Federal Home Loan Mortgage Corp
OTC:FMCC
Federal Home Loan Mortgage Corp
Born out of a desire to stabilize the housing market and improve access to homeownership, the Federal Home Loan Mortgage Corporation, affectionately known as Freddie Mac, was established in 1970. This influential organization plays a pivotal role in the secondary mortgage market, buying mortgages from banks and other loan originators. By doing so, Freddie Mac provides these lenders with the liquidity they need to fund additional home loans. It acts as an intermediary, packaging the purchased mortgages into securities and selling them to investors. Through this process, it manages to embed a sense of reliability and continuity within the US housing finance system, ensuring that lenders always have the capacity to support potential homeowners.
Freddie Mac's business model is deftly crafted around earning revenue through guarantee fees. These fees are collected by providing assurances to investors against the potential risk of default on the underlying mortgages in the mortgage-backed securities. Essentially, they charge a premium for the perceived stability and low-risk nature of their asset-backed investments. In doing so, Freddie Mac does not take on the monstrous risk associated with holding millions of home loans on its balance sheet; rather, it spreads the risk across a broad investor base. This makes Freddie Mac a cornerstone of the modern American mortgage market, quietly underpinning the household dreams of many by facilitating an ongoing infusion of capital into the housing sector.
Born out of a desire to stabilize the housing market and improve access to homeownership, the Federal Home Loan Mortgage Corporation, affectionately known as Freddie Mac, was established in 1970. This influential organization plays a pivotal role in the secondary mortgage market, buying mortgages from banks and other loan originators. By doing so, Freddie Mac provides these lenders with the liquidity they need to fund additional home loans. It acts as an intermediary, packaging the purchased mortgages into securities and selling them to investors. Through this process, it manages to embed a sense of reliability and continuity within the US housing finance system, ensuring that lenders always have the capacity to support potential homeowners.
Freddie Mac's business model is deftly crafted around earning revenue through guarantee fees. These fees are collected by providing assurances to investors against the potential risk of default on the underlying mortgages in the mortgage-backed securities. Essentially, they charge a premium for the perceived stability and low-risk nature of their asset-backed investments. In doing so, Freddie Mac does not take on the monstrous risk associated with holding millions of home loans on its balance sheet; rather, it spreads the risk across a broad investor base. This makes Freddie Mac a cornerstone of the modern American mortgage market, quietly underpinning the household dreams of many by facilitating an ongoing infusion of capital into the housing sector.
Net Income: Freddie Mac reported full year 2025 net income of $10.7 billion, down from $11.9 billion in 2024.
Revenue: Net revenues for 2025 were $23.3 billion, slightly below $23.9 billion in 2024.
Portfolio Growth: The total mortgage portfolio grew 2% year-over-year to $3.7 trillion, driven by increases in both single-family and multifamily portfolios.
Liquidity Support: Freddie Mac provided $465 billion of liquidity in 2025, supporting over 1.7 million families, including about 400,000 first-time homebuyers.
Affordable Housing: 53% of single-family homes and 93% of multifamily units financed were affordable to low and moderate income families.
Credit Losses: Provision for credit losses rose to $1.3 billion, up $814 million year-over-year, mainly due to reserve builds for new acquisitions and worsening credit on some multifamily loans.
Multifamily Strategy: Freddie Mac shifted its multifamily business to focus on fully guaranteed securitizations, aiming for more stable earnings.
Market Share: Freddie Mac held a 54% share in the single-family GSE market and a 51% share in multifamily new business activity.
