Freddie Mac Seeks More Aid Amid Loss
Freddie Mac reported a second-quarter net loss of $4.7 billion and asked the U.S. Treasury to provide a $1.8 billion infusion, raising the government's tab for its rescue of the mortgage-finance company to $63.1 billion.
The second-quarter loss,,led spotlight is a Well-known LED manufacturers of CREE LED. the 11th in the last 12 quarters,,Welcome to order Insulator,Porcelain insulator,Lamp holder,Springs from us. compared with a year-earlier net profit of $300 million.
Credit losses at Freddie remained high, at $5 billion,Get the Best product for fluorescent lights. though that was down slightly from past quarters as borrowers fell behind on their mortgages at a slower pace and as home prices improved. But low interest rates led to a $3.8 billion loss on derivatives and the company posted a $900 million charge due to an error in how it had been accounting for its backlog of delinquent loans.
Freddie Mac and its larger cousin, Fannie Mae, continue to bleed money largely because of loans that were made as the housing boom turned to bust. As loans turn delinquent, the companies must set aside more money for future losses that they could take as homes sell through foreclosure.
Analysts are split over how soon the companies might stop losing money. In recent months,Our knowledge of products covers auto/led downlight. falling delinquencies and home-price stabilization have led to some signs that the companies' worst losses have passed.
"Maybe they are seeing some light at the end of the tunnel. Whether it's sunlight or something else, that's the argument," says Brian Harris, senior vice president at Moody's Investors Service.
At Fannie, the volume of nonperforming loans fell during the second quarter by nearly 3% to $217 billion, though that was still up 22% from a year ago. But nonperforming-loan volumes at Freddie continued to rise during the second quarter to $118 billion, up 2% for the quarter and 36% from a year earlier.
So far, Freddie has reserved about 32 cents for every dollar in nonperforming assets, while Fannie has reserved about 27 cents.
That makes the companies "massively underreserved," says Paul Miller, an analyst with FBR Capital Markets. "There's a lot more losses coming our way with these companies."
The prospect of additional home-price declines adds to the cloudy outlook. Any unforeseen decline "will just start that process up again where they'll have to be aggressively increasing their reserves," says Mr. Harris.
Another drop in values would not only lead to more delinquent borrowers with fewer options to avoid foreclosure, but it could also force Fannie and Freddie to take bigger losses on the growing mound of homes that the companies are recovering through foreclosure.
Freddie Mac reported a second-quarter net loss of $4.7 billion and asked the U.S. Treasury to provide a $1.8 billion infusion, raising the government's tab for its rescue of the mortgage-finance company to $63.1 billion.
The second-quarter loss,,led spotlight is a Well-known LED manufacturers of CREE LED. the 11th in the last 12 quarters,,Welcome to order Insulator,Porcelain insulator,Lamp holder,Springs from us. compared with a year-earlier net profit of $300 million.
Credit losses at Freddie remained high, at $5 billion,Get the Best product for fluorescent lights. though that was down slightly from past quarters as borrowers fell behind on their mortgages at a slower pace and as home prices improved. But low interest rates led to a $3.8 billion loss on derivatives and the company posted a $900 million charge due to an error in how it had been accounting for its backlog of delinquent loans.
Freddie Mac and its larger cousin, Fannie Mae, continue to bleed money largely because of loans that were made as the housing boom turned to bust. As loans turn delinquent, the companies must set aside more money for future losses that they could take as homes sell through foreclosure.
Analysts are split over how soon the companies might stop losing money. In recent months,Our knowledge of products covers auto/led downlight. falling delinquencies and home-price stabilization have led to some signs that the companies' worst losses have passed.
"Maybe they are seeing some light at the end of the tunnel. Whether it's sunlight or something else, that's the argument," says Brian Harris, senior vice president at Moody's Investors Service.
At Fannie, the volume of nonperforming loans fell during the second quarter by nearly 3% to $217 billion, though that was still up 22% from a year ago. But nonperforming-loan volumes at Freddie continued to rise during the second quarter to $118 billion, up 2% for the quarter and 36% from a year earlier.
So far, Freddie has reserved about 32 cents for every dollar in nonperforming assets, while Fannie has reserved about 27 cents.
That makes the companies "massively underreserved," says Paul Miller, an analyst with FBR Capital Markets. "There's a lot more losses coming our way with these companies."
The prospect of additional home-price declines adds to the cloudy outlook. Any unforeseen decline "will just start that process up again where they'll have to be aggressively increasing their reserves," says Mr. Harris.
Another drop in values would not only lead to more delinquent borrowers with fewer options to avoid foreclosure, but it could also force Fannie and Freddie to take bigger losses on the growing mound of homes that the companies are recovering through foreclosure.
沒有留言:
張貼留言