Head shares plans for the rest of the year
Freddie Mac has released its financial report, reporting a net income of $1.8 billion for the fourth quarter and $9.3 billion for the full-year 2022.
The financial report shows a decline in net income for the fourth quarter and full year, primarily driven by lower net revenues and a credit reserve build in the company’s single-family business. The income of $1.8 billion in Q4 was down 36% year over year, and the full-year income of $9.3 billion was down 23% from 2021. Net revenues fell 13% to $4.8 billion in Q4 and 3% to $21.3 billion in 2022 due to a decline in net interest income.
Freddie Mac’s provision for credit losses was $1.8 billion for full-year 2022, compared to a benefit for credit losses of $1 billion in 2021. The increase was mainly due to declining observed and forecasted house price appreciation.
Its single-family unit brought in $75 billion in Q4 through new business activity, down 72% year over year as refinance activity slowed due to higher interest rates. Full-year activity of $541 billion was also down 56% from 2021.
On the other hand, Freddie Mac Multifamily’s new business activity saw a 16% gain to $29 billion in the fourth quarter. Full-year activity of $73 billion, up 4% year-over-year, was primarily driven by a larger loan purchase cap available during 2022.
Looking ahead, Freddie Mac CEO Michael DeVito said they plan to place even more emphasis on their mission by further advancing its affordable, sustainable, and equitable housing plans.
“We expect to accomplish these objectives by leveraging our talented workforce, collaborating with market participants to find new solutions, and continuously working to effectively manage risk,” DeVito said in the company’s financial report. “These actions will enable Freddie Mac to continue to build financial strength and stability that is central to fulfilling our mission.”
Stay updated on the latest developments in the mortgage industry and get exclusive interviews, breaking news, and industry events in your inbox by subscribing to our FREE daily newsletter.
