News Column

Freddie Mac Earns $1.4 Billion in Q2

August 7, 2014

Associated Press

Freddie Mac headquarters (AP)
Freddie Mac headquarters (AP)

WASHINGTON (AP) Mortgage giant Freddie Mac posted net income of $1.4 billion for the April-through-June period, aided by a strengthening housing market. The government-controlled company has turned a profit in each of the past 11 quarters.

Freddie's second-quarter profit reported Thursday declined 72 percent from $5 billion in the same period of 2013. Freddie said its earnings can fluctuate widely due to changes in the value of its holdings of derivatives, investments used to hedge against swings in interest rates. That can create "mismatches" in quarterly earnings that may not reflect the economics of its business, Freddie said.

McLean, Virginia-based Freddie said it will pay a dividend of $1.9 billion to the U.S. Treasury next month. Freddie will have paid $86.3 billion in dividends, exceeding its government bailout of $71.3 billion.

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Original headline: Mortgage giant Freddie Mac earns $1.4B in 2Q


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Source: Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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