Freddie Mac posts $2.5 billion 3Q loss, asks for another $100 million
Freddie Mac narrowed its third-quarter loss and plans to ask the Treasury for another $100 million. The government-sponsored entity lost $2.51 billion for the three months ended Sept. 30, which is less than the $5.41 billion loss from a year earlier. The company expects to receive the Treasury funds before the end of the year and it will push "the aggregate liquidation preference of the senior preferred stock" to $64.2 billion. Freddie Mac repaid $1.56 billion to the Treasury during the third quarter, pushing its loss for the period to $4.07 billion. The mortgage giant said it helped more than 63,000 borrowers avoid foreclosure during the third quarter, despite suspending the process for a bit to review procedures in the wake of the robo-signing debacle. "As we near the end of 2010, the housing market remains fragile, and has recently come under renewed pressure from slowing economic growth, weaker employment and foreclosure uncertainties," Freddie Mac Chief Executive Charles Haldeman Jr. said. "We believe that it will be a considerable time until the housing market has a sustained recovery." Freddie Mac recorded $3.73 billion of loan loss provisions during the third quarter down from $5.03 billion the previous quarter and $7.97 billion a year earlier. A few weeks ago, the Federal Housing Finance Agency projected Freddie Mac and its larger sister Fannie Mae could cost the Treasury between $221 billion in a best-case scenario and $363 billion if the economy recedes again through 2013. Write to Jason Philyaw.