Freddie Mac reports $9.9 billion loss
- May 14, 2009
McLean-based Freddie Mac announced it had lost $9.9 billion during the first quarter, compared with a loss of $151 million during the same period last year.
The mortgage finance company attributed the loss to credit-related expenses stemming from declining home prices, increasing unemployment and a drop in consumer confidence.
“This was another difficult quarter for Freddie Mac, as declining home prices and the weak economy continued to take a toll on our results,” Freddie Mac interim CEO John Koskinen said in a statement. “Despite these challenges, we continued to play a leading role in the housing recovery by injecting $148 billion of liquidity into the market, helping to drive mortgage rates to historic lows and preventing foreclosures for 40,000 homeowners.”
The company’s results bring the company’s net worth to a deficit of $6 billion as of March 31, and the director of the Federal Housing Finance Agency (FHFA) plans to seek $6.1 billion for Treasury funding to eliminate the deficit. It expects to receive the money by June 30.
Last September, Freddie Mac and Fannie Mae, another government-sponsored enterprise, were put into receivership by the federal government