Freddie Mac Reports Net Income of $2.5 Billion for Second Quarter 2022

Making Home Possible for 617,000 Households in Second Quarter 2022

• Financed 468,000 mortgages, with 61% of eligible loans being affordable to low- to moderate-income families, and 

enabled 113,000 first-time homebuyers to purchase a home

• Financed 149,000 rental units, with 97% of eligible units being affordable to low- to moderate-income families

Second Quarter 2022 Financial Results

Market Liquidity 

Provided -

$153 Billion

Homes and Rental Units 

Financed -

617,000

Net Worth -

$34.1 Billion

Total Mortgage

 Portfolio -

$3.3 Trillion

Consolidated • Net income of $2.5 billion, a decrease of 33% year-over-year, 

primarily driven by a provision for credit losses in the current 

period, compared to a benefit for credit losses in the prior 

period

• Net revenues of $5.4 billion, a decrease of 8% year-over-year, 

primarily driven by a decline in non-interest income in 

Multifamily

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

portfolio growth and deterioration in forecasted economic 

conditions

• New business activity of $138 billion, down 52% year-overyear, as refinance activity slowed significantly due to rising 

mortgage interest rates

• Mortgage portfolio of $2.9 trillion, up 14% year-over-year, 

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

share of the overall market

• Serious delinquency rate of 0.76%, down from 0.92% at March 

31, 2022 and 1.86% at June 30, 2021, driven by the decline of 

loans in forbearance

• Completed approximately 37,000 loan workouts

• 59% of mortgage portfolio covered by credit enhancements

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

• Mortgage portfolio of $415 billion, up 4% year-over-year, driven 

by ongoing loan purchase and securitization activity

• Delinquency rate of 0.07%, down from 0.08% at March 31, 

2022 and 0.15% at June 30, 2021 

• 96% of mortgage portfolio covered by credit enhancements

“In the second quarter, 

Freddie Mac achieved 

solid financial results and 

continued to build equity 

to withstand potential 

economic stress. We 

helped 617,000 families 

buy, refinance, or rent a 

home and introduced 

innovations which allow 

lenders to simplify the 

loan underwriting process 

and improve risk 

management. As rising 

mortgage rates, house 

price appreciation, and 

other economic factors 

challenge affordability, 

we are committed to 

working across the 

industry to promote 

equity and sustainable 

housing nationwide.”

Michael J. DeVito

Chief Executive Officer

Net Revenues 

$5.4 Billion

Net Income

$2.5 Billion

Comprehensive 

Income

$2.4 Billion

Single-Family

Net Revenues 

$4.9 Billion

Net Income 

$2.2 Billion

Comprehensive

Income

$2.2 Billion

Multifamily

Net Revenues 

$0.5 Billion

Net Income 

$0.3 Billion

Comprehensive

Income 

$0.2 Billion
McLean, VA — Freddie Mac (OTCQB: FMCC) today reported net income of $2.5 billion for the second quarter of 

2022, a decrease of 33% year-over-year, primarily driven by a provision for credit losses in the current period, 

compared to a benefit for credit losses in the prior period. 

Net revenues decreased 8% year-over-year to $5.4 billion, primarily driven by a decline in non-interest income in 

Multifamily. Net interest income was $4.8 billion, down less than 1%, as continued mortgage portfolio growth and 

higher average portfolio guarantee fee rates were offset by lower deferred fee income, which was driven by slower 

prepayments as a result of higher mortgage interest rates. Non-interest income decreased 41% 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 $0.3 billion for the second quarter of 2022, primarily driven by portfolio growth and 

deterioration in forecasted economic conditions. The benefit for credit losses of $0.7 billion in the second quarter 

of 2021 was driven by a reserve release due to observed house price appreciation and improving economic 

conditions. 

Non-interest expense increased 3% year-over-year to $2.0 billion, primarily driven by higher credit enhancement 

expense due to an increase in the volume of outstanding credit risk transfer transactions and higher spreads.

