Q2 2024 Earnings Summary
Reported on Jul 31, 2024 (Before Market Open)
Pre-Earnings Price$1.23Last close (Jul 30, 2024)
Post-Earnings Price$1.23Open (Jul 31, 2024)
Price Change
$0.00(0.00%)
- Freddie Mac's net worth increased to $53.2 billion, representing a 27% increase year-over-year.
- The Single-Family mortgage portfolio grew to $3.1 trillion, up 2% year-over-year, with strong credit characteristics such as a weighted average current loan-to-value ratio of 52% and a weighted average current credit score of 755.
- The company has improved its house price forecast, now expecting an increase of 0.6% over the next 12 months and 0.5% over the subsequent 12 months, up from previous forecasts.
- Decrease in net income: Freddie Mac's net income decreased by $179 million or 6% year-over-year in the second quarter of 2024, primarily due to a credit reserve build compared to a credit reserve release in the prior year quarter.
- Decline in Multifamily segment performance: The Multifamily segment reported net income of $481 million, down $82 million or 15% from the prior year quarter, driven by lower noninterest income, which declined 20% year-over-year. Additionally, the Multifamily delinquency rate increased to 38 basis points, up 17 basis points from 21 basis points at the end of June 2023.
- Increase in credit loss provisions: The provision for credit losses was an expense of $394 million for the quarter, a significant change from the credit reserve release in the prior year, indicating potential credit quality concerns. Specifically, the Single-Family provision for credit losses was an expense of $315 million, primarily due to a modest credit reserve build and the impact of higher mortgage rates.
Research analysts covering FEDERAL HOME LOAN MORTGAGE.