Freddie Mac Reports Net Income of $2.0 Billion for First Quarter 2023

Making Home Possible for 250,000 Households in First Quarter 2023

• Financed 190,000 mortgages, with 54% of eligible loans being affordable to low- to moderate-income families, and 

enabled 72,000 first-time homebuyers to purchase a home

• Financed 60,000 rental units, with 89% of eligible units being affordable to low- to moderate-income families

First Quarter 2023 Financial Results

Market Liquidity 

Provided -

$65 Billion

Homes and Rental Units 

Financed -

250,000

Net Worth -

$39.1 Billion

Total Mortgage

 Portfolio -

$3.4 Trillion

Consolidated • Net income of $2.0 billion, a decrease of 47% year-over-year, 

primarily driven by lower net revenues and a credit reserve 

build in the current period compared to a credit reserve release 

in the prior year period

• Net revenues of $4.8 billion, a decrease of 17% year-over-year, 

as higher net interest income was offset by a decline in noninterest income

• Provision for credit losses of $0.4 billion in the first quarter of 

2023, compared to a benefit for credit losses of $0.8 billion in 

the first quarter of 2022

• New business activity of $59 billion, down 72% 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 4% year-over-year and 

flat quarter-over-quarter, as portfolio growth has moderated in 

recent periods due to the slowdown in new business activity

• Serious delinquency rate of 0.62%, down from 0.92% at March 

31, 2022, primarily driven by the decline of loans in forbearance

• Completed approximately 24,000 loan workouts

• 62% of mortgage portfolio covered by credit enhancements

• New business activity of $6 billion, down 60% year-over-year, 

as higher mortgage interest rates and greater market 

uncertainty have reduced demand for multifamily mortgage 

financing

• Mortgage portfolio of $426 billion, up 3% year-over-year and 

down 1% quarter-over-quarter, primarily due to the slowdown 

in new business activity

• Delinquency rate of 0.13%, up from 0.08% at March 31, 2022

• 93% of mortgage portfolio covered by credit enhancements

“Freddie Mac’s solid 

performance in the first 

quarter helped promote 

sustainable 

homeownership and 

rental opportunities 

across the nation. In an 

uncertain economic 

environment, we remain 

focused on our mission 

and will continue to serve 

as a stabilizing force for 

the housing finance 

system.”

Michael J. DeVito

Chief Executive Officer

Net Revenues 

$4.8 Billion

Net Income

$2.0 Billion

Comprehensive 

Income

$2.0 Billion

Single-Family

Net Revenues 

$4.2 Billion

Net Income 

$1.7 Billion

Comprehensive

Income

$1.7 Billion

Multifamily

Net Revenues 

$0.6 Billion

Net Income 

$0.3 Billion

Comprehensive

Income 

$0.4 Billion
McLean, VA — Freddie Mac (OTCQB: FMCC) today reported net income of $2.0 billion for the first quarter of 2023, 

a decrease of 47% year-over-year, primarily driven by lower net revenues and a credit reserve build in the current 

period compared to a credit reserve release in the prior year period. 

Net revenues were $4.8 billion, down 17% year-over-year, as higher net interest income was offset by a decline in 

non-interest income. Net interest income was $4.5 billion, up 10% year-over-year, primarily driven by mortgage 

portfolio growth, higher average portfolio guarantee fee rates, and higher investments net interest income due to 

higher interest rates. These increases were partially offset by a decline in deferred fee income due to slower 

prepayments as a result of higher mortgage interest rates. Non-interest income was $0.3 billion, down 81% yearover year, primarily driven by a decline in net investment gains in Single-Family from elevated levels in the prior 

year period.

Provision for credit losses was $0.4 billion for the first quarter of 2023, driven by a modest credit reserve build 

primarily attributable to new acquisitions in Single-Family. The benefit for credit losses of $0.8 billion for the first 

quarter of 2022 was primarily driven by a credit reserve release due to higher estimated house prices and an 

improvement in forecasted economic conditions. 

Non-interest expense remained unchanged at $1.9 billion.

