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Freddie’s Dividend Repayments Surpass $100 Billion

Since it was bailed out by the U.S. government, the Federal Home Loan Mortgage Corp. total dividends paid to the Treasury Department exceed $100 billion.

Prior to income tax expense, Freddie Mac earned $3.3 billion during the three months ended Sept. 30.
Earnings increased from $1.5 billion the prior period.

Those details, as well as other operational and financial metrics, were disclosed Tuesday by the McLean, Virginia-based company in its third-quarter earnings report.

Earnings swung from an $0.7 billion pre-tax loss in the year-prior period.

Freddie noted that year-over-year earnings were boosted $1.4 billion because of changes in interest rates and $1.2 billion due to tightened spreads.

The report indicated that $129 in liquidity was provided to the mortgage market in the third quarter of this year,
more than $118 billion the prior period.

homes financed totaled nearly 485,000, climbing from 392,000 the prior quarter and 432,000 a year prior. The year-to-date total is approximately 1,191,000.

Third-quarter 2016 single-family activity included 255,000 refinances and 230,000 purchases.

Single-family loan purchases and guarantees totaled $116 billion in the most-recent three-month period,
climbing from $91 billion in the second quarter and $94 in the third-quarter 2015. For all three quarters so far in 2016, volume came to $276 billion.

Refinance share was
53 percent in the third-quarter 2016, about the same as three months earlier and wider than 49 percent one year earlier.

The single-family credit guarantee portfolio finished September 2016 at 10.7 million loans for $1.7328 trillion.

Freddie reported that Wells Fargo Bank, N.A., is its top single-family seller with a 14 percent year-to-date share. Wells Fargo is also the biggest servicer, with a 19 percent share.

On the multifamily side, Berkadia Commercial Mortgage LLC has a 19 percent year-to-date origination share, followed by CBRE Capital Markets Inc.’s 17 percent share and Walker & Dunlop LLC’s 12 percent share.

Wells Fargo is the biggest multifamily servicer, with a 13 percent share, then CBRE’s 12 percent and Berkadia’s 12 percent.

New multifamily business activity totaled 165,455 units, more than 149,000 in the second quarter but off from 166,398 the third-quarter 2015. Year-to-date multifamily units financed totaled 522,845.

The multifamily portfolio closed out the third-quarter 2016 at $203.3 billion,
up from $198 billion the prior quarter.

In December, Freddie plans a $2.3 billion dividend payment to the Treasury Department — bringing to $101.4 billion the cumulative senior preferred stock dividends paid.

Total draws since entering conservatorship in September 2008 were $71.3 billion.

Freddie said it has $140.5 billion in available funding remaining under its purchase agreement. The amount would be reduced by any future draws.

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