Freddie Mac posts $3.8B Q2 net income

Freddie Mac on Thursday morning reported net income of $3.8 billion in the second quarter, a 61% increase from a year earlier, driven largely by a credit reserve release and higher net interest income.

Net income increased from $3.558 billion in the first quarter.

Net revenue rose 1% year over year to $5.991 billion. Net interest income increased 13% to $6.01 billion, supported by growth in Freddie Mac’s mortgage portfolios and a larger balance of fully guaranteed multifamily securitizations. The increase was partially offset by a $19 million noninterest loss, compared with $617 million in noninterest income a year earlier.

“Freddie Mac delivered strong second quarter financial results, reflecting the strength of the business and disciplined execution against our priorities,” Bill Pulte, director of the Federal Housing Finance Agency (FHFA) and chairman of Freddie Mac’s board, said in a statement. “Net income was $3.8 billion, driven by strong revenues, a credit benefit and continued cost discipline.”

Speaking during the company’s earnings call on Thursday morning, Jim Whitlinger, the company’s executive vice president and chief financial officer, shared that the GSE’s total mortgage portfolio increased to $3.7 trillion.

“Freddie Mac support during the second quarter helped nearly 439,000 families buy, refinance or rent a home,” Whitlinger said. “The majority of the houses and apartments refinanced in the quarter were affordable to working families earning 120% or less of area median income.”

Freddie Mac recorded an $880 million benefit for credit losses during the quarter, compared with a $783 million provision a year earlier. The company attributed the change primarily to a release of single-family credit reserves following updates to its process for generating future home-price scenarios.

Noninterest income swung from a gain of $617 million in the second quarter of 2025 to a loss of $19 million in the second quarter of 2026. “This was primarily due to net investment losses in the second quarter [of] 2026 compared to net investment gains in the prior year quarter, as well as lower guarantee income,” Whitlinger said.

Freddie Mac’s net worth increased to $77.8 billion at the end of the quarter, up from $64.8 billion a year earlier and up from $74 billion in Q1 2026.

The company’s single-family business generated $3.277 billion in net income, up 57% from the prior-year period. Single-family net revenue declined 1% to $5.1 billion, while the segment recorded an $846 million benefit for credit losses, compared with a $622 million provision a year earlier.

Single-family new business activity increased to $110 billion from $94 billion a year earlier, driven primarily by higher refinance activity. Freddie Mac financed 306,000 mortgages during the quarter, including loans that helped 97,000 first-time homebuyers purchase homes.

Refinance borrowers totaled 106,000, up from 58,000 in the second quarter of 2025, while purchase borrowers declined to 200,000 from 206,000. Freddie Mac’s single-family mortgage portfolio grew 1% year over year to $3.172 trillion.

Delinquency rate unchanged

The serious delinquency rate in the single-family portfolio was 0.60%, up from 0.55% a year earlier and unchanged from the first quarter.

Freddie Mac’s multifamily business reported net income of $561 million, up 90% from $295 million a year earlier. Net revenue increased 14% to $891 million, while net interest income rose 40% to $561 million.

The multifamily segment generated $18 billion in new business activity, up from $12 billion a year earlier, and financed 133,000 rental units. Of eligible units financed during the quarter, 91% were affordable to low- and moderate-income families, according to the company.

Multifamily’s mortgage portfolio increased 8% year over year to $505 billion. Its delinquency rate rose to 0.51%, compared with 0.47% a year earlier and 0.44% at the end of 2025.

“Freddie Mac is working to increase access to housing and help more families achieve the dream of homeownership,” CEO Kenny Smith said in a statement. “In the second quarter, together with lenders of all sizes, we helped nearly 439,000 households buy, refinance or rent a home, including 97,000 first-time homebuyers.”