Q2 2024 Federal Home Loan Mortgage Corp Earnings Call Transcript
Key Points
- Federal Home Loan Mortgage Corp (FMCC) earned $2.8 billion in the second quarter, increasing its net worth to $53 billion.
- The company financed 212,000 home purchases, with 53% being first-time homebuyers and 53% affordable to low and moderate-income families.
- Net interest income increased by 9% year-over-year to $4.9 billion, driven by growth in the Single-Family mortgage portfolio and lower debt-related expenses.
- Non-interest income rose by 30% year-over-year to $1.1 billion, primarily due to higher guarantee income and net investment gains.
- The Single-Family serious delinquency rate continued to be historically low, declining to 50 basis points at the end of the second quarter.
- Net income decreased by $179 million or 6% year-over-year, primarily due to a credit reserve build.
- The Single-Family business reported a net income decrease of $97 million or 4% year-over-year.
- The provision for Single-Family credit losses was an expense of $315 million this quarter, compared to a benefit of $638 million in the prior year.
- Multifamily net income decreased by $82 million or 15% year-over-year, driven by lower non-interest income.
- The Multifamily delinquency rate increased to 38 basis points, up 17 basis points from the prior year, primarily due to delinquency in floating rate loans and small balance loans.
Good morning, and thank you for joining us for Freddie Mac's second quarter 2024, financial results Presentation. I'm Jeff Markowitz, Deputy CAO and SVP of External Affairs and Corporate Communications. We are joined today by our Interim Chief Financial Officer, Jim Whitlinger.
Before we begin, we'd like to point out that during the call, Mr. Whitlinger 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-Q filed today. You will 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
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