Summary of Consolidated Results of Operations

(Dollars in millions) 2Q 2022 1Q 2022 Change 2Q 2021 Change

Net interest income $4,759 $4,104 $655 $4,767 ($8)

Non-interest income 645 1,742 (1,097) 1,099 (454)

Net revenues 5,404 5,846 (442) 5,866 (462)

Benefit (provision) for credit losses (307) 837 (1,144) 740 (1,047)

Non-interest expense (2,020) (1,932) (88) (1,969) (51)

Income (loss) before income tax (expense) 

benefit 3,077 4,751 (1,674) 4,637 (1,560)

Income tax (expense) benefit (624) (953) 329 (958) 334

Net income (loss) 2,453 3,798 (1,345) 3,679 (1,226)

Other comprehensive income (loss), net of taxes 

and reclassification adjustments (66) (120) 54 (68) 2

Comprehensive income (loss) $2,387 $3,678 ($1,291) $3,611 ($1,224)

Conservatorship metrics (in millions)

Net worth $34,098 $31,711 $2,387 $22,402 $11,696

Senior preferred stock liquidation preference 104,359 100,681 3,678 91,439 12,920

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 Second Quarter 2022 Financial Results 

July 28, 2022

Page 2 
Single-Family Segment

Financial Results

Net Revenues

(In billions)

$4.7

$3.9

$4.7

$5.2

$4.9

2Q21 3Q21 4Q21 1Q22 2Q22

Net Income

(In billions)

$2.9

$2.0

$2.2

$3.4

$2.2

2Q21 3Q21 4Q21 1Q22 2Q22

Comprehensive Income

(In billions)

$2.8

$2.0

$2.2

$3.4

$2.2

2Q21 3Q21 4Q21 1Q22 2Q22

(Dollars in millions) 2Q 2022 1Q 2022 Change 2Q 2021 Change

Net interest income $4,535 $3,806 $729 $4,460 $75

Non-interest income 336 1,408 (1,072) 255 81

Net revenues 4,871 5,214 (343) 4,715 156

Benefit (provision) for credit losses (298) 831 (1,129) 686 (984)

Non-interest expense (1,854) (1,778) (76) (1,803) (51)

Income (loss) before income tax (expense) benefit 2,719 4,267 (1,548) 3,598 (879)

Income tax (expense) benefit (551) (856) 305 (743) 192

Net income (loss) 2,168 3,411 (1,243) 2,855 (687)

Other comprehensive income (loss), net of taxes and 

reclassification adjustments 5 (12) 17 (74) 79 

Comprehensive income (loss) $2,173 $3,399 ($1,226) $2,781 ($608)

Key Drivers

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

• A provision for credit losses for the second quarter of 2022, primarily driven by portfolio growth and 

deterioration in forecasted economic conditions, compared to a benefit for credit losses for the second quarter 

of 2021, which was primarily driven by a reserve release due to observed house price appreciation and 

improving economic conditions; partially offset by

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

guarantee fee rates, partially offset by lower deferred fee income, which was driven by slower prepayments as 

a result of higher mortgage interest rates.

Freddie Mac Second Quarter 2022 Financial Results 

July 28, 2022

Page 3 
Single-Family Segment

Business Results

New Business Activity

(UPB in billions)

$288

$299

$271

$207

$138

$98

$132 $111 $93 $86

$190

$167

$160

$114

$52

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

Mortgage Portfolio

(UPB in billions)

$2,564

$2,682

$2,792

$2,884

$2,928

2Q21 3Q21 4Q21 1Q22 2Q22

Serious Delinquency Rate

1.86%

1.46%

1.12%

0.92%

0.76%

2Q21 3Q21 4Q21 1Q22 2Q22

2Q 2022 1Q 2022 Change 2Q 2021 Change

New Business Statistics:

Single-Family homes funded (in thousands) 468 691 (223) 1,023 (555)

Purchase borrowers (in thousands) 263 279 (16) 315 (52)

Refinance borrowers (in thousands) 205 412 (207) 708 (503)

Affordable to low- to moderate-income families (%)(1) 61 52 9 52 9 

First-time homebuyers (%)(2) 49 48 1 47 2 

Average guarantee fee rate charged (bps) 52 49 3 49 3

Weighted average original loan-to-value (LTV) (%) 75 72 3 71 4 

Weighted average original credit score 744 746 (2) 754 (10)

UPB covered by new CRT issuance (in billions) $151 $208 ($57) $174 ($23)

Portfolio Statistics:

Average guarantee fee rate charged (bps) 47 47 — 46 1

Weighted average current LTV (%) 52 54 (2) 56 (4) 

Weighted average current credit score 756 756 — 756 —

Loan count (in millions) 13.5 13.4 0.1 12.5 1.0

Credit-Related Statistics:

Loan workout activity (in thousands) 37 49 (12) 88 (51)

Credit enhancement coverage (%) 59 55 4 49 10 

(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 468,000 single-family homes, 263,000 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 37,000 from 88,000 in the second quarter of 2021, as the 

overall forbearance population continued to decline.

