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.
Original headline: Mortgage giant Freddie Mac earns $1.4B in 2Q
Most Popular Stories
- Government: 500 Million Records Stolen in 12 Months
- Mom Makes Toys R Us Pull 'Breaking Bad' Dolls
- More Hispanic Voters May Not Mean More Clout
- Pistorius Gets 5-year Sentence in Shooting Death
- Apple Pay Debuts With Few Issues
- Cuba Deploys More Medicos in Ebola Fight
- 2016 Camaro Shrinks, Moves to Caddy Platform
- Volatility No Reason to Bail on Stock Market
- Samsung Phones Cleared For U.S. Government Use
- Disney's Animated Feature 'Moana' Slated for 2016 Release