Freddie Mac Posts $4.1 Billion Third Quarter Net Loss

By Kyle Chezum Updated on 11/3/2010

11/03/2010

Freddie Mac reported on Wednesday that it saw a third quarter net loss of $4.1 billion and would need to draw additional funding from the Treasury to stay positive.  Freddie Mac Chief Executive Charles Haldeman called the housing market "fragile."  Costs associated with handling bad loans are expected to increase as "uncertainties" delay the foreclosure process.

"We believe that it will be a considerable time until the housing market has a sustained recovery," Halderman stated.  In the wake of this instability, the housing market has grown to expect significant funding from Freddie and Fannie.  With investors still holding back, there is considerable uncertainty as to when this trend will shift.

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