Freddie Mac reported net income of $3 billion for the second quarter of this year, up from a reported net income of $577 million for the first quarter. Freddie Mac also reports comprehensive income of $2.9 billion for the second quarter, up from $1.8 billion for the first quarter. As a result, Freddie Mac will not require an additional draw from the U.S. Department of the Treasury.
According to Freddie Mac, the increase in net income for the second quarter primarily reflects a decline in the provision for credit losses due to ‘positive trends in the housing market,’ while its increase in comprehensive income for the second quarter primarily reflects ‘higher net income for the second quarter, partially offset by higher fair value losses on non-agency available-for-sale securities that resulted from spread widening.’
‘Our work continued during this quarter, as we helped over 350,000 families take advantage of historically low interest rates and an additional 40,000 avoid foreclosure,’ says Freddie Mac CEO Donald H. Layton.