“We had a solid quarter, earning $2 billion with no significant impact on our earnings or balance sheet from the recent banking industry disruption. Solid earnings also increased our net worth by more than $2 billion to $39.1 billion,” Freddie Mac CEO Michael DeVito said in the GSE’s earnings call. “Our performance during the quarter was partly the result of steps we’ve taken these past 15 years to focus on the safety and soundness of our enterprise, particularly with respect to credit risk.”
At the end of the quarter, its total mortgage portfolio increased 4% year over year to $3.4 trillion. Meanwhile, new single-family business has declined from $207 billion annually to just $59 billion as home purchase and refinance activity slowed due to higher mortgage rates.
Its multifamily segment saw a 60% year-over-year slump in new business activity, down to $6 billion, as higher rates and market turmoil weakened multifamily demand.
“Freddie Mac’s solid performance in the first quarter helped promote sustainable homeownership and rental opportunities across the nation… but there’s a lot more work to be done,” DeVito said. “In an uncertain economic environment, we remain focused on our mission and will continue to serve as a stabilizing force for the housing finance system.”
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