Freddie Mac's Q3 Net Income Dips 11% on Credit Reserve Build

TL;DR

**Freddie Mac's Q3 earnings are a red flag, with a significant credit reserve build signaling potential headwinds for the housing market.**

AI Summary

Freddie Mac reported a net income of $2.8 billion for Q3 2025, an 11% decrease from $3.1 billion in Q3 2024, primarily due to a credit reserve build of $175 million in Q3 2025 compared to a credit reserve release of $191 million in Q3 2024. Net revenues decreased by 2% year-over-year to $5.7 billion, driven by a $555 million decrease in non-interest income, partially offset by a $456 million increase in net interest income. The company's net worth grew to $67.6 billion as of September 30, 2025, up from $56.4 billion a year prior, increasing the senior preferred stock liquidation preference to $137.5 billion. Freddie Mac provided $124 billion in liquidity to the mortgage market in Q3 2025, supporting 483,000 home purchases, refinancings, and rental units. The total mortgage portfolio expanded by 2% year-over-year to $3.6 trillion, with single-family mortgages at $3.1 trillion (up 2%) and multifamily mortgages at $480 billion (up 6%). Credit enhancement coverage was maintained on 62% of the single-family portfolio and 90% of the multifamily portfolio.

Why It Matters

Freddie Mac's financial health is critical for the stability of the U.S. housing market, as it provides essential liquidity for mortgages. The 11% drop in net income, driven by a credit reserve build, signals potential caution regarding future credit performance, which could impact investor confidence in mortgage-backed securities. For homeowners and renters, Freddie Mac's continued support, evidenced by $124 billion in liquidity, ensures access to financing, but rising credit provisions could eventually translate to tighter lending standards or higher costs. In a competitive landscape with Fannie Mae, Freddie Mac's ability to manage credit risk and maintain portfolio growth is key to its ongoing relevance and mission fulfillment.

Risk Assessment

Risk Level: medium — The shift from a $191 million credit reserve release in Q3 2024 to a $175 million credit reserve build in Q3 2025, a $366 million swing, indicates increased caution regarding potential loan defaults. This build was primarily driven by new acquisitions in the Single-Family segment and changes in estimated market values of single-family properties, suggesting a deteriorating credit outlook.

Analyst Insight

Investors should closely monitor Freddie Mac's credit loss provisions and the underlying housing market indicators, particularly house price growth rates and delinquency trends. Consider re-evaluating exposure to mortgage-backed securities and other housing-related investments, as the credit reserve build suggests a more conservative outlook on future loan performance.

Financial Highlights

revenue

$5,739 million

net Income

$2,773 million

cash Position

$8,639 million

revenue Growth

-2%

Revenue Breakdown

Key Numbers

• $2.8B — Net income for 3Q 2025 (Down 11% from $3.1 billion in 3Q 2024)
• $5.7B — Net revenues for 3Q 2025 (Down 2% year-over-year from $5.8 billion)
• $67.6B — Net worth as of September 30, 2025 (Up from $56.4 billion as of September 30, 2024)
• $137.5B — Liquidation preference of senior preferred stock as of September 30, 2025 (Will increase to $140.2 billion on December 31, 2025)
• $124B — Liquidity provided to the mortgage market in 3Q 2025 (Enabled financing of 483,000 home purchases, refinancings, and rental units)
• $3.6T — Total mortgage portfolio at September 30, 2025 (Increased 2% year-over-year)
• $3.1T — Single-Family mortgage portfolio at September 30, 2025 (Up 2% year-over-year)
• $480B — Multifamily mortgage portfolio at September 30, 2025 (Up 6% year-over-year)
• 62% — Partial credit enhancement coverage on Single-Family mortgage portfolio (As of September 30, 2025)
• 90% — Partial credit enhancement coverage on Multifamily mortgage portfolio (As of September 30, 2025)

Key Players & Entities

• FEDERAL HOME LOAN MORTGAGE CORP (company) — Registrant
• FHFA (regulator) — Conservator of Freddie Mac
• Treasury (regulator) — Provider of support via Purchase Agreement
• Fannie Mae (company) — Competitor in the U.S. housing market
• National Association of Realtors (company) — Source for U.S. Single-Family Home Sales data
• U.S. Census Bureau (company) — Source for U.S. Single-Family Home Sales data
• Mortgage Bankers Association (company) — Source for National Delinquency Survey
• Federal Reserve Financial Accounts of the United States of America (regulator) — Source for Mortgage Debt Outstanding data
• Moody's Analytics (company) — Source for Apartment Vacancy Rates and Change in Effective Rents
• Real Capital Analytics Commercial Property Price Index (RCA CPPI) (company) — Source for Multifamily Quarterly Property Price Growth Rate

