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Freddie Swings to Profit, Annual Business Up

Quarterly income at the Federal Home Loan Mortgage Corp. moved out of the red and into the black as both residential and multifamily annual business volume rose.

New single-family funding volume was $76 billion in the fourth quarter, declining from the prior quarter’s $94 billion but more than the year-earlier quarter’s $71 billion.

The results, along with other operational and financial details, were disclosed by the McLean, Virginia-based organization in its fourth-quarter 2015 earnings report.

Included in the fourth-quarter 2015 volume was $37 billion in purchase financing and $38 billion in refinancing activity.

Full-year 2015 volume was $351 billion, more than $255 billion in 2014.

Multifamily business volume for all of last year was $47 billion, leaping from $28 billion in 2014.

Freddie Mac said it helped finance 2,237,000 single-family and multifamily units last year, more than the 1,627,000 units it helped finance in 2014.

The secondary lender noted that its $347 billion investment portfolio as of Dec. 31, 2015, consisted of $146 billion in mortgages, $40 billion in non-agency mortgage-related securities, $13 billion in agency non-Freddie mortgage-related securities and $148 billion in Freddie Mac participation certificates and structured securities.

The total multifamily portfolio finished last year at $188 billion, growing from $169 billion a the previous year.

The McLean, Virginia-based organization earned $3.1 billion in pre-tax income during the fourth-quarter 2015, swinging from an $0.7 billion loss three months earlier and rising from an $0.2 billion profit a year earlier.

Full-year 2015 pre-tax income was $9.3 billion, off from $11.0 billion in 2014.

Including a $1.7 billion dividend payment planned for the first quarter of this year, Freddie has paid out $98.2 billion in dividends to the Treasury Department — far more than the $71.3 billion in draws it has taken in draws.

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