Updated to reflect the following correction. The dividend payment to Treasury is $30.4 billion.NEW YORK ( TheStreet) -- Freddie Mac ( FMCC) said it will pay the Treasury $30.4 billion in dividends after posting a profit for the eighth consecutive quarter. The bailed-out housing giant said pre-tax income jumped to $6.5 billion from $4.9 billion a year earlier. The profit was the second largest in history. A loan- repurchase settlement with three banks added $0.9 billion to pre-tax income. Net income came in at $30.5 billion, largely due to a $23.9 billion release in the valuation allowance on deferred tax assets. Freddie Mac finished the quarter with a net worth of $33.4 billion. As per the terms of the revised bailout agreement, the company is required every quarter to pay all of its earnings, less a minimal capital cushion of $3 billion as dividends to the Treasury. The payouts do not constitute a repayment of the government bailout money. The Treasury continues to maintain a liquidation preference of $72.3 billion on senior preferred stock. Including the December payment, the company will have paid $71.345 billion in dividends to the Treasury, slightly higher than the $71.336 billion cumulative draws it has received from the government. Shares of Freddie Mac were rising more than 3% in pre-market trading. Fannie Mae ( FNMA) also reported earnings on Thursday. Third quarter profit jumped to $8.7 billion from $$1.8 billion a year earlier. The company will pay $8.6 billion to the Treasury as dividends. Fannie Mae and Freddie Mac ( FMCC) were taken into conservatorship in 2008. In the wake of the crisis, when private capital disappeared, the agencies stepped in to fill the void. As a result, the companies, along with the Federal Housing Administration, guarantee more than 80% of freshly originated mortgages. Both companies have also returned to profit on the back of improving home prices and declining delinquencies. The pre-crisis loans that were made under lax credit standards now account for a smaller portion of their business. Loans originated after 2009 are considered pristine. Most policymakers are keen on winding down the agencies and are calling for a greater role of private capital in the market. However, there is disagreement on whether the government should continue to maintain some presence in the market in the form of a limited guarantee.