Earnings release
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Freddie Mac Reports Net Income of $3.2 Billion for Third Quarter 2026 Making Home Possible for 420,000 Households in Third Quarter 2026 • Financed 286,000 mortgages, with 56% of eligible loans affordable to low- to moderate-income families. • First-time homebuyers represented 51% of new single-family home purchase loans. • Financed 134,000 rental units, with 91% of eligible units affordable to low- to moderate-income families. Third Quarter 2026 Financial Results During Third Quarter 2026 As of September 30, 2026 Market Liquidity Provided - $114 Billion Homes and Rental Units Financed - 420,000 Net Worth - $81 Billion Total Mortgage Portfolio - $3.7 Trillion Consolidated • Net income of $3.2 billion, up 17% year-over-year, primarily driven by higher net revenues and lower non-interest expense, partially offset by an increase in the provision for credit losses. • Net revenues of $6.8 billion, an increase of 19% year- over-year, primarily driven by higher net interest income and higher non-interest income. • Provision for credit losses of $0.8 billion, primarily driven by a credit reserve build in Single-Family. • New business activity of $98 billion, down from $99 billion in the third quarter of 2025. • Mortgage portfolio of $3.2 trillion, up 1% year-over- year. • Serious delinquency rate of 0.61% , up from 0.59% at December 31, 2025 and 0.57% at September 30, 2025. • New business activity of $16 billion, down from $25 billion in the third quarter of 2025. • Mortgage portfolio of $510 billion, up 6% year-over- year. • Delinquency rate of 0.58% , up from 0.44% at December 31, 2025 and 0.51% at September 30, 2025. "Freddie Mac delivered another strong quarter, with solid earnings and a growing mortgage portfolio. With direction from U.S. Federal Housing in the third quarter, the company began accepting the use of VantageScore’s credit scoring model by all lenders and continued to support our mission of making housing more affordable across the country." William J. Pulte, Director, U.S. Federal Housing and Chair of the Board of Directors, Freddie Mac "Freddie Mac's team has made home possible for millions of families across the country. In the third quarter alone, we helped 420,000 families buy, refinance, or rent a home, including 106,000 first time homebuyers. We earned net income of $3.2 billion on net revenue of $6.8 billion in the third quarter. Through the first three quarters of 2026, net income has increased 34 percent compared with the same period a year ago." Kenny Smith, CEO of Freddie Mac Net Revenues $6.8 Billion Net Income $3.2 Billion Comprehensive Income $3.2 Billion Single-Family Net Revenues $5.8 Billion Net Income $2.7 Billion Comprehensive Income $2.7 Billion Multifamily Net Revenues $1.0 Billion Net Income $0.5 Billion Comprehensive Income $0.5 Billion
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McLean, VA — Freddie Mac (OTCQB: FMCC) today reported net income of $3.2 billion for the third quarter of 2026, up 17% from the third quarter of 2025, primarily driven by higher net revenues and lower non-interest expense, partially offset by an increase in the provision for credit losses. Net revenues were $6.8 billion for the third quarter of 2026, up 19% year-over-year, primarily driven by higher net interest income and higher non-interest income. Net interest income for the third quarter of 2026 was $5.9 billion, up 8% year-over-year, primarily driven by an increase in the balance of fully guaranteed securitizations in the Multifamily mortgage portfolio due to the change in Multifamily business strategy and continued mortgage portfolio growth in Single-Family. Non-interest income for the third quarter of 2026 was $0.9 billion, up from non-interest income of $0.3 billion in the third quarter of 2025, primarily driven by net investment gains in the third quarter of 2026 compared to net investment losses in the third quarter of 2025. The provision for credit losses was $0.8 billion for the third quarter of 2026, primarily due to a credit reserve build in Single-Family driven by an increase in projected future mortgage interest rates, as well as new acquisitions. The provision for credit losses was $0.2 billion for the third quarter of 2025, primarily driven by a credit reserve build in Single-Family attributable to new acquisitions. Non-interest expense was $2.0 billion for the third quarter of 2026, down 6% year-over-year, primarily driven by lower credit enhancement expense, as well as a decrease in salaries and employee benefits. Summary of Consolidated Statements of Income and Comprehensive Income (Dollars in millions) 3Q 2026 2Q 2026 Change 3Q 2025 Change Net interest income $5,877 $6,010 ($133) $5,455 $422 Non-interest income (loss) 933 (19) 952 284 649 Net revenues 6,810 5,991 819 5,739 1,071 (Provision) benefit for credit losses (800) 880 (1,680) (175) (625) Non-interest expense (1,994) (2,097) 103 (2,116) 122 Income before income tax expense 4,016 4,774 (758) 3,448 568 Income tax expense (781) (936) 155 (675) (106) Net income 3,235 3,838 (603) 2,773 462 Other comprehensive income (loss), net of taxes and reclassification adjustments (29) 9 (38) 16 (45) Comprehensive income $3,206 $3,847 ($641) $2,789 $417 Conservatorship metrics (in millions) Net worth $80,975 $77,769 $3,206 $67,600 $13,375 Senior preferred stock liquidation preference 150,417 146,570 3,847 137,459 12,958 Remaining Treasury funding commitment 140,162 140,162 — 140,162 — Cumulative dividend payments to Treasury 119,680 119,680 — 119,680 — Cumulative draws from Treasury 71,648 71,648 — 71,648 — Freddie Mac Third Quarter 2026 Financial Results October 29, 2026 Page 2
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Single-Family Segment Financial Results Net Revenues (In billions) $4.9 $4.9 $5.2 $5.1 $5.8 3Q254Q251Q262Q263Q26 Net Income (In billions) $2.3 $2.5 $3.0 $3.3 $2.7 3Q254Q251Q262Q263Q26 Comprehensive Income (In billions) $2.4 $2.5 $3.0 $3.3 $2.7 3Q254Q251Q262Q263Q26 (Dollars in millions) 3Q 2026 2Q 2026 Change 3Q 2025 Change Net interest income $5,294 $5,449 ($155) $5,047 $247 Non-interest income (loss) 537 (349) 886 (143) 680 Net revenues 5,831 5,100 731 4,904 927 (Provision) benefit for credit losses (685) 846 (1,531) (118) (567) Non-interest expense (1,777) (1,870) 93 (1,868) 91 Income before income tax expense 3,369 4,076 (707) 2,918 451 Income tax expense (655) (799) 144 (571) (84) Net income 2,714 3,277 (563) 2,347 367 Other comprehensive income (loss), net of taxes and reclassification adjustments (9) 3 (12) 6 (15) Comprehensive income $2,705 $3,280 ($575) $2,353 $352 Third Quarter 2026 Net income of $2.7 billion, up 16% year-over-year. • Net revenues were $5.8 billion, up 19% year-over-year. ◦ Net interest income was $5.3 billion, up 5% year-over-year, primarily driven by continued mortgage portfolio growth. ◦ Non-interest income was $0.5 billion, compared to non-interest loss of $0.1 billion in the third quarter of 2025, primarily driven by changes in interest rates in each respective period. In 3Q 2026, gains on derivatives used in interest-rate risk management activities were offset by losses on investment securities. In 3Q 2025, losses on derivatives used in interest-rate risk management activities were offset by gains on investment securities. • The provision for credit losses was $0.7 billion for the third quarter of 2026, primarily due to a credit reserve build driven by an increase in projected future mortgage interest rates, as well as new acquisitions. The provision for credit losses was $0.1 billion for the third quarter of 2025, primarily driven by a credit reserve build attributable to new acquisitions. • Non-interest expense was $1.8 billion for the third quarter of 2026, down 5% year-over-year, primarily driven by lower credit enhancement expense, as well as a decrease in salaries and employee benefits. Freddie Mac Third Quarter 2026 Financial Results October 29, 2026 Page 3
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Single-Family Segment Business Results New Business Activity (UPB in billions) $99 $118 $103 $110 $98 $81 $77 $60 $74 $80 $18 $41 $43 $36 $18 Home purchase Refinance 3Q254Q251Q262Q263Q26 Mortgage Portfolio (UPB in billions) $3,141$3,156$3,158$3,172$3,186 3Q254Q251Q262Q263Q26 Serious Delinquency Rate 0.57% 0.59% 0.60% 0.60% 0.61% 3Q254Q251Q262Q263Q26 3Q 2026 2Q 2026 Change 3Q 2025 Change New Business Statistics: Single-Family homes funded (in thousands) 286 306 (20) 288 (2) Purchase borrowers (in thousands) 222 200 22 226 (4) Refinance borrowers (in thousands) 64 106 (42) 62 2 Affordable to low- to moderate-income families (%) (1) 56 54 2 54 2 First-time homebuyers (%) (2) 51 52 (1) 50 1 Average estimated guarantee fee rate (bps) 53 54 (1) 54 (1) Weighted average original loan-to-value (LTV) (%) 77 76 1 77 — Weighted average original credit score 759 761 (2) 756 3 Credit score model used for pricing assessment: Classic FICO Score (%) 94 100 (6) 100 (6) VantageScore 4.0 (%) 6 — 6 N/A N/A Portfolio Statistics: Average estimated guarantee fee rate (bps) 50 50 — 50 — Weighted average current LTV (%) 54 53 1 53 1 Weighted average current credit score 755 755 — 754 1 Loan count (in millions) 13.9 13.9 — 13.9 — Credit-Related Statistics: Loan workout activity (in thousands) 21 22 (1) 22 (1) Allowance for credit losses to total loans outstanding (%) (3) 0.22 0.19 0.03 0.24 (0.02) Credit enhancement coverage (%) 60 61 (1) 62 (2) (1) Eligible loans acquired affordable to families earning at or below 120% of area median income (AMI). (2) Calculated as a percentage of purchase borrowers with loans secured by primary residences. (3) Calculated as the allowance for credit losses on mortgage loans held-for-investment divided by the amortized cost basis of mortgage loans held-for-investment for which the fair value option has not been elected. Business Highlights • New business activity of $98 billion, down from $99 billion in the third quarter of 2025. Financed 286,000 mortgages and enabled 106,000 first-time homebuyers to purchase a home. Freddie Mac Third Quarter 2026 Financial Results October 29, 2026 Page 4
