What’s New With Freddie Mac Earnings?
Fortunately, the housing market is slowly starting to show signs of improving. This is after some unprecedented decreases in housing values, difficulty in obtaining financing and record numbers of foreclosures. This improvement in the overall housing market has helped Freddie Mac earnings as well. Freddie Mac posted a postive earnings report.
Freddie Mac reported higher than expected earnings during the second quarter of 2012. During the first quarter, their earnings were recorded at just over $570 million while in the second quarter, profits rose to $3 billion. This record change is largely due to the agencies ability to record lower than anticipated credit losses.
Consumers probably recall that Freddie Mac was placed into conservatorship during 2008. Since then, there have been loud voices wanting to wind down the government sponsored organization. Chances are, with better than expected earnings, decreasing dependence on the Fed and a stronger loan portfolio, these cries will begin to lessen. Freddie Mac has seen a significant decrease in foreclosure percentages on both single and multi-family homes. Hopefully, their earnings will continue to head upwards and they will continue to help homeowners refinance and avoid foreclosure.
This blog is for informational purposes only.