Freddie Mac Posts Q3 Profits
Freddie Mac ended the third quarter with $4.7 billion in net income, a substantial upswing from the $1.7 billion reported in the second quarter. This was attributed to a $2.9 billion after-tax benefit from “mortgage-related securities litigation settlement and continued strong underlying business fundamentals.”
The government-sponsored enterprise (GSE) also reported third quarter comprehensive income of $4.7 billion, more than double the $2 billion level for the second quarter. Freddie Mac’s non-interest income in the third quarter was $5.47 billion, a strong spike from the $777 million recorded one year earlier.
“We clearly had a strong quarter,” said Donald H. Layton, Freddie Mac’s Chief Executive Officer. “Even excluding the large legal settlement, Freddie Mac made a profit of $1.8 billion. This reflects the growing strength of our business model as well as an improving quality of execution. And we’re doing this while increasingly protecting taxpayers through credit risk transfer, transacting greater volumes with more offerings than ever before. We recently reached a milestone of $1 trillion of mortgages with significant credit risk transferred. “This performance is evidence of good progress toward our goal to be one of the best-run financial institutions in the country, while successfully delivering on our public policy mission.”