Market Liquidity Provided -
$318 Billion
|
Homes and Rental Units Financed -
1.2 Million
|
Net Worth -
$25.3 Billion
|
Total Mortgage
Portfolio -
$3.1 Trillion
|
Consolidated |
•Net income of $2.9 billion, an increase of 19% year-over-year, driven by higher net revenues and a credit reserve release
•Net revenues of $5.2 billion, an increase of 4% year-over-year, driven by mortgage portfolio growth and higher average portfolio guarantee fee rates
•Benefit for credit losses of $0.2 billion, driven by a credit reserve release due to realized house price appreciation and improving economic conditions
•New business activity of $299 billion, down 11% year-over-year, as refinance activity moderated from historically high levels in the prior year. Year-to-date activity of $949 billion, up 34% year-over-year
•Mortgage portfolio of $2,682 billion, up 23% year-over-year, driven by strong new business activity
•Serious delinquency rate of 1.46%, down from 1.86% at June 30, 2021 and 3.04% at September 30, 2020, driven by the decline of loans in forbearance
•Completed approximately 73,000 loan workouts
•50% of mortgage portfolio covered by credit enhancements
•New business activity of $18 billion, unchanged year-over-year. Year-to-date activity of $45 billion, down 6% year-over-year
•Mortgage portfolio of $404 billion, up 10% year-over-year, driven by ongoing loan purchase and securitization activity
•Delinquency rate, which does not include loans in forbearance, of 0.12%, down from 0.15% at June 30, 2021 and 0.13% at September 30, 2020
•94% of mortgage portfolio covered by credit enhancements
|
"We are pleased that Freddie Mac's third quarter results showed 19 percent year-over-year growth in net income and comprehensive income, which enabled us to add $2.9 billion to our net worth. These strong results allow the company to serve its mission of providing liquidity, stability and affordability to the housing market - and to do so expansively by making home possible for owners and renters across the country and in all economic environments."
Michael J. DeVito
Chief Executive Officer
|
Net Revenues
$5.2 Billion
Net Income
$2.9 Billion
Comprehensive
Income
$2.9 Billion
| ||
Single-Family
| ||
Net Revenues
$4.0 Billion
Net Income
$2.0 Billion
Comprehensive
Income
$2.0 Billion
| ||
Multifamily
| ||
Net Revenues
$1.3 Billion
Net Income
$0.9 Billion
Comprehensive
Income
$0.9 Billion
|
(Dollars in millions) | 3Q 2021 | 2Q 2021 | Change | 3Q 2020 | Change |
Net interest income | $4,418 | $4,767 | $(349) | $3,457 | $961 |
Guarantee income | 246 | 356 | (110) | 315 | (69) |
Investment gains (losses), net | 383 | 636 | (253) | 1,122 | (739) |
Other income (loss) | 200 | 107 | 93 | 172 | 28 |
Net revenues | 5,247 | 5,866 | (619) | 5,066 | 181 |
Benefit (provision) for credit losses | 243 | 740 | (497) | (327) | 570 |
Credit enhancement expense | (386) | (369) | (17) | (267) | (119) |
Benefit for (decrease in) credit enhancement recoveries | (60) | (193) | 133 | 20 | (80) |
Real estate owned (REO) operations income (expense) | 9 | (7) | 16 | (40) | 49 |
Credit-related income (expense) | (194) | 171 | (365) | (614) | 420 |
Administrative expense | (627) | (651) | 24 | (641) | 14 |
Temporary Payroll Tax Cut Continuation Act of 2011 expense | (602) | (570) | (32) | (467) | (135) |
Other expense | (178) | (179) | 1 | (237) | 59 |
Operating expense | (1,407) | (1,400) | (7) | (1,345) | (62) |
