Freddie Mac Reports Net Income of $2.9 Billion for Second Quarter 2023

Making Home Possible for 372,000 Households in Second Quarter 2023

• Financed 258,000 mortgages, with 55% of eligible loans being affordable to low- to moderate-income families, and 

enabled 102,000 first-time homebuyers to purchase a home

• Financed 114,000 rental units, with 90% of eligible units being affordable to low- to moderate-income families

Second Quarter 2023 Financial Results

Market Liquidity 

Provided -

$96 Billion

Homes and Rental Units 

Financed -

372,000

Net Worth -

$42.0 Billion

Total Mortgage

 Portfolio -

$3.4 Trillion

Consolidated

• Net income of $2.9 billion, an increase of 20% year-over-year, 

with the increase primarily driven by a credit reserve release in 

Single-Family

• Net revenues of $5.3 billion, a decrease of 1% year-over-year, 

as lower net interest income was partially offset by an increase 

in non-interest income

• Benefit for credit losses of $0.5 billion, primarily driven by 

improvements in observed and forecasted house price 

appreciation in Single-Family, partially offset by a credit reserve 

build in Multifamily

• New business activity of $83 billion, down 40% 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 3% year-over-year, as 

portfolio growth has moderated in recent periods due to the 

slowdown in new business activity

• Serious delinquency rate of 0.56%, down from 0.76% at June 

30, 2022, declining below pre-pandemic levels 

• Completed approximately 20,000 loan workouts

• 62% of mortgage portfolio covered by credit enhancements

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

as higher mortgage interest rates have reduced demand for 

multifamily financing

• Mortgage portfolio of $427 billion, up 3% year-over-year, as 

portfolio growth has moderated in recent periods due to the 

slowdown in new business activity

• Delinquency rate of 0.21%, up from 0.07% at June 30, 2022

• 94% of mortgage portfolio covered by credit enhancements

“The second quarter saw 

single-family home prices 

stabilize, influenced by 

strong demand, higher 

residential mortgage 

rates, and limited homes 

for sale. Renters continue 

to be cost burdened as 

rents rose in the face of 

softening multifamily 

property prices. Freddie 

Mac remained focused 

on its mission and 

delivered a solid quarter, 

helping 372,000 buy, 

refinance, or rent a home, 

the majority of them 

affordable to low- or 

moderate-income 

borrowers and renters.”

Michael J. DeVito

Chief Executive Officer

Net Revenues 

$5.3 Billion

Net Income

$2.9 Billion

Comprehensive 

Income

$2.9 Billion

Single-Family

Net Revenues 

$4.4 Billion

Net Income 

$2.4 Billion

Comprehensive

Income

$2.4 Billion

Multifamily

Net Revenues 

$1.0 Billion

Net Income 

$0.6 Billion

Comprehensive

Income 

$0.5 Billion
McLean, VA — Freddie Mac (OTCQB: FMCC) today reported net income of $2.9 billion for the second quarter of 

2023, an increase of 20% year-over-year, with the increase primarily driven by a credit reserve release in SingleFamily. 

Net revenues were $5.3 billion, down 1% year-over-year, as lower net interest income was partially offset by an 

increase in non-interest income. Net interest income was $4.5 billion, down 5% year-over-year, primarily driven by 

lower deferred fee income due to slower prepayments as a result of higher mortgage interest rates. Non-interest 

income was $0.8 billion, up 27% year-over year, primarily driven by higher guarantee income and higher net 

investment gains in Multifamily.

Benefit for credit losses was $0.5 billion for the second quarter of 2023, primarily driven by a credit reserve release 

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

credit reserve build in Multifamily due to deterioration in forecasted multifamily market conditions and current loan 

performance. The provision for credit losses of $0.3 billion for the second quarter of 2022 was primarily driven by a 

credit reserve build in Single-Family due to portfolio growth and deterioration in forecasted economic conditions. 

