Freddie Mac’s net income in the third-quarter hit $30.5 billion, including the $23.9 billion impact of releasing the valuation allowance on deferred tax assets, the government entity announced.   

Furthermore, Freddie reported a pre-tax income of $6.5 billion, compared to $4.9 billion in the second quarter of 2013, making it the eighth consecutive quarter of positive earnings and the second largest in company history.

The increase primarily reflects higher other non-interest income, driven by gains on securities in the company’s mortgage-related investments portfolio, gains on multifamily mortgage loans and settlement proceeds related to private label securities litigation. These favorable impacts were partially offset by a shift from derivative gains in the second quarter to derivative losses in the third quarter. 

3d rendering of a row of luxury townhouses along a street

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