Freddie Mac's strongest quarter in years: what drove the 61% surge

Fannie Mae and Freddie Mac reported August multifamily mortgage delinquencies. Freddie Mac's rate hit a 20-year high at 0.64%, up from 0.6% in July. Fannie Mae's rate fell to 0.57% from 0.62% in July. Rising delinquencies may reflect slowing rent growth and increased cost of living, according to Multifamily Dive and Urban Institute research.

FHFA director Bill Pulte directed Fannie Mae (FNMA) to align its servicing policy with Freddie Mac (FMCC), allowing servicers to proactively contact borrowers for mortgage insurance cancellation. FNMA shares dropped 9% and FMCC nearly 8% following the directive. Higher rates may lead to homeowner sell-offs or refinances, but a 2008-like crisis is not expected.

Federal Housing Finance Agency Director Bill Pulte ordered Fannie Mae and Freddie Mac to allow all lenders to use VantageScore, a move aimed at increasing competition in the credit scoring market. FICO, which has long dominated the market, saw its shares fall in April after the initial announcement. Pulte also criticized credit bureaus Equifax, Experian, and TransUnion for overcharging consumers.

Favorable shifts in loan loss reserves helped fuel a jump in Freddie Mac's net income to a high not seen in years as it nearly matched its opponent in efforts to purchase home mortgages from private companies. Processing Content Freddie generated $3.8 billion worth of earnings that were up 60% from the same period a year earlier and compared to $3.6 billion in the first quarter. It also generated $6 billion in net revenues, beating S&P Capital IQ's consensus estimate of $5.4 billion.

FEDERAL HOME LOAN MORTGAGE CORP (FMCC) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Freddie Mac Reports Net Income of $3.8 Billion for Second Quarter 2026 Making Home Possible for 439,000 Households in Second Quarter 2026 • Financed 306,000 mortgages, with 54% of eligible loans affordable to low- to moderate-income families. • First-time homebuyers

BTIG downgraded Rocket, Fannie Mae and Freddie Mac to neutral from buy in Doug Harter’s second-half outlook, citing a tougher-than-expected rate environment and reduced visibility on “normalized” earnings. For Fannie/Freddie, BTIG said uncertainty around conservatorship timing limits near-term upside; it valued Fannie at $26 and Freddie at $32 in a positive case, but $4 each if preferreds convert to common. BTIG kept UWM at buy but cut its price target to $4 from $10 amid leverage/dividend conce