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United States News Title: Mortgage Zombie Freddie Mac Reports Q4 Loss; Another $5 Billion In Taxpayer Money Out The Window To Support Fake Home Prices Mortgage Zombie Freddie Mac Reports Q4 Loss; Another $5 Billion In Taxpayer Money Out The Window To Support Fake Home Prices Tyler Durden's picture Submitted by Tyler Durden on 02/24/2010 09:22 -0500 From the press release: * Fourth quarter 2009 net loss was $6.5 billion. After the dividend payment of $1.3 billion to the U.S. Department of the Treasury (Treasury) on the senior preferred stock, net loss attributable to common stockholders was $7.8 billion, or $2.39 per diluted common share, for the fourth quarter of 2009. o Fourth quarter results reflect net interest income of $4.5 billion, a write-down of $3.4 billion of the carrying value of the company’s Low-Income Housing Tax Credit (LIHTC) partnership investments and credit-related expenses of $7.1 billion. * Full-year 2009 net loss was $21.6 billion. After dividend payments of $4.1 billion during the year to Treasury on the senior preferred stock, net loss attributable to common stockholders was $25.7 billion, or $7.89 per diluted common share, for the full-year 2009. * Net worth at December 31, 2009 was $4.4 billion. As a result of the positive net worth, no additional funding from Treasury was required under the terms of the Senior Preferred Stock Purchase Agreement (Purchase Agreement) for the fourth quarter. * In 2009, Freddie Mac played a critical role in supporting the nation’s housing market by: o Providing $548.4