Q2 2026 Federal Home Loan Mortgage Corp Earnings Call Transcript
Key Points
- Net income increased 61% year-over-year to $3.8 billion, driven by higher net interest income and a credit reserve release.
- Total mortgage portfolio grew to $3.7 trillion, providing $128 billion in liquidity to the U.S. housing market.
- Single-family segment net income rose 57% year-over-year to $3.3 billion, supported by a credit loss benefit and higher net interest income.
- Multifamily segment net income surged 90% year-over-year to $561 million, benefiting from higher net revenues and a credit loss benefit.
- Net worth grew 20% year-over-year to $78 billion, strengthening the company's capital position and resilience.
- Non-interest income shifted from a gain of $617 million in Q2 2025 to a loss of $19 million in Q2 2026, due to net investment losses.
- Single-family serious delinquency rate increased 5 basis points year-over-year to 60 basis points, driven by loans originated in 2022 and later.
- Multifamily delinquency rate rose to 51 basis points from 47 basis points a year ago, due to stress from elevated interest rates and small balance loans.
- Net charge-offs in the single-family portfolio increased to $116 million from $73 million in the prior year quarter.
- The company still faces a significant capital deficit of $101 billion excluding buffers, largely due to $73 billion of Senior Preferred Stock not qualifying as regulatory capital.
Good morning, and thanks for joining us for a presentation of Freddie Mac's second quarter 2026 financial results. I'm Fred Solomon, Director of Financial Communications. We are joined today by Executive Vice President and Chief Financial Officer, Jim Whitlinger.
Before we begin, we'd like to point out that during the call, Mr. Whitlinger 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 vary materially from its expectations. A description of those 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 this call not be rebroadcast or transcribed.
With that, I'll turn the call over to Freddie Mac's CFO, Jim
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