Freddie Mac Reports $7.3B In Net Income

Freddie Mac on Thursday announced net income of $7.3 billion for 2020, up $100 million from the year before as the housing market surged amid pandemic-induced record low interest rates.

Freddie Mac also reported:

Net worth increased to $16.4 billion, from $9.1 billion at the end of 2019.

Net income of $2.9 billion and comprehensive income of $2.5 billion in the fourth quarter, up $400 million and $100 million, respectively, from the prior quarter, driven by a reserve release due primarily to realized house price growth during 4Q 2020.

“In 2020, Freddie Mac continued to serve the important role for which it was founded: supporting the housing market in all economic conditions. In the face of extraordinary economic uncertainty caused by COVID-19, we provided record liquidity, enabling millions of borrowers to purchase or refinance homes at historically low interest rates,” Chief Financial Officer Christian M. Lown said. “We also helped hundreds of thousands of homeowners and renters affected by the pandemic avoid foreclosure and eviction. Our efforts are a testament to our people, our operating platform, our Conservator, and our many partners across the industry.”

Fannie Mae will release its annual results on Friday.