Freddie Mac Cuts Dividend, Announces Giant Loss

Posted by Patrick O'Connor on 8/6/08 11:08 am

Freddie Mac chopped its dividend by 80% and posted a quarterly loss that was three times worse than estimates. Stock gets hammered. Read More.

Bloomberg.com

Almost one out of every 10 mortgages in the U.S. was in trouble during the first quarter, the highest in records dating to 1979, according to the Mortgage Bankers Association in Washington. Delinquencies, or home loans with payments 30 days or more overdue, rose to 6.35 percent of outstanding mortgages and the share of homes in foreclosure rose to 2.47 percent. Freddie's properties in foreclosure are triple that of 2002.

Freddie today reported a second-quarter net loss of $821 million, or $1.63 a share, its fourth straight loss, compared with the 54 cents a share average estimate of nine analysts in a Bloomberg survey. The company reported net income of $764 million, or $1.02 a share, in the year-earlier period.

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