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Fredy man (FMCC) net profit $4.5 B. and

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mlkrborn   Thursday, 02/28/13 06:22:32 PM
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Fredy man (FMCC) net profit $4.5 B. and no need to draw down money from his uncle.
Freddie Mac reports Q4 net income of $4.5 bln; No additional Treasury draw required in Q4 (FMCC) 0.28 -0.05 :

Fourth quarter 2012 net income and comprehensive income totaled $4.5 billion and $5.7 billion, respectively. The increase primarily reflects a shift from a provision for credit losses in the third quarter to a benefit for credit losses in the fourth quarter due to a decrease in the volume of newly delinquent single-family loans and continued improvement in national home prices, as well as a higher income tax benefit primarily driven by the favorable resolution of tax matters with the Internal Revenue Service (IRS).
No Additional Treasury draw required for the fourth quarter of 2012; based on net worth of $8.8 billion at December 31, 2012, the company's dividend obligation to Treasury will be $5.8 billion in March 2013.
Paid $7.2 billion to taxpayers through dividends in 2012, bringing the cumulative total paid since conservatorship to $23.8 billion -- or 33 percent of the company's cumulative draws.
Post-2008 book of business grew to 63 percent of single-family credit guarantee portfolio in 2012 -- of which 11 percent of that portfolio were HARP loans.
Delinquency rates remained below industry benchmarks:
Single-family serious delinquency rate was 3.25 percent
Multifamily delinquency rate was 0.19 percent.
Beginning in 2013, the August 2012 amendment to the Purchase Agreement replaced the fixed 10 percent dividend rate with a net worth sweep dividend and suspended the periodic commitment fees. Under this amendment, Freddie Mac is required to pay dividends to the extent that its Net Worth Amount, as defined in the Purchase Agreement, exceeds the permitted capital reserve. The amount of the permitted capital reserve is $3 billion in 2013 and will be reduced by $600 million each year thereafter until it reaches zero in 2018. The amendment effectively ends the circular practice of taking draws from Treasury to pay dividends to Treasury.
Based on Freddie Mac's Net Worth Amount at December 31, 2012, the company's net worth sweep dividend obligation to Treasury in March 2013 will be $5.8 billion.
Beginning January 1, 2013, the amount of remaining funding available to Freddie Mac under the Purchase Agreement with Treasury is $140.5 billion.

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