Non-interest expense was $2.2 billion, up 9% year-over-year, primarily driven by a decrease in credit 

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

Summary of Consolidated Statements of Income and Comprehensive Income 

(Dollars in millions) 2Q 2023 1Q 2023 Change 2Q 2022 Change

Net interest income $4,523 $4,501 $22 $4,759 ($236)

Non-interest income 816 326 490 645 171

Net revenues 5,339 4,827 512 5,404 (65)

(Provision) benefit for credit losses 537 (395) 932 (307) 844

Non-interest expense (2,204) (1,932) (272) (2,020) (184)

Income before income tax expense 3,672 2,500 1,172 3,077 595

Income tax expense (728) (505) (223) (624) (104)

Net income 2,944 1,995 949 2,453 491

Other comprehensive income (loss), net of taxes 

and reclassification adjustments (54) 54 (108) (66) 12

Comprehensive income $2,890 $2,049 $841 $2,387 $503

Conservatorship metrics (in millions)

Net worth $41,957 $39,067 $2,890 $34,098 $7,859

Senior preferred stock liquidation preference 111,715 109,666 2,049 104,359 7,356

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 2023 Financial Results 

August 2, 2023

Page 2 
Single-Family Segment

Financial Results 

Net Revenues

(In billions)

$4.9

$4.4

$4.2 $4.2

$4.4

2Q22 3Q22 4Q22 1Q23 2Q23

Net Income

(In billions)

$2.2

$0.8

$1.5

$1.7

$2.4

2Q22 3Q22 4Q22 1Q23 2Q23

Comprehensive Income

(In billions)

$2.2

$0.8

$1.5

$1.7

$2.4

2Q22 3Q22 4Q22 1Q23 2Q23

(Dollars in millions) 2Q 2023 1Q 2023 Change 2Q 2022 Change

Net interest income $4,295 $4,296 ($1) $4,535 ($240)

Non-interest income 65 (93) 158 336 (271)

Net revenues 4,360 4,203 157 4,871 (511)

(Provision) benefit for credit losses 638 (318) 956 (298) 936

Non-interest expense (2,028) (1,783) (245) (1,854) (174)

Income before income tax expense 2,970 2,102 868 2,719 251

Income tax expense (589) (425) (164) (551) (38)

Net income 2,381 1,677 704 2,168 213

Other comprehensive income (loss), net of taxes and 

reclassification adjustments 2 (1) 3 5 (3) 

Comprehensive income $2,383 $1,676 $707 $2,173 $210

Second Quarter 2023

Net income of $2.4 billion, up 10% year-over-year.

• Net revenues were $4.4 billion, down 10% year-over year. Net interest income was $4.3 billion, down 5%

year-over-year, primarily driven by lower deferred fee income due to slower prepayments as a result of higher 

mortgage interest rates. 

• Benefit for credit losses was $0.6 billion for the second quarter of 2023, primarily driven by a credit reserve 

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

losses of $0.3 billion for the second quarter of 2022 was primarily driven by a credit reserve build due to 

portfolio growth and deterioration in forecasted economic conditions.

Freddie Mac Second Quarter 2023 Financial Results 

August 2, 2023

Page 3 
Single-Family Segment

Business Results 

New Business Activity

(UPB in billions)

$138

$121

$75

$59

$83

$86

$98

$63

$51

$73

$52 $23

$12

$8

$10

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

Mortgage Portfolio

(UPB in billions)

$2,928

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

2Q22 3Q22 4Q22 1Q23 2Q23

Serious Delinquency Rate

0.76%

0.67% 0.66% 0.62% 0.56%

2Q22 3Q22 4Q22 1Q23 2Q23

2Q 2023 1Q 2023 Change 2Q 2022 Change

New Business Statistics:

Single-Family homes funded (in thousands) 258 190 68 468 (210)

Purchase borrowers (in thousands) 217 157 60 263 (46)

Refinance borrowers (in thousands) 41 33 8 205 (164)

Affordable to low- to moderate-income families (%)(1) 55 54 1 61 (6) 

First-time homebuyers (%)(2) 52 51 1 49 3 

Average estimated guarantee fee rate (bps) 57 55 2 52 5

Weighted average original loan-to-value (LTV) (%) 79 79 — 75 4 

Weighted average original credit score 751 749 2 744 7

UPB covered by new CRT issuance (in billions) $56 $15 $41 $151 ($95)

Portfolio Statistics:

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

Weighted average current LTV (%) 54 55 (1) 52 2 

Weighted average current credit score 756 755 1 756 —

Loan count (in millions) 13.6 13.6 — 13.5 0.1

Credit-Related Statistics:

Loan workout activity (in thousands) 20 24 (4) 37 (17)

Credit enhancement coverage (%) 62 62 — 59 3 

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

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

Business Highlights

• The percentage of new acquisitions represented by purchase loans increased significantly in the second 

quarter of 2023, compared to the second quarter of 2022, as refinance activity slowed due to higher mortgage 

interest rates. First-time homebuyers represented 52% of new single-family home purchase loans.

