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July 25, 2008 5:02:43 PM CDT

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Freddie Mac Posts 45% Net Drop

Posted Aug 30, 07 9:51 AM CDT in US,  Business 

(Newser) – Freddie Mac posted a 45% drop in net income for the second quarter, and said the outlook wasn't rosy for the third. The home-mortgage financier was hit with a $320 million loss on new mortgages. Freddie Mac doesn't buy subprimes directly, but is still affected by the general mortgage turmoil.

In fact, Freddie Mac may be poised to come out ahead after the subprime dust clears. "We are well positioned relative to the overall marketplace to weather the ongoing disruptions in the mortgage markets and emerge as an even stronger player," says chief exec Richar Syron.

Source Wall Street Journal

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Richard Syron, chairman and CEO of Freddie Mac, answers a reporter's question before talking about the sub-prime lending crisis and its effect on the housing market during an address entitled "Strategies...   (Associated Press)
Richard Syron, chairman and CEO of Freddie Mac, talks about the sub-prime lending crisis and its effect on the housing market during an address entitled "Strategies to Keep People in Their Homes" at the...   (Associated Press)
A house is for sale Friday, June 1, 2007 in Oldwick, N.J. Mortgage giant Freddie Mac reported Thursday June 7, 2007 that 30-year, fixed-rate mortgages averaged 6.53 percent this week. That was up sharply...   (Associated Press)
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