EX-99.1 2 a20243qerexhibit991.htm EX-99.1 Document
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Exhibit 99.1
Freddie Mac Reports Net Income of $3.1 Billion for Third Quarter 2024
Making Home Possible for 415,000 Households in Third Quarter 2024
•Financed 284,000 mortgages, with 51% of eligible loans affordable to low- to moderate-income families.
•First-time homebuyers represented 51% of new single-family home purchase loans.
•Financed 131,000 rental units, with 94% of eligible units affordable to low- to moderate-income families.
Third Quarter 2024 Financial Results
Market Liquidity Provided -
$113 Billion
Homes and Rental Units Financed -
415,000

Net Worth -
$56 Billion

Total Mortgage
 Portfolio -
$3.5 Trillion

Consolidated
•Net income of $3.1 billion, an increase of $0.4 billion year-over-year, primarily driven by a decline in non-interest expense, as the prior year period included a $0.3 billion additional expense accrual.
•Net revenues of $5.8 billion, an increase of 3% year-over-year, primarily driven by higher net interest income.
•Benefit for credit losses of $0.2 billion, primarily driven by credit reserve releases in both Single-Family and Multifamily.
•New business activity of $98 billion, up from $85 billion in the third quarter of 2023, as both home purchase and refinance volume increased due to lower mortgage interest rates.
•Mortgage portfolio of $3.1 trillion, up 2% year-over-year.
•Serious delinquency rate of 0.54%, up from 0.50% at June 30, 2024 and down from 0.55% at September 30, 2023.
•Completed approximately 18,000 loan workouts.
•62% of mortgage portfolio covered by credit enhancements.
•New business activity of $15 billion, up from $13 billion in the third quarter of 2023, primarily driven by lower mortgage interest rates.
•Mortgage portfolio of $452 billion, up 5% year-over-year.
•Delinquency rate of 0.39%, up from 0.38% at June 30, 2024 and 0.24% at September 30, 2023.
•93% of mortgage portfolio covered by credit enhancements.
"Freddie Mac delivered another strong quarter, earning net income of $3.1 billion and increasing the company’s net worth to $56 billion. The company helped 415,000 families buy, refinance or rent a home, including 110,000 first-time homebuyers. We expanded support for renters, including by establishing a new grace period for rent payments. We also are providing relief to homeowners and resources for renters affected by recent hurricanes.

"As Freddie Mac's new chief executive officer, I am privileged to lead a great team delivering results like these, which make home possible for millions of families across the nation."

Diana W. Reid
Chief Executive Officer
Net Revenues
$5.8 Billion
Net Income
$3.1 Billion
Comprehensive
Income
$3.2 Billion
Single-Family
Net Revenues
$5.1 Billion
Net Income
$2.6 Billion
Comprehensive
Income
$2.6 Billion
Multifamily
Net Revenues
$0.8 Billion
Net Income
$0.5 Billion
Comprehensive
Income
$0.6 Billion

Freddie Mac Third Quarter 2024 Financial Results
October 30, 2024
Page 2


McLean, VA — Freddie Mac (OTCQB: FMCC) today reported net income of $3.1 billion for the third quarter of 2024, an increase of $420 million year-over-year, primarily driven by a decline in non-interest expense, as the prior year period included a $313 million additional expense accrual.
Net revenues were $5.8 billion for the third quarter of 2024, up 3% year-over-year, primarily driven by higher net interest income. Net interest income for the third quarter of 2024 was $5.0 billion, up 5% year-over-year, primarily driven by lower expense related to debt in hedge accounting relationships. Non-interest income for the third quarter of 2024 was $0.8 billion, compared to $0.9 billion for the third quarter of 2023.
Benefit for credit losses was $0.2 billion for the third quarter of 2024, 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. The benefit for credit losses for 3Q 2023 was primarily driven by a credit reserve release in Single-Family due to improvements in house prices.
Non-interest expense was $2.2 billion for the third quarter of 2024, down $393 million, as the prior year period included a $313 million expense accrual for an adverse judgment at trial.
Summary of Consolidated Statements of Income and Comprehensive Income
(Dollars in millions)
3Q 20242Q 2024Change3Q 2023Change
Net interest income$4,999$4,928$71$4,749$250
Non-interest income8391,060(221)941(102)
Net revenues5,8385,988(150)5,690 148
(Provision) benefit for credit losses191(394)585263 (72)
Non-interest expense(2,183)(2,134)(49)(2,576)393
Income before income tax expense3,8463,4603863,377 469
Income tax expense(741)(695)(46)(692)(49)
Net income3,1052,7653402,685420
Other comprehensive income (loss), net of taxes and reclassification adjustments62(5)6719 43
Comprehensive income$3,167$2,760$407$2,704$463
Conservatorship metrics (in millions)
Net worth$56,390$53,223$3,167$44,661$11,729
Senior preferred stock liquidation preference125,871123,1112,760114,60511,266
Remaining Treasury funding commitment140,162140,162—140,162—
Cumulative dividend payments to Treasury119,680119,680—119,680—
Cumulative draws from Treasury71,64871,648—71,648—



