WASHINGTON – Freddie Mac reported a $1.2 billion second quarter profit this morning, meaning the housing giant will not require government bailout funds this quarter for the first time since its 2008 federal takeover.

The second quarter profit compares to a $3.8 billion loss for the same period last year and a $1.2 billion loss for the first quarter this year, necessitating an additional $19 million in government bailout funds. At the end of May, Freddie had received $72 billion in bailout funds since the 2008 takeover.

The second quarter profit came even after Freddie paid the government a $1.8 billion dividend on the preferred stock it owns in the company.

The Freddie Mac profit comes as good news for credit unions, which depend on Freddie and its sister mortgage agency Fannie Mae to buy an estimated half of all single family mortgage originated at credit unions.

Freddie said its credit-loss provisions for the latest period were $155 million, down from $2.5 billion a year earlier and $1.8 billion in the first quarter. Freddie's single-family delinquency rate was 3.45% compared with 3.5% both a year earlier and in the first quarter.

The company posted $882 million worth of derivatives losses for the quarter versus $3.81 billion a year ago. It also recorded a $1 million loss related to the extinguishment of debt, down from a $125 million loss last year.

Fannie Mae is expected to report ist second quarter earnings later this week.

The two companies have received almost $175 billion in bailout funds since the 2008 takeover by the federal government.

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