Freddie Mac loses $6.3 billion
WASHINGTON (AP) — Freddie Mac’s losses narrowed to $6.3 billion in the third quarter, but the government-controlled mortgage finance company didn’t need a federal cash infusion.
The McLean, Va.-based company has received about $51 billion since it was seized by federal regulators in September 2008, but said it didn’t need any more money for the second-straight quarter.
“We continued to see some positive housing market developments, including higher volumes of home sales and modest increases in house prices in certain areas of the country,” the company’s new chief executive, Charles Haldeman, said in a statement Friday.
However, he cautioned, high unemployment and rising foreclosures will continue to “impede a full recovery,” and the company may need more money from the Treasury Department to stay afloat. The government reported Friday that the unemployment rate hit 10.2 percent, the highest since early 1983.
Freddie Mac’s quarterly loss works out to $1.94 per share and includes $1.3 billion in dividends paid to the Treasury Department. It compares with a loss of $25.3 billion, or $19.44 per share, in the year-ago period.
The results were driven by $7.6 billion in credit losses as the company continued to build its reserves for bad mortgages. About 3.3 percent of Freddie Mac’s borrowers are at least three payments behind on their mortgages, more than double the rate last year.
Log into MyBuffalo to post a comment
MyBuffalo is the new social network from Buffalo.com. Your MyBuffalo account lets you comment on and rate stories at buffalonews.com. You can also head over to mybuffalo.com to share your blog posts, stories, photos, and videos with the community. Join now or learn more.
Reader comments