• Single-Family loan workout activity decreased to 20,000 from 37,000 in the second quarter of 2022, as the 

seriously delinquent loan population continued to decline.

• Credit enhancement coverage of the Single-Family mortgage portfolio increased to 62% at June 30, 2023, up 

from 59% at June 30, 2022.

Freddie Mac Second Quarter 2023 Financial Results 

August 2, 2023

Page 4 
Multifamily Segment

Financial Results 

Net Revenues

(In billions)

$0.5

$0.8

$0.6 $0.6

$1.0

2Q22 3Q22 4Q22 1Q23 2Q23

Net Income

(In billions)

$0.3

$0.5

$0.3 $0.3

$0.6

2Q22 3Q22 4Q22 1Q23 2Q23

Comprehensive Income

(In billions)

$0.2

$0.3 $0.3

$0.4

$0.5

2Q22 3Q22 4Q22 1Q23 2Q23

 

(Dollars in millions) 2Q 2023 1Q 2023 Change 2Q 2022 Change

Net interest income $228 $205 $23 $224 $4

Non-interest income 751 419 332 309 442

Net revenues 979 624 355 533 446

(Provision) benefit for credit losses (101) (77) (24) (9) (92)

Non-interest expense (176) (149) (27) (166) (10)

Income before income tax expense 702 398 304 358 344

Income tax expense (139) (80) (59) (73) (66)

Net income 563 318 245 285 278

Other comprehensive income (loss), net of taxes and 

reclassification adjustments (56) 55 (111) (71) 15

Comprehensive income $507 $373 $134 $214 $293

Second Quarter 2023

Net income of $0.6 billion, up 98% year-over-year.

• Net revenues were $1.0 billion, up 84% year-over-year. Non-interest income was $0.8 billion, up 143% yearover-year, driven by higher guarantee income and higher net investment gains. Guarantee income increased 

primarily due to lower fair value losses on guarantee assets as a result of smaller interest rate increases. Net 

investment gains increased primarily due to fair value gains from interest-rate risk management activities.

• Provision for credit losses was $0.1 billion in the second quarter of 2023, driven by a credit reserve build due 

to deterioration in forecasted multifamily market conditions and current loan performance.

Freddie Mac Second Quarter 2023 Financial Results 

August 2, 2023

Page 5 
Multifamily Segment

Business Results

New Business Activity

(UPB in billions)

$15 $14

$29

$6

$13

2Q22 3Q22 4Q22 1Q23 2Q23

Mortgage Portfolio 

(UPB in billions)

$415 $416

$429 $426 $427

2Q22 3Q22 4Q22 1Q23 2Q23

Delinquency Rate

0.07%

0.13% 0.12% 0.13%

0.21%

2Q22 3Q22 4Q22 1Q23 2Q23

2Q 2023 1Q 2023 Change 2Q 2022 Change

New Business Statistics:

Number of rental units financed (in thousands)(1) 114 60 54 148 (34)

Affordable to low-income families (%)(2)(4) 67 69 (2) 80 (13) 

Affordable to low- to moderate-income families (%)(3)(4) 90 91 (1) 97 (7) 

Weighted average original LTV (%) 58 57 1 63 (5) 

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

UPB covered by new CRT issuance (in billions) $16 $8 $8 $21 ($5)

Portfolio Statistics:

Average guarantee fee rate charged (bps) 45 44 1 43 2

Credit-Related Statistics:

Credit enhancement coverage (%) 94 93 1 96 (2) 

(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.

(4) First quarter 2023 data revised to reflect results based on updated annual median income data provided by FHFA in the second quarter of 

2023.

Business Highlights

• The company provided financing for 114,000 multifamily rental units. 67% of the eligible multifamily rental units 

financed were affordable to low-income families.

• The Multifamily delinquency rate increased to 0.21% at June 30, 2023 primarily driven by an increase in 

delinquent loans in our senior housing loan portfolio. 95% of the delinquent loans in the Multifamily mortgage 

portfolio have credit enhancement coverage, while 94% of all 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 Second Quarter 2023 Financial Results 

August 2, 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 June 30, 2023. 

