[10-Q] FEDERAL HOME LOAN MORTGAGE CORP Quarterly Earnings Report
Filing Impact
Filing Sentiment
Form Type
10-Q
Rhea-AI Filing Summary
Freddie Mac reported third‑quarter results reflecting stable core earnings with softer non‑interest performance. Net income was $2.8 billion, down 11% year over year, as a credit reserve build replaced last year’s release. Net revenues were $5.7 billion, down 2%, with higher net interest income offset by lower non‑interest income.
Net interest income rose 9% to $5.5 billion, driven by continued mortgage portfolio growth and lower hedge‑related expense. Non‑interest income fell 66% to $284 million on investment losses and less favorable fair value changes. Provision for credit losses was $175 million versus a $191 million benefit a year ago, reflecting new single‑family acquisitions and updated house‑price forecasts.
Net worth reached $67.6 billion as of September 30, 2025. The senior preferred stock liquidation preference was $137.5 billion and is scheduled to increase to $140.2 billion on December 31, 2025 based on the quarterly net worth increase. Freddie Mac provided $124 billion in market liquidity in 3Q 2025, supporting approximately 483,000 home purchases, refinancings, and rental units. The mortgage portfolio was $3.6 trillion (Single‑Family $3.1 trillion; Multifamily $480 billion). Credit enhancement coverage stood at 62% of Single‑Family and 90% of Multifamily.
Freddie Mac ha riportato i dati del terzo trimestre con utili di base stabili, ma una performance non legata agli interessi meno robusta. L'utile netto è stato di 2,8 miliardi di dollari, in calo dell'11% rispetto all'anno precedente, poiché un incremento della riserva per crediti ha sostituito il rilascio dello scorso anno. I ricavi netti sono stati di 5,7 miliardi di dollari, in calo del 2%, con un aumento dei proventi netti da interessi che è stato compensato da una minore redditività dei redditi non legati agli interessi.
I proventi netti da interessi sono saliti del 9% a 5,5 miliardi di dollari, trainati dalla continua crescita del portafoglio mutui e da costi di copertura inferiori. I redditi non legati agli interessi sono scesi del 66% a 284 milioni di dollari a causa di perdite su investimenti e cambiamenti di fair value meno favorevoli. La provisione per perdite su crediti è stato di 175 milioni contro un beneficio di 191 milioni di dollari dell'anno precedente, riflettendo nuove acquisizioni di case unifamiliari e previsioni aggiornate sui prezzi delle abitazioni.
La patrimoniale netta ha raggiunto 67,6 miliardi di dollari al 30 settembre 2025. La preferenza azionaria senior per la liquidazione era di 137,5 miliardi di dollari e dovrebbe aumentare a 140,2 miliardi entro il 31 dicembre 2025 in base all'incremento trimestrale del patrimonio netto. Freddie Mac ha fornito 124 miliardi di dollari di liquidità di mercato nel 3Q 2025, sostenendo circa 483.000 acquisti di case, rifinanziamenti e unità in affitto. Il portafoglio mutui ammontava a 3,6 trilioni di dollari (Single-Family 3,1 trilioni; Multifamily 480 miliardi). La copertura di miglioramento del credito era del 62% per Single-Family e del 90% per Multifamily.
Freddie Mac reportó resultados del tercer trimestre que reflejan ingresos centrales estables, con un rendimiento no relacionado con intereses más débil. El ingreso neto fue de 2,8 mil millones de dólares, un 11% menos interanual, ya que un incremento de la reserva de crédito reemplazó la liberación del año pasado. Los ingresos netos fueron de 5,7 mil millones de dólares, un 2% menos, con mayores ingresos netos por intereses compensados por menores ingresos no provenientes de intereses.
Los ingresos netos por intereses aumentaron un 9% hasta los 5,5 mil millones de dólares, impulsados por el continuo crecimiento de la cartera hipotecaria y menores gastos relacionados con coberturas. Los ingresos no derivados de intereses cayeron un 66% a 284 millones de dólares debido a pérdidas de inversiones y cambios de valor razonable menos favorables. La provisión para pérdidas crediticias fue de 175 millones frente a un beneficio de 191 millones del año anterior, en reflejo de nuevas adquisiciones de viviendas unifamiliares y proyecciones de precios de viviendas actualizadas.
El patrimonio neto alcanzó los 67,6 mil millones de dólares al 30 de septiembre de 2025. La preferencia de liquidación de acciones preferentes senior era de 137,5 mil millones de dólares y está prevista que aumente a 140,2 mil millones para el 31 de diciembre de 2025 basándose en el incremento del patrimonio neto trimestral. Freddie Mac proporcionó 124 mil millones de dólares en liquidez de mercado en el 3T 2025, apoyando aproximadamente 483.000 compras de vivienda, refinanciamientos y unidades de alquiler. La cartera hipotecaria era de 3,6 billones de dólares (Single-Family 3,1 billones; Multifamily 480 mil millones). La cobertura de mejora crediticia se situó en el 62% de Single-Family y el 90% de Multifamily.
Freddie Mac은 핵심 수익은 안정적이었고 비이자 수익은 다소 약화된 3분기 실적을 발표했습니다. 순이익은 28억 달러로 전년 동기 대비 11% 감소했으며, 금리 관련 충당금 증가가 작년의 해제분을 대체했습니다. 순매출은 57억 달러로 2% 감소하였으며, 더 높은 순이자 이익은 더 낮은 비이자 이익으로 상쇄되었습니다.
순이자 이익은 9% 증가하여 55억 달러에 도달했고, 모기지 포트폴리오의 지속적 성장과 헤지 관련 비용 감소가 원동력이었습니다. 비이자 수익은 투자 손실과 유가 평가의 불리한 변경으로 66% 감소한 2.84억 달러였습니다. 신용손실 대비 적립은 작년 같은 기간의 1.91억 달러 이익에서 1.75억 달러로 전환되었으며, 신규 단독주택 인수 및 주택 가격 전망 업데이트를 반영합니다.
자본 총액은 2025년 9월 30일 기준 676억 달러에 도달했습니다. 상류 우선주 청산 선호도는 1,375억 달러였고 분기별 순자산 증가를 반영하여 2025년 12월 31일에는 1,402억 달러로 증가할 예정입니다. Freddie Mac은 3분기 2025년에 시장 유동성으로 1,240억 달러를 제공하여 약 483,000건의 주택 매매, 재융자 및 임대 주택을 지원했습니다. 모기지 포트폴리오는 3.6조 달러였습니다(Single-Family 3.1조; Multifamily 4800억). 신용 향상 커버리지는 Single-Family의 62%, Multifamily의 90%를 차지했습니다.
Freddie Mac a présenté des résultats du troisième trimestre reflétant des revenus de base stables, avec une performance non liée aux intérêts plus faible. Le bénéfice net s’est élevé à 2,8 milliards de dollars, en baisse de 11% sur un an, en raison d’un renforcement des provisions pour pertes sur crédits qui a remplacé le dénouement de l’année dernière. Les revenus nets ont été de 5,7 milliards de dollars, en baisse de 2%, avec une hausse des revenus nets d’intérêts compensée par une diminution des revenus non liés aux intérêts.
Le revenu net d’intérêts a augmenté de 9% pour atteindre 5,5 milliards de dollars, porté par la croissance soutenue du portefeuille hypothécaire et par des frais de couverture plus bas. Les revenus non liés aux intérêts ont chuté de 66% à 284 millions de dollars en raison de pertes sur investissements et de changements de juste valeur moins favorables. La provision pour pertes de crédits s’est élevée à 175 millions alors qu’elle avait donné un bénéfice de 191 millions l’année précédente, reflétant de nouvelles acquisitions de logements unifamiliaux et des prévisions actualisées des prix des maisons.
La valeur nette a atteint 67,6 milliards de dollars au 30 septembre 2025. La préférence de liquidation des actions privilégiées de rang supérieur était de 137,5 milliards de dollars et devrait passer à 140,2 milliards d’ici le 31 décembre 2025 en raison de l’augmentation trimestrielle de la valeur nette. Freddie Mac a fourni 124 milliards de dollars de liquidité de marché au 3e trimestre 2025, soutenant environ 483 000 achats de maisons, refinancements et unités locatives. Le portefeuille hypothécaire était de 3,6 trillions de dollars (Single-Family 3,1 trillions; Multifamily 480 milliards). La couverture d’amélioration du crédit était de 62% pour le Single-Family et de 90% pour le Multifamily.
Freddie Mac meldete Ergebnisse des dritten Quartals, die stabile Kerngewinne bei einer schwächeren nichtzinsbezogenen Performance widerspiegeln. Der Nettogewinn betrug 2,8 Milliarden USD, gegenüber dem Vorjahr um 11% gesunken, da eine Aufbau von Kreditreserven die Freigabe des Vorjahres ersetzt hat. Die Nettoumsätze betrugen 5,7 Milliarden USD, ein Rückgang von 2%, wobei höhere Nettozinsenerträge durch geringere nicht-zinsbezogene Einnahmen kompensiert wurden.
Die Nettozinserträge stiegen um 9% auf 5,5 Milliarden USD, getrieben durch weiteres Wachstum des Hypothekarkontos und geringere Absicherungsaufwendungen. Die nicht-zinsbezogenen Einnahmen fielen um 66% auf 284 Millionen USD aufgrund von Investitionsverlusten und ungünstigeren fair-value-Änderungen. Die Wertberichtigung auf Kredite betrug 175 Millionen USD gegenüber einem Nutzen von 191 Millionen USD im Vorjahr, was neue Einfamilienhausakquisitionen und aktualisierte Preisprognosen für Häuser widerspiegelt.
Das Eigenkapital betrug zum 30. September 2025 67,6 Milliarden USD. Die Liquidationspräferenz für Senior-Preferred-Aktien betrug 137,5 Milliarden USD und soll zum 31. Dezember 2025 aufgrund des quartalsweisen Anstiegs des Eigenkapitals auf 140,2 Milliarden USD ansteigen. Freddie Mac stellte im 3Q 2025 124 Milliarden USD an Marktl Liquidität bereit und unterstützte etwa 483.000 Hauskäufe, Refinanzierungen und Mietobjekte. Das Hypothekportfolio betrug 3,6 Billionen USD (Single-Family 3,1 Billionen; Multifamily 480 Milliarden). Die Kreditverbesserung deckte 62% des Single-Family und 90% des Multifamily ab.
فريدي ماك أبلغت عن نتائج الربع الثالث مع أرباح أساسية مستقرة، بينما أدت أداء الإيرادات غير المرتبطة بالفوائد إلى أداء أضعف. بلغ صافي الدخل 2.8 مليار دولار، بانخفاض قدره 11% على أساس سنوي، حيث حل بناء مخصصات الائتمان محل الإفراج الذي حدث في العام الماضي. بلغت صافي الإيرادات 5.7 مليار دولار، بانخفاض قدره 2%، مع ارتفاع الدخل الصافي من الفوائد مع تعويض انخفاض الدخل غير المرتبط بالفوائد.
ارتفع دخل الفوائد الصافي بنسبة 9% ليصل إلى 5.5 مليار دولار، مدفوعاً بالنمو المستمر لمحفظة الرهن العقاري وتكاليف التحوط الأقل. انخفض الدخل غير المرتبط بالفوائد بنسبة 66% ليصل إلى 284 مليون دولار نتيجة لخسائر الاستثمار وتغيّرات القيمة العادلة الأقل ملاءمة. كانت المخصصات لخسائر الائتمان 175 مليون دولار مقابل فائدة قدرها 191 مليون دولار في العام الماضي، مما يعكس عمليات استحواذ جديدة على منازل الأسرة الواحدة وتحديثات لتوقعات أسعار المنازل.
بلغ صافي القيمة للحقوق الملكية 67.6 مليار دولار حتى 30 سبتمبر 2025. كانت الأولوية لتصفية الأسهم الممتازة العليا 137.5 مليار دولار ومن المقرر أن ترتفع إلى 140.2 مليار دولار في 31 ديسمبر 2025 بناءً على الزيادة الربعية في صافي القيمة. قدمت فريدي ماك 124 مليار دولار من السيولة في السوق في الربع الثالث 2025، داعمة نحو 483,000 عملية شراء منزل وإعادة تمويل ووحدات للإيجار تقريباً. كان محفظ الرهن العقاري 3.6 تريليون دولار (المنازل الأسريّة المفردة 3.1 تريليون؛ متعددة الأسر 480 مليار). بلغت تغطية تعزيز الائتمان 62% للمنازل الأسرة المفردة و90% للمنازل متعددة الأسر.
Positive
- None.
Negative
- None.
Insights
Core NII strength offset by investment losses and reserve build.
Freddie Mac grew net interest income to
Credit provisions shifted to a
Capital and mission metrics remain notable: net worth rose to
Freddie Mac ha riportato i dati del terzo trimestre con utili di base stabili, ma una performance non legata agli interessi meno robusta. L'utile netto è stato di 2,8 miliardi di dollari, in calo dell'11% rispetto all'anno precedente, poiché un incremento della riserva per crediti ha sostituito il rilascio dello scorso anno. I ricavi netti sono stati di 5,7 miliardi di dollari, in calo del 2%, con un aumento dei proventi netti da interessi che è stato compensato da una minore redditività dei redditi non legati agli interessi.
I proventi netti da interessi sono saliti del 9% a 5,5 miliardi di dollari, trainati dalla continua crescita del portafoglio mutui e da costi di copertura inferiori. I redditi non legati agli interessi sono scesi del 66% a 284 milioni di dollari a causa di perdite su investimenti e cambiamenti di fair value meno favorevoli. La provisione per perdite su crediti è stato di 175 milioni contro un beneficio di 191 milioni di dollari dell'anno precedente, riflettendo nuove acquisizioni di case unifamiliari e previsioni aggiornate sui prezzi delle abitazioni.
La patrimoniale netta ha raggiunto 67,6 miliardi di dollari al 30 settembre 2025. La preferenza azionaria senior per la liquidazione era di 137,5 miliardi di dollari e dovrebbe aumentare a 140,2 miliardi entro il 31 dicembre 2025 in base all'incremento trimestrale del patrimonio netto. Freddie Mac ha fornito 124 miliardi di dollari di liquidità di mercato nel 3Q 2025, sostenendo circa 483.000 acquisti di case, rifinanziamenti e unità in affitto. Il portafoglio mutui ammontava a 3,6 trilioni di dollari (Single-Family 3,1 trilioni; Multifamily 480 miliardi). La copertura di miglioramento del credito era del 62% per Single-Family e del 90% per Multifamily.
Freddie Mac reportó resultados del tercer trimestre que reflejan ingresos centrales estables, con un rendimiento no relacionado con intereses más débil. El ingreso neto fue de 2,8 mil millones de dólares, un 11% menos interanual, ya que un incremento de la reserva de crédito reemplazó la liberación del año pasado. Los ingresos netos fueron de 5,7 mil millones de dólares, un 2% menos, con mayores ingresos netos por intereses compensados por menores ingresos no provenientes de intereses.
Los ingresos netos por intereses aumentaron un 9% hasta los 5,5 mil millones de dólares, impulsados por el continuo crecimiento de la cartera hipotecaria y menores gastos relacionados con coberturas. Los ingresos no derivados de intereses cayeron un 66% a 284 millones de dólares debido a pérdidas de inversiones y cambios de valor razonable menos favorables. La provisión para pérdidas crediticias fue de 175 millones frente a un beneficio de 191 millones del año anterior, en reflejo de nuevas adquisiciones de viviendas unifamiliares y proyecciones de precios de viviendas actualizadas.
El patrimonio neto alcanzó los 67,6 mil millones de dólares al 30 de septiembre de 2025. La preferencia de liquidación de acciones preferentes senior era de 137,5 mil millones de dólares y está prevista que aumente a 140,2 mil millones para el 31 de diciembre de 2025 basándose en el incremento del patrimonio neto trimestral. Freddie Mac proporcionó 124 mil millones de dólares en liquidez de mercado en el 3T 2025, apoyando aproximadamente 483.000 compras de vivienda, refinanciamientos y unidades de alquiler. La cartera hipotecaria era de 3,6 billones de dólares (Single-Family 3,1 billones; Multifamily 480 mil millones). La cobertura de mejora crediticia se situó en el 62% de Single-Family y el 90% de Multifamily.
Freddie Mac은 핵심 수익은 안정적이었고 비이자 수익은 다소 약화된 3분기 실적을 발표했습니다. 순이익은 28억 달러로 전년 동기 대비 11% 감소했으며, 금리 관련 충당금 증가가 작년의 해제분을 대체했습니다. 순매출은 57억 달러로 2% 감소하였으며, 더 높은 순이자 이익은 더 낮은 비이자 이익으로 상쇄되었습니다.
순이자 이익은 9% 증가하여 55억 달러에 도달했고, 모기지 포트폴리오의 지속적 성장과 헤지 관련 비용 감소가 원동력이었습니다. 비이자 수익은 투자 손실과 유가 평가의 불리한 변경으로 66% 감소한 2.84억 달러였습니다. 신용손실 대비 적립은 작년 같은 기간의 1.91억 달러 이익에서 1.75억 달러로 전환되었으며, 신규 단독주택 인수 및 주택 가격 전망 업데이트를 반영합니다.
자본 총액은 2025년 9월 30일 기준 676억 달러에 도달했습니다. 상류 우선주 청산 선호도는 1,375억 달러였고 분기별 순자산 증가를 반영하여 2025년 12월 31일에는 1,402억 달러로 증가할 예정입니다. Freddie Mac은 3분기 2025년에 시장 유동성으로 1,240억 달러를 제공하여 약 483,000건의 주택 매매, 재융자 및 임대 주택을 지원했습니다. 모기지 포트폴리오는 3.6조 달러였습니다(Single-Family 3.1조; Multifamily 4800억). 신용 향상 커버리지는 Single-Family의 62%, Multifamily의 90%를 차지했습니다.
Freddie Mac a présenté des résultats du troisième trimestre reflétant des revenus de base stables, avec une performance non liée aux intérêts plus faible. Le bénéfice net s’est élevé à 2,8 milliards de dollars, en baisse de 11% sur un an, en raison d’un renforcement des provisions pour pertes sur crédits qui a remplacé le dénouement de l’année dernière. Les revenus nets ont été de 5,7 milliards de dollars, en baisse de 2%, avec une hausse des revenus nets d’intérêts compensée par une diminution des revenus non liés aux intérêts.
Le revenu net d’intérêts a augmenté de 9% pour atteindre 5,5 milliards de dollars, porté par la croissance soutenue du portefeuille hypothécaire et par des frais de couverture plus bas. Les revenus non liés aux intérêts ont chuté de 66% à 284 millions de dollars en raison de pertes sur investissements et de changements de juste valeur moins favorables. La provision pour pertes de crédits s’est élevée à 175 millions alors qu’elle avait donné un bénéfice de 191 millions l’année précédente, reflétant de nouvelles acquisitions de logements unifamiliaux et des prévisions actualisées des prix des maisons.
La valeur nette a atteint 67,6 milliards de dollars au 30 septembre 2025. La préférence de liquidation des actions privilégiées de rang supérieur était de 137,5 milliards de dollars et devrait passer à 140,2 milliards d’ici le 31 décembre 2025 en raison de l’augmentation trimestrielle de la valeur nette. Freddie Mac a fourni 124 milliards de dollars de liquidité de marché au 3e trimestre 2025, soutenant environ 483 000 achats de maisons, refinancements et unités locatives. Le portefeuille hypothécaire était de 3,6 trillions de dollars (Single-Family 3,1 trillions; Multifamily 480 milliards). La couverture d’amélioration du crédit était de 62% pour le Single-Family et de 90% pour le Multifamily.
Freddie Mac meldete Ergebnisse des dritten Quartals, die stabile Kerngewinne bei einer schwächeren nichtzinsbezogenen Performance widerspiegeln. Der Nettogewinn betrug 2,8 Milliarden USD, gegenüber dem Vorjahr um 11% gesunken, da eine Aufbau von Kreditreserven die Freigabe des Vorjahres ersetzt hat. Die Nettoumsätze betrugen 5,7 Milliarden USD, ein Rückgang von 2%, wobei höhere Nettozinsenerträge durch geringere nicht-zinsbezogene Einnahmen kompensiert wurden.
Die Nettozinserträge stiegen um 9% auf 5,5 Milliarden USD, getrieben durch weiteres Wachstum des Hypothekarkontos und geringere Absicherungsaufwendungen. Die nicht-zinsbezogenen Einnahmen fielen um 66% auf 284 Millionen USD aufgrund von Investitionsverlusten und ungünstigeren fair-value-Änderungen. Die Wertberichtigung auf Kredite betrug 175 Millionen USD gegenüber einem Nutzen von 191 Millionen USD im Vorjahr, was neue Einfamilienhausakquisitionen und aktualisierte Preisprognosen für Häuser widerspiegelt.
Das Eigenkapital betrug zum 30. September 2025 67,6 Milliarden USD. Die Liquidationspräferenz für Senior-Preferred-Aktien betrug 137,5 Milliarden USD und soll zum 31. Dezember 2025 aufgrund des quartalsweisen Anstiegs des Eigenkapitals auf 140,2 Milliarden USD ansteigen. Freddie Mac stellte im 3Q 2025 124 Milliarden USD an Marktl Liquidität bereit und unterstützte etwa 483.000 Hauskäufe, Refinanzierungen und Mietobjekte. Das Hypothekportfolio betrug 3,6 Billionen USD (Single-Family 3,1 Billionen; Multifamily 480 Milliarden). Die Kreditverbesserung deckte 62% des Single-Family und 90% des Multifamily ab.
فريدي ماك أبلغت عن نتائج الربع الثالث مع أرباح أساسية مستقرة، بينما أدت أداء الإيرادات غير المرتبطة بالفوائد إلى أداء أضعف. بلغ صافي الدخل 2.8 مليار دولار، بانخفاض قدره 11% على أساس سنوي، حيث حل بناء مخصصات الائتمان محل الإفراج الذي حدث في العام الماضي. بلغت صافي الإيرادات 5.7 مليار دولار، بانخفاض قدره 2%، مع ارتفاع الدخل الصافي من الفوائد مع تعويض انخفاض الدخل غير المرتبط بالفوائد.
ارتفع دخل الفوائد الصافي بنسبة 9% ليصل إلى 5.5 مليار دولار، مدفوعاً بالنمو المستمر لمحفظة الرهن العقاري وتكاليف التحوط الأقل. انخفض الدخل غير المرتبط بالفوائد بنسبة 66% ليصل إلى 284 مليون دولار نتيجة لخسائر الاستثمار وتغيّرات القيمة العادلة الأقل ملاءمة. كانت المخصصات لخسائر الائتمان 175 مليون دولار مقابل فائدة قدرها 191 مليون دولار في العام الماضي، مما يعكس عمليات استحواذ جديدة على منازل الأسرة الواحدة وتحديثات لتوقعات أسعار المنازل.
بلغ صافي القيمة للحقوق الملكية 67.6 مليار دولار حتى 30 سبتمبر 2025. كانت الأولوية لتصفية الأسهم الممتازة العليا 137.5 مليار دولار ومن المقرر أن ترتفع إلى 140.2 مليار دولار في 31 ديسمبر 2025 بناءً على الزيادة الربعية في صافي القيمة. قدمت فريدي ماك 124 مليار دولار من السيولة في السوق في الربع الثالث 2025، داعمة نحو 483,000 عملية شراء منزل وإعادة تمويل ووحدات للإيجار تقريباً. كان محفظ الرهن العقاري 3.6 تريليون دولار (المنازل الأسريّة المفردة 3.1 تريليون؛ متعددة الأسر 480 مليار). بلغت تغطية تعزيز الائتمان 62% للمنازل الأسرة المفردة و90% للمنازل متعددة الأسر.
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. | |||||
For the quarterly period ended September 30, 2025
or
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. | |||||
For the transition period from to
Commission File Number: 001-34139
(Exact name of registrant as specified in its charter)
| Federally chartered | ||||||||||||||||||||||||||||||||||||||||||||
| corporation | ||||||||||||||||||||||||||||||||||||||||||||
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | (Address of principal executive offices) | (Zip Code) | (Registrant's telephone number, including area code) | ||||||||||||||||||||||||||||||||||||||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
| None | N/A | N/A | ||||||
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
| ☒ | Accelerated filer | ☐ | ||||||||||||||||||
| Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
| Emerging growth company | ||||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of October 7, 2025, there were 650,059,553 shares of the registrant's common stock outstanding.
| Table of Contents | ||
Table of Contents
| Page | |||||
| MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 1 | ||||
n Introduction | 1 | ||||
n Housing and Mortgage Market Conditions | 4 | ||||
n Consolidated Results of Operations | 6 | ||||
n Consolidated Balance Sheets Analysis | 10 | ||||
n Our Portfolios | 11 | ||||
n Our Business Segments | 13 | ||||
n Risk Management | 20 | ||||
l Credit Risk | 20 | ||||
l Market Risk | 29 | ||||
n Liquidity and Capital Resources | 33 | ||||
n Critical Accounting Estimates | 40 | ||||
n Regulation and Supervision | 41 | ||||
n Forward-Looking Statements | 42 | ||||
| FINANCIAL STATEMENTS | 44 | ||||
| OTHER INFORMATION | 92 | ||||
| CONTROLS AND PROCEDURES | 94 | ||||
| EXHIBIT INDEX | 96 | ||||
| SIGNATURES | 97 | ||||
| FORM 10-Q INDEX | 98 | ||||
| Freddie Mac 3Q 2025 Form 10-Q | i | |||||||
| Table of Contents | ||
MD&A TABLE INDEX
| Table | Description | Page | ||||||
| 1 | Summary of Consolidated Statements of Income and Comprehensive Income | 6 | ||||||
| 2 | Components of Net Interest Income | 6 | ||||||
| 3 | Analysis of Net Interest Yield | 7 | ||||||
| 4 | Components of Non-Interest Income | 8 | ||||||
| 5 | (Provision) Benefit for Credit Losses | 8 | ||||||
| 6 | Components of Non-Interest Expense | 9 | ||||||
| 7 | Summarized Condensed Consolidated Balance Sheets | 10 | ||||||
| 8 | Mortgage Portfolio | 11 | ||||||
| 9 | Mortgage-Related Investments Portfolio | 12 | ||||||
| 10 | Other Investments Portfolio | 12 | ||||||
| 11 | Single-Family Segment Financial Results | 16 | ||||||
| 12 | Multifamily Segment Financial Results | 19 | ||||||
| 13 | Allowance for Credit Losses Activity | 20 | ||||||
| 14 | Allowance for Credit Losses Ratios | 20 | ||||||
| 15 | Single-Family New Business Activity | 22 | ||||||
| 16 | Single-Family Mortgage Portfolio Newly Acquired Credit Enhancements | 23 | ||||||
| 17 | Single-Family Mortgage Portfolio Credit Enhancement Coverage Outstanding | 23 | ||||||
| 18 | Serious Delinquency Rates for Credit-Enhanced and Non-Credit-Enhanced Loans in Our Single-Family Mortgage Portfolio | 24 | ||||||
| 19 | Credit Quality Characteristics and Serious Delinquency Rates of Our Single-Family Mortgage Portfolio | 25 | ||||||
| 20 | Single-Family Mortgage Portfolio Attribute Combinations | 25 | ||||||
| 21 | Single-Family Completed Loan Workout Activity | 27 | ||||||
| 22 | Multifamily Mortgage Portfolio CRT Issuance | 28 | ||||||
| 23 | Credit-Enhanced and Non-Credit-Enhanced Loans Underlying Our Multifamily Mortgage Portfolio | 29 | ||||||
| 24 | Credit Quality of Our Multifamily Mortgage Portfolio Without Credit Enhancement | 29 | ||||||
| 25 | Duration Gap and PVS-YC and PVS-L Results Assuming Shifts of the Yield Curve | 30 | ||||||
| 26 | Duration Gap and PVS Results | 30 | ||||||
| 27 | Income Sensitivity on Financial Instruments Not Primarily Funded by Debt | 31 | ||||||
| 28 | PVS-L Results Before Derivatives and After Derivatives | 31 | ||||||
| 29 | GAAP Fair Value Sensitivity to Changes in Interest Rates | 32 | ||||||
| 30 | Liquidity Sources | 33 | ||||||
| 31 | Funding Sources | 34 | ||||||
| 32 | Debt of Freddie Mac Activity | 34 | ||||||
| 33 | Maturity and Redemption Dates | 35 | ||||||
| 34 | Debt of Consolidated Trusts Activity | 36 | ||||||
| 35 | Net Worth Activity | 37 | ||||||
| 36 | Regulatory Capital Components | 37 | ||||||
| 37 | Statutory Capital Components | 37 | ||||||
| 38 | Capital Metrics Under ERCF | 38 | ||||||
| 39 | Forecasted House Price Growth Rates | 40 | ||||||
| 40 | 2024 and 2023 Affordable Housing Goals Results | 41 | ||||||
| Freddie Mac 3Q 2025 Form 10-Q | ii | |||||||
| Management's Discussion and Analysis | Introduction | |||||||
Management's Discussion and Analysis of Financial Condition and Results of Operations
This Quarterly Report on Form 10-Q includes forward-looking statements that are based on current expectations and that are subject to significant risks and uncertainties. These forward-looking statements are made as of the date of this Form 10-Q. We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date of this Form 10-Q. Actual results might differ significantly from those described in or implied by such statements due to various factors and uncertainties, including those described in the MD&A - Forward-Looking Statements section of this Form 10-Q and the Introduction and Risk Factors sections of our Annual Report on Form 10-K for the year ended December 31, 2024, or 2024 Annual Report.
Throughout this Form 10-Q, we use certain acronyms and terms that are defined in the Glossary of our 2024 Annual Report.
You should read the following MD&A in conjunction with our 2024 Annual Report and our condensed consolidated financial statements and accompanying notes for the three and nine months ended September 30, 2025 included in Financial Statements.
INTRODUCTION
Freddie Mac is a GSE chartered by Congress in 1970, with a mission to provide liquidity, stability, and affordability to the U.S. housing market. We do this primarily by purchasing single-family and multifamily residential mortgage loans originated by lenders. In most instances, we package these loans into guaranteed mortgage-related securities, which are sold in the global capital markets, and transfer interest-rate and liquidity risks to third-party investors. In addition, we transfer a portion of our mortgage credit risk exposure to third-party investors through our credit risk transfer programs, which include securities- and insurance-based offerings. We also invest in mortgage loans, mortgage-related securities, and other types of assets. We do not originate mortgage loans or lend money directly to mortgage borrowers.
We support the U.S. housing market and the overall economy by enabling America's families to access mortgage loan funding with better terms and by providing consistent liquidity to the single-family and multifamily mortgage markets. We have helped many distressed borrowers keep their homes or avoid foreclosure and have helped many distressed renters avoid eviction.
Since September 2008, we have been operating in conservatorship, with FHFA as our Conservator. The conservatorship and related matters significantly affect our management, business activities, financial condition, and results of operations. Our future is uncertain, and the conservatorship has no specified termination date. We do not know what changes may occur to our business model during or following conservatorship, including whether we will continue to exist. In connection with our entry into conservatorship, we entered into the Purchase Agreement with Treasury under which we issued Treasury both senior preferred stock and a warrant to purchase common stock. The Purchase Agreement with Treasury is critical to keeping us solvent and avoiding the appointment of a receiver by FHFA under statutory mandatory receivership provisions. We believe the support provided by Treasury pursuant to the Purchase Agreement currently enables us to have adequate liquidity to conduct normal business activities. For additional information on the conservatorship and related matters and the Purchase Agreement, see our 2024 Annual Report.
The Administration has made comments regarding a number of potential transactions involving us and Fannie Mae, including a public offering of our equity securities while in conservatorship or outside of conservatorship, and the potential for our exit from conservatorship. We cannot predict whether or when any of these transactions could take place or on what terms. While we continue to monitor regulatory and policy developments, we cannot predict the accuracy, timing, or impact of such statements or any related policy actions.
| Freddie Mac 3Q 2025 Form 10-Q | 1 | |||||||
| Management's Discussion and Analysis | Introduction | |||||||
Business Results
Consolidated Financial Results
Net Revenues and Net Income
(In billions)
Net Worth
(In billions)
Key Drivers:
n Net income was $2.8 billion, down 11% from 3Q 2024, primarily driven by a credit reserve build in 3Q 2025, compared to a credit reserve release in 3Q 2024.
n Net revenues were $5.7 billion, a decrease of 2% year-over-year, primarily driven by lower non-interest income, partially offset by higher net interest income.
n Net worth was $67.6 billion as of September 30, 2025, up from $56.4 billion as of September 30, 2024. The quarterly increases in net worth have been, or will be, added to the aggregate liquidation preference of the senior preferred stock. The liquidation preference of the senior preferred stock was $137.5 billion on September 30, 2025, and will increase to $140.2 billion on December 31, 2025 based on the increase in net worth in 3Q 2025.
Market Liquidity
Market Liquidity
(In thousands)
We support the U.S. housing market by executing our mission to provide liquidity and help maintain credit availability for new and refinanced single-family mortgages as well as for rental housing. We provided $124 billion in liquidity to the mortgage market in 3Q 2025, which enabled the financing of 483,000 home purchases, refinancings, and rental units.
| Freddie Mac 3Q 2025 Form 10-Q | 2 | |||||||
| Management's Discussion and Analysis | Introduction | |||||||
Mortgage Portfolio Balances
Mortgage Portfolio
(UPB in billions)
Key Drivers:
n Our mortgage portfolio increased 2% year-over-year to $3.6 trillion at September 30, 2025, continuing to grow at a moderate pace.
l Our Single-Family mortgage portfolio was $3.1 trillion at September 30, 2025, up 2% year-over-year.
l Our Multifamily mortgage portfolio was $480 billion at September 30, 2025, up 6% year-over-year.
