Freddie Mac swung to a $768 million profit in the second quarter as it recognized $4.2 billion of gains on its derivative portfolio and guarantee assets and its credit provision fell.
It was the government-sponsored enterprise's first period in the black since the second quarter of 2007.
Freddie finished the period with a net worth of $8.2 billion and therefore did not require an additional draw from a Treasury Department backstop designed to keep it above water.
The government holds $51.7 billion of preferred stock in Freddie as a result of the facility, and received $1.1 billion of cash dividends in the period.
Fannie Mae said Thursday that the Federal Housing Finance Agency, the GSEs' regulator, had requested another $10.7 billion from the Treasury Department to cover its net worth deficit. The additional funds would bring the government's holdings of Fannie preferred shares to $45.9 billion.
Freddie said the adoption of changes to mark-to-market accounting rules boosted its net worth by $5.1 billion.
Credit expenses fell 42.8% from the previous quarter but increased 85.9% from the year prior to $5.2 billion in the second quarter. Freddie said it increased its reserves at a lower rate than in the first quarter in part because of "modest" improvements in home prices, which it believes are "largely seasonal," and that it expects its provisions to increase for the rest of the year.
Freddie posted a loss of $9.9 billion in the first quarter and a loss of $821 million in the year prior.
