Federal Home Loan Mortgage Corp. Reports Increase in Net Income

The Federal Home Loan Mortgage Corp., commonly known as Freddie Mac, announced that its net income has risen in the second quarter, despite experiencing a decrease in revenue.

Strong Profit Growth

Freddie Mac revealed that it has achieved a profit of $2.9 billion for the second quarter, marking an increase from $2.5 billion in the same period last year. This growth in net income demonstrates the company’s financial strength and resilience.

Slight Revenue Decline

While Freddie Mac’s net income has seen a positive growth trajectory, revenue has experienced a slight decline of 1%. The company attributes this decrease in revenue to lower net interest income.

Favorable Credit Losses Benefit

Freddie Mac reported a benefit for credit losses amounting to $537 million, showcasing a significant increase compared to the provision of $307 million in the previous year. This positive performance is primarily driven by a credit reserve release in the company’s single-family segment.

Delinquency Rates

The single-family serious delinquency rate of Freddie Mac has notably improved, decreasing from 0.76% to 0.56% compared to the same period last year. However, the multifamily delinquency rate has slightly increased from 0.07% to 0.21% during the same time frame.

These figures illustrate both the company’s effective risk management and the resilience of its loan portfolio.