Credit Enhancement Coverage
Single-Family Mortgage Portfolio with Credit Enhancement
(UPB in billions)
Multifamily Mortgage Portfolio with Credit Enhancement
(UPB in billions)
In addition to transferring interest-rate and liquidity risk to third-party investors through our securitization activities, we engage in various types of credit enhancements, such as primary mortgage insurance and CRT transactions, to reduce our credit risk exposure and transfer a portion of the credit risk on certain loans in our mortgage portfolios to third parties. At September 30, 2025, we had partial credit enhancement coverage on 62% of our Single-Family mortgage portfolio and 90% of our Multifamily mortgage portfolio. See MD&A - Risk Management – Credit Risk for additional information on our credit enhancements.
| Freddie Mac 3Q 2025 Form 10-Q | 3 | |||||||
| Management's Discussion and Analysis | Housing and Mortgage Market Conditions | |||||||
HOUSING AND MORTGAGE MARKET CONDITIONS
The charts below present certain housing and mortgage market indicators that can significantly affect our business and financial results. Certain market and macroeconomic prior period data have been updated to reflect revised historical data. For additional information on the effect of these indicators on our business and financial results, see MD&A – Consolidated Results of Operations and MD&A – Our Business Segments.
Single-Family
U.S. Single-Family Home Sales and House Prices
Sources: National Association of Realtors, U.S. Census Bureau, and Freddie Mac House Price Index (seasonally adjusted rate). The 3Q 2025 new homes sales data is not yet available. U.S. Single-Family Mortgage Originations
(UPB in billions)
Source: Freddie Mac and Fannie Mae.
Single-Family Serious Delinquency Rates
Source: Freddie Mac and National Delinquency Survey from the Mortgage Bankers Association. The 3Q 2025 total mortgage market rate is not yet available.
Single-Family Mortgage Debt Outstanding
(UPB in trillions)
Source: Freddie Mac and Federal Reserve Financial Accounts of the United States of America. The 3Q 2025 U.S. single-family mortgage debt outstanding balance is not yet available.
| Freddie Mac 3Q 2025 Form 10-Q | 4 | |||||||
| Management's Discussion and Analysis | Housing and Mortgage Market Conditions | |||||||
Multifamily
Apartment Vacancy Rates and Change in Effective Rents
Source: Moody's Analytics.Multifamily Quarterly Property Price Growth Rate
Source: Real Capital Analytics Commercial Property Price Index (RCA CPPI).
Multifamily Delinquency Rates
Source: Freddie Mac, FDIC Quarterly Banking Profile, Intex Solutions, Inc., and Wells Fargo Securities (Multifamily CMBS conduit market, excluding REOs). The 3Q 2025 delinquency rate for FDIC insured institutions is not yet available.Multifamily Mortgage Debt Outstanding
(UPB in billions)
Source: Freddie Mac and Federal Reserve Financial Accounts of the United States of America. The 3Q 2025 U.S. multifamily mortgage debt outstanding balance is not yet available.| Freddie Mac 3Q 2025 Form 10-Q | 5 | |||||||
| Management's Discussion and Analysis | Consolidated Results of Operations | |||||||
CONSOLIDATED RESULTS OF OPERATIONS
The discussion of our consolidated results of operations should be read in conjunction with our condensed consolidated financial statements and accompanying notes.
The table below compares our summarized consolidated results of operations.
Table 1 - Summary of Consolidated Statements of Income and Comprehensive Income
| Change | Change | |||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | 3Q 2025 | 3Q 2024 | $ | % | YTD 2025 | YTD 2024 | $ | % | ||||||||||||||||||||||||||||||
| Net interest income | $5,455 | $4,999 | $456 | 9 | % | $15,856 | $14,686 | $1,170 | 8 | % | ||||||||||||||||||||||||||||
| Non-interest income | 284 | 839 | (555) | (66) | 1,651 | 2,897 | (1,246) | (43) | ||||||||||||||||||||||||||||||
| Net revenues | 5,739 | 5,838 | (99) | (2) | 17,507 | 17,583 | (76) | — | ||||||||||||||||||||||||||||||
| (Provision) benefit for credit losses | (175) | 191 | (366) | NM | (1,238) | (384) | (854) | (222) | ||||||||||||||||||||||||||||||
| Non-interest expense | (2,116) | (2,183) | 67 | 3 | (6,362) | (6,439) | 77 | 1 | ||||||||||||||||||||||||||||||
| Income before income tax expense | 3,448 | 3,846 | (398) | (10) | 9,907 | 10,760 | (853) | (8) | ||||||||||||||||||||||||||||||
| Income tax expense | (675) | (741) | 66 | 9 | (1,953) | (2,124) | 171 | 8 | ||||||||||||||||||||||||||||||
| Net income | 2,773 | 3,105 | (332) | (11) | 7,954 | 8,636 | (682) | (8) | ||||||||||||||||||||||||||||||
| Other comprehensive income (loss), net of taxes and reclassification adjustments | 16 | 62 | (46) | (74) | 71 | 32 | 39 | 122 | ||||||||||||||||||||||||||||||
| Comprehensive income | $2,789 | $3,167 | ($378) | (12) | % | $8,025 | $8,668 | ($643) | (7) | % | ||||||||||||||||||||||||||||
Net Revenues
Net Interest Income
The table below presents the components of net interest income.
Table 2 - Components of Net Interest Income
| Change | Change | |||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | 3Q 2025 | 3Q 2024 | $ | % | YTD 2025 | YTD 2024 | $ | % | ||||||||||||||||||||||||||||||
| Guarantee net interest income: | ||||||||||||||||||||||||||||||||||||||
| Contractual net interest income | $4,041 | $3,844 | $197 | 5 | % | $12,053 | $11,430 | $623 | 5 | % | ||||||||||||||||||||||||||||
| Deferred fee income | 185 | 188 | (3) | (2) | 557 | 533 | 24 | 5 | ||||||||||||||||||||||||||||||
| Total guarantee net interest income | 4,226 | 4,032 | 194 | 5 | 12,610 | 11,963 | 647 | 5 | ||||||||||||||||||||||||||||||
| Investments net interest income | 1,369 | 1,511 | (142) | (9) | 4,040 | 4,595 | (555) | (12) | ||||||||||||||||||||||||||||||
| Impact on net interest income from hedge accounting | (140) | (544) | 404 | 74 | (794) | (1,872) | 1,078 | 58 | ||||||||||||||||||||||||||||||
| Net interest income | $5,455 | $4,999 | $456 | 9 | % | $15,856 | $14,686 | $1,170 | 8 | % | ||||||||||||||||||||||||||||
Key Drivers:
n Guarantee net interest income
l 3Q 2025 vs. 3Q 2024 and YTD 2025 vs. YTD 2024 - Increased primarily due to continued mortgage portfolio growth in Single-Family and our Multifamily business strategy change that resulted in an increase in the volume of fully guaranteed securitizations.
n Investments net interest income
l 3Q 2025 vs. 3Q 2024 and YTD 2025 vs. YTD 2024 - Decreased primarily due to lower income from securities purchased under agreements to resell driven by a decrease in short-term interest rates.
n Impact on net interest income from hedge accounting
l 3Q 2025 vs. 3Q 2024 and YTD 2025 vs. YTD 2024 - Decreased due to lower expense related to debt in hedge accounting relationships.
| Freddie Mac 3Q 2025 Form 10-Q | 6 | |||||||
| Management's Discussion and Analysis | Consolidated Results of Operations | |||||||
Net Interest Yield Analysis
The table below presents a yield analysis of interest-earning assets and interest-bearing liabilities.
Table 3 - Analysis of Net Interest Yield
| 3Q 2025 | 3Q 2024 | |||||||||||||||||||||||||
| (Dollars in millions) | Average Balance | Interest Income (Expense) | Average Rate | Average Balance | Interest Income (Expense) | Average Rate | ||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||||
| Cash and cash equivalents | $8,639 | $70 | 3.16 | % | $9,848 | $103 | 4.10 | % | ||||||||||||||||||
| Securities purchased under agreements to resell | 101,119 | 1,136 | 4.49 | 109,863 | 1,511 | 5.50 | ||||||||||||||||||||
| Investment securities | 83,769 | 932 | 4.45 | 45,616 | 510 | 4.48 | ||||||||||||||||||||
Mortgage loans(1) | 3,234,083 | 30,802 | 3.81 | 3,133,839 | 27,640 | 3.53 | ||||||||||||||||||||
| Other assets | 3,134 | 35 | 4.36 | 2,624 | 45 | 6.72 | ||||||||||||||||||||
| Total interest-earning assets | 3,430,744 | 32,975 | 3.85 | 3,301,790 | 29,809 | 3.62 | ||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||
| Debt of consolidated trusts | 3,147,760 | (25,072) | (3.19) | 3,064,773 | (22,330) | (2.91) | ||||||||||||||||||||
| Debt of Freddie Mac | 210,180 | (2,448) | (4.65) | 178,148 | (2,480) | (5.56) | ||||||||||||||||||||
| Total interest-bearing liabilities | 3,357,940 | (27,520) | (3.28) | 3,242,921 | (24,810) | (3.06) | ||||||||||||||||||||
| Impact of net non-interest-bearing funding | 72,804 | — | 0.07 | 58,869 | — | 0.05 | ||||||||||||||||||||
| Total funding of interest-earning assets | 3,430,744 | (27,520) | (3.21) | 3,301,790 | (24,810) | (3.01) | ||||||||||||||||||||
| Net interest income/yield | $5,455 | 0.64 | % | $4,999 | 0.61 | % | ||||||||||||||||||||
(1)Loan fees included in net interest income were $0.3 billion during both 3Q 2025 and 3Q 2024.
| YTD 2025 | YTD 2024 | |||||||||||||||||||||||||
| (Dollars in millions) | Average Balance | Interest Income (Expense) | Average Rate | Average Balance | Interest Income (Expense) | Average Rate | ||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||||
| Cash and cash equivalents | $9,121 | $222 | 3.21 | % | $11,119 | $351 | 4.15 | % | ||||||||||||||||||
| Securities purchased under agreements to resell | 106,372 | 3,562 | 4.47 | 112,825 | 4,636 | 5.48 | ||||||||||||||||||||
| Investment securities | 71,506 | 2,397 | 4.47 | 42,936 | 1,464 | 4.55 | ||||||||||||||||||||
Mortgage loans(1) | 3,214,122 | 90,098 | 3.74 | 3,115,870 | 80,690 | 3.45 | ||||||||||||||||||||
| Other assets | 2,712 | 109 | 5.29 | 2,339 | 117 | 6.58 | ||||||||||||||||||||
| Total interest-earning assets | 3,403,833 | 96,388 | 3.77 | 3,285,089 | 87,258 | 3.55 | ||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||
| Debt of consolidated trusts | 3,136,704 | (73,623) | (3.13) | 3,049,742 | (65,086) | (2.85) | ||||||||||||||||||||
| Debt of Freddie Mac | 197,744 | (6,909) | (4.65) | 179,719 | (7,486) | (5.55) | ||||||||||||||||||||
| Total interest-bearing liabilities | 3,334,448 | (80,532) | (3.22) | 3,229,461 | (72,572) | (3.00) | ||||||||||||||||||||
| Impact of net non-interest-bearing funding | 69,385 | — | 0.07 | 55,628 | — | 0.05 | ||||||||||||||||||||
| Total funding of interest-earning assets | 3,403,833 | (80,532) | (3.15) | 3,285,089 | (72,572) | (2.95) | ||||||||||||||||||||
| Net interest income/yield | $15,856 | 0.62 | % | $14,686 | 0.60 | % | ||||||||||||||||||||
(1)Loan fees included in net interest income were $0.9 billion during both YTD 2025 and YTD 2024.
| Freddie Mac 3Q 2025 Form 10-Q | 7 | |||||||
| Management's Discussion and Analysis | Consolidated Results of Operations | |||||||
Non-Interest Income
The table below presents the components of non-interest income.
Table 4 - Components of Non-Interest Income
| Change | Change | |||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | 3Q 2025 | 3Q 2024 | $ | % | YTD 2025 | YTD 2024 | $ | % | ||||||||||||||||||||||||||||||
| Guarantee income | $377 | $487 | ($110) | (23) | % | $1,215 | $1,366 | ($151) | (11) | % | ||||||||||||||||||||||||||||
| Investment gains (losses), net | (237) | 243 | (480) | NM | 74 | 1,197 | (1,123) | (94) | ||||||||||||||||||||||||||||||
| Other income | 144 | 109 | 35 | 32 | 362 | 334 | 28 | 8 | ||||||||||||||||||||||||||||||
| Non-interest income | $284 | $839 | ($555) | (66) | % | $1,651 | $2,897 | ($1,246) | (43) | % | ||||||||||||||||||||||||||||
Key Drivers:
n Guarantee income
l 3Q 2025 vs. 3Q 2024 - Decreased primarily due to less favorable fair value changes as a result of smaller declines in medium-term interest rates during 3Q 2025.
l YTD 2025 vs. YTD 2024 - Decreased primarily due to less favorable fair value changes from prepayment rates during YTD 2025.
n Investment gains (losses), net
l 3Q 2025 vs. 3Q 2024 - Decreased primarily due to losses in Single-Family driven by interest rate and spread changes.
l YTD 2025 vs. YTD 2024 - Decreased primarily due to lower gains in Single-Family driven by interest rate and spread changes, as well as lower revenues from held-for-sale loan purchase and securitization activities in Multifamily due to our business strategy change.
(Provision) Benefit for Credit Losses
The table below presents the components of provision for credit losses.
Table 5 - (Provision) Benefit for Credit Losses
| Change | Change | |||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | 3Q 2025 | 3Q 2024 | $ | % | YTD 2025 | YTD 2024 | $ | % | ||||||||||||||||||||||||||||||
| Single-Family | ($118) | $99 | ($217) | NM | ($968) | ($336) | ($632) | (188) | % | |||||||||||||||||||||||||||||
| Multifamily | (57) | 92 | (149) | NM | (270) | (48) | (222) | (463) | ||||||||||||||||||||||||||||||
| (Provision) benefit for credit losses | ($175) | $191 | ($366) | NM | ($1,238) | ($384) | ($854) | (222) | % | |||||||||||||||||||||||||||||
Key Drivers:
n 3Q 2025 vs. 3Q 2024 - The provision for credit losses for 3Q 2025 was primarily driven by a credit reserve build in Single-Family attributable to new acquisitions. The benefit for credit losses for 3Q 2024 was driven by a credit reserve release in Single-Family as a result of lower mortgage interest rates and a credit reserve release in Multifamily due to enhancements in the credit loss estimation process.
n YTD 2025 vs. YTD 2024 - The provision for credit losses for YTD 2025 was primarily driven by a credit reserve build in Single-Family attributable to new acquisitions, changes in estimated market values of single-family properties based on our internal house price index, and changes in forecasted house price growth rates. The provision for credit losses for YTD 2024 was primarily driven by a credit reserve build in Single-Family attributable to new acquisitions.
| Freddie Mac 3Q 2025 Form 10-Q | 8 | |||||||
| Management's Discussion and Analysis | Consolidated Results of Operations | |||||||
Non-Interest Expense
The table below presents the components of non-interest expense.
Table 6 - Components of Non-Interest Expense
| Change | Change | |||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | 3Q 2025 | 3Q 2024 | $ | % | YTD 2025 | YTD 2024 | $ | % | ||||||||||||||||||||||||||||||
| Salaries and employee benefits | ($423) | ($424) | $1 | — | % | ($1,299) | ($1,265) | ($34) | (3) | % | ||||||||||||||||||||||||||||
| Professional services, technology, and occupancy | (293) | (289) | (4) | (1) | (841) | (829) | (12) | (1) | ||||||||||||||||||||||||||||||
| Credit enhancement expense | (489) | (616) | 127 | 21 | (1,540) | (1,801) | 261 | 14 | ||||||||||||||||||||||||||||||
| Legislative and regulatory assessments: | ||||||||||||||||||||||||||||||||||||||
| Legislated guarantee fees expense | (750) | (732) | (18) | (2) | (2,240) | (2,184) | (56) | (3) | ||||||||||||||||||||||||||||||
| Affordable housing funds allocation | (53) | (48) | (5) | (10) | (134) | (118) | (16) | (14) | ||||||||||||||||||||||||||||||
| Regulatory assessment | (36) | (34) | (2) | (6) | (107) | (101) | (6) | (6) | ||||||||||||||||||||||||||||||
| Total legislative and regulatory assessments | (839) | (814) | (25) | (3) | (2,481) | (2,403) | (78) | (3) | ||||||||||||||||||||||||||||||
| Other expense | (72) | (40) | (32) | (80) | (201) | (141) | (60) | (43) | ||||||||||||||||||||||||||||||
| Non-interest expense | ($2,116) | ($2,183) | $67 | 3 | % | ($6,362) | ($6,439) | $77 | 1 | % | ||||||||||||||||||||||||||||
Key Drivers:
n Credit enhancement expense
l 3Q 2025 vs. 3Q 2024 and YTD 2025 vs. YTD 2024 - Decreased primarily due to a lower volume of outstanding CRT transactions in Single-Family and lower losses on STACR Trust note repurchases.
| Freddie Mac 3Q 2025 Form 10-Q | 9 | |||||||
| Management's Discussion and Analysis | Consolidated Balance Sheets Analysis | |||||||
CONSOLIDATED BALANCE SHEETS ANALYSIS
The table below compares our summarized condensed consolidated balance sheets.
Table 7 - Summarized Condensed Consolidated Balance Sheets
| Change | ||||||||||||||||||||
| (Dollars in millions) | September 30, 2025 | December 31, 2024 | $ | % | ||||||||||||||||
| Assets: | ||||||||||||||||||||
| Cash and cash equivalents | $4,624 | $5,534 | ($910) | (16) | % | |||||||||||||||
| Securities purchased under agreements to resell | 86,334 | 100,118 | (13,784) | (14) | ||||||||||||||||
| Investment securities, at fair value | 83,855 | 55,771 | 28,084 | 50 | ||||||||||||||||
| Mortgage loans held-for-sale | 1,807 | 15,560 | (13,753) | (88) | ||||||||||||||||
| Mortgage loans held-for-investment | 3,248,704 | 3,172,329 | 76,375 | 2 | ||||||||||||||||
| Accrued interest receivable | 11,813 | 11,029 | 784 | 7 | ||||||||||||||||
| Deferred tax assets, net | 4,727 | 5,018 | (291) | (6) | ||||||||||||||||
| Other assets | 26,323 | 21,333 | 4,990 | 23 | ||||||||||||||||
| Total assets | $3,468,187 | $3,386,692 | $81,495 | 2 | % | |||||||||||||||
| Liabilities and Equity | ||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||
| Accrued interest payable | $10,185 | $9,822 | $363 | 4 | % | |||||||||||||||
| Debt | 3,379,073 | 3,304,949 | 74,124 | 2 | ||||||||||||||||
| Other liabilities | 11,329 | 12,346 | (1,017) | (8) | ||||||||||||||||
| Total liabilities | 3,400,587 | 3,327,117 | 73,470 | 2 | ||||||||||||||||
| Total equity | 67,600 | 59,575 | 8,025 | 13 | ||||||||||||||||
| Total liabilities and equity | $3,468,187 | $3,386,692 | $81,495 | 2 | % | |||||||||||||||
Key Drivers:
As of September 30, 2025 compared to December 31, 2024:
n Securities purchased under agreements to resell decreased primarily due to a change in strategy to increase investments in U.S. Treasury securities.
n Investment securities increased primarily due to the increase in purchases of U.S. Treasury securities.
n Mortgage loans held-for-sale decreased primarily due to Multifamily designating a greater percentage of new mortgage loan purchases as held-for-investment to support increased issuances of fully guaranteed securitizations.
n Mortgage loans held-for-investment increased primarily due to growth in our mortgage portfolio.
n Debt increased primarily due to an increase in debt of consolidated trusts driven by growth in our mortgage portfolio.
| Freddie Mac 3Q 2025 Form 10-Q | 10 | |||||||
| Management's Discussion and Analysis | Our Portfolios | |||||||
OUR PORTFOLIOS
Mortgage Portfolio
The table below presents the UPB of our mortgage portfolio by segment.
Table 8 - Mortgage Portfolio
| September 30, 2025 | December 31, 2024 | |||||||||||||||||||||||||
| (In millions) | Single-Family | Multifamily | Total | Single-Family | Multifamily | Total | ||||||||||||||||||||
| Mortgage loans held-for-investment: | ||||||||||||||||||||||||||
| By consolidated trusts | $3,050,565 | $95,640 | $3,146,205 | $3,021,161 | $70,701 | $3,091,862 | ||||||||||||||||||||
| By Freddie Mac | 51,266 | 31,202 | 82,468 | 42,050 | 16,715 | 58,765 | ||||||||||||||||||||
| Total mortgage loans held-for-investment | 3,101,831 | 126,842 | 3,228,673 | 3,063,211 | 87,416 | 3,150,627 | ||||||||||||||||||||
| Mortgage loans held-for-sale | 1,886 | 272 | 2,158 | 2,984 | 13,265 | 16,249 | ||||||||||||||||||||
| Total mortgage loans | 3,103,717 | 127,114 | 3,230,831 | 3,066,195 | 100,681 | 3,166,876 | ||||||||||||||||||||
| Mortgage-related guarantees: | ||||||||||||||||||||||||||
| Mortgage loans held by nonconsolidated trusts | 30,219 | 342,483 | 372,702 | 30,038 | 355,108 | 385,146 | ||||||||||||||||||||
| Other mortgage-related guarantees | 7,385 | 10,367 | 17,752 | 7,941 | 10,846 | 18,787 | ||||||||||||||||||||
| Total mortgage-related guarantees | 37,604 | 352,850 | 390,454 | 37,979 | 365,954 | 403,933 | ||||||||||||||||||||
| Total mortgage portfolio | $3,141,321 | $479,964 | $3,621,285 | $3,104,174 | $466,635 | $3,570,809 | ||||||||||||||||||||
| Guaranteed mortgage-related securities: | ||||||||||||||||||||||||||
| Issued by consolidated trusts | $3,068,054 | $95,787 | $3,163,841 | $3,033,506 | $70,764 | $3,104,270 | ||||||||||||||||||||
| Issued by nonconsolidated trusts | 24,756 | 307,818 | 332,574 | 24,470 | 317,611 | 342,081 | ||||||||||||||||||||
| Total guaranteed mortgage-related securities | $3,092,810 | $403,605 | $3,496,415 | $3,057,976 | $388,375 | $3,446,351 | ||||||||||||||||||||
Investments Portfolio
Our investments portfolio consists of our mortgage-related investments portfolio and other investments portfolio.
Mortgage-Related Investments Portfolio
The Purchase Agreement limits the size of our mortgage-related investments portfolio to a maximum amount of $225 billion. The calculation of mortgage assets subject to the Purchase Agreement cap includes the UPB of mortgage assets and 10% of the notional value of interest-only securities. We are also subject to additional limitations on the size and composition of our mortgage-related investments portfolio pursuant to FHFA guidance. FHFA updates the limits on our mortgage-related investments portfolio. We are now permitted to hold no more than $40 billion in Single-Family agency MBS with all dollar limits based on UPB. FHFA has also updated the restrictions on our mortgage-related investments portfolio to permit us to invest up to $5 billion of the $40 billion Single-Family agency MBS cap in CMO securities. For additional information on the restrictions on our mortgage-related investments portfolio, see the MD&A - Conservatorship and Related Matters section in our 2024 Annual Report.
| Freddie Mac 3Q 2025 Form 10-Q | 11 | |||||||
| Management's Discussion and Analysis | Our Portfolios | |||||||
The table below presents the details of our mortgage-related investments portfolio.
Table 9 - Mortgage-Related Investments Portfolio
| September 30, 2025 | December 31, 2024 | |||||||||||||||||||||||||
| (In millions) | Single-Family | Multifamily | Total | Single-Family | Multifamily | Total | ||||||||||||||||||||
Unsecuritized mortgage loans(1) | $53,152 | $31,474 | $84,626 | $45,034 | $29,980 | $75,014 | ||||||||||||||||||||
| Mortgage-related securities: | ||||||||||||||||||||||||||
| Investment securities | 3,497 | 4,407 | 7,904 | 3,136 | 4,020 | 7,156 | ||||||||||||||||||||
| Debt of consolidated trusts | 22,461 | 1,432 | 23,893 | 18,188 | 634 | 18,822 | ||||||||||||||||||||
| Total mortgage-related securities | 25,958 | 5,839 | 31,797 | 21,324 | 4,654 | 25,978 | ||||||||||||||||||||
| Mortgage-related investments portfolio | $79,110 | $37,313 | $116,423 | $66,358 | $34,634 | $100,992 | ||||||||||||||||||||
| 10% of notional amount of interest-only securities | $22,399 | $22,495 | ||||||||||||||||||||||||
| Mortgage-related investments portfolio for purposes of Purchase Agreement cap | 138,822 | 123,487 | ||||||||||||||||||||||||
(1)Includes $34.5 billion and $30.0 billion of single-family loans that we have purchased from securitization trusts as of September 30, 2025 and December 31, 2024, respectively.
Other Investments Portfolio
The table below presents the details of the carrying value of our other investments portfolio.
Table 10 - Other Investments Portfolio
| September 30, 2025 | December 31, 2024 | |||||||||||||||||||||||||||||||
| (In millions) | Liquidity and Contingency Operating Portfolio | Custodial Account | Other | Total Other Investments Portfolio | Liquidity and Contingency Operating Portfolio | Custodial Account | Other | Total Other Investments Portfolio | ||||||||||||||||||||||||
| Cash and cash equivalents | $3,632 | $895 | $97 | $4,624 | $4,369 | $1,055 | $110 | $5,534 | ||||||||||||||||||||||||
Securities purchased under agreements to resell | 73,585 | 15,729 | 2,481 | 91,795 | 92,787 | 12,764 | 2,787 | 108,338 | ||||||||||||||||||||||||
Non-mortgage related securities(1) | 62,821 | — | 7,008 | 69,829 | 37,249 | — | 5,465 | 42,714 | ||||||||||||||||||||||||
Other assets(2) | — | — | 7,145 | 7,145 | — | — | 6,091 | 6,091 | ||||||||||||||||||||||||
| Other investments portfolio | $140,038 | $16,624 | $16,731 | $173,393 | $134,405 | $13,819 | $14,453 | $162,677 | ||||||||||||||||||||||||
(1)Primarily consists of U.S. Treasury securities.
(2)Primarily includes LIHTC investments and advances to lenders.
| Freddie Mac 3Q 2025 Form 10-Q | 12 | |||||||
| Management's Discussion and Analysis | Our Business Segments | |||||||
OUR BUSINESS SEGMENTS
As shown in the table below, we have two reportable segments, which are based on the way we manage our business.
| Segment | Description | ||||
| Single-Family | Reflects results from our purchase, securitization, and guarantee of single-family loans, our investments in single-family loans and mortgage-related securities, the management of Single-Family mortgage credit risk and market risk, and any results of our treasury function that are not allocated to each segment. | ||||
| Multifamily | Reflects results from our purchase, securitization, and guarantee of multifamily loans, our investments in multifamily loans and mortgage-related securities, and the management of Multifamily mortgage credit risk and market risk. | ||||
Segment Net Revenues and Net Income
The charts below show our net revenues and net income by segment.
Segment Net Revenues
(In billions)
Segment Net Income
(In billions)
| Freddie Mac 3Q 2025 Form 10-Q | 13 | |||||||
| Management's Discussion and Analysis | Our Business Segments | Single-Family | ||||
Single-Family
Business Results
The charts, tables, and related discussion below present the business results of our Single-Family segment.
New Business Activity
UPB of Single-Family Loan Purchases and Guarantees by Loan Purpose and Average Estimated Guarantee Fee Rate(1) on New Acquisitions
(UPB in billions)
(1)Estimated guarantee fee rate calculations exclude the legislated guarantee fees and include deferred fees recognized over the estimated life of the related loans based on month-end market rates for the month of acquisition.
Number of Families Helped to Own a Home and Average Loan UPB of New Acquisitions
(Loan count in thousands)
Key Drivers:
n 3Q 2025 vs. 3Q 2024 and YTD 2025 vs. YTD 2024
l New business activity increased primarily driven by an increase in refinance activity.
l The average estimated guarantee fee rate on new acquisitions decreased primarily due to lower estimated prepayment rates and a decrease in the proportion of 30-year fixed-rate loans among new acquisitions.
l The average loan size of new acquisitions increased during YTD 2025 compared to YTD 2024 primarily due to house price appreciation in recent periods.
| Freddie Mac 3Q 2025 Form 10-Q | 14 | |||||||
| Management's Discussion and Analysis | Our Business Segments | Single-Family | ||||
Single-Family Mortgage Portfolio
Single-Family Mortgage Portfolio and Average Estimated Guarantee Fee Rate(1) on Mortgage Portfolio
(UPB in billions)
(1)Estimated guarantee fee rate calculations include deferred fees recognized over the estimated life of the related loans based on month-end market rates for the month of acquisition. These calculations exclude the legislated guarantee fees and certain loans, the majority of which are held by VIEs that we do not consolidate. The UPB of these excluded loans was $39 billion as of September 30, 2025.
Single-Family Mortgage Loans
(Loan count in millions)
Key Drivers:
n September 30, 2025 vs. September 30, 2024
l Our Single-Family mortgage portfolio was $3.1 trillion at September 30, 2025, up 2% year-over-year. The mortgage portfolio continued to grow at a moderate pace.
l The average loan size of our Single-Family mortgage portfolio increased year-over-year primarily due to house price appreciation in recent periods, which contributed to new business acquisitions having a larger loan size compared to older vintages that continued to run off.
| Freddie Mac 3Q 2025 Form 10-Q | 15 | |||||||
| Management's Discussion and Analysis | Our Business Segments | Single-Family | ||||
Financial Results
The table below presents the results of operations for our Single-Family segment. See Note 11 for additional information about segment financial results.
Table 11 - Single-Family Segment Financial Results
| Change | Change | |||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | 3Q 2025 | 3Q 2024 | $ | % | YTD 2025 | YTD 2024 | $ | % | ||||||||||||||||||||||||||||||
| Net interest income | $5,047 | $4,692 | $355 | 8% | $14,698 | $13,815 | $883 | 6 | % | |||||||||||||||||||||||||||||
| Non-interest income (loss) | (143) | 364 | (507) | NM | 259 | 809 | (550) | (68) | ||||||||||||||||||||||||||||||
| Net revenues | 4,904 | 5,056 | (152) | (3) | 14,957 | 14,624 | 333 | 2 | ||||||||||||||||||||||||||||||
| (Provision) benefit for credit losses | (118) | 99 | (217) | NM | (968) | (336) | (632) | (188) | ||||||||||||||||||||||||||||||
| Non-interest expense | (1,868) | (1,966) | 98 | 5 | (5,644) | (5,812) | 168 | 3 | ||||||||||||||||||||||||||||||
| Income before income tax expense | 2,918 | 3,189 | (271) | (8) | 8,345 | 8,476 | (131) | (2) | ||||||||||||||||||||||||||||||
| Income tax expense | (571) | (616) | 45 | 7 | (1,645) | (1,674) | 29 | 2 | ||||||||||||||||||||||||||||||
| Net income | 2,347 | 2,573 | (226) | (9) | 6,700 | 6,802 | (102) | (1) | ||||||||||||||||||||||||||||||
| Other comprehensive income (loss), net of taxes and reclassification adjustments | 6 | 10 | (4) | (40) | 23 | — | 23 | NM | ||||||||||||||||||||||||||||||
| Comprehensive income | $2,353 | $2,583 | ($230) | (9)% | $6,723 | $6,802 | ($79) | (1) | % | |||||||||||||||||||||||||||||
Key Drivers:
n 3Q 2025 vs. 3Q 2024
l Net income of $2.3 billion, down 9% year-over-year.
–Net revenues were $4.9 billion, down 3% year-over-year.
◦Net interest income was $5.0 billion, up 8% year-over-year, primarily driven by continued mortgage portfolio growth and lower funding costs, partially offset by lower yields on short-term investments.
◦Non-interest loss was $0.1 billion, down from non-interest income of $0.4 billion for 3Q 2024, primarily driven by interest rate and spread changes.
–Provision for credit losses of $0.1 billion for 3Q 2025 was primarily driven by a credit reserve build attributable to new acquisitions. Benefit for credit losses of $0.1 billion for 3Q 2024 was primarily driven by a credit reserve release as a result of lower mortgage interest rates.
n YTD 2025 vs. YTD 2024
l Net income of $6.7 billion, down 1% year-over-year.
–Net revenues were $15.0 billion, up 2% year-over-year.
◦Net interest income was $14.7 billion, up 6% year-over-year, primarily driven by continued mortgage portfolio growth and lower funding costs, partially offset by lower yields on short-term investments.
◦Non-interest income was $0.3 billion, down from $0.8 billion for YTD 2024, primarily driven by interest rate and spread changes.
–Provision for credit losses of $1.0 billion for YTD 2025 was primarily driven by a credit reserve build attributable to new acquisitions, changes in estimated market values of single-family properties based on our internal house price index, and changes in forecasted house price growth rates. Provision for credit losses of $0.3 billion for YTD 2024 was primarily driven by a credit reserve build attributable to new acquisitions.
| Freddie Mac 3Q 2025 Form 10-Q | 16 | |||||||
| Management's Discussion and Analysis | Our Business Segments | Multifamily | |||||||
Multifamily
Business Results
The charts, tables, and related discussion below present the business results of our Multifamily segment.
New Business Activity and Securitization Activity
New Business Activity and Units Financed(1)
(UPB in billions)
(1) Includes rental units financed by supplemental loans. New Securitization Activity(2)
(UPB in billions) 
(2) Excludes resecuritizations.
