Portfolio, earnings increase
By MortgageDaily.com staff
10/24/2002

Freddie Mac announced third quarter results Wednesday, sporting hikes in its business volume, mortgage portfolio, and net operating income.

Business purchase volume reached a reported $137 billion during the quarter, a 19% increase from the second quarter's $115 billion and an almost 9% increase from last year's $126 billion.

Freddie's total mortgage portfolio grew to $1.261 trillion during the quarter, a 1% growth from second quarter's $1.244 trillion, according to the report.

The company is well-positioned to produce low double-digit operating earnings growth in 2003, said Leland C. Brendsel, chairman and chief executive officer.

The company "produced extremely strong third quarter results. Already this year Freddie Mac has financed homes for nearly 3 million families," he said. "In this environment of historically low mortgage rates and record refinancing, Freddie Mac continued to demonstrate our risk management discipline."

Freddie said its duration gap averaged approximately negative 1 month in the third quarter, unchanged from second quarter 2002.

Net operating income totaled $987 million at the quarter's end, compared with $813 million the same time last year.

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