Q2 2025 Federal Home Loan Mortgage Corp Earnings Call Transcript
Key Points
- Federal Home Loan Mortgage Corp (FMCC) reported a net income of $2.4 billion for the second quarter, contributing to a net worth increase to $65 billion.
- The total mortgage portfolio grew to $3.6 trillion, providing over $100 billion in liquidity to the US housing finance system.
- More than 360,000 American families were assisted in the second quarter, with over 100,000 purchasing their first home.
- 53% of single-family homes and 95% of eligible rental units financed were affordable to low and moderate-income households.
- The single-family serious delinquency rate declined by 4 basis points quarter-over-quarter, indicating improved loan performance.
- Net income decreased by $378 million or 14% year-over-year, primarily due to higher provisions for credit losses.
- Non-interest income declined by $443 million or 42% from the prior year quarter, mainly due to lower investment gains in the multifamily business.
- The provision for credit losses increased significantly to $783 million, driven by house price declines and lower forecasted house price appreciation.
- The multifamily segment reported a net income decrease of $186 million or 39% from the prior year quarter, affected by lower non-interest income.
- The multifamily delinquency rate increased by 9 basis points, primarily due to delinquency in floating rate loans and small balance loans.
Good morning and thank you for joining us for a presentation of Freddie Mac's second-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 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 materially vary from its expectations. A description of those factors can be found in the company's quarterly report on Form 10-Q filed today.
You'll 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 Freddie Mac
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