• Credit enhancement coverage of the Single-Family mortgage portfolio increased to 59% from 49% in the 

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

transactions.

Freddie Mac Second Quarter 2022 Financial Results 

July 28, 2022

Page 4 
Multifamily Segment

Financial Results 

Net Revenues

(In billions)

$1.2

$1.3

$0.9

$0.6

$0.5

2Q21 3Q21 4Q21 1Q22 2Q22

Net Income

(In billions)

$0.8

$0.9

$0.5

$0.4

$0.3

2Q21 3Q21 4Q21 1Q22 2Q22

Comprehensive Income

(In billions)

$0.8 $0.9

$0.5

$0.3

$0.2

2Q21 3Q21 4Q21 1Q22 2Q22

 

(Dollars in millions) 2Q 2022 1Q 2022 Change 2Q 2021 Change

Net interest income $224 $298 ($74) $307 ($83)

Non-interest income 309 334 (25) 844 (535)

Net revenues 533 632 (99) 1,151 (618)

Benefit (provision) for credit losses (9) 6 (15) 54 (63)

Non-interest expense (166) (154) (12) (166) —

Income (loss) before income tax (expense) benefit 358 484 (126) 1,039 (681)

Income tax (expense) benefit (73) (97) 24 (215) 142

Net income (loss) 285 387 (102) 824 (539)

Other comprehensive income (loss), net of taxes and 

reclassification adjustments (71) (108) 37 6 (77)

Comprehensive income (loss) $214 $279 ($65) $830 ($616)

Key Drivers

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

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

higher interest rates on the fair values of guarantee assets.

• Lower net investment gains due to lower margins on new loan purchases and securitizations.

Freddie Mac Second Quarter 2022 Financial Results 

July 28, 2022

Page 5 
Multifamily Segment

Business Results

New Business Activity

(UPB in billions)

$13

$18

$25

$15 $15

2Q21 3Q21 4Q21 1Q22 2Q22

Mortgage Portfolio 

(UPB in billions)

$398

$404

$415 $415 $415

2Q21 3Q21 4Q21 1Q22 2Q22

Delinquency Rate

0.15%

0.12%

0.08% 0.08% 0.07%

2Q21 3Q21 4Q21 1Q22 2Q22

2Q 2022 1Q 2022 Change 2Q 2021 Change

New Business Statistics:

Number of rental units financed (in thousands) 149 144 5 137 12

Affordable to low-income families (%)(1)(3) 80 81 (1) 77 3 

Affordable to low- to moderate-income families (%)(2)(3) 97 97 — 97 — 

Weighted average original LTV (%) 63 67 (4) 68 (5) 

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

UPB covered by new CRT issuance (in billions) $21 $14 $7 $17 $4

Portfolio Statistics:

Average guarantee fee rate charged (bps) 43 43 — 41 2

Unit count (in thousands) 4,562 4,616 (54) 4,627 (65)

Credit-Related Statistics:

Credit enhancement coverage (%) 96 94 2 94 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.

(3) First quarter 2022 data revised to reflect results based on updated annual median income data provided by FHFA in the second quarter of 

2022.

Business Highlights

• The company provided financing for 149,000 multifamily rental units. 80% of the eligible multifamily rental units 

financed were affordable to low-income families.

• The UPB of mortgage loans covered by CRT transactions increased primarily due to the issuance of a 

Structured Credit Risk Trust note and a Multifamily Credit Insurance Pool transaction in the second 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.

• Credit enhancement coverage of the Multifamily mortgage portfolio increased to 96% from 94% in the second 

quarter of 2021.