(2) Excludes resecuritizations.Key Drivers:
n 3Q 2025 vs. 3Q 2024 and YTD 2025 vs. YTD 2024
l New business activity increased during the 2025 periods, primarily driven by a larger multifamily originations market, coupled with the execution of our competitive strategies. Approximately 68% of the YTD 2025 activity, based on UPB, was mission-driven affordable housing, exceeding FHFA's minimum requirement of 50%.
l A larger percentage of new business activity was designated as held-for-investment during the 2025 periods to support increased issuances of fully guaranteed securitizations.
l Total securitization issuance UPB increased, driven by a larger average securitization pipeline.
n Our index lock agreements and outstanding commitments to purchase or guarantee multifamily assets were $25.1 billion and $25.8 billion as of September 30, 2025 and September 30, 2024, respectively.
| Freddie Mac 3Q 2025 Form 10-Q | 17 | |||||||
| Management's Discussion and Analysis | Our Business Segments | Multifamily | |||||||
Multifamily Mortgage Portfolio and Guarantee Exposure
Mortgage Portfolio
(UPB in billions)
Guarantee Exposure
(UPB in billions) 
Key Drivers:
n September 30, 2025 vs. September 30, 2024
l Our mortgage portfolio increased 6% year-over-year, driven by our new business activity.
l Our guarantee exposure increased 6% year-over-year, as our new mortgage-related security guarantees outpaced paydowns.
l The average guarantee fee rate on our guarantee exposures increased year-over-year, primarily due to continued growth of fully guaranteed securitization issuances for which we charge higher guarantee fee rates.
n In addition to our Multifamily mortgage portfolio, we have investments in LIHTC fund partnerships with carrying values totaling $4.7 billion as of September 30, 2025, and $4.3 billion as of December 31, 2024.
| Freddie Mac 3Q 2025 Form 10-Q | 18 | |||||||
| Management's Discussion and Analysis | Our Business Segments | Multifamily | |||||||
Financial Results
The table below presents the results of operations for our Multifamily segment. See Note 11 for additional information about segment financial results.
Table 12 - Multifamily Segment Financial Results
| Change | Change | |||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | 3Q 2025 | 3Q 2024 | $ | % | YTD 2025 | YTD 2024 | $ | % | ||||||||||||||||||||||||||||||
| Net interest income | $408 | $307 | $101 | 33 | % | $1,158 | $871 | $287 | 33 | % | ||||||||||||||||||||||||||||
| Non-interest income | 427 | 475 | (48) | (10) | 1,392 | 2,088 | (696) | (33) | ||||||||||||||||||||||||||||||
| Net revenues | 835 | 782 | 53 | 7 | 2,550 | 2,959 | (409) | (14) | ||||||||||||||||||||||||||||||
| (Provision) benefit for credit losses | (57) | 92 | (149) | NM | (270) | (48) | (222) | (463) | ||||||||||||||||||||||||||||||
| Non-interest expense | (248) | (217) | (31) | (14) | (718) | (627) | (91) | (15) | ||||||||||||||||||||||||||||||
| Income before income tax expense | 530 | 657 | (127) | (19) | 1,562 | 2,284 | (722) | (32) | ||||||||||||||||||||||||||||||
| Income tax expense | (104) | (125) | 21 | 17 | (308) | (450) | 142 | 32 | ||||||||||||||||||||||||||||||
| Net income | 426 | 532 | (106) | (20) | 1,254 | 1,834 | (580) | (32) | ||||||||||||||||||||||||||||||
| Other comprehensive income (loss), net of taxes and reclassification adjustments | 10 | 52 | (42) | (81) | 48 | 32 | 16 | 50 | ||||||||||||||||||||||||||||||
| Comprehensive income | $436 | $584 | ($148) | (25) | % | $1,302 | $1,866 | ($564) | (30) | % | ||||||||||||||||||||||||||||
Key Drivers:
n 3Q 2025 vs. 3Q 2024
l Net income of $0.4 billion, down 20% year-over-year.
–Net revenues were $0.8 billion, up 7% year-over-year.
◦Net interest income was $0.4 billion, up 33% year-over-year, primarily driven by our business strategy change that resulted in an increase in the volume of fully guaranteed securitizations.
◦Non-interest income was $0.4 billion, down 10% year-over-year, primarily driven by lower revenues from held-for-sale loan purchase and securitization activities due to our business strategy change, partially offset by impacts from interest-rate risk management activities.
l Provision for credit losses was $0.1 billion for 3Q 2025, primarily driven by new loan purchase commitment and acquisition activities and deterioration in the credit performance of certain delinquent loans. The benefit for credit losses of $0.1 billion for 3Q 2024 was primarily driven by a credit reserve release due to enhancements in the credit loss estimation process.
n YTD 2025 vs. YTD 2024
l Net income of $1.3 billion, down 32% year-over-year.
–Net revenues were $2.6 billion, down 14% year-over-year.
◦Net interest income was $1.2 billion, up 33% year-over-year, primarily driven by our business strategy change that resulted in an increase in the volume of fully guaranteed securitizations.
◦Non-interest income was $1.4 billion, down 33% year-over-year, primarily driven by lower revenues from held-for-sale loan purchase and securitization activities due to our business strategy change, impacts from interest-rate risk management activities, and less favorable fair value changes from prepayment rates.
l Provision for credit losses was $0.3 billion for YTD 2025, primarily driven by a credit reserve build attributable to new loan purchase commitment and acquisition activities, coupled with deterioration in the credit performance of certain delinquent loans.
| Freddie Mac 3Q 2025 Form 10-Q | 19 | |||||||
| Management's Discussion and Analysis | Risk Management | |||||||
RISK MANAGEMENT
To achieve our mission, we take risks as an integral part of our business activities. We are exposed to the following key types of risk: credit risk, market risk, liquidity risk, operational risk, compliance risk, legal risk, strategic risk, and reputation risk.
Credit Risk
Allowance for Credit Losses
The tables below present a summary of the changes in our allowance for credit losses and key allowance for credit losses ratios.
Table 13 - Allowance for Credit Losses Activity
| 3Q 2025 | 3Q 2024 | YTD 2025 | YTD 2024 | |||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | Single-Family | Multi-family | Total | Single-Family | Multi-family | Total | Single-Family | Multi-family | Total | Single-Family | Multi-family | Total | ||||||||||||||||||||||||||||||||
| Allowance for credit losses: | ||||||||||||||||||||||||||||||||||||||||||||
| Beginning balance | $7,516 | $757 | $8,273 | $6,760 | $587 | $7,347 | $6,691 | $548 | $7,239 | $6,402 | $447 | $6,849 | ||||||||||||||||||||||||||||||||
| Provision (benefit) for credit losses | 118 | 57 | 175 | (99) | (92) | (191) | 968 | 270 | 1,238 | 336 | 48 | 384 | ||||||||||||||||||||||||||||||||
| Charge-offs | (118) | (111) | (229) | (75) | — | (75) | (405) | (116) | (521) | (367) | — | (367) | ||||||||||||||||||||||||||||||||
| Recoveries collected | 38 | — | 38 | 39 | — | 39 | 88 | 1 | 89 | 89 | — | 89 | ||||||||||||||||||||||||||||||||
| Net charge-offs | (80) | (111) | (191) | (36) | — | (36) | (317) | (115) | (432) | (278) | — | (278) | ||||||||||||||||||||||||||||||||
Other(1) | 110 | — | 110 | 72 | — | 72 | 322 | — | 322 | 237 | — | 237 | ||||||||||||||||||||||||||||||||
| Ending balance | $7,664 | $703 | $8,367 | $6,697 | $495 | $7,192 | $7,664 | $703 | $8,367 | $6,697 | $495 | $7,192 | ||||||||||||||||||||||||||||||||
Average loans outstanding during the period(2) | $3,123,997 | $110,858 | $3,234,855 | $3,062,970 | $67,309 | $3,130,279 | $3,111,493 | $96,379 | $3,207,872 | $3,045,392 | $62,495 | $3,107,887 | ||||||||||||||||||||||||||||||||
| Net charge-offs to average loans outstanding | — | % | 0.10 | % | 0.01 | % | — | % | — | % | — | % | 0.01 | % | 0.12 | % | 0.01 | % | 0.01 | % | — | % | 0.01 | % | ||||||||||||||||||||
| Components of ending balance of allowance for credit losses: | ||||||||||||||||||||||||||||||||||||||||||||
| Mortgage loans held-for-investment | $7,383 | $507 | $7,890 | $6,392 | $345 | $6,737 | ||||||||||||||||||||||||||||||||||||||
Other(3) | 281 | 196 | 477 | 305 | 150 | 455 | ||||||||||||||||||||||||||||||||||||||
| Total ending balance | $7,664 | $703 | $8,367 | $6,697 | $495 | $7,192 | ||||||||||||||||||||||||||||||||||||||
(1)Primarily includes capitalization of past due interest related to non-accrual loans that received payment deferral plans and loan modifications.
(2)Based on amortized cost basis of mortgage loans held-for-investment for which we have not elected the fair value option.
(3)Includes allowance for credit losses related to advances of pre-foreclosure costs and off-balance sheet credit exposures.
Table 14 - Allowance for Credit Losses Ratios
| September 30, 2025 | December 31, 2024 | ||||||||||||||||||||||
| (Dollars in millions) | Single-Family | Multifamily | Total | Single-Family | Multifamily | Total | |||||||||||||||||
| Allowance for credit losses ratios: | |||||||||||||||||||||||
Allowance for credit losses(1) to total loans outstanding | 0.24 | % | 0.43 | % | 0.24 | % | 0.21 | % | 0.46 | % | 0.21 | % | |||||||||||
| Non-accrual loans to total loans outstanding | 0.51 | 0.22 | 0.50 | 0.51 | 0.15 | 0.50 | |||||||||||||||||
| Allowance for credit losses to non-accrual loans | 45.82 | 197.28 | 48.19 | 40.11 | 314.40 | 42.25 | |||||||||||||||||
| Balances: | |||||||||||||||||||||||
| Allowance for credit losses on mortgage loans held-for-investment | $7,383 | $507 | $7,890 | $6,381 | $393 | $6,774 | |||||||||||||||||
Total loans outstanding(2) | 3,130,272 | 119,215 | 3,249,487 | 3,092,137 | 84,554 | 3,176,691 | |||||||||||||||||
Non-accrual loans(2) | 16,114 | 257 | 16,371 | 15,908 | 125 | 16,033 | |||||||||||||||||
(1)Represents allowance for credit losses on mortgage loans held-for-investment.
(2)Based on amortized cost basis of mortgage loans held-for-investment for which we have not elected the fair value option.
| Freddie Mac 3Q 2025 Form 10-Q | 20 | |||||||
| Management's Discussion and Analysis | Risk Management | |||||||
n 3Q 2025 vs. 3Q 2024 and YTD 2025 vs. YTD 2024 - The increase in charge-offs was primarily driven by a pool of Multifamily senior housing loans during 3Q 2025.
n September 30, 2025 vs. December 31, 2024 - The balance of non-accrual loans increased 2% primarily driven by the loans in the Multifamily senior housing pool that were placed on non-accrual status and the 1% increase in the balance of non-accrual loans in Single-Family.
Single-Family Mortgage Credit Risk
Maintaining Prudent Eligibility Standards and Quality Control Practices and Managing Seller/Servicer Performance
Loan Purchase Credit Characteristics
We monitor and evaluate market conditions that could affect the credit quality of our single-family loan purchases. Additionally, when managing our new acquisitions, we consider our risk limits and guidance from FHFA and capital requirements under the ERCF. This may affect the volume and characteristics of our loan acquisitions.
The charts below show the credit profile of the single-family loans we purchased.
Weighted Average Original LTV Ratio 
Weighted Average Original Credit Score(1)
(1)Weighted average original credit score is generally based on three credit bureaus (Equifax, Experian, and TransUnion).
Weighted Average Original DTI Ratio
| Freddie Mac 3Q 2025 Form 10-Q | 21 | |||||||
| Management's Discussion and Analysis | Risk Management | |||||||
The table below contains additional information about the single-family loans we purchased.
Table 15 - Single-Family New Business Activity
| 3Q 2025 | 3Q 2024 | YTD 2025 | YTD 2024 | |||||||||||||||||||||||||||||
| (Dollars in millions) | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||
| 20- and 30-year, amortizing fixed-rate | $89,478 | 90 | % | $93,999 | 96 | % | $247,235 | 91 | % | $234,609 | 95 | % | ||||||||||||||||||||
| 15-year or less, amortizing fixed-rate | 7,128 | 7 | 3,444 | 3 | 17,706 | 7 | 8,758 | 4 | ||||||||||||||||||||||||
| Adjustable-rate | 2,822 | 3 | 800 | 1 | 5,736 | 2 | 2,384 | 1 | ||||||||||||||||||||||||
| Total | $99,428 | 100 | % | $98,243 | 100 | % | $270,677 | 100 | % | $245,751 | 100 | % | ||||||||||||||||||||
| Percentage of purchases | ||||||||||||||||||||||||||||||||
| DTI ratio > 45% | 28 | % | 29 | % | 29 | % | 30 | % | ||||||||||||||||||||||||
| Original LTV ratio > 90% | 24 | 24 | 24 | 25 | ||||||||||||||||||||||||||||
| Transaction type: | ||||||||||||||||||||||||||||||||
| Guarantor swap | 67 | 64 | 70 | 65 | ||||||||||||||||||||||||||||
| Cash window | 33 | 36 | 30 | 35 | ||||||||||||||||||||||||||||
| Property type: | ||||||||||||||||||||||||||||||||
| Detached single-family houses and townhouses | 93 | 92 | 92 | 91 | ||||||||||||||||||||||||||||
| Condominium or co-op | 7 | 8 | 8 | 9 | ||||||||||||||||||||||||||||
| Occupancy type: | ||||||||||||||||||||||||||||||||
| Primary residence | 94 | 93 | 93 | 93 | ||||||||||||||||||||||||||||
| Second home | 2 | 2 | 2 | 2 | ||||||||||||||||||||||||||||
| Investment property | 4 | 5 | 5 | 5 | ||||||||||||||||||||||||||||
| Loan purpose: | ||||||||||||||||||||||||||||||||
| Purchase | 82 | 86 | 81 | 86 | ||||||||||||||||||||||||||||
| Cash-out refinance | 9 | 8 | 9 | 8 | ||||||||||||||||||||||||||||
| Other refinance | 9 | 6 | 10 | 6 | ||||||||||||||||||||||||||||
Transferring Credit Risk to Third-Party Investors
We engage in various credit enhancement arrangements to reduce our credit risk exposure on our single-family loans.
Single-Family Mortgage Portfolio Newly Acquired Credit Enhancements
The table below provides the UPB of the mortgage loans acquired during the periods presented that were covered by primary mortgage insurance, the UPB of the mortgage loans covered by CRT transactions we entered into during the periods presented, and maximum coverage related to these newly acquired credit enhancements. In recent periods, we have changed our business strategy and revised our CRT transactions by retaining higher levels of initial losses. As a result, the benefits provided by these revised CRT transactions may be lower than those provided by the earlier CRT transactions even if the maximum coverage provided by the more recent CRT transactions is similar to that provided by the earlier CRT transactions.
| Freddie Mac 3Q 2025 Form 10-Q | 22 | |||||||
| Management's Discussion and Analysis | Risk Management | |||||||
Table 16 - Single-Family Mortgage Portfolio Newly Acquired Credit Enhancements
| 3Q 2025 | 3Q 2024 | ||||||||||||||||
| (In millions) | UPB(1)(2) | Maximum Coverage(3)(4) | UPB(1)(2) | Maximum Coverage(3)(4) | |||||||||||||
| Primary mortgage insurance | $38,580 | $10,080 | $37,774 | $9,961 | |||||||||||||
| CRT transactions: | |||||||||||||||||
| STACR | 20,734 | 610 | 33,282 | 853 | |||||||||||||
| ACIS | 9,357 | 293 | 10,402 | 376 | |||||||||||||
| Other | 815 | 142 | 776 | 150 | |||||||||||||
| Total CRT issuance | $30,906 | $1,045 | $44,460 | $1,379 | |||||||||||||
| YTD 2025 | YTD 2024 | ||||||||||||||||
| (In millions) | UPB(1)(2) | Maximum Coverage(3)(4) | UPB(1)(2) | Maximum Coverage(3)(4) | |||||||||||||
| Primary mortgage insurance | $104,473 | $27,331 | $97,532 | $25,717 | |||||||||||||
| CRT transactions: | |||||||||||||||||
| STACR | 77,959 | 2,435 | 106,764 | 3,142 | |||||||||||||
| ACIS | 54,935 | 1,745 | 36,251 | 1,269 | |||||||||||||
| Other | 2,100 | 437 | 1,864 | 377 | |||||||||||||
| Total CRT issuance | $134,994 | $4,617 | $144,879 | $4,788 | |||||||||||||
(1) Represents the UPB of the mortgage assets, reference pool, or securitization trust, as applicable.
(2) The primary mortgage insurance and CRT transactions presented in this table are not mutually exclusive as a single loan may be covered by both primary mortgage insurance and CRT transactions.
(3) For primary mortgage insurance, represents the coverage as of the related loan acquisition. For STACR transactions, represents the balance held by third parties at issuance. For ACIS transactions, represents the aggregate limit of insurance purchased from third parties at issuance.
(4) The credit risk positions to which the maximum coverage applies may vary on a transaction-by-transaction basis.
Single-Family Mortgage Portfolio Credit Enhancement Coverage Outstanding
The table below provides information on the UPB and maximum coverage associated with credit-enhanced loans in our Single-Family mortgage portfolio.
Table 17 - Single-Family Mortgage Portfolio Credit Enhancement Coverage Outstanding
| September 30, 2025 | ||||||||||||||
| (Dollars in millions) | UPB(1) | % of Portfolio | Maximum Coverage(2)(3) | |||||||||||
Primary mortgage insurance(4) | $675,345 | 21 | % | $179,994 | ||||||||||
| STACR | 1,182,571 | 38 | 26,255 | |||||||||||
| ACIS | 690,453 | 22 | 16,186 | |||||||||||
| Other | 38,662 | 1 | 10,377 | |||||||||||
Less: UPB with multiple credit enhancements and other reconciling items(5) | (646,482) | (20) | — | |||||||||||
| Single-Family mortgage portfolio - credit-enhanced | 1,940,549 | 62 | 232,812 | |||||||||||
| Single-Family mortgage portfolio - non-credit-enhanced | 1,200,772 | 38 | N/A | |||||||||||
| Total | $3,141,321 | 100 | % | $232,812 | ||||||||||
| Freddie Mac 3Q 2025 Form 10-Q | 23 | |||||||
| Management's Discussion and Analysis | Risk Management | |||||||
| December 31, 2024 | ||||||||||||||
| (Dollars in millions) | UPB(1) | % of Portfolio | Maximum Coverage(2)(3) | |||||||||||
Primary mortgage insurance(4) | $658,104 | 21 | % | $174,445 | ||||||||||
| STACR | 1,196,740 | 39 | 28,471 | |||||||||||
| ACIS | 754,489 | 24 | 16,474 | |||||||||||
| Other | 38,951 | 1 | 10,643 | |||||||||||
Less: UPB with multiple credit enhancements and other reconciling items(5) | (733,818) | (23) | — | |||||||||||
| Single-Family mortgage portfolio - credit-enhanced | 1,914,466 | 62 | 230,033 | |||||||||||
| Single-Family mortgage portfolio - non-credit-enhanced | 1,189,708 | 38 | N/A | |||||||||||
| Total | $3,104,174 | 100 | % | $230,033 | ||||||||||
(1) Represents the current UPB of the mortgage assets, reference pool, or securitization trust, as applicable.
(2) For STACR transactions, represents the outstanding balance held by third parties. For ACIS transactions, represents the remaining aggregate limit of insurance purchased from third parties.
(3) The credit risk positions to which the maximum coverage applies may vary on a transaction-by-transaction basis.
(4) Amounts exclude certain loans for which we do not control servicing, as the coverage information for these loans is not readily available to us.
(5) Other reconciling items primarily include timing differences in reporting cycles between the UPB of certain CRT transactions and the UPB of the underlying loans.
Credit Enhancement Coverage Characteristics
The table below provides the serious delinquency rates for the credit-enhanced and non-credit-enhanced loans in our Single-Family mortgage portfolio. The credit-enhanced categories are not mutually exclusive as a single loan may be covered by both primary mortgage insurance and other credit enhancements.
Table 18 - Serious Delinquency Rates for Credit-Enhanced and Non-Credit-Enhanced Loans in Our Single-Family Mortgage Portfolio
| September 30, 2025 | December 31, 2024 | |||||||||||||||||||
(% of portfolio based on UPB)(1) | % of Portfolio(2) | SDQ Rate | % of Portfolio(2) | SDQ Rate | ||||||||||||||||
| Credit-enhanced: | ||||||||||||||||||||
| Primary mortgage insurance | 22 | % | 1.12 | % | 21 | % | 1.12 | % | ||||||||||||
| CRT and other | 54 | 0.63 | 54 | 0.66 | ||||||||||||||||
| Non-credit-enhanced | 38 | 0.40 | 38 | 0.43 | ||||||||||||||||
| Total | N/A | 0.57 | N/A | 0.59 | ||||||||||||||||
(1)Excludes loans underlying certain securitization products for which loan-level data is not available.
(2)Percentages do not total to 100% as a single loan may be included in multiple line items.
Credit Enhancement Recoveries
Our expected recovery receivable from freestanding credit enhancements was $0.1 billion as of both September 30, 2025 and December 31, 2024.
Monitoring Loan Performance and Characteristics
We review loan performance, including delinquency statistics and related loan characteristics, in conjunction with housing market and economic conditions, to assess credit risk when estimating our allowance for credit losses.
| Freddie Mac 3Q 2025 Form 10-Q | 24 | |||||||
| Management's Discussion and Analysis | Risk Management | |||||||
Loan Characteristics and Serious Delinquency Rates
The table below contains details of the characteristics and serious delinquency rates of the loans in our Single-Family mortgage portfolio.
Table 19 - Credit Quality Characteristics and Serious Delinquency Rates of Our Single-Family Mortgage Portfolio(1)
| September 30, 2025 | |||||||||||||||||||||||
| (Dollars in millions) | UPB | Original Credit Score(2) | Current Credit Score(2)(3) | Original LTV Ratio | Current LTV Ratio | SDQ Rate | |||||||||||||||||
| Single-Family mortgage portfolio year of origination: | |||||||||||||||||||||||
| 2025 | $228,260 | 757 | 753 | 77 | % | 77 | % | 0.03 | % | ||||||||||||||
| 2024 | 312,479 | 754 | 751 | 78 | 75 | 0.41 | |||||||||||||||||
| 2023 | 226,103 | 750 | 744 | 79 | 72 | 0.90 | |||||||||||||||||
| 2022 | 373,619 | 746 | 741 | 76 | 64 | 0.96 | |||||||||||||||||
| 2021 | 858,855 | 752 | 755 | 71 | 49 | 0.42 | |||||||||||||||||
| 2020 and prior | 1,142,005 | 750 | 760 | 73 | 38 | 0.60 | |||||||||||||||||
| Total | $3,141,321 | 751 | 754 | 74 | 53 | 0.57 | |||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||
| (Dollars in millions) | UPB | Original Credit Score (2) | Current Credit Score(2)(3) | Original LTV Ratio | Current LTV Ratio | SDQ Rate | |||||||||||||||||
| Single-Family mortgage portfolio year of origination: | |||||||||||||||||||||||
| 2024 | $309,757 | 754 | 749 | 78 | % | 76 | % | 0.12 | % | ||||||||||||||
| 2023 | 250,712 | 751 | 749 | 79 | 72 | 0.68 | |||||||||||||||||
| 2022 | 399,741 | 746 | 743 | 76 | 65 | 0.95 | |||||||||||||||||
| 2021 | 912,364 | 752 | 756 | 71 | 50 | 0.42 | |||||||||||||||||
| 2020 | 665,137 | 761 | 768 | 71 | 43 | 0.25 | |||||||||||||||||
| 2019 and prior | 566,463 | 738 | 752 | 75 | 33 | 0.91 | |||||||||||||||||
| Total | $3,104,174 | 751 | 755 | 74 | 52 | 0.59 | |||||||||||||||||
(1)Excludes certain credit quality characteristics and serious delinquency rate information on loans underlying certain securitization products for which data was not available.
(2)Original credit score is generally based on three credit bureaus (Equifax, Experian, and TransUnion). Current credit score is based on Experian only.
(3)Credit scores for certain recently acquired loans may not have been updated by the credit bureau since the loan acquisition and therefore the original credit scores also represent the current credit scores.
The table below presents the combination of credit score and CLTV ratio attributes of loans in our Single-Family mortgage portfolio.
Table 20 - Single-Family Mortgage Portfolio Attribute Combinations(1)
| September 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CLTV ≤ 60 | CLTV > 60 to 80 | CLTV > 80 to 90 | CLTV > 90 to 100 | CLTV > 100 | All Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||
Current credit score(2)(3) | % of Portfolio | SDQ Rate | % of Portfolio | SDQ Rate | % of Portfolio | SDQ Rate | % of Portfolio | SDQ Rate | % of Portfolio | SDQ Rate | % of Portfolio | SDQ Rate | ||||||||||||||||||||||||||||||||||||||||||||
| 740 and above | 48 | % | 0.04 | % | 16 | % | 0.05 | % | 5 | % | 0.07 | % | 3 | % | 0.08 | % | — | % | NM | 72 | % | 0.04 | % | |||||||||||||||||||||||||||||||||
| 700 to 739 | 7 | 0.20 | 3 | 0.18 | 1 | 0.23 | 2 | 0.18 | — | NM | 13 | 0.20 | ||||||||||||||||||||||||||||||||||||||||||||
| 680 to 699 | 2 | 0.39 | 1 | 0.35 | — | NM | 1 | 0.41 | — | NM | 4 | 0.39 | ||||||||||||||||||||||||||||||||||||||||||||
| 660 to 679 | 2 | 0.63 | 1 | 0.56 | — | NM | — | NM | — | NM | 3 | 0.62 | ||||||||||||||||||||||||||||||||||||||||||||
| 620 to 659 | 2 | 1.36 | 1 | 1.33 | — | NM | — | NM | — | NM | 3 | 1.38 | ||||||||||||||||||||||||||||||||||||||||||||
| Less than 620 | 3 | 6.55 | 1 | 8.85 | 1 | 10.53 | — | NM | — | NM | 5 | 7.46 | ||||||||||||||||||||||||||||||||||||||||||||
| Total | 64 | % | 0.46 | 23 | % | 0.79 | 7 | % | 0.97 | 6 | % | 0.89 | — | % | NM | 100 | % | 0.57 | ||||||||||||||||||||||||||||||||||||||
| Freddie Mac 3Q 2025 Form 10-Q | 25 | |||||||
| Management's Discussion and Analysis | Risk Management | |||||||
| December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CLTV ≤ 60 | CLTV > 60 to 80 | CLTV > 80 to 90 | CLTV > 90 to 100 | CLTV > 100 | All Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||
Current credit score(2)(3) | % of Portfolio | SDQ Rate | % of Portfolio | SDQ Rate | % of Portfolio | SDQ Rate | % of Portfolio | SDQ Rate | % of Portfolio | SDQ Rate | % of Portfolio | SDQ Rate | ||||||||||||||||||||||||||||||||||||||||||||
| 740 and above | 50 | % | 0.04 | % | 16 | % | 0.05 | % | 4 | % | 0.09 | % | 2 | % | 0.10 | % | — | % | NM | 72 | % | 0.05 | % | |||||||||||||||||||||||||||||||||
| 700 to 739 | 9 | 0.22 | 2 | 0.22 | 2 | 0.25 | 1 | 0.18 | — | NM | 14 | 0.22 | ||||||||||||||||||||||||||||||||||||||||||||
| 680 to 699 | 2 | 0.45 | 2 | 0.40 | — | NM | — | NM | — | NM | 4 | 0.44 | ||||||||||||||||||||||||||||||||||||||||||||
| 660 to 679 | 2 | 0.73 | 1 | 0.66 | — | NM | — | NM | — | NM | 3 | 0.71 | ||||||||||||||||||||||||||||||||||||||||||||
| 620 to 659 | 2 | 1.60 | 1 | 1.62 | — | NM | — | NM | — | NM | 3 | 1.60 | ||||||||||||||||||||||||||||||||||||||||||||
| Less than 620 | 3 | 7.95 | 1 | 10.62 | — | NM | — | NM | — | NM | 4 | 8.80 | ||||||||||||||||||||||||||||||||||||||||||||
| Total | 68 | % | 0.51 | 23 | % | 0.82 | 6 | % | 1.00 | 3 | % | 0.75 | — | % | NM | 100 | % | 0.59 | ||||||||||||||||||||||||||||||||||||||
(1) Excludes loans underlying certain securitization products for which current credit score is not available.
(2) Current credit score is based on the credit bureau Experian only.
(3) Credit scores for certain recently acquired loans may not have been updated by the credit bureau since the loan acquisition and therefore the current credit scores represent the original credit scores.
Geographic Concentrations
We purchase mortgage loans from across the U.S. but do not purchase an equal number of loans from each geographic area, leading to concentrations of credit risk in certain geographic areas. Local economic and other conditions can affect the borrower's ability to repay and the value of the underlying collateral. Property insurance markets in certain geographic areas, including areas with high risk of natural disaster events, have observed increases in property insurance premiums and reduction in the availability of coverage in recent years. In addition, certain states and municipalities have passed or may pass laws that limit our ability to foreclose or evict and make it more difficult and costly to manage our risk.
See Note 12 for more information about the geographic distribution of our Single-Family mortgage portfolio.
Delinquency Rates
We report Single-Family delinquency rates based on the number of loans in our Single-Family mortgage portfolio that are past due as reported to us by our servicers as a percentage of the total number of loans in our Single-Family mortgage portfolio.
The chart below presents the delinquency rates of mortgage loans in our Single-Family mortgage portfolio.
The percentage of loans that were one month past due decreased, while the percentage of loans that were two months past due increased, as of September 30, 2025 compared to September 30, 2024. The percentage of loans one month past due can be volatile due to seasonality, whether the last day of the period falls on a weekend, and other factors that may not be
| Freddie Mac 3Q 2025 Form 10-Q | 26 | |||||||
| Management's Discussion and Analysis | Risk Management | |||||||
indicative of default. As a result, the percentage of loans two months past due tends to be a better early performance indicator than the percentage of loans one month past due.
Our Single-Family serious delinquency rate increased to 0.57% as of September 30, 2025, compared to 0.54% as of September 30, 2024, primarily due to a higher serious delinquency rate for loans originated during 2022 and later. See Note 3 for additional information on the payment status of our single-family mortgage loans.
Engaging in Loss Mitigation Activities
We offer a variety of borrower assistance programs. For purposes of the disclosure below related to loss mitigation activities, we generally exclude loans for which we do not control servicing. See Note 3 for additional information on our loss mitigation activities. For information on our refinance programs, see the MD&A - Our Business Segments - Single-Family and MD&A - Risk Management - Credit Risk - Single-Family Mortgage Credit Risk sections in our 2024 Annual Report.
Loan Workout Activities
We continue to help families retain their homes or otherwise avoid foreclosure through loan workouts. The table below provides details about the single-family loan workout activities that were completed during the periods presented.
Table 21 - Single-Family Completed Loan Workout Activity
| 3Q 2025 | 3Q 2024 | ||||||||||||||||
| (UPB in millions, loan count in thousands) | UPB | Loan Count | UPB | Loan Count | |||||||||||||
| Payment deferral plans | $2,029 | 8 | $1,748 | 6 | |||||||||||||
| Loan modifications | 2,598 | 9 | 1,637 | 7 | |||||||||||||
Forbearance plans and other(1) | 1,180 | 5 | 1,025 | 5 | |||||||||||||
| Total | $5,807 | 22 | $4,410 | 18 | |||||||||||||
| YTD 2025 | YTD 2024 | ||||||||||||||||
| (UPB in millions, loan count in thousands) | UPB | Loan Count | UPB | Loan Count | |||||||||||||
| Payment deferral plans | $7,141 | 27 | $6,516 | 24 | |||||||||||||
| Loan modifications | 7,254 | 27 | 4,701 | 19 | |||||||||||||
Forbearance plans and other(1) | 4,176 | 17 | 3,262 | 14 | |||||||||||||
| Total | $18,571 | 71 | $14,479 | 57 | |||||||||||||
(1) The forbearance data is limited to loans in forbearance that are past due based on the loans' original contractual terms and excludes loans included in certain legacy transactions, as the forbearance data for such loans is either not reported to us by the servicers or is otherwise not readily available to us. Other includes repayment plans and foreclosure alternatives.
Completed loan workout activity includes forbearance plans where borrowers fully reinstated the loan to current status during or at the end of the forbearance period, payment deferral plans, loan modifications, successfully completed repayment plans, short sales, and deeds in lieu of foreclosure. Completed loan workout activity excludes active loss mitigation activity that was ongoing and had not been completed as of the end of the period, such as forbearance plans that had been initiated but not completed and trial period modifications. There were approximately 15,000 loans in active forbearance plans and approximately 19,000 loans in other active loss mitigation activity as of September 30, 2025.
Multifamily Mortgage Credit Risk
Completing Our Own Underwriting, Credit, and Legal Review for New Business Activity
Our underwriting standards focus on the LTV ratio and DSCR, which estimates the value of the collateral and a borrower's ability to repay the loan using the secured property's cash flows, after expenses. The charts below provide the weighted average original LTV ratio and original DSCR for our new business activity.
| Freddie Mac 3Q 2025 Form 10-Q | 27 | |||||||
| Management's Discussion and Analysis | Risk Management | |||||||
Weighted Average Original LTV Ratio 
Weighted Average Original DSCR(1)
(1) Assumes monthly payments that reflect amortization of principal.
Transferring Credit Risk to Third-Party Investors
We engage in a variety of CRT activities which transfer credit risk on the Multifamily mortgage portfolio, thereby reducing our overall credit risk exposure and required capital.
