Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Freddie Mac needs another $10.6 billion

By Tami Luhby, senior writer

NEW YORK (CNNMoney.com) -- Freddie Mac on Wednesday requested another $10.6 billion handout from the federal government.

The housing finance company, which reported an $6.7 billion quarterly loss, was put into conservatorship by the government during the height of the financial panic in September 2008 along with its twin Fannie Mae (FNM, Fortune 500). Freddie also paid a $1.3 billion dividend payment to Treasury, which received stock at the time of the takeover.

Freddie has already received $50.7 billion from the Treasury Department. Fannie Mae has so far gotten $76.2 billion.

Since the housing collapse began in 2008, Freddie and Fannie have been propping up the mortgage market. The Obama administration, which has used the companies to support its foreclosure prevention efforts, is currently examining the future structure of the firms.

The two companies essentially have been given a blank check from the government since Treasury in December lifted a $200 billion limit on the backstop for each.

Freddie suffered a $10 billion loss the first quarter a year ago and a fourth-quarter loss of $6.5 billion. But an accounting change this year makes comparisons difficult.

One bright spot: The single-family delinquency rate at Freddie (FRE, Fortune 500) dipped to 4.13% as of March 31, down from 4.2% in February. That's still up from 3.98% at the end of 2009.

The McLean, Va.-based company said it helped more than 71,000 families avoid foreclosure during the quarter and financed more than 390,000 homes and 50,000 units of rental housing. It also helped refinance $68 billion of single-family loans.

Chief Executive Charles Haldeman Jr. said he was cautiously optimistic about the future.

"Though more needs to be done, we are seeing some signs of stabilization in the housing market, including house prices and sales in some key geographic areas," Haldeman said. "But as we have noted for many months now, housing in America remains fragile with historically high delinquency and foreclosure levels, and high unemployment among the key risks." To top of page

Index Last Change % Change
Dow 17,798.49 -14.90 -0.08%
Nasdaq 5,127.53 11.39 0.22%
S&P 500 2,090.11 1.24 0.06%
Treasuries 2.22 -0.01 -0.31%
Data as of 8:01pm ET
Company Price Change % Change
General Electric Co 30.36 0.00 0.00%
Bank of America Corp... 17.48 0.04 0.23%
HP Inc 12.61 -0.03 -0.24%
Pfizer Inc 32.79 -0.08 -0.24%
Walt Disney Co 115.13 -3.54 -2.98%
Data as of 1:01pm ET


Sumner Redstone, the media mogul who controls Viacom and CBS, is at the center of a legal dispute. One side says he is practically unable to make decisions for himself. The other says he is "engaged and attentive." More

Gold futures hit a low of $1,051.60 an ounce, yet another reminder of just how out of favor gold has become since its all-time high of nearly $1,890 in 2011. More

Watsi crowdfunds donations to cover healthcare costs of those in need. And it's seeing a surprising trend: micro-donations via the popular Chinese social networking app, WeChat. More

Hive, a startup funded by the UN, is tasked with getting more Americans engaged with the refugee crisis. More

Facebook just increased the amount of paid time off new dads working at its international offices can take. More