Freddie Mac Records Second Largest Profit in Its History

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Is it really a god idea to give Freddie Mac away? Please read the article below and let me know what you think.

The FHA Condos Approval Company, Inc.

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Freddie Mac 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 calling for a plan to wind down the GSEs and reduce the government’s role in the mortgage market.

To read the original article – please use the link below.

Freddie Mac Profit

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