Freddie Mac Reports $3.2 Billion Quarterly Profit as Mortgage Portfolio Expands

Freddie Mac reported $3.2 billion in net income for the third quarter, saying higher revenues and continued growth in its mortgage business more than offset a larger provision for credit losses. The government-controlled mortgage finance company said its total mortgage portfolio reached $3.7 trillion as of Sept. 30.

The result was up 17% from the same period a year earlier. Net revenues rose 19% to $6.8 billion, while net worth climbed to $81 billion. Freddie Mac said the quarter’s performance reflected stronger net interest income, improved non-interest income and lower non-interest expense than a year ago, even as credit costs moved higher.

Those numbers matter beyond Freddie Mac’s own income statement because the company remains one of the central pillars of the U.S. housing finance system. It buys, guarantees and securitizes home loans, which helps lenders recycle capital and keep mortgage funding available. In the third quarter, it said it provided $114 billion of liquidity to the mortgage market and helped finance 420,000 households across home purchase, refinance and rental activity.

Revenue growth outweighed a bigger credit-loss provision

In its third-quarter earnings release, Freddie Mac said net interest income increased to $5.9 billion from $5.5 billion a year earlier. The company attributed that gain mainly to a larger balance of fully guaranteed securitizations in its Multifamily mortgage portfolio, reflecting a change in Multifamily business strategy, and to continued growth in the Single-Family mortgage portfolio.

Non-interest income also improved sharply. Freddie Mac reported $0.9 billion of non-interest income in the quarter, compared with $0.3 billion in the third quarter of 2025. The swing was driven primarily by net investment gains in the latest quarter versus net investment losses a year earlier. Together, those items pushed total net revenues to $6.8 billion, up from $5.7 billion in the prior-year period.

The biggest drag on quarter-to-quarter momentum came from credit costs. Freddie Mac recorded an $800 million provision for credit losses in the third quarter. That was a larger expense than the $175 million provision in the year-earlier quarter, and it marked a reversal from the $880 million benefit for credit losses it posted in the second quarter of 2026. Even so, the rest of the income statement remained strong enough to keep the company solidly profitable.

Costs outside credit were more favorable. Non-interest expense was about $2.0 billion, down from roughly $2.1 billion a year earlier. That helped support income before taxes despite the heavier loss provision. The quarter’s $3.2 billion of net income came in below the $3.8 billion Freddie Mac earned in the second quarter, but it still represented another substantial profit contribution in a year when the company has continued adding capital while operating under federal conservatorship.

Mortgage portfolio growth remained a core driver

The expansion of Freddie Mac’s mortgage book was central to the quarter. A $3.7 trillion total mortgage portfolio is significant because it underpins the interest income that drives much of the company’s earnings. As that portfolio grows, Freddie Mac collects more income from guaranteed and financed mortgage assets, although profitability still depends on funding costs, credit performance and market valuations.

Management’s operating data also showed that the company remained heavily engaged in both single-family and multifamily housing finance. During the quarter, Freddie Mac financed 286,000 mortgages. It said 56% of eligible loans were affordable to low- to moderate-income families, and first-time homebuyers accounted for 51% of new single-family home purchase loans.

On the rental-housing side, Freddie Mac financed 134,000 units in the quarter. The company said 91% of eligible units were affordable to low- to moderate-income families. Those mission-oriented statistics do not directly determine quarterly profit, but they help explain how Freddie Mac frames its business performance: not just as earnings growth, but as an expansion of mortgage-market liquidity and housing affordability support.

The latest quarter also fits into a broader pattern that has been visible in Freddie Mac’s recent reports. By the end of the second quarter, the company had already reached a $3.7 trillion total portfolio and $78 billion in net worth. The third-quarter update showed that the portfolio remained at that scale while net worth continued to move higher. That suggests the company’s earnings engine is still benefiting from the size of its guaranteed mortgage base even in a housing market that remains sensitive to rate levels and affordability pressures.

Capital kept building as Freddie Mac filed its latest quarterly report

Freddie Mac’s capital position continued to strengthen during the quarter. Net worth rose to $81 billion, up from $78 billion at the end of the second quarter and from lower levels a year earlier. That gradual build matters because Freddie Mac, alongside Fannie Mae, has been retaining earnings for several years as part of the long-running conservatorship framework put in place after the financial crisis.

The company’s latest disclosure package also underscored that investors and analysts are expected to read the headline numbers alongside fuller regulatory materials. Freddie Mac said it had filed a Form 8-K with the Securities and Exchange Commission furnishing the earnings release, earnings presentation and financial supplement. Those materials provide the additional detail behind the topline figures, including the movement in revenues, expenses, credit losses and capital.

For housing-market observers, the third-quarter report showed a company that is still generating large profits from a very large mortgage book, but with results that can still swing as credit-loss expectations and investment marks change from quarter to quarter. For policymakers, the report offered another sign that Freddie Mac’s earnings retention continues to add to its capital base. For lenders and borrowers, the most practical takeaway was that Freddie Mac remained an active source of mortgage liquidity during the quarter, channeling $114 billion into the market while expanding support for both home financing and rental housing.

Freddie Mac held a webcast Thursday morning to discuss the results. The earnings release, financial supplement and SEC filing were made available through the company’s investor relations channels.