First-Quarter Loss for Freddie Mac Less than Expected
The second-biggest provider of funding for U.S. residential mortgages, Freddie Mac, reported a loss that was narrower than analysts estimated. Additionally, the company said it will raise $5.5 billion in capital to help overcome rising credit costs.
The company said it lost $151 million, or 66 cents per share in the quarter, compared with a $133 million, or 35 cents per share loss in the same period a year earlier. It is coming off a record $2.5 billion loss in the fourth quarter.
Chief Executive Officer Richard Syron said in a statement the quarter was "better'' than the previous two periods as expenses declined, the company boosted market share and revenue rose to $1.53 billion. Freddie Mac and Fannie Mae agreed to raise capital to overcome losses from loan delinquencies. Fannie Mae, Freddie Mac's bigger competitor, last week posted a larger-than-expected $2.19 billion loss for the quarter and raised $6 billion.
"Freddie Mac on the whole had a better first quarter than what we experienced in the third and fourth quarters of last year,'' Syron said in the statement.
Published on May 14, 2008
Are you retail Agent Looking for a Quote?