Income (loss) before income tax (expense) benefit | 3,646 | 4,637 | (991) | 3,107 | 539 |
Income tax (expense) benefit | (727) | (958) | 231 | (644) | (83) |
Net income (loss) | 2,919 | 3,679 | (760) | 2,463 | 456 |
Total other comprehensive income (loss), net of taxes and reclassification adjustments | (10) | (68) | 58 | (14) | 4 |
Comprehensive income (loss) | $2,909 | $3,611 | $(702) | $2,449 | $460 |
Conservatorship metrics (in billions) | |||||
Net worth | $25.3 | $22.4 | $2.9 | $13.9 | $11.4 |
Senior preferred stock liquidation preference | 95.0 | 91.4 | 3.6 | 84.1 | 10.9 |
Remaining Treasury funding commitment | 140.2 | 140.2 | - | 140.2 | - |
Cumulative dividend payments to Treasury | 119.7 | 119.7 | - | 119.7 | - |
Cumulative draws from Treasury | 71.6 | 71.6 | - | 71.6 | - |
Single-Family Segment |
Financial Results |
(Dollars in millions) | 3Q 2021 | 2Q 2021 | Change | 3Q 2020 | Change |
Net interest income | $4,080 | $4,460 | $(380) | $3,168 | $912 |
Non-interest income | (119) | 255 | (374) | 251 | (370) |
Net revenues | 3,961 | 4,715 | (754) | 3,419 | 542 |
Credit-related income (expense) | (177) | 128 | (305) | (594) | 417 |
Operating expense | (1,251) | (1,245) | (6) | (1,208) | (43) |
Income (loss) before income tax (expense) benefit | 2,533 | 3,598 | (1,065) | 1,617 | 916 |
Income tax (expense) benefit | (505) | (743) | 238 | (335) | (170) |
Net income (loss) | 2,028 | 2,855 | (827) | 1,282 | 746 |
Total other comprehensive income (loss), net of taxes and reclassification adjustments | 18 | (74) | 92 | (10) | 28 |
Comprehensive income (loss) | $2,046 | $2,781 | $(735) | $1,272 | $774 |
Single-Family Segment |
Business Results |
3Q 2021 | 2Q 2021 | Change | 3Q 2020 | Change | |
New Business Statistics: | |||||
Average guarantee fee rate charged (bps) | 48 | 49 | (1) | 46 | 2 |
Weighted average original loan-to-value (LTV) (%) | 72 | 71 | 1 | 71 | 1 |
Weighted average original credit score | 750 | 754 | (4) | 761 | (11) |
First-time homebuyers (%)(1)
| 46 | 47 | (1) | 46 | - |
Single-Family homes funded (in thousands) | 1,027 | 1,023 | 4 | 1,153 | (126) |
Purchase borrowers (in thousands) | 415 | 315 | 100 | 340 | 75 |
Refinance borrowers (in thousands) | 612 | 708 | (96) | 813 | (201) |
UPB covered by new CRT issuance (in billions) | $167 | $174 | $(7) | $168 | $(1) |
Portfolio Statistics: | |||||
Average guarantee fee rate charged (bps) | 46 | 46 | - | 43 | 3 |
Weighted average current LTV (%) | 55 | 56 | (1) | 59 | (4) |
Weighted average current credit score | 756 | 756 | - | 753 | 3 |
Loan count (in millions) | 12.8 | 12.5 | 0.3 | 11.6 | 1.2 |
Credit-Related Statistics: | |||||
Loan workout activity (in thousands) | 73 | 88 | (15) | 193 | (120) |
Loans in forbearance, based on loan count (%) | 1.15 | 1.67 | (0.52) | 2.95 | (1.80) |
Current (%) | 0.15 | 0.26 | (0.11) | N/A | N/A |
Past due (%) | 1.00 | 1.41 | (0.41) | 2.95 | (1.95) |
Credit enhancement coverage (%) | 50 | 49 | 1 | 51 | (1) |
Multifamily Segment |
Financial Results |
(Dollars in millions) | 3Q 2021 | 2Q 2021 | Change | 3Q 2020 | Change |
Net interest income | $338 | $307 | $31 | $289 | $49 |
Guarantee income | 266 | 346 | (80) | 275 | (9) |
Investment gains (losses), net | 630 | 499 | 131 | 1,040 | (410) |
Other income (loss) | 52 | (1) | 53 | 43 | 9 |
Net revenues | 1,286 | 1,151 | 135 | 1,647 | (361) |
Credit-related income (expense) | (17) | 43 | (60) | (20) | 3 |