FAQ

Risk Factors

• Conservatorship Uncertainty [high — regulatory]: Freddie Mac has been operating in conservatorship since September 2008, with FHFA as its Conservator. The conservatorship has no specified termination date, creating significant uncertainty about the company's future business model and existence.
• Credit Reserve Build [medium — financial]: A credit reserve build of $175 million in Q3 2025, compared to a credit reserve release of $191 million in Q3 2024, significantly impacted net income, contributing to an 11% decrease year-over-year.
• Interest Rate Sensitivity [medium — market]: Net interest income from investments decreased by $142 million in Q3 2025 compared to Q3 2024, primarily due to lower income from securities purchased under agreements to resell driven by a decrease in short-term interest rates.
• Mortgage Portfolio Growth [medium — market]: The total mortgage portfolio expanded by 2% year-over-year to $3.6 trillion, with single-family at $3.1 trillion (up 2%) and multifamily at $480 billion (up 6%), indicating continued market activity but also exposure to credit and interest rate risks.
• FHFA Oversight [high — regulatory]: As a Government-Sponsored Enterprise (GSE) operating under FHFA conservatorship, Freddie Mac's operations, financial condition, and results are significantly affected by regulatory oversight and potential changes to its business model.

Industry Context

Freddie Mac operates within the U.S. housing finance market, providing critical liquidity and stability. The market is characterized by significant government involvement, with Freddie Mac and Fannie Mae acting as Government-Sponsored Enterprises (GSEs). Key indicators like home sales, house prices, mortgage origination volumes, and delinquency rates significantly influence the company's performance.

Regulatory Implications

As a GSE operating under conservatorship, Freddie Mac is subject to extensive regulation and oversight by the Federal Housing Finance Agency (FHFA). Changes in regulatory requirements or the ongoing conservatorship status can materially impact its business operations, financial condition, and strategic direction.

What Investors Should Do

1. Monitor conservatorship developments
2. Analyze credit risk trends
3. Assess interest rate impact
4. Evaluate portfolio growth drivers

Key Dates

• 2025-09-30: End of Q3 2025 — Reported net income of $2.8 billion, net worth of $67.6 billion, and a total mortgage portfolio of $3.6 trillion.
• 2025-12-31: Projected End of Q4 2025 — Senior preferred stock liquidation preference is expected to increase to $140.2 billion based on Q3 2025 net worth growth.
• 2024-12-31: End of Fiscal Year 2024 — Reference for the Annual Report on Form 10-K, which contains definitions and risk factors relevant to the current filing.

Glossary

GSE

Government-Sponsored Enterprise. A federally chartered corporation that provides credit and liquidity for specific sectors of the economy. (Freddie Mac is a GSE chartered by Congress to provide liquidity, stability, and affordability to the U.S. housing market.)

Conservatorship

A legal status where a receiver or conservator is appointed to manage the assets and operations of a company, often due to financial distress or regulatory concerns. (Freddie Mac has been operating in conservatorship since September 2008, significantly impacting its management and operations.)

Credit Reserve Build

An increase in the amount of funds set aside by a financial institution to cover potential loan losses. (A credit reserve build of $175 million in Q3 2025 negatively impacted net income compared to a release in the prior year.)

Net Interest Income

The difference between the interest income generated by a financial institution's interest-earning assets and the interest paid on its interest-bearing liabilities. (This is a key component of Freddie Mac's revenue, which increased by 9% year-over-year in Q3 2025.)

Securities purchased under agreements to resell

Short-term borrowing transactions where Freddie Mac sells securities with an agreement to repurchase them at a later date. (Income from these securities decreased, contributing to lower non-interest income due to falling short-term interest rates.)

Credit Enhancement Coverage

Measures taken to reduce credit risk exposure, such as mortgage insurance or credit risk transfer transactions, which transfer a portion of the credit risk to third parties. (Freddie Mac maintains credit enhancement coverage on 62% of its single-family and 90% of its multifamily portfolios.)

