Freddie posts $2.9B Q3 profit

Freddie Mac is continuing a streak. The government-sponsored mortgage backer posted a $2.9 billion third-quarter profit today, which marks the fourth consecutive quarterly gain for the once embattled company, the Wall Street Journal reported.

The third-quarter profit figures stand in stark contrast to the $4.4 billion loss in the third quarter of last year. This year’s profit is the result of stabilizing home prices, stronger housing demand and a low inventory of homes for sale.

Mortgage lending standards are also tighter, now that higher-quality loans have replaced the risky ones written between 2005 and 2008.

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As The Real Deal reported today, nationwide home prices are on the upswing.

Freddie plans to give the U.S. Treasury a $1.8 billion divident mayment. This is the second quarter in which the company has not needed government assistance to stay afloat. [WSJ]Zachary Kussin