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Freddie Mac records 7th consecutive profitable quarter
U.S. mortgage giant Freddie Mac posted its seventh consecutive quarterly profit Wednesday, reflecting an improved housing market.
The government-sponsored enterprise earned 5 billion dollars in the second quarter of 2013, the second largest in the company's history and up 400 million dollars from the previous quarter.
The run of gains represents a major turnaround after it was put under conservatorship after the 2008 financial crisis.
The company also said comprehensive income was 4.4 billion dollars in the second quarter, compared to 7 billion dollars in the first.
Freddie Mac and its sibling company, Fannie Mae, benefited a lot from a U.S. housing recovery that began in early 2012, and that year both posted their first annual profits since 2006, driven by rising home prices, falling mortgage delinquencies and record-low mortgage rates.
The two mortgage giants asked for 190 billion dollars in aid from the U.S. government after suffering heavy losses from the collapse of the subprime mortgage market.
They own or guarantee about half of all mortgages in the United States, or nearly 31 million home loans. Along with other federal agencies, they backed nearly 90 percent of new mortgages over the past few years.
As the housing market continued to strengthen, U.S. President Barack Obama outlined plans Tuesday to wind down Fannie Mae and Freddie Mac, allowing private capital to be the backbone of the housing market.
[Source: Xinhua, Washington, 07Aug13]
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