Freddie Mac posts $2.2B net income in Q1; $2.2B dividend
Freddie Mac posts $2.2B net income in Q1; $2.2B dividend!
“WASHINGTON (AP) – Mortgage giant Freddie Mac is reporting net income of $2.2 billion for the first quarter, reversing a loss in the same period of 2016.
The government-controlled company said Tuesday that its earnings in the January-March period were boosted by an increase in its fees from lenders for backing mortgages.
Freddie, based in McLean, Virginia, will pay an equivalent dividend of $2.2 billion to the U.S. Treasury next month. Freddie will have paid a total $108.2 billion in dividends, exceeding its government bailout of $71 billion.”
This is significant for many reasons. First and foremost at the bottom of the article was this quote: “Treasury Secretary Steven Mnuchin has said that privatizing Fannie and Freddie, cutting them loose from government control, is a priority of the Trump administration.” This bears watching as the effects of easy leverage on Real Estate pricing is well known.
Privatising Freddie (and Fannie) would be the next step is towards easy leverage. That and the repeal/waterdown of Dodd Frank.
About Freddie Mac: The FHLMC was created in 1970 to expand the secondary market for mortgages in the US. Along with the Federal National Mortgage Association (Fannie Mae), Freddie Mac buys mortgages on the secondary market, pools them, and sells them as a mortgage-backed security to investors on the open market. This secondary mortgage market increases the supply of money available for mortgage lending and increases the money available for new home purchases. The name, “Freddie Mac”, is a variant of the initialism of the company’s full name that had been adopted officially for ease of identification.
Steelbridge Realty LLC is a Licensed Real Estate Brokerage that utilizes cutting edge marketing techniques and data driven Real Estate solutions in today’s ever changing environment.
Need help buying, selling or leasing?
Call 239 694 3300 or use the form below