Total Revenue

+1.65% (from $5.757B in Q1 2024 to $5.852B in Q1 2025)

Modest growth in revenue suggests business stability where improved mortgage lending activity and core operations contributed to revenue gains compared to the previous period’s levels. " "

Net Interest Income

+7% (from $4.759B in Q1 2024 to $5.102B in Q1 2025)

Improved net interest income reflects a combination of higher yields on interest-earning assets and increased mortgage portfolio balances, indicating that factors driving higher performance in prior periods continued and amplified in Q1 2025. " "

Interest Income

+10.6% (to $31.365B in Q1 2025)

Increased interest income is attributable to higher average balances and increased interest rates on core assets, building upon earlier trends of improved asset performance seen in Q1 2024. " "

Interest Expense

+11% (to $26.263B in Q1 2025)

Rising interest expense is due to higher funding costs and an increased overall debt balance. This follows the previous period’s upward pressure on borrowing costs and reflects the competitive funding environment that has persisted into Q1 2025. " "

Non‑Interest Income

–25% (from $998M in Q1 2024 to $750M in Q1 2025)

A significant drop in non‑interest income indicates challenges in fee‑based activities and net investment gains compared to the prior period, suggesting heightened volatility in these supplemental revenue sources. " "

Net Cash Provided by Operating Activities

from a negative $(900)M in Q4 2024 to +$3.572B in Q1 2025

A dramatic rebound in operating cash flows points to improved operational efficiency or favorable timing in cash collections and expense management, reversing the adverse results of Q4 2024. " "

Cash and Cash Equivalents

–13% (from $5.534B in Q4 2024 to $4.79B in Q1 2025)

Reduced cash reserves likely result from increased investments and asset reallocation strategies aimed at capitalizing on market opportunities, building upon adjustments seen in the previous period. " "

Investment Securities

+6% (to $59,054M in Q1 2025)

A rise in investment securities reflects continued purchases of U.S. Treasury securities and adjustments in asset management to optimize returns, continuing the investment strategy evolution from prior periods. " "

Net Cash Used in Financing Activities

Shift from +$15.155B in Q4 2024 to –$10.805B in Q1 2025

A major reversal in financing cash flows indicates significant changes in capital structure management, such as increased debt repayments and possibly reduced new borrowings, marking a strategic shift from the funding approach of Q4 2024. " "

House Price Forecast (next 12 months)

Q1 2025

no prior guidance

4.2% increase over the next 12 months "

no prior guidance

House Price Forecast (subsequent 12 months)

Q1 2025

no prior guidance

2.8% increase over the subsequent 12 months "

no prior guidance

Financial Performance and Earnings Growth

Q4 2024, Q3 2024 and Q2 2024 calls emphasized robust earnings growth and strong increases in net income, revenues and net interest income. " " " "

Q1 2025 reported modest net income growth (up 1% YOY) with mixed segment results—strong single‐family growth but multifamily net income down 35%. " "

Recurring topic with a shift to more modest overall earnings growth in Q1 2025 compared to the previous periods, indicating a tempered sentiment in overall financial performance.

Mortgage Portfolio Expansion and New Business Activity

Consistently featured across Q4, Q3 and Q2 2024 with steady portfolio growth (single-family around 2% and multifamily around 5–6%), and rising new business activity driven by purchase, refinance and securitizations. " " " " "

Q1 2025 continued the trend with similar portfolio growth (single-family 2% and multifamily 5%) while also highlighting increased refinance activity and higher new business volumes in both segments. " "

Consistent growth with continued expansion; Q1 2025 shows further gains through elevated refinance activity and securitizations, implying sustained momentum in the mortgage business.

Credit Risk Management (Delinquency Rates and Credit Loss Provisions)

Every period (Q4, Q3 and Q2 2024) featured detailed credit risk metrics including delinquency rates, credit loss benefits or expenses, and credit enhancement coverage across segments. " " " " " "

Q1 2025 continued the focus with updated delinquency rates (e.g. single‐family 59 bps; multifamily 46 bps) and mixed changes in credit loss provisions—an increased expense for single‐family driven by new acquisitions, while multifamily provisions were slightly reduced. " "

Recurring topic with mixed sentiment: concerns remain over rising delinquency and credit loss expenses on the single‐family side, though multifamily shows some stability, reflecting evolving risk profiles amid new acquisitions and external factors.

House Price Forecasts and Appreciation Trends

Previously, calls in Q4, Q3 and Q2 2024 projected modest or very low house price appreciation (forecasts ranged from roughly 0.5–3.3% growth over 12-month periods, with even flat forecasts in Q3 2024). " " "

Q1 2025 revised its forecast upward, expecting an increase of 4.2% over the next 12 months and 2.8% in the following year, a notable change from the prior forecasts. "

Emerging positive sentiment: a clear upward revision in the house price forecast in Q1 2025 contrasts with the subdued or flat trends of previous periods, which could have significant implications for market activity and lending volumes.

Segment Performance: Single-Family vs Multifamily

All previous periods discussed both segments. Q4 2024 and Q3 2024 noted strong multifamily performance (net income and revenue gains) alongside solid, though less dramatic, single‐family results; Q2 2024 underlined the larger scale and more stable performance of single‐family. " " " " " "

In Q1 2025, single‐family delivered strong growth in net income and revenues, while multifamily experienced a significant decline in net income (down 35%) despite increased securitizations and portfolio growth. " "

Divergence emerging: single‐family maintains robust performance with favorable new business, whereas multifamily performance has deteriorated, suggesting shifting market dynamics between the segments.

Operational Streamlining and Cost Reduction Initiatives

Not mentioned in Q4, Q3 or Q2 2024 calls. " " "

Q1 2025 introduced initiatives to streamline operations via reducing bureaucracy, fraud and waste reduction, and regulatory changes to lower costs and boost efficiency. " " "

New topic: The emphasis on operational streamlining and cost reduction in Q1 2025 marks a strategic pivot toward improving internal efficiencies, which could have a large impact on the company’s future cost structure and competitiveness.

Technology Investments for Future Growth

Not discussed in Q4, Q3 or Q2 2024. " " " "

Q1 2025 signaled plans to invest more in critical technology as part of a response to regulatory changes that ease loan acquisitions, aiming to increase net worth and lower mortgage origination costs. "

New focus area: The mention of technology investments in Q1 2025 introduces a strategic growth initiative that is aimed at enhancing operations and lowering costs, potentially driving future competitive advantage.

Social Impact and Affordable Housing Commitment

Consistently emphasized in Q4, Q3 and Q2 2024 with strong commitments to financing affordable housing, supporting first-time buyers, and maintaining high percentages of affordable loans and rental units. " " " " " "

Q1 2025 continued this commitment with detailed figures on families supported, first-time homebuyer percentages, multifamily rental units financed and loan workouts, reiterating a mission-driven approach. " " "

Steady and consistent: The social impact and affordable housing agenda remains a core aspect of Freddie Mac's mission, with sustained positive sentiment and strong execution across all periods, underscoring its potential long-term relevance.

Shifts in Sentiment and Volatility in Key Financial Metrics

Q4, Q3 and Q2 2024 contained discussions of various metrics (net income, net worth, credit losses, mortgage rates) that indirectly illustrated performance volatility and market conditions, though there was no explicit commentary on sentiment shifts. " " " " " " "

Q1 2025 provided updated financial metrics but did not explicitly discuss shifts in sentiment or volatility, despite changes in performance figures across segments. " "

Indirect continuity: While not explicitly addressed in Q1 2025, underlying volatility is evident in changing component metrics, suggesting that sentiment remains data-driven and cautious amid evolving market conditions.