Posted on 08/30/2007 7:20:03 AM PDT by Hydroshock
WASHINGTON (AP) - Freddie Mac (NYSE:FRE) , the nation's second-largest buyer and guarantor of home mortgages, said Thursday its second-quarter profit fell 45 percent as it had to record larger provisions on its books for bad loans.
The government-sponsored company, which is returning to normalcy after an accounting scandal four years ago, said it earned $764 million, or $1.02 per share for the three months ended June 30. That contrasted with profit of $1.4 billion, or $1.93 a share, a year ago.
Revenue rose 4.8 percent to $2.26 billion from $2.15 billion in the quarter a year ago. Freddie Mac makes money from interest payments on mortgages it holds on its books, and fees from insuring mortgages sold to investors.
The company said it recorded a $320 million provision for credit losses in the second quarter due to problems with loans originated this year and last year, amid a deepening mortgage crisis nationwide that has bankrupted more than 50 lenders.
The earnings results missed Wall Street expectations, with analysts surveyed by Thomson Financial expecting a profit of $1.16 per share on revenue of $1.69 billion.
(Excerpt) Read more at money.cnn.com ...
Your thoughts
Their “profit” is down 45%... but they are still making a profit! We are ALL going to die!
LLS
How tight do you want them to get? Should people be allowed to borrow money at all?
Freddie Mac is NOT hurting for money. I worked there for 5 years from 2000-2005. The office complex in McLean is pure luxury in terms of office space. They are making money hand over fist. The parking garage looks like the European Auto Show.
At least 5% down, with good credit, 10% with ok credit, 20% with subprime credit. That is how tight.
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