The Real Deal Miami

Freddie reports $4.1 billion loss in Q3

November 03, 2010 02:15PM

Charles Haldeman, CEO of Freddie Mac

Freddie Mac, the second-largest provider of U.S. residential mortgage funding, said today that ongoing weakness in the housing market resulted in a $4.1 billion third quarter net loss, following a $6 billion hit in the second quarter, Fox Business reported. The third quarter loss included a $1.6 billion dividend payment on senior preferred stock purchased by the Treasury. Freddie has requested $100 million from the Treasury under its preferred stock purchase agreement, which would increase the total draws to $64.2 billion. “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,” said Charles Haldeman, CEO of Freddie Mac.”We believe that it will be a considerable time until the housing market has a sustained recovery.” [Fox Business]