Freddie Mac [1] reported a slight increase in comprehensive income in Q2 2019 from the previous quarter, up to $1.8 billion. Additionally, the GSE notes that its Return on Conservatorship Capital improved to 14.1% due to higher earnings and lower conservatorship capital compared to the prior quarter.
Freddie Mac expects a $1.8 billion dividend to the U.S. Treasury by September 2019. Through June 30, 2019, aggregate cash dividends paid to Treasury were $48.1 billion more than
cumulative cash draws received from Treasury. The amount of funding available to Freddie Mac under the Purchase Agreement remained $140.2 billion at June 30, 2019. According to a release, the payment of dividends does not reduce the outstanding liquidation preference under the Purchase.
Agreement, which was $75.6 billion at June 30, 2019.
“Freddie Mac’s second quarter continued our growing track record of strong returns, solid risk
management and an unwavering commitment to our mission,” said Freddie Mac CEO David Brickman. “Once again, we made home possible for hundreds of thousands of families across the country.”
Freddie Mac’s release also notes how the GSE prevented foreclosure in the first half of 2019, having completed approximately 26,000 single-family loan workouts in the six months ended June 30, 2019.
Fannie Mae and Freddie Mac completed [2] 1,746 foreclosure prevention actions in April 2019, according to the latest Federal Housing Finance Agency (FHFA) Foreclosure Prevention, Refinance, and Federal Property Manager's Report. The report states that the GSEs have completed 4,334,550 since the start of conservatorship in September 2008.
In the six months that ended on June 30, 2019, Freddie Mac provided approximately $212 billion in liquidity to the market. Freddie funded around 702,000 single-family homes, approximately 445,000 of which were home purchase loans, and around 343,000 multifamily rental units.
For more information and to listen to Freddie Mac’s conference call regarding their recent financial results, click here. [3]