Sunday, November 7, 2010

Freddie Mac Reports Loss and Takes Draw From Treasury

Freddie Mac, the provider of residential mortgage financing, said on Wednesday that weakness in housing led to a third-quarter loss of $4.1 billion and another draw from the Treasury to maintain its positive net worth.

Freddie Mac’s loss included a $1.6 billion dividend payment on senior preferred stock purchased by the Treasury since the financial crisis and housing slump pushed the mortgage buyer into conservatorship in late 2008.

It has requested $100 million from Treasury under its preferred stock purchase agreement, which would increase the total draw to $64.2 billion.

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