Multifamily Mortgage Portfolio CRT Issuance
We obtain credit enhancement through subordination, as well as our MSCR and MCIP transactions. We generally retain first loss exposure in MSCR and MCIP transactions.
Due to our business strategy change, we expect to primarily transfer credit risk using our MSCR and MCIP transactions rather than through subordination.
The table below provides the UPB of the multifamily mortgage loans covered by CRT transactions issued during the periods presented as well as the maximum coverage provided by those transactions.
Table 22 - Multifamily Mortgage Portfolio CRT Issuance
| 3Q 2025 | 3Q 2024 | YTD 2025 | YTD 2024 | |||||||||||||||||||||||||||||||||||
| (In millions) | UPB(1) | Maximum Coverage(2)(3) | UPB(1) | Maximum Coverage(2)(3) | UPB(1) | Maximum Coverage(2)(3) | UPB(1) | Maximum Coverage(2)(3) | ||||||||||||||||||||||||||||||
| Subordination | $1,781 | $146 | $6,606 | $405 | $16,632 | $1,070 | $19,666 | $1,164 | ||||||||||||||||||||||||||||||
| MSCR | 10,382 | 234 | — | — | 21,956 | 513 | 8,171 | 190 | ||||||||||||||||||||||||||||||
| MCIP | 10,382 | 161 | — | — | 21,956 | 376 | 24,131 | 518 | ||||||||||||||||||||||||||||||
| Lender risk-sharing | 168 | 17 | 500 | 46 | 796 | 83 | 592 | 60 | ||||||||||||||||||||||||||||||
| Less: UPB with more than one type of CRT | (10,382) | — | — | — | (21,956) | — | (24,131) | — | ||||||||||||||||||||||||||||||
| Total CRT issuance | $12,331 | $558 | $7,106 | $451 | $39,384 | $2,042 | $28,429 | $1,932 | ||||||||||||||||||||||||||||||
(1) Represents the UPB of the assets included in the associated reference pool or securitization trust, as applicable.
(2) For subordination, represents the UPB of the securities that are held by third parties at issuance and are subordinate to the securities we guarantee. For MSCR transactions, represents the UPB of securities held by third parties at issuance. For MCIP transactions, represents the aggregate limit of insurance purchased from third parties at issuance. For lender risk-sharing, represents the maximum amount of loss recovery that is available subject to the terms of counterparty agreements at issuance.
(3) The credit risk positions to which the maximum coverage applies may vary on a transaction-by-transaction basis.
Multifamily Mortgage Portfolio Credit Enhancement Coverage Outstanding
While we have obtained various forms of credit protection in connection with the acquisition, guarantee, and/or securitization of a loan or group of loans, our principal credit enhancement type has been subordination, which is created through our senior subordinate securitization transactions. Our outstanding maximum coverage provided by subordination in nonconsolidated VIEs was $34.4 billion and $37.4 billion, as of September 30, 2025 and December 31, 2024, respectively.
| Freddie Mac 3Q 2025 Form 10-Q | 28 | |||||||
| Management's Discussion and Analysis | Risk Management | |||||||
The table below presents the UPB and delinquency rates for both credit-enhanced and non-credit-enhanced loans underlying our Multifamily mortgage portfolio.
Table 23 - Credit-Enhanced and Non-Credit-Enhanced Loans Underlying Our Multifamily Mortgage Portfolio
| September 30, 2025 | December 31, 2024 | |||||||||||||||||||
| (Dollars in millions) | UPB | Delinquency Rate | UPB | Delinquency Rate | ||||||||||||||||
| Credit-enhanced: | ||||||||||||||||||||
| Subordination | $339,700 | 0.55 | % | $352,566 | 0.45 | % | ||||||||||||||
| MSCR/MCIP | 82,620 | 0.32 | 62,870 | 0.25 | ||||||||||||||||
| Other | 9,728 | 0.51 | 9,737 | 0.82 | ||||||||||||||||
| Total credit-enhanced | 432,048 | 0.51 | 425,173 | 0.43 | ||||||||||||||||
| Non-credit-enhanced | 47,916 | 0.51 | 41,462 | 0.15 | ||||||||||||||||
| Total | $479,964 | 0.51 | $466,635 | 0.40 | ||||||||||||||||
The Multifamily delinquency rate increased to 0.51% at September 30, 2025, primarily driven by an increase in delinquent floating rate loans and small balance loans. As of September 30, 2025, 90% of the delinquent loans in the Multifamily mortgage portfolio have some form of credit enhancement coverage.
The table below contains details on the loans underlying our Multifamily mortgage portfolio that are not credit-enhanced.
Table 24 - Credit Quality of Our Multifamily Mortgage Portfolio Without Credit Enhancement
| September 30, 2025 | December 31, 2024 | |||||||||||||||||||
| (Dollars in millions) | UPB | Delinquency Rate | UPB | Delinquency Rate | ||||||||||||||||
| Mortgage loans held-for-sale | $241 | — | % | $11,856 | — | % | ||||||||||||||
| Mortgage loans held-for-investment: | ||||||||||||||||||||
| Held by Freddie Mac | 27,528 | 0.25 | 14,589 | 0.33 | ||||||||||||||||
| Held by consolidated trusts | 16,517 | 1.06 | 12,125 | 0.11 | ||||||||||||||||
| Other mortgage-related guarantees | 3,630 | — | 2,892 | — | ||||||||||||||||
| Total | $47,916 | 0.51 | $41,462 | 0.15 | ||||||||||||||||
Credit Enhancement Recoveries
Our expected recovery receivable from freestanding credit enhancements was $0.1 billion as of both September 30, 2025 and December 31, 2024.
Counterparty Credit Risk
Single-Family Sellers and Servicers
On October 1, 2025, Rocket Companies, Inc., the parent company of Rocket Mortgage LLC, announced that it had completed its acquisition of Mr. Cooper Group Inc. As a result of the acquisition, we anticipate that our Single-Family servicing concentration with entities controlled by Rocket Companies will increase.
Market Risk
Overview
Our business segments have embedded exposure to market risk, which is the economic risk associated with adverse changes in interest rates, volatility, and spreads. Market risk can adversely affect future cash flows, or economic value, as well as earnings and net worth. The primary sources of interest-rate risk are from our investments in mortgage-related assets, non-mortgage assets (including U.S. Treasury securities), the debt we issue to fund these assets, and our Single-Family guarantees.
Interest-Rate Risk
Our primary interest-rate risk measures are duration gap and Portfolio Value Sensitivity (PVS). Duration gap measures the difference in price sensitivity to interest rate changes between our financial assets and liabilities and is expressed in months relative to the value of assets. PVS is an estimate of the change in the present value of the cash flows of our financial assets
| Freddie Mac 3Q 2025 Form 10-Q | 29 | |||||||
| Management's Discussion and Analysis | Risk Management | |||||||
and liabilities from an instantaneous shock to interest rates, assuming spreads are held constant and no rebalancing actions are undertaken. PVS is measured in two ways, one measuring the estimated sensitivity of our portfolio's value to a 50 bps parallel movement in interest rates (PVS-L) and the other to a nonparallel movement (PVS-YC), resulting from a 25 bps change in slope of the yield curve. While we believe that duration gap and PVS are useful risk management tools, they should be understood as estimates rather than as precise measurements.
Prior to 1Q 2025, our interest-rate risk limits required asset duration to match liability duration, net of derivatives. When capital increased, excess net assets were invested in investments with little to no duration, such as overnight reverse repurchase agreements, increasing our earnings sensitivity to short-term interest rates. Beginning in 1Q 2025, we updated our interest-rate risk limits to allow for longer-term investments, reducing our earnings sensitivity to changes in short-term interest rates. We continue to manage interest-rate risk related to financial instruments primarily funded by debt as before, targeting a low level of interest rate exposure as measured by our models. For all other financial instruments, we manage interest-rate risk to a target duration, which reduces our long-term earnings volatility related to changes in overnight rates. Such financial instruments may include U.S. Treasury securities, mortgage-related securities, repurchase agreements, and derivatives.
The tables below provide our duration gap, estimated point-in-time, and minimum and maximum PVS-L and PVS-YC results, and an average of the daily values and standard deviation. The table below also provides PVS-L estimated present value (gains) losses assuming an immediate 100 bps shift in the yield curve. The interest-rate sensitivity of a mortgage portfolio varies across a wide range of interest rates.
Table 25 - Duration Gap and PVS-YC and PVS-L Results Assuming Shifts of the Yield Curve
| September 30, 2025 | December 31, 2024 | |||||||||||||||||||||||||||||||
| Duration Gap | PVS-YC | PVS-L | Duration Gap | PVS-YC | PVS-L | |||||||||||||||||||||||||||
(Dollars in millions, duration gap in months) | 25 bps | 50 bps | 100 bps | 25 bps | 50 bps | 100 bps | ||||||||||||||||||||||||||
| Interest-rate risk related to: | ||||||||||||||||||||||||||||||||
| Financial instruments primarily funded by debt | 0.4 | $2 | $39 | $82 | 0.3 | $— | $6 | ($28) | ||||||||||||||||||||||||
All other financial instruments(1) | 16.8 | 37 | 547 | 1,139 | 0.2 | 1 | 5 | 10 | ||||||||||||||||||||||||
| Total | 4.1 | $36 | $586 | $1,221 | 0.3 | $2 | $11 | ($18) | ||||||||||||||||||||||||
| PVS | $36 | $586 | $1,221 | $2 | $11 | $— | ||||||||||||||||||||||||||
(1)The UPB was $73 billion as of September 30, 2025 and $64 billion as of December 31, 2024.
Table 26 - Duration Gap and PVS Results
| 3Q 2025 | 3Q 2024 | |||||||||||||||||||||||||
(Dollars in millions, duration gap in months) | Duration Gap | PVS-YC 25 bps | PVS-L 50 bps | Duration Gap | PVS-YC 25 bps | PVS-L 50 bps | ||||||||||||||||||||
| Average | 3.2 | $34 | $439 | 0.1 | $4 | $3 | ||||||||||||||||||||
| Minimum | 2.7 | 25 | 385 | (0.5) | — | — | ||||||||||||||||||||
| Maximum | 4.1 | 45 | 589 | 0.3 | 10 | 37 | ||||||||||||||||||||
| Standard deviation | 0.3 | 4 | 62 | 0.2 | 2 | 8 | ||||||||||||||||||||
| YTD 2025 | YTD 2024 | |||||||||||||||||||||||||
(Dollars in millions, duration gap in months) | Duration Gap | PVS-YC 25 bps | PVS-L 50 bps | Duration Gap | PVS-YC 25 bps | PVS-L 50 bps | ||||||||||||||||||||
| Average | 2.3 | $25 | $295 | 0.1 | $3 | $1 | ||||||||||||||||||||
| Minimum | — | 1 | — | (0.5) | — | — | ||||||||||||||||||||
| Maximum | 4.1 | 45 | 589 | 0.3 | 10 | 37 | ||||||||||||||||||||
| Standard deviation | 1.2 | 13 | 165 | 0.1 | 1 | 4 | ||||||||||||||||||||
When managing interest-rate risk related to financial instruments not funded primarily by debt, we also consider the overall income sensitivity attributable to these instruments, which we believe is an appropriate measure as we are targeting duration to reduce our long-term income volatility. We estimate income attributable to these instruments over a 12-month period, assuming the balance of these financial instruments stays constant. The estimate includes coupon interest income and expense, amortization income and expense, fair value changes, and the impact from our overall hedge accounting program. We then parallel shock rates up and down 100 bps to determine the volatility in income.
| Freddie Mac 3Q 2025 Form 10-Q | 30 | |||||||
| Management's Discussion and Analysis | Risk Management | |||||||
The table below presents the change in estimated income post-tax due to the impact of a parallel shift in rates on financial instruments not primarily funded by debt over the next 12 months relative to the baseline scenario.
Table 27 - Income Sensitivity on Financial Instruments Not Primarily Funded by Debt
| (In millions) | September 30, 2025 | September 30, 2024 | ||||||||||||
| +100 bps rate shift | $377 | $481 | ||||||||||||
| - 100 bps rate shift | (299) | (481) | ||||||||||||
Derivatives enable us to reduce our economic interest-rate risk exposure as we continue to align our derivatives portfolio with the changing duration of our economically hedged assets and liabilities. The table below shows that the PVS-L risk levels, assuming a 50 bps shift in the yield curve for the periods presented, would have been higher if we had not used derivatives.
Table 28 - PVS-L Results Before Derivatives and After Derivatives
| (In millions) | September 30, 2025 | December 31, 2024 | |||||||||
| PVS-L (50 bps): | |||||||||||
| Before derivatives | $3,125 | $2,006 | |||||||||
| After derivatives | 586 | 11 | |||||||||
| Effect of derivatives | (2,539) | (1,995) | |||||||||
GAAP Fair Value Sensitivity to Market Risk
The GAAP accounting treatment for our financial assets and liabilities (i.e., some are measured at amortized cost, while others are measured at fair value) creates variability in our GAAP earnings when interest rates and spreads change. We manage this variability of GAAP earnings, which may not reflect the economics of our business, using fair value hedge accounting. See MD&A - Consolidated Results of Operations and MD&A - Our Business Segments for additional information on the effect of changes in interest rates and market spreads on our financial results.
Interest Rate Related GAAP Fair Value Sensitivity
Our GAAP financial results are subject to significant earnings variability from period to period based on changes in market conditions.
In an effort to reduce our GAAP earnings variability and better align our GAAP results with the economics of our business, we elect to use hedge accounting for certain single-family mortgage loans and certain debt instruments. See Note 8 for additional information on hedge accounting.
GAAP Fair Value Sensitivity to Changes in Interest Rates
We evaluate a range of interest rate scenarios to determine the sensitivity of our earnings due to changes in interest rates and to determine our fair value hedge accounting strategies. The interest rate scenarios evaluated include parallel shifts in the yield curve in which interest rates increase or decrease by 100 bps, non-parallel shifts in the yield curve in which long-term interest rates increase or decrease by 100 bps, and non-parallel shifts in the yield curve in which short-term and medium-term interest rates increase or decrease by 100 bps. This evaluation identifies the net effect on comprehensive income from changes in fair value attributable to changes in interest rates for financial instruments measured at fair value, including the effects of fair value hedge accounting, for each of the identified scenarios. This evaluation does not include the net effect on comprehensive income from interest-rate sensitive items that are not measured at fair value (e.g., amortization of mortgage loan premiums and discounts, changes in fair value of held-for-sale mortgage loans for which we have not elected the fair value option, etc.) or from changes in our future contractual net interest income due to repricing of our interest-bearing assets and liabilities. The before-tax results of this evaluation are shown in the table below.
| Freddie Mac 3Q 2025 Form 10-Q | 31 | |||||||
| Management's Discussion and Analysis | Risk Management | |||||||
Table 29 - GAAP Fair Value Sensitivity to Changes in Interest Rates
| (In millions) | September 30, 2025 | September 30, 2024 | ||||||||||||
Interest rate scenarios(1) | ||||||||||||||
| Parallel yield curve shifts: | ||||||||||||||
| +100 bps | $58 | $52 | ||||||||||||
| -100 bps | (58) | (52) | ||||||||||||
| Non-parallel yield curve shifts - long-term interest rates: | ||||||||||||||
| +100 bps | 163 | 217 | ||||||||||||
| -100 bps | (163) | (217) | ||||||||||||
| Non-parallel yield curve shifts - short-term and medium-term interest rates: | ||||||||||||||
| +100 bps | (105) | (165) | ||||||||||||
| -100 bps | 105 | 165 | ||||||||||||
(1)The earnings sensitivity presented is calculated using the change in interest rates and net effective duration exposure.
The actual effect of changes in interest rates on our comprehensive income in any given period may vary based on a number of factors, including, but not limited to, the composition of our assets and liabilities, the actual changes in interest rates that are realized at different terms along the yield curve, and the effectiveness of our hedge accounting strategies. Even if implemented properly, our hedge accounting programs may not be effective in reducing earnings volatility, and our hedges may fail in any given future period, which could expose us to significant earnings variability in that period.
| Freddie Mac 3Q 2025 Form 10-Q | 32 | |||||||
| Management's Discussion and Analysis | Liquidity and Capital Resources | |||||||
LIQUIDITY AND CAPITAL RESOURCES
Our business activities require that we maintain adequate liquidity to meet our financial obligations as they come due and to meet the needs of customers in a timely and cost-efficient manner. We also must maintain adequate capital resources to avoid being placed into receivership by FHFA.
Liquidity
Primary Sources of Liquidity
The table below lists the sources of our liquidity, the balances as of the dates shown, and a brief description of their importance to Freddie Mac.
Table 30 - Liquidity Sources
| (In millions) | September 30, 2025(1) | December 31, 2024(1) | Description | ||||||||
| Other Investments Portfolio - Liquidity and Contingency Operating Portfolio | $140,038 | $134,405 | The liquidity and contingency operating portfolio, included within our other investments portfolio, is primarily used for short-term liquidity management. | ||||||||
| Mortgage-Related Investments Portfolio | 29,903 | 24,144 | The portion of our mortgage-related securities that can be pledged or sold for liquidity purposes. The amount of cash we may be able to raise from these activities may be substantially less than the balance. | ||||||||
(1)Represents carrying value for the liquidity and contingency operating portfolio, included within our other investments portfolio, and UPB for the portion of our mortgage-related securities that can be pledged as collateral or sold for liquidity purposes.
Other Investments Portfolio
Our other investments portfolio is important to our cash flow, collateral management, asset and liability management, and ability to provide liquidity and stability to the mortgage market.
Our liquidity and contingency operating portfolio primarily includes securities purchased under agreements to resell and non-mortgage-related securities. Our non-mortgage-related securities consist of U.S. Treasury securities and other investments that we could sell to provide us with an additional source of liquidity to fund our business operations. We also maintain non-interest-bearing deposits at the Federal Reserve Bank of New York and interest-bearing deposits at commercial banks. Our interest-bearing deposits at commercial banks totaled $4.3 billion and $5.1 billion as of September 30, 2025 and December 31, 2024, respectively. See MD&A - Our Portfolios - Investments Portfolio - Other Investments Portfolio for additional information about our other investments portfolio.
Mortgage-Related Investments Portfolio
We invest principally in mortgage-related investments, certain categories of which are largely unencumbered. Our primary source of liquidity among these mortgage assets is our holdings of agency securities. See MD&A - Our Portfolios - Investments Portfolio - Mortgage-Related Investments Portfolio for additional information about our mortgage loans and mortgage-related securities.
| Freddie Mac 3Q 2025 Form 10-Q | 33 | |||||||
| Management's Discussion and Analysis | Liquidity and Capital Resources | |||||||
Primary Sources of Funding
The table below lists the sources of our funding, the balances as of the dates shown, and a brief description of their importance to Freddie Mac.
Table 31 - Funding Sources
| (In millions) | September 30, 2025(1) | December 31, 2024(1) | Description | ||||||||
| Debt of Freddie Mac | $203,609 | $182,008 | Debt of Freddie Mac is used to fund our business activities. | ||||||||
| Debt of Consolidated Trusts | 3,175,464 | 3,122,941 | Debt of consolidated trusts is used primarily to fund our Single-Family guarantee activities. This type of debt is principally repaid by the cash flows of the associated mortgage loans. As a result, our repayment obligation is limited to amounts paid pursuant to our guarantee of principal and interest and to purchase modified or seriously delinquent loans from the trusts. | ||||||||
(1)Represents the carrying value of debt balances after consideration of offsetting arrangements.
Debt of Freddie Mac
We issue debt of Freddie Mac to fund our operations. Competition for funding can vary with economic, financial market, and regulatory environments. The amount, type, and term of debt issued is based on a variety of factors and is designed to meet our ongoing cash needs and to comply with our Liquidity Management Framework.
The table below summarizes the par value and the average rate of debt of Freddie Mac securities we issued or paid off, including regularly scheduled principal payments, payments resulting from calls, and payments for repurchases. We call, exchange, or repurchase our outstanding debt securities from time to time for a variety of reasons, including managing our funding composition and supporting the liquidity of our debt securities.
Table 32 - Debt of Freddie Mac Activity
| 3Q 2025 | 3Q 2024 | |||||||||||||||||||
| (Dollars in millions) | Par Value | Average Rate(1) | Par Value | Average Rate(1) | ||||||||||||||||
| Short-term: | ||||||||||||||||||||
| Beginning balance | $21,366 | 4.31 | % | $8,453 | 5.39 | % | ||||||||||||||
| Issuances | 40,389 | 4.22 | 43,219 | 5.24 | ||||||||||||||||
| Repayments | — | — | — | — | ||||||||||||||||
| Maturities | (23,264) | 4.33 | (37,830) | 5.38 | ||||||||||||||||
| Total short-term debt | 38,491 | 4.20 | 13,842 | 4.93 | ||||||||||||||||
| Long-term: | ||||||||||||||||||||
| Beginning balance | 176,782 | 3.76 | 160,039 | 3.47 | ||||||||||||||||
| Issuances | 40,190 | 4.42 | 40,093 | 5.14 | ||||||||||||||||
| Repayments | (29,327) | 4.85 | (26,838) | 5.60 | ||||||||||||||||
| Maturities | (18,722) | 1.56 | (8,762) | 2.72 | ||||||||||||||||
| Total long-term debt | 168,923 | 3.97 | 164,532 | 3.57 | ||||||||||||||||
| Total debt of Freddie Mac, net | $207,414 | 4.02 | % | $178,374 | 3.68 | % | ||||||||||||||
| Freddie Mac 3Q 2025 Form 10-Q | 34 | |||||||
| Management's Discussion and Analysis | Liquidity and Capital Resources | |||||||
| YTD 2025 | YTD 2024 | |||||||||||||||||||
| (Dollars in millions) | Par Value | Average Rate(1) | Par Value | Average Rate(1) | ||||||||||||||||
| Short-term: | ||||||||||||||||||||
| Beginning balance | $14,716 | 4.59 | % | $6,031 | 5.39 | % | ||||||||||||||
| Issuances | 124,447 | 4.28 | 75,922 | 5.29 | ||||||||||||||||
| Repayments | — | — | — | — | ||||||||||||||||
| Maturities | (100,672) | 4.36 | (68,111) | 5.36 | ||||||||||||||||
| Total short-term debt | 38,491 | 4.20 | 13,842 | 4.93 | ||||||||||||||||
| Long-term: | ||||||||||||||||||||
| Beginning balance | 172,942 | 3.65 | 168,009 | 3.31 | ||||||||||||||||
| Issuances | 92,326 | 4.58 | 69,976 | 5.31 | ||||||||||||||||
| Repayments | (64,413) | 4.98 | (50,780) | 5.62 | ||||||||||||||||
| Maturities | (31,932) | 1.95 | (22,673) | 2.41 | ||||||||||||||||
| Total long-term debt | 168,923 | 3.97 | 164,532 | 3.57 | ||||||||||||||||
| Total debt of Freddie Mac, net | $207,414 | 4.02 | % | $178,374 | 3.68 | % | ||||||||||||||
(1)Average rate is weighted based on par value.
As of September 30, 2025, our aggregate indebtedness pursuant to the Purchase Agreement was $207.4 billion, which was below the current $270.0 billion debt cap limit. Our aggregate indebtedness calculation primarily includes the par value of short- and long-term debt.
Maturity and Redemption Dates
The table below presents the par value of debt of Freddie Mac by contractual maturity date and earliest redemption date. The earliest redemption date includes callable debt at its earliest call date, and the contractual maturity date includes both callable debt and non-callable debt as of their respective maturity dates.
Table 33 - Maturity and Redemption Dates
| As of September 30, 2025 | As of December 31, 2024 | |||||||||||||||||||
| (In millions) | Contractual Maturity Date | Earliest Redemption Date | Contractual Maturity Date | Earliest Redemption Date | ||||||||||||||||
Debt of Freddie Mac(1): | ||||||||||||||||||||
| 1 year or less | $83,909 | $159,976 | $62,951 | $138,053 | ||||||||||||||||
| 1 year through 2 years | 43,186 | 31,792 | 45,007 | 36,281 | ||||||||||||||||
| 2 years through 3 years | 23,378 | 3,440 | 20,068 | 370 | ||||||||||||||||
| 3 years through 4 years | 6,822 | 1,245 | 8,307 | 345 | ||||||||||||||||
| 4 years through 5 years | 31,088 | 995 | 28,579 | 2,055 | ||||||||||||||||
| Thereafter | 18,295 | 9,230 | 21,423 | 9,231 | ||||||||||||||||
STACR and SCR debt(2) | 736 | 736 | 1,324 | 1,324 | ||||||||||||||||
| Total debt of Freddie Mac | $207,414 | $207,414 | $187,659 | $187,659 | ||||||||||||||||
(1)As of September 30, 2025 and December 31, 2024, excludes $5.5 billion and $8.2 billion, respectively, of payables related to securities sold under agreements to repurchase that we offset against receivables related to securities purchased under agreements to resell on our condensed consolidated balance sheets.
(2)STACR debt notes and SCR debt notes are subject to prepayment risk as their payments are based upon the performance of a reference pool of mortgage assets that may be prepaid by the related mortgage borrowers at any time generally without penalty and are, therefore, included as a separate category in the table.
Debt of Consolidated Trusts
The largest component of debt on our condensed consolidated balance sheets is debt of consolidated trusts, which relates to securitization transactions that we consolidate for accounting purposes. We primarily issue this type of debt by securitizing mortgage loans to finance our guarantee activities.
| Freddie Mac 3Q 2025 Form 10-Q | 35 | |||||||
| Management's Discussion and Analysis | Liquidity and Capital Resources | |||||||
The table below shows the issuance and extinguishment activity for the debt of consolidated trusts.
Table 34 - Debt of Consolidated Trusts Activity
| (In millions) | 3Q 2025 | 3Q 2024 | YTD 2025 | YTD 2024 | |||||||||||||
| Beginning balance | $3,120,601 | $3,026,859 | $3,085,981 | $2,999,893 | |||||||||||||
| Issuances | 142,389 | 131,023 | 393,059 | 330,318 | |||||||||||||
| Repayments and extinguishments | (122,482) | (105,257) | (338,532) | (277,586) | |||||||||||||
| Ending balance | 3,140,508 | 3,052,625 | 3,140,508 | 3,052,625 | |||||||||||||
| Unamortized premiums and discounts | 34,956 | 39,515 | 34,956 | 39,515 | |||||||||||||
| Debt of consolidated trusts | $3,175,464 | $3,092,140 | $3,175,464 | $3,092,140 | |||||||||||||
Off-Balance Sheet Arrangements
We enter into certain business arrangements that are not recorded on our condensed consolidated balance sheets or that may be recorded in amounts that differ from the full contractual or notional amount of the transaction that affect our short- and long-term liquidity needs. Our off-balance sheet arrangements primarily consist of guarantees and commitments. Certain of these arrangements present credit risk exposure. See Note 2 and Note 4 for additional information on these transactions. See MD&A - Risk Management - Credit Risk for additional information on our credit risk exposure on off-balance sheet arrangements.
Cash Flows
Cash and cash equivalents (including restricted cash and cash equivalents) decreased from $4.9 billion as of September 30, 2024 to $4.6 billion as of September 30, 2025.
| Freddie Mac 3Q 2025 Form 10-Q | 36 | |||||||
| Management's Discussion and Analysis | Liquidity and Capital Resources | |||||||
Capital Resources
The table below presents activity related to our net worth.
Table 35 - Net Worth Activity
| (In millions) | 3Q 2025 | 3Q 2024 | YTD 2025 | YTD 2024 | ||||||||||||||||
| Beginning balance | $64,811 | $53,223 | $59,575 | $47,722 | ||||||||||||||||
| Comprehensive income | 2,789 | 3,167 | 8,025 | 8,668 | ||||||||||||||||
| Capital draw from Treasury | — | — | — | — | ||||||||||||||||
| Senior preferred stock dividends declared | — | — | — | — | ||||||||||||||||
| Total equity / net worth | $67,600 | $56,390 | $67,600 | $56,390 | ||||||||||||||||
| Remaining Treasury funding commitment | $140,162 | $140,162 | $140,162 | $140,162 | ||||||||||||||||
| Aggregate draws under Purchase Agreement | 71,648 | 71,648 | 71,648 | 71,648 | ||||||||||||||||
| Aggregate cash dividends paid to Treasury | 119,680 | 119,680 | 119,680 | 119,680 | ||||||||||||||||
| Liquidation preference of the senior preferred stock | 137,459 | 125,871 | 137,459 | 125,871 | ||||||||||||||||
ERCF
For a description of our capital requirements under the ERCF, including the amended provisions, see the MD&A - Regulation and Supervision section in our 2024 Annual Report.
Capital Metrics
The table below presents the components of our regulatory capital.
Table 36 - Regulatory Capital Components
| (In millions) | September 30, 2025 | December 31, 2024 | |||||||||||||||||||||
| Total equity | $67,600 | $59,575 | |||||||||||||||||||||
| Less: | |||||||||||||||||||||||
| Senior preferred stock | 72,648 | 72,648 | |||||||||||||||||||||
| Preferred stock | 14,109 | 14,109 | |||||||||||||||||||||
| Common equity | (19,157) | (27,182) | |||||||||||||||||||||
| Less: Deferred tax assets arising from temporary differences that exceed 10% of CET1 capital and other regulatory adjustments | 4,845 | 5,123 | |||||||||||||||||||||
| Common equity Tier 1 capital | (24,002) | (32,305) | |||||||||||||||||||||
| Add: Preferred stock | 14,109 | 14,109 | |||||||||||||||||||||
| Tier 1 capital | (9,893) | (18,196) | |||||||||||||||||||||
| Tier 2 capital adjustments | — | — | |||||||||||||||||||||
| Adjusted total capital | ($9,893) | ($18,196) | |||||||||||||||||||||
The table below presents the components of our statutory capital.
Table 37 - Statutory Capital Components
| (In millions) | September 30, 2025 | December 31, 2024 | |||||||||||||||||||||
| Total equity | $67,600 | $59,575 | |||||||||||||||||||||
| Less: | |||||||||||||||||||||||
| Senior preferred stock | 72,648 | 72,648 | |||||||||||||||||||||
| AOCI, net of taxes | 44 | (27) | |||||||||||||||||||||
| Core capital | (5,092) | (13,046) | |||||||||||||||||||||
General allowance for foreclosure losses(1) | 8,367 | 7,239 | |||||||||||||||||||||
| Total capital | $3,275 | ($5,807) | |||||||||||||||||||||
(1)Represents our allowance for credit losses.
| Freddie Mac 3Q 2025 Form 10-Q | 37 | |||||||
| Management's Discussion and Analysis | Liquidity and Capital Resources | |||||||
The table below presents our capital metrics under the ERCF.
Table 38 - Capital Metrics Under ERCF
| (In billions) | September 30, 2025 | December 31, 2024 | ||||||||||||
| Adjusted total assets | $3,885 | $3,817 | ||||||||||||
| Risk-weighted assets (standardized approach): | ||||||||||||||
| Credit risk | 1,038 | 988 | ||||||||||||
| Market risk | 61 | 58 | ||||||||||||
| Operational risk | 73 | 72 | ||||||||||||
| Total risk-weighted assets | $1,172 | $1,118 | ||||||||||||
| (In billions) | September 30, 2025 | December 31, 2024 | ||||||||||||
| Stress capital buffer | $29 | $28 | ||||||||||||
| Stability capital buffer | 30 | 29 | ||||||||||||
| Countercyclical capital buffer amount | — | — | ||||||||||||
| PCCBA | $59 | $57 | ||||||||||||
| PLBA | $15 | $14 | ||||||||||||
| September 30, 2025 | |||||||||||||||||
| (Dollars in billions) | Minimum Capital Requirement | Applicable Buffer | Capital Requirement (Including Buffer(1)) | Available Capital (Deficit) | Capital Shortfall | ||||||||||||
| Risk-based capital amounts: | |||||||||||||||||
| Total capital | $94 | N/A | $94 | $3 | ($91) | ||||||||||||
| CET1 capital | 53 | $59 | 112 | (24) | (136) | ||||||||||||
| Tier 1 capital | 70 | 59 | 129 | (10) | (139) | ||||||||||||
| Adjusted total capital | 94 | 59 | 153 | (10) | (163) | ||||||||||||
Risk-based capital ratios(2): | |||||||||||||||||
| Total capital | 8.0 | % | N/A | 8.0 | % | 0.3 | % | (7.7) | % | ||||||||
| CET1 capital | 4.5 | 5.1 | % | 9.6 | (2.0) | (11.6) | |||||||||||
| Tier 1 capital | 6.0 | 5.1 | 11.1 | (0.8) | (11.9) | ||||||||||||
| Adjusted total capital | 8.0 | 5.1 | 13.1 | (0.8) | (13.9) | ||||||||||||
| Leverage capital amounts: | |||||||||||||||||
| Core capital | $97 | N/A | $97 | ($5) | ($102) | ||||||||||||
| Tier 1 capital | 97 | $15 | 112 | (10) | (122) | ||||||||||||
Leverage capital ratios(3): | |||||||||||||||||
| Core capital | 2.5 | % | N/A | 2.5 | % | (0.1) | % | (2.6) | % | ||||||||
| Tier 1 capital | 2.5 | 0.4 | % | 2.9 | (0.3) | (3.2) | |||||||||||
| Freddie Mac 3Q 2025 Form 10-Q | 38 | |||||||
| Management's Discussion and Analysis | Liquidity and Capital Resources | |||||||
| December 31, 2024 | |||||||||||||||||
| (Dollars in billions) | Minimum Capital Requirement | Applicable Buffer | Capital Requirement (Including Buffer(1)) | Available Capital (Deficit) | Capital Shortfall | ||||||||||||
| Risk-based capital amounts: | |||||||||||||||||
| Total capital | $89 | N/A | $89 | ($6) | ($95) | ||||||||||||
| CET1 capital | 50 | $57 | 107 | (32) | (139) | ||||||||||||
| Tier 1 capital | 67 | 57 | 124 | (18) | (142) | ||||||||||||
| Adjusted total capital | 89 | 57 | 146 | (18) | (164) | ||||||||||||
Risk-based capital ratios(2): | |||||||||||||||||
| Total capital | 8.0 | % | N/A | 8.0 | % | (0.5) | % | (8.5) | % | ||||||||
| CET1 capital | 4.5 | 5.1 | % | 9.6 | (2.9) | (12.5) | |||||||||||
| Tier 1 capital | 6.0 | 5.1 | 11.1 | (1.6) | (12.7) | ||||||||||||
| Adjusted total capital | 8.0 | 5.1 | 13.1 | (1.6) | (14.7) | ||||||||||||
| Leverage capital amounts: | |||||||||||||||||
| Core capital | $95 | N/A | $95 | ($13) | ($108) | ||||||||||||
| Tier 1 capital | 95 | $14 | 109 | (18) | (127) | ||||||||||||
Leverage capital ratios(3): | |||||||||||||||||
| Core capital | 2.5 | % | N/A | 2.5 | % | (0.3) | % | (2.8) | % | ||||||||
| Tier 1 capital | 2.5 | 0.4 | % | 2.9 | (0.5) | (3.4) | |||||||||||
(1)PCCBA for risk-based capital and PLBA for leverage capital.
