Although it suffered a first-quarter loss, the Federal Home Loan Mortgage Corp. will require no taxpayer funds. Delinquency fell to the lowest level since the summer of 2008.
Freddie Mac provided around $87 billion in market liquidity during the first-three months of this year, according to its first-quarter 2016 earnings report released Tuesday.
Financing provided by the secondary lender funded more than 313,000 single-family homes. In addition, approximately 209,000 multifamily rental units were funded by Freddie.
Delinquency of at least 90 days on single-family loans was 1.20 percent as of March 31, 2016.
That was the lowest 90-day rate since it stood at 1.11 percent in August 2008. At the time, that was the highest level of residential delinquency since at least February 2001 based on the oldest data maintained by Mortgage Daily.
Serious delinquency was 1.26 percent at the end of February, 1.32 percent at the end of last year and 1.73 percent at the same point last year.
The McLean, Virginia-based company suffered a pre-tax loss of $0.508 billion, swinging from a $3.077 billion profit in the fourth-quarter 2015 and
an $0.8 billion profit in the first-quarter of last year.
Freddie said its first-quarter 2016 after-tax loss reflected a $1.4 billion fair value loss driven by measurement differences between derivatives measured at fair value and hedged assets and liabilities that are not, as well as an $0.6 billion estimated fair-value loss from the impact of spread widening on mortgages and mortgage-related securities measured at fair value.
Since being thrust into conservatorship in September 2008, Freddie has received $71.3 billion in draws from the Department of the Treasury.
No draw requests will be made as a result of the latest loss.
At the same time, Freddie has paid out $98.2 billion in dividends to the Treasury during its conservatorship.
No dividend will be required from first-quarter 2016 earnings.
