WASHINGTON Freddie Mac reported an $11 billion annual profit for 2012 its largest ever annual gain and first profitable year since 2006, the peak of the housing bubble.
The troubled mortgage finance company, which was taken over by the government in 2008, had net income of $4.5 billion in the quarter that ended Dec. 31, after taking into account a $5.8 billion payment it will make to the U.S. Treasury in return for the ongoing taxpayer bailout. Last year’s net compared to a loss of $5.3 billion for 2011. The company attributed the improved financials to gains in home values and fewer mortgage delinquencies.
It was the fifth straight quarter in which Freddie Mac turned a profit.
“It is clear from our earnings that the housing market has turned a corner,” said Donald Layton, CEO of Freddie Mac. “Our work to minimize legacy losses and build a strong new book of business is paying off.”
The company, which has drawn a cumulative $71.3 billion in aid from the Treasury, has already paid back $23.8 billion of the government aid.
