Freddie Mac (OTCMKTS:FMCC) reported full-year 2025 net income of $10.7 billion and comprehensive income of $10.8 billion, supported by net revenues of $23.3 billion, Chief Financial Officer Jim Whitlinger said during the company’s fourth-quarter earnings presentation. The company has now posted net income and comprehensive income above $10 billion for three consecutive years, Whitlinger said, adding that Freddie Mac has built more than $70 billion in net worth since it began retaining earnings six years ago.
Whitlinger attributed the year’s performance to financial strength and risk management, alongside continued investment in technology. He said Freddie Mac provided $465 billion of liquidity in 2025 to support more than 1.7 million American families, including close to 400,000 first-time homebuyers. First-time buyers accounted for more than 51% of the single-family primary residences financed, marking the third straight year in which first-time buyers exceeded half of primary home purchases the company supported.
Affordable housing and technology initiatives
In the single-family business, Whitlinger said technology investments are aimed at increasing efficiency and reducing costs for lenders. He said enhancements to the company’s automated underwriting tool qualified more than 250,000 additional borrowers, reduced average loan origination costs by $1,700, and saved “$millions” by avoiding performing loan repurchases. He also said Freddie Mac is expanding financing for manufactured housing and homes with accessory dwelling units.
On the multifamily side, Whitlinger said Freddie Mac financed $4.2 billion in forward commitments, providing borrowers and construction lenders certainty that loans will be purchased in the future with terms locked in at commitment. He added that the company expanded the program to include conventional loans and that the multifamily segment invested $1.2 billion in low-income housing tax credit (LIHTC) equity to help create and preserve affordable rental units nationwide.
Full-year 2025 financial results
For full-year 2025, Whitlinger said net income and comprehensive income declined from $11.9 billion in 2024, while net revenues decreased to $23.3 billion from $23.9 billion. Net interest income rose 8% to $21.4 billion, driven by continued growth in the mortgage portfolio and lower funding costs. The total mortgage portfolio grew 2% year over year to $3.7 trillion at year-end 2025, reflecting 2% growth in single-family and 6% growth in multifamily, he said.
Non-interest income fell to $1.9 billion, down 55% from 2024. Whitlinger said the decline was primarily due to a shift to net investment losses in 2025 compared with net investment gains in 2024, along with reduced revenues from held-for-sale loan purchase and securitization activities and impacts from interest rate risk management in the multifamily business.
The provision for credit losses totaled $1.3 billion, up $814 million year over year. Whitlinger said this was driven by a credit reserve build tied to new acquisitions in both businesses, changes in forecasted and observed house prices in single-family, and deteriorating credit performance on certain delinquent multifamily loans. Non-interest expenses were $8.6 billion, down $38 million from 2024.
Fourth-quarter performance and drivers
In the fourth quarter of 2025, Freddie Mac reported net income of $2.8 billion, down from $3.2 billion in the prior-year quarter. Whitlinger said the decrease was primarily due to lower net revenues of $565 million. Net interest income increased 10% year over year, but the benefit was offset by net investment losses of $283 million, compared with a net investment gain of $879 million in the fourth quarter of 2024.
He said the quarter’s net investment losses were primarily driven by interest rate and spread changes in the single-family business, lower revenue from held-for-sale loan purchases, and interest rate risk management activities in multifamily. The provision for credit losses was a $52 million expense for the quarter, down $40 million from the prior-year quarter, reflecting a reserve build in multifamily partially offset by a credit reserve release in single-family due mainly to changes in estimated property market values and forecasted house prices, Whitlinger said.
Segment details: Single-Family and Multifamily
Single-Family reported full-year 2025 net income of $9.2 billion, slightly below $9.4 billion in 2024, while net revenue was $19.9 billion, up $40 million. Net interest income increased 7% to $19.8 billion, which Whitlinger said was driven by higher core guarantee income from portfolio growth and lower funding costs, partially offset by lower non-interest income due to investment losses tied to interest rate and spread changes.
The single-family provision for credit losses rose to $758 million from $374 million. Whitlinger cited reserve builds related to new acquisitions, changes in estimated market values based on the company’s internal house price index, and updated house price growth forecasts. He said house prices increased 0.7% in 2025 compared with a 4.2% increase in 2024, and that Freddie Mac’s current forecast assumes 0.5% growth over the next 12 months and 1.4% over the subsequent 12 months. The single-family allowance for credit losses ended the year at $7.5 billion, up from $6.7 billion, for a coverage ratio of 23 basis points versus 21 basis points a year earlier.
