Freddie Mac net profit tumbles as defaults rise

[Joanne98]

Source: Reuters

WASHINGTON (Reuters) - Freddie Mac (FRE.N: Quote, Profile, Research), the nation's second-largest source of home loan funding, said on Thursday its second-quarter net income fell 45 percent from a year earlier as more borrowers defaulted on their loans.

While the $764 million in net income fell sharply from the $1.4 billion last year, it reverses three quarters of losses as the business of guaranteeing home mortgages grew.

Chief Financial Officer Buddy Piszel said failing loans due to the deteriorating housing market were largely responsible for $600 million in costs for the quarter.

In light pre-market trading, Freddie shares were down 4.7 percent to $60.25.




Read more: http://www.reuters.com/article/ousiv/idUSN3041148320070830

[TexasLawyer]

1. not good

Freddie buys up the less risky non-sub-prime fixed-rate mortgages.

[Joanne98]

2. I have a Freddie Mack mortgage. I thought they were no 1!