New data that has been released has shown that Freddie Mac has posted profits of $1.2 billion for the second quarter of 2012 and will not be requesting any federal aid for the duration.
The massive losses experienced by both Freddie Mac and Fannie Mae in 2008 meant that the government was forced to step in to save them from being toppled after the global housing crisis started to bite. Taxpayers have had to watch as approximately $170 billion was used to rescue both Freddie and Fannie. It was the most expensive bailout of the financial crisis and could total $200 billion by the end of 2014 once dividend payments have been subtracted, according to figures available from the government.
The news that Freddie would not be seeking aid means that this is the fifth financial quarter since it was taken over in September 2008 when it has not sought help. In total it received $19 million in the first quarter, $7.6 billion in 2011 and $13 billion during 2010.
Freddie Mac's net income that was attributable to the common shareholders was 37 cents per share for the period that ran from April to June. This was in stark contrast to the loss of $3.76 billion that was made this time 12 months ago, which equated to $1.16 per share.
Between them, Freddie and Fannie own or guarantee around 50% of all mortgages in the US, which is about 31 million home loans that have a collective value of more than $5 trillion.