Year-Over-Year Comparison

Compared to the prior year's third quarter, Freddie Mac reported an 11% decrease in net income to $2.8 billion, primarily due to a $175 million credit reserve build versus a $191 million release. Net revenues saw a 2% decline to $5.7 billion, driven by a significant drop in non-interest income, though net interest income increased. The company's net worth, however, showed substantial growth, rising to $67.6 billion from $56.4 billion a year ago.

Key Financial Figures

• $2.8 b — lions) Key Drivers: n Net income was $2.8 billion, down 11% from 3Q 2024, primarily
• $5.7 b — elease in 3Q 2024. n Net revenues were $5.7 billion, a decrease of 2% year-over-year,
• $67.6 billion — r net interest income. n Net worth was $67.6 billion as of September 30, 2025, up from $56.4
• $56.4 billion — llion as of September 30, 2025, up from $56.4 billion as of September 30, 2024. The quarterly
• $137.5 billion — rence of the senior preferred stock was $137.5 billion on September 30, 2025, and will increas
• $140.2 billion — eptember 30, 2025, and will increase to $140.2 billion on December 31, 2025 based on the incre
• $124 billion — well as for rental housing. We provided $124 billion in liquidity to the mortgage market in
• $3.6 — ortfolio increased 2% year-over-year to $3.6 trillion at September 30, 2025, continu
• $3.1 — ur Single-Family mortgage portfolio was $3.1 trillion at September 30, 2025, up 2% y
• $480 billion — Our Multifamily mortgage portfolio was $480 billion at September 30, 2025, up 6% year-over-
• $5,455 — 2025 YTD 2024 $ % Net interest income $5,455 $4,999 $456 9 % $15,856 $14,686 $1,170
• $4,999 — TD 2024 $ % Net interest income $5,455 $4,999 $456 9 % $15,856 $14,686 $1,170 8 % No
• $456 — $ % Net interest income $5,455 $4,999 $456 9 % $15,856 $14,686 $1,170 8 % Non-int
• $15,856 — interest income $5,455 $4,999 $456 9 % $15,856 $14,686 $1,170 8 % Non-interest income
• $14,686 — t income $5,455 $4,999 $456 9 % $15,856 $14,686 $1,170 8 % Non-interest income 284 839

Filing Documents

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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 1

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 1 n Introduction 1 n Housing and Mortgage Market Conditions 4 n Consolidated Results of Operations 6 n Consolidated Balance Sheets Analysis 10 n Our Portfolios 11 n Our Business Segments 13 n Risk Management 20 l Credit Risk 20 l Market Risk 29 n Liquidity and Capital Resources 33 n Critical Accounting Estimates 40 n Regulation and Supervision 41 n Forward-Looking Statements 42

FINANCIAL STATEMENTS 44

FINANCIAL STATEMENTS 44 OTHER INFORMATION 92

CONTROLS AND PROCEDURES 94

CONTROLS AND PROCEDURES 94 EXHIBIT INDEX 96 SIGNATURES 97 FORM 10-Q INDEX 98 Freddie Mac 3Q 2025 Form 10-Q i Table of Contents MD&A TABLE INDEX Table Description Page 1 Summary of Consolidated Statements of Income and Comprehensive Income 6 2 Components of Net Interest Income 6 3 Analysis of Net Interest Yield 7 4 Components of Non-Interest Income 8 5 (Provision) Benefit for Credit Losses 8 6 Components of Non-Interest Expense 9 7 Summarized Condensed Consolidated Balance Sheets 10 8 Mortgage Portfolio 11 9 Mortgage-Related Investments Portfolio 12 10 Other Investments Portfolio 12 11 Single-Family Segment Financial Results 16 12 Multifamily Segment Financial Results 19 13 Allowance for Credit Losses Activity 20 14 Allowance for Credit Losses Ratios 20 15 Single-Family New Business Activity 22 16 Single-Family Mortgage Portfolio Newly Acquired Credit Enhancements 23 17 Single-Family Mortgage Portfolio Credit Enhancement Coverage Outstanding 23 18 Serious Delinquency Rates for Credit-Enhanced and Non-Credit-Enhanced Loans in Our Single-Family Mortgage Portfolio 24 19 Credit Quality Characteristics and Serious Delinquency Rates of Our Single-Family Mortgage Portfolio 25 20 Single-Family Mortgage Portfolio Attribute Combinations 25 21 Single-Family Completed Loan Workout Activity 27 22 Multifamily Mortgage Portfolio CRT Issuance 28 23 Credit-Enhanced and Non-Credit-Enhanced Loans Underlying Our Multifamily Mortgage Portfolio 29 24 Credit Quality of Our Multifamily Mortgage Portfolio Without Credit Enhancement 29 25 Duration Gap and PVS-YC and PVS-L Results Assuming Shifts of the Yield Curve 30 26 Duration Gap and PVS Results 30 27 Income Sensitivity on Financial Instruments Not Primarily Funded by Debt 31 28 PVS-L Results Before Derivatives and After Derivatives 31 29 GAAP Fair Value Sensitivity to Changes in Interest Rates 32 30 Liquidity Sources 33 31 Funding Sources 34 32 Debt of Freddie Ma

