Freddie Mac announces mixed bag in Q2 financial results
![](https://www.propertyloans.biz/wp-content/uploads/2022/08/freddie-mac-announces-mixed-bag-in-q2-financial-results.jpg)
Read more: Fed hikes interest rate again – reaction pours in
The mortgage giant’s net worth was up from $31.7 billion in Q1 to $34.1 billion in Q2. Its total mortgage portfolio stood at $3.3 trillion. Continued mortgage portfolio growth and higher guarantee fees helped keep net interest income steady at $4.8 billion. However, non-interest income tumbled by $1.1 billion, leading to an 8% year-over-year decline in net revenues ($5.4 billion).
The GSE reported a net income of $2.2 billion in its single-family business and $0.3 billion in its multifamily business. New business activity in Freddie Mac single-family slowed 52% year over year to $138 billion as refinances declined significantly due to higher rates. Meanwhile, multifamily new business activity was up 15% year over year to $15 billion.
“In the second quarter, Freddie Mac achieved solid financial results and continued to build equity to withstand potential economic stress,” said Freddie Mac CEO Michael DeVito. “We helped 617,000 families buy, refinance, or rent a home and introduced innovations which allow lenders to simplify the loan underwriting process and improve risk management. As rising mortgage rates, house price appreciation, and other economic factors challenge affordability, we are committed to working across the industry to promote equity and sustainable housing nationwide.”
Fannie Mae also recently released its second quarter financial results. It revealed $4.7 billion net income, a $245 million gain from the first quarter. The firm’s net worth reached $56.4 billion.
Comments are closed.