The company disclosed a $1.6 billion dividend requirement to the Treasury in September
Freddie Mac has reported net income of $2.50 billion for the second quarter amid strong business fundamentals in new origination volumes and credit quality.
The second-quarter net income is an increase from the $1.66 billion net income in the year-ago period but a decline from the first-quarter net income of $2.93 billion.
Second-quarter comprehensive income was $2.44 billion, up year-over-year from $1.99 billion and quarter-over-quarter from $2.15 billion. The improvement reflects strong business revenues and a $334 million pretax, or $264 million after-tax, favorable litigation judgment.
Freddie Mac also reported new single-family originations of $84 billion. During the quarter, the company posted a 29% year-over-year increase in purchase volume. Meanwhile, refinance volume dropped 7%. New multifamily originations totaled almost $16 billion, driving a 13% year-over-year increase.
The serious delinquency rate for single-family homes fell to 0.82%, the lowest level since early 2008. The delinquency rate for multifamily was at 0.01%, remaining at historical lows.
Freddie Mac also disclosed a $1.6 billion dividend requirement to the Treasury in September. The amount is based on its net worth amount at June 30 of $4.6 billion less the applicable capital reserve amount.
“Freddie Mac’s transformation continued in the second quarter, with good business results and similarly good financial performance,” CEO Donald Layton said. “In business operations, our guarantee book grew significantly, credit quality was high, and we are generating a consistent stream of new innovations for our customers. On the financial side, we produced strong earnings with a growing track record of quarterly stability. These together provide the foundation necessary so Freddie Mac can effectively deliver on all aspects of its mission and, more broadly, improve America's housing finance system.”
