As the performance of commercial real estate (CRE) continues to slide, so does the commercial mortgage-backed securities (CMBS) market, potentially adversely affecting repayment commitments to bond holders. Undeterred by current market conditions, and perhaps spurred by it, CMBS analytics firm Trepp just purchased CRE analytics firm Foresight Analytics for an undisclosed amount.

Susan Persin, co-founder of privately-held Foresight, said: “This transaction provides Foresight with the scale and resources we need to reach a broader commercial real estate audience to provide more timely and relevant analysis on the shifting CRE landscape.”

Trepp a regular provider of CMBS analytics to HousingWire, is headquartered in New York, with a client base focused on broker dealers, commercial banks, asset managers, and investors.

The purchase of Foresight provides Trepp a geographical outlet on the West Coast as well as access to its commercial, and residential, market consulting services and forecasting clients, primarily institutional investors, lenders and developers.

"Trepp is committed to expanding the value delivered to our clients,” said Annemarie DiCola, CEO of Trepp. “Foresight has terrific name recognition and great respect in the marketplace. We expect that they will quickly add even more depth to our offerings.”

Write to Jacob Gaffney.

Freddie Mac (FRE: 0.00 N/A) posted a loss of $7.8bn, or $2.39 per share, in Q409, bringing the government-sponsored enterprise’s (GSE) total loss in 2009 to $25.7bn.

But Freddie said its net worth as of December 31, 2009 was $4.4bn, and no additional funding was required from the Treasury Department under the terms of the purchase agreement for the fourth quarter.

The Q409 loss includes a $1.3bn dividend payment to the Treasury on the senior preferred stock it holds. Net interest income for the quarter was $4.5bn, but results were also impacted by a $3.4bn write-down of the carrying value of the company’s Low-Income Housing Tax Credit (LIHTC) investments and $7.1bn in credit-related expenses.

“We start 2010 with some early signs of stabilization in the housing market, with house prices and home sales likely nearing the bottom sometime in 2010. We expect that low mortgage rates, relatively high affordability and the homebuyer tax credit will help continue to fuel the recovery,” said Freddie Mac CEO Charles Haldeman, Jr.

In Q309 Freddie Mac lost $6.7bn, or $2.06 per share. In Q408, Freddie lost $23.9bn, capping off 2008’s total loss of $50.1bn, or $34.60 per share.

“Still, the housing recovery remains fragile, with significant downside risk posed by high unemployment and a potential large wave of foreclosures. That's why our commitment to help struggling homeowners is steadfast — and we will continue working to find ways to keep families in their homes through both our own programs and the Obama Administration's Making Home Affordable Program,” Haldeman added.

At the end of 2009, Freddie said it helped 272,000 borrowers either stay in their homes or sell their properties through the company’s foreclosure avoidance programs and the Making Home Affordable Modification Program (HAMP). At year’s end, Freddie had 129,380 loans currently in HAMP workout plan trial periods. Freddie also was involved in the refinancing of $379bn of single-family loans, creating an estimated $4.5bn in annual interest savings for borrowers, including 169,000 borrowers participating in the Freddie Mac Relief Refinance Mortgage program.

Freddie’s real estate owned (REO) operations lost $88m in Q409 , compared to income of $96m in Q309, due to lower recoveries of property write-downs in the fourth quarter compared to the third quarter. REO operations lost $307m for full-year 2009, compared to a $1.1bn loss in 2008. Freddie attributed the smaller loss to stabilizing home prices in 2009, as opposed to 2008, which was marked with a sharp decline in prices.

Write to Austin Kilgore.

The author held no relevant investments.

A trade organization for real estate agents, the National Association of Realtors (NAR) is recommending to Congress that the government-sponsored enterprises (GSEs) Fannie Mae (FNM: 0.00 N/A) and Freddie Mac (FRE: 0.00 N/A) be converted into non-profit secondary market authorities.

NAR proposed that the current private profit and public loss structure be removed while regulators and Congress consider restructuring plans for the GSEs. NAR added that Fannie and Freddie are “best positioned” to become government authorities, and they should provide a flow of capital into the secondary market regardless of the volatility of the mortgage markets.

But they would not be federal agencies, according to the proposal. Instead, the authorities would function as “self-sustaining” organizations removed of Congressional funds and profit motives.

However, NAR called for the government to guarantee the businesses of the authorities through the use of mortgage insurance on products with a loan-to-value (LTV) ratio of 80% or higher and mortgage-backed securities (MBS) fees.

“NAR believes that any organization with a private profit and public loss structure, as the GSEs are presently structured, is inherently flawed,” according to the proposal.

All excess revenue would be reinvested to accumulate capital in strong markets in order to spark rebounds in weaker markets. To lure private market participation, NAR also proposed a guarantee from the Federal Deposit Insurance Corp.

An upcoming House Committee on Financial Services hearing on the future of the GSEs was rescheduled. The Committee chairman Barney Frank recently called for the abolition of Fannie and Freddie and designing a whole new system of housing finance.

Write to Jon Prior.

Lowe’s Companies (LOW: 26.91 -0.15%), the world’s second largest home improvement retailer, reported profits of $205m, or $0.14 per share, for its fiscal fourth quarter ending January 29.

The Q409 results are up 26.5% from one year ago, when Q408 net earnings were $162m, or $0.11 per share. For the fiscal year ending January 29, 2010, net earnings were $1.78bn, or $1.21 per share, down 18.8% from one year ago, when North Carolina-based Lowe’s earned $2.195bn. In Q309, Lowe's reported net earnings of $344m.

Sales increased 1.8% to $10.2bn, up from $10bn in Q408. For the entire fiscal year, sales declined 2.1% to $47.2bn. Comparable store sales declined 1.6% in Q409 and 6.7% for fiscal 2009. Lowe’s opened 11 new stores during the quarter, bringing the company’s total to 1,710 stores in the US and Canada.

“Our fourth quarter results, including sales and earnings that exceeded our guidance, suggest the worst of the economic cycle is likely behind us,” said Lowe's chairman and CEO Robert Niblock. “While the psychological impact of falling home prices and an uncertain employment picture continue to weigh on consumers, improving comparable store sales trends, including improvement in many bigger-ticket, project categories, provides an encouraging sign that consumers are gaining the confidence to take on more discretionary projects.”

During the quarter, Lowe’s board of directors initiated a repurchase of $500m, or 21.9m shares, of the company's common stock, a power that expired at the end of the 2009 fiscal year. Over the next three years, Lowe’s said it intends to purchase up to $5bn in common stock, subject to market conditions and will be made from time to time either in the open market or through private transactions.

In its fiscal year Q110, Lowe’s plans to open 11 stores and said sales should increase 1% to 3%, but said comparable store sales will range from a 2% decline to flat. For this fiscal year, Lowe’s projects earnings per share of $1.30 to $1.42.

Rival Home Depot (HD: 44.87 -0.18%) posted a $342m profit in its fiscal year fourth quarter that ended January 31.

Write to Austin Kilgore.

The author held no relevant investments.