Quarterly earnings at the Federal Home Loan Mortgage Corp. improved, leaving the secondary lender with a tab from the Treasury Department for dividends. Secondary marketing production increased.
Freddie Mac earned $3.1 billion before income tax expense during the three months ended mid-year 2018, according to its second-quarter earnings report released Tuesday.
Income improved from $2.5 billion during the same-three months last year. Earnings fell short, though, of the first-three months of this year, when income came to $3.7 billion.
New single-family business activity was 362,000 loans for $84 billion, rising from 282,000 loans for $66 billion from the first quarter.
Freddie previously reported that it financed 324,000 single-family loans in the second-quarter 2018.
Refinances accounted for 31 percent of second-quarter 2018 single-family purchases and guarantees. Refinance share thinned from 42 percent the previous period.
New multifamily business activity was 190,600 loans $15.9 billion, climbing from 151,300 loans for $13 billion three months earlier and 173,400 loans for $14.1 billion a year earlier. Full first-half volume was 331,900 loans for $26.8 billion.
Freddie’s single-family credit guarantee portfolio was 10,800 loans for $1.855 trillion as of June 30, while its multifamily portfolio was $259.273 billion.
Freddie has paid out $112.4 billion in dividends to the Department of the Treasury, far more than the $71.6 billion in bailout funds provided following the company’s September 2008 collapse. A $1.6 billion dividend is planned in September.
