NO ONE EVER LOST MONEY BETTING ON THE AMERICAN APPETITE FOR HOME OWNERSHIP:

Freddie Mac FMCC +1.43% reported $5 billion in second-quarter earnings, the second-largest quarterly profit in the company's history and the latest reminder of how the gains at Freddie and its larger sibling, Fannie Mae, FNMA +1.99% could reshape the debate over their futures.

The earnings compare with a year-earlier gain of $3 billion and marked the seventh straight profit for the mortgage-finance company. Rising home prices, falling mortgage delinquencies and higher loan fees have marked a sharp turnaround from a four-year period in which the company suffered heavy losses that forced it to seek large infusions from the U.S. Treasury.

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