McLEAN, Va. – Secondary mortgage market giant Freddie Mac, recovering from a huge accounting scandal, reported this morning its lost $480 million in its fiscal fourth quarter as a result of interest rate moves that hurt its business of guaranteeing loans. The fourth-quarter loss compares to a profit of $684 million for the same period in fiscal 2005. Still, the second-largest buyer of home mortgages reported a slight increase in annual earnings, to $2.2 billion, from $2.1 billion the year before. The company reported in 2005 that it has misstated earnings by $5 billion between 2000 and 2002, mostly by underreporting. The company has spent hundreds of millions of dollars since then improving its internal controls and reporting systems.
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