By Robb M. Stewart
Federal Home Loan Mortgage's earnings rose in the latest quarter, lifted by higher net interest income and a fall in expenses.
The government-backed housing-finance company, known as Freddie Mac, recorded third-quarter net income of $3.11 billion against $2.65 billion a year earlier. On a per-share basis, the company's loss widened to 2 cents from 1 cent.
The quarter included a benefit for credit losses of $191 million thanks to a reserve release in single-family lending with lower mortgage interest rates and a release in its multifamily arm driven by a lower expense related to debt-in-hedge accounting relationships. Freddie Mac's overall non-interest expense dropped compared with last year, when it saw an additional $313 million accrual.
Overall revenue for the three months rose 2.6% on-year to $5.84 billion. Net interest income was up 5.3% to $5 billion, while non-interest income fell 11% to $839 million.
Strength in the quarter lifted Freddie Mac's net worth to roughly $56.4 billion from $44.7 billion a year earlier, and recently appointed Chief Executive Diana Reid said the company helped 415,000 families buy, refinance or rent a home, including 110,000 first-time buyers.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
October 30, 2024 09:25 ET (13:25 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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