Whitlinger said single-family credit metrics remained strong, including a weighted average current loan-to-value ratio of 53% and a weighted average credit score of 754. The serious delinquency rate was 59 basis points at Dec. 31, 2025, unchanged from the prior year. He also said Freddie Mac captured 54% of total GSE single-family market share for the year, with new business activity of $389 billion, up 12% as refinance and purchase activity strengthened. In the fourth quarter, new business totaled $118 billion, with refinance accounting for 35% of volume—the highest quarterly refinance share in the past three years, he said. Whitlinger also noted that mortgage rates declined through 2025, with the average 30-year fixed rate ending the year at 6.15% after peaking at 7.04% in the first quarter.
Multifamily reported full-year 2025 net income of $1.5 billion, down from $2.5 billion in 2024. Whitlinger said the decline was driven by lower net revenues and a higher provision for credit losses. Net revenues totaled $3.4 billion compared with $4.1 billion, with net interest income up 33% reflecting higher guarantee fee income associated with a strategic shift toward fully guaranteed securitizations. However, he said the improvement was offset by a $1.1 billion decline in non-interest income due to lower revenues from held-for-sale loan purchases and securitization activities following the strategy shift, as well as impacts from interest rate risk management activities.
Whitlinger highlighted a change in multifamily strategy: the business has shifted from primarily using senior-subordinate securitization structures to focusing predominantly on fully guaranteed securitizations. Under this approach, multifamily initially retains credit risk and subsequently transfers it through Multifamily Credit Insurance Pool and Multifamily Structured Credit Risk note transactions. He said the change is expected to reduce market and fair value-driven earnings volatility and generate a more stable and higher stream of guaranteed net interest income over time.
The multifamily provision for credit losses was a $532 million expense in 2025, up from $102 million in 2024, reflecting reserve builds tied to new loan purchase commitments and acquisitions related to the strategy change and deterioration in the credit performance of certain delinquent loans, Whitlinger said. The multifamily allowance for credit losses increased to $956 million from $548 million, with the coverage ratio unchanged at 46 basis points. Net charge-offs were $124 million.
Whitlinger said Freddie Mac captured 51% of GSE multifamily new business market share in 2025. New business activity reached $76 billion, up 17%, with about 66% of activity mission-driven affordable housing based on unpaid principal balance, exceeding the FHFA minimum requirement of 50%. Of the $76 billion, $73 billion counted toward the FHFA cap. Freddie Mac securitized $67 billion of loans, $12 billion more than in 2024, and the average guarantee fee rate on new total guarantee exposures increased to 56 basis points, up 5 basis points, primarily due to growth in fully guaranteed securitization issuances, Whitlinger said. The multifamily mortgage portfolio ended 2025 at $496 billion, up 6%, and the delinquency rate increased to 44 basis points from 40 basis points. Whitlinger added that 97% of delinquent multifamily loans had credit enhancement and that 89% of the multifamily portfolio was covered by credit enhancements at year-end.
Capital position and outlook
Whitlinger said Freddie Mac’s net worth rose to $70.4 billion at year-end 2025, an 18% increase from 2024. Total capital required under the company’s regulatory capital rule was $158 billion, including $59 billion of buffers, he said. The capital shortfall to regulatory capital excluding buffers was $106 billion, which Whitlinger attributed to the fact that $73 billion of senior preferred stock does not qualify as regulatory capital.
In closing remarks, Whitlinger described 2025 as “a good year” for Freddie Mac, citing strong financial results, risk management, investments in employee development, and efforts to improve operational efficiency and reduce unnecessary costs. He said the company expects to remain on this path and pursue further improvements through 2026.
About Freddie Mac (OTCMKTS:FMCC)
Freddie Mac (OTCMKTS:FMCC), officially the Federal Home Loan Mortgage Corporation, is a government-sponsored enterprise chartered by Congress in 1970 to enhance liquidity and stability in the U.S. housing finance system. Headquartered in McLean, Virginia, the company operates under the supervision of the Federal Housing Finance Agency (FHFA) and carries a congressional mandate to support affordable, sustainable homeownership and rental housing markets nationwide.
The company’s primary business activities involve purchasing mortgage loans from approved lenders, pooling them into mortgage-backed securities (MBS), and guaranteeing the timely payment of principal and interest to investors.
