Freddie Mac reports Q1 results
- Comprehensive income (loss) was $2.2 billion in 1Q 2017, compared to ($0.2) billion in 1Q 2016, driven by the continued solid business environment and our growing guarantee businesses.
- Our total equity was $2.8 billion at March 31, 2017. Because our net worth was positive, we are not requesting a draw from Treasury under the Purchase Agreement for 1Q 2017. Following payment of our scheduled dividend obligation of $2.2 billion in June 2017, our cumulative senior preferred stock dividend payments will total $108.2 billion. Under the Purchase Agreement, the payment of dividends does not reduce the outstanding liquidation preference of the senior preferred stock, which remains $72.3 billion. The amount of available funding remaining under the Purchase Agreement is $140.5 billion and would be reduced by any future draws.
- Guarantee fee income 1Q 2017 vs. 1Q 2016 - increased during 1Q 2017 due to higher average contractual guarantee fee rates and the continued growth in the size of the Core single-family book. Average contractual guarantee fee rates are generally higher on mortgage loans in our Core single-family book compared to those in our Legacy single-family book... Single-family loan origination volumes increased slightly to $385 billion in 1Q 2017 compared to $380 billion in 1Q 2016. Mortgage origination data is from Inside Mortgage Finance as of April 28, 2017.
- Our loan purchase and guarantee activity increased in 1Q 2017 due to higher refinance and home purchase loan volume driven by lower rates in late 2016 compared to late 2015. It can take up to three months between the time a mortgage is originated and when we purchase the loan.