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

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

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

on the senior preferred stock in June 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 $111.7 billion on June 

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

$114.6 billion on September 30, 2023 based on the increase in the Net Worth Amount during the second 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 June 30, 2023 and the 

company’s Second 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 August 2, 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/pc7r2vaz. The replay will be available on the company’s website at 

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

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

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

* * * *

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

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

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

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

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

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

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

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

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

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

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

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

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

Reserve, and the impacts of legislation or regulations and new or amended accounting guidance, that could cause 

actual results to differ materially from these expectations. These assumptions, judgments, estimates, and factors 

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

Report on Form 10-Q for the quarters ended March 31, 2023 and June 30, 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 

Freddie Mac Second Quarter 2023 Financial Results 

August 2, 2023

Page 7 
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 2023 Financial Results 

August 2, 2023

Page 8 
FREDDIE MAC

Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited)

(In millions, except share-related amounts) 2Q 2023 1Q 2023 2Q 2022

Net interest income

Interest income $25,755 $24,987 $20,008

Interest expense (21,232) (20,486) (15,249) 

Net interest income 4,523 4,501 4,759 

Non-interest income

Guarantee income 309 466 205 

Investment gains, net 411 (225) 321 

Other income 96 85 119 

Non-interest income 816 326 645 

Net revenues 5,339 4,827 5,404 

(Provision) benefit for credit losses 537 (395) (307) 

Non-interest expense

Salaries and employee benefits (405) (374) (376) 

Credit enhancement expense (590) (530) (558) 

Benefit for (decrease in) credit enhancement recoveries (108) 49 (1) 

Legislative assessments expense (751) (735) (748) 

Other expense (350) (342) (337) 

Non-interest expense (2,204) (1,932) (2,020) 

Income before income tax expense 3,672 2,500 3,077 

Income tax expense (728) (505) (624) 

Net income 2,944 1,995 2,453 

Other comprehensive income (loss), net of taxes and reclassification adjustments (54) 54 (66) 

Comprehensive income $2,890 $2,049 $2,387

Net income $2,944 $1,995 $2,453

Amounts attributable to senior preferred stock (2,890) (2,049) (2,387)

Net income attributable to common stockholders $54 ($54) $66

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

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

Freddie Mac Second Quarter 2023 Financial Results 

August 2, 2023

Page 9 
FREDDIE MAC 

Condensed Consolidated Balance Sheets (Unaudited)

June 30, December 31,

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

Assets

Cash and cash equivalents (includes $793 and $707 of restricted cash and cash equivalents) $5,514 $6,360

Securities purchased under agreements to resell 112,386 87,295 

Investment securities, at fair value 41,629 38,701 

Mortgage loans held-for-sale (includes $5,712 and $3,218 at fair value) 11,695 12,197 

Mortgage loans held-for-investment (net of allowance for credit losses of $7,339 and $7,391 

and includes $1,359 and $1,214 at fair value) 3,042,604 3,022,318 

Accrued interest receivable, net 9,081 8,529 

Deferred tax assets, net 5,237 5,777 

Other assets (includes $5,840 and $5,890 at fair value) 22,810 27,156 

Total assets $3,250,956 $3,208,333

Liabilities and equity

Liabilities

Accrued interest payable $8,049 $7,309

Debt (includes $1,995 and $3,047 at fair value) 3,189,086 3,145,832 

Other liabilities (includes $1,017 and $759 at fair value) 11,864 18,174 

Total liabilities 3,208,999 3,171,315 

Commitments and contingencies

Equity

Senior preferred stock (liquidation preference of $111,715 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 (40,727) (45,666) 

AOCI, net of taxes, related to:

Available-for-sale securities (88) (84) 

Other (100) (104) 

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

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

Total equity 41,957 37,018 

Total liabilities and equity $3,250,956 $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.

June 30, December 31,

(In millions) 2023 2022

Assets:

Cash and cash equivalents (includes $700 and $610 of restricted cash and cash equivalents) $701 $611 

Securities purchased under agreements to resell 11,265 9,703 

Investment securities, at fair value 94 126

Mortgage loans held-for-investment, net 2,995,770 2,971,601

Accrued interest receivable, net 8,288 7,944 

Other assets 6,653 5,019 

Total assets of consolidated VIEs $3,022,771 $2,995,004

Liabilities:

Accrued interest payable $7,014 $6,619

Debt 3,007,278 2,979,070

Total liabilities of consolidated VIEs $3,014,292 $2,985,689

Freddie Mac Second Quarter 2023 Financial Results 

August 2, 2023

Page 10