0n Nov. 6, Freddie Mac, McLean, Virginia, reported it would not need to draw funds from the Treasury to pay its $1.8 billion dividend on senior preferred stock for the third quarter. Instead, it posted net income of $2.9 billion and comprehensive income of $5.6 billion.
Net income was down slightly from the second quarter, when it came in at $3.0 billion. Comprehensive income was up significantly from the second quarter, when it was $2.9 billion.
Freddie Mac explained that the slight decrease in net income for the third quarter "primarily reflects an increase in the provision for credit losses related to single-family loans, partially offset by lower derivative losses."
For the first nine months of 2012, the government-sponsored enterprise (GSE) reported net income of $6.5 billion. For the same period it totaled $10.3 billion in comprehensive income.
Freddie Mac's net worth as of Sept. 30, 2012, was $4.9 billion--up $3.8 billion from June 30, 2012, the company said.
A much better book of business now makes up the majority of single-family loans in the credit guarantee portfolio. Post-2008 originations grew to 6o percent of the credit guarantee portfolio as of the third quarter.
The single-family serious delinquency rate dropped to 3.37 percent at the end of the third quarter. The multifamily delinquency rate was a mere 0.27 percent as of Sept. 30, 2012, the company reported.
Freddie Mac Chief Executive Officer Donald Layton said, "Freddie Mac's strong financial performance this quarter was driven by...