, except share-related amounts) 1Q 2022 4Q 2021 1Q 2021

Net interest income

Interest income $17,740 $16,604 $13,902

Interest expense (13,636) (11,848) (10,263) 

Net interest income 4,104 4,756 3,639 

Non-interest income (loss)

Guarantee income 70 182 248 

Investment gains (losses), net 1,513 519 1,208 

Other income (loss) 159 108 178 

Non-interest income (loss) 1,742 809 1,634 

Net revenues 5,846 5,565 5,273 

Benefit (provision) for credit losses 837 (138) 196 

Non-interest expense

Salaries and employee benefits (356) (356) (344) 

Credit enhancement expense (459) (428) (335) 

Benefit for (decrease in) credit enhancement recoveries (17) (32) (257) 

Legislative assessments expense (759) (761) (691) 

Other expense (341) (415) (361) 

Non-interest expense (1,932) (1,992) (1,988) 

Income (loss) before income tax (expense) benefit 4,751 3,435 3,481 

Income tax (expense) benefit (953) (691) (714) 

Net income (loss) 3,798 2,744 2,767 

Other comprehensive income (loss), net of taxes and reclassification adjustments (120) (22) (389) 

Comprehensive income (loss) $3,678 $2,722 $2,378

Net income (loss) $3,798 $2,744 $2,767

Future increase in senior preferred stock liquidation preference (3,678) (2,722) (2,378)

Net income (loss) attributable to common stockholders $120 $22 $389

Net income (loss) per common share $0.04 $0.01 $0.12

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

Freddie Mac First Quarter 2022 Financial Results 

April 28, 2022

Page 9 
FREDDIE MAC 

Condensed Consolidated Balance Sheets (Unaudited)

March 31, December 31,

(In millions, except share-related amounts) 2022 2021

Assets

Cash and cash equivalents (includes $957 and $1,695 of restricted cash and cash 

equivalents) $10,526 $10,150

Securities purchased under agreements to resell 69,617 71,203 

Investment securities, at fair value 53,244 53,015 

Mortgage loans held-for-sale (includes $8,101 and $10,498 at fair value) 17,014 19,778 

Mortgage loans held-for-investment (net of allowance for credit losses of $4,389 and $4,947) 2,915,915 2,828,331 

Accrued interest receivable, net 7,675 7,474 

Deferred tax assets, net 5,865 6,214 

Other assets (includes $7,190 and $6,594 at fair value) 28,998 29,421 

Total assets $3,108,854 $3,025,586

Liabilities and equity

Liabilities

Accrued interest payable $6,266 $6,268

Debt (includes $5,038 and $2,478 at fair value) 3,059,125 2,980,185 

Other liabilities (includes $722 and $287 at fair value) 11,752 11,100 

Total liabilities 3,077,143 2,997,553 

Commitments and contingencies

Equity

Senior preferred stock (liquidation preference of $100,681 and $97,959) 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 (accumulated deficit) (51,195) (54,993) 

AOCI, net of taxes, related to:

Available-for-sale securities 174 297 

Other (140) (143) 

Total AOCI, net of taxes 34 154 

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

Total equity 31,711 28,033 

Total liabilities and equity $3,108,854 $3,025,586

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.

March 31, December 31,

(In millions) 2022 2021

Assets:

Cash and cash equivalents (includes $773 and $1,595 of restricted cash and cash 

equivalents) $774 $1,596 

Securities purchased under agreements to resell 28,705 34,000 

Investment securities, at fair value 1,099 420

Mortgage loans held-for-investment, net 2,877,320 2,784,626

Accrued interest receivable, net 7,223 7,019 

Other assets 9,570 11,265 

Total assets of consolidated VIEs $2,924,691 $2,838,926

Liabilities:

Accrued interest payable $5,993 $5,823

Debt 2,899,226 2,803,054

Total liabilities of consolidated VIEs $2,905,219 $2,808,877

Freddie Mac First Quarter 2022 Financial Results 

April 28, 2022

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