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Multifamily Segment Financial Results Net Revenues (In billions) $0.8 $0.9 $1.0 $0.9 $1.0 3Q254Q251Q262Q263Q26 Net Income (In billions) $0.4 $0.3 $0.6 $0.6 $0.5 3Q254Q251Q262Q263Q26 Comprehensive Income (In billions) $0.4 $0.3 $0.6 $0.6 $0.5 3Q254Q251Q262Q263Q26 (Dollars in millions) 3Q 2026 2Q 2026 Change 3Q 2025 Change Net interest income $583 $561 $22 $408 $175 Non-interest income (loss) 396 330 66 427 (31) Net revenues 979 891 88 835 144 (Provision) benefit for credit losses (115) 34 (149) (57) (58) Non-interest expense (217) (227) 10 (248) 31 Income before income tax expense 647 698 (51) 530 117 Income tax expense (126) (137) 11 (104) (22) Net income 521 561 (40) 426 95 Other comprehensive income (loss), net of taxes and reclassification adjustments (20) 6 (26) 10 (30) Comprehensive income $501 $567 ($66) $436 $65 Third Quarter 2026 Net income of $0.5 billion, up 22% year-over-year. • Net revenues were $1.0 billion, up 17% year-over-year. Net interest income was $0.6 billion, up 43% year- over-year, primarily driven by an increase in the balance of fully guaranteed securitizations in the Multifamily mortgage portfolio due to the change in Multifamily business strategy. • The provision for credit losses was $0.1 billion for the third quarter of 2026, primarily driven by a credit reserve build attributable to overall credit performance deterioration in the mortgage portfolio, partially offset by a credit reserve release due to updates in our credit loss estimation process. The provision for credit losses was $0.1 billion for the third quarter of 2025, primarily driven by new loan purchase commitment and acquisition activities and deterioration in the credit performance of certain delinquent loans. Freddie Mac Third Quarter 2026 Financial Results October 29, 2026 Page 5
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Multifamily Segment Business Results New Business Activity (UPB in billions) $25 $29 $13 $18 $16 3Q254Q251Q262Q263Q26 Mortgage Portfolio (UPB in billions) $480 $496 $498 $505 $510 3Q254Q251Q262Q263Q26 Delinquency Rate 0.51% 0.44% 0.43% 0.51% 0.58% 3Q254Q251Q262Q263Q26 3Q 2026 2Q 2026 Change 3Q 2025 Change New Business Statistics: Number of rental units financed (in thousands)(1) 134 133 1 195 (61) Affordable to low-income families (%) (2) 71 72 (1) 67 4 Affordable to low- to moderate-income families (%) (3) 91 91 — 92 (1) Weighted average original LTV (%) 63 63 — 64 (1) Weighted average original debt service coverage ratio(4) 1.30 1.30 — 1.29 0.01 Securitization Statistics: Securitization issuance (UPB in billions) $17 $23 ($6) $14 $3 Senior subordinate 1 1 — 2 (1) Fully guaranteed 16 22 (6) 12 4 Portfolio Statistics: Average guarantee fee rate charged (bps) at period end 60 59 1 54 6 Credit-Related Statistics: Allowance for credit losses to total loans outstanding (%) (5) 0.30 0.36 (0.06) 0.43 (0.13) Credit enhancement coverage (%) 89 92 (3) 90 (1) (1) Includes rental units financed by supplemental loans. (2) Eligible units acquired affordable to families earning at or below 80% of AMI. (3) Eligible units acquired affordable to families earning at or below 120% of AMI. (4) Assumes monthly payments that reflect amortization of principal. (5) Calculated as the allowance for credit losses on mortgage loans held-for-investment divided by the amortized cost basis of mortgage loans held-for-investment for which the fair value option has not been elected. Business Highlights • New business activity of $16 billion, down from $25 billion in the third quarter of 2025, primarily driven by the higher mortgage interest rate environment. • Provided financing for 134,000 multifamily rental units in the third quarter of 2026. 71% of the eligible multifamily rental units financed in the third quarter of 2026 were affordable to low-income families. Freddie Mac Third Quarter 2026 Financial Results October 29, 2026 Page 6