Summary of Consolidated Statements of Income and Comprehensive Income

(Dollars in millions) 1Q 2023 4Q 2022 Change 1Q 2022 Change

Net interest income $4,501 $4,588 ($87) $4,104 $397

Non-interest income 326 245 81 1,742 (1,416)

Net revenues 4,827 4,833 (6) 5,846 (1,019)

(Provision) benefit for credit losses (395) (575) 180 837 (1,232)

Non-interest expense (1,932) (2,042) 110 (1,932) —

Income before income tax expense 2,500 2,216 284 4,751 (2,251)

Income tax expense (505) (453) (52) (953) 448

Net income 1,995 1,763 232 3,798 (1,803)

Other comprehensive income (loss), net of taxes 

and reclassification adjustments 54 25 29 (120) 174

Comprehensive income $2,049 $1,788 $261 $3,678 ($1,629)

Conservatorship metrics (in millions)

Net worth $39,067 $37,018 $2,049 $31,711 $7,356

Senior preferred stock liquidation preference 109,666 107,878 1,788 100,681 8,985

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 First Quarter 2023 Financial Results 

May 3, 2023

Page 2 
Single-Family Segment

Financial Results

Net Revenues

(In billions)

$5.2

$4.9

$4.4

$4.2 $4.2

1Q22 2Q22 3Q22 4Q22 1Q23

Net Income

(In billions)

$3.4

$2.2

$0.8

$1.5

$1.7

1Q22 2Q22 3Q22 4Q22 1Q23

Comprehensive Income

(In billions)

$3.4

$2.2

$0.8

$1.5

$1.7

1Q22 2Q22 3Q22 4Q22 1Q23

(Dollars in millions) 1Q 2023 4Q 2022 Change 1Q 2022 Change

Net interest income $4,296 $4,363 ($67) $3,806 $490

Non-interest income (93) (118) 25 1,408 (1,501)

Net revenues 4,203 4,245 (42) 5,214 (1,011)

(Provision) benefit for credit losses (318) (521) 203 831 (1,149)

Non-interest expense (1,783) (1,863) 80 (1,778) (5)

Income before income tax expense 2,102 1,861 241 4,267 (2,165)

Income tax expense (425) (381) (44) (856) 431

Net income 1,677 1,480 197 3,411 (1,734)

Other comprehensive income (loss), net of taxes and 

reclassification adjustments (1) 22 (23) (12) 11 

Comprehensive income $1,676 $1,502 $174 $3,399 ($1,723)

First Quarter 2023

Net income of $1.7 billion, down 51% year-over-year.

• Net revenues were $4.2 billion, down 19% year-over year. 

◦ Net interest income was $4.3 billion, up 13% year-over-year, primarily driven by mortgage portfolio 

growth, higher average portfolio guarantee fee rates, and higher investments net interest income due 

to higher interest rates. These increases were partially offset by a decline in deferred fee income due 

to slower prepayments driven by higher mortgage interest rates. 

◦ Non-interest income was a loss of $0.1 billion for the first quarter of 2023, compared to non-interest 

income of $1.4 billion for the first quarter of 2022, which was primarily driven by spread-related gains 

on commitments to hedge the securitization pipeline during that period. 

• Provision for credit losses was $0.3 billion for the first quarter of 2023, driven by a modest credit reserve build 

primarily attributable to new acquisitions. The benefit for credit losses of $0.8 billion for the first quarter of 

2022 was driven by a credit reserve release due to higher estimated house prices and an improvement in 

forecasted economic conditions.

Freddie Mac First Quarter 2023 Financial Results 

May 3, 2023

Page 3 
Single-Family Segment

Business Results

New Business Activity

(UPB in billions)

$207

$138

$121

$75

$59

$93 $86

$98

$63 $51

$114

$52 $23

$12

$8

Home purchase Refinance 1Q22 2Q22 3Q22 4Q22 1Q23

Mortgage Portfolio

(UPB in billions)

$2,884

$2,928

$2,971 $2,986 $2,989

1Q22 2Q22 3Q22 4Q22 1Q23

Serious Delinquency Rate

0.92%

0.76% 0.67% 0.66% 0.62%

1Q22 2Q22 3Q22 4Q22 1Q23

1Q 2023 4Q 2022 Change 1Q 2022 Change

New Business Statistics:

Single-Family homes funded (in thousands) 190 252 (62) 691 (501)

Purchase borrowers (in thousands) 157 200 (43) 279 (122)

Refinance borrowers (in thousands) 33 52 (19) 412 (379)

Affordable to low- to moderate-income families (%)(1) 54 57 (3) 52 2 

First-time homebuyers (%)(2) 51 49 2 48 3 

Average estimated guarantee fee rate (bps) 55 51 4 49 6

Weighted average original loan-to-value (LTV) (%) 79 78 1 72 7 

Weighted average original credit score 749 747 2 746 3

UPB covered by new CRT issuance (in billions) $15 $58 ($43) $208 ($193)

Portfolio Statistics:

Average estimated guarantee fee rate (bps) 48 48 — 47 1

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

Weighted average current credit score 755 756 (1) 756 (1)

Loan count (in millions) 13.6 13.6 — 13.4 0.2

Credit-Related Statistics:

Loan workout activity (in thousands) 24 22 2 49 (25)

Credit enhancement coverage (%) 62 61 1 55 7 

(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

• 83% of new acquisitions in the first quarter of 2023 were purchase loans, compared to 40% in the first quarter 

of 2022, as refinance activity slowed due to higher mortgage interest rates. First-time homebuyers represented 

51% of new single-family home purchase loans.

