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Freddie Mac Won’t Draw from Treasury This Quarter

Things are looking up at ""Freddie Mac."":http://www.freddiemac.com/ As of the end of the second quarter, Freddie Mac had a positive net worth and reported it will not require a draw from Treasury this quarter. At the end of June, the GSE had $1.1 billion in net worth.

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The new net worth is the result of $2.9 billion in comprehensive income during the second quarter. About $1.8 billion was paid to Treasury as dividends on 10 percent preferred stock.

""[O]ur financial results enabled us to avoid an additional draw from the U.S. Treasury, despite paying a $1.8 billion cash dividend to the nation's taxpayers,"" stated Donald H. Layton, CEO of Freddie Mac.

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Freddie Mac's net income of $3.0 billion in the second quarter is a jump from the $577 million recorded in the first quarter. The increase ""primarily reflects a decline in the provision for credit losses due to positive trends in the housing market,"" Freddie Mac stated in a ""press release"":http://www.freddiemac.com/investors/er/pdf/2012er-2q12_release.pdf Tuesday.

One of Freddie Mac's stated goals is to provide liquidity to the market. The GSE reported that since 2009, it has provided $1.5 trillion in liquidity by purchasing and issuing mortgage loans.

Freddie Mac purchased or issued $215 billion in loans and mortgage-related securities in the first half of this year.

Also since 2009, Freddie Mac has assisted in providing refinances to about 5.2 million families, helping them save an average of $2,500 per year.

Freddie Mac has reached more than 680,000 families through the government's Home Affordable Refinance Program (HARP). The GSE helped about 200,000 families through HARP in the first half of this year.

The GSE also reports preventing 700,000 foreclosures since 2009, about 81,000 so far this year.

Freddie Mac's serious delinquency rate among its single-family book of business is 3.45 percent as of the end of June.

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