The nation’s second largest mortgage company reported Wednesday that it pulled in net income of $676 million during the first three months of this year.
Freddie Mac closed the quarter with positive net worth of $1.2 billion. As a result, no additional funding from Treasury was required for the first quarter of 2011.
It’s the first time since the fourth quarter of 2009 that the company has not needed to draw on taxpayer support to cover a deficit.
Over the 2010 fiscal year, Freddie received $13 billion in taxpayer funding under the Treasury agreement put in place when the federal government seized control of the mortgage financier.
Since the conservatorship began in September 2008, Freddie Mac has drawn a total of $64.7 billion. The bulk of that — $45.6 billion – came at the onset of the conservatorship during the 2008 fiscal year.
On that nearly $65 billion in draws from Treasury, the GSE has paid a total of $11.6 billion in dividends, $1.6 billion of which was paid during the first three months of this year.
In recent quarters, it’s become a case of robbing Peter to pay Paul. For example, during the fourth quarter of 2010, Freddie Mac paid dividends to Treasury of $1.6 billion. The GSE then turned around and requested a $500 million draw from Treasury to cover the deficit resulting from the dividend payment