• Single-Family loan workout activity decreased to 24,000 from 49,000 in the first quarter of 2022, as the overall 

forbearance population continued to decline.

• Credit enhancement coverage of the Single-Family mortgage portfolio increased to 62% at March 31, 2023, 

up from 55% at March 31, 2022.

Freddie Mac First Quarter 2023 Financial Results 

May 3, 2023

Page 4 
Multifamily Segment

Financial Results

Net Revenues

(In billions)

$0.6

$0.5

$0.8

$0.6 $0.6

1Q22 2Q22 3Q22 4Q22 1Q23

Net Income

(In billions)

$0.4

$0.3

$0.5

$0.3 $0.3

1Q22 2Q22 3Q22 4Q22 1Q23

Comprehensive Income

(In billions)

$0.3

$0.2

$0.3 $0.3

$0.4

1Q22 2Q22 3Q22 4Q22 1Q23

 

(Dollars in millions) 1Q 2023 4Q 2022 Change 1Q 2022 Change

Net interest income $205 $225 ($20) $298 ($93)

Non-interest income 419 363 56 334 85

Net revenues 624 588 36 632 (8)

(Provision) benefit for credit losses (77) (54) (23) 6 (83)

Non-interest expense (149) (179) 30 (154) 5

Income before income tax expense 398 355 43 484 (86)

Income tax expense (80) (72) (8) (97) 17

Net income 318 283 35 387 (69)

Other comprehensive income (loss), net of taxes and 

reclassification adjustments 55 3 52 (108) 163

Comprehensive income $373 $286 $87 $279 $94

First Quarter 2023

Net income of $0.3 billion, down 18% year-over-year.

• Net revenues were $0.6 billion, down 1% year-over-year. 

◦ Net interest income was $0.2 billion, down 31% year-over-year, primarily due to lower prepayment 

income driven by higher mortgage interest rates. 

◦ Non-interest income was $0.4 billion, up 25% year-over-year, primarily driven by higher guarantee 

income, partially offset by lower net investment gains. Guarantee income increased as the first quarter 

of 2022 included fair value losses on guarantee assets due to rising interest rates. Net investment 

gains declined due to lower revenue from held-for-sale loan purchase and securitization activity as a 

result of lower volumes and lower margins, coupled with net losses from interest-rate risk 

management activities.

• Provision for credit losses was $0.1 billion for the first quarter of 2023, compared to a small benefit for credit 

losses for the first quarter of 2022, primarily due to a credit reserve build to reflect increased uncertainty in 

forecasted economic conditions.

Freddie Mac First Quarter 2023 Financial Results 

May 3, 2023

Page 5 
Multifamily Segment

Business Results

New Business Activity

(UPB in billions)

$15 $15 $14

$29

$6

1Q22 2Q22 3Q22 4Q22 1Q23

Mortgage Portfolio 

(UPB in billions)

$415 $415 $416

$429 $426

1Q22 2Q22 3Q22 4Q22 1Q23

Delinquency Rate

0.08% 0.07%

0.13% 0.12% 0.13%

1Q22 2Q22 3Q22 4Q22 1Q23

1Q 2023 4Q 2022 Change 1Q 2022 Change

New Business Statistics:

Number of rental units financed (in thousands)(1) 60 252 (192) 143 (83)

Affordable to low-income families (%)(2) 64 67 (3) 81 (17) 

Affordable to low- to moderate-income families (%)(3) 89 95 (6) 97 (8) 

Weighted average original LTV (%) 57 58 (1) 67 (10) 

Weighted average original debt service coverage ratio 1.27 1.25 0.02 1.33 (0.06)

UPB covered by new CRT issuance (in billions) $8 $16 ($8) $14 ($6)

Portfolio Statistics:

Average guarantee fee rate charged (bps) 44 43 1 43 1

Credit-Related Statistics:

Credit enhancement coverage (%) 93 93 — 94 (1) 

(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 60,000 multifamily rental units. 64% of the eligible multifamily rental units 

financed were affordable to low-income families.

• The Multifamily delinquency rate increased slightly quarter-over-quarter and also increased year-over-year. 

The year-over-year change was primarily driven by an increase in delinquent loans in our senior housing and 

small balance loan portfolios. 95% of the delinquent loans in the Multifamily mortgage portfolio have credit 

enhancement coverage.

• The UPB of mortgage loans covered by new CRT transactions decreased year-over-year, primarily due to 

fewer securitizations with subordination as a result of a smaller average held-for-sale securitization pipeline.

Freddie Mac First Quarter 2023 Financial Results 

May 3, 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 March 31, 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 March 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 $109.7 billion on 

March 31, 2023 based on the increase in the Net Worth Amount during the fourth quarter of 2022, and will 

increase to $111.7 billion on June 30, 2023 based on the increase in the Net Worth Amount during the first 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 March 31, 2023 and the 

company’s First 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 May 3, 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/9zio98kj. 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 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, 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 quarter ended March 31, 2023, 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 

Freddie Mac First Quarter 2023 Financial Results 

May 3, 2023

Page 7 
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 First Quarter 2023 Financial Results 

May 3, 2023

Page 8 
FREDDIE MAC

Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited)

(In millions, except share-related amounts) 1Q 2023 4Q 2022 1Q 2022

Net interest income

Interest income $24,987 $23,816 $17,740

Interest expense (20,486) (19,228) (13,636) 

Net interest income 4,501 4,588 4,104 

Non-interest income

Guarantee income 466 383 70 

Investment gains, net (225) (280) 1,513 

Other income 85 142 159 

Non-interest income 326 245 1,742 

Net revenues 4,827 4,833 5,846 

(Provision) benefit for credit losses (395) (575) 837 

Non-interest expense

Salaries and employee benefits (374) (390) (356) 

Credit enhancement expense (530) (559) (459) 

Benefit for (decrease in) credit enhancement recoveries 49 44 (17) 

Legislative assessments expense (735) (749) (759) 

Other expense (342) (388) (341) 

Non-interest expense (1,932) (2,042) (1,932) 

Income before income tax expense 2,500 2,216 4,751 

Income tax expense (505) (453) (953) 

Net income 1,995 1,763 3,798 

Other comprehensive income (loss), net of taxes and reclassification adjustments 54 25 (120) 

Comprehensive income $2,049 $1,788 $3,678

Net income $1,995 $1,763 $3,798

Amounts attributable to senior preferred stock (2,049) (1,788) (3,678)

Net income attributable to common stockholders ($54) ($25) $120

Net income per common share ($0.02) ($0.01) $0.04

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

Freddie Mac First Quarter 2023 Financial Results 

May 3, 2023

Page 9 
FREDDIE MAC 

Condensed Consolidated Balance Sheets (Unaudited)

March 31, December 31,

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

Assets

Cash and cash equivalents (includes $834 and $707 of restricted cash and cash equivalents) $5,873 $6,360

Securities purchased under agreements to resell 108,036 87,295 

Investment securities, at fair value 37,712 38,701 

Mortgage loans held-for-sale (includes $2,926 and $3,218 at fair value) 12,782 12,197 

Mortgage loans held-for-investment (net of allowance for credit losses of $7,835 and $7,391 

and includes $1,238 and $1,214 at fair value) 3,024,249 3,022,318 

Accrued interest receivable, net 8,662 8,529 

Deferred tax assets, net 5,329 5,777 

Other assets (includes $5,982 and $5,890 at fair value) 22,337 27,156 

Total assets $3,224,980 $3,208,333

Liabilities and equity

Liabilities

Accrued interest payable $7,507 $7,309

Debt (includes $2,811 and $3,047 at fair value) 3,167,514 3,145,832 

Other liabilities (includes $894 and $759 at fair value) 10,892 18,174 

Total liabilities 3,185,913 3,171,315 

Commitments and contingencies

Equity

Senior preferred stock (liquidation preference of $109,666 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 (43,671) (45,666) 

AOCI, net of taxes, related to:

Available-for-sale securities (32) (84) 

Other (102) (104) 

Total AOCI, net of taxes (134) (188) 

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

Total equity 39,067 37,018 

Total liabilities and equity $3,224,980 $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.

March 31, December 31,

(In millions) 2023 2022

Assets:

Cash and cash equivalents (includes $740 and $610 of restricted cash and cash equivalents) $741 $611 

Securities purchased under agreements to resell 10,881 9,703 

Investment securities, at fair value 113 126

Mortgage loans held-for-investment, net 2,977,998 2,971,601

Accrued interest receivable, net 8,083 7,944 

Other assets 5,925 5,019 

Total assets of consolidated VIEs $3,003,741 $2,995,004

Liabilities:

Accrued interest payable $6,779 $6,619

Debt 2,987,050 2,979,070

Total liabilities of consolidated VIEs $2,993,829 $2,985,689

Freddie Mac First Quarter 2023 Financial Results 

May 3, 2023

Page 10