Fannie Mae and Freddie Mac had diverging results for the third quarter, the GSEs reported today.
Fannie Mae earned $3.9 billion for the third quarter of 2025, compared with $3.3 billion for the second quarter of 2025. Net revenues remained stable; the increase in net income from the previous quarter was driven primarily by reductions in the provision for credit losses and non-interest expense, partially offset by lower fair value gains. The company’s net worth increased to $105.5 billion as of September 30.
Freddie Mac reported net income of $2.8 billion for the third quarter of 2025, down 11% from the third quarter of 2024, primarily driven by a credit reserve build in the current period compared to a credit reserve release in the prior year period.
Net revenues were $5.7 billion for the third quarter, down 2% year-over-year, primarily driven by lower non-interest income, partially offset by higher net interest income. Net interest income for the third quarter was $5.5 billion, up 9% year-over-year, primarily driven by continued mortgage portfolio growth and lower funding costs, partially offset by lower yields on short-term investments.
Non-interest income was $0.3 billion, down 66% year-over-year, primarily driven by Single-Family Provision for credit losses was $0.2 billion for the third quarter of 2025, primarily driven by a credit reserve build in Single-Family attributable to new acquisitions. The benefit for credit losses of $0.2 billion for the third quarter of 2024 was driven by a credit reserve release in Single-Family as a result of lower mortgage interest rates and a credit reserve release in Multifamily due to enhancements in the credit estimation process.
“Fannie Mae is operating with greater business focus than ever. Trimming $173 million in administrative expenses since the first quarter of 2025, we have grown our net worth to over $105 billion,” said William J. Pulte, Fannie Mae Chairman, in a prepared statement. “Fannie Mae’s strong leadership team continues to perform at a high level, with earnings up $542 million from the second quarter to $3.9 billion this quarter while reliably meeting the housing needs of borrowers and renters across the United States.”
The outlook for Fannie Mae is promising looking forward, according to Timothy D’Agostino, equity research analyst for B. Riley Securities. “We forecast EPS, before senior preferred adjustments, of $2.50, $2.70, and $2.85 for 2025, 2026, and 2027, respectively. The key drivers to our forecast include portfolio growth of –0.8%, 3.5%, and 3.8% in 2025, 2026, and 2027, respectively, and delinquency rates remaining stable at about 0.5% in 2025, 2026, and 2027.” Freddie Mac cited the following highlights:
- New business activity increased year-over-year, primarily driven by a larger multifamily originations market, coupled with the execution of Multifamily’s competitive strategies. Sixty-seven percent of the eligible multifamily rental units financed in the third quarter of 2025 were affordable to low-income families.
- The Multifamily delinquency rate increased to 0.51% at September 30, 2025, from 0.39% at September 30, 2024, primarily driven by an increase in delinquent floating rate loans and small balance loans.
