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""Freddie Mac"":http://www.freddiemac.com/ pulled in a net profit of $11 billion for 2012, a significant increase from the annual net loss of $5.3 billion in 2011, the GSE ""reported"":http://www.freddiemac.com/investors/er/pdf/2012er-4q12_release.pdf Thursday.
[IMAGE]In addition, Freddie Mac's fourth quarter net income climbed to $4.5 billion, up from $2.9 billion in the third quarter of last year.
According to the company's earnings release, the increase reflects a decrease in delinquent single-family loans, improved national home prices, and a higher income tax benefit.
As of the end of December 2012, the GSE's single-family serious delinquency rate was 3.25 percent down from 3.58 percent at the end of December in 2011.
[COLUMN_BREAK]""It's clear from our earnings that the housing market has turned a corner and that our work to minimize legacy losses and build a strong new book of business is paying off,"" said Freddie Mac CEO Donald H. Layton in a release.
Once again, the GSE also did not require a draw from Treasury and paid a $1.8 billion quarterly dividend to Treasury. Thus far, Freddie Mac reported it has paid $23.8 billion in cash dividends to Treasury, which represents 33 percent of its cumulative draws.
As for contributions to the housing market, Layton said, ""In 2012, we helped 2.5 million families to buy, refinance or rent a home and another 170,000 to avoid foreclosure--bringing the total to nearly 10 million since the start of the housing crisis. We continue to work with our regulator, our customers and the industry to support the housing market and build a stronger mortgage finance system for the nation.""
In 2012, Freddie Mac's refinance purchases totaled $351 billion, accounting for 82 percent of the company's single-family mortgage purchase volume for last year. The GSE also reported it purchased 434,000 Home Affordable Refinance Program (HARP) loans totaling $86.9 billion, more than doubling the purchase amount in 2011. Freddie Mac also completed 70,000 loan modifications last year.
