Both Fannie Mae and Freddie Mac have reported their earnings for the first quarter of 2025, marking gains in net income for both government-sponsored enterprises (GSEs).
For Q1 of 2025, and as of March 31, 2025, Fannie Mae reported a net income of $3.7 billion, as the GSE’s net worth reached $98.3 billion.
“Our current focus at Fannie Mae is on operational efficiency and ensuring that Fannie Mae is a world-class operator,” said William J. Pulte, Director of the Federal Housing Finance Agency (FHFA) and Chairman of Fannie Mae’s Board of Directors. “While assets are significant, there remains great opportunity to trim fat, turn the business around, generate more earnings, and do so all while ensuring safety and soundness. A profitable Fannie Mae, one with a strong balance sheet and strong capital, focused on delighting customers, means a safe and sound U.S. mortgage market. The operational improvements we are driving at Fannie Mae will turn around the company and will make Fannie Mae a great American icon once again.”
In addition, Fannie Mae provided $76 billion in liquidity in the first quarter of 2025, which enabled the financing of approximately 287,000 U.S. home purchases, refinancings, and rental units. Fannie Mae acquired approximately 144,000 single-family purchase loans, of which approximately half were for first-time homebuyers, and approximately 50,000 single-family refinance loans during Q1. Ion serving the multifamily market, Fannie Mae financed approximately 93,000 units of multifamily rental housing in Q1 of 2025; a significant majority were affordable to households earning at or below 120% of area median income, providing support for both workforce and affordable housing.
“Fannie Mae earned $3.7 billion in net income in the first quarter of 2025, primarily driven by guaranty fees,” added Priscilla Almodovar, President and CEO of Fannie Mae. “We grew our net worth to $98 billion, continued to build our regulatory capital, and delivered on our mission. This quarter, we provided $76 billion of liquidity to America’s housing market, helping 287,000 households buy, refinance, or rent a home. This included 74,000 first-time homebuyers. We remain focused on supporting housing affordability and stability and being a reliable source of liquidity.”
Freddie Mac reported a net income of $2.8 billion for the first quarter of 2025, up 1% year-over-year, providing shelter to approximately 313,000 households in Q1 2025. Net revenues of $5.9 billion, an increase of 2% year-over-year, were driven primarily by higher net interest income, partially offset by lower non-interest income.
Freddie Mac reported its overall mortgage portfolio at $3.1 trillion, up 2% year-over-year.
Freddie Mac financed 224,000 mortgages, with 51% of eligible loans affordable to low- to moderate-income families. First-time homebuyers represented 52% of Freddie Mac’s new single-family home purchase loans. The GSE financed approximately 89,000 rental units, with 92% of eligible units affordable to low- to moderate-income families.
“Freddie Mac earned $2.8 billion of net income in the first quarter, driving the company’s net worth to $62 billion,” noted Pulte, who also serves as Chair of the Board of Directors for Freddie Mac. “The company helped more than 313,000 of America’s families buy, rent, or refinance a home, with 52% of single-family loan purchases supporting first-time homebuyers and 92% of rental units financed affordable to middle-income renters, such as teachers, police officers and firefighters who are the backbone of our communities. FHFA is working with Freddie Mac to streamline its operations by stripping away unnecessary bureaucracy and eliminating non-essential activities. This work has set the stage for cost savings, supporting mortgage affordability while building an even safer, sounder Freddie Mac, one that better serves its mission and the American people.”
GSEs Take Cost-Cutting Approach
As Pulte mentions for both Fannie Mae and Freddie Mac, the Trump administration has taken action to reduce the workforce of each GSE. These executive cuts come as the Trump administration considers privatizing Fannie Mae and Freddie Mac, both entities which have been under conservatorship since September 2008.
In April, it was reported that the FHFA and Fannie Mae dismissed more than 100 employees from the GSE after they were caught engaging in unethical conduct, including acts of fraud. News of the dismissals came after reports Fannie Mae had laid off 700 employees in the U.S. the previous week, citing ethical violations stemming from allegations of misuse of the company’s Matching Grants Program.
“In President Trump’s housing market, there is no room for fraud, mortgage fraud, or any other deceitful act that can jeopardize the safety and soundness of the housing industry,” said Pulte of the dismissals. “Anyone who commits fraud against Fannie Mae does so against the American people.”
On the Freddie Mac front, in late March, CEO Diana Reid, Head of Human Resources Dionne Wallace Oakley, and EVP of Corporate Strategy and External Affairs Craig Phillips were let go. Mike Hutchins, current President of Freddie Mac, was named Interim CEO after Reid’s dismissal. Hutchins is a member of Freddie Mac’s Board of Directors and the company’s Senior Operating Committee.
Executive shakeups at both GSEs may be settling down, as in mid-April, Pulte took to the social media platform X to state that leadership changes atop Fannie Mae and Freddie Mac will end.
“To stay competitive in any business, change is good, but as of today, we do not see more executive changes (other than preannounced or already agreed upon departures) because we will now focus on growth, eliminating fraud, safety and soundness, and making homes affordable again!” said Pulte via Twitter.
In a follow-up post, Pulte continued, “We do not foresee any more executive leadership changes at Fannie Mae & Freddie Mac. Our focus will now turn to growth, making homes more affordable, rooting out mortgage fraud & providing great career opportunity to those who make Fannie & Freddie great American Icons, again!”
Click here for a full report on Fannie Mae’s financial results from Q1 of 2025, and click here for Freddie Mac’s financial results from Q1 of 2025.
