GSE reports earning, pledges initiatives to reduce government role in mortgage industry

Freddie Mac reported an increase in earnings during the first three months of 2012, allowing the GSE to pay an estimated $1.8 billion dividend to the Department of the Treasury.

Freddie Mac reported an increase in earnings during the first three months of 2012, allowing the GSE to pay an estimated $1.8 billion dividend to the Department of the Treasury.

According to the mortgage giant, it made an estimated net income of $577 million during the first quarter. Despite the earnings, they were notably less than the $676 million profit made by Freddie during the first quarter of 2011.  

"In the first quarter, Freddie Mac sharpened its focus on building value for the industry, homeowners and taxpayers by aligning its resources and internal business plans to meet the goals and objectives laid out in our new Conservatorship Scorecard and Strategic Plan," said Freddie Mac chief executive officer Charles Haldeman.

Haldeman added that Freddie will continue to work closely with its regulator, the Federal Housing Finance Agency, to implement new lending regulation that will streamline the mortgage industry and make it more transparent.

With these initiatives, it's believed that the current role the government plays in the mortgage market will be slowly reduced, in turn giving lenders more financial independence to provide homeownership solutions for prospective borrowers.



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