Operating expense | (156) | (155) | (1) | (137) | (19) |
Income (loss) before income tax (expense) benefit | 1,113 | 1,039 | 74 | 1,490 | (377) |
Income tax (expense) benefit | (222) | (215) | (7) | (309) | 87 |
Net income (loss) | 891 | 824 | 67 | 1,181 | (290) |
Total other comprehensive income (loss), net of taxes and reclassification adjustments | (28) | 6 | (34) | (4) | (24) |
Comprehensive income (loss) | $863 | $830 | $33 | $1,177 | $(314) |
Multifamily Segment |
Business Results |
3Q 2021 | 2Q 2021 | Change | 3Q 2020 | Change | |
New Business Statistics: | |||||
Weighted average original LTV (%) | 67 | 68 | (1) | 66 | 1 |
Weighted average original debt service coverage ratio | 1.35 | 1.38 | (0.03) | 1.42 | (0.07) |
Number of rental units financed (in thousands) | 161 | 137 | 24 | 185 | (24) |
Affordable ≤ 80% of AMI (% of eligible units acquired) | 68 | 77 | (9) | 70 | (2) |
Affordable ≤ 120% of AMI (% of eligible units acquired) | 94 | 97 | (3) | 96 | (2) |
Guarantee Activity Statistics: | |||||
Average guarantee fee rate charged (bps) | 56 | 54 | 2 | 51 | 5 |
Guaranteed UPB (in billions) | $15 | $18 | $(3) | $21 | $(6) |
Portfolio Statistics: | |||||
Average guarantee fee rate charged (bps) | 42 | 41 | 1 | 38 | 4 |
Loan count (in thousands) | 30 | 30 | - | 28 | 2 |
Unit count (in thousands) | 4,624 | 4,627 | (3) | 4,450 | 174 |
Credit-Related Statistics: | |||||
Loans in forbearance, based on UPB (%) | 0.46 | 1.28 | (0.82) | 2.20 | (1.74) |
Loans in forbearance period (%) | 0.06 | 0.02 | 0.04 | 0.22 | (0.16) |
Loans in repayment period (%) | 0.40 | 1.26 | (0.86) | 1.98 | (1.58) |
Credit enhancement coverage (%) | 94 | 94 | - | 91 | 3 |
Media Contact: Frederick Solomon (703) 903-3861 | Investor Contact: Laurie Garthune (571) 382-4732 |
(In millions, except share-related amounts)
| 3Q 2021 | 2Q 2021 | 3Q 2020 |
Net interest income | |||
Interest income | $15,791 | $15,230 | $14,849 |
Interest expense | (11,373) | (10,463) | (11,392) |
Net interest income | 4,418 | 4,767 | 3,457 |
Non-interest income (loss) | |||
Guarantee income | 246 | 356 | 315 |
Investment gains (losses), net | 383 | 636 | 1,122 |
Other income (loss) | 200 | 107 | 172 |
Non-interest income (loss) | 829 | 1,099 | 1,609 |
Net revenues | 5,247 | 5,866 | 5,066 |
Benefit (provision) for credit losses | 243 | 740 | (327) |
Non-interest expense | |||
Salaries and employee benefits | (352) | (346) | (334) |
Professional services | (76) | (97) | (105) |
Other administrative expense | (199) | (208) | (202) |
Total administrative expense | (627) | (651) | (641) |
Credit enhancement expense | (386) | (369) | (267) |
Benefit for (decrease in) credit enhancement recoveries | (60) | (193) | 20 |
REO operations income (expense) | 9 | (7) | (40) |
Temporary Payroll Tax Cut Continuation Act of 2011 expense | (602) | (570) | (467) |
Other expense | (178) | (179) | (237) |
Non-interest expense | (1,844) | (1,969) | (1,632) |
Income (loss) before income tax (expense) benefit | 3,646 | 4,637 | 3,107 |
Income tax (expense) benefit | (727) | (958) | (644) |
Net income (loss) | 2,919 | 3,679 | 2,463 |
Other comprehensive income (loss), net of taxes and reclassification adjustments | |||
Changes in unrealized gains (losses) related to available-for-sale securities | (14) | (73) | (16) |
Changes in unrealized gains (losses) related to cash flow hedge relationships | 7 | 8 | 6 |
Changes in defined benefit plans | (3) | (3) | (4) |