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About Freddie Mac’s Conservatorship Since September 2008, Freddie Mac has been operating under conservatorship with FHFA as Conservator. The support provided by Treasury pursuant to the Purchase Agreement enables the company to maintain access to the debt markets and have adequate liquidity to conduct its normal business operations. The amount of funding available to Freddie Mac under the Purchase Agreement was $140.2 billion at September 30, 2026. Pursuant to the Purchase Agreement, Freddie Mac will not be required to pay a dividend to Treasury on the senior preferred stock until it has built sufficient capital to meet the capital requirements and buffers set forth in the Enterprise Regulatory Capital Framework. As a result, the company was not required to pay a dividend to Treasury on the senior preferred stock in September 2026. As the company builds capital during this period, the quarterly increases in its Net Worth Amount have been, or will be, added to the aggregate liquidation preference of the senior preferred stock. The liquidation preference of the senior preferred stock increased to $150.4 billion on September 30, 2026 based on the increase in the Net Worth Amount during the second quarter of 2026, and will increase to $153.6 billion on December 31, 2026 based on the increase in the Net Worth Amount during the third quarter of 2026. Additional Information For more information, including information related to Freddie Mac’s financial results, conservatorship, and related matters, see the company’s Annual Report on Form 10-K for 2025, Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 and Third Quarter 2026 Earnings Presentation and Third Quarter 2026 Financial Supplement. These documents are available on the Investor Relations page of the company’s website at www.FreddieMac.com. Additional information about these matters and other information about Freddie Mac and its business is also set forth in the company’s other filings with the SEC, which are available on the Investor Relations page of the company’s website at www.FreddieMac.com and the SEC’s website at www.sec.gov. Freddie Mac encourages all investors and interested members of the public to review these materials for a more complete understanding of the company’s financial results and related disclosures. Webcast Announcement Management will host a conference call at 9 a.m. Eastern Time on October 29, 2026 to share the company’s results and other information about the company (which may include forward-looking information). The conference call will be concurrently webcast. To access the audio webcast, use the following link: https://edge.media- server.com/mmc/p/yc3azxbc. The replay will be available on the company’s website at www.FreddieMac.com for approximately 30 days. All materials related to the call will be available on the Investor Relations page of the company’s website at www.FreddieMac.com. Media Contact: Frederick Solomon (703) 903-3861 Investor Contact: Mahesh Lal (571) 382-4732 * * * * This press release contains forward-looking statements using terms such as will, expect, forecast, and others that do not refer solely to past periods. These may include statements pertaining to the conservatorship, the company’s current expectations and objectives for its Single-Family and Multifamily segments, its efforts to assist the housing market, liquidity and capital management, and the effects of economic and market conditions and trends including changes in house prices and house price forecasts, its market coverage, the effect of legislative and regulatory developments and new accounting guidance, the credit quality of loans the company owns or guarantees, the costs and benefits of the company’s credit risk transfer (CRT) transactions, the impact of banking crises or failures, and the effects of wars, terrorist incidents, public policy and political developments, cybersecurity incidents, natural disasters or catastrophic events and actions taken in response thereto. Forward- looking statements involve known and unknown risks and uncertainties beyond the company’s control. Management’s expectations necessarily involve assumptions, judgments, and estimates. Various factors could cause actual results to differ materially from those expectations, including changes in economic and market conditions, liquidity, mortgage spreads, credit outlook, actions by the U.S. government (including FHFA, Treasury, the executive branch, and Congress) and state and local governments, changes in the fiscal and monetary policies of the Federal Reserve, the impact of any downgrade in the company's credit ratings or those of the U.S. government, and the impacts of legislation or regulations and new or amended accounting guidance. These Freddie Mac Third Quarter 2026 Financial Results October 29, 2026 Page 7