(2)As a percentage of RWA.
(3)As a percentage of ATA.
At September 30, 2025, our maximum payout ratio under the ERCF was 0.0%.
See Note 15 for additional information on our capital amounts and ratios under the ERCF.
| Freddie Mac 3Q 2025 Form 10-Q | 39 | |||||||
| Management's Discussion and Analysis | Critical Accounting Estimates | |||||||
CRITICAL ACCOUNTING ESTIMATES
Our critical accounting estimates and policies relate to the Single-Family allowance for credit losses. For additional information about our critical accounting estimates and significant accounting policies, see Note 1 and MD&A - Critical Accounting Estimates in our 2024 Annual Report.
Single-Family Allowance for Credit Losses
The Single-Family allowance for credit losses represents our estimate of expected credit losses over the contractual term of the mortgage loans. The Single-Family allowance for credit losses pertains to all single-family loans classified as held-for-investment on our condensed consolidated balance sheets.
Determining the appropriateness of the Single-Family allowance for credit losses is a complex process that is subject to numerous estimates and assumptions requiring significant management judgment about matters that involve a high degree of subjectivity. This process involves the use of models that require us to make judgments about matters that are difficult to predict.
Changes in forecasted house price growth rates can have a significant effect on our allowance for credit losses estimates. The table below shows our nationwide forecasted house price growth rates that were used in determining our allowance for credit losses. See Note 5 for additional information regarding our current period provision for credit losses.
Table 39 - Forecasted House Price Growth Rates
| September 30, 2025 | December 31, 2024 | ||||||||||
| 12-Month Forward | 0.7 | % | 2.7 | % | |||||||
| 13- to 24-Month Forward | 0.9 | 3.3 | |||||||||
| Freddie Mac 3Q 2025 Form 10-Q | 40 | |||||||
| Management's Discussion and Analysis | Regulation and Supervision | |||||||
REGULATION AND SUPERVISION
In addition to FHFA’s oversight as our Conservator, we are subject to regulation and supervision by FHFA under our Charter and the GSE Act, and regulation by certain other government agencies. FHFA has the authority to direct changes to our processes and require us to take or refrain from actions that may affect our business. Additionally, regulatory activities by other government agencies can indirectly impact us, even if we are not directly subject to their regulation or oversight. For example, changes in regulations affecting the purchase or servicing of mortgages can impact our operations.
Federal Housing Finance Agency
From time to time, FHFA in its power both as our Conservator and regulator has rescinded or modified certain guidance, directives, and other requirements affecting the Enterprises. FHFA may continue modifying, rescinding, or withdrawing, or changing its approach to implementation and enforcement of, guidance, directives, and other requirements relating to the Enterprises. The impact of these and any similar future actions taken by FHFA are uncertain at this time.
2025 Dodd-Frank Stress Test Results
FHFA requires the Enterprises to conduct annual stress tests to assess capital adequacy under FHFA's rule implementing the Dodd-Frank Act. In August 2024, FHFA temporarily waived the requirement that we publish our 2024 stress test results. On August 15, 2025, we published on our website the results of the severely adverse scenarios for 2024 and 2025. Those results, and those of previous years, can be found at www.freddiemac.com/investors/resources.
Low Income Housing Tax Credits Investments
In August, FHFA announced that it had doubled the amount of equity that we can invest in LIHTC properties from $1 billion to $2 billion each year and designated certain requirements for the level of those investments that should be dedicated to transactions that have difficulty attracting investments, including those that meet the needs of Duty to Serve rural markets.
Proposed Affordable Housing Goals for 2026-2028
In October 2025, FHFA published a proposed rule that would establish affordable housing goals for the Enterprises for 2026 through 2028. The proposed rule also combines the two subgoals for low-income census tracts and minority census tracts into a single low-income areas subgoal.
Affordable Housing Goal Results
In October 2025, FHFA informed us that we achieved all of our single-family and multifamily goals and subgoals for 2024. Our performance on the goals for 2024 and 2023, as determined by FHFA, is set forth in the table below.
Table 40 - 2024 and 2023 Affordable Housing Goals Results
| 2024 | 2023 | |||||||||||||||||||||||||
| Affordable Housing Goals | Benchmark Level | Market Level | Results | Benchmark Level | Market Level | Results | ||||||||||||||||||||
| Single-Family: | ||||||||||||||||||||||||||
| Low-income home purchase goal | 28 | % | 25.5 | % | 26.6 | % | 28 | % | 26.3 | % | 28.5 | % | ||||||||||||||
| Very low-income home purchase goal | 7 | 6.0 | 6.1 | 7 | 6.5 | 6.8 | ||||||||||||||||||||
Low-income areas home purchase goal(1) | 19 | 27.9 | 28.0 | 20 | 28.1 | 29.5 | ||||||||||||||||||||
| Minority census tracts home purchase subgoal | 10 | 11.9 | 12.0 | 10 | 12.2 | 13.2 | ||||||||||||||||||||
| Low-income census tracts home purchase subgoal | 4 | 9.9 | 9.2 | 4 | 9.8 | 9.4 | ||||||||||||||||||||
| Low-income refinance goal | 26 | 34.8 | 33.0 | 26 | 40.3 | 43.2 | ||||||||||||||||||||
| Multifamily: | ||||||||||||||||||||||||||
| Low-income goal | 61 | % | N/A | 65.3 | % | 61 | % | N/A | 67.1 | % | ||||||||||||||||
| Very low-income subgoal | 12 | N/A | 15.3 | 12 | N/A | 20.6 | ||||||||||||||||||||
| Small multifamily (5-50 units) low-income subgoal | 2.5 | N/A | 3.4 | 2.5 | N/A | 4.1 | ||||||||||||||||||||
(1)The low-income areas home purchase goal benchmark level is the sum of (1) the minority census tracts home purchase subgoal, (2) the low-income census tracts home purchase subgoal, and (3) a disaster areas increment set in accordance with existing practice. Each year, FHFA notifies Freddie Mac by letter of the disaster areas increment for that year only. The disaster areas increment for 2024 was set at 5% and 6% for 2023.
| Freddie Mac 3Q 2025 Form 10-Q | 41 | |||||||
| Management's Discussion and Analysis | Forward-Looking Statements | |||||||
FORWARD-LOOKING STATEMENTS
We regularly communicate information concerning our business activities to investors, the news media, securities analysts, and others as part of our normal operations. Some of these communications, including this Form 10-Q, contain "forward-looking statements." Examples of forward-looking statements include, but are not limited to, statements pertaining to the conservatorship, our current expectations and objectives for the Single-Family and Multifamily segments of our business, our efforts to assist the housing market, our liquidity and capital management, economic and market conditions and trends including, but not limited to, changes in house prices and house price forecasts, our market coverage, the effect of legislative and regulatory developments, judicial rulings, and new accounting guidance, the credit quality of loans we own or guarantee, the costs and benefits of our CRT transactions, the impact of banking crises or failures, the effects of natural disasters or catastrophic events and actions taken in response thereto on our business, and our results of operations and financial condition. Forward-looking statements involve known and unknown risks and uncertainties, some of which are beyond our control. Forward-looking statements are often accompanied by, and identified with, terms such as "could," "may," "will," "believe," "expect," "anticipate," "forecast," and similar phrases. These statements are not historical facts, but rather represent our expectations based on current information, plans, judgments, assumptions, estimates, and projections. Actual results may differ significantly from those described in or implied by such forward-looking statements due to various factors and uncertainties, including those described in the Risk Factors section in our 2024 Annual Report, and including, without limitation, the following:
n The actions the federal government (including FHFA, Treasury, and Congress) and state governments may take, require us to take, or restrict us from taking, including actions regarding our operations, access to affordable and sustainable housing, such as programs to implement the expectations in FHFA's Conservatorship Scorecards, and other objectives for us;
n Changes in economic and market conditions, including trade laws or policies such as tariffs, volatility in the financial services industry, changes in employment rates, immigration policy, inflation, interest rates, spreads, and house prices;
n Changes in the fiscal and monetary policies of the Federal Reserve, including changes in target interest rates and in the amount of agency MBS and agency CMBS held by the Federal Reserve;
n The effect of the restrictions on our business due to the conservatorship and the Purchase Agreement;
n The impact of any changes in our credit ratings or those of the U.S. government;
n Changes in our Charter, applicable legislative or regulatory requirements (including any legislative or executive action affecting the future status of our company), or the Purchase Agreement;
n Changes to our capital requirements and potential effects of such changes on our business strategies;
n Changes in tax laws;
n Changes in privacy and cybersecurity laws and regulations;
n Changes in accounting policies, practices, standards, or guidance;
n Changes in the U.S. mortgage market, including the supply of houses available for sale, the supply of multifamily rental housing, and changes in the supply and type of loan products;
n The success of our efforts to mitigate our losses;
n The success of our strategy to transfer mortgage credit risk;
n Our ability to maintain adequate liquidity to fund our operations;
n Our ability to maintain the security and resiliency of our operational systems and infrastructure, including against cybersecurity incidents or other security incidents, whether due to insider error or malfeasance or system errors or vulnerabilities in our or our third parties' systems;
n Our ability to effectively execute our business strategies, implement significant changes, and improve efficiency;
n The adequacy of our risk management framework, including the adequacy of our regulatory capital framework prescribed by FHFA and internal models for measuring risk;
n Our ability to manage mortgage credit risk, including the effect of changes in underwriting and servicing practices;
n Changes in credit reporting at the credit reporting bureaus due to regulatory and legal developments, as well as lender practices;
n Our ability to limit or manage our economic exposure and GAAP earnings exposure to interest-rate volatility and spread volatility, including the availability of derivative financial instruments needed for interest-rate and spread risk management purposes and our ability to apply hedge accounting;
n Our operational ability to issue new securities, make timely and correct payments on securities, and provide initial and ongoing disclosures;
n Our reliance on U.S. Financial Technology, LLC (formerly known as Common Securitization Solutions, LLC) and the CSP for the operation of the majority of our Single-Family securitization activities, limits on our influence over U.S. Financial
| Freddie Mac 3Q 2025 Form 10-Q | 42 | |||||||
| Management's Discussion and Analysis | Forward-Looking Statements | |||||||
Technology, LLC Board decisions, and any additional changes FHFA may require in our relationship with, or support of, U.S. Financial Technology, LLC;
n Performance of and changes in the methodologies, models, assumptions, and estimates we use to prepare our financial statements, make business decisions, and manage risks;
n Changes in investor demand for our debt or mortgage-related securities;
n Our ability to maintain market acceptance of the UMBS, including our ability to maintain alignment of the prepayment speeds and pricing performance of our and Fannie Mae's respective UMBS;
n Changes in the practices or performance of loan originators, servicers, property managers, investors, insurers, and other participants in the secondary mortgage market including as a result of the use and/or regulation of AI technologies or other emerging technologies;
n Competition from other market participants, which could affect the pricing we offer for and the performance of our mortgage-related products, the credit characteristics of the loans we purchase, and our ability to meet our affordable housing goals and other mandated activities;
n The availability of critical third parties, or their vendors and other business partners, to deliver products or services, or to manage risks, including cybersecurity risk, effectively;
n The occurrence of a catastrophic event or natural disaster in areas in which our offices, significant portions of our total mortgage portfolio, or the offices of critical third parties are located, and for which we may be uninsured or significantly underinsured; and
n Other factors and assumptions described in this Form 10-Q and our 2024 Annual Report, including in the MD&A section.
Forward-looking statements are made only as of the date of this Form 10-Q, and we undertake no obligation to update any forward-looking statements we make to reflect events or circumstances occurring after the date of this Form 10-Q.
| Freddie Mac 3Q 2025 Form 10-Q | 43 | |||||||
| Financial Statements | ||||||||
Financial Statements | ||||||||||||||
| Freddie Mac 3Q 2025 Form 10-Q | 44 | |||||||
| Financial Statements | Condensed Consolidated Statements of Income and Comprehensive Income | ||||
FREDDIE MAC
Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited)
(In millions, except share-related amounts) | 3Q 2025 | 3Q 2024 | YTD 2025 | YTD 2024 | ||||||||||||||||
| Net interest income | ||||||||||||||||||||
| Interest income | $ | $ | $ | $ | ||||||||||||||||
| Interest expense | ( | ( | ( | ( | ||||||||||||||||
| Net interest income | ||||||||||||||||||||
| Non-interest income | ||||||||||||||||||||
| Guarantee income | ||||||||||||||||||||
| Investment gains (losses), net | ( | |||||||||||||||||||
| Other income | ||||||||||||||||||||
| Non-interest income | ||||||||||||||||||||
| Net revenues | ||||||||||||||||||||
| (Provision) benefit for credit losses | ( | ( | ( | |||||||||||||||||
| Non-interest expense | ||||||||||||||||||||
| Salaries and employee benefits | ( | ( | ( | ( | ||||||||||||||||
| Professional services, technology, and occupancy | ( | ( | ( | ( | ||||||||||||||||
| Credit enhancement expense | ( | ( | ( | ( | ||||||||||||||||
| Legislative and regulatory assessments | ( | ( | ( | ( | ||||||||||||||||
| Other expense | ( | ( | ( | ( | ||||||||||||||||
| Non-interest expense | ( | ( | ( | ( | ||||||||||||||||
| Income before income tax expense | ||||||||||||||||||||
| Income tax expense | ( | ( | ( | ( | ||||||||||||||||
| Net income | ||||||||||||||||||||
| Other comprehensive income (loss), net of taxes and reclassification adjustments | ||||||||||||||||||||
| Comprehensive income | $ | $ | $ | $ | ||||||||||||||||
| Net income | $ | $ | $ | $ | ||||||||||||||||
| Amounts attributable to senior preferred stock | ( | ( | ( | ( | ||||||||||||||||
| Net income (loss) attributable to common stockholders | ($ | ($ | ($ | ($ | ||||||||||||||||
| Net income (loss) per common share | $ | ($ | ($ | ($ | ||||||||||||||||
| Weighted average common shares (in millions) | ||||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
| Freddie Mac 3Q 2025 Form 10-Q | 45 | |||||||
| Financial Statements | Condensed Consolidated Balance Sheets | ||||
FREDDIE MAC
Condensed Consolidated Balance Sheets (Unaudited)
| September 30, | December 31, | ||||||||||
(In millions, except share-related amounts) | 2025 | 2024 | |||||||||
| Assets | |||||||||||
Cash and cash equivalents (includes $ | $ | $ | |||||||||
| Securities purchased under agreements to resell | |||||||||||
| Investment securities, at fair value | |||||||||||
Mortgage loans held-for-sale (includes $ | |||||||||||
Mortgage loans held-for-investment (net of allowance for credit losses of $ | |||||||||||
| Accrued interest receivable | |||||||||||
| Deferred tax assets, net | |||||||||||
Other assets (includes $ | |||||||||||
| Total assets | $ | $ | |||||||||
| Liabilities and equity | |||||||||||
| Liabilities | |||||||||||
| Accrued interest payable | $ | $ | |||||||||
Debt (includes $ | |||||||||||
Other liabilities (includes $ | |||||||||||
| Total liabilities | |||||||||||
| Commitments and contingencies | |||||||||||
| Equity | |||||||||||
Senior preferred stock (liquidation preference of $ | |||||||||||
| Preferred stock, at redemption value | |||||||||||
Common stock, $ | |||||||||||
| Retained earnings | ( | ( | |||||||||
| AOCI, net of taxes, related to: | |||||||||||
| Available-for-sale securities | |||||||||||
| Other | ( | ( | |||||||||
| AOCI, net of taxes | ( | ||||||||||
Treasury stock, at cost, | ( | ( | |||||||||
Total equity | |||||||||||
| Total liabilities and equity | $ | $ | |||||||||
The table below presents the carrying value and classification of the assets and liabilities related to consolidated VIEs on our condensed consolidated balance sheets.
| September 30, | December 31, | ||||||||||
| (In millions) | 2025 | 2024 | |||||||||
| Assets | |||||||||||
Cash and cash equivalents (includes $ | $ | $ | |||||||||
| Securities purchased under agreements to resell | |||||||||||
| Investment securities, at fair value | |||||||||||
| Mortgage loans held-for-investment, net | |||||||||||
| Accrued interest receivable | |||||||||||
| Other assets | |||||||||||
| Total assets of consolidated VIEs | $ | $ | |||||||||
| Liabilities | |||||||||||
| Accrued interest payable | $ | $ | |||||||||
| Debt | |||||||||||
| Total liabilities of consolidated VIEs | $ | $ | |||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
| Freddie Mac 3Q 2025 Form 10-Q | 46 | |||||||
| Financial Statements | Condensed Consolidated Statements of Equity | ||||
FREDDIE MAC
Condensed Consolidated Statements of Equity (Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
(In millions) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||
| Senior preferred stock | ||||||||||||||||||||
| Balance at beginning of period and September 30 | $ | $ | $ | $ | ||||||||||||||||
| Preferred stock, at redemption value | ||||||||||||||||||||
| Balance at beginning of period and September 30 | ||||||||||||||||||||
| Common stock, at par value | ||||||||||||||||||||
| Balance at beginning of period and September 30 | ||||||||||||||||||||
| Retained earnings | ||||||||||||||||||||
| Balance at beginning of period | ( | ( | ( | ( | ||||||||||||||||
| Net income | ||||||||||||||||||||
| Balance at September 30 | ( | ( | ( | ( | ||||||||||||||||
| AOCI, net of tax | ||||||||||||||||||||
| Balance at beginning of period | ( | ( | ( | |||||||||||||||||
Changes in net unrealized gains (losses) on available-for-sale securities (net of taxes of $ | ||||||||||||||||||||
Reclassification adjustment for (gains) losses on available-for-sale securities included in net income (net of taxes of $ $ | ( | ( | ||||||||||||||||||
Other (net of taxes of $ $ | ( | |||||||||||||||||||
| Balance at September 30 | ||||||||||||||||||||
| Treasury stock, at cost | ||||||||||||||||||||
| Balance at beginning of period and September 30 | ( | ( | ( | ( | ||||||||||||||||
| Total equity | $ | $ | $ | $ | ||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
| Freddie Mac 3Q 2025 Form 10-Q | 47 | |||||||
| Financial Statements | Condensed Consolidated Statements of Cash Flows | ||||
FREDDIE MAC
Condensed Consolidated Statements of Cash Flows (Unaudited)
| (In millions) | YTD 2025 | YTD 2024 | |||||||||
| Net cash provided by (used in) operating activities | $ | $ | |||||||||
| Cash flows from investing activities | |||||||||||
| Investment securities: | |||||||||||
| Purchases | ( | ( | |||||||||
| Proceeds from sales | |||||||||||
| Proceeds from maturities and repayments | |||||||||||
| Mortgage loans acquired held-for-investment: | |||||||||||
| Purchases | ( | ( | |||||||||
| Proceeds from sales | |||||||||||
| Proceeds from repayments | |||||||||||
| Advances under secured lending arrangements | ( | ( | |||||||||
| Net (increase) decrease in securities purchased under agreements to resell | |||||||||||
| Cash flows related to derivatives | ( | ||||||||||
| Other, net | ( | ( | |||||||||
| Net cash provided by (used in) investing activities | |||||||||||
| Cash flows from financing activities | |||||||||||
| Debt of consolidated trusts: | |||||||||||
| Proceeds from issuance | |||||||||||
| Repayments and redemptions | ( | ( | |||||||||
| Borrowings with original maturity of more than three months: | |||||||||||
| Proceeds from issuance | |||||||||||
| Repayments | ( | ( | |||||||||
| Net increase (decrease) in: | |||||||||||
Borrowings with original maturity of three months or less | |||||||||||
| Securities sold under agreements to repurchase | ( | ( | |||||||||
| Other, net | ( | ( | |||||||||
| Net cash provided by (used in) financing activities | ( | ( | |||||||||
| Net increase (decrease) in cash and cash equivalents (includes restricted cash and cash equivalents) | ( | ( | |||||||||
| Cash and cash equivalents (includes restricted cash and cash equivalents) at the beginning of year | |||||||||||
| Cash and cash equivalents (includes restricted cash and cash equivalents) at end of period | $ | $ | |||||||||
| Supplemental cash flow information | |||||||||||
| Cash paid for: | |||||||||||
| Debt interest | $ | $ | |||||||||
| Income taxes | |||||||||||
| Non-cash investing and financing activities (Notes 3 and 6) | |||||||||||
| Freddie Mac 3Q 2025 Form 10-Q | 48 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 1 | ||||
Notes to Condensed Consolidated Financial Statements
NOTE 1
Summary of Significant Accounting Policies
Freddie Mac is a GSE chartered by Congress in 1970, with a mission to provide liquidity, stability, and affordability to the U.S. housing market. We are regulated by FHFA, the SEC, HUD, and Treasury, and are currently operating under the conservatorship of FHFA. The conservatorship and related matters significantly affect our management, business activities, financial condition, and results of operations. In connection with our entry into conservatorship, we entered into the Purchase Agreement with Treasury, under which we issued Treasury both senior preferred stock and a warrant to purchase common stock. Our Purchase Agreement with Treasury is critical to keeping us solvent and avoiding the appointment of a receiver by FHFA under statutory mandatory receivership provisions. We believe the support provided by Treasury pursuant to the Purchase Agreement currently enables us to have adequate liquidity to conduct normal business activities. For more information on the conservatorship, the roles of FHFA and Treasury, and the Purchase Agreement, see our 2024 Annual Report. Throughout our unaudited condensed consolidated financial statements and related notes, we use certain acronyms and terms which are defined in the Glossary of our 2024 Annual Report.
The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes in our 2024 Annual Report.
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP and include our accounts as well as the accounts of other entities in which we have a controlling financial interest. All intercompany balances and transactions have been eliminated.
Use of Estimates
The preparation of our condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and disclosure of contingent assets and liabilities at the date of the financial statements. Management has made significant estimates to report the allowance for credit losses on single-family mortgage loans. Actual results could be different from these estimates.
| Freddie Mac 3Q 2025 Form 10-Q | 49 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 1 | ||||
Recently Issued Accounting Guidance
| Recently Issued Accounting Guidance, Not Yet Adopted Within Our Consolidated Financial Statements | |||||||||||
| Standard | Description | Date of Adoption | Effect on Consolidated Financial Statements | ||||||||
ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures | The amendments in this Update require annual disclosure of more detailed tax rate reconciliation categories and income taxes paid by geography and jurisdiction. | December 31, 2025 | We do not expect the adoption of these amendments to have a material effect on our consolidated financial statements. | ||||||||
ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses | The amendments in this Update require disaggregated disclosures for certain expense categories. | December 31, 2026 | We do not expect the adoption of these amendments to have a material effect on our consolidated financial statements. | ||||||||
| Freddie Mac 3Q 2025 Form 10-Q | 50 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 2 | ||||
NOTE 2
Securitization and Consolidation
Nonconsolidated VIEs
The table below presents the carrying amounts and classification of the assets and liabilities recorded on our condensed consolidated balance sheets that relate to our variable interests in VIEs for which we are not the primary beneficiary and with which we were involved in the design and creation and have a significant continuing involvement, our maximum exposure to loss as a result of our involvement with such VIEs, and the total assets of the VIEs. Our involvement with such VIEs primarily consists of guarantees that we have issued to the VIE, some of which are accounted for as derivative instruments, and investments in debt securities issued by the VIE. See Note 4 for additional information on our guarantees to nonconsolidated VIEs.
Total assets shown in the table below represents the remaining UPB of the mortgage loans or other noncash financial assets held by the VIE and excludes cash and nonfinancial assets held by the VIE. Maximum exposure to loss shown in the table below is primarily based on the remaining UPB of the guaranteed securities issued by the VIE and represents the contractual amounts that could be lost if the assets of the VIE (including the assets in the related reference pool for CRT products) became worthless at the balance sheet date, without consideration of proceeds from related collateral liquidation and possible recoveries under credit enhancements. We do not believe the maximum exposure to loss from our involvement with nonconsolidated VIEs is representative of the actual loss we are likely to incur based on our historical loss experience and after consideration of proceeds from related collateral liquidation and available credit enhancements.
Table 2.1 - Nonconsolidated VIEs
| September 30, 2025 | ||||||||||||||||||||
| Carrying Amounts of the Assets and Liabilities on the Condensed Consolidated Balance Sheets | Total Assets | Maximum Exposure to Loss | ||||||||||||||||||
(In millions) | Investment Securities | Accrued Interest Receivable and Other Assets(1) | Liabilities(1) | |||||||||||||||||
| Single-Family: | ||||||||||||||||||||
| Securitization products | $ | $ | $ | $ | $ | |||||||||||||||
Resecuritization products(2) | ||||||||||||||||||||
CRT products(3) | ||||||||||||||||||||
| Total Single-Family | ||||||||||||||||||||
| Multifamily: | ||||||||||||||||||||
Securitization products(4) | ||||||||||||||||||||
CRT products(3) | ||||||||||||||||||||
| Total Multifamily | ||||||||||||||||||||
| Other | ||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | |||||||||||||||
| Freddie Mac 3Q 2025 Form 10-Q | 51 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 2 | ||||
| December 31, 2024 | ||||||||||||||||||||
| Carrying Amounts of the Assets and Liabilities on the Condensed Consolidated Balance Sheets | Total Assets | Maximum Exposure to Loss | ||||||||||||||||||
(In millions) | Investment Securities | Accrued Interest Receivable and Other Assets(1) | Liabilities(1) | |||||||||||||||||
| Single-Family: | ||||||||||||||||||||
| Securitization products | $ | $ | $ | $ | $ | |||||||||||||||
Resecuritization products(2) | ||||||||||||||||||||
CRT products(3) | ||||||||||||||||||||
| Total Single-Family | ||||||||||||||||||||
| Multifamily: | ||||||||||||||||||||
Securitization products(4) | ||||||||||||||||||||
CRT products(3) | ||||||||||||||||||||
| Total Multifamily | ||||||||||||||||||||
| Other | ||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | |||||||||||||||
(1) Other assets primarily include our guarantee assets. Liabilities primarily include our guarantee obligations.
(2) Total assets and maximum exposure to loss are based on the UPB of Fannie Mae securities underlying commingled Freddie Mac resecuritization trusts. We exclude noncommingled resecuritization trusts from these amounts as we have already guaranteed the underlying collateral and therefore noncommingled resecuritizations do not involve any incremental assets or create any incremental exposure to credit risk.
(3) Maximum exposure to loss is based on our expected recovery receivables and excludes our obligations to make certain payments to the VIE to support payment of the interest due on the notes issued by the VIE, which we account for as derivative instruments. The notional value of these derivative instruments is equal to the total assets of the VIE.
(4) Includes total assets of $1.1 billion as of September 30, 2025 and $0.7 billion as of December 31, 2024 related to VIEs in which our interest would no longer absorb significant variability as the guaranteed securities have completely paid off.
Investments in Low Income Housing Tax Credits
We invest in LIHTC partnerships to support and preserve the supply of affordable housing. These investments do not provide us with a controlling financial interest in the underlying partnerships and we therefore do not consolidate these entities. We have elected to account for these investments using the proportional amortization method when applicable. The carrying amount of our investments in LIHTC partnerships is presented in other assets on our condensed consolidated balance sheets and totaled $4.7 billion as September 30, 2025 and $4.3 billion as of December 31, 2024.
| Freddie Mac 3Q 2025 Form 10-Q | 52 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 3 | ||||
NOTE 3
Mortgage Loans
The table below provides details of the loans on our condensed consolidated balance sheets.
Table 3.1 - Mortgage Loans
| September 30, 2025 | December 31, 2024 | |||||||||||||||||||||||||
| (In millions) | Single-Family | Multifamily | Total | Single-Family | Multifamily | Total | ||||||||||||||||||||
| Held-for-sale UPB | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Cost basis and fair value adjustments, net | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||
| Total held-for-sale loans, net | ||||||||||||||||||||||||||
| Held-for-investment UPB | ||||||||||||||||||||||||||
Cost basis and fair value adjustments, net(1) | ( | ( | ||||||||||||||||||||||||
| Allowance for credit losses | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||
Total held-for-investment loans, net(2) | ||||||||||||||||||||||||||
| Total mortgage loans, net | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
(1)Includes ($0.3 ) billion and ($0.7 ) billion of basis adjustments maintained on a closed portfolio basis related to existing portfolio layer method fair value hedge relationships as of September 30, 2025 and December 31, 2024, respectively.
(2)Includes $7.1 billion and $2.4 billion of multifamily held-for-investment loans for which we have elected the fair value option as of September 30, 2025 and December 31, 2024, respectively.
The table below provides details of the UPB of loans we purchased and sold during the periods presented.
Table 3.2 - Loans Purchased and Sold
| (In millions) | 3Q 2025 | 3Q 2024 | YTD 2025 | YTD 2024 | ||||||||||||||||
| Single-Family: | ||||||||||||||||||||
| Purchases: | ||||||||||||||||||||
| Held-for-investment loans | $ | $ | $ | $ | ||||||||||||||||
Sales of held-for-sale loans(1) | ||||||||||||||||||||
Multifamily: | ||||||||||||||||||||
| Purchases: | ||||||||||||||||||||
| Held-for-investment loans | ||||||||||||||||||||
| Held-for-sale loans | ||||||||||||||||||||
Sales of held-for-sale loans(2) | ||||||||||||||||||||
(1)Our sales of single-family loans reflect the sale of single-family seasoned loans.
(2)Our sales of multifamily loans occur primarily through the issuance of Multifamily K Certificates.
| Freddie Mac 3Q 2025 Form 10-Q | 53 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 3 | ||||
Reclassifications
The table below presents the allowance for credit losses or valuation allowance that was reversed or established due to loan reclassifications between held-for-investment and held-for-sale during the periods presented.
Table 3.3 - Loan Reclassifications(1)
| 3Q 2025 | 3Q 2024 | ||||||||||||||||||||||
| (In millions) | UPB | Allowance for Credit Losses Reversed or (Established) | Valuation Allowance (Established) or Reversed | UPB | Allowance for Credit Losses Reversed or (Established) | Valuation Allowance (Established) or Reversed | |||||||||||||||||
| Single-Family reclassifications from: | |||||||||||||||||||||||
| Held-for-investment to held-for-sale | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Held-for-sale to held-for-investment(2) | |||||||||||||||||||||||
| Multifamily reclassifications from: | |||||||||||||||||||||||
| Held-for-investment to held-for-sale | ( | ( | |||||||||||||||||||||
Held-for-sale to held-for-investment(2) | |||||||||||||||||||||||
| YTD 2025 | YTD 2024 | ||||||||||||||||||||||
| (In millions) | UPB | Allowance for Credit Losses Reversed or (Established) | Valuation Allowance (Established) or Reversed | UPB | Allowance for Credit Losses Reversed or (Established) | Valuation Allowance (Established) or Reversed | |||||||||||||||||
| Single-Family reclassifications from: | |||||||||||||||||||||||
| Held-for-investment to held-for-sale | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Held-for-sale to held-for-investment(2) | |||||||||||||||||||||||
| Multifamily reclassifications from: | |||||||||||||||||||||||
| Held-for-investment to held-for-sale | ( | ( | |||||||||||||||||||||
Held-for-sale to held-for-investment(2) | ( | ||||||||||||||||||||||
(1)Amounts exclude reclassifications related to loans for which we have elected the fair value option.
(2)Allowance for credit losses established upon loan reclassifications from held-for-sale to held-for-investment to reflect the net amount we expect to collect on the loan. Loans with prior charge-offs may have a negative allowance for credit losses established upon reclassification.
Interest Income
The table below presents the amortized cost basis of non-accrual loans as of the beginning and the end of the periods presented, including the interest income recognized for the period that is related to the loans on non-accrual status as of the period end.
Table 3.4 - Amortized Cost Basis of Held-for-Investment Loans on Non-Accrual(1)
| Non-Accrual Amortized Cost Basis | Interest Income Recognized(2) | |||||||||||||||||||
| (In millions) | September 30, 2025 | June 30, 2025 | 3Q 2025 | YTD 2025 | ||||||||||||||||
| Single-Family: | ||||||||||||||||||||
| 20- and 30-year or more, amortizing fixed-rate | $ | $ | $ | $ | ||||||||||||||||
| 15-year or less, amortizing fixed-rate | ||||||||||||||||||||
| Adjustable-rate and other | ||||||||||||||||||||
| Total Single-Family | ||||||||||||||||||||
| Total Multifamily | ||||||||||||||||||||
| Total Single-Family and Multifamily | $ | $ | $ | $ | ||||||||||||||||
| Freddie Mac 3Q 2025 Form 10-Q | 54 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 3 | ||||
| Non-Accrual Amortized Cost Basis | Interest Income Recognized(2) | |||||||||||||||||||
| (In millions) | September 30, 2024 | June 30, 2024 | 3Q 2024 | YTD 2024 | ||||||||||||||||
| Single-Family: | ||||||||||||||||||||
| 20- and 30-year or more, amortizing fixed-rate | $ | $ | $ | $ | ||||||||||||||||
| 15-year or less, amortizing fixed-rate | ||||||||||||||||||||
| Adjustable-rate and other | ||||||||||||||||||||
| Total Single-Family | ||||||||||||||||||||
| Total Multifamily | ||||||||||||||||||||
| Total Single-Family and Multifamily | $ | $ | $ | $ | ||||||||||||||||
(1)Excludes amounts related to loans for which we have elected the fair value option.
