WASHINGTON (AP) — Mortgage giant Freddie Mac earned $4.6 billion from January through March, helped by a stronger housing market. The government-controlled company has turned a profit in the past six quarters.
Freddie said Wednesday that it paid a dividend of $7 billion to the U.S. Treasury and requested no additional federal aid for the fourth consecutive quarter. The earnings compared with net income of $577 million in the first quarter of 2012.
The government rescued Freddie and larger sibling Fannie Mae during the financial crisis after both incurred massive losses on risky mortgages. The companies received loans about $170 billion, the costliest bailout of the crisis. So far, the companies have repaid a combined $62.2 billion.
The companies are benefiting from a housing recovery that began a year ago. Record-low mortgage rates and slow but steady job growth have helped bring buyers back to the market. Home sales and construction have increased. And home prices are rising at the fastest pace six years, driven by higher demand and a limited supply of homes for sale.
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