Freddie Mac Announces Quarterly Loss for the First Time in Four Years
Freddie Mac reported losses of $475M in Q3, its first loss in four years, after earning $4.17B in the prior-year quarter, a steep one-year decline.
The mortgage buyer attributed the losses to the marking-to-market of derivatives as interest rates declined, reports MarketWatch.
The Federal Housing Finance Agency said more losses were possible for both Freddie Mac and Fannie Mae, saying interest rate volatility could put both at risk of "quarterly losses that could result in draws going forward," announced FHFA Director Mel Watt. [MW]