(2)Represents the amount of payments received during the period, including those received while the loans were on accrual status, for the held-for-investment loans on non-accrual status as of period end.
The table below provides the amount of accrued interest receivable presented on our condensed consolidated balance sheets and the amount of accrued interest receivable related to loans on non-accrual status at the end of the periods that was charged off.
Table 3.5 - Accrued Interest Receivable and Related Charge-Offs
| Accrued Interest Receivable | Accrued Interest Receivable Related Charge-Offs | |||||||||||||||||||||||||
| (In millions) | September 30, 2025 | December 31, 2024 | 3Q 2025 | 3Q 2024 | YTD 2025 | YTD 2024 | ||||||||||||||||||||
| Single-Family loans | $ | $ | ($ | ($ | ($ | ($ | ||||||||||||||||||||
| Multifamily loans | ( | ( | ||||||||||||||||||||||||
Credit Quality
Single-Family
The current LTV ratio is one key factor we consider when estimating our allowance for credit losses for single-family loans. As current LTV ratios increase, the borrower's equity in the home decreases, which may negatively affect the borrower's ability to refinance or to sell the property for an amount at or above the balance of the outstanding loan.
The table below presents the amortized cost basis of single-family held-for-investment loans by current LTV ratio. Our current LTV ratios are estimates based on available data through the end of each period presented.
| Freddie Mac 3Q 2025 Form 10-Q | 55 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 3 | ||||
Table 3.6 - Amortized Cost Basis of Single-Family Held-for-Investment Loans by Current LTV Ratio and Vintage
| September 30, 2025 | ||||||||||||||||||||||||||
| Year of Origination | Total | |||||||||||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | 2022 | 2021 | Prior | ||||||||||||||||||||
Current LTV ratio: | ||||||||||||||||||||||||||
20- and 30-year or more, amortizing fixed-rate | ||||||||||||||||||||||||||
| ≤ 60 | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||
| > 60 to 80 | ||||||||||||||||||||||||||
> 80 to 90 | ||||||||||||||||||||||||||
| > 90 to 100 | ||||||||||||||||||||||||||
> 100 | ||||||||||||||||||||||||||
Total 20- and 30-year or more, amortizing fixed-rate | ||||||||||||||||||||||||||
Current-year gross charge-offs(1) | ||||||||||||||||||||||||||
15-year or less, amortizing fixed-rate | ||||||||||||||||||||||||||
| ≤ 60 | ||||||||||||||||||||||||||
| > 60 to 80 | ||||||||||||||||||||||||||
> 80 to 90 | ||||||||||||||||||||||||||
| > 90 to 100 | ||||||||||||||||||||||||||
> 100 | ||||||||||||||||||||||||||
| Total 15-year or less, amortizing fixed-rate | ||||||||||||||||||||||||||
Current-year gross charge-offs(1) | ||||||||||||||||||||||||||
Adjustable-rate and other | ||||||||||||||||||||||||||
| ≤ 60 | ||||||||||||||||||||||||||
| > 60 to 80 | ||||||||||||||||||||||||||
> 80 to 90 | ||||||||||||||||||||||||||
| > 90 to 100 | ||||||||||||||||||||||||||
> 100 | ||||||||||||||||||||||||||
| Total adjustable-rate and other | ||||||||||||||||||||||||||
Current-year gross charge-offs(1) | ||||||||||||||||||||||||||
Total for all loan product types by current LTV ratio: | ||||||||||||||||||||||||||
≤ 60 | ||||||||||||||||||||||||||
| > 60 to 80 | ||||||||||||||||||||||||||
> 80 to 90 | ||||||||||||||||||||||||||
| > 90 to 100 | ||||||||||||||||||||||||||
> 100 | ||||||||||||||||||||||||||
| Total Single-Family loans | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||
Total current-year gross charge-offs(1) | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||
| Freddie Mac 3Q 2025 Form 10-Q | 56 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 3 | ||||
| December 31, 2024 | ||||||||||||||||||||||||||
| Year of Origination | Total | |||||||||||||||||||||||||
| (In millions) | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | ||||||||||||||||||||
Current LTV ratio: | ||||||||||||||||||||||||||
20- and 30-year or more, amortizing fixed-rate | ||||||||||||||||||||||||||
| ≤ 60 | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||
| > 60 to 80 | ||||||||||||||||||||||||||
| > 80 to 90 | ||||||||||||||||||||||||||
> 90 to 100 | ||||||||||||||||||||||||||
> 100 | ||||||||||||||||||||||||||
Total 20- and 30-year or more, amortizing fixed-rate | ||||||||||||||||||||||||||
Full-year gross charge-offs(1) | ||||||||||||||||||||||||||
15-year or less, amortizing fixed-rate | ||||||||||||||||||||||||||
| ≤ 60 | ||||||||||||||||||||||||||
| > 60 to 80 | ||||||||||||||||||||||||||
| > 80 to 90 | ||||||||||||||||||||||||||
> 90 to 100 | ||||||||||||||||||||||||||
> 100 | ||||||||||||||||||||||||||
| Total 15-year or less, amortizing fixed-rate | ||||||||||||||||||||||||||
Full-year gross charge-offs(1) | ||||||||||||||||||||||||||
Adjustable-rate and other | ||||||||||||||||||||||||||
| ≤ 60 | ||||||||||||||||||||||||||
| > 60 to 80 | ||||||||||||||||||||||||||
| > 80 to 90 | ||||||||||||||||||||||||||
> 90 to 100 | ||||||||||||||||||||||||||
> 100 | ||||||||||||||||||||||||||
| Total adjustable-rate and other | ||||||||||||||||||||||||||
Full-year gross charge-offs(1) | ||||||||||||||||||||||||||
Total for all loan product types by current LTV ratio: | ||||||||||||||||||||||||||
| ≤ 60 | ||||||||||||||||||||||||||
| > 60 to 80 | ||||||||||||||||||||||||||
| > 80 to 90 | ||||||||||||||||||||||||||
> 90 to 100 | ||||||||||||||||||||||||||
> 100 | ||||||||||||||||||||||||||
| Total Single-Family loans | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||
Total full-year gross charge-offs(1) | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||
(1)Excludes charge-offs related to accrued interest receivable and advances of pre-foreclosure costs.
Multifamily
The table below presents the amortized cost basis of our multifamily held-for-investment loans, for which we have not elected the fair value option, by credit quality indicator, based on available data through the end of each period presented. These indicators involve significant management judgment and are defined as follows:
n "Pass" is current and adequately protected by the borrower's current financial strength and debt service capacity;
n "Special mention" has administrative issues that may affect future repayment prospects but does not have current credit weaknesses. In addition, this category generally includes loans in forbearance;
n "Substandard" has a weakness that jeopardizes the timely full repayment; and
n "Doubtful" has a weakness that makes collection or liquidation in full highly questionable and improbable based on existing conditions.
| Freddie Mac 3Q 2025 Form 10-Q | 57 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 3 | ||||
Table 3.7 - Amortized Cost Basis of Multifamily Held-for-Investment Loans by Credit Quality Indicator and Vintage
| September 30, 2025 | |||||||||||||||||||||||||||||
| Year of Origination | Total | ||||||||||||||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Revolving Loans | ||||||||||||||||||||||
| Category: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||
| Year of Origination | Total | ||||||||||||||||||||||||||||
| (In millions) | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Revolving Loans | ||||||||||||||||||||||
| Category: | |||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Past Due Status
The table below presents the amortized cost basis of our single-family and multifamily held-for-investment loans, for which we have not elected the fair value option, by payment status.
Table 3.8 - Amortized Cost Basis of Held-for-Investment Loans by Payment Status(1)
| September 30, 2025 | |||||||||||||||||||||||
| (In millions) | Current | One Month Past Due | Two Months Past Due | Three Months or More Past Due, or in Foreclosure(2) | Total | Non-Accrual With No Allowance(3) | |||||||||||||||||
| Single-Family: | |||||||||||||||||||||||
| 20- and 30-year or more, amortizing fixed-rate | $ | $ | $ | $ | $ | $ | |||||||||||||||||
| 15-year or less, amortizing fixed-rate | |||||||||||||||||||||||
| Adjustable-rate and other | |||||||||||||||||||||||
| Total Single-Family | |||||||||||||||||||||||
| Total Multifamily | |||||||||||||||||||||||
| Total Single-Family and Multifamily | $ | $ | $ | $ | $ | $ | |||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||
| (In millions) | Current | One Month Past Due | Two Months Past Due | Three Months or More Past Due, or in Foreclosure(2) | Total | Non-Accrual with No Allowance(3) | |||||||||||||||||
| Single-Family: | |||||||||||||||||||||||
| 20- and 30-year or more, amortizing fixed-rate | $ | $ | $ | $ | $ | $ | |||||||||||||||||
| 15-year or less, amortizing fixed-rate | |||||||||||||||||||||||
| Adjustable-rate and other | |||||||||||||||||||||||
| Total Single-Family | |||||||||||||||||||||||
| Total Multifamily | |||||||||||||||||||||||
| Total Single-Family and Multifamily | $ | $ | $ | $ | $ | $ | |||||||||||||||||
| Freddie Mac 3Q 2025 Form 10-Q | 58 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 3 | ||||
(1)There were no
(2)Includes $3.5 billion and $2.6 billion of single-family loans that were in the process of foreclosure as of September 30, 2025 and December 31, 2024, respectively.
(3)Loans with no allowance for loan losses primarily represent loans that were previously charged off and for which the amount we expect to collect is sufficiently in excess of the amortized cost to result in recovery of the entire amortized cost basis if the property were foreclosed upon or otherwise subject to disposition. We exclude the amounts of allowance for credit losses on advances of pre-foreclosure costs when determining whether a loan has an allowance for credit losses.
Loan Restructurings
Single-Family Loan Restructurings
We offer several types of restructurings to single-family borrowers that may result in a payment delay, interest rate reduction, term extension, or combination thereof. We do not offer principal forgiveness.
For purposes of the disclosure related to single-family loan restructurings involving borrowers experiencing financial difficulty, we exclude loans that were held-for-sale either at the time of restructuring or at the period end. The table below presents the period-end amortized cost basis of single-family held-for-investment loan restructurings involving borrowers experiencing financial difficulty that we entered into during the periods presented.
Table 3.9 - Single-Family Loan Restructurings Involving Borrowers Experiencing Financial Difficulty(1)
| 3Q 2025 | ||||||||||||||||||||
| (Dollars in millions) | Payment Delay(2) | Payment Delay and Term Extension | Payment Delay, Term Extension, and Interest Rate Reduction | Total | Total as % of Class of Financing Receivable(3) | |||||||||||||||
| Single-Family: | ||||||||||||||||||||
| 20- and 30-year or more, amortizing fixed-rate | $ | $ | $ | $ | % | |||||||||||||||
| 15-year or less, amortizing fixed-rate | ||||||||||||||||||||
| Adjustable-rate and other | ||||||||||||||||||||
| Total Single-Family loan restructurings | $ | $ | $ | $ | ||||||||||||||||
| 3Q 2024 | ||||||||||||||||||||
| (Dollars in millions) | Payment Delay(2) | Payment Delay and Term Extension | Payment Delay, Term Extension, and Interest Rate Reduction | Total | Total as % of Class of Financing Receivable(3) | |||||||||||||||
| Single-Family: | ||||||||||||||||||||
| 20- and 30-year or more, amortizing fixed-rate | $ | $ | $ | $ | % | |||||||||||||||
| 15-year or less, amortizing fixed-rate | ||||||||||||||||||||
| Adjustable-rate and other | ||||||||||||||||||||
| Total Single-Family loan restructurings | $ | $ | $ | $ | ||||||||||||||||
| YTD 2025 | ||||||||||||||||||||
| (Dollars in millions) | Payment Delay(2) | Payment Delay and Term Extension | Payment Delay, Term Extension, and Interest Rate Reduction | Total | Total as % of Class of Financing Receivable(3) | |||||||||||||||
| Single-Family: | ||||||||||||||||||||
| 20- and 30-year or more, amortizing fixed-rate | $ | $ | $ | $ | % | |||||||||||||||
| 15-year or less, amortizing fixed-rate | ||||||||||||||||||||
| Adjustable-rate and other | ||||||||||||||||||||
| Total Single-Family loan restructurings | $ | $ | $ | $ | ||||||||||||||||
| Freddie Mac 3Q 2025 Form 10-Q | 59 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 3 | ||||
| YTD 2024 | ||||||||||||||||||||
| (Dollars in millions) | Payment Delay(2) | Payment Delay and Term Extension | Payment Delay, Term Extension, and Interest Rate Reduction | Total | Total as % of Class of Financing Receivable(3) | |||||||||||||||
| Single-Family: | ||||||||||||||||||||
| 20- and 30-year or more, amortizing fixed-rate | $ | $ | $ | $ | % | |||||||||||||||
| 15-year or less, amortizing fixed-rate | ||||||||||||||||||||
| Adjustable-rate and other | ||||||||||||||||||||
| Total Single-Family loan restructurings | $ | $ | $ | $ | ||||||||||||||||
(1) Type of loan restructurings reflects the cumulative effects of the loan restructurings received during the period. Includes loan modifications in the period in which the borrower completes the trial period and the loan is permanently modified. The amortized cost basis of loans in the trial period modification plans was $3.5 billion and $2.0 billion as of September 30, 2025 and September 30, 2024, respectively. Most of these loans are 20- and 30-year or more, amortizing fixed-rate loans.
(2) Includes $2.0 billion and $6.8 billion related to payment deferral plans for 3Q 2025 and YTD 2025, respectively, compared to $1.7 billion and $6.1 billion for 3Q 2024 and YTD 2024, respectively. Also includes forbearance plans, repayment plans, and loan modifications that only involve payment delays.
(3) Based on the amortized cost basis as of period end, divided by the total period-end amortized cost basis of the corresponding financing receivable class of single-family held-for-investment loans.
The table below shows the financial effect of single-family held-for-investment loan restructurings involving borrowers experiencing financial difficulty that we entered into during the periods presented.
Table 3.10 – Financial Effects of Single-Family Loan Restructurings Involving Borrowers Experiencing Financial Difficulty(1)
| 3Q 2025 | ||||||||||||||
| (Dollars in thousands) | Weighted-Average Interest Rate Reduction | Weighted-Average Months of Term Extension | Weighted-Average Payment Deferral or Principal Forbearance(2) | |||||||||||
| Single-Family: | ||||||||||||||
| 20- and 30-year or more, amortizing fixed-rate | % | $ | ||||||||||||
| 15-year or less, amortizing fixed-rate | NM | |||||||||||||
| Adjustable-rate and other | ||||||||||||||
| 3Q 2024 | ||||||||||||||
| (Dollars in thousands) | Weighted-Average Interest Rate Reduction | Weighted-Average Months of Term Extension | Weighted-Average Payment Deferral or Principal Forbearance(2) | |||||||||||
| Single-Family: | ||||||||||||||
| 20- and 30-year or more, amortizing fixed-rate | % | $ | ||||||||||||
| 15-year or less, amortizing fixed-rate | ||||||||||||||
| Adjustable-rate and other | ||||||||||||||
| Freddie Mac 3Q 2025 Form 10-Q | 60 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 3 | ||||
| YTD 2025 | ||||||||||||||
| (Dollars in thousands) | Weighted-Average Interest Rate Reduction | Weighted-Average Months of Term Extension | Weighted-Average Payment Deferral or Principal Forbearance(2) | |||||||||||
| Single-Family: | ||||||||||||||
| 20- and 30-year or more, amortizing fixed-rate | % | $ | ||||||||||||
| 15-year or less, amortizing fixed-rate | NM | |||||||||||||
| Adjustable-rate and other | ||||||||||||||
| YTD 2024 | ||||||||||||||
| (Dollars in thousands) | Weighted-Average Interest Rate Reduction | Weighted-Average Months of Term Extension | Weighted-Average Payment Deferral or Principal Forbearance(2) | |||||||||||
| Single-Family: | ||||||||||||||
| 20- and 30-year or more, amortizing fixed-rate | % | $ | ||||||||||||
| 15-year or less, amortizing fixed-rate | ||||||||||||||
| Adjustable-rate and other | ||||||||||||||
(1) Averages are based on payment deferral plans and loan modifications completed during the periods presented. The financial effects of forbearance plans and repayment plans consist of a payment delay of between one and twelve months. In addition, the financial effect of a forbearance plan is included at the time the forbearance plan is completed if the borrower exits forbearance by entering into a payment deferral plan or loan modification.
(2) Primarily related to payment deferral plans. Amounts are based on non-interest-bearing principal balances on the restructured loans.
Table 3.11 - Subsequent Defaults of Single-Family Restructured Loans Involving Borrowers Experiencing Financial Difficulty(1)
| 3Q 2025 | |||||||||||||||||
| (In millions) | Payment Delay | Payment Delay and Term Extension | Payment Delay, Term Extension, and Interest Rate Reduction | Total | |||||||||||||
| Single-Family: | |||||||||||||||||
| 20- and 30-year or more, amortizing fixed-rate | $ | $ | $ | $ | |||||||||||||
| 15-year or less, amortizing fixed-rate | |||||||||||||||||
| Adjustable-rate and other | |||||||||||||||||
| Total Single-Family | $ | $ | $ | $ | |||||||||||||
| 3Q 2024 | |||||||||||||||||
| (In millions) | Payment Delay | Payment Delay and Term Extension | Payment Delay, Term Extension, and Interest Rate Reduction | Total | |||||||||||||
| Single-Family: | |||||||||||||||||
| 20- and 30-year or more, amortizing fixed-rate | $ | $ | $ | $ | |||||||||||||
| 15-year or less, amortizing fixed-rate | |||||||||||||||||
| Adjustable-rate and other | |||||||||||||||||
| Total Single-Family | $ | $ | $ | $ | |||||||||||||
| Freddie Mac 3Q 2025 Form 10-Q | 61 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 3 | ||||
| YTD 2025 | |||||||||||||||||
| (In millions) | Payment Delay | Payment Delay and Term Extension | Payment Delay, Term Extension, and Interest Rate Reduction | Total | |||||||||||||
| Single-Family: | |||||||||||||||||
| 20- and 30-year or more, amortizing fixed-rate | $ | $ | $ | $ | |||||||||||||
| 15-year or less, amortizing fixed-rate | |||||||||||||||||
| Adjustable-rate and other | |||||||||||||||||
| Total Single-Family | $ | $ | $ | $ | |||||||||||||
| YTD 2024 | |||||||||||||||||
| (In millions) | Payment Delay | Payment Delay and Term Extension | Payment Delay, Term Extension, and Interest Rate Reduction | Total | |||||||||||||
| Single-Family: | |||||||||||||||||
| 20- and 30-year or more, amortizing fixed-rate | $ | $ | $ | $ | |||||||||||||
| 15-year or less, amortizing fixed-rate | |||||||||||||||||
| Adjustable-rate and other | |||||||||||||||||
| Total Single-Family | $ | $ | $ | $ | |||||||||||||
(1) Excludes forbearance plans and repayment plans as borrowers are typically past due based on the loan's original contractual terms at the time the borrowers enter into these plans.
The table below provides the single-family held-for-investment loan performance in the 12 months after a restructuring involving borrowers experiencing financial difficulty. While a single-family loan is in a forbearance plan or repayment plan, payments continue to be due based on the loan’s original contractual terms because the loan has not been permanently modified. As a result, we report single-family loans in forbearance plans and repayment plans as delinquent to the extent that payments are past due based on the loan’s original contractual terms. Loans that have been restructured by entering into a payment deferral plan or loan modification are reported as delinquent to the extent that payments are past due based on the loan's restructured terms.
Table 3.12 - Amortized Cost Basis of Single-Family Restructured Loans Involving Borrowers Experiencing Financial Difficulty by Payment Status
| September 30, 2025 | ||||||||||||||||||||
| (In millions) | Current | One Month Past Due | Two Months Past Due | Three Months or More Past Due | Total | |||||||||||||||
| Single-Family: | ||||||||||||||||||||
| 20- and 30-year or more, amortizing fixed-rate | $ | $ | $ | $ | $ | |||||||||||||||
| 15-year or less, amortizing fixed-rate | ||||||||||||||||||||
| Adjustable-rate and other | ||||||||||||||||||||
| Total Single-Family | $ | $ | $ | $ | $ | |||||||||||||||
| September 30, 2024 | ||||||||||||||||||||
| (In millions) | Current | One Month Past Due | Two Months Past Due | Three Months or More Past Due | Total | |||||||||||||||
| Single-Family: | ||||||||||||||||||||
| 20- and 30-year or more, amortizing fixed-rate | $ | $ | $ | $ | $ | |||||||||||||||
| 15-year or less, amortizing fixed-rate | ||||||||||||||||||||
| Adjustable-rate and other | ||||||||||||||||||||
| Total Single-Family | $ | $ | $ | $ | $ | |||||||||||||||
| Freddie Mac 3Q 2025 Form 10-Q | 62 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 3 | ||||
Non-Cash Investing and Financing Activities
During YTD 2025 and YTD 2024, we acquired $190.2 billion and $160.6 billion, respectively, of loans held-for-investment in exchange for the issuance of debt of consolidated trusts in guarantor swap transactions. We received approximately $98.4 billion and $76.0 billion of loans held-for-investment from sellers during YTD 2025 and YTD 2024, respectively, to satisfy advances to lenders that were recorded in other assets on our condensed consolidated balance sheets.
| Freddie Mac 3Q 2025 Form 10-Q | 63 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 4 | ||||
NOTE 4
Guarantees and Other Off-Balance Sheet Credit Exposures
The table below presents information about our mortgage-related guarantees and guarantees of Fannie Mae securities, including the UPB of the loans or securities underlying the guarantee, the maximum potential amount of future payments that we could be required to make under the guarantee, the liability we have recognized on our condensed consolidated balance sheets for the guarantee, and the maximum remaining term of the guarantee. This table does not include our unrecognized guarantees, such as guarantees to consolidated VIEs or to resecuritization trusts that do not expose us to incremental credit risk. We do not believe the potential amount of future payments we could be required to make is representative of the actual payments we will be required to make, or the actual loss we are likely to incur, based on our historical loss experience and after consideration of proceeds from related collateral liquidation, including possible recoveries under credit enhancements.
Table 4.1 - Financial Guarantees
| September 30, 2025 | |||||||||||||||||
(Dollars in millions, terms in years) | UPB | Maximum Exposure | Recognized Liability(1) | Maximum Remaining Term | |||||||||||||
| Single-Family mortgage-related guarantees: | |||||||||||||||||
Nonconsolidated securitization products(2) | $ | $ | $ | ||||||||||||||
| Other mortgage-related guarantees | |||||||||||||||||
| Total Single-Family mortgage-related guarantees | |||||||||||||||||
| Multifamily mortgage-related guarantees: | |||||||||||||||||
Nonconsolidated securitization products(2)(3) | |||||||||||||||||
| Other mortgage-related guarantees | |||||||||||||||||
| Total Multifamily mortgage-related guarantees | |||||||||||||||||
| Guarantees of Fannie Mae securities | |||||||||||||||||
| Other | |||||||||||||||||
| December 31, 2024 | |||||||||||||||||
(Dollars in millions, terms in years) | UPB | Maximum Exposure | Recognized Liability(1) | Maximum Remaining Term | |||||||||||||
| Single-Family mortgage-related guarantees: | |||||||||||||||||
Nonconsolidated securitization products(2) | $ | $ | $ | ||||||||||||||
| Other mortgage-related guarantees | |||||||||||||||||
| Total Single-Family mortgage-related guarantees | |||||||||||||||||
| Multifamily mortgage-related guarantees: | |||||||||||||||||
Nonconsolidated securitization products(2)(3) | |||||||||||||||||
| Other mortgage-related guarantees | |||||||||||||||||
| Total Multifamily mortgage-related guarantees | |||||||||||||||||
| Guarantees of Fannie Mae securities | |||||||||||||||||
| Other | |||||||||||||||||
(1) Excludes allowance for credit losses on off-balance sheet credit exposures. See Note 5 for additional information on our allowance for credit losses on off-balance sheet credit exposures.
(2) Maximum exposure is based on remaining UPB of the guaranteed securities issued by the VIE.
(3) Includes UPB of $1.1 billion and $0.7 billion as of September 30, 2025 and December 31, 2024, respectively, related to VIEs in which our interest would no longer absorb significant variability as the guaranteed securities have completely paid off. In addition, includes guarantees that are accounted for as derivatives with UPB of $1.9 billion and $2.0 billion as of September 30, 2025 and December 31, 2024, respectively.
| Freddie Mac 3Q 2025 Form 10-Q | 64 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 4 | ||||
The table below presents the payment status of the mortgage loans underlying our mortgage-related guarantees.
Table 4.2 – UPB of Loans Underlying Our Mortgage-Related Guarantees by Payment Status
| September 30, 2025 | ||||||||||||||||||||
| (In millions) | Current | One Month Past Due | Two Months Past Due | Three Months or More Past Due, or in Foreclosure | Total | |||||||||||||||
| Single-Family | $ | $ | $ | $ | $ | |||||||||||||||
| Multifamily | ||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | |||||||||||||||
| December 31, 2024 | ||||||||||||||||||||
| (In millions) | Current | One Month Past Due | Two Months Past Due | Three Months or More Past Due, or in Foreclosure | Total | |||||||||||||||
| Single-Family | $ | $ | $ | $ | $ | |||||||||||||||
| Multifamily | ||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | |||||||||||||||
Other Off-Balance Sheet Credit Exposures
In addition to our guarantees, we enter into other agreements that expose us to off-balance sheet credit risk. These agreements may require us to transfer cash before or upon settlement of our contractual obligation. We recognize an allowance for credit losses for those agreements not measured at fair value or otherwise recognized in the financial statements. Most of these commitments expire in less than one year. See Note 5 for additional discussion of our allowance for credit losses on our off-balance sheet credit exposures.
The table below presents our other off-balance sheet credit exposures.
Table 4.3 – Other Off-Balance Sheet Credit Exposures
| (In millions) | September 30, 2025 | December 31, 2024 | |||||||||
Mortgage loan purchase commitments(1) | $ | $ | |||||||||
Unsettled securities purchased under agreements to resell, net(2) | |||||||||||
Other commitments(3) | |||||||||||
| Total | $ | $ | |||||||||
(1)Includes $2.0 billion of commitments for which we have elected the fair value option as of December 31, 2024. The commitments for which we have elected the fair value option as of September 30, 2025 were not material. Excludes mortgage loan purchase commitments accounted for as derivative instruments. See Note 8 for additional information on commitments accounted for as derivative instruments.
(2)Net of $1.5 billion and $0.4 billion of unsettled securities sold under agreements to repurchase as of September 30, 2025 and December 31, 2024.
(3)Consists of unfunded portion of revolving lines of credit, liquidity guarantees, and other commitments.
| Freddie Mac 3Q 2025 Form 10-Q | 65 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 5 | ||||
NOTE 5
Allowance for Credit Losses
The table below summarizes changes in our allowance for credit losses.
Table 5.1 - Details of the Allowance for Credit Losses
| 3Q 2025 | 3Q 2024 | YTD 2025 | YTD 2024 | |||||||||||||||||||||||||||||||||||||||||
| (In millions) | Single-Family | Multi-family | Total | Single-Family | Multi-family | Total | Single-Family | Multi-family | Total | Single-Family | Multi-family | Total | ||||||||||||||||||||||||||||||||
| Beginning balance | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Provision (benefit) for credit losses | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
| Charge-offs | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
| Recoveries collected | ||||||||||||||||||||||||||||||||||||||||||||
Other(1) | ||||||||||||||||||||||||||||||||||||||||||||
| Ending balance | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Components of the ending balance of the allowance for credit losses: | ||||||||||||||||||||||||||||||||||||||||||||
| Mortgage loans held-for-investment | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Other(2) | ||||||||||||||||||||||||||||||||||||||||||||
| Total ending balance | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
(1)Primarily includes capitalization of past due interest related to non-accrual loans that received payment deferral plans and loan modifications.
(2)Includes allowance for credit losses related to advances of pre-foreclosure costs and off-balance sheet credit exposures.
n 3Q 2025 vs. 3Q 2024 - The provision for credit losses for 3Q 2025 was primarily driven by a credit reserve build in Single-Family attributable to new acquisitions. The benefit for credit losses for 3Q 2024 was driven by a credit reserve release in Single-Family as a result of lower mortgage interest rates and a credit reserve release in Multifamily due to enhancements in the credit loss estimation process.
n YTD 2025 vs. YTD 2024 - The provision for credit losses for YTD 2025 was primarily driven by a credit reserve build in Single-Family attributable to new acquisitions, changes in estimated market values of single-family properties based on our internal house price index, and changes in forecasted house price growth rates. The provision for credit losses for YTD 2024 was primarily driven by a credit reserve build in Single-Family attributable to new acquisitions.
| Freddie Mac 3Q 2025 Form 10-Q | 66 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 6 | ||||
NOTE 6
Investment Securities
The table below summarizes the fair values of our investments in debt securities by classification.
Table 6.1 - Investment Securities
| (In millions) | September 30, 2025 | December 31, 2024 | |||||||||
| Trading securities | $ | $ | |||||||||
| Available-for-sale securities | |||||||||||
| Total fair value of investment securities | $ | $ | |||||||||
Trading Securities
The table below presents the fair values of our trading securities by major security type. Our non-mortgage-related securities primarily consist of investments in U.S. Treasury securities.
Table 6.2 - Trading Securities
| (In millions) | September 30, 2025 | December 31, 2024 | |||||||||
| Mortgage-related securities | $ | $ | |||||||||
| Non-mortgage-related securities | |||||||||||
| Total fair value of trading securities | $ | $ | |||||||||
The table below provides details of our net trading gains (losses) recognized during the periods presented.
Table 6.3 - Net Trading Gains (Losses)
| (In millions) | 3Q 2025 | 3Q 2024 | YTD 2025 | YTD 2024 | |||||||||||||
| Net trading gains (losses) | $ | $ | $ | $ | |||||||||||||
| Less: Net trading gains (losses) on securities sold | |||||||||||||||||
| Net trading gains (losses) related to securities still held at period end | $ | $ | $ | $ | |||||||||||||
Available-for-Sale Securities
At both September 30, 2025 and December 31, 2024, all available-for-sale securities were mortgage-related securities.
The table below provides details of the securities classified as available-for-sale on our condensed consolidated balance sheets.
Table 6.4 - Available-for-Sale Securities
| September 30, 2025 | ||||||||||||||||||||
| Amortized Cost Basis | Gross Unrealized Gains in Other Comprehensive Income | Gross Unrealized Losses in Other Comprehensive Income | Fair Value | Accrued Interest Receivable | ||||||||||||||||
| (In millions) | ||||||||||||||||||||
| Agency mortgage-related securities | $ | $ | ($ | $ | $ | |||||||||||||||
| Other mortgage-related securities | ( | |||||||||||||||||||
| Total available-for-sale securities | $ | $ | ($ | $ | $ | |||||||||||||||
| Freddie Mac 3Q 2025 Form 10-Q | 67 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 6 | ||||
| December 31, 2024 | ||||||||||||||||||||
| Amortized Cost Basis | Gross Unrealized Gains in Other Comprehensive Income | Gross Unrealized Losses in Other Comprehensive Income | Fair Value | Accrued Interest Receivable | ||||||||||||||||
| (In millions) | ||||||||||||||||||||
| Agency mortgage-related securities | $ | $ | ($ | $ | $ | |||||||||||||||
| Other mortgage-related securities | ( | |||||||||||||||||||
| Total available-for-sale securities | $ | $ | ($ | $ | $ | |||||||||||||||
The fair value of our available-for-sale securities held at September 30, 2025 scheduled to contractually mature after ten years was $1.5 billion, with an additional $1.1 billion scheduled to contractually mature after five years through ten years.
The table below presents available-for-sale securities in a gross unrealized loss position and whether such securities have been in an unrealized loss position for less than 12 months, or 12 months or greater.
Table 6.5 - Available-for-Sale Securities in a Gross Unrealized Loss Position
| September 30, 2025 | ||||||||||||||||||||
| Less than 12 Months | 12 Months or Greater | |||||||||||||||||||
| (In millions) | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||
| Agency mortgage-related securities | $ | $ | $ | ($ | ||||||||||||||||
| Other mortgage-related securities | ( | |||||||||||||||||||
| Total available-for-sale securities in a gross unrealized loss position | $ | $ | $ | ($ | ||||||||||||||||
| December 31, 2024 | ||||||||||||||||||||
| Less than 12 Months | 12 Months or Greater | |||||||||||||||||||
| (In millions) | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||
| Agency mortgage-related securities | $ | ($ | $ | ($ | ||||||||||||||||
| Other mortgage-related securities | ( | |||||||||||||||||||
| Total available-for-sale securities in a gross unrealized loss position | $ | ($ | $ | ($ | ||||||||||||||||
At September 30, 2025, the gross unrealized losses relate to 119 securities.
The table below summarizes the total proceeds, gross realized gains, and gross realized losses from sales of available-for-sale securities.
