Freddie Mac Reports Quarterly Profit

Posted by Orb Staff on August 10, 2009 No Comments
Categories : Residential Mortgage

http://www.freddiemac.com/news/archives/investors/2009/2009er-2q09.html][u]Freddie Mac[/u][/link] has reported a net income of $768 million for the quarter ending June 30, compared to a net loss of $9.9 billion for the quarter ending March 31. After the dividend payment of $1.1 billion on its senior preferred stock to the U.S. Department of the Treasury, Freddie Mac reported a net loss per diluted common share of $0.11 in the second quarter, compared to a net loss per diluted common share of $3.14 in the first quarter. Freddie Mac had a positive net worth of $8.2 billion on June 30. According to Freddie Mac, no additional funding was required from the Treasury Department under the terms of the Senior Preferred Stock Purchase Agreement for the second quarter. ‘We are pleased that our financial results allowed us to finish the quarter with a positive net worth, meaning we will not need to request any additional financial support from the government at this time,’ says Freddie Mac interim CEO John Koskinen. ‘However, we recognize that our financial results for the quarter include one-time accounting adjustments and mark-to-market gains that are subject to change in future periods. While we are seeing some early signs pointing to a housing recovery – including a modest uptick in house prices in some markets – our outlook remains cautious due to rising foreclosures, growing unemployment, tight lending standards and buyers' reluctance to re-enter the market.’ SOURCE: Freddie

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