New York: US mortgage finance giant Freddie Mac has posted an $11 billion annual profit for 2012, compared to a loss of $5.3 billion a year earlier.
The government-controlled company, bailed out during the 2008 financial crisis, also reported $4.5 billion in net income for the fourth quarter of last year, up from $2.9 billion in the third quarter.
“It’s clear from our earnings that the housing market has turned a corner and that our work to minimize legacy losses and build a strong new book of business is paying off,” Freddie Mac chief executive Donald Layton said in a statement Thursday.
Provision for credit losses for 2012 fell to $1.9 billion from $10.7 billion for 2011, the company said.
“The improvement in both the fourth quarter and full-year 2012 is driven by a decrease in the volume of newly delinquent single-family loans and the positive impact of increased national home prices,” it said.
Freddie Mac and sister institution Fannie Mae were rescued by the government from the brink of bankruptcy in September 2008 after the housing bubble collapsed.
The two were put under government control as their home-loan losses surged and given a $180 billion bailout.
Freddie Mac said that, through December 31, it had paid $23.8 billion in cash dividends to the US Treasury.
Dear TNT Reader,
At The News Tribe, our mission is to bring you free, independent, and unbiased news and content that keeps you informed and empowered. We are committed to upholding the highest standards of journalism, as we understand that we are a platform for truth.
Apart from independent global news coverage, we also commit our unique focus on the Muslim world. In an age marked by the troubling rise of Islamophobia and widespread misrepresentation of Muslims in Western media, we strive to provide accurate and fair coverage.
But to continue doing so, we need your support. Even a small donation of 1$ can make a big difference. Your contribution will help us maintain the quality of our news and counteract the negative narratives that are so prevalent.
Please consider donating today to ensure we can keep delivering the news that matters. Together, we can make a positive impact on the world, and work towards a more inclusive, informed global society.
Donate Monthly Subscription Annual Subscription