Freddie Mac shoots to higher earnings in Q1

Freddie Mac posted net earnings of $3.8 billion in the first quarter of 2022, a sequential increase of 38.4%, thanks to a credit reserve release and investment returns that exceeded the firm’s expectations.

For Q1, the government-sponsored enterprise’s massive $3.30 trillion mortgage portfolio delivered investment gains of $1.5 billion. Freddie also recaptured loss reserves of $800 million from previous quarters due to strong house price appreciation and higher price forecasts.

“Freddie Mac delivered a strong first-quarter performance, with net income exceeding both the first and fourth quarters of 2021. Single-family serious delinquencies have declined to their lowest point in two years, and multifamily delinquencies are at near pre-pandemic levels as well,” said Freddie Mac CEO Michael DeVito.