By Mark R. Long

Federal Home Loan Mortgage's fourth-quarter revenue and profit rose, boosted by higher interest and non-interest income.

The government-backed housing-finance company known as Freddie Mac reported fourth-quarter net income of $3.2 billion, up from $2.9 billion a year earlier. On a per-share basis, Freddie Mac swung to a net profit of a penny from a loss of 5 cents. Revenue rose 17.8% to $6.3 billion, with net interest income rising 5.9% to $5.1 billion.

The Maclean, Va., company said the gains were partially offset by a $100 million provision for credit losses compared with a $500 million benefit for these losses in the year-earlier quarter.

Freddie Mac said new business activity rose to $100 billion from $73 billion a year before as volumes of home purchases and refinancings rose. The serious-delinquency rate at the quarter's end rose to 0.59% from 0.54% as of Sept. 30.

This was the first earnings report of the second Trump administration. Scott Turner, the new head of the Department of Housing and Urban Development, earlier this month told The Wall Street Journal that HUD would work with the Treasury Department and Congress on privatizing Freddie and Fanny Mae. This effort to release the companies from government control also would involve the Federal Housing Finance Agency, which oversees Fannie and Freddie.

Shares of Freddie Mac edged 0.5% higher to $6.38 in premarket trading. The shares have nearly quadrupled since Trump's election.

Hedge fund managers such as Bill Ackman have built big stakes in Fannie and Freddie, betting the firms would be privatized.

Write to Mark R. Long at mark.long@wsj.com

(END) Dow Jones Newswires

February 13, 2025 08:46 ET (13:46 GMT)

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