Home >> News >> Secondary Market >> Freddie Mac Reports $5B Profit in Q2
Print This Post Print This Post

Freddie Mac Reports $5B Profit in Q2

""Freddie Mac"":http://www.freddiemac.com/ had a banner second quarter, pulling in its second-largest profit in company history, the enterprise reported Wednesday.


According to Freddie Mac's quarterly earnings report, Q2 2013 net income totaled $5.0 billion, up about $407 million over the first quarter. It was the seventh straight quarter of profit for the company.


Comprehensive income was $4.4 billion compared to Q1's $7.0 billion.

The GSE also announced its dividend obligation to Treasury will be $4.4 billion in September, bringing its aggregate cash dividends paid to a total of $41 billion. Because dividend payments don't reduce prior draws, Treasury still maintains liquidation preference on $72.3 billion of the company's preferred stock following its bailout in the economic crash.

Credit quality also improved, with post-2008 loans representing 70 percent of Freddie Mac's single-family credit guarantee portfolio in Q2 (20 percent of the portfolio were relief refinance loans).

The earnings report comes at a pivotal time in the company's history, with industry representatives, lawmakers, and even ""President Obama"":https://themreport.com/articles/obama-fields-housing-questions-in-web-chat-2013-08-07 calling for a plan to wind down the GSEs and reduce the government's role in the mortgage market.


Check Also

Growing the Role of Non-Bank Lenders

Regulators are considering allowing additional funds to expand the role of nonbanks like REITs as the nature of the big banks in mortgag lending shifts.

Subscribe to MDaily

MReport is here for you to stay on top of important developments in the mortgage marketplace. To begin receiving each day’s top news, market information, and breaking news updates, absolutely free of cost, simply enter your email address below.