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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

(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.

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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Freddie Mac Posts 45% Net Drop

Mortgage giant sees $320 million loss on new mortgages in Q2

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Freddie CEO Dismissed Bad Omens for Years

Execs charge Syron was warned of disaster

Fannie/Freddie: It's Bad, but It Could Be Worse

Regulation helped stave off real disaster, writes Krugman

Freddie Mac Chief: Housing Market Will Get Worse in 2008

Tells investors to expect losses in fourth quarter

Ex-Banker: Yeah, Collapse Was Our Fault

So why haven't homeowners been bailed out?

Feds Sue Big Banks Over Mortgages

US accuses them of dodging due diligence as crisis fallout spreads

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Freddie Mac Posts 45% Net Drop

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OTHER STORIES ON OUR RADAR

Related Links

subprime mortgages • mortgage • finance • Freddie Mac • Richard Syron • financial crisis

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Freddie CEO Dismissed Bad Omens for Years

Execs charge Syron was warned of disaster

Fannie/Freddie: It's Bad, but It Could Be Worse

Regulation helped stave off real disaster, writes Krugman

Freddie Mac Chief: Housing Market Will Get Worse in 2008

Tells investors to expect losses in fourth quarter

Ex-Banker: Yeah, Collapse Was Our Fault

So why haven't homeowners been bailed out?

Feds Sue Big Banks Over Mortgages

US accuses them of dodging due diligence as crisis fallout spreads

About Us

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Newser By Users

Community

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More News

What is Newser?