Freddie Mac Third Quarter 2024 Financial Results
October 30, 2024
Page 3


Single-Family Segment
Financial Results
Net Revenues
(In billions)
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Net Income
(In billions)
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Comprehensive Income
(In billions)
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(Dollars in millions)3Q 20242Q 2024Change3Q 2023Change
Net interest income$4,692$4,635$57$4,534$158
Non-interest income364459(95)393(29)
Net revenues5,0565,094(38)4,927129
(Provision) benefit for credit losses99(315)414304(205)
Non-interest expense(1,966)(1,921)(45)(2,310)344
Income before income tax expense3,1892,8583312,921268
Income tax expense(616)(574)(42)(598)(18)
Net income2,5732,2842892,323250
Other comprehensive income (loss), net of taxes and reclassification adjustments10(5)15(6)16 
Comprehensive income$2,583$2,279$304$2,317$266
Third Quarter 2024
Net income of $2.6 billion, up 11% year-over-year.
•Net revenues were $5.1 billion, up 3% year-over year. Net interest income was $4.7 billion, up 3% year-over-year, primarily driven by lower expense related to debt in hedge accounting relationships.
•Benefit for credit losses was $0.1 billion for the third quarter of 2024, primarily driven by a credit reserve release as a result of lower mortgage interest rates. The benefit for credit losses for 3Q 2023 was primarily driven by a credit reserve release due to improvements in house prices.
•Non-interest expense was $2.0 billion, down $344 million year-over-year, as the prior year period included an allocation of $250 million for the $313 million accrual for the adverse judgment at trial.

Freddie Mac Third Quarter 2024 Financial Results
October 30, 2024
Page 4


Single-Family Segment
Business Results
New Business Activity
(UPB in billions)
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Mortgage Portfolio
(UPB in billions)
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Serious Delinquency Rate
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3Q 20242Q 2024Change3Q 2023Change
New Business Statistics:
Single-Family homes funded (in thousands)284 257 2727113
Purchase borrowers (in thousands)235 212 232332
Refinance borrowers (in thousands)49 45 43811
Affordable to low- to moderate-income families (%)(1)
51 53 (2)56 (5)
First-time homebuyers (%)(2)
51 53 (2)50 1 
Average estimated guarantee fee rate (bps)57 54 3552
Weighted average original loan-to-value (LTV) (%)77 78 (1)78 (1)
Weighted average original credit score755 754 17532
UPB covered by new CRT issuance (in billions) $44$43$1$8$36
Portfolio Statistics:
Average estimated guarantee fee rate (bps) 4949—481
Weighted average current LTV (%)52 52 — 53 (1)
Weighted average current credit score755755—756(1)
Loan count (in millions)13.813.8—13.70.1
Credit-Related Statistics:
Loan workout activity (in thousands)1818—18—
Allowance for credit losses to total loans outstanding (%)(3)
0.21 0.21 — 0.22 (0.01)
Credit enhancement coverage (%)62 62 — 62 — 
(1) Eligible loans acquired affordable to families earning at or below 120% of area median income (AMI).
(2) Calculated as a percentage of purchase borrowers with loans secured by primary residences.
(3) Calculated as the allowance for credit losses on mortgage loans held-for-investment divided by the amortized cost basis of mortgage loans held-for-investment for which the fair value option has not been elected.
Business Highlights
•New business activity of $98 billion, up from $85 billion in the third quarter of 2023, as both home purchase and refinance volume increased due to lower mortgage interest rates. Financed 284,000 mortgages and enabled 110,000 first-time homebuyers to purchase a home.
•Credit enhancement coverage of the Single-Family mortgage portfolio remained at 62%, unchanged from September 30, 2023.