Table 6.6 - Total Proceeds, Gross Realized Gains, and Gross Realized Losses from Sales of Available-for-Sale Securities
| (In millions) | 3Q 2025 | 3Q 2024 | YTD 2025 | YTD 2024 | |||||||||||||
| Gross realized gains | $ | $ | $ | ||||||||||||||
| Gross realized losses | ( | ( | |||||||||||||||
| Net realized gains (losses) | $ | $ | $ | ($ | |||||||||||||
| Total proceeds | $ | $ | $ | $ | |||||||||||||
Non-Cash Investing and Financing Activities
During YTD 2025 and YTD 2024, we derecognized $1.5 billion and $2.0 billion, respectively, of mortgage-related securities and debt of consolidated trusts where we were no longer deemed the primary beneficiary.
| Freddie Mac 3Q 2025 Form 10-Q | 68 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 7 | ||||
NOTE 7
Debt
The table below summarizes the balances of total debt on our condensed consolidated balance sheets.
Table 7.1 - Total Debt
(In millions) | September 30, 2025 | December 31, 2024 | |||||||||
| Debt of consolidated trusts | $ | $ | |||||||||
| Debt of Freddie Mac: | |||||||||||
Short-term debt | |||||||||||
Long-term debt | |||||||||||
| Total debt of Freddie Mac | |||||||||||
Total debt | $ | $ | |||||||||
Debt of Consolidated Trusts
The table below summarizes the debt of consolidated trusts based on underlying loan product type.
Table 7.2 - Debt of Consolidated Trusts
| September 30, 2025 | December 31, 2024 | |||||||||||||||||||||||||||||||
| (Dollars in millions) | Contractual Maturity | UPB | Carrying Amount(1) | Weighted Average Coupon(2) | Contractual Maturity | UPB | Carrying Amount(1) | Weighted Average Coupon(2) | ||||||||||||||||||||||||
| Single-Family: | ||||||||||||||||||||||||||||||||
| 20-and 30-year or more, fixed-rate | 2025 - 2061 | $ | $ | % | 2025 - 2061 | $ | $ | % | ||||||||||||||||||||||||
| 15-year or less, fixed-rate | 2025 - 2040 | 2025 - 2040 | ||||||||||||||||||||||||||||||
| Adjustable-rate and other | 2025 - 2055 | 2025 - 2055 | ||||||||||||||||||||||||||||||
| Total Single-Family | ||||||||||||||||||||||||||||||||
| Multifamily | 2025 - 2055 | 2025 - 2054 | ||||||||||||||||||||||||||||||
| Total debt of consolidated trusts | $ | $ | $ | $ | ||||||||||||||||||||||||||||
(1)Includes $5.5 billion and $2.0 billion as of September 30, 2025 and December 31, 2024, respectively, of debt of consolidated trusts that represents the fair value of debt for which the fair value option was elected.
(2)The effective interest rate for debt of consolidated trusts was 3.18 % and 3.01 % as of September 30, 2025 and December 31, 2024, respectively.
Short-Term Debt
The table below summarizes the balances and effective interest rates for our short-term debt (debt with original maturities of one year or less).
Table 7.3 - Short-Term Debt(1)
| (Dollars in millions) | September 30, 2025 | December 31, 2024 | |||||||||
| Par value | $ | $ | |||||||||
| Carrying amount | |||||||||||
| Weighted average effective rate | % | % | |||||||||
(1)Includes $1.0 billion of callable debt as of September 30, 2025. There was no callable debt as of December 31, 2024.
| Freddie Mac 3Q 2025 Form 10-Q | 69 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 7 | ||||
Long-Term Debt
The table below summarizes our long-term debt.
Table 7.4 - Long-Term Debt
| September 30, 2025 | December 31, 2024 | |||||||||||||||||||||||||||||||
| (Dollars in millions) | Contractual Maturity | Par Value | Carrying Amount(1) | Weighted Average Effective Rate(2) | Contractual Maturity | Par Value | Carrying Amount(1) | Weighted Average Effective Rate(2) | ||||||||||||||||||||||||
Fixed-rate(3) | 2025 - 2054 | $ | $ | % | 2025 - 2054 | $ | $ | % | ||||||||||||||||||||||||
Variable-rate(4) | 2025 - 2035 | 2025 - 2034 | ||||||||||||||||||||||||||||||
| Zero-coupon | 2025 - 2039 | 2025 - 2039 | ||||||||||||||||||||||||||||||
Other(5) | 2028 - 2053 | 2025 - 2053 | ||||||||||||||||||||||||||||||
| Total long-term debt | $ | $ | $ | $ | ||||||||||||||||||||||||||||
(1)Represents par value, net of associated discounts or premiums and issuance costs. Includes $0.2 billion and $0.3 billion at September 30, 2025 and December 31, 2024, respectively, of long-term debt that represents the fair value of debt for which the fair value option was elected. Includes hedge-related basis adjustments.
(2)Based on carrying amount. Excludes hedge-related basis adjustments.
(3)Includes $95.0 billion and $112.6 billion of callable debt as of September 30, 2025 and December 31, 2024, respectively.
(4)Includes $0.8 billion and $1.3 billion of callable debt as of September 30, 2025 and December 31, 2024, respectively.
(5)Includes STACR debt notes, SCR debt notes, and IO debt.
A portion of our long-term debt is callable. Callable debt gives us the option to redeem the debt security at par on one or more specified call dates or at any time on or after a specified call date.
The table below summarizes contractual maturities of long-term debt securities at September 30, 2025.
Table 7.5 - Contractual Maturities of Long-Term Debt(1)
| (In millions) | Par Value | |||||||
| 2025 | $ | |||||||
| 2026 | ||||||||
| 2027 | ||||||||
| 2028 | ||||||||
| 2029 | ||||||||
| Thereafter | ||||||||
| Total | $ | |||||||
(1)Excludes $0.7 billion of STACR debt notes and $0.1 billion of SCR debt notes. Contractual maturities of these debt securities are not presented because they are subject to prepayment risk, as their payments are based upon the performance of a pool of mortgage assets that may be prepaid by the related mortgage borrowers at any time generally without penalty.
| Freddie Mac 3Q 2025 Form 10-Q | 70 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 8 | ||||
NOTE 8
Derivatives
We analyze the interest-rate sensitivity of financial assets and liabilities across a variety of interest-rate scenarios based on market prices, models, and economics. We use derivatives primarily to hedge interest-rate sensitivity mismatches between our financial assets and liabilities. We principally use interest-rate swaps, purchased or written options (including swaptions), and exchange-traded futures in our interest-rate risk management activities. We designate certain derivatives as hedging instruments in qualifying hedge accounting relationships. Interest-rate risk management derivatives that are not designated in qualifying hedge accounting relationships are economic hedges of financial instruments measured at fair value on a recurring basis or of other transactions or instruments that expose us to interest-rate risk. When we use derivatives to mitigate our exposures, we consider a number of factors, including cost, exposure to counterparty credit risk, and our overall risk management strategy.
We apply fair value hedge accounting to certain single-family mortgage loans and certain issuances of debt where we hedge the changes in fair value of these items attributable to the designated benchmark interest rate, using interest-rate swaps.
Derivative Assets and Liabilities at Fair Value
The table below presents the notional value and fair value of derivatives reported on our condensed consolidated balance sheets.
Table 8.1 - Derivative Assets and Liabilities at Fair Value
| September 30, 2025 | December 31, 2024 | |||||||||||||||||||||||||
| Notional or Contractual Amount | Derivative Assets | Derivative Liabilities | Notional or Contractual Amount | Derivative Assets | Derivative Liabilities | |||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||||
| Not designated as hedges | ||||||||||||||||||||||||||
| Interest-rate risk management derivatives: | ||||||||||||||||||||||||||
| Swaps | $ | $ | ($ | $ | $ | ($ | ||||||||||||||||||||
| Written options | ( | ( | ||||||||||||||||||||||||
Purchased options(1) | ||||||||||||||||||||||||||
| Futures | ||||||||||||||||||||||||||
| Total interest-rate risk management derivatives | ( | ( | ||||||||||||||||||||||||
| Mortgage commitment derivatives | ( | ( | ||||||||||||||||||||||||
CRT-related derivatives(2) | ( | ( | ||||||||||||||||||||||||
| Other | ( | ( | ||||||||||||||||||||||||
| Total derivatives not designated as hedges | ( | ( | ||||||||||||||||||||||||
| Designated as fair value hedges | ||||||||||||||||||||||||||
| Interest-rate risk management derivatives: | ||||||||||||||||||||||||||
| Swaps | ( | ( | ||||||||||||||||||||||||
| Total derivatives designated as fair value hedges | ( | ( | ||||||||||||||||||||||||
| Receivables (payables) | ( | |||||||||||||||||||||||||
Netting adjustments(3) | ( | ( | ||||||||||||||||||||||||
| Total derivatives portfolio, net | $ | $ | ($ | $ | $ | ($ | ||||||||||||||||||||
(1)Includes swaptions on credit indices with a notional or contractual amount of $6.4 billion and $6.8 billion at September 30, 2025 and December 31, 2024, respectively, and a fair value of $1.0
(2)Includes derivative instruments related to CRT transactions that are considered freestanding credit enhancements.
(3)Represents counterparty netting and cash collateral netting.
| Freddie Mac 3Q 2025 Form 10-Q | 71 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 8 | ||||
The table below presents offsetting and collateral information related to derivatives which are subject to enforceable master netting agreements or similar arrangements.
Table 8.2 - Offsetting of Derivatives
| September 30, 2025 | December 31, 2024 | |||||||||||||||||||
| Derivative Assets | Derivative Liabilities | Derivative Assets | Derivative Liabilities | |||||||||||||||||
| (In millions) | ||||||||||||||||||||
| OTC derivatives | $ | ($ | $ | ($ | ||||||||||||||||
| Cleared and exchange-traded derivatives | ( | |||||||||||||||||||
| Mortgage commitment derivatives | ( | ( | ||||||||||||||||||
| Other | ( | ( | ||||||||||||||||||
| Total derivatives | ( | ( | ||||||||||||||||||
| Counterparty netting | ( | ( | ||||||||||||||||||
Cash collateral netting(1) | ( | ( | ||||||||||||||||||
| Net amount presented in the condensed consolidated balance sheets | ( | ( | ||||||||||||||||||
Gross amount not offset in the condensed consolidated balance sheets(2) | ( | ( | ||||||||||||||||||
| Net amount | $ | ($ | $ | ($ | ||||||||||||||||
(1)Excess cash collateral held is presented as a derivative liability, while excess cash collateral posted is presented as a derivative asset.
Gains and Losses on Derivatives
The table below presents the gains and losses on derivatives not designated in qualifying hedge relationships. These amounts are reported on our condensed consolidated statements of income as investment gains, net.
Table 8.3 - Gains and Losses on Derivatives
| (In millions) | 3Q 2025 | 3Q 2024 | YTD 2025 | YTD 2024 | |||||||||||||
| Interest-rate risk management derivatives: | |||||||||||||||||
| Swaps | $ | ($ | ($ | ($ | |||||||||||||
| Written options | |||||||||||||||||
| Purchased options | ( | ( | ( | ( | |||||||||||||
| Futures | ( | ( | ( | ||||||||||||||
| Total interest-rate risk management derivatives fair value gains (losses) | ( | ( | ( | ||||||||||||||
| Mortgage commitment derivatives | ( | ( | ( | ( | |||||||||||||
CRT-related derivatives(1) | |||||||||||||||||
| Other | |||||||||||||||||
| Total derivatives not designated as hedges fair value gains (losses) | ($ | ($ | ($ | ($ | |||||||||||||
| Freddie Mac 3Q 2025 Form 10-Q | 72 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 8 | ||||
Hedge Accounting
The table below presents the effects of fair value hedge accounting by condensed consolidated statements of income line item, including the gains and losses on derivatives and hedged items designated in qualifying hedge relationships and other components due to the application of hedge accounting.
Table 8.4 - Gains and Losses on Fair Value Hedges
| 3Q 2025 | 3Q 2024 | ||||||||||||||||
| (In millions) | Interest Income | Interest Expense | Interest Income | Interest Expense | |||||||||||||
| Total amounts of income and expense line items presented in our condensed consolidated statements of income in which the effects of fair value hedges are recorded: | $ | ($ | $ | ($ | |||||||||||||
| Interest contracts on mortgage loans held-for-investment: | |||||||||||||||||
| Gain (loss) on fair value hedging relationships: | |||||||||||||||||
| Hedged items | — | — | |||||||||||||||
| Derivatives designated as hedging instruments | ( | — | ( | — | |||||||||||||
| Interest accruals on hedging instruments | — | — | |||||||||||||||
| Discontinued hedge related basis adjustments amortization | — | — | |||||||||||||||
| Interest contracts on debt: | |||||||||||||||||
| Gain (loss) on fair value hedging relationships: | |||||||||||||||||
| Hedged items | — | ( | — | ( | |||||||||||||
| Derivatives designated as hedging instruments | — | — | |||||||||||||||
| Interest accruals on hedging instruments | — | ( | — | ( | |||||||||||||
| Discontinued hedge related basis adjustment amortization | — | ( | — | ( | |||||||||||||
| Total impact of fair value hedge accounting | $ | ($ | $ | ($ | |||||||||||||
| YTD 2025 | YTD 2024 | ||||||||||||||||
| (In millions) | Interest Income | Interest Expense | Interest Income | Interest Expense | |||||||||||||
| Total amounts of income and expense line items presented in our condensed consolidated statements of income in which the effects of fair value hedges are recorded: | $ | ($ | $ | ($ | |||||||||||||
| Interest contracts on mortgage loans held-for-investment: | |||||||||||||||||
| Gain (loss) on fair value hedging relationships: | |||||||||||||||||
| Hedged items | — | — | |||||||||||||||
| Derivatives designated as hedging instruments | ( | — | ( | — | |||||||||||||
| Interest accruals on hedging instruments | — | — | |||||||||||||||
| Discontinued hedge related basis adjustments amortization | — | — | |||||||||||||||
| Interest contracts on debt: | |||||||||||||||||
| Gain (loss) on fair value hedging relationships: | |||||||||||||||||
| Hedged items | — | ( | — | ( | |||||||||||||
| Derivatives designated as hedging instruments | — | — | |||||||||||||||
| Interest accruals on hedging instruments | — | ( | — | ( | |||||||||||||
| Discontinued hedge related basis adjustment amortization | — | ( | — | ( | |||||||||||||
| Total impact of fair value hedge accounting | $ | ($ | $ | ($ | |||||||||||||
| Freddie Mac 3Q 2025 Form 10-Q | 73 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 8 | ||||
The table below presents the cumulative basis adjustments and the carrying amounts of the hedged item by its respective balance sheet line item.
Table 8.5 - Cumulative Basis Adjustments Due to Fair Value Hedging
| September 30, 2025 | |||||||||||||||||||||||||||||
| Carrying Amount Assets / (Liabilities) | Cumulative Amount of Fair Value Hedging Basis Adjustment Included in the Carrying Amount | Closed Portfolio Under the Portfolio Layer Method | |||||||||||||||||||||||||||
| (In millions) | Total | Under the Portfolio Layer Method | Discontinued - Hedge Related | Total Amount by Amortized Cost Basis | Designated Amount by UPB | ||||||||||||||||||||||||
| Mortgage loans held-for-investment | $ | ($ | ($ | ($ | $ | $ | |||||||||||||||||||||||
| Debt | ( | — | — | — | |||||||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||
| Carrying Amount Assets / (Liabilities) | Cumulative Amount of Fair Value Hedging Basis Adjustment Included in the Carrying Amount | Closed Portfolio Under the Portfolio Layer Method | |||||||||||||||||||||||||||
| (In millions) | Total | Under the Portfolio Layer Method | Discontinued - Hedge Related | Total Amount by Amortized Cost Basis | Designated Amount by UPB | ||||||||||||||||||||||||
| Mortgage loans held-for-investment | $ | ($ | ($ | ($ | $ | $ | |||||||||||||||||||||||
| Debt | ( | — | — | — | |||||||||||||||||||||||||
| Freddie Mac 3Q 2025 Form 10-Q | 74 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 9 | ||||
NOTE 9
Collateralized Agreements
Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase
The table below presents offsetting and collateral information related to securities purchased under agreements to resell, and securities sold under agreements to repurchase, which are subject to enforceable master netting agreements or similar arrangements.
Table 9.1 - Offsetting and Collateral Information of Certain Financial Assets and Liabilities
| September 30, 2025 | December 31, 2024 | ||||||||||||||||
| (In millions) | Securities Purchased Under Agreements to Resell | Securities Sold Under Agreements to Repurchase | Securities Purchased Under Agreements to Resell | Securities Sold Under Agreements to Repurchase | |||||||||||||
| Gross amount recognized | $ | ($ | $ | ($ | |||||||||||||
| Amount offset in the condensed consolidated balance sheets | ( | ( | |||||||||||||||
| Net amount presented in the condensed consolidated balance sheets | |||||||||||||||||
Gross amount not offset in the condensed consolidated balance sheets(1) | ( | ( | |||||||||||||||
| Net amount | $ | $ | $ | $ | |||||||||||||
(1)For securities purchased under agreements to resell, includes $91.8 billion and $104.9 billion of collateral that we had the right to repledge as of September 30, 2025 and December 31, 2024, respectively. We did not
The table below presents the remaining contractual maturity of our gross obligations for our securities sold under agreements to repurchase. The collateral for such obligations consisted primarily of U.S. Treasury securities.
Table 9.2 - Remaining Contractual Maturity
| (In millions) | September 30, 2025 | December 31, 2024 | |||||||||
| Overnight and continuous | $ | $ | |||||||||
| 30 days or less | |||||||||||
| After 30 days through 90 days | |||||||||||
| Greater than 90 days | |||||||||||
| Total | $ | $ | |||||||||
Collateral Pledged
The table below summarizes the fair value of the securities pledged as collateral by us for derivatives and collateralized borrowing transactions, including securities that the secured party may repledge, and for regulatory requirements.
Table 9.3 - Collateral in the Form of Securities Pledged
| (In millions) | September 30, 2025 | December 31, 2024 | |||||||||
| Trading securities | $ | $ | |||||||||
| Other assets | |||||||||||
| Total | $ | $ | |||||||||
| Freddie Mac 3Q 2025 Form 10-Q | 75 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 10 | ||||
NOTE 10
Net Interest Income
Table 10.1 - Components of Net Interest Income
| (In millions) | 3Q 2025 | 3Q 2024 | 3Q 2024 | YTD 2025 | YTD 2024 | |||||||||||||||
| Interest income | ||||||||||||||||||||
| Mortgage loans | $ | $ | $ | $ | ||||||||||||||||
| Investment securities | ||||||||||||||||||||
| Securities purchased under agreements to resell | ||||||||||||||||||||
| Other | ||||||||||||||||||||
| Total interest income | ||||||||||||||||||||
| Interest expense | ||||||||||||||||||||
| Debt of consolidated trusts | ( | ( | ( | ( | ||||||||||||||||
| Debt of Freddie Mac: | ||||||||||||||||||||
| Short-term debt | ( | ( | ( | ( | ||||||||||||||||
| Long-term debt | ( | ( | ( | ( | ||||||||||||||||
| Total interest expense | ( | ( | ( | ( | ||||||||||||||||
| Net interest income | ||||||||||||||||||||
| (Provision) benefit for credit losses | ( | ( | ( | |||||||||||||||||
| Net interest income after (provision) benefit for credit losses | $ | $ | $ | $ | ||||||||||||||||
| Freddie Mac 3Q 2025 Form 10-Q | 76 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 11 | ||||
NOTE 11
Segment Reporting
As shown in the table below, we have two reportable segments, Single-Family and Multifamily.
Segment | Description | ||||
Single-Family | Reflects results from our purchase, securitization, and guarantee of single-family loans, our investments in single-family loans and mortgage-related securities, the management of Single-Family mortgage credit risk and market risk, and any results of our treasury function that are not allocated to each segment. | ||||
Multifamily | Reflects results from our purchase, securitization, and guarantee of multifamily loans, our investments in multifamily loans and mortgage-related securities, and the management of Multifamily mortgage credit risk and market risk. | ||||
Segment Results
The table below presents the financial results for our Single-Family and Multifamily segments.
Table 11.1 - Segment Financial Results
| 3Q 2025 | 3Q 2024 | |||||||||||||||||||||||||
| (In millions) | Single-Family | Multifamily | Total | Single-Family | Multifamily | Total | ||||||||||||||||||||
| Net interest income | ||||||||||||||||||||||||||
| Interest income | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Interest expense | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||
| Net interest income | ||||||||||||||||||||||||||
| Non-interest income | ||||||||||||||||||||||||||
| Guarantee income | ||||||||||||||||||||||||||
| Investment gains (losses), net | ( | ( | ( | |||||||||||||||||||||||
| Other income | ||||||||||||||||||||||||||
| Non-interest income | ( | |||||||||||||||||||||||||
| Net revenues | ||||||||||||||||||||||||||
| (Provision) benefit for credit losses | ( | ( | ( | |||||||||||||||||||||||
| Non-interest expense | ||||||||||||||||||||||||||
Administrative expense(1) | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||
| Credit enhancement expense | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||
| Legislative and regulatory assessments | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||
| Other expense | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||
| Non-interest expense | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||
| Income before income tax expense | ||||||||||||||||||||||||||
| Income tax expense | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||
| Net income | ||||||||||||||||||||||||||
| Other comprehensive income (loss), net of taxes and reclassification adjustments | ||||||||||||||||||||||||||
| Comprehensive income | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Freddie Mac 3Q 2025 Form 10-Q | 77 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 11 | ||||
| YTD 2025 | YTD 2024 | |||||||||||||||||||||||||
| (In millions) | Single-Family | Multifamily | Total | Single-Family | Multifamily | Total | ||||||||||||||||||||
| Net interest income | ||||||||||||||||||||||||||
| Interest income | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Interest expense | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||
| Net interest income | ||||||||||||||||||||||||||
| Non-interest income | ||||||||||||||||||||||||||
| Guarantee income | ||||||||||||||||||||||||||
| Investment gains (losses), net | ( | |||||||||||||||||||||||||
| Other income | ||||||||||||||||||||||||||
| Non-interest income | ||||||||||||||||||||||||||
| Net revenues | ||||||||||||||||||||||||||
| (Provision) benefit for credit losses | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||
| Non-interest expense | ||||||||||||||||||||||||||
Administrative expense(1) | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||
| Credit enhancement expense | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||
| Legislative and regulatory assessments | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||
| Other expense | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||
| Non-interest expense | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||
| Income before income tax expense | ||||||||||||||||||||||||||
| Income tax expense | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||
| Net income | ||||||||||||||||||||||||||
| Other comprehensive income (loss), net of taxes and reclassification adjustments | ||||||||||||||||||||||||||
| Comprehensive income | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
(1)Includes salaries and employee benefits and professional services, technology, and occupancy.
The table below presents total assets for our Single-Family and Multifamily segments.
Table 11.2 - Segment Assets
| (In millions) | September 30, 2025 | December 31, 2024 | |||||||||
| Single-Family | $ | $ | |||||||||
| Multifamily | |||||||||||
| Total segment assets | |||||||||||
Reconciling items(1) | ( | ( | |||||||||
| Total assets per condensed consolidated balance sheets | $ | $ | |||||||||
| Freddie Mac 3Q 2025 Form 10-Q | 78 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 12 | ||||
NOTE 12
Concentration of Credit and Other Risks
Single-Family Mortgage Portfolio
The table below summarizes the concentration by geographic area of our Single-Family mortgage portfolio. See Note 2, Note 3, Note 4, and Note 5 for additional information about credit risk associated with single-family loans that we hold or guarantee.
Table 12.1 - Concentration of Credit Risk of Our Single-Family Mortgage Portfolio
| September 30, 2025 | ||||||||||||||
| (Dollars in millions) | Portfolio UPB(1) | % of Portfolio | SDQ Rate | |||||||||||
Region:(2) | ||||||||||||||
| West | $ | % | % | |||||||||||
| Northeast | ||||||||||||||
| Southeast | ||||||||||||||
| Southwest | ||||||||||||||
| North Central | ||||||||||||||
| Total | $ | % | ||||||||||||
| State: | ||||||||||||||
| California | $ | % | ||||||||||||
| Texas | ||||||||||||||
| Florida | ||||||||||||||
| New York | ||||||||||||||
| Illinois | ||||||||||||||
| All other | ||||||||||||||
| Total | $ | % | ||||||||||||
(1)Excludes UPB of loans underlying certain securitization products for which data was not available.
(2)Region designation: West (AK, AS, AZ, CA, GU, HI, ID, MP, MT, NV, OR, UT, WA); Northeast (CT, DE, DC, MA, ME, MD, NH, NJ, NY, PA, RI, VT, VA, WV); Southeast (AL, FL, GA, KY, MS, NC, PR, SC, TN, U.S. VI); Southwest (AR, CO, KS, LA, MO, NE, NM, OK, TX, WY); North Central (IL, IN, IA, MI, MN, ND, OH, SD, WI).
| Freddie Mac 3Q 2025 Form 10-Q | 79 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 12 | ||||
Multifamily Mortgage Portfolio
The table below summarizes the concentration by geographic area of our Multifamily mortgage portfolio. See Note 2, Note 3, Note 4, and Note 5 for additional information about credit risk associated with multifamily loans that we hold or guarantee.
Table 12.2 - Concentration of Credit Risk of Our Multifamily Mortgage Portfolio
| September 30, 2025 | ||||||||||||||
| (Dollars in millions) | Portfolio UPB | % of Portfolio | Delinquency Rate(1) | |||||||||||
Region(2)(3): | ||||||||||||||
| Northeast | $ | % | % | |||||||||||
| West | ||||||||||||||
| Southeast | ||||||||||||||
| Southwest | ||||||||||||||
| North Central | ||||||||||||||
| Total | $ | % | ||||||||||||
State(3): | ||||||||||||||
| California | $ | % | ||||||||||||
| Texas | ||||||||||||||
| Florida | ||||||||||||||
| New York | ||||||||||||||
| Georgia | ||||||||||||||
| All other | ||||||||||||||
| Total | $ | % | ||||||||||||
(1)Based on loans two monthly payments or more delinquent or in foreclosure.
(2)Region designation: Northeast (CT, DE, DC, MA, ME, MD, NH, NJ, NY, PA, RI, VT, VA, WV); West (AK, AS, AZ, CA, GU, HI, ID, MP, MT, NV, OR, UT, WA); Southeast (AL, FL, GA, KY, MS, NC, PR, SC, TN, U.S. VI); Southwest (AR, CO, KS, LA, MO, NE, NM, OK, TX, WY); North Central (IL, IN, IA, MI, MN, ND, OH, SD, WI).
(3)Loans collateralized by properties located in multiple regions or states are reported entirely in the region or state with the largest UPB as of origination.
| Freddie Mac 3Q 2025 Form 10-Q | 80 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 13 | ||||
NOTE 13
Fair Value Disclosures
We use fair value measurements for the initial recording of certain assets and liabilities and periodic remeasurement of certain assets and liabilities on a recurring or non-recurring basis.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The table below presents our assets and liabilities measured on our condensed consolidated balance sheets at fair value on a recurring basis subsequent to initial recognition, including instruments where we have elected the fair value option.
Table 13.1 - Assets and Liabilities Measured at Fair Value on a Recurring Basis
| September 30, 2025 | ||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Netting Adjustments(1) | Total | |||||||||||||||
Assets: | ||||||||||||||||||||
| Investment securities: | ||||||||||||||||||||
| Available-for-sale | $ | $ | $ | $— | $ | |||||||||||||||
| Trading: | ||||||||||||||||||||
| Mortgage-related securities | — | |||||||||||||||||||
| Non-mortgage-related securities | — | |||||||||||||||||||
| Total trading securities | — | |||||||||||||||||||
| Total investment securities | — | |||||||||||||||||||
| Mortgage loans held-for-sale | — | |||||||||||||||||||
| Mortgage loans held-for-investment | — | |||||||||||||||||||
| Other assets: | ||||||||||||||||||||
| Guarantee assets | — | |||||||||||||||||||
| Derivative assets, net | (4,342) | |||||||||||||||||||
| Other assets | — | |||||||||||||||||||
| Total other assets | (4,342) | |||||||||||||||||||
| Total assets carried at fair value on a recurring basis | $ | $ | $ | ($ | $ | |||||||||||||||
| Liabilities: | ||||||||||||||||||||
| Debt: | ||||||||||||||||||||
| Debt of consolidated trusts | $ | $ | $ | $— | $ | |||||||||||||||
| Debt of Freddie Mac | — | |||||||||||||||||||
| Total debt | — | |||||||||||||||||||
| Other liabilities: | ||||||||||||||||||||
| Derivative liabilities, net | (4,359) | |||||||||||||||||||
| Total liabilities carried at fair value on a recurring basis | $ | $ | $ | ($ | $ | |||||||||||||||
| Freddie Mac 3Q 2025 Form 10-Q | 81 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 13 | ||||
| December 31, 2024 | ||||||||||||||||||||
| (In millions) | Level 1 | Level 2 | Level 3 | Netting Adjustments(1) | Total | |||||||||||||||
| Assets: | ||||||||||||||||||||
| Investment securities: | ||||||||||||||||||||
| Available-for-sale | $ | $ | $ | $— | $ | |||||||||||||||
| Trading: | ||||||||||||||||||||
| Mortgage-related securities | — | |||||||||||||||||||
| Non-mortgage-related securities | — | |||||||||||||||||||
| Total trading securities | — | |||||||||||||||||||
| Total investment securities | — | |||||||||||||||||||
| Mortgage loans held-for-sale | — | |||||||||||||||||||
| Mortgage loans held-for-investment | — | |||||||||||||||||||
| Other assets: | ||||||||||||||||||||
| Guarantee assets | — | |||||||||||||||||||
| Derivative assets, net | (5,989) | |||||||||||||||||||
| Other assets | — | |||||||||||||||||||
| Total other assets | (5,989) | |||||||||||||||||||
| Total assets carried at fair value on a recurring basis | $ | $ | $ | ($ | $ | |||||||||||||||
| Liabilities: | ||||||||||||||||||||
| Debt: | ||||||||||||||||||||
| Debt of consolidated trusts | $ | $ | $ | $— | $ | |||||||||||||||
| Debt of Freddie Mac | — | |||||||||||||||||||
| Total debt | — | |||||||||||||||||||
| Other liabilities: | ||||||||||||||||||||
| Derivative liabilities, net | (6,282) | |||||||||||||||||||
| Other liabilities | — | |||||||||||||||||||
| Total other liabilities | (6,282) | |||||||||||||||||||
| Total liabilities carried at fair value on a recurring basis | $ | $ | $ | ($ | $ | |||||||||||||||
(1) Represents counterparty netting and cash collateral netting, and includes accrued interest receivable and payable.
| Freddie Mac 3Q 2025 Form 10-Q | 82 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 13 | ||||
Level 3 Fair Value Measurements
The table below presents a reconciliation of all assets and liabilities measured on our condensed consolidated balance sheets at fair value on a recurring basis using significant unobservable inputs (Level 3), including transfers into and out of Level 3. The table also presents gains and losses due to changes in fair value, including both realized and unrealized gains and losses, recognized on our condensed consolidated statements of income for Level 3 assets and liabilities.
