Freddie earns $30.5B in 3Q; repaying bailout
WASHINGTON (AP) — Mortgage giant Freddie Mac posted net income of $30.5 billion from July through September, its eighth straight profitable quarter. Freddie will have repaid its full government bailout after paying its third-quarter dividend.
Freddie said Thursday Its third-quarter profit was boosted by an accounting move that allowed the government-controlled mortgage giant to capitalize on tax benefits it had saved up from its losses on mortgages during the crisis.
The gain compares with net income of $2.9 billion in the same period of 2012.
Freddie will pay a dividend of $30.4 billion to the U.S. Treasury next month. With its previous payments totaling $41.4 billion, it will have repaid fully the $71.3 billion it received from taxpayers.
The government rescued Freddie and larger sibling Fannie Mae during the financial crisis in 2008.