Freddie Mac Third Quarter 2024 Financial Results
October 30, 2024
Page 5



Multifamily Segment
Financial Results

Net Revenues
(In billions)
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Net Income
(In billions)chart-872cd6cea62e4063b00a.jpg



Comprehensive Income
(In billions)
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(Dollars in millions)
3Q 20242Q 2024Change3Q 2023Change
Net interest income$307$293$14$215$92
Non-interest income475601(126)548(73)
Net revenues782894(112)763 19
(Provision) benefit for credit losses92(79)171(41)133
Non-interest expense(217)(213)(4)(266)49
Income before income tax expense65760255456 201
Income tax expense(125)(121)(4)(94)(31)
Net income53248151362 170
Other comprehensive income (loss), net of taxes and reclassification adjustments52—5225 27
Comprehensive income$584$481$103$387$197
Third Quarter 2024
Net income of $0.5 billion, up 47% year-over-year.
•Net revenues were $0.8 billion for the third quarter of 2024, up 2% year-over-year, driven by higher net interest income, partially offset by lower non-interest income.
•Benefit for credit losses was $92 million for the third quarter of 2024, primarily driven by a credit reserve release due to enhancements in the credit loss estimation process.
•Non-interest expense was $217 million, down $49 million year-over-year, as the prior year period included an allocation of $63 million for the $313 million accrual for the adverse judgment at trial.




Freddie Mac Third Quarter 2024 Financial Results
October 30, 2024
Page 6


Multifamily Segment
Business Results
New Business Activity
(UPB in billions)
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Mortgage Portfolio        
(UPB in billions)
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Delinquency Rate
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3Q 20242Q 2024Change3Q 2023Change
New Business Statistics:
Number of rental units financed (in thousands)(1)
131923911813
Affordable to low-income families (%)(2)
68 65 3 66 2 
Affordable to low- to moderate-income families (%)(3)
94 93 1 90 4 
Weighted average original LTV (%)63 61 2 603 
Weighted average original debt service coverage ratio(4)
1.281.28—1.260.02
UPB covered by new CRT issuance (in billions)$7$14($7)$17($10)
Portfolio Statistics:
Average guarantee fee rate charged (bps) 49481463
Credit-Related Statistics:
Allowance for credit losses to total loans outstanding (%)(5)
0.49 0.61 (0.12)0.54 (0.05)
Credit enhancement coverage (%)93 95 (2)95 (2)
(1) Includes rental units financed by supplemental loans.
(2) Eligible units that are acquired affordable to families earning at or below 80% of AMI.
(3) Eligible units that are acquired affordable to families earning at or below 120% of AMI.
(4) Assumes monthly payments that reflect amortization of principal.
(5) Calculated as the allowance for credit losses on mortgage loans held-for-investment divided by the amortized cost basis of mortgage loans held-for-investment for which the fair value option has not been elected.
Business Highlights
•New business activity increased by 15% year-over-year, primarily driven by lower mortgage interest rates.
•The company provided financing for 131,000 multifamily rental units. 68% of the eligible multifamily rental units financed were affordable to low-income families.
•The Multifamily delinquency rate increased to 0.39% at September 30, 2024, from 0.24% at September 30, 2023, primarily driven by an increase in delinquent floating rate loans including small balance loans that are in their floating rate period. As of September 30, 2024, 96% of the delinquent loans in the Multifamily mortgage portfolio had credit enhancement coverage.


