Recent moves by the White House suggest that the US may be nearing a settlement with Fannie Mae and Freddie Mac shareholders, says Dick Bove.» Read More
Freddie Mac, one of the nation's biggest buyers of subprime mortgages, is announcing dramatically tougher standards for purchasing these loans in the secondary market, according to CNBC's Steve Liesman.
The report by Moody's Investors Service about "prime" loans came amid mounting concern about "subprime" borrowers, who have weaker credit histories.
The loss was a contrast to the $880 million gain the company reported for the third quarter of 2005. Freddie said that its business was very sensitive to interest rate fluctuations and that the third-quarter loss came after gains in the first half of the year.