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Thursday, February 24, 2011

Freddie Mac reports smaller loss, Expects falling house prices, Requests $500 Million from Treasury

by Calculated Risk on 2/24/2011 04:34:00 PM

From Freddie Mac: Freddie Mac Fourth Quarter 2010 Financial Results

Freddie Mac today reported a net loss of $113 million for the quarter ended December 31, 2010, compared to a net loss of $2.5 billion for the quarter ended September 30, 2010. For the full-year 2010, the company reported a net loss of $14.0 billion, compared to a net loss of $21.6 billion for the full-year 2009.
[The FHFA] as Conservator, will submit a $500 million draw request to Treasury ...

“As we begin 2011, the housing recovery remains vulnerable to high levels of unemployment, delinquencies and foreclosures,” [Freddie Mac Chief Executive Officer Charles E. Haldeman, Jr.] said. “Nevertheless, certain economic indicators showed improvement in late 2010. While this trend offers some encouragement, we expect national home prices to decline this year as housing will continue to take some time to recover."
Freddie Mac reported that REO inventory was at 72,079 at the end of Q4, up 60% from Q4 2009 (45,047), but down slightly from Q3 2010.