Freddie Mac Needs More Bailout Funds After $6 Billion Second Quarter Loss
WASHINGTON – Freddie Mac announced another big loss yesterday – $6 billion for the second quarter – prompting it to request another $1.8 billion of government assistance.
The company reported an $8 billion first quarter loss and an $840 million loss for the second quarter last year.
Yesterday’s report came a few days after Fannie Mae reported a $3.1 billion second quarter loss and a requested an additional $1.5 billion in government aid.
The new bailout requests would make a total requests for government assistance from the two secondary mortgage market giants, which have been under federal conservatorship since September 2008, to $148 billion, about $63.1 billion of which is being used by Freddie Mac.
Freddie Mac had $118 billion in bad loans at the end of June, up from $103.4 billion at the end of last year. It owned more than 62,000 foreclosed properties in June, up from about 35,000 a year earlier.