Q1 2025 Federal Home Loan Mortgage Corp Earnings Call Transcript
Key Points
- Federal Home Loan Mortgage Corp (FMCC) reported a solid net income of $2.8 billion for the first quarter, increasing its net worth to $62 billion.
- The company supported 313,000 families in renting or refinancing homes, with 52% of single-family loan purchases aiding first-time homebuyers.
- Net interest income rose by 7% year-over-year to $5.1 billion, driven by mortgage portfolio growth and lower funding costs.
- The single-family segment saw a 16% increase in net income to $2.3 billion, with net revenues up by 10% year-over-year.
- Multifamily new business activity increased to $10 billion, with 66% of eligible rental units affordable to low-income families.
- Noninterest income declined by 25% year-over-year, primarily due to decreased net investment gains in the multifamily segment.
- The multifamily segment reported a 35% decrease in net income, driven by lower noninterest income and less favorable fair value changes.
- The provision for credit losses increased to $280 million, primarily due to credit reserve builds in the single-family segment.
- The multifamily delinquency rate increased to 46 basis points, driven by delinquencies in floating rate loans.
- The single-family serious delinquency rate rose by 7 basis points year-over-year, influenced by loans originated during and after 2022 and impacts from hurricanes.
Good morning, and thank you for joining us for a presentation of Freddie Mac's first quarter 2025 financial results. I'm Jeff Markowitz, Senior Vice President and Chief External Affairs Officer. We're joined today by Executive Vice President and Chief Financial Officer, Jim Wittlinger.
Before we begin today, we'd like to point out that during the call, Mr. Wittlinger, may make forward-looking statements based on assumptions about the company's key business drivers and other factors. Changes in these factors could cause the company's actual results to materially vary from its expectations.
A description of these factors can be found in the company's quarterly report on Form 10-Q filed today. You will find the 10-Q earnings press release and related materials posted on the investor relations section of freddiemac.com. This call is recorded, and a replay will soon be available on freddiemac.com. We ask that the call not be rebroadcast or transcribed.
With that, I'll turn the call over to our
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