Mortgage Giant Surges to Higher Profit
May 9, 2013
A strengthening housing market helped Freddie Mac's profits climb from January through March. The government-sponsored enterprise (GSE) earned $4.6 billion in that time period.
For the past six quarters, Freddie Mac has turned a profit. Also, it has requested no additional federal aid from taxpayers.
About $170 billion in tax revenues have been spent to shore up Freddie Mac and Fannie Mae. The companies have repaid $62.2 billion of that so far.
Freddie and Fannie are required to turn over any quarterly profits to the government.
The improving housing market has led to fewer delinquent loans, which has helped Fannie and Freddie curb losses. The GSEs do not issue loans but purchase mortgages from banks and other lenders, and guarantee them against defaults. Fannie and Freddie own or guarantee about half of all U.S. mortgages.
Source: “Freddie Mac Posts $4.6 Billion Profit,” USA Today (May 8, 2013)
Updated: July 20, 2018