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.
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