Table 13.2 - Fair Value Measurements of Assets and Liabilities Using Significant Unobservable Inputs
| 3Q 2025 | ||||||||||||||||||||||||||||||||
| (In millions) | Investment Securities | Mortgage Loans Held-for-Sale | Mortgage Loans Held-for-Investment | Other Assets | Total Liabilities | |||||||||||||||||||||||||||
| Balance at July 1, 2025 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Total realized/unrealized gains/losses(1) | ||||||||||||||||||||||||||||||||
| Included in earnings | ( | ( | ( | |||||||||||||||||||||||||||||
| Included in other comprehensive income | ||||||||||||||||||||||||||||||||
| Purchases | ( | |||||||||||||||||||||||||||||||
| Issues | ||||||||||||||||||||||||||||||||
| Sales | ( | |||||||||||||||||||||||||||||||
| Settlements, net | ( | ( | ( | ( | ||||||||||||||||||||||||||||
| Transfers into Level 3 | ||||||||||||||||||||||||||||||||
| Transfers out of Level 3 | ( | ( | ||||||||||||||||||||||||||||||
| Balance at September 30, 2025 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Change in unrealized gains/losses(1) included in net income related to assets and liabilities still held as of September 30, 2025(2) | $ | $ | ($ | $ | ($ | |||||||||||||||||||||||||||
Change in unrealized gains/losses(1), net of tax, included in OCI related to assets and liabilities still held as of September 30, 2025 | ||||||||||||||||||||||||||||||||
| YTD 2025 | ||||||||||||||||||||||||||||||||
| (In millions) | Investment Securities | Mortgage Loans Held-for-Sale | Mortgage Loans Held-for-Investment | Other Assets | Total Liabilities | |||||||||||||||||||||||||||
| Balance at January 1, 2025 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Total realized/unrealized gains/losses(1) | ||||||||||||||||||||||||||||||||
| Included in earnings | ( | ( | ( | |||||||||||||||||||||||||||||
| Included in other comprehensive income | ||||||||||||||||||||||||||||||||
| Purchases | ( | |||||||||||||||||||||||||||||||
| Issues | ||||||||||||||||||||||||||||||||
| Sales | ( | |||||||||||||||||||||||||||||||
| Settlements, net | ( | ( | ( | ( | ||||||||||||||||||||||||||||
| Transfers into Level 3 | ||||||||||||||||||||||||||||||||
Transfers out of Level 3(3) | ( | ( | ( | |||||||||||||||||||||||||||||
| Balance at September 30, 2025 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Change in unrealized gains/losses(1) included in net income related to assets and liabilities still held as of September 30, 2025(2) | $ | $ | ($ | $ | ($ | |||||||||||||||||||||||||||
Change in unrealized gains/losses(1), net of tax, included in OCI related to assets and liabilities still held as of September 30, 2025 | ||||||||||||||||||||||||||||||||
| Freddie Mac 3Q 2025 Form 10-Q | 83 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 13 | ||||
| 3Q 2024 | ||||||||||||||||||||||||||||||||
| (In millions) | Investment Securities | Mortgage Loans Held-for-Sale | Mortgage Loans Held-for-Investment | Other Assets | Total Liabilities | |||||||||||||||||||||||||||
| Balance at July 1, 2024 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Total realized/unrealized gains/losses(1) | ||||||||||||||||||||||||||||||||
| Included in earnings | ( | |||||||||||||||||||||||||||||||
| Included in other comprehensive income | ||||||||||||||||||||||||||||||||
| Purchases | ||||||||||||||||||||||||||||||||
| Issues | ||||||||||||||||||||||||||||||||
| Sales | ( | ( | ||||||||||||||||||||||||||||||
| Settlements, net | ( | ( | ( | ( | ||||||||||||||||||||||||||||
| Transfers into Level 3 | ||||||||||||||||||||||||||||||||
| Transfers out of Level 3 | ( | ( | ||||||||||||||||||||||||||||||
| Balance at September 30, 2024 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Change in unrealized gains/losses(1) included in net income related to assets and liabilities still held as of September 30, 2024(2) | $ | $ | $ | $ | ($ | |||||||||||||||||||||||||||
Change in unrealized gains/losses(1), net of tax, included in OCI related to assets and liabilities still held as of September 30, 2024 | ||||||||||||||||||||||||||||||||
| YTD 2024 | ||||||||||||||||||||||||||||||||
| (In millions) | Investment Securities | Mortgage Loans Held-for-Sale | Mortgage Loans Held-for-Investment | Other Assets | Total Liabilities | |||||||||||||||||||||||||||
| Balance at January 1, 2024 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Total realized/unrealized gains/losses(1) | ||||||||||||||||||||||||||||||||
| Included in earnings | ( | ( | ( | |||||||||||||||||||||||||||||
| Included in other comprehensive income | ||||||||||||||||||||||||||||||||
| Purchases | ( | |||||||||||||||||||||||||||||||
| Issues | ||||||||||||||||||||||||||||||||
| Sales | ( | ( | ||||||||||||||||||||||||||||||
| Settlements, net | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||
| Transfers into Level 3 | ||||||||||||||||||||||||||||||||
| Transfers out of Level 3 | ( | ( | ( | ( | ||||||||||||||||||||||||||||
| Balance at September 30, 2024 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Change in unrealized gains/losses(1) included in net income related to assets and liabilities still held as of September 30, 2024(2) | $ | $ | ($ | $ | ($ | |||||||||||||||||||||||||||
Change in unrealized gains/losses(1), net of tax, included in OCI related to assets and liabilities still held as of September 30, 2024 | ||||||||||||||||||||||||||||||||
(1)For assets, increase and decrease in earnings and other comprehensive income is shown as gains and (losses), respectively. For liabilities, increase and decrease in earnings and comprehensive income is shown as (gains) and losses, respectively.
(2)Represents the amount of total gains or losses for the period, included in earnings, attributable to the change in unrealized gains and losses related to assets and liabilities classified as Level 3 that were still held at September 30, 2025 and September 30, 2024, respectively.
| Freddie Mac 3Q 2025 Form 10-Q | 84 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 13 | ||||
The table below provides valuation techniques, the range, and the weighted average of significant unobservable inputs for Level 3 assets and liabilities measured on our condensed consolidated balance sheets at fair value on a recurring basis.
Table 13.3 - Quantitative Information about Recurring Level 3 Fair Value Measurements
| September 30, 2025 | ||||||||||||||||||||||||||||||||
Level 3 Fair Value | Predominant Valuation Technique(s) | Unobservable Inputs | ||||||||||||||||||||||||||||||
(Dollars in millions, except for certain unobservable inputs as shown) | Type | Range | Weighted Average(1) | |||||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||
| Investment securities | $ | External pricing sources | Price | $ | $ | |||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||||||||
| Mortgage loans held-for-investment | External pricing sources | Price | $ | $ | ||||||||||||||||||||||||||||
| Other assets | Discounted cash flows | OAS | ||||||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||||||||
| Total Level 3 assets | $ | |||||||||||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||||||||
| Total Level 3 liabilities | $ | |||||||||||||||||||||||||||||||
| December 31, 2024 | ||||||||||||||||||||||||||||||||
Level 3 Fair Value | Predominant Valuation Technique(s) | Unobservable Inputs | ||||||||||||||||||||||||||||||
(Dollars in millions, except for certain unobservable inputs as shown) | Type | Range | Weighted Average(1) | |||||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||
| Investment securities | $ | External pricing sources | Price | $ | $ | |||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||||||||
| Mortgage loans held-for-sale | External pricing sources | Price | $ | $ | ||||||||||||||||||||||||||||
| Mortgage loans held-for-investment | External pricing sources | Price | $ | $ | ||||||||||||||||||||||||||||
| Other assets | Discounted cash flows | OAS | ||||||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||||||||
| Total Level 3 assets | $ | |||||||||||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||||||||
| Total Level 3 liabilities | $ | |||||||||||||||||||||||||||||||
(1) Unobservable inputs were weighted primarily by the relative fair value of the financial instruments.
Assets Measured at Fair Value on a Non-Recurring Basis
We may be required, from time to time, to measure certain assets at fair value on a non-recurring basis. The table below presents assets measured on our condensed consolidated balance sheets at fair value on a non-recurring basis.
Table 13.4 - Assets Measured at Fair Value on a Non-Recurring Basis
| (In millions) | September 30, 2025 | December 31, 2024 | |||||||||
Mortgage loans:(1) | |||||||||||
| Level 1 | $ | $ | |||||||||
| Level 2 | |||||||||||
Level 3(2) | |||||||||||
| Total | $ | $ | |||||||||
(1)Includes loans that are classified as held-for-investment where we recognize credit losses, either through an allowance for credit losses or charge-off, based on the fair value of the underlying collateral and held-for-sale loans where the fair value is below cost. The valuation date for certain items may occur during the period and not at period end.
(2)The predominant valuation technique used for Level 3 non-recurring fair value measurement at both September 30, 2025 and December 31, 2024 was external pricing sources. The unobservable inputs included a range of $19.7 - $105.0 and weighted average of $83.5 at September 30, 2025 and a range of $74.1 - $100.4 and weighted average of $82.3 at December 31, 2024.
| Freddie Mac 3Q 2025 Form 10-Q | 85 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 13 | ||||
Fair Value of Financial Instruments
The table below presents the carrying value and estimated fair value of our financial instruments. For certain types of financial instruments, such as cash and cash equivalents, securities purchased under agreements to resell, and certain debt, the carrying value on our condensed consolidated balance sheets approximates fair value, as these assets and liabilities are short-term in nature and have limited fair value volatility.
Table 13.5 - Fair Value of Financial Instruments
| September 30, 2025 | |||||||||||||||||||||||||||||||||||||||||
GAAP Measurement Category(1) | Carrying Amount(2) | Fair Value | |||||||||||||||||||||||||||||||||||||||
| (In millions) | Level 1 | Level 2 | Level 3 | Netting Adjustments(3) | Total | ||||||||||||||||||||||||||||||||||||
| Financial assets | |||||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | Amortized cost | $ | $ | $ | $ | $— | $ | ||||||||||||||||||||||||||||||||||
| Securities purchased under agreements to resell | Amortized cost | ( | |||||||||||||||||||||||||||||||||||||||
| Investment securities: | |||||||||||||||||||||||||||||||||||||||||
| Available-for-sale | FV - OCI | — | |||||||||||||||||||||||||||||||||||||||
| Trading | FV - NI | — | |||||||||||||||||||||||||||||||||||||||
| Total investment securities | — | ||||||||||||||||||||||||||||||||||||||||
| Mortgage loans held-for-sale | Various(4) | — | |||||||||||||||||||||||||||||||||||||||
| Mortgage loans held-for-investment, net of allowance for credit losses | Various(5) | — | |||||||||||||||||||||||||||||||||||||||
| Other assets: | |||||||||||||||||||||||||||||||||||||||||
| Guarantee assets | FV - NI | — | |||||||||||||||||||||||||||||||||||||||
| Derivative assets, net | FV - NI | ( | |||||||||||||||||||||||||||||||||||||||
Other assets(6) | Various | — | |||||||||||||||||||||||||||||||||||||||
| Total other assets | (4,342) | ||||||||||||||||||||||||||||||||||||||||
| Total financial assets | $ | $ | $ | $ | ($ | $ | |||||||||||||||||||||||||||||||||||
| Financial liabilities | |||||||||||||||||||||||||||||||||||||||||
| Debt: | |||||||||||||||||||||||||||||||||||||||||
| Debt of consolidated trusts | $ | $ | $ | $ | $— | $ | |||||||||||||||||||||||||||||||||||
| Debt of Freddie Mac | ( | ||||||||||||||||||||||||||||||||||||||||
| Total debt | Various(7) | ( | |||||||||||||||||||||||||||||||||||||||
| Other liabilities: | |||||||||||||||||||||||||||||||||||||||||
| Guarantee obligations | Amortized cost | — | |||||||||||||||||||||||||||||||||||||||
| Derivative liabilities, net | FV - NI | ( | |||||||||||||||||||||||||||||||||||||||
Other liabilities(6) | FV - NI | — | |||||||||||||||||||||||||||||||||||||||
| Total other liabilities | (4,359) | ||||||||||||||||||||||||||||||||||||||||
| Total financial liabilities | $ | $ | $ | $ | ($ | $ | |||||||||||||||||||||||||||||||||||
| Freddie Mac 3Q 2025 Form 10-Q | 86 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 13 | ||||
| December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||
GAAP Measurement Category(1) | Carrying Amount(2) | Fair Value | |||||||||||||||||||||||||||||||||||||||
| (In millions) | Level 1 | Level 2 | Level 3 | Netting Adjustments(3) | Total | ||||||||||||||||||||||||||||||||||||
| Financial assets | |||||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | Amortized cost | $ | $ | $ | $ | $— | $ | ||||||||||||||||||||||||||||||||||
| Securities purchased under agreements to resell | Amortized cost | ( | |||||||||||||||||||||||||||||||||||||||
| Investment securities: | |||||||||||||||||||||||||||||||||||||||||
| Available-for-sale | FV - OCI | — | |||||||||||||||||||||||||||||||||||||||
| Trading | FV - NI | — | |||||||||||||||||||||||||||||||||||||||
| Total investment securities | — | ||||||||||||||||||||||||||||||||||||||||
| Mortgage loans held-for-sale | Various(4) | — | |||||||||||||||||||||||||||||||||||||||
| Mortgage loans held-for-investment, net of allowance for credit losses | Various(5) | — | |||||||||||||||||||||||||||||||||||||||
| Other assets: | |||||||||||||||||||||||||||||||||||||||||
| Guarantee assets | FV - NI | — | |||||||||||||||||||||||||||||||||||||||
| Derivative assets, net | FV - NI | ( | |||||||||||||||||||||||||||||||||||||||
Other assets(6) | Various | — | |||||||||||||||||||||||||||||||||||||||
| Total other assets | (5,989) | ||||||||||||||||||||||||||||||||||||||||
| Total financial assets | $ | $ | $ | $ | ($ | $ | |||||||||||||||||||||||||||||||||||
| Financial liabilities | |||||||||||||||||||||||||||||||||||||||||
| Debt: | |||||||||||||||||||||||||||||||||||||||||
| Debt of consolidated trusts | $ | $ | $ | $ | $— | $ | |||||||||||||||||||||||||||||||||||
| Debt of Freddie Mac | ( | ||||||||||||||||||||||||||||||||||||||||
| Total debt | Various(7) | (8,220) | |||||||||||||||||||||||||||||||||||||||
| Other liabilities: | |||||||||||||||||||||||||||||||||||||||||
| Guarantee obligations | Amortized cost | — | |||||||||||||||||||||||||||||||||||||||
| Derivative liabilities, net | FV - NI | ( | |||||||||||||||||||||||||||||||||||||||
Other liabilities(6) | FV - NI | — | |||||||||||||||||||||||||||||||||||||||
| Total other liabilities | (6,282) | ||||||||||||||||||||||||||||||||||||||||
| Total financial liabilities | $ | $ | $ | $ | ($ | $ | |||||||||||||||||||||||||||||||||||
(1)FV - NI denotes fair value through net income. FV - OCI denotes fair value through other comprehensive income.
(2)Excludes allowance for credit losses on off-balance sheet credit exposure.
(3)Represents counterparty netting and cash collateral netting, and includes accrued interest receivable and payable.
(4)The GAAP carrying amounts measured at lower-of-cost-or-fair-value and FV - NI were $1.8 billion and $0.0 billion as of September 30, 2025, respectively, and $4.2 billion and $11.4 billion as of December 31, 2024, respectively.
(5)The GAAP carrying amounts measured at amortized cost and FV - NI were $3.2 trillion and $7.1 billion as of September 30, 2025, respectively, and $3.2 trillion and $2.4 billion as of December 31, 2024, respectively.
(6)For other assets, includes advances to lenders, secured lending, and loan commitments. For other liabilities, includes loan commitments.
| Freddie Mac 3Q 2025 Form 10-Q | 87 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 13 | ||||
Fair Value Option
We elected the fair value option for certain mortgage loans and loan commitments and certain debt issuances.
The table below presents the fair value and UPB related to items for which we have elected the fair value option.
Table 13.6 - Difference Between Fair Value and UPB for Certain Financial Instruments with Fair Value Option Elected(1)
| September 30, 2025 | December 31, 2024 | |||||||||||||||||||||||||
| (In millions) | Fair Value | UPB | Difference | Fair Value | UPB | Difference | ||||||||||||||||||||
| Mortgage loans held-for-sale | $ | $ | $ | $ | $ | ($ | ||||||||||||||||||||
| Mortgage loans held-for-investment | ( | ( | ||||||||||||||||||||||||
| Debt of Freddie Mac | ||||||||||||||||||||||||||
| Debt of consolidated trusts | ( | ( | ||||||||||||||||||||||||
| Other assets (other liabilities) | N/A | N/A | N/A | N/A | ||||||||||||||||||||||
Changes in Fair Value Under the Fair Value Option Election
The table below presents the changes in fair value related to items for which we have elected the fair value option. These amounts are included in investment gains, net, on our condensed consolidated statements of income.
Table 13.7 - Changes in Fair Value Under the Fair Value Option Election
| 3Q 2025 | 3Q 2024 | YTD 2025 | YTD 2024 | |||||||||||||||||
| (In millions) | Gains (Losses) | Gains (Losses) | ||||||||||||||||||
| Mortgage loans held-for-sale | $ | $ | $ | $ | ||||||||||||||||
| Mortgage loans held-for-investment | ( | ( | ||||||||||||||||||
| Debt of Freddie Mac | ||||||||||||||||||||
| Debt of consolidated trusts | ( | ( | ( | |||||||||||||||||
| Other assets/other liabilities | ||||||||||||||||||||
Changes in fair value attributable to instrument-specific credit risk were not material for the periods presented for assets or liabilities for which we elected the fair value option.
| Freddie Mac 3Q 2025 Form 10-Q | 88 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 14 | ||||
NOTE 14
Legal Contingencies
We are involved, directly or indirectly, in a variety of legal and regulatory proceedings arising from time to time in the ordinary course of business (including, among other things, contractual disputes, personal injury claims, employment-related litigation, and other legal proceedings incidental to our business) and in connection with the conservatorship and Purchase Agreement. We are frequently involved, directly or indirectly, in litigation involving mortgage foreclosures. From time to time, we are also involved in proceedings arising from our termination of a seller's or servicer's eligibility to sell loans to, and/or service loans for, us. In these cases, the former seller or servicer sometimes seeks damages against us for wrongful termination under a variety of legal theories. In addition, we are sometimes sued in connection with the origination or servicing of loans. These suits typically involve claims alleging wrongful actions of sellers and servicers. Our contracts with our sellers and servicers generally provide for indemnification of Freddie Mac against liability arising from sellers' and servicers' wrongful actions with respect to loans sold to or serviced for Freddie Mac.
Litigation claims and proceedings of all types are subject to many uncertainties (including appeals and procedural filings), and there can be no assurance as to the ultimate outcome of those actions (including the matters described below). In accordance with the accounting guidance for contingencies, we reserve for litigation claims and assessments asserted or threatened against us when a loss is probable (as defined in such guidance) and the amount of the loss can be reasonably estimated. The actual costs of resolving legal actions may be substantially higher or lower than the amounts accrued for those actions.
It is not possible for us to predict the actions the U.S. government (including Treasury and FHFA) might take in connection with any of these lawsuits or any future lawsuits. However, it is possible that we could be adversely affected by these actions, including, for example, by changes to the Purchase Agreement, or any resulting actual or perceived changes in the level of U.S. government support for our business.
Putative Securities Class Action Lawsuit: Ohio Public Employees Retirement System v. Freddie Mac, Syron, et al.
This putative securities class action lawsuit was filed against Freddie Mac and certain former officers on January 18, 2008 in the U.S. District Court for the Northern District of Ohio purportedly on behalf of a class of purchasers of Freddie Mac stock from August 1, 2006 through November 20, 2007. FHFA later intervened as Conservator, and the plaintiff amended its complaint on several occasions. The plaintiff alleged, among other things, that the defendants violated federal securities laws by making false and misleading statements concerning our business, risk management, and the procedures we put into place to protect the company from problems in the mortgage industry. The plaintiff seeks unspecified damages and interest, and reasonable costs and expenses, including attorney and expert fees.
In August 2018, the District Court denied the plaintiff's motion for class certification. On April 6, 2023, the U.S. Court of Appeals for the Sixth Circuit reversed the District Court's September 17, 2020 ruling, which had granted the plaintiff's request for summary judgment and entered final judgment in favor of Freddie Mac and other defendants, and remanded the case to the District Court for further proceedings. On August 29, 2025, the District Court granted defendants' motions for summary judgment and final judgment was entered for all defendants. On September 23, 2025, the plaintiff filed a notice of appeal to the U.S. Court of Appeals for the Sixth Circuit.
Litigation Concerning the Purchase Agreement in the U.S. District Court for the District of Columbia
In re Fannie Mae/Freddie Mac Senior Preferred Stock Purchase Agreement Class Action Litigations. This is a consolidated class action lawsuit filed by private individual and institutional investors (collectively, "Class Plaintiffs") against FHFA, Fannie Mae, and Freddie Mac.
Fairholme Funds, Inc., et al. v. FHFA, et al. This is an individual plaintiffs’ lawsuit by certain institutional investors (“Individual Plaintiffs”) against FHFA, Fannie Mae, and Freddie Mac.
The Class Plaintiffs and Individual Plaintiffs (collectively "Plaintiffs") in the District of Columbia lawsuits filed an amended complaint on November 1, 2017 alleging claims for breach of contract, breach of the implied covenant of good faith and fair dealing, breach of fiduciary duties, and violation of Delaware and Virginia corporate law. Additionally, the Class Plaintiffs brought derivative claims against FHFA for breach of fiduciary duties and the Individual Plaintiffs brought claims under the Administrative Procedure Act. Both sets of claims are generally based on allegations that the net worth sweep dividend provisions of the senior preferred stock that were implemented pursuant to the August 2012 amendments nullified certain of the shareholders’ rights, including the rights to receive dividends and a liquidation preference. On September 28, 2018, the District
| Freddie Mac 3Q 2025 Form 10-Q | 89 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 14 | ||||
Court dismissed all of the claims except those for breach of the implied covenant of good faith and fair dealing. The cases were consolidated for trial.
Court rulings limited the Plaintiffs’ damages theories to those based on the decline in Freddie Mac’s and Fannie Mae’s share value immediately after the Third Amendment. The Plaintiffs asserted losses based on the decline in value of Freddie Mac’s common and junior preferred stock from August 16 to August 17, 2012. During the trial in October and early November 2022, the Plaintiffs requested that the jury award $832 million plus pre-judgment interest as damages against Freddie Mac. The jury in that trial was not able to reach a unanimous verdict and on November 7, 2022 the judge declared a mistrial. The retrial started on July 24, 2023. On August 14, 2023, the jury returned a verdict against FHFA, Fannie Mae, and Freddie Mac, awarding compensatory damages of $282 million to Freddie Mac junior preferred shareholders and $31 million to Freddie Mac common shareholders. The jury declined to award the Freddie Mac shareholders prejudgment interest. In 2023, we recorded a $313 million accrual in other expense on our condensed consolidated statements of income for the adverse judgment. On March 20, 2024, the District Court entered final judgment. On April 17, 2024, the defendants filed a motion in the District Court requesting entry of judgment in their favor notwithstanding the jury verdict. That motion was denied on March 14, 2025. The defendants filed a notice of appeal to the U.S. Court of Appeals for the D.C. Circuit on April 11, 2025. On April 25, 2025, the individual plaintiffs and the class plaintiffs filed their own appeals to the U.S. Court of Appeals for the D.C. Circuit. Under the schedule set by the U.S. Court of Appeals for the D.C. Circuit, briefing will be completed in February 2026.
| Freddie Mac 3Q 2025 Form 10-Q | 90 | |||||||
| Financial Statements | Notes to the Condensed Consolidated Financial Statements | Note 15 | ||||
NOTE 15
Regulatory Capital
The table below presents our capital metrics under the ERCF.
Table 15.1 - ERCF Available Capital and Capital Requirements
| (In billions) | September 30, 2025 | December 31, 2024 | |||||||||||||||||||||
| Adjusted total assets | $ | $ | |||||||||||||||||||||
| Risk-weighted assets (standardized approach) | |||||||||||||||||||||||
| September 30, 2025 | |||||||||||||||||||||||
| Amounts | Ratios | ||||||||||||||||||||||
| (Dollars in billions) | Available Capital (Deficit) | Minimum Capital Requirement | Capital Requirement (Including Buffer(1)) | Available Capital (Deficit) Ratio(2) | Minimum Capital Requirement Ratio(2) | Capital Requirement Ratio(2) (Including Buffer(1)) | |||||||||||||||||
| Risk-based capital: | |||||||||||||||||||||||
| Total capital | $ | $ | $ | % | % | % | |||||||||||||||||
| CET1 capital | ( | ( | |||||||||||||||||||||
| Tier 1 capital | ( | ( | |||||||||||||||||||||
| Adjusted total capital | ( | ( | |||||||||||||||||||||
| Leverage capital: | |||||||||||||||||||||||
| Core capital | ( | ( | |||||||||||||||||||||
| Tier 1 capital | ( | ( | |||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||
| Amounts | Ratios | ||||||||||||||||||||||
| (Dollars in billions) | Available Capital (Deficit) | Minimum Capital Requirement | Capital Requirement (Including Buffer(1)) | Available Capital (Deficit) Ratio(2) | Minimum Capital Requirement Ratio(2) | Capital Requirement Ratio(2) (Including Buffer(1)) | |||||||||||||||||
| Risk-based capital: | |||||||||||||||||||||||
| Total capital | ($ | $ | $ | ( | % | % | % | ||||||||||||||||
| CET1 capital | ( | ( | |||||||||||||||||||||
| Tier 1 capital | ( | ( | |||||||||||||||||||||
| Adjusted total capital | ( | ( | |||||||||||||||||||||
| Leverage capital: | |||||||||||||||||||||||
| Core capital | ( | ( | |||||||||||||||||||||
| Tier 1 capital | ( | ( | |||||||||||||||||||||
(1)PCCBA for risk-based capital and PLBA for leverage capital.
(2)As a percentage of RWA for risk-based capital and ATA for leverage capital.
END OF CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND ACCOMPANYING NOTES
| Freddie Mac 3Q 2025 Form 10-Q | 91 | |||||||
| Other Information | ||
Other Information
LEGAL PROCEEDINGS
We are involved, directly or indirectly, in a variety of legal proceedings arising from time to time in the ordinary course of business and in connection with the conservatorship and Purchase Agreement. See Note 14 for additional information regarding our involvement as a party to various legal proceedings, including those in connection with the conservatorship and Purchase Agreement.
Over the last several years, numerous lawsuits have been filed against the U.S. government and, in some cases, the Secretary of the Treasury and the Director of FHFA, challenging certain government actions related to the conservatorship (including actions taken in connection with the imposition of conservatorship) and the Purchase Agreement. Freddie Mac is not a party to all of these lawsuits. Several of the lawsuits seek to invalidate the net worth sweep dividend provisions of the senior preferred stock, which were implemented pursuant to the August 2012 amendment to the Purchase Agreement. Some of these cases also have challenged the constitutionality of the structure of FHFA. A number of cases have been dismissed (some of which have been appealed), and others remain pending.
These cases include one that was filed in the U.S. Court of Federal Claims as a derivative lawsuit, purportedly on behalf of Freddie Mac as a “nominal” defendant: Reid and Fisher v. United States of America and Federal Home Loan Mortgage Corporation. This case was filed on February 26, 2014. The complaint alleges, among other items, that the net worth sweep dividend provisions of the senior preferred stock constitute an unlawful taking of private property for public use without just compensation. The plaintiffs ask that Freddie Mac be awarded just compensation for the U.S. government's alleged taking of its property, attorneys' fees, costs, and other expenses. The Court of Federal Claims dismissed the case with prejudice on September 1, 2023 and entered judgment for the defendants. On October 31, 2023, the plaintiffs filed a notice of appeal to the U.S. Court of Appeals for the Federal Circuit. On August 12, 2025, the Federal Circuit affirmed the dismissal of the plaintiffs' case.
RISK FACTORS
This Form 10-Q should be read together with the Risk Factors section in our 2024 Annual Report, which describes various risks and uncertainties to which we are or may become subject. These risks and uncertainties could, directly or indirectly, adversely affect our business, financial condition, results of operations, cash flows, strategies, and/or prospects.
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Recent Sales of Unregistered Securities
The securities we issue are "exempted securities" under the Securities Act of 1933, as amended. As a result, we do not file registration statements with the SEC with respect to offerings of our securities.
Following our entry into conservatorship, we suspended the operation of, and ceased making grants under, equity compensation plans. Previously, we had provided equity compensation under those plans to employees and members of the Board of Directors. Under the Purchase Agreement, we cannot issue any new options, rights to purchase, participations, or other equity interests without Treasury's prior approval.
Information About Certain Securities Issuances by Freddie Mac
We make available, free of charge through our website at www.freddiemac.com/investors, our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all other SEC reports and amendments to those reports as soon as reasonably practicable after we electronically file the material with the SEC. The SEC also maintains a website (www.sec.gov) that contains reports, proxy and information statements, and other information regarding companies that file electronically with the SEC.
We provide information on the ERCF on our website at www.freddiemac.com/investors.
We provide disclosure about our debt securities on our website at www.freddiemac.com/debt. From this address, investors can access the offering circular and issuance information for debt securities offerings under Freddie Mac's global debt facility,
| Freddie Mac 3Q 2025 Form 10-Q | 92 | |||||||
| Other Information | ||
including any required pricing supplements for individual issuances of debt securities. Similar information about our STACR transactions and MSCR transactions is available at crt.freddiemac.com and mf.freddiemac.com/investors, respectively.
We provide disclosure about our mortgage-related securities, some of which are off-balance sheet obligations (e.g., K Certificates), on our website at www.freddiemac.com/mbs and mf.freddiemac.com/investors. From these addresses, investors can access information and documents, including offering circulars and offering circular supplements, for mortgage-related securities offerings.
We provide additional information, including product descriptions, investor presentations, securities issuance calendars, transaction volumes and details, redemption notices, Freddie Mac research, and material developments or other events that may be important to investors, in each case as applicable, on the websites for our business divisions, which can be found at sf.freddiemac.com, mf.freddiemac.com, and capitalmarkets.freddiemac.com/capital-markets.
OTHER INFORMATION
Insider Trading Arrangements and Policies
EXHIBITS
The exhibits are listed in the Exhibit Index of this Form 10-Q.
| Freddie Mac 3Q 2025 Form 10-Q | 93 | |||||||
| Controls and Procedures | ||
Controls and Procedures
EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES
Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that the information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified by the SEC's rules and forms and that such information is accumulated and communicated to management of the company, including the company's Interim CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure. In designing our disclosure controls and procedures, we recognize that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and we must apply judgment in implementing possible controls and procedures.
Management, including the company's Interim CEO and CFO, conducted an evaluation of the effectiveness of our disclosure controls and procedures as of September 30, 2025. As a result of management's evaluation, our Interim CEO and CFO concluded that our disclosure controls and procedures were not effective as of September 30, 2025, at a reasonable level of assurance, because we have not been able to update our disclosure controls and procedures to provide reasonable assurance that information known by FHFA on an ongoing basis is communicated from FHFA to Freddie Mac's management in a manner that allows for timely decisions regarding our required disclosure under the federal securities laws. We consider this situation to be a material weakness in our internal control over financial reporting. Given the inherent nature of this ongoing weakness, we believe it is unlikely that we will be able to remediate this material weakness while under conservatorship.
CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING DURING 3Q 2025
We evaluated the changes in our internal control over financial reporting that occurred during 3Q 2025 and concluded that there were no changes that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
MITIGATING ACTIONS RELATED TO THE MATERIAL WEAKNESS IN INTERNAL CONTROL OVER FINANCIAL REPORTING
As described above under Evaluation of Disclosure Controls and Procedures, we have one material weakness in internal control over financial reporting as of September 30, 2025 that we have not remediated.
Given the structural nature of this material weakness, we believe it is likely that we will not remediate it while we are under conservatorship. However, both we and FHFA have continued to engage in activities and employ procedures and practices intended to permit accumulation and communication to management of information needed to meet our disclosure obligations under the federal securities laws. These include the following:
n FHFA has established a process to facilitate operation of the company under the oversight of the Conservator.
n We provide drafts of our SEC filings to FHFA personnel for their review and comment prior to filing. We also provide drafts of certain external press releases and statements to FHFA personnel for their review and comment prior to release.
n FHFA personnel, including senior officials, review our SEC filings prior to filing, including this Form 10-Q, and engage in discussions with us regarding issues associated with the information contained in those filings. Prior to filing this Form 10-Q, FHFA provided us with a written acknowledgment that it had reviewed the Form 10-Q, was not aware of any material misstatements or omissions in the Form 10-Q, and had no objection to our filing the Form 10-Q.
n Our senior management meets regularly with senior leadership at FHFA, including, but not limited to, the Director.
n FHFA representatives attend meetings frequently with various groups within the company to enhance the flow of information and to provide oversight on a variety of matters, including accounting, credit and capital markets management, external communications, and legal matters.
n Senior officials within FHFA's accounting group meet frequently with our senior financial executives regarding our accounting policies, practices, and procedures.
| Freddie Mac 3Q 2025 Form 10-Q | 94 | |||||||
| Controls and Procedures | ||
Although we and FHFA have attempted to design and implement disclosure policies and procedures to account for the conservatorship and accomplish the same objectives as disclosure controls and procedures for a typical reporting company, there are inherent structural limitations on our ability to design, implement, test, or operate effective disclosure controls and procedures under the circumstances of conservatorship. Despite our material weakness, we believe that our condensed consolidated financial statements for 3Q 2025 have been prepared in conformity with GAAP.
| Freddie Mac 3Q 2025 Form 10-Q | 95 | |||||||
| Exhibit Index | ||
Exhibit Index
| Exhibit | Description* | ||||
| 31.1 | Certification of President and Interim Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a) | ||||
| 31.2 | Certification of Chief Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a) | ||||
| 32.1 | Certification of President and Interim Chief Executive Officer pursuant to 18 U.S.C. Section 1350 | ||||
| 32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350 | ||||
| 101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | ||||
| 101.SCH | XBRL Taxonomy Extension Schema | ||||
| 101. CAL | XBRL Taxonomy Extension Calculation | ||||
| 101.DEF | XBRL Taxonomy Extension Definition | ||||
| 101.LAB | XBRL Taxonomy Label | ||||
| 101. PRE | XBRL Taxonomy Extension Presentation | ||||
| 104 | Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | ||||
| * | The SEC file number for the Registrant's Registration Statement on Form 10, Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K is 001-34139. | ||||
| Freddie Mac 3Q 2025 Form 10-Q | 96 | |||||||
| Signatures | ||
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Federal Home Loan Mortgage Corporation | ||||||||
| By: | /s/ Michael T. Hutchins | |||||||
| Michael T. Hutchins | ||||||||
| President and Interim Chief Executive Officer | ||||||||
| (Principal Executive Officer) | ||||||||
Date: October 30, 2025
| By: | /s/ James Whitlinger | |||||||
| James Whitlinger | ||||||||
| Executive Vice President and Chief Financial Officer | ||||||||
| (Principal Financial Officer) | ||||||||
Date: October 30, 2025
| Freddie Mac 3Q 2025 Form 10-Q | 97 | |||||||
| Form 10-Q Index | ||
Form 10-Q Index
| Item Number | Page(s) | |||||||
| PART I | FINANCIAL INFORMATION | |||||||
| Item 1. | Financial Statements | 44 - 91 | ||||||
| Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | 1 - 43 | ||||||
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 29 - 32 | ||||||
| Item 4. | Controls and Procedures | 94 - 95 | ||||||
| PART II | OTHER INFORMATION | |||||||
| Item 1. | Legal Proceedings | 92 | ||||||
| Item 1A. | Risk Factors | 92 | ||||||
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 92 - 93 | ||||||
| Item 5. | Other Information | 93 | ||||||
| Item 6. | Exhibits | 93 | ||||||
| Exhibit Index | 96 | |||||||
| Signatures | 97 | |||||||
| Freddie Mac 3Q 2025 Form 10-Q | 98 | |||||||
Federal Home
OTC:FMCC
FMCC Rankings
FMCC Latest News
Oct 30, 2025
Mortgage Rates Continue to Trend Down
FMCC Latest SEC Filings
Sep 23, 2025
[ABS-15G] FEDERAL HOME LOAN MORTGAGE CORP SEC Filing