Q1 2024 Federal Home Loan Mortgage Corp Earnings Call Transcript
Key Points
- Net income increased by $771 million or 39% year-over-year, reaching $2.8 billion in the first quarter.
- First-time homebuyers represented 52% of new single-family home purchase loans, indicating strong support for this demographic.
- Net interest income rose by 6% year-over-year to $4.8 billion, driven by higher rates and growth in the single-family mortgage portfolio.
- Multifamily segment reported a significant increase in net income, up $503 million from the prior year quarter, primarily due to higher noninterest income.
- Provision for credit losses decreased significantly in both business segments compared to the prior year, indicating improved credit performance.
- Higher mortgage rates have led to slower prepayments, impacting deferred fee income recognition.
- The single-family serious delinquency rate, although historically low, showed a slight increase in the first quarter.
- House price growth forecast has been revised downwards, indicating potential cooling in the housing market.
- Refinance activity remains low due to higher mortgage rates, accounting for only 15% of total new business activity.
- Multifamily delinquency rate increased to 34 basis points, up 21 basis points from the previous year, driven by delinquencies in floating rate loans and small business loans portfolio.
Good morning, and thank you for joining us for a presentation of Freddie Mac's first quarter 2024 financial results. I'm Jeff Markowitz, Deputy CAO and SVP of External Affairs and Corporate Communications. We're joined today by our CFO, Chris Lown.
Before we begin, we'd like to point out that during the call, Mr. Lown may make forward-looking statements based on assumptions about the company's key business drivers and other factors. Changes in these factors could cause the company's actual results to materially vary from its expectations.
A description of those factors can be found in the company's quarterly report on Form 10-Q filed today. You'll find the 10-Q earnings press release and related materials posted on the Investor Relations section of FreddieMac.com. This call is recorded, and a replay will soon be available on FreddieMac.com. We ask that the call not be rebroadcast or transcribed.
With that, I'll turn the call over to Freddie Mac's CFO, Chris
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