Freddie Mac (OTCMKTS:FMCC) announced that it posted a 14% yearly decline in net income in the fourth quarter on a 9% decline in net revenues, according to year-end earnings reported Thursday by the government-sponsored mortgage investor.
The GSE reported that fourth-quarter net income of $2.8 billion was flat from the third quarter and down from $3.2 billion a year ago. Meanwhile, net revenues of $5.8 billion were up slightly from $5.7 billion in the third quarter, but down from $6.3 billion a year ago.
On a full-year basis, Freddie Mac’s comprehensive net income was $10.8 billion, down about 8.8% from roughly $11.8 billion in 2024. Its net worth climbed to roughly $70.3 billion as of the end of the fourth quarter, up approximately 18% from the end of 2024.
Freddie Mac provides liquidity and stability to the U.S. housing market by purchasing home loans from primary lenders, such as banks and credit unions, bundling them into mortgage-backed securities (MBS), and selling these securities to investors.
Net Worth Grew to $70.4 billion
Freddie Mac reported full-year 2025 net income of $10.7 billion on net revenues of $23.3 billion, marking three straight years above $10 billion and growing its net worth to $70.4 billion since it began retaining earnings.
GSE counterpart Fannie Mae reported net income of $3.5 billion for the fourth quarter of 2025 and $14.4 billion for the full year. That’s down 15% from 2024, while net worth rose to a record $109.0 billion as of Dec. 31. Net revenues were relatively flat at $7.3 billion for the quarter and $29 billion for the year, driven in great part by guaranty fees on a $4.1 trillion book of business.
Federal Housing Finance Director Bill Pulte lauded the performance in a press release.
“Our investments in technology have streamlined the origination process, reduced unnecessary friction, and enabled our lenders to do business with us more cost-effectively,” Pulte said.
Pulte has also chaired Freddie Mac’s board of directors since putting himself in that role in March 2025.
Freddie Mac said it provided $465 billion of liquidity in 2025 to support more than 1.7 million families, with first-time buyers accounting for over 51% of single-family purchases and about 53% of single-family and 93% of multifamily units financed affordable to low- and moderate-income households.
Freddie Mac noted that it shifted multifamily financing toward predominantly fully guaranteed securitizations to reduce earnings volatility, credit provisions rose to $1.3 billion for the year, and Q4 net investment losses weighed on results, Freddie Mac. The credit provisions are an expense on a company’s financial statements, and are expected losses from delinquent and bad debt or other credit that is likely to default or become unrecoverable.
‘Lower Net Revenues’
The company also faces a regulatory capital shortfall of $106 billion, excluding buffers, because of non-qualifying senior preferred stock.
Freddie Mac Executive Vice President and CFO Jim Whitlinger said the drop in fourth-quarter net income was “primarily due to lower net revenues,” while noting a surge in year-end refinance activity that boosted overall mortgage volumes.
The roughly $118 billion of new single-family business in the fourth quarter “accounted for 35% of total volumes, the highest quarterly refinance share we have seen in the past three years,” Whitlinger said.
New mortgage acquisitions rose 12% on a yearly basis in 2025 as both refinance and purchase volumes strengthened, Whitlinger said.
By comparison, the roughly $96.8 billion of new fourth-quarter single-family acquisitions for Fannie Mae, the fellow government-sponsored enterprise (GSE) that also reported declining earnings this week, was about 38% refinances.
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