Management's Discussion and Analysis Introduction

Management's Discussion and Analysis Introduction

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations This Quarterly Report on Form 10-Q includes forward-looking statements that are based on current expectations and that are subject to significant risks and uncertainties. These forward-looking statements are made as of the date of this Form 10-Q. We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date of this Form 10-Q. Actual results might differ significantly from those described in or implied by such statements due to various factors and uncertainties, including those described in the MD&A - Forward-Looking Statements section of this Form 10-Q and the Introduction and Risk Factors sections of our Annual Report on Form 10-K for the year ended December 31, 2024, or 2024 Annual Report . Throughout this Form 10-Q, we use certain acronyms and terms that are defined in the Glossary of our 2024 Annual Report. You should read the following MD&A in conjunction with our 2024 Annual Report and our condensed consolidated financial statements and accompanying notes for the three and nine months ended September 30, 2025 included in Financial Statements . INTRODUCTION Freddie Mac is a GSE chartered by Congress in 1970, with a mission to provide liquidity, stability, and affordability to the U.S. housing market. We do this primarily by purchasing single-family and multifamily residential mortgage loans originated by lenders. In most instances, we package these loans into guaranteed mortgage-related securities, which are sold in the global capital markets, and transfer interest-rate and liquidity risks to third-party investors. In addition, we transfer a portion of our mortgage credit risk exposure to third-party investors through our credit risk transfer programs, which include securities- and insurance-based offerings. We also invest in mortgage loans, mortgage-related securities, and other types of assets. We do not originate

Management's Discussion and Analysis Introduction

Management's Discussion and Analysis Introduction Business Results Consolidated Financial Results Net Revenues and Net Income (In billions) Net Worth (In billions) Key Drivers: n Net income was $2.8 billion, down 11% from 3Q 2024, primarily driven by a credit reserve build in 3Q 2025, compared to a credit reserve release in 3Q 2024. n Net revenues were $5.7 billion, a decrease of 2% year-over-year, primarily driven by lower non-interest income, partially offset by higher net interest income. n Net worth was $67.6 billion as of September 30, 2025, up from $56.4 billion as of September 30, 2024. The quarterly increases in net worth have been, or will be, added to the aggregate liquidation preference of the senior preferred stock. The liquidation preference of the senior preferred stock was $137.5 billion on September 30, 2025, and will increase to $140.2 billion on December 31, 2025 based on the increase in net worth in 3Q 2025. Market Liquidity Market Liquidity (In thousands) We support the U.S. housing market by executing our mission to provide liquidity and help maintain credit availability for new and refinanced single-family mortgages as well as for rental housing. We provided $124 billion in liquidity to the mortgage market in 3Q 2025, which enabled the financing of 483,000 home purchases, refinancings, and rental units. Freddie Mac 3Q 2025 Form 10-Q 2

