Freddie Mac posted earnings of $4.5 billion in the fourth quarter, up from $2.9 billion the prior quarter, and completed its first profitable year since 2007.
The GSE reported late Thursday afternoon that net income totaled $11 billion for the full year, compared to a $5.3 billion loss in 2011.
“It is clear from our earnings that the housing market has turned the corner and that our work to minimize legacy losses and build a strong new book of business is paying off,” said Freddie chief executive Donald Layton.
Freddie ended the year with a net worth of $8.8 billion. But it will make a $5.8 billion payment to the Treasury in March as part of a new conservatorship agreement entered into last August.
Since 2008, Freddie has paid a 10% dividend on its borrowings from the U.S. Treasury. Going forward, Treasury will sweep all the GSE’s profits until 2018. At the end of the first quarter, Freddie will be left with a $3 billion capital reserve.
The GSE purchased $106 billion in refinanced loans in the fourth quarter and $351 billion during the full year.
In terms of HARP refis, Freddie purchased 434,000 HARP loans totaling $86.9 billion during 2012.
“We played a leading role in helping America’s homeowners last year—working with our lender customers to streamline programs to assist more distressed borrowers while expanding access to affordable mortgage funding programs like HARP,” Layton said.
