Wed, Oct 30, 12:02 PM (64 days ago)
In the third quarter of 2024, the Federal Home Loan Mortgage Corporation (Freddie Mac, FMCC) reported a net income of $3.1 billion, representing a 16% increase year-over-year. Total net revenues rose 3% to $5.8 billion, driven by a 5% increase in net interest income, reflecting growth in the mortgage portfolio, which reached $3.5 trillion. The Single-Family segment contributed significantly, with net interest income of $4.7 billion, while the Multifamily segment reported $307 million. The company saw a reduction in non-interest expenses by 15%, attributed to the absence of a significant litigation accrual from the previous year. The allowance for credit losses decreased to $7.2 billion, with a benefit recognized in both segments due to improved credit quality and lower mortgage rates. Freddie Mac's liquidity remained strong, providing $113 billion to the mortgage market, facilitating 415,000 home purchases and rentals. However, uncertainties persist regarding future operations, particularly related to the ongoing conservatorship and regulatory environment, which may impact the business model and capital requirements. The company's net worth increased to $56.4 billion, but remains subject to Treasury's liquidation preferences.