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Freddie Mac’s in the black (again)

Government-sponsored enterprise marks 14th consecutive quarterly profit

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Freddie Mac reported $524 million in net income for the first quarter, and judging from the $227 million in net income it reported in the fourth quarter of 2014 and the fact that this was the company’s 14th consecutive quarter in the black, it’s faring much better than its government-sponsored enterprise (GSE) counterpart, Fannie Mae. As we reported last week, Fannie Mae reported $1.9 billion in net income in the first quarter, down 64 percent from the $5.3 billion reported in the same quarter last year and falling short of analysts’ estimates of $2.6 billion. Fannie Mae attributed the sharp drop to a sizable derivative loss and a drop in credit-related income. But Freddie Mac has more to celebrate, as it also reported comprehensive income of $746 million in the first quarter, compared with $251 million in the fourth quarter of 2014. “Our strong business momentum from last year carried into the first quarter, enabling us to again produce earnings despite a continued d...