Freddie Mac Second Quarter 2022 Financial Results 

July 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 June 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 June 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 $104.4 billion on June 

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

$106.7 billion on September 30, 2022 based on the increase in the Net Worth Amount during the second 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 June 30, 2022 and the 

company’s Second 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 July 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/kzgzfqoe. 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, 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, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2022 and 

Freddie Mac Second Quarter 2022 Financial Results 

July 28, 2022

Page 7 
June 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 Second Quarter 2022 Financial Results 

July 28, 2022

Page 8 
FREDDIE MAC

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

(In millions, except share-related amounts) 2Q 2022 1Q 2022 2Q 2021

Net interest income

Interest income $20,008 $17,740 $15,230

Interest expense (15,249) (13,636) (10,463) 

Net interest income 4,759 4,104 4,767 

Non-interest income (loss)

Guarantee income 205 70 356 

Investment gains (losses), net 321 1,513 636 

Other income (loss) 119 159 107 

Non-interest income (loss) 645 1,742 1,099 

Net revenues 5,404 5,846 5,866 

Benefit (provision) for credit losses (307) 837 740 

Non-interest expense

Salaries and employee benefits (376) (356) (346) 

Credit enhancement expense (558) (459) (369) 

Benefit for (decrease in) credit enhancement recoveries (1) (17) (193) 

Legislative assessments expense (748) (759) (696) 

Other expense (337) (341) (365) 

Non-interest expense (2,020) (1,932) (1,969) 

Income (loss) before income tax (expense) benefit 3,077 4,751 4,637 

Income tax (expense) benefit (624) (953) (958) 

Net income (loss) 2,453 3,798 3,679 

Other comprehensive income (loss), net of taxes and reclassification adjustments (66) (120) (68) 

Comprehensive income (loss) $2,387 $3,678 $3,611

Net income (loss) $2,453 $3,798 $3,679

Future increase in senior preferred stock liquidation preference (2,387) (3,678) (3,611)

Net income (loss) attributable to common stockholders $66 $120 $68

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

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

Freddie Mac Second Quarter 2022 Financial Results 

July 28, 2022

Page 9 
FREDDIE MAC 

Condensed Consolidated Balance Sheets (Unaudited)

June 30, December 31,

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

Assets

Cash and cash equivalents (includes $855 and $1,695 of restricted cash and cash 

equivalents) $5,257 $10,150

Securities purchased under agreements to resell 86,496 71,203 

Investment securities, at fair value 48,937 53,015 

Mortgage loans held-for-sale (includes $5,670 and $10,498 at fair value) 12,340 19,778 

Mortgage loans held-for-investment (net of allowance for credit losses of $4,939 and $4,947) 2,954,524 2,828,331 

Accrued interest receivable, net 7,871 7,474 

Deferred tax assets, net 5,552 6,214 

Other assets (includes $6,419 and $6,594 at fair value) 24,604 29,421 

Total assets $3,145,581 $3,025,586

Liabilities and equity

Liabilities

Accrued interest payable $6,594 $6,268

Debt (includes $3,605 and $2,478 at fair value) 3,093,178 2,980,185 

Other liabilities (includes $1,079 and $287 at fair value) 11,711 11,100 

Total liabilities 3,111,483 2,997,553 

Commitments and contingencies

Equity

Senior preferred stock (liquidation preference of $104,359 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) (48,742) (54,993) 

AOCI, net of taxes, related to:

Available-for-sale securities 107 297 

Other (139) (143) 

Total AOCI, net of taxes (32) 154 

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

Total equity 34,098 28,033 

Total liabilities and equity $3,145,581 $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.

June 30, December 31,

(In millions) 2022 2021

Assets:

Cash and cash equivalents (includes $755 and $1,595 of restricted cash and cash 

equivalents) $756 $1,596 

Securities purchased under agreements to resell 18,400 34,000 

Investment securities, at fair value 148 420

Mortgage loans held-for-investment, net 2,913,414 2,784,626

Accrued interest receivable, net 7,410 7,019 

Other assets 7,469 11,265 

Total assets of consolidated VIEs $2,947,597 $2,838,926

Liabilities:

Accrued interest payable $6,175 $5,823

Debt 2,934,115 2,803,054

Total liabilities of consolidated VIEs $2,940,290 $2,808,877

Freddie Mac Second Quarter 2022 Financial Results 

July 28, 2022

Page 10