McLean-based Freddie Mac (OTC: FMCC) a key player in what led to a national housing crisis, reversed course as economist and general sentiment hoped for a recovery in the housing market.
The quasi-government agency in Tysons Corner, Va, posted a net loss of $4.4 billion. The company said the net interest income of $4.6 billion was more than offset by derivative losses of $4.8 billion and provision for credit losses of $3.6 billion.
Freddie Mac included the $1.6 billion quarterly dividend payment to U.S.Treasury Department with the net loss of $4.4 billion for a total net worth deficit of $6 billion.
The third quarter 2011 loss compares with a second quarter 2011 net loss of $2.1 billion
Non-performing assets also increased to $127.9 billionor 6.6 percent of total mortgage portfolio at the end of September 30, 2011 versus $123.9 billion, or 6.4 percent of the portfolio at the end of June 30, 2011.
“The weak labor market and fragile economy continue to weigh heavily on the single-family market, causing many potential buyers to sit on the sidelines or opt to rent despite high affordability and record low mortgage rates,” commented Freddie Mac Chief Executive Officer Charles E. Haldeman, Jr.