Freddie Mac Reports 2011 Net Loss Of $5.3 Billion

Posted by Orb Staff on March 09, 2012 No Comments
Categories : Residential Mortgage

11081_87626296 Freddie Mac Reports 2011 Net Loss Of $5.3 Billion Freddie Mac reported a net loss of $5.3 billion for 2011, down from its 2010 net loss of $14 billion. However, the ailing government-sponsored enterprise (GSE) will require a new Department of the Treasury draw request of $146 million to cover its operating expenses; last year, it had a total of $7.6 billion in Treasury draw requests.

Freddie Mac also reported net income of $619 million for the fourth quarter of 2011, which is an improvement from its net loss of $4.4 billion for the third quarter. The GSE says that it helped over 208,000 borrowers avoid foreclosure, with ‘approximately eight out of 10 of these borrowers keeping their homes.’

‘Freddie Mac remained a pillar of support for the nation's housing finance system and a steadfast partner with American homeowners and renters in 2011,’ says Freddie Mac CEO Charles E. Haldeman Jr. ‘We continue to be a vital source of mortgage funding – last year alone we provided over $360 billion of liquidity to the market. This enabled nearly 2 million American families to buy or rent a home, including 1.2 million homeowners who were able to refinance their mortgages and save approximately $2,300 in annual interest payments. We also helped to stabilize communities across the country by assisting more than 208,000 borrowers to avoid foreclosure and selling more than two-thirds of our real estate owned properties to owner-occupants.’

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