Freddie Mac posted earnings of $4.6 billion in the first quarter compared to $557 million a year ago as it continues to benefit from the housing recovery.
It is the second most profitable quarter for the secondary market agency which has been operating in conservatorship since September 2008.
Earnings from its mortgage investments totaled $2.8 billion. And earnings from it single-family guarantee business totaled $1.2 billion, compared to $1.4 billion a year ago.
The GSE guaranteed $135.6 billion in single-family loans in the first quarter, compared to $110.6 billion in the first quarter of 2012.
Refinancings represented 84% of single-family mortgage volume in the first quarter. And HARP refinancings (above 80% LTV) represented 16% of 1Q volume totaling $21.5 billion.
During a Wednesday morning conference call, Freddie chief executive Donald Layton noted that the GSE has just completed its sixth consecutive
Freddie also reported $7 billion in comprehensive income for the first quarter compared to $5.7 billion in the fourth quarter of 2012.
Comprehensive income determines the company’s net worth, which totaled $10 billion at the end of March. And it triggers the dividend Freddie must pay the Treasury Department under its conservatorship agreement.
“Our net worth sweep dividend obligation to Treasury for the first quarter will be $7 billion,” the CEO said. That will leave the GSE with a net worth of $3 billion.
