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 now turned a profit in its past six quarters.
Freddie said today that it paid a dividend of $7 billion to the U.S. Treasury from its firstquarter earnings and requested no additional federal aid. 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. Taxpayers have spent about $170 billion to them, the costliest bailout of the crisis. So far, the companies have repaid a combined $62.2 billion.
Under a 2012 federal policy, Fannie and Freddie must turn over their quarterly profits to the government.
The companies are benefiting from a housing recovery that began a year ago. Recordlow 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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