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assumptions, judgments, estimates, and factors are discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2025 and our subsequent SEC filings, which are available on the Investor Relations page of the company’s website at www.FreddieMac.com and the SEC’s website at www.sec.gov. The company has no obligation to update forward-looking statements to reflect subsequent events or circumstances. Freddie Mac's mission is to make home possible for families across the nation. Freddie Mac promotes liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, Freddie Mac has helped tens of millions of families buy, rent or keep their home. Freddie Mac Third Quarter 2026 Financial Results October 29, 2026 Page 8
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FREDDIE MAC Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) (In millions, except share-related amounts) 3Q 2026 2Q 2026 3Q 2025 Net interest income Interest income $35,065 $34,275 $32,975 Interest expense (29,188) (28,265) (27,520) Net interest income 5,877 6,010 5,455 Non-interest income (loss) Guarantee income 213 288 377 Investment gains (losses), net 599 (426) (237) Other income 121 119 144 Non-interest income (loss) 933 (19) 284 Net revenues 6,810 5,991 5,739 (Provision) benefit for credit losses (800) 880 (175) Non-interest expense Salaries and employee benefits (400) (395) (423) Professional services, technology, and occupancy (286) (281) (293) Credit enhancement expense (422) (507) (489) Legislative and regulatory assessments (839) (840) (839) Other expense (47) (74) (72) Non-interest expense (1,994) (2,097) (2,116) Income before income tax expense 4,016 4,774 3,448 Income tax expense (781) (936) (675) Net income 3,235 3,838 2,773 Other comprehensive income (loss), net of taxes and reclassification adjustments (29) 9 16 Comprehensive income $3,206 $3,847 $2,789 Net income $3,235 $3,838 $2,773 Amounts attributable to senior preferred stock (3,206) (3,847) (2,789) Net income (loss) attributable to common stockholders $29 ($9) ($16) Net income (loss) per common share $0.01 $0.00 $0.00 Weighted average common shares (in millions) 3,234 3,234 3,234 Freddie Mac Third Quarter 2026 Financial Results October 29, 2026 Page 9
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FREDDIE MAC Condensed Consolidated Balance Sheets (Unaudited) September 30, December 31, (In millions, except share-related amounts) 2026 2025 Assets Cash and cash equivalents (includes $1,120 and $1,234 of restricted cash and cash equivalents) $4,561 $5,327 Securities purchased under agreements to resell 48,402 71,919 Investment securities, at fair value 78,167 85,412 Mortgage loans held-for-sale (includes $— and $— at fair value) 1,632 1,014 Mortgage loans held-for-investment (net of allowance for credit losses of $7,382 and $7,968 and includes $6,298 and $7,005 at fair value) 3,354,872 3,290,066 Accrued interest receivable 12,725 12,254 Deferred tax assets, net 4,031 5,040 Other assets (includes $6,964 and $6,421 at fair value) 27,815 26,566 Total assets $3,532,205 $3,497,598 Liabilities and equity Liabilities Accrued interest payable $10,985 $10,597 Debt issued by consolidated trusts (includes $5,789 and $5,841 at fair value) 3,261,342 3,198,008 Short-term debt 9,525 37,718 Long-term debt (includes $177 and $195 at fair value) 156,998 169,296 Other liabilities (includes $1,852 and $781 at fair value) 12,380 11,595 Total liabilities 3,451,230 3,427,214 Commitments and contingencies Equity Senior preferred stock (liquidation preference of $150,417 and $140,248) 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 outstanding — — Retained earnings (1,908) (12,539) AOCI, net of taxes 11 51 Treasury stock, at cost, 75,804,333 shares (3,885) (3,885) Total equity 80,975 70,384 Total liabilities and equity $3,532,205 $3,497,598 The table below presents the carrying value and classification of the assets and liabilities related to consolidated variable interest entities (VIEs) on the company's condensed consolidated balance sheets. September 30, December 31, (In millions) 2026 2025 Assets Cash and cash equivalents (includes $1,018 and $1,136 of restricted cash and cash equivalents) $1,018 $1,136 Securities purchased under agreements to resell 14,007 19,107 Investment securities, at fair value 854 34 Mortgage loans held-for-investment, net 3,281,419 3,198,847 Accrued interest receivable 11,503 10,825 Other assets 7,142 8,573 Total assets of consolidated VIEs $3,315,943 $3,238,522 Liabilities Accrued interest payable $9,881 $9,312 Debt issued by consolidated trusts 3,261,342 3,198,008 Total liabilities of consolidated VIEs $3,271,223 $3,207,320 Freddie Mac Third Quarter 2026 Financial Results October 29, 2026 Page 10