Freddie Mac posts loss of $2.5 billion
From Times Wire Services
Freddie Mac, the second-biggest provider of U.S. residential mortgage funding, said its fourth-quarter loss widened to $2.5 billion as the housing crisis worsened.
The company also warned Thursday that it expected to lose billions of dollars in coming quarters as more borrowers fell behind on mortgages guaranteed by the government-sponsored company.
Fannie Mae, Freddie Mac’s larger rival, on Wednesday reported a $3.6-billion loss, also because of rising mortgage defaults.
The government has loosened restrictions on the companies in the hope they will be better able to prop up the housing market. But their ability to do so could be limited by the companies’ staggering losses and desire to protect capital.
