Freddie MacOTC: FMCC

Federal Home Loan Mortgage: Earnings Presentation, 10/29/26

· Issued by Freddie Mac

Summary by 6ix AI

Freddie Mac, which provides liquidity to the mortgage market, reported net income of $3.2 billion for the third quarter of 2026 (quarter ended September 30, 2026). That was up 17% from $2.8 billion a year earlier, on net revenues of $6.8 billion, up 19% from $5.7 billion.

Key details

  • Net income was $3,235 million, down 16% from $3,838 million in the second quarter of 2026. There was a provision for credit losses of $800 million, compared with a benefit of $880 million in the second quarter of 2026.
  • Single-Family net income was $2.7 billion, up 16% year-over-year, with new business activity of $98 billion. Its $0.7 billion provision for credit losses was primarily due to an addition to reserves for credit losses, driven by an increase in projected future mortgage interest rates, as well as new acquisitions.
  • Multifamily net income was $521 million, up 22% year-over-year, with net revenues up 17% mainly driven by higher guarantee net interest income. Its $0.1 billion provision for credit losses was primarily due to credit deterioration.
  • Net worth was $81 billion at September 30, 2026, up 20% year-over-year. After subtracting $73 billion of senior preferred stock and $4 billion of regulatory adjustments and deductions, adjusted total regulatory capital was $4 billion, compared with a deficit of $41 billion in the fourth quarter of 2022. Total capital required was $162 billion, including $60 billion of buffers.
  • In the third quarter of 2026, Freddie Mac provided $114 billion of liquidity to the mortgage market and helped 420,000 households buy, refinance or rent a home.

6ix AI wrote this summary from the release below and checked it against the release.

On 6ix: 6ix.com/news/federal-home-loan-mortgage-earnings-presentation-102926

Watch Freddie Mac explain itFreddie Mac (OTC:FMCC) Q3 2026 Earnings Call · Replay · Oct 29, 2026 · From 0:00 · Quarterly Results and Housing Support

‌Third Quarter 2026 Earnings Presentation

October 29, 2026

‌3Q 2026 Key Highlights

Financial Performance

Net Revenues

$6.8B

Up 19% from $5.7B in 3Q25

Net Income

$3.2B

Up 17% from $2.8B in 3Q25

Net Worth

$81B

Up from $70B as of 4Q25

Mission Performance

3Q26

$114B Liquidity provided to the mortgage market

420K Households helped to buy, refinance, or rent a home

56% Affordable to low-to-moderate income families (Single-Family) 91% Affordable to low-to-moderate income families (Multifamily) 51% First-time homebuyers (Single-Family)

‌3Q 2026 Financial Summary

$ Millions

3Q26

2Q26

Var ($)

Var (%)

3Q25

Var ($)

Var (%)

Net revenues

$6,810

$5,991

$819

14 %

$5,739

$1,071

19 %

(Provision) benefit for credit losses

(800)

880

(1,680)

NM

(175)

(625)

(357)

Key Metrics

$5.9B

($5.5B in 3Q25)

Net Interest Income

0.67%

(0.64% in 3Q25)

Net Interest Yield

$3.7T

($3.6T in 3Q25)

Mortgage Portfolio

Non-interest expense (1,994)

(2,097)

103

5

(2,116)

122

6

Income before income 4,016

4,774

(758)

(16)

3,448

568

16

tax expense

0.22%

(0.24% in 3Q25)

Allowance for Credit Losses / Total Loans Outstanding

Income tax expense (781) (936) 155 17 (675) (106) (16)

Net income $3,235 $3,838 ($603) (16)% $2,773 $462 17 %

$117B

($112B in 3Q25)

Required CET1 Capital

Total assets ($B) $3,532 $3,518 $14 - % $3,468 $64 2 %

Net worth ($B) 81.0 77.8 3.2 4 67.6 13.4 20

‌Single-Family Highlights

New Business Activity (UPB in $B)

$ Millions 3Q26 2Q26 Var ($) Var (%) 3Q25 Var ($) Var (%)

Net revenues $5,831 $5,100 $731 14 % $4,904 $927 19 %

54 54 54 54 53

(Provision) benefit for credit losses

(685) 846 (1,531) NM (118) (567) (481)

$99 $118 $103 $110 $98

Non-interest expense (1,777) (1,870) 93 5 (1,868) 91 5

Income tax expense (655) (799) 144 18 (571) (84) (15)

Net income $2,714 $3,277 ($563) (17)% $2,347 $367 16 %

$18

$43

$36

$60

$80

$74

$77

$81

$18

$41

3Q25 4Q25 1Q26 2Q26 3Q26

Home purchase

Refinance

Average estimated guarantee fee rate (bps)

  • Net revenues increased 19% year-over-year

  • The provision for credit losses was $0.7 billion, primarily due to a credit reserve build driven by an increase in projected future mortgage interest rates, as well as new acquisitions

  • Net income of $2.7 billion, up 16% year-over-year

  • New business activity of $98 billion

Mortgage Portfolio (UPB in $B)

50

50

50

50

50

$3,141

$3,156

$3,158

$3,172

$3,186

3Q25

4Q25

1Q26

2Q26

3Q26

Mortgage portfolio

Average estimated guarantee fee rate (bps)

