Freddie Mac posts $5 billion loss

al Reuters ^ | 11/6/2009 | Al Yoon

[markomalley]

Freddie Mac (NYSE:FRE - News; NYSE:FRE - News), the second largest provider of U.S. residential mortgage funding, on Friday posted a loss of $5 billion in the third quarter and predicted it would need more government support amid a "prolonged deterioration" in housing.

Increases in the value of securities Freddie Mac held over the period helped buoy its net worth, however, erasing its need to tap government funds for a second straight quarter to stay solvent while continuing to buy and guarantee home loans.

Including a $1.3 billion dividend payment on senior preferred stock bought by the Treasury in previous quarters, Freddie Mac's third-quarter loss increases to $6.3 billion.

The home funding company's loss comes amid a rise in provisions for credit losses to $7.6 billion in the quarter, up 46 percent compared with the previous quarter, as delinquencies worsened on loans it guarantees. Provisions will remain high this quarter, it added.

"I would say we are just beginning to see the impact of the chargeoffs on their guarantee book," said Janaki Rao, vice president of mortgage research at Morgan Stanley in New York.

[markomalley]

So how's that hope and change treating you today, Fred?

[londonfog]

That is you money to be sure that minorities can live in their houses free.

[frogjerk]

Freddie Mac posts $5 billion loss

Good thing this isn't a lot of money anymore.

[Vehmgericht]

I do not see this as a problem. $5 billion? No problem. There’s plenty more than that in Obama’s “stash.”

[cranked]

...but is asking fro $15 billion more despite the $5 billion posted loss....I suppose the extra $10 billion is being siphoned off to some offshore accts, etc? =.=

[ClearCase_guy]

I haven’t heard it from the White House (yet) but I’m guessing this is “good news” though perhaps “unexpected”.

[bergmeid]

All this type of crap comes out on Friday evenings. It is getting so predictable. I’m sure that WH is behind that.

[ChessExpert]

“The losses have presented a dilemma to Congress as it wants to protect taxpayers’ money ...”

Really?

“... but is also counting on the companies to undertake foreclosure prevention efforts”

Why?

“which are significantly adding to expenses.”

Duh.

So basically, Congress got us into this mess, and refuses to get us out. Congress is still subsidizing housing regardless of the cost to current and future American taxpayers.

[Major Matt Mason]

Yes, this is the perfect time to have Freddie Mac get into the landlord business. I'm sure all of the freeloaders living in the homes they couldn't afford will keep up with all of their "rent" payments. What a joke our government is.

[Larry381]

Is this the entity that Chuck Schumer caused to go into a meltdown by shooting off his mouth (during the election)?

[pieceofthepuzzle]

Madoff defrauds people and eventually he goes to jail. Barney Frank shields Fannie Mae and Freddie Mac until they tank our banking system and rob people all over the country of their financial security and he gets to continue being the arrogant privileged jerk that he is. Justice really is blind sometimes.

[GalaxieFiveHundred]

[Domestic Church]

Round up the usual suspects and call in the ghost of Guy Fawkes.

[M-cubed]

So basically, Congress got us into this mess, and refuses to get us out. Congress is still subsidizing housing regardless of the cost to current and future American taxpayers. <<

EXACTLY!...and u know why?..because they can get elected on that wonderful bit of compassion....

but as Maggie Thatcher said....Socialism is wonderful....UNTILL u run out of OTHER PEOPLES MONEY!