Freddie Mac reports $6.3 billion Q3 net loss
07 Nov 2009
Freddie Mac, the largest provider of mortgage loans in the US, reported a third quarter 2009 net loss of $6.3 billion (or $1.94 per diluted common share), including a dividend payment of $1.3 billion to the US Treasury on its senior preferred stock.
The mortgage lender had reported a net loss of $374 million (or $0.11 per share) on a net income of $768 million for the quarter ended 30 June 2009.
Net worth as of 30 September 2009 was $10.4 billion, reflecting a $8.5 billion gain in accumulated other comprehensive income (AOCI) primarily due to improved values on the company's salable securities.
Net interest income in the third quarter of 2009 stood at $4.5 billion after providing for credit losses of $7.6 billion. Net impairment of available-for-sale securities recognised in earnings was $1.2 billion.
During the third quarter of 2009, Freddie Mac said it continued to support the housing market by supporting the Obama administration's `Making Home Affordable' programme - enabling more than 78,000 borrowers (more than 88,000 outstanding as of 30 September 2009) to accept offers to modify their loans under the programme and approximately 69,000 borrowers (around 98,000 year-to-date as of 30 September 2009) to lower their payments under the Freddie Mac Relief Refinance Mortgage programme.
Freddie Mac helped approximately 26,000 additional borrowers stay in their homes or sell their properties through the company's long-standing, traditional foreclosure prevention programme, the company said in a release.
