WASHINGTON – Mortgage giant Freddie Mac posted net income of $1.4 billion for the April-through-June period, aided by a strengthening housing market. The government-controlled company has turned a profit in each of the past 11 quarters.
Freddie’s second-quarter profit reported Thursday declined 72 per cent from $5 billion in the same period of 2013. Freddie said its earnings can fluctuate widely due to changes in the value of its holdings of derivatives, investments used to hedge against swings in interest rates. That can create “mismatches” in quarterly earnings that may not reflect the economics of its business, Freddie said.
McLean, Virginia-based Freddie said it will pay a dividend of $1.9 billion to the U.S. Treasury next month. Freddie will have paid $88.2 billion in dividends, exceeding its government bailout of $71.3 billion.