by Christopher Freeburn | August 7, 2012 1:28 pm
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.
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.
Source URL: http://investorplace.com/2012/08/freddie-mac-swings-to-1-2b-profit-in-q2/
Short URL: http://invstplc.com/1fEUL09
Copyright ©2016 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.