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addition to other features. Through the tool, users can also create as many loan scenarios as desired to evaluate how adjusting certain factors will affect the borrower's payment. In addition, users can easily compare the cost of Genworth MI against insurance coverage from the Federal Housing Administration. Lenders can view the Richmond, Virginia-based company's new tool online. Freddie Mac Reports Annual Profit of $11B Freddie Mac pulled in a net profit of $11 billion for 2012, a significant increase from the annual net loss of $5.3 billion in 2011. In addition, the McLean, Virginia-based GSE's fourth-quarter net income climbed to $4.5 billion, up from $2.9 billion in the third quarter of last year. According to the company's earnings release, the increase reflects a decrease in delinquent single-family loans, improved national home prices, and a higher income tax benefit. As of the end of December 2012, the GSE's single-family serious delinquency rate was 3.25 percent, down from 3.58 percent at the end of December 2011. "It's clear from our earnings that the housing market has turned a corner and that our work to minimize legacy losses and build a strong new book of business is paying off," said Freddie Mac CEO Donald H. Layton in a release. Once again, the GSE also did not require a draw from Treasury and paid a $1.8 billion quarterly dividend to Treasury. Thus far, Freddie Mac reported it has paid $23.8 billion in cash dividends to Treasury, which represents 33 percent of its cumulative draws. As for contributions to the housing market, Layton said, "In 2012, we helped 2.5 million families to buy, refinance, or rent a home and another 170,000 to avoid foreclosure—bringing the total to nearly 10 million since the start of the housing crisis. We continue to work with our regulator, our customers, and the industry to support the housing market and build a stronger mortgage finance system for the nation." In 2012, Freddie Mac's refinance purchases totaled $351 billion, accounting for 82 percent of the company's single-family mortgage purchase volume for last year. The GSE also reported it purchased 434,000 Home Affordable Refinance Program (HARP) loans totaling $86.9 billion, more than doubling the purchase amount in 2011. 108 Freddie Mac also completed 70,000 loan modifications last year. Housing Still Has 'Substantial' Room to Grow, GSE Says Housing may not be where it used to be, but on the upside, Freddie Mac suggested this indicates there's still plenty of room for the industry to grow. "[T]he level of housing activity is still near historic lows. This means that there is still room for substantial growth in housing and housing-related industries before we return to a more normal environment," Freddie Mac stated in its latest economic and housing outlook. This optimistic viewpoint was reflected in the GSE's forecast for housing in 2013, especially for housing starts. Freddie is projecting housing starts in 2013 to increase to 950,000 units, or to be about 22 percent higher than 2012 levels. For 2014, the GSE expects another 26 percent increase in annual starts, bringing the total to about 1.2 million. "Across the nation, most local housing markets have room for sustainable growth, particularly in home construction and sales. As the broader economy heals, expect to see more good news with house prices continuing their recent upward trend, and home sales and housing starts continuing to post strong growth rates," said Frank Nothaft, Freddie Mac VP and chief economist. Freddie is also expecting home prices to increase 3 percent in 2013 and 2014. The report gave particular attention to price trends in metros where there were substantial increases through 2006, followed by even more severe declines in home values. According to the report, it's in many of these metros where there is much room for growth as the markets return to a more normal state. As home prices recover, sales should also stand to benefit. "The effect on sales should be accelerated as house price recovery allows homeowners who have been forced on the sidelines by negative equity to get back into the market," the report stated. Home sales are projected to rise to an annual rate of $5.45 million in 2013 and $5.8 million in 2014. Overall, the housing market is also "showing some love" through its positive contributions to GDP growth, a first since 2005, Freddie Mac said. In 2012, residential fixed investment added 0.3 percent to GDP growth. Furthermore, Freddie Mac says housing may perhaps add close to 0.5 percentage points to GDP growth in 2013. STAT INSIGHT $227,500 Median list price in Norfolk, Virginia Beach, and Newport News, Virginia, at the end of February. Source: Realtor.com Washington rank: 23 90+ Day Delinquency Rate Foreclosure Rate January 2013 3.50% Unemployment Rate 2.86% 7.5% year ago 5.06% 1.77% 8.5% year-over-year change -30.8% 61.3% -11.8% Top County Grays Harbor CounTy 90+ Day Foreclosure Delinquency Rate Rate January 2013 4.17% 4.35% year ago 5.82% 2.35% year-over-year change -28.3% 85.0% Top Core-based statistical area aberdeen, Wa 90+ Day Delinquency Rate Foreclosure Rate January 2013 4.17% 4.35% year ago 5.82% 2.35% year-over-year change -28.3% note: 85.0% The 90+ Day delinquecy rate is the percentage of outstanding mortgage loans that are 90plus days delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the January 2013 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary January 2013 figures released by the Bureau of Labor Statistics. All other data courtesy of Lender Processing Services.

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