Freddie Mac lost almost $26 billion last year, ominous news for taxpayers, who are footing the bill to rescue the mortgage finance company and its sibling, Fannie Mae.No word yet from Jesse Jackson on this one.
In the final three months of last year, Freddie Mac posted a loss of $7.8 billion, or $2.39 a share. Freddie Mac, which has lost almost $80 billion since the housing crisis started in 2007, is bracing for more pain. The McLean, Va., company said a record 4 percent of its borrowers are at least three months behind on their payments and facing foreclosure.
Its chief executive, Charles Haldeman, warned Wednesday of a "potential large wave of foreclosures" still to come.
This is a major problem for the federal government, which seized control of Freddie and Fannie in September 2008. The two companies have already siphoned $111 billion from the government to stay afloat. That number is expected to hit $188 billion by fall 2011.
Friday, February 26, 2010
Freddie Mac loses $7.8 billion, warns of foreclosure wave
The San Jose Mercury reports:
