Freddie Mac Reports Net Income of $1.3 Billion for Third Quarter 2022

Making Home Possible for 542,000 Households in Third Quarter 2022

• Financed 392,000 mortgages, with 56% of eligible loans being affordable to low- to moderate-income families, and 

enabled 130,000 first-time homebuyers to purchase a home

• Financed 150,000 rental units, with 96% of eligible units being affordable to low- to moderate-income families

Third Quarter 2022 Financial Results

Market Liquidity 

Provided -

$135 Billion

Homes and Rental Units 

Financed -

542,000

Net Worth -

$35.2 Billion

Total Mortgage

 Portfolio -

$3.4 Trillion

Consolidated • Net income of $1.3 billion, a decrease of 55% year-over-year, 

primarily driven by a credit reserve build in Single-Family

• Net revenues of $5.2 billion, a decrease of 1% year-over-year, 

as higher net interest income in Single-Family was offset by a 

decline in non-interest income in Multifamily

• Provision for credit losses of $1.8 billion, primarily driven by 

deterioration in housing market conditions, including lower 

observed and forecasted house price appreciation

• New business activity of $121 billion, down 60% year-overyear, as refinance activity slowed significantly due to rising 

mortgage interest rates

• Mortgage portfolio of $3.0 trillion, up 11% year-over-year, 

driven by an increase in average portfolio loan size and a higher 

share of single-family mortgage debt outstanding

• Serious delinquency rate of 0.67%, down from 1.46% at 

September 30, 2021, driven by the decline of loans in 

forbearance

• Completed approximately 28,000 loan workouts

• 61% of mortgage portfolio covered by credit enhancements

• New business activity of $14 billion, down 22% year-over-year, 

due to rising interest rates and increased competition

• Mortgage portfolio of $416 billion, up 3% year-over-year, as 

new business activities were partially offset by borrower 

prepayments

• Delinquency rate of 0.13%, up from 0.12% at September 30, 

2021

• 95% of mortgage portfolio covered by credit enhancements

“In a dynamic economic 

environment, Freddie 

Mac continued to provide 

much-needed liquidity, 

stability, and affordability 

to the housing finance 

system. We earned 

quarterly net income of 

$1.3 billion and added to 

the capital that supports 

our mission. With our 

focus on risk 

management, we are 

actively managing the 

company to support 

homebuyers, renters, and 

the housing market 

throughout the economic 

cycle.”

Michael J. DeVito

Chief Executive Officer

Net Revenues 

$5.2 Billion

Net Income

$1.3 Billion

Comprehensive 

Income

$1.1 Billion

Single-Family

Net Revenues 

$4.4 Billion

Net Income 

$0.8 Billion

Comprehensive

Income

$0.8 Billion

Multifamily

Net Revenues 

$0.8 Billion

Net Income 

$0.5 Billion

Comprehensive

Income 

$0.3 Billion
McLean, VA — Freddie Mac (OTCQB: FMCC) today reported net income of $1.3 billion for the third quarter of 

2022, a decrease of 55% year-over-year, primarily driven by a credit reserve build in Single-Family. 

Net revenues were $5.2 billion, down 1% year-over-year, as higher net interest income in Single-Family was offset 

by a decline in non-interest income in Multifamily. Net interest income was $4.6 billion, up 3% year-over-year, as 

continued mortgage portfolio growth and higher average portfolio guarantee fee rates were partially offset by lower 

deferred fee income, which was driven by slower prepayments as a result of higher mortgage interest rates. Noninterest income decreased 24% year-over year to $0.6 billion, primarily driven by lower guarantee income and a 

decrease in net investment gains in Multifamily.

Provision for credit losses was $1.8 billion for the third quarter of 2022, primarily driven by deterioration in housing 

market conditions, including lower observed and forecasted house price appreciation. The benefit for credit losses 

of $0.2 billion in the third quarter of 2021 was primarily driven by observed house price appreciation and reduced 

expected credit losses related to COVID-19. 

Non-interest expense was $1.8 billion, down 1% year-over-year, primarily driven by a benefit for credit 

enhancement recoveries due to the corresponding increase in the provision for credit losses. This decrease was 

partially offset by higher credit enhancement expense as a result of a higher volume of outstanding credit risk 

transfer transactions and higher spreads on recent transactions.

Summary of Consolidated Results of Operations

(Dollars in millions) 3Q 2022 2Q 2022 Change 3Q 2021 Change

Net interest income $4,554 $4,759 ($205) $4,418 $136

Non-interest income 627 645 (18) 829 (202)

Net revenues 5,181 5,404 (223) 5,247 (66)

Benefit (provision) for credit losses (1,796) (307) (1,489) 243 (2,039)

Non-interest expense (1,825) (2,020) 195 (1,844) 19

Income (loss) before income tax (expense) 

benefit 1,560 3,077 (1,517) 3,646 (2,086)

Income tax (expense) benefit (247) (624) 377 (727) 480

Net income (loss) 1,313 2,453 (1,140) 2,919 (1,606)

Other comprehensive income (loss), net of taxes 

and reclassification adjustments (181) (66) (115) (10) (171)

Comprehensive income (loss) $1,132 $2,387 ($1,255) $2,909 ($1,777)

Conservatorship metrics (in millions)

Net worth $35,230 $34,098 $1,132 $25,311 $9,919

Senior preferred stock liquidation preference 106,746 104,359 2,387 95,050 11,696

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 2022 Financial Results 

November 8, 2022

Page 2 
Single-Family Segment

Financial Results 

Net Revenues

(In billions)

$3.9

$4.7

$5.2

$4.9

$4.4

3Q21 4Q21 1Q22 2Q22 3Q22

Net Income

(In billions)

$2.0

$2.2

$3.4

$2.2

$0.8

3Q21 4Q21 1Q22 2Q22 3Q22

Comprehensive Income

(In billions)

$2.0

$2.2

$3.4

$2.2

$0.8

3Q21 4Q21 1Q22 2Q22 3Q22

(Dollars in millions) 3Q 2022 2Q 2022 Change 3Q 2021 Change

Net interest income $4,363 $4,535 ($172) $4,080 $283

Non-interest income 58 336 (278) (119) 177

Net revenues 4,421 4,871 (450) 3,961 460

Benefit (provision) for credit losses (1,784) (298) (1,486) 244 (2,028)

Non-interest expense (1,653) (1,854) 201 (1,672) 19

Income (loss) before income tax (expense) benefit 984 2,719 (1,735) 2,533 (1,549)

Income tax (expense) benefit (141) (551) 410 (505) 364

Net income (loss) 843 2,168 (1,325) 2,028 (1,185)

Other comprehensive income (loss), net of taxes and 

reclassification adjustments (39) 5 (44) 18 (57) 

Comprehensive income (loss) $804 $2,173 ($1,369) $2,046 ($1,242)

Key Drivers

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

• A provision for credit losses for the third quarter of 2022, primarily driven by deterioration in housing market 

conditions, including lower observed and forecasted house price appreciation. The benefit for credit losses in 

the third quarter of 2021 was primarily driven by observed house price appreciation and reduced expected 

credit losses related to COVID-19.

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

guarantee fee rates. This increase was partially offset by lower deferred fee income, which was driven by 

slower prepayments as a result of higher mortgage interest rates.

Freddie Mac Third Quarter 2022 Financial Results 

November 8, 2022

Page 3 
Single-Family Segment

Business Results

New Business Activity

(UPB in billions)

$299

$271

$207

$138

$121

$132 $111 $93 $86 $98

$167

$160

$114

$52 $23

Home purchase Refinance 3Q21 4Q21 1Q22 2Q22 3Q22

Mortgage Portfolio

(UPB in billions)

$2,682

$2,792

$2,884

$2,928

$2,971

3Q21 4Q21 1Q22 2Q22 3Q22

Serious Delinquency Rate

1.46%

1.12%

0.92%

0.76% 0.67%

3Q21 4Q21 1Q22 2Q22 3Q22

3Q 2022 2Q 2022 Change 3Q 2021 Change

New Business Statistics:

Single-Family homes funded (in thousands) 392 468 (76) 1,027 (635)

Purchase borrowers (in thousands) 297 263 34 415 (118)

Refinance borrowers (in thousands) 95 205 (110) 612 (517)

Affordable to low- to moderate-income families (%)(1) 56 61 (5) 52 4 

First-time homebuyers (%)(2) 49 49 — 46 3 

Average guarantee fee rate charged (bps) 54 52 2 48 6

Weighted average original loan-to-value (LTV) (%) 78 75 3 72 6 

Weighted average original credit score 747 744 3 750 (3)

UPB covered by new CRT issuance (in billions) $136 $151 ($15) $167 ($31)

Portfolio Statistics:

Average guarantee fee rate charged (bps) 48 47 1 46 2

Weighted average current LTV (%) 53 52 1 55 (2) 

Weighted average current credit score 756 756 — 756 —

Loan count (in millions) 13.6 13.5 0.1 12.8 0.8

Credit-Related Statistics:

Loan workout activity (in thousands) 28 37 (9) 73 (45)

Credit enhancement coverage (%) 61 59 2 50 11 

(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 392,000 single-family homes, 297,000 of which were purchase loans, as 

refinance activity slowed significantly due to higher mortgage interest rates. First-time homebuyers 

represented 49% of new single-family home purchase loans.

• Single-Family loan workout activity decreased to 28,000 from 73,000 in the third quarter of 2021, as the overall 

forbearance population continued to decline.

• Credit enhancement coverage of the Single-Family mortgage portfolio increased to 61% from 50% in the third 

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

Freddie Mac Third Quarter 2022 Financial Results 

November 8, 2022

Page 4 
Multifamily Segment

Financial Results

Net Revenues

(In billions)

$1.3

$0.9

$0.6

$0.5

$0.8

3Q21 4Q21 1Q22 2Q22 3Q22

Net Income

(In billions)

$0.9

$0.5

$0.4

$0.3

$0.5

3Q21 4Q21 1Q22 2Q22 3Q22

Comprehensive Income

(In billions)

$0.9

$0.5

$0.3

$0.2

$0.3

3Q21 4Q21 1Q22 2Q22 3Q22

 

(Dollars in millions) 3Q 2022 2Q 2022 Change 3Q 2021 Change

Net interest income $191 $224 ($33) $338 ($147)

Non-interest income 569 309 260 948 (379)

Net revenues 760 533 227 1,286 (526)

Benefit (provision) for credit losses (12) (9) (3) (1) (11)

Non-interest expense (172) (166) (6) (172) —

Income (loss) before income tax (expense) benefit 576 358 218 1,113 (537)

Income tax (expense) benefit (106) (73) (33) (222) 116

Net income (loss) 470 285 185 891 (421)

Other comprehensive income (loss), net of taxes and 

reclassification adjustments (142) (71) (71) (28) (114)

Comprehensive income (loss) $328 $214 $114 $863 ($535)

Key Drivers

Net income decreased year-over-year, mainly driven by lower non-interest income from: 

• Lower guarantee income due to fair value losses on guarantee assets as a result of higher interest rates.

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

securitizations, partially offset by gains from interest-rate risk management activities.

Freddie Mac Third Quarter 2022 Financial Results 

November 8, 2022

Page 5 
Multifamily Segment

Business Results

New Business Activity

(UPB in billions)

$18

$25

$15 $15 $14

3Q21 4Q21 1Q22 2Q22 3Q22

Mortgage Portfolio 

(UPB in billions)

$404

$415 $415 $415 $416

3Q21 4Q21 1Q22 2Q22 3Q22

Delinquency Rate

0.12%

0.08% 0.08% 0.07%

0.13%

3Q21 4Q21 1Q22 2Q22 3Q22

3Q 2022 2Q 2022 Change 3Q 2021 Change

New Business Statistics:

Number of rental units financed (in thousands)(1) 150 148 2 161 (11)

Affordable to low-income families (%)(2) 75 80 (5) 68 7 

Affordable to low- to moderate-income families (%)(3) 96 97 (1) 94 2 

Weighted average original LTV (%) 59 63 (4) 67 (8) 

Weighted average original debt service coverage ratio 1.31 1.33 (0.02) 1.35 (0.04)

UPB covered by new CRT issuance (in billions) $11 $21 ($10) $18 ($7)

Portfolio Statistics:

Average guarantee fee rate charged (bps) 43 43 — 42 1

Unit count (in thousands) 4,523 4,562 (39) 4,624 (101)

Credit-Related Statistics:

Credit enhancement coverage (%) 95 96 (1) 94 1 

(1) 2Q 2022 data revised to reflect updated information.

(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 150,000 multifamily rental units. 75% of the eligible multifamily rental units 

financed were affordable to low-income families.

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

The quarter-over-quarter increase was primarily due to delinquencies related to two loan pools having a 

common sponsor. The loans in these two pools are included in K Certificates with subordination.

• The UPB of mortgage loans covered by CRT transactions decreased primarily due to no issuances of 

Structured Credit Risk Trust note transactions during the third quarter of 2022.

• While the mortgage portfolio increased year-over-year, total portfolio unit count decreased, primarily driven by 

the impact of portfolio payoffs and higher average per unit costs of newly financed multifamily properties as a 

result of property price appreciation.

Freddie Mac Third Quarter 2022 Financial Results 

November 8, 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 September 30, 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 September 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 $106.7 billion on 

September 30, 2022 based on the increase in the Net Worth Amount during the second quarter of 2022, and will 

increase to $107.9 billion on December 31, 2022 based on the increase in the Net Worth Amount during the third 

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 September 30, 2022 and the 

company’s Third 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 November 8, 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/navm6y6a. 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, 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, 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, uncertainty about the duration, severity, and effects of the COVID-19 pandemic and actions taken in 

response thereto, 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, 2021, 

Freddie Mac Third Quarter 2022 Financial Results 

November 8, 2022

Page 7 
Quarterly Reports on Form 10-Q for the quarters ended March 31, 2022, June 30, 2022, and September 30, 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 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 2022 Financial Results 

November 8, 2022

Page 8 
FREDDIE MAC

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

(In millions, except share-related amounts) 3Q 2022 2Q 2022 3Q 2021

Net interest income

Interest income $21,894 $20,008 $15,791

Interest expense (17,340) (15,249) (11,373) 

Net interest income 4,554 4,759 4,418 

Non-interest income (loss)

Guarantee income 125 205 246 

Investment gains (losses), net 415 321 383 

Other income (loss) 87 119 200 

Non-interest income (loss) 627 645 829 

Net revenues 5,181 5,404 5,247 

Benefit (provision) for credit losses (1,796) (307) 243 

Non-interest expense

Salaries and employee benefits (387) (376) (352) 

Credit enhancement expense (542) (558) (386) 

Benefit for (decrease in) credit enhancement recoveries 210 (1) (60) 

Legislative assessments expense (753) (748) (734) 

Other expense (353) (337) (312) 

Non-interest expense (1,825) (2,020) (1,844) 

Income (loss) before income tax (expense) benefit 1,560 3,077 3,646 

Income tax (expense) benefit (247) (624) (727) 

Net income (loss) 1,313 2,453 2,919 

Other comprehensive income (loss), net of taxes and reclassification adjustments (181) (66) (10) 

Comprehensive income (loss) $1,132 $2,387 $2,909

Net income (loss) $1,313 $2,453 $2,919

Future increase in senior preferred stock liquidation preference (1,132) (2,387) (2,909)

Net income (loss) attributable to common stockholders $181 $66 $10

Net income (loss) per common share $0.06 $0.02 $0.00

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

Freddie Mac Third Quarter 2022 Financial Results 

November 8, 2022

Page 9 
FREDDIE MAC 

Condensed Consolidated Balance Sheets (Unaudited)

September 30, December 31,

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

Assets

Cash and cash equivalents (includes $773 and $1,695 of restricted cash and cash 

equivalents) $5,691 $10,150

Securities purchased under agreements to resell 97,643 71,203 

Investment securities, at fair value 43,270 53,015 

Mortgage loans held-for-sale (includes $3,542 and $10,498 at fair value) 9,365 19,778 

Mortgage loans held-for-investment (net of allowance for credit losses of $6,851 and $4,947) 2,998,008 2,828,331 

Accrued interest receivable, net 8,201 7,474 

Deferred tax assets, net 5,561 6,214 

Other assets (includes $6,008 and $6,594 at fair value) 22,917 29,421 

Total assets $3,190,656 $3,025,586

Liabilities and equity

Liabilities

Accrued interest payable $6,915 $6,268

Debt (includes $4,252 and $2,478 at fair value) 3,137,222 2,980,185 

Other liabilities (includes $961 and $287 at fair value) 11,289 11,100 

Total liabilities 3,155,426 2,997,553 

Commitments and contingencies

Equity

Senior preferred stock (liquidation preference of $106,746 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) (47,429) (54,993) 

AOCI, net of taxes, related to:

Available-for-sale securities (77) 297 

Other (136) (143) 

Total AOCI, net of taxes (213) 154 

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

Total equity 35,230 28,033 

Total liabilities and equity $3,190,656 $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.

September 30, December 31,

(In millions) 2022 2021

Assets:

Cash and cash equivalents (includes $677 and $1,595 of restricted cash and cash 

equivalents) $678 $1,596 

Securities purchased under agreements to resell 15,500 34,000 

Investment securities, at fair value 309 420

Mortgage loans held-for-investment, net 2,956,534 2,784,626

Accrued interest receivable, net 7,721 7,019 

Other assets 6,439 11,265 

Total assets of consolidated VIEs $2,987,181 $2,838,926

Liabilities:

Accrued interest payable $6,449 $5,823

Debt 2,973,973 2,803,054

Total liabilities of consolidated VIEs $2,980,422 $2,808,877

Freddie Mac Third Quarter 2022 Financial Results 

November 8, 2022

Page 10