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The government-sponsored enterprise is working to rebuild partnerships with church organizations and housing financing agencies as part of a broader effort to make owning a home affordable for low- and moderate-income families.
November 2
Freddie Mac posted a third quarter loss of $501 million, its first quarterly loss in four years, but the government-sponsored enterprise will not request a draw from the U.S. Treasury.
The McLean, Va., company's third-quarter loss compared with net income of $2.8 billion a year earlier. The third-quarter loss was the result of the difference between generally accepted accounting principles and the company's use of derivatives.
Donald Layton, Freddie's CEO, said the company's fluctuations in derivatives gains and losses have created "income volatility in our quarterly financial statements," which reduced after-tax earnings in the third quarter by an estimated $1.5 billion as interest rates declined significantly.
In the second quarter, Freddie had the opposite result, with a $1.5 billion earnings gain, as interest rates rose.
Freddie and Fannie Mae were put into conservatorship in 2008 during the financial crisis. Freddie has paid $96.5 billion in dividends to the Treasury as of September 30, more than the $71.3 billion in bailout support it has received from taxpayers.
