FEDERAL HOME LOAN MORTGAGE Business Summary

FEDERAL HOME LOAN MORTGAGE CORP (FMCC), commonly known as Freddie Mac, operates as a government-sponsored enterprise (GSE) that provides liquidity and stability to the U.S. housing market by purchasing, pooling, and securitizing residential mortgages. The company generates revenue primarily through guarantee fees (g-fees) earned for assuming credit risk on mortgage-backed securities (MBS) and net interest income from its retained mortgage-related investment portfolio. Its operations are divided into two core segments: Single-Family, which focuses on residential home loans, and Multifamily, which provides financing for rental housing through a strategy focused on fully guaranteed securitizations. In 2025, the corporation reported net revenues of $23.3 billion and a total mortgage portfolio of $3.7 trillion. Freddie Mac competes directly with Fannie Mae (FNMA), Ginnie Mae (GNMA), and private-label securitizers such as JPMorgan Chase and Wells Fargo. Within this competitive landscape, Freddie Mac maintains a duopolistic position alongside Fannie Mae, serving as a critical pillar of the U.S. housing finance system while operating under the conservatorship of the Federal Housing Finance Agency (FHFA). The corporation is led by Chief Executive Officer Kenny M. Smith, who assumed the role in December 2025; Smith brings nearly 40 years of financial services experience, including a 27-year tenure at Deloitte where he served as Vice Chairman and U.S. Financial Services Industry Leader. He is supported by President Michael Hutchins, a veteran executive who oversees the company’s business lines, and Executive Vice President and CFO James Whitlinger, a 10-year veteran of the firm who was appointed to the permanent CFO role in January 2025. The company’s strategic direction is overseen by a Board of Directors currently chaired by Bill Pulte, with regulatory oversight provided by the FHFA. Founded by the Emergency Home Finance Act of 1970 to expand the secondary mortgage market, the current leadership team is focused on technological modernization to streamline loan originations and managing the company's $70.4 billion net worth as it navigates the ongoing requirements of government conservatorship.