Freddie Mac posts $4.5B net income for Q4

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Associated Press

Posted on February 28, 2013 at 3:00 PM

Updated Thursday, Feb 28 at 4:02 PM

WASHINGTON (AP) — Mortgage giant Freddie Mac earned $4.5 billion from October through December, its fifth straight profitable quarter. The government-controlled company credited fewer delinquencies on home loans and rising home prices for the gains.

Freddie says it paid a dividend of $1.8 billion to the U.S. Treasury and requested no additional federal aid.

The earnings compared with net income of $619 million in the fourth quarter of 2011.

The government rescued Freddie and larger sibling Fannie Mae during the financial crisis. Taxpayers have spent about $170 billion to rescue Freddie and larger sibling Fannie Mae, the costliest bailout of the crisis.

Under a federal policy adopted last summer, Fannie and Freddie must turn over their quarterly profits to the government. The change was made to ensure they pay the government back.

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