Key Highlights

  • Net revenues of USD 6.81 billion rose 19% year over year and topped the consensus estimate of USD 6.20 billion.
  • Net income climbed 17% to USD 3.2 billion; EPS was USD 0.01 versus a consensus estimate of USD 0.94.
  • Net worth reached USD 81.0 billion at quarter end, compared with USD 67.6 billion at September 30, 2025.
  • The Mortgage portfolio grew 2% to USD 3.7 trillion, and the company provided USD 114 billion of Liquidity to housing.

Freddie Mac (OTCQB:FMCC) reported third quarter 2026 net revenues of USD 6.81 billion, up 19% from USD 5.74 billion a year earlier and above a consensus estimate of USD 6.20 billion. Net Income was USD 3.24 billion, up 17% from USD 2.77 billion. Earnings per common share were USD 0.01, below a consensus estimate of USD 0.94, because USD 3.21 billion of net income was attributed to the senior preferred stock, leaving USD 29 million for common stockholders across 3,234 million weighted average shares.

Net Interest Income and Provision Drive the Mix

Net interest income rose 8% to USD 5.88 billion, led by guarantee net interest income of USD 4.54 billion, up 7%, and investments net interest income of USD 1.45 billion, up 6%. Non-interest income was USD 933 million compared with USD 284 million a year earlier. Against that, the provision for Credit losses was USD 800 million versus USD 175 million, mainly a Single-Family reserve build tied to higher projected mortgage interest rates and new acquisitions.

Non-interest expense fell 6% to USD 1.99 billion, helped by lower headcount and a 14% decline in credit enhancement expense to USD 422 million. Income tax expense was USD 781 million. By segment, Single-Family net income was USD 2.7 billion, up 16%, and Multifamily net income was USD 0.5 billion, up 22%, with Multifamily net interest income up 43% on growth in fully guaranteed securitizations after a change in Business strategy.

Capital, Senior Preferred and Credit Disclosures

Quarterly net worth gains are added to the senior preferred stock: its Liquidation preference was USD 150.4 billion at September 30, 2026 and increases to USD 153.6 billion on December 31, 2026, reflecting the third quarter rise in net worth. Total Equity was USD 80.98 billion, up from USD 70.38 billion at year end, and adjusted total Capital under the enterprise capital framework was USD 4.1 billion versus negative USD 7.4 billion at December 31, 2025.

On credit, the Single-Family serious delinquency rate rose to 0.61% from 0.57% a year earlier, mainly on loans originated from 2022 through 2024. The Multifamily delinquency rate increased to 0.58% from 0.44% at year end, which the company attributed to stress from elevated interest rates, and 92% of delinquent Multifamily loans carry credit enhancement coverage.

Data Points for the Fourth Quarter Report

Four items frame the next filing. The senior preferred liquidation preference is scheduled to reach USD 153.6 billion on December 31, 2026. The Single-Family serious delinquency rate of 0.61% and the Multifamily delinquency rate of 0.58% show the direction of credit performance. The USD 800 million provision, set against a USD 400 million benefit in the first nine months, shows how reserve assumptions are moving. Portfolio balances of USD 3.2 trillion in Single-Family and USD 510 billion in Multifamily, up 1% and 6%, track growth.