Freddie Mac Posts 45% Net Drop

Mortgage giant sees $320 million loss on new mortgages in Q2
By Sam Gale Rosen,  Newser Staff
Posted Aug 30, 2007 9:51 AM CDT
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)
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(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.