Total other comprehensive income (loss), net of taxes and reclassification adjustments | (10) | (68) | (14) |
Comprehensive income (loss) | $2,909 | $3,611 | $2,449 |
Net income (loss) | $2,919 | $3,679 | $2,463 |
Future increase in senior preferred stock liquidation preference | (2,909) | (3,611) | (2,449) |
Net income (loss) attributable to common stockholders | $10 | $68 | $14 |
Net income (loss) per common share - basic and diluted | $0.00 | $0.02 | $0.00 |
Weighted average common shares outstanding (in millions) - basic and diluted | 3,234 | 3,234 | 3,234 |
September 30, | December 31, | |
(In millions, except share-related amounts)
| 2021 | 2020 |
Assets | ||
Cash and cash equivalents (includes $875 and $17,379 of restricted cash and cash equivalents)
| $9,478 | $23,889 |
Securities purchased under agreements to resell | 85,315 | 105,003 |
Investment securities, at fair value | 56,930 | 59,825 |
Mortgage loans held-for-sale (includes $8,436 and $14,199 at fair value)
| 17,517 | 33,652 |
Mortgage loans held-for-investment (net of allowance for credit losses of $4,531 and $5,732)
| 2,715,597 | 2,350,236 |
Accrued interest receivable (net of allowance of $157 and $140)
| 7,490 | 7,754 |
Derivative assets, net | 953 | 1,205 |
Deferred tax assets, net | 6,099 | 6,557 |
Other assets (includes $6,078 and $5,775 at fair value)
| 38,605 | 39,294 |
Total assets | $2,937,984 | $2,627,415 |
Liabilities and equity | ||
Liabilities | ||
Accrued interest payable | $6,049 | $6,210 |
Debt (includes $1,984 and $2,592 at fair value)
| 2,895,426 | 2,592,546 |
Derivative liabilities, net | 389 | 954 |
Other liabilities | 10,809 | 11,292 |
Total liabilities | 2,912,673 | 2,611,002 |
Commitments and contingencies | ||
Equity | ||
Senior preferred stock (liquidation preference of $95,050 and $86,539)
| 72,648 | 72,648 |
Preferred stock, at redemption value | 14,109 | 14,109 |
Common stock, $0.00 par value, 4,000,000,000 shares authorized, 725,863,886 shares issued and 650,059,553 shares and 650,059,292 shares outstanding
| - | - |
Additional paid-in capital | - | - |
Retained earnings (accumulated deficit) | (57,737) | (67,102) |
AOCI, net of taxes, related to: | ||
Available-for-sale securities | 328 | 810 |
Cash flow hedge relationships | (181) | (206) |
Defined benefit plans | 29 | 39 |
Total AOCI, net of taxes | 176 | 643 |
Treasury stock, at cost, 75,804,333 shares and 75,804,594 shares
| (3,885) | (3,885) |
Total equity | 25,311 | 16,413 |
Total liabilities and equity | $2,937,984 | $2,627,415 |
The table below presents the carrying value and classification of the assets and liabilities of consolidated variable interest entities (VIEs) on the company's condensed consolidated balance sheets.
| ||
September 30, | December 31, | |
(In millions) | 2021 | 2020 |
Condensed Consolidated Balance Sheet Line Item | ||
Assets: | ||
Mortgage loans held-for-investment | $2,671,954 | $2,273,347 |
All other assets | 65,454 | 83,982 |
Total assets of consolidated VIEs | $2,737,408 | $2,357,329 |
Liabilities: | ||
Debt | $2,701,530 | $2,308,176 |
All other liabilities | 5,731 | 5,610 |
Total liabilities of consolidated VIEs | $2,707,261 | $2,313,786 |
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Freddie Mac - Federal Home Loan Mortgage Corporation published this content on 29 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 October 2021 12:10:27 UTC.