Freddie Mac announces mixed financial results in the second quarter

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The mortgage giant’s net worth rose from $31.7 billion in the first quarter to $34.1 billion in the second quarter. Its total mortgage portfolio stood at $3.3 trillion. Continued mortgage portfolio growth and higher underwriting fees helped keep net interest income flat at $4.8 billion. However, non-interest income fell by $1.1 billion, leading to an 8% year-over-year drop in net income ($5.4 billion).

The GSE reported net income of $2.2 billion in its single-family business and $0.3 billion in its multifamily business. New business activity at single-family Freddie Mac slowed 52% year-over-year to $138 billion as refinancings declined significantly due to higher rates. Meanwhile, new multifamily business activity increased 15% year-over-year to $15 billion.

“In the second quarter, Freddie Mac achieved solid financial results and continued to build capital to withstand potential economic stress,” said Freddie Mac CEO Michael DeVito. “We helped 617,000 families buy, refinance or rent a home and introduced innovations that allow lenders to simplify the loan underwriting process and improve risk management. As mortgage rates rise, the appreciation of housing prices and other economic factors challenge affordability, we are committed to working across the sector to promote equity and sustainable housing across the country.”

Fannie Mae also recently released its second quarter financial results. It disclosed net income of $4.7 billion, a gain of $245 million over the first quarter. The company’s net worth reached $56.4 billion.



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About the Author: Chaz Cutler

My name is Chasity. I love to follow the stock market and financial news!