Fannie Mae vs Freddie Mac: Revenue, Profit and Business Model
Fannie Mae had $29.4B of annual revenue in FY2024 and $17.4B of net income. Freddie Mac had $22.1B of annual revenue in FY2024 and $11.2B of net income.
Latest financial snapshot
Fannie Mae
- Latest annual revenue
- $29.4B (FY2024)
- Net income
- $17.4B
- Net margin
- 59.2%
- Revenue growth
- +2.6% a year, FY2015–FY2024
Freddie Mac
- Latest annual revenue
- $22.1B (FY2024)
- Net income
- $11.2B
- Net margin
- 50.7%
- Revenue growth
- +4.1% a year, FY2015–FY2024
Financial summary
Fannie Mae
Fannie Mae's financial results reflect the extraordinary cash-generating power of its $4.1 trillion guaranty book. In fiscal year 2024, Fannie Mae reported total net revenue of $28.50 billion (driven primarily by $25.2 billion in net interest income and guaranty fees) and net income of $17.40 billion. Under the terms of the 2019 letter agreement modifying the Senior Preferred Stock Purchase Agreement with the US Treasury, Fannie Mae is permitted to retain all quarterly earnings rather than sweep them to the US Treasury, allowing the enterprise to build its net worth toward capital requirements established under the Enterprise Regulatory Capital Framework (ERCF). By the end of 2024, Fannie Mae's retained net worth buffer approached $100 billion, providing an enormous cushion of private loss-absorbing capital to shield US taxpayers from potential housing downturns.
Freddie Mac
Freddie Mac's financial performance demonstrates the immense cash generation of its $3.7 trillion guarantee platform. In fiscal year 2024, Freddie Mac reported consolidated net revenue of $21.20 billion (driven by $18.5 billion in net interest income and guaranty fees) and net income of $10.80 billion. Under the modified Senior Preferred Stock Purchase Agreement with the US Treasury, Freddie Mac retains all quarterly earnings to build private loss-absorbing capital under the FHFA Enterprise Regulatory Capital Framework (ERCF). By the end of 2024, Freddie Mac's retained net worth surplus exceeded $55 billion, providing an enormous equity cushion to absorb credit losses. Supported by prime single-family borrower credit profiles (average FICO score of 750+ on new purchases) and conservative loan-to-value ratios, Freddie Mac maintains exceptionally low serious delinquency rates below 0.60%.
Revenue and profit by year
Fannie Mae
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2024 | $29.4B | $17.4B | 59.2% | +1.9% | |
| FY2023 | $28.8B | $17.4B | 60.4% | -2.8% | |
| FY2022 | $29.7B | $12.9B | 43.6% | -0.8% | |
| FY2021 | $29.9B | $22.2B | 74.2% | +18.3% | |
| FY2020 | $25.3B | $11.8B | 46.7% | +10.5% | |
| FY2019 | $22.9B | $14.2B | 61.9% | -4.5% | |
| FY2018 | $23.9B | $16B | 66.7% | +3.9% | |
| FY2017 | $23B | $2.5B | 10.7% | +3.3% | |
| FY2016 | $22.3B | $12.3B | 55.2% | -4.2% | |
| FY2015 | $23.3B | $11B | 47.1% | — |
Freddie Mac
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2024 | $22.1B | $11.2B | 50.7% | +4.2% | |
| FY2023 | $21.2B | $10.5B | 49.7% | -0.6% | |
| FY2022 | $21.3B | $9.3B | 43.7% | -3.1% | |
| FY2021 | $22B | $12.1B | 54.9% | +31.6% | |
| FY2020 | $16.7B | $7.3B | 43.7% | +8.8% | |
| FY2019 | $15.4B | $7.2B | 46.9% | -1.0% | |
| FY2018 | $15.6B | $9.2B | 59.4% | -2.0% | |
| FY2017 | $15.9B | $5.6B | 35.5% | +5.9% | |
| FY2016 | $15B | $7.8B | 52.2% | -2.8% | |
| FY2015 | $15.4B | $6.4B | 41.4% | — |
Where the revenue comes from
Fannie Mae
- Single-Family Guaranty Fees72.0%
Contractual ongoing guaranty fees paid by mortgage lenders to guarantee timely principal and interest on 30-year and 15-year residential mortgages.
- Multifamily Guaranty Fees15.0%
Credit enhancement and Delegated Underwriting and Servicing (DUS) revenue sharing on workforce, affordable, and student apartment properties.
- Retained Mortgage Portfolio & Investment Float13.0%
Net interest income earned on retained mortgage loans, liquidity portfolios, Treasury securities, and agency debt.
Freddie Mac
- Single-Family Guarantee Fees74.0%
Contractual periodic guarantee fees earned on securitizing and backstopping prime 1-to-4 family conventional conforming residential mortgages.
