Freddie Mac reported a net loss attributable to common stockholders of $6.0 billion, or $1.85 per diluted common share, for the second quarter of 2010, compared to a net loss attributable to common stockholders of $8.0 billion, or $2.45 per diluted common share, in the first quarter, the federal housing lender reported Monday, August 9.
The company, which trades as penny stock on the over-the-counter market as FMCC since the company was delisted from the NYSE in July, reported a net worth deficit of $1.7 billion in the second quarter compared to $10.5 billion in the first quarter.
This quarter’s deficit reflects a total comprehensive loss of $0.4 billion and a required 10% dividend payment of $1.3 billion to Treasury. As a result, Freddie Mac’s conservator, the Federal Housing Finance Agency (FHFA), will submit an aid request to Treasury for a draw of $1.8 billion under the senior preferred stock purchase agreement.
The net loss of $4.7 billion was mainly driven by a provision for credit losses of $5.0 billion, derivative losses of $3.8 billion, and net interest income of $4.1 billion. The second quarter’s net loss compares to a net loss of $6.7 billion for the quarter ended March 31.
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Freddie Mac in its second-quarter release reported a single-family delinquency rate of 3.96%, down from 4.13% at March 31. The company said the higher credit quality of new single-family business reflects recent changes in underwriting standards.