Freddie Mac Third Quarter 2024 Financial Results
October 30, 2024
Page 7


About Freddie Mac’s Conservatorship
Since September 2008, Freddie Mac has been operating under conservatorship with FHFA as Conservator. The support provided by Treasury pursuant to the Purchase Agreement enables the company to maintain access to the debt markets and have adequate liquidity to conduct its normal business operations. The amount of funding available to Freddie Mac under the Purchase Agreement was $140.2 billion at September 30, 2024.
Pursuant to the Purchase Agreement, Freddie Mac will not be required to pay a dividend to Treasury on the senior preferred stock until it has built sufficient capital to meet the capital requirements and buffers set forth in the Enterprise Regulatory Capital Framework. As a result, the company was not required to pay a dividend to Treasury on the senior preferred stock in September 2024. As the company builds capital during this period, the quarterly increases in its Net Worth Amount have been, or will be, added to the aggregate liquidation preference of the senior preferred stock. The liquidation preference of the senior preferred stock increased to $125.9 billion on September 30, 2024 based on the increase in the Net Worth Amount during the second quarter of 2024, and will increase to $129.0 billion on December 31, 2024 based on the increase in the Net Worth Amount during the third quarter of 2024.
Additional Information
For more information, including information related to Freddie Mac’s financial results, conservatorship, and related matters, see the company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 and the company’s Third Quarter 2024 Financial Results Supplement. These documents are available on the Investor Relations page of the company’s website at www.FreddieMac.com.
Additional information about Freddie Mac and its business is also set forth in the company’s other filings with the SEC, which are available on the Investor Relations page of the company’s website at www.FreddieMac.com and the SEC’s website at www.sec.gov. Freddie Mac encourages all investors and interested members of the public to review these materials for a more complete understanding of the company’s financial results and related disclosures.
Webcast Announcement
Management will host a conference call at 9 a.m. Eastern Time on October 30, 2024 to share the company’s results with the media. The conference call will be concurrently webcast. To access the audio webcast, use the following link: https://edge.media-server.com/mmc/p/3z2upcv9/. The replay will be available on the company’s website at www.FreddieMac.com for approximately 30 days. All materials related to the call will be available on the Investor Relations page of the company’s website at www.FreddieMac.com.
Media Contact: Frederick Solomon (703) 903-3861Investor Contact: Mahesh Lal (571) 382-4732  
*    *    *    *
This press release contains forward-looking statements, which may include statements pertaining to the conservatorship, the company’s current expectations and objectives for its Single-Family and Multifamily segments, its efforts to assist the housing market, liquidity and capital management, economic and market conditions and trends including, but not limited to, changes in observed and forecasted house price appreciation, its market share, the effect of legislative and regulatory developments and new accounting guidance, the credit quality of loans the company owns or guarantees, the costs and benefits of the company’s CRT transactions, the impact of banking crises or failures, the effects of natural disasters, other catastrophic events, and significant climate change effects and actions taken in response thereto on its business, results of operations, and financial condition. Forward-looking statements involve known and unknown risks and uncertainties, some of which are beyond the company’s control. Management’s expectations for the company’s future necessarily involve a number of assumptions, judgments, and estimates, and various factors, including changes in economic and market conditions, liquidity, mortgage spreads, credit outlook, actions by the U.S. government (including FHFA, Treasury, and Congress) and state and local governments, changes in the fiscal and monetary policies of the Federal Reserve, the impact of any downgrade in our credit ratings or those of the U.S. government, and the impacts of legislation or regulations and new or amended accounting guidance, that could cause actual results to differ materially from these expectations. These assumptions, judgments, estimates, and factors are discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2023, Quarterly Reports on Form 10-Q

Freddie Mac Third Quarter 2024 Financial Results
October 30, 2024
Page 8


for the quarters ended March 31, 2024, June 30, 2024, and September 30, 2024, and Current Reports on Form 8-K, which are available on the Investor Relations page of the company’s website at www.FreddieMac.com and the SEC’s website at www.sec.gov. The company undertakes no obligation to update forward-looking statements it makes to reflect events or circumstances occurring after the date of this press release.
Freddie Mac's mission is to make home possible for families across the nation. Freddie Mac promotes liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, Freddie Mac has helped tens of millions of families buy, rent or keep their home.


Freddie Mac Third Quarter 2024 Financial Results
October 30, 2024
Page 9


FREDDIE MAC
Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited)
(In millions, except share-related amounts)
3Q 20242Q 20243Q 2023
Net interest income
Interest income$29,809$29,064$26,799
Interest expense(24,810)(24,136)(22,050)
Net interest income4,999 4,928 4,749 
Non-interest income
Guarantee income487 383 301 
Investment gains, net243 549 555 
Other income109 128 85 
Non-interest income839 1,060 941 
Net revenues5,838 5,988 5,690 
(Provision) benefit for credit losses191 (394)263 
Non-interest expense
Salaries and employee benefits(424)(420)(418)
Credit enhancement expense(616)(588)(634)
Benefit for (decrease in) credit enhancement recoveries(4)(7)(103)
Legislative assessments expense(780)(768)(757)
Other expense(359)(351)(664)
Non-interest expense(2,183)(2,134)(2,576)
Income before income tax expense3,846 3,460 3,377 
Income tax expense(741)(695)(692)
Net income3,105 2,765 2,685 
Other comprehensive income (loss), net of taxes and reclassification adjustments62 (5)19 
Comprehensive income$3,167$2,760$2,704
Net income$3,105$2,765$2,685
Amounts attributable to senior preferred stock(3,167)(2,760)(2,704)
Net income (loss) attributable to common stockholders($62)$5($19)
Net income (loss) per common share($0.02)$0.00($0.01)
Weighted average common shares (in millions)3,234 3,234 3,234 


Freddie Mac Third Quarter 2024 Financial Results
October 30, 2024
Page 10


FREDDIE MAC
Condensed Consolidated Balance Sheets (Unaudited)
September 30,December 31,
(In millions, except share-related amounts)
20242023
Assets
Cash and cash equivalents (includes $1,219 and $978 of restricted cash and cash equivalents)
$4,857$6,019
Securities purchased under agreements to resell103,110 95,148 
Investment securities, at fair value43,613 43,275 
Mortgage loans held-for-sale (includes $8,353 and $7,356 at fair value)
11,678 12,941 
Mortgage loans held-for-investment (net of allowance for credit losses of $6,737 and $6,383 and includes $2,371 and $1,806 at fair value)
3,140,319 3,083,665 
Accrued interest receivable, net10,561 9,925 
Deferred tax assets, net4,730 4,076 
Other assets (includes $6,166 and $6,095 at fair value)
23,715 25,927 
Total assets$3,342,583$3,280,976
Liabilities and equity
Liabilities
Accrued interest payable$9,222$8,812
Debt (includes $3,122 and $2,476 at fair value)
3,265,267 3,208,346 
Other liabilities (includes $937 and $873 at fair value)
11,704 16,096 
Total liabilities3,286,193 3,233,254 
Commitments and contingencies
Equity
Senior preferred stock (liquidation preference of $125,871 and $117,309)
72,648 72,648 
Preferred stock, at redemption value14,109 14,109 
Common stock, $0.00 par value, 4,000,000,000 shares authorized, 725,863,886 shares issued and 650,059,553 shares outstanding
— — 
Retained earnings(26,492)(35,128)
AOCI, net of taxes, related to:
Available-for-sale securities 107 72 
Other(97)(94)
Total AOCI, net of taxes10 (22)
Treasury stock, at cost, 75,804,333 shares
(3,885)(3,885)
Total equity56,390 47,722 
Total liabilities and equity$3,342,583$3,280,976
The table below presents the carrying value and classification of the assets and liabilities related to consolidated variable interest entities (VIEs) on the company's condensed consolidated balance sheets.
September 30,December 31,
(In millions)20242023
Assets:
Cash and cash equivalents (includes $1,106 and $890 of restricted cash and cash equivalents)
$1,107$891 
Securities purchased under agreements to resell13,4299,396 
Investment securities, at fair value265
Mortgage loans held-for-investment, net3,084,4583,039,461
Accrued interest receivable, net9,6048,885 
Other assets6,575 4,858 
Total assets of consolidated VIEs$3,115,175$3,063,556
Liabilities:
Accrued interest payable$8,218$7,527
Debt3,092,1403,041,927
Total liabilities of consolidated VIEs$3,100,358$3,049,454