Housing shouldn’t look at any color but the color of money

Housing shouldn’t look at any color but the color of money

People with bad credit and bad habits should be squeezed out of housing

Who is Nat Hardwick?

Former LandCastle Title CEO owns NASCAR team, rubs elbows with PGA pros

Lawsuit alleges former LandCastle Title CEO embezzled $30 million

Nat Hardwick allegedly used funds for private jets, gambling
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Despite Narrowed Losses, Freddie Needs $6.1 Billion

Mortgage giant Freddie Mac (FRE) posted a $9.9bn net loss -- or $3.14 per share -- in Q109, from the $23.9bn net loss in Q408. The company's refinance-loan purchase volume quadrupled since the previous quarter, but poor performance of securitized loans drove Freddie into a net worth deficit. During the quarter, Freddie purchased or guaranteed $148bn in mortgage loans and mortgage-related securities. With 30-year fixed mortgage rates near historic lows, Freddie's single-family refinancing-loan purchase volume during Q109 increased to approximately $95bn, nearly four times the refinancing volume the company experienced during Q408. Freddie saw its real estate-owned operations expenditure rise to $306m in the quarter from $291m in the fourth quarter. Higher REO disposition volumes drove the increase, officials said in the earnings statement today. Credit-related expenses of $9.1bn and $7.1bn of securities impairments on deteriorating collateral performance drove the company's massive losses. Partly offsetting the losses were net mark-to-market gains of $3.8bn on Freddie's derivative portfolio, guarantee asset and trading securities. The losses tipped Freddie into a $6bn net worth deficit between the company's assets and liabilities as of March-end. The Federal Housing Finance Agency (FHFA) acting as conservator requested $6.1bn in funding from the Treasury Department through its funding commitment. The Treasury's commitment, part of the purchase agreement entered with FHFA, was amended as of May 6 to $200bn from $100bn. After the $6.1bn draw, Freddie said $149.3bn remains in Treasury's commitment. Write to Diana Golobay at diana.golobay@housingwire.com. Disclosure: The author held no relevant investment positions when this story was published. Indirect holdings may exist via mutual fund investments.

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