Freddie Mac 2Q Earnings Down 33% From Last Year
Summary
The Federal Home Loan Mortgage Corp., or Freddie Mac, today reported that its net income declined 33% in the second quarter from a year earlier, driven primarily by a provision for credit losses compared to a benefit for credit losses in the prior quarter. Net interest income was $4.8 billion, down less than 1% year over year, as continued mortgage portfolio growth and higher average portfolio guarantee fee rates were offset by lower deferred fee income, which was driven by slower prepayments as a result of higher mortgage interest rates, Freddie Mac said. Its Multifamily mortgage portfolio was $415 billion, up 4% year-over-year, driven by ongoing loan purchase and securitization activity, it said. Freddie Mac CEO Michael J. DeVito called the enterprise’s second-quarter results “solid,” and said it has built enough equity to withstand “potential economic stress.” “We helped 617,000 families buy, refinance, or rent a home, and introduced innovations which allow lenders to simplify the loan underwriting process and improve risk management,” he said. “As rising mortgage rates, house-price appreciation, and other economic factors challenge affordability, we are committed to working across the industry to promote equity and sustainable housing nationwide.” • The serious delinquency rate was 0.76%, down from 0.92% as of March 31, 2022, and 1.86% as of June 30, 2021, driven by the decline of loans in forbearance.