Freddie Mac said a strengthening housing market means it will not add to the debt it owes U.S. taxpayers for the first time since the first quarter of 2011.
Net income of $3 billion in the second quarter of 2012, even after a dividend payment to the Treasury of $1.8 billion, will allow the McLean, Virginia-based company to avoid additional help for now, it said today in a statement. Provisions for credit losses fell as the housing market improved, Freddie Mac said.
In previous quarters when Freddie Mac posted operating profits, dividend payments forced the company to seek aid from Treasury to balance its books. The company also did not require aid during the last three quarters in 2009.
Fannie Mae and Freddie Mac have taken almost $190 billion in U.S. assistance since they went into conservatorship after investments in risky loans pushed them to the brink of insolvency.