- Share Trading on London Stock Exchange Frozen
- Dubai Debt Delay Rattles Stock, Bond Markets
- Fannie Mae to Tighten Lending Standards: Report
- China Overcapacity Worsening, EU Chamber Warns
- Investing in Good Karma – and Making a Profit
- China Unveils Carbon Target Ahead of Copenhagen
- Wal-Mart Price Pressure Hurts China Workers: Report
- Black Friday to Avoid Red Ink; Greenback Gets the Blues
- Bankruptcies Jump, Hitting Highest Level in Four Years
- 4 Thanksgiving Week Buys For Your Portfolio: Market Pros
- There's a 'Great Chance' For a Double-Dip Recession: Strategist
- Revenge of the Gangsta Nerds
- Will TCU See The "Flutie Effect?"
- Retail Earnings and Sales to Improve in Q4: Analyst
- Consumers Catching the Holiday Spirit
- It's Beginning To Look A Lot More Riskless
- Crescenzi: Claims Level Suggests End to Job Losses
- Hedge Funds Take Early Lead in Warren Buffett's 'Big Bet'
MOST SHARED
- The Executive Job Search
- Chinese Overcapacity is Worsening, EU Chamber Warns
- Salvation Army's Kettles Now Credit Card-Ready
- Topless Business Is Taking Off
- Where Do Pardoned Turkeys Go?
- US Mint to Suspend American Eagle Gold 1-Ounce Coins
- Oil Friday
- Trader Talk
- Activision Prepares to Double Dip on ‘Modern Warfare 2’
Text Size 
Freddie Mac, the No. 2 U.S. mortgage finance company, on Thursday reported an unexpected net loss of $211 million for the first quarter, citing a souring outlook for mortgage credit risk that widened credit spreads.
The loss contrasts with a net gain of $2 billion the company reported for the same period in 2006.
The company reported a net share loss of 46 cents in the first quarter. Excluding unusual items, Freddie Mac [FRE
Loading...
()
] was expected to show a profit of $1.09 per share in the first quarter, according to Reuters Estimates.
With this report, Freddie Mac returns to timely quarterly financial reporting for the first time since its 2003 accounting scandal, which led to a $5 billion restatement of past earnings.
The company said mark-to-market losses tied to the wider credit spreads on the mortgages' assets in its portfolio was the main driver of the first-quarter loss.
Freddie Mac also said its fair value, before capital transactions, fell by about $300 million because of the credit spread widening.
"Overall, Freddie Mac's credit guarantee portfolio continued to exhibit credit characteristics that were better than historical averages as measured by current delinquencies, loan-to-value rations and charge-offs," the company said in a release.
Print
Email
- For nearly three decades, these on-call experts have been dishing advice on how to – and not to – cook turkey.
- Eric Schmidt pledges to create a virtual copy of the Iraq National Museum at Google’s expense.
- Bill Griffeth is taking a leave of absence from CNBC and Power Lunch for a year. Here's a message from Bill.
- More shoppers than ever plan to comparison-shop this season. Who will benefit?
- It may be the most unusual guide to business you'll read.
- How can you get out of debt and back on the road to recovery? Follow these ten steps.
Data is a real-time snapshot *Data is delayed at least 15 minutes