The company saw strong quarterly earnings primarily driven by guarantee-fee income
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Freddie Mac has reported net income of $2.71 billion for the third quarter, an increase from the $2.50 billion net income for the second quarter but down from the $4.67 billion net income in the year-ago period.
The company also reported comprehensive income of $2.56 billion for the third quarter, compared to comprehensive income of $2.44 billion for the second quarter and $4.65 billion the same quarter in 2017.
Freddie Mac said its third-quarter comprehensive income reflected continued strong earnings primarily driven by guarantee-fee income from its single-family and multifamily businesses. Earnings from its capital markets business have also remained relatively stable.
“The third quarter marked another very good quarter for Freddie Mac, with comprehensive income of $2.6 billion. This continues our growing quarterly track record of producing stable and strong earnings, all while responsibly supporting the company’s mission and reducing taxpayer exposure to our risks. As we look back on our ten years in conservatorship, these results make clear that Freddie Mac is a transformed company that plays a key role in reforming and improving America’s housing finance system,” CEO Donald Layton said.
Freddie Mac also reported that it has provided approximately $286 billion in liquidity to the mortgage market year-to-date. The amount has funded more than 992,000 single-family homes and nearly 551,000 multifamily rental units. First-time homebuyers represented more than 46% of new purchase loans, while 94% of the eligible multifamily rental units financed were affordable to families earning at or below 120% of area median incomes.
The company also disclosed a $2.6 billion dividend requirement to the Treasury in December. The amount is based on its net worth amount at Sept. 30 of $5.6 billion less the applicable $3 billion capital reserve amount.