‌Credit Characteristics of Single-Family New Business Activity

Weighted Average Original LTV Ratio

77% 76% 75% 76% 77%

3Q25 4Q25 1Q26 2Q26 3Q26

Weighted Average Original Credit Score

756 758 758 761 759

3Q25 4Q25 1Q26 2Q26 3Q26

Weighted Average Original DTI Ratio

38% 37% 37% 37% 38%

3Q25 4Q25 1Q26 2Q26 3Q26

‌Multifamily Highlights

New Business Activity (UPB in $B)

$ Millions 3Q26 2Q26 Var ($) Var (%) 3Q25 Var ($) Var (%)

Net revenues $979 $891 $88 10 % $835 $144 17 %

$29

$25

$18

$16

$13

(Provision) benefit for

credit losses

(115) 34 (149) NM (57) (58) (102)

Non-interest expense (217) (227) 10 4 (248) 31 13

Income tax expense (126) (137) 11 8 (104) (22) (21)

Net income $521 $561 ($40) (7)% $426 $95 22 %

3Q25 4Q25 1Q26 2Q26 3Q26

  • Net revenues up 17% year-over-year mainly driven by higher guarantee net interest income

  • The provision for credit losses was $0.1 billion, primarily due to credit deterioration

  • Net income up 22% year-over-year

  • New business activity decreased year-over-year, primarily driven by the higher mortgage interest rate environment

Mortgage Portfolio (UPB in $B)

54

56 58 59 60

$480

$498

$496

$510

$505

3Q25 4Q25 1Q26 2Q26 3Q26

Mortgage portfolio Average guarantee fee rate charged (bps)

‌Net Worth and Regulatory Capital

Growth in Net Worth ($B)

Progress Towards Regulatory Capital

$107

$114

$117

$90

$96

Requirements ($B)

$117B

Total CET1 Capital Requirement

$57

$60

$45

$90B

Total CET1 Capital Requirement

$4

$40

$50

$32

$122

$162

$37

December 31,

2022

$48

December 31,

2023

$60

December 31,

2024

$70

December 31,

2025

$81

September 30,

2026

($41)

4Q22 3Q26

Net worth Required CET1 capital

Available capital (deficit) CET1 minimum capital requirement

  • Net worth of $81 billion at September 30, 2026, up

20% year-over-year

  • $162 billion of total capital required at September 30,

2026, including $60 billion of buffers

Applicable buffer Additional Tier 1 & 2

$ Billions

4Q22

3Q26

Net worth

$37

$81

Less: Senior preferred stock

$73

$73

Less: Regulatory capital position adjustments and deductions

$5

$4

Adjusted total regulatory capital (deficit)

($41)

$4

‌Forward-Looking Statements and Additional Information

Forward-looking statements

This presentation contains forward-looking statements using terms such as will, expect, forecast, and others that do not refer solely to past periods. These may include statements pertaining to our conservatorship, our current expectations and objectives for our Single-Family and Multifamily segments, our efforts to assist the housing market, liquidity and capital management, and the effects of economic and market conditions and trends on our business, results of operations, and financial condition, including changes in house prices and house price forecasts, our market coverage, the effect of legislative and regulatory developments and new accounting guidance, the credit quality of loans the company owns or guarantees, the costs and benefits of the company's credit risk transfer (CRT) transactions, the impact of banking crises or failures, and the effects of wars, terrorist incidents, public policy and political developments, cybersecurity incidents, natural disasters or catastrophic events and actions taken in response thereto. Forward-looking statements involve known and unknown risks and uncertainties beyond our control. Our expectations necessarily involve assumptions, judgments, and estimates. Various factors could cause actual results to differ materially from these expectations, including changes in economic and market conditions, liquidity, mortgage spreads, credit outlook, actions by the U.S. government (including FHFA, Treasury, the executive branch, and Congress) and state and local governments, changes in the fiscal and monetary policies of the Federal Reserve, the impact of any downgrade in our credit ratings or those of the

U.S. government, and the impacts of legislation or regulations and new or amended accounting guidance. We discuss these assumptions, judgments, estimates and factors in our Annual Report on Form 10-K for the year ended December 31, 2025 and our subsequent SEC filings available on the Investor Relations page of the company's website at https://www.freddiemac.com and the SEC's website at https://www.sec.gov. We have no obligation to update forward-looking statements to reflect subsequent events or circumstances.

Additional Information

For more information, including information related to Freddie Mac's financial results, conservatorship, and related matters, see the company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2026, Annual Report on Form 10-K for 2025, and Third Quarter 2026 Press Release and Third Quarter 2026 Financial Supplement. These documents are available on the Investor Relations page of the company's website at https://www.FreddieMac.com.

Additional information about these matters and Freddie Mac and its business is also set forth in the company's other filings with the SEC, which are available on the Investor Relations page of the company's website at https://www.FreddieMac.com and the SEC's website at https://www.sec.gov. Freddie Mac encourages all investors and interested members of the public to review these materials for a more complete understanding of the company's financial results and related disclosures.

Freddie Mac on 6ix

In the deck

Earlier from Freddie Mac

Later from Freddie Mac

All Freddie Mac news releases