Freddie Mac Swings to $1.2B Profit in Q2

It did not request financial aid from the government last quarter

   

The Federal Home Loan Mortgage Corporation (PINK:FMCC), better known as Freddie Mac, announced on Tuesday that it earned $1.2 billion during the second-quarter, marking its first quarterly profit in more than a year, and reversing the $3.76 billion loss it recorded in the same quarter last year.

Adjusted EPS for the quarter was 37 cents. Freddie Mac lost $1.16 a share in the same period of 2011, the Associated Press noted.

homeForSale 200x200 Freddie Mac Swings to $1.2B Profit in Q2
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Freddie Mac also said that it did not require any financial support from the government during the quarter. In the prior quarter, it received $19 million in federal assistance.

That compares to $7.6 billion in financial aid given to Freddie Mac in 2011, and $13 billion in 2010.

Since the collapse of the housing market and credit crisis, the U.S. government has spent more than $170 billion to keep Freddie Mac and Fannie Mae, the government’s other mortgage entity from collapsing.

The government estimates that Freddie Mac and Fannie Mae may need additional support of $200 billion in the next two years.

During the quarter, Freddie Mac paid $1.8 billion in dividends to the federal government.


Article printed from InvestorPlace Media, http://investorplace.com/2012/08/freddie-mac-swings-to-1-2b-profit-in-q2/.

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