WASHINGTON Freddie Mac reported a $4.6 billion profit for its fiscal first quarter this morning, its second highest ever and another sign of the recovering mortgage market.
The company, under federal conservatorship since September 2008, attributed the gains to rising home prices, falling mortgage delinquencies and increased refinance activity.
The first quarter profits compare to a $577 million net for the first quarter last year and represent the company’s sixth straight quarterly profit.
Freddie paid $5.8 billion in dividends to the U.S. Treasury in the first quarter under the terms of its government bailout, and it said it would face another $7 billion payment in June.
The first quarter profits, as well as gains expected to be reported later this week by Fannie Mae, are sure to muddy the debate in Congress over the future of the two secondary market mortgage giants, which buy more than half of all mortgages originated by credit unions and banks.