Management's Discussion and Analysis Introduction

Management's Discussion and Analysis Introduction Mortgage Portfolio Balances Mortgage Portfolio (UPB in billions) Key Drivers: n Our mortgage portfolio increased 2% year-over-year to $3.6 trillion at September 30, 2025, continuing to grow at a moderate pace. l Our Single-Family mortgage portfolio was $3.1 trillion at September 30, 2025, up 2% year-over-year. l Our Multifamily mortgage portfolio was $480 billion at September 30, 2025, up 6% year-over-year. Credit Enhancement Coverage Single-Family Mortgage Portfolio with Credit Enhancement (UPB in billions) Multifamily Mortgage Portfolio with Credit Enhancement (UPB in billions) In addition to transferring interest-rate and liquidity risk to third-party investors through our securitization activities, we engage in various types of credit enhancements, such as primary mortgage insurance and CRT transactions, to reduce our credit risk exposure and transfer a portion of the credit risk on certain loans in our mortgage portfolios to third parties. At September 30, 2025, we had partial credit enhancement coverage on 62% of our Single-Family mortgage portfolio and 90% of our Multifamily mortgage portfolio. See MD&A - Risk Management – Credit Risk for additional information on our credit enhancements. Freddie Mac 3Q 2025 Form 10-Q 3

Management's Discussion and Analysis Housing and Mortgage Market Conditions

Management's Discussion and Analysis Housing and Mortgage Market Conditions HOUSING AND MORTGAGE MARKET CONDITIONS The charts below present certain housing and mortgage market indicators that can significantly affect our business and financial results. Certain market and macroeconomic prior period data have been updated to reflect revised historical data. For additional information on the effect of these indicators on our business and financial results, see MD&A – Consolidated Results of Operations and MD&A – Our Business Segments . Single-Family U.S. Single-Family Home Sales and House Prices Sources: National Association of Realtors, U.S. Census Bureau, and Freddie Mac House Price Index (seasonally adjusted rate). The 3Q 2025 new homes sales data is not yet available. U.S. Single-Family Mortgage Originations (UPB in billions) Source: Freddie Mac and Fannie Mae. Single-Family Serious Delinquency Rates Source: Freddie Mac and National Delinquency Survey from the Mortgage Bankers Association. The 3Q 2025 total mortgage market rate is not yet available. Single-Family Mortgage Debt Outstanding (UPB in trillions) Source: Freddie Mac and Federal Reserve Financial Accounts of the United States of America. The 3Q 2025 U.S. single-family mortgage debt outstanding balance is not yet available. Freddie Mac 3Q 2025 Form 10-Q 4

Management's Discussion and Analysis Housing and Mortgage Market Conditions

Management's Discussion and Analysis Housing and Mortgage Market Conditions Multifamily Apartment Vacancy Rates and Change in Effective Rents Source: Moody's Analytics. Multifamily Quarterly Property Price Growth Rate Source: Real Capital Analytics Commercial Property Price Index (RCA CPPI). Multifamily Delinquency Rates Source: Freddie Mac, FDIC Quarterly Banking Profile, Intex Solutions, Inc., and Wells Fargo Securities (Multifamily CMBS conduit market, excluding REOs). The 3Q 2025 delinquency rate for FDIC insured institutions is not yet available. Multifamily Mortgage Debt Outstanding (UPB in billions) Source: Freddie Mac and Federal Reserve Financial Accounts of the United States of America. The 3Q 2025 U.S. multifamily mortgage debt outstanding balance is not yet available. Freddie Mac 3Q 2025 Form 10-Q 5

Management's Discussion and Analysis Consolidated Results of Operations

Management's Discussion and Analysis Consolidated Results of Operations CONSOLIDATED RESULTS OF OPERATIONS The discussion of our consolidated results of operations should be read in conjunction with our condensed consolidated financial statements and accompanying notes. The table below compares our summarized consolidated results of operations. Table 1 - Summary of Consolidated Statements of Income and Comprehensive Income Change Change (Dollars in millions) 3Q 2025 3Q 2024 $ % YTD 2025 YTD 2024 $ % Net interest income $5,455 $4,999 $456 9 % $15,856 $14,686 $1,170 8 % Non-interest income 284 839 (555) (66) 1,651 2,897 (1,246) (43) Net revenues 5,739 5,838 (99) (2) 17,507 17,583 (76) — (Provision) benefit for credit losses (175) 191 (366) NM (1,238) (384) (854) (222) Non-interest expense (2,116) (2,183) 67 3 (6,362) (6,439) 77 1 Income before income tax expense 3,448 3,846 (398) (10) 9,907 10,760 (853) (8) Income tax expense (675) (741) 66 9 (1,953) (2,124) 171 8 Net income 2,773 3,105 (332) (11) 7,954 8,636 (682) (8) Other comprehensive income (loss), net of taxes and reclassification adjustments 16 62 (46) (74) 71 32 39 122 Comprehensive income $2,789 $3,167 ($378) (12) % $8,025 $8,668 ($643) (7) % Net Revenues Net Interest Income The table below presents the components of net interest income. Table 2 - Components of Net Interest Income Change Change (Dollars in millions) 3Q 2025 3Q 2024 $ % YTD 2025 YTD 2024 $ % Guarantee net interest income: Contractual net interest income $4,041 $3,844 $197 5 % $12,053 $11,430 $623 5 % Deferred fee income 185 188 (3) (2) 557 533 24 5 Total guarantee net interest income 4,226 4,032 194 5 12,610 11,963 647 5 Investments net interest income 1,369 1,511 (142) (9) 4,040 4,595 (555) (12) Impact on net interest income from hedge accounting (140) (544) 404 74 (794) (1,872) 1,078 58 Net interest income $5,455 $4,999 $456 9 % $15,856 $14,686 $1,170 8 % Key Drivers: n Guarantee net interest income l 3Q

Management's Discussion and Analysis Consolidated Results of Operations

Management's Discussion and Analysis Consolidated Results of Operations Net Interest Yield Analysis The table below presents a yield analysis of interest-earning assets and interest-bearing liabilities. Table 3 - Analysis of Net Interest Yield 3Q 2025 3Q 2024 (Dollars in millions) Average Balance Interest Income (Expense) Average Rate Average Balance Interest Income (Expense) Average Rate Interest-earning assets: Cash and cash equivalents $8,639 $70 3.16 % $9,848 $103 4.10 % Securities purchased under agreements to resell 101,119 1,136 4.49 109,863 1,511 5.50 Investment securities 83,769 932 4.45 45,616 510 4.48 Mortgage loans (1) 3,234,083 30,802 3.81 3,133,839 27,640 3.53 Other assets 3,134 35 4.36 2,624 45 6.72 Total interest-earning assets 3,430,744 32,975 3.85 3,301,790 29,809 3.62 Interest-bearing liabilities: Debt of consolidated trusts 3,147,760 (25,072) (3.19) 3,064,773 (22,330) (2.91) Debt of Freddie Mac 210,180 (2,448) (4.65) 178,148 (2,480) (5.56) Total interest-bearing liabilities 3,357,940 (27,520) (3.28) 3,242,921 (24,810) (3.06) Impact of net non-interest-bearing funding 72,804 — 0.07 58,869 — 0.05 Total funding of interest-earning assets 3,430,744 (27,520) (3.21) 3,301,790 (24,810) (3.01) Net interest income/yield $5,455 0.64 % $4,999 0.61 % (1) Loan fees included in net interest income were $0.3 billion during both 3Q 2025 and 3Q 2024. YTD 2025 YTD 2024 (Dollars in millions) Average Balance Interest Income (Expense) Average Rate Average Balance Interest Income (Expense) Average Rate Interest-earning assets: Cash and cash equivalents $9,121 $222 3.21 % $11,119 $351 4.15 % Securities purchased under agreements to resell 106,372 3,562 4.47 112,825 4,636 5.48 Investment securities 71,506 2,397 4.47 42,936 1,464 4.55 Mortgage loans (1) 3,214,122 90,098 3.74 3,115,870 80,690 3.45 Other assets 2,712 109 5.29 2,339 117 6.58 Total interest-earning assets 3,403,833 96,388 3.77 3,285,089 87,258 3.

Management's Discussion and Analysis Consolidated Results of Operations

Management's Discussion and Analysis Consolidated Results of Operations Non-Interest Income The table below presents the components of non-interest income. Table 4 - Components of Non-Interest Income Change Change (Dollars in millions) 3Q 2025 3Q 2024 $ % YTD 2025 YTD 2024 $ % Guarantee income $377 $487 ($110) (23) % $1,215 $1,366 ($151) (11) % Investment gains (losses), net (237) 243 (480) NM 74 1,197 (1,123) (94) Other income 144 109 35 32 362 334 28 8 Non-interest income $284 $839 ($555) (66) % $1,651 $2,897 ($1,246) (43) % Key Drivers: n Guarantee income l 3Q 2025 vs. 3Q 2024 - Decreased primarily due to less favorable fair value changes as a result of smaller declines in medium-term interest rates during 3Q 2025. l YTD 2025 vs. YTD 2024 - Decreased primarily due to less favorable fair value changes from prepayment rates during YTD 2025. n Investment gains (losses), net l 3Q 2025 vs. 3Q 2024 - Decreased primarily due to losses in Single-Family driven by interest rate and spread changes. l YTD 2025 vs. YTD 2024 - Decreased primarily due to lower gains in Single-Family driven by interest rate and spread changes, as well as lower revenues from held-for-sale loan purchase and securitization activities in Multifamily due to our business strategy change. (Provision) Benefit for Credit Losses The table below presents the components of provision for credit losses. Table 5 - (Provision) Benefit for Credit Losses Change Change (Dollars in millions) 3Q 2025 3Q 2024 $ % YTD 2025 YTD 2024 $ % Single-Family ($118) $99 ($217) NM ($968) ($336) ($632) (188) % Multifamily (57) 92 (149) NM (270) (48) (222) (463) (Provision) benefit for credit losses ($175) $191 ($366) NM ($1,238) ($384) ($854) (222) % Key Drivers: n 3Q 2025 vs. 3Q 2024 - The provision for credit losses for 3Q 2025 was primarily driven by a credit reserve build in Single-Family attributable to new acquisitions. The benefit for credit losses for 3Q 2024 was driven by a credit reserve

Management's Discussion and Analysis Consolidated Results of Operations

Management's Discussion and Analysis Consolidated Results of Operations Non-Interest Expense The table below presents the components of non-interest expense. Table 6 - Components of Non-Interest Expense Change Change (Dollars in millions) 3Q 2025 3Q 2024 $ % YTD 2025 YTD 2024 $ % Salaries and employee benefits ($423) ($424) $1 — % ($1,299) ($1,265) ($34) (3) % Professional services, technology, and occupancy (293) (289) (4) (1) (841) (829) (12) (1) Credit enhancement expense (489) (616) 127 21 (1,540) (1,801) 261 14 Legislative and regulatory assessments: Legislated guarantee fees expense (750) (732) (18) (2) (2,240) (2,184) (56) (3) Affordable housing funds allocation (53) (48) (5) (10) (134) (118) (16) (14) Regulatory assessment (36) (34) (2) (6) (107) (101) (6) (6) Total legislative and regulatory assessments (839) (814) (25) (3) (2,481) (2,403) (78) (3) Other expense (72) (40) (32) (80) (201) (141) (60) (43) Non-interest expense ($2,116) ($2,183) $67 3 % ($6,362) ($6,439) $77 1 % Key Drivers: n Credit enhancement expense l 3Q 2025 vs. 3Q 2024 and YTD 2025 vs. YTD 2024 - Decreased primarily due to a lower volume of outstanding CRT transactions in Single-Family and lower losses on STACR Trust note repurchases. Freddie Mac 3Q 2025 Form 10-Q 9

Management's Discussion and Analysis Consolidated Balance Sheets Analysis

Management's Discussion and Analysis Consolidated Balance Sheets Analysis CONSOLIDATED BALANCE SHEETS ANALYSIS The table below compares our summarized condensed consolidated balance sheets. Table 7 - Summarized Condensed Consolidated Balance Sheets Change (Dollars in millions) September 30, 2025 December 31, 2024 $ % Assets: Cash and cash equivalents $4,624 $5,534 ($910) (16) % Securities purchased under agreements to resell 86,334 100,118 (13,784) (14) Investment securities, at fair value 83,855 55,771 28,084 50 Mortgage loans held-for-sale 1,807 15,560 (13,753) (88) Mortgage loans held-for-investment 3,248,704 3,172,329 76,375 2 Accrued interest receivable 11,813 11,029 784 7 Deferred tax assets, net 4,727 5,018 (291) (6) Other assets 26,323 21,333 4,990 23 Total assets $3,468,187 $3,386,692 $81,495 2 % Liabilities and Equity Liabilities: Accrued interest payable $10,185 $9,822 $363 4 % Debt 3,379,073 3,304,949 74,124 2 Other liabilities 11,329 12,346 (1,017) (8) Total liabilities 3,400,587 3,327,117 73,470 2 Total equity 67,600 59,575 8,025 13 Total liabilities and equity $3,468,187 $3,386,692 $81,495 2 % Key Drivers: As of September 30, 2025 compared to December 31, 2024: n Securities purchased under agreements to resell decreased primarily due to a change in strategy to increase investments in U.S. Treasury securities. n Investment securities increased primarily due to the increase in purchases of U.S. Treasury securities. n Mortgage loans held-for-sale decreased primarily due to Multifamily designating a greater percentage of new mortgage loan purchases as held-for-investment to support increased issuances of fully guaranteed securitizations. n Mortgage loans held-for-investment increased primarily due to growth in our mortgage portfolio. n Debt increased primarily due to an increase in debt of consolidated trusts driven by growth in our mortgage portfolio. Freddie Mac 3Q 2025 Form 10-Q 10

Management's Discussion and Analysis Our Portfolios

Management's Discussion and Analysis Our Portfolios OUR PORTFOLIOS Mortgage Portfolio The table below presents the UPB of our mortgage portfolio by segment. Table 8 - Mortgage Portfolio September 30, 2025 December 31, 2024 (In millions) Single-Family Multifamily Total Single-Family Multifamily Total Mortgage loans held-for-investment: By consolidated trusts $3,050,565 $95,640 $3,146,205 $3,021,161 $70,701 $3,091,862 By Freddie Mac 51,266 31,202 82,468 42,050 16,715 58,765 Total mortgage loans held-for-investment 3,101,831 126,842 3,228,673 3,063,211 87,416 3,150,627 Mortgage loans held-for-sale 1,886 272 2,158 2,984 13,265 16,249 Total mortgage loans 3,103,717 127,114 3,230,831 3,066,195 100,681 3,166,876 Mortgage-related guarantees: Mortgage loans held by nonconsolidated trusts 30,219 342,483 372,702 30,038 355,108 385,146 Other mortgage-related guarantees 7,385 10,367 17,752 7,941 10,846 18,787 Total mortgage-related guarantees 37,604 352,850 390,454 37,979 365,954 403,933 Total mortgage portfolio $3,141,321 $479,964 $3,621,285 $3,104,174 $466,635 $3,570,809 Guaranteed mortgage-related securities: Issued by consolidated trusts $3,068,054 $95,787 $3,163,841 $3,033,506 $70,764 $3,104,270 Issued by nonconsolidated trusts 24,756 307,818 332,574 24,470 317,611 342,081 Total guaranteed mortgage-related securities $3,092,810 $403,605 $3,496,415 $3,057,976 $388,375 $3,446,351 Investments Portfolio Our investments portfolio consists of our mortgage-related investments portfolio and other investments portfolio. Mortgage-Related Investments Portfolio The Purchase Agreement limits the size of our mortgage-related investments portfolio to a maximum amount of $225 billion. The calculation of mortgage assets subject to the Purchase Agreement cap includes the UPB of mortgage assets and 10% of the notional value of interest-only securities. We are also subject to additional limitations on the size and composition of our mortgage-related investment

Management's Discussion and Analysis Our Portfolios

Management's Discussion and Analysis Our Portfolios The table below presents the details of our mortgage-related investments portfolio. Table 9 - Mortgage-Related Investments Portfolio September 30, 2025 December 31, 2024 (In millions) Single-Family Multifamily Total Single-Family Multifamily Total Unsecuritized mortgage loans (1) $53,152 $31,474 $84,626 $45,034 $29,980 $75,014 Mortgage-related securities: Investment securities 3,497 4,407 7,904 3,136 4,020 7,156 Debt of consolidated trusts 22,461 1,432 23,893 18,188 634 18,822 Total mortgage-related securities 25,958 5,839 31,797 21,324 4,654 25,978 Mortgage-related investments portfolio $79,110 $37,313 $116,423 $66,358 $34,634 $100,992 10% of notional amount of interest-only securities $22,399 $22,495 Mortgage-related investments portfolio for purposes of Purchase Agreement cap 138,822 123,487 (1) Includes $34.5 billion and $30.0 billion of single-family loans that we have purchased from securitization trusts as of September 30, 2025 and December 31, 2024, respectively. Other Investments Portfolio The table below presents the details of the carrying value of our other investments portfolio. Table 10 - Other Investments Portfolio September 30, 2025 December 31, 2024 (In millions) Liquidity and Contingency Operating Portfolio Custodial Account Other Total Other Investments Portfolio Liquidity

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