- Multifamily Segment Guarantees & K-Deals16.0%
Structured K-Deal credit risk transfers, risk-sharing securitizations, and guarantee fees on multi-family rental housing debt.
- Retained Investments & Treasury Float10.0%
Interest margins earned across retained MBS holdings, liquid cash equivalents, and short-term debt securities.
Business model and strategy
Fannie Mae
How it makes money
Fannie Mae operates a massive, highly profitable secondary mortgage market securitization and credit guaranty business model divided into two principal reporting segments: (1) Single-Family Business (~88% of net revenue), which purchases conventional conforming single-family residential mortgages from primary lenders, securitizes them into Uniform Mortgage-Backed Securities (UMBS), and guarantees the timely payment o…
Growth strategy
Fannie Mae is pursuing three strategic growth pillars under CEO Priscilla Almodovar: (1) Modernizing the mortgage closing and appraisal process through Desktop Underwriter (DU), expanding value acceptance (appraisal waivers) and automated property inspection data to reduce homebuyer closing costs;
Competitive advantage
Fannie Mae's competitive moat is protected by an extraordinary combination of statutory privileges, ubiquity, and network effects. Its congressional charter establishes an implied government backstop that enables Fannie Mae agency MBS to trade with near-Treasury liquidity and ultra-tight spreads globally.
Freddie Mac
How it makes money
Freddie Mac operates a high-capacity, low-overhead secondary mortgage market securitization and credit guaranty business model divided into two core operating segments: (1) Single-Family Business (~86% of net revenue), which purchases conventional conforming single-family home loans from thousands of primary lenders, packages them into Uniform Mortgage-Backed Securities (UMBS), and guarantees the timely payment of pr…
Growth strategy
Freddie Mac is pursuing three strategic growth pillars under CEO Diana Reid: (1) Expanding automated digital appraisal tools and value acceptance through Loan Product Advisor (LPA), eliminating appraisal fees and cutting mortgage closing timelines for American families;
Competitive advantage
Freddie Mac's primary competitive advantage is its federal charter as a government-sponsored enterprise (GSE) and its vital duopoly status alongside Fannie Mae. Backed by the implicit and explicit credit support of the U.S. government—formalized through the U.S.
Questions about Fannie Mae vs Freddie Mac
Which company has higher revenue — Fannie Mae or Freddie Mac?
Fannie Mae had $29.4B (FY2024), while Freddie Mac had $22.1B (FY2024). By latest annual revenue, Fannie Mae is the larger business, with Freddie Mac showing a smaller revenue base.
What is the market cap of Fannie Mae vs Freddie Mac?
Freddie Mac has a market capitalisation of $3.2B. A public market cap figure for Fannie Mae was not available (it may be privately held).
How does revenue per employee compare for Fannie Mae and Freddie Mac?
Fannie Mae has $3.97M / employee in revenue per employee, while Freddie Mac has $2.76M / employee. Headcounts may use different dates, so the ratio alone does not establish which business operates more efficiently.
How do Fannie Mae and Freddie Mac make money?
Fannie Mae and Freddie Mac generate revenue in fundamentally different ways. Fannie Mae: Fannie Mae operates a massive, highly profitable secondary mortgage market securitization and credit guaranty business model divided into two principal reporting segments: (1) Single-Family Business (~88% of net revenue), which purchases conventional conforming single-family residential mortgages from primary lenders, securitizes them into Uniform Mortgage-Backed Securities (UMBS), and guarantees the timely payment of principal and interest to institutional investors worldwide in exchange for a recurring guaranty fee (typically averaging 45 to 55 basis points on the unpaid principal balance); and (2) Multifamily Business (~12% of net revenue), which finances affordable and market-rate apartment communities through its Delegated Underwriting and Servicing (DUS) lender network, sharing credit loss risk with approved commercial lenders. Freddie Mac: Freddie Mac operates a high-capacity, low-overhead secondary mortgage market securitization and credit guaranty business model divided into two core operating segments: (1) Single-Family Business (~86% of net revenue), which purchases conventional conforming single-family home loans from thousands of primary lenders, packages them into Uniform Mortgage-Backed Securities (UMBS), and guarantees the timely payment of principal and interest to institutional investors in exchange for a recurring guaranty fee (typically averaging 45 to 55 basis points annually on the outstanding principal balance); and (2) Multifamily Business (~14% of net revenue), which finances apartment communities and workforce rental housing primarily through its proprietary K-Deal securitization platform, where Freddie Mac securitizes multifamily loans and sells subordinate credit loss tranches directly to private institutional investors without taking first-loss risk.
Is Fannie Mae bigger than Freddie Mac?
By last reported revenue, Fannie Mae ($29.4B (FY2024)) is the larger company compared to Freddie Mac ($22.1B (FY2024)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Fannie Mae vs Freddie Mac overview