Federal Home Loan Mortgage Corporation — Cyborg Score 6/10

Solid
Mortgage Finance / Housing Finance

Strategic Profile

The company operates through two business segments: single-family and multifamily. Freddie Mac increased its 2026 multifamily loan purchase cap to $88 billion, reflecting strategic response to market projections. The company maintains robust risk management by securitizing approximately 90% of its multifamily loans, reducing taxpayer exposure.

Cyborg Score Rationale

Freddie Mac's net worth rose to $70.4 billion, up 18% year-over-year with net income of $10.7 billion in 2025. The company exhibits a strong net margin of 46.89%, indicating efficient cost management and profitability. However, 3-year earnings growth has declined 76.3%, financial strength is rated poor due to high leverage, and the stock exhibits high volatility with a beta of 2.24.

Top Insights

  • Third consecutive year of net and comprehensive income above $10 billion and revenue above $21 billion in 2025
  • Single-family segment's new business activity surged to $118 billion, driven by refinancing, with portfolio expanding to $3.16 trillion
  • Multifamily segment supported over 577,000 affordable rental units in 2025 with $77.6 billion production volume, a 17% increase over 2024
  • While capital-building has progressed since net worth sweep ended in 2019, significant dilution remains from government warrants and senior preferred stock

Named Competitors

  • Fannie Mae — Government-sponsored mortgage buyer and securitizer

Recent Developments

  • (February 2026) FHFA re-elected all current Freddie Mac directors, reinforcing governance continuity under conservatorship
  • (February 2026) Reported Q4 and full-year 2025 results with net worth at $70.4B and annual net income of $10.7B
  • (January 2026) Increased 2026 multifamily loan purchase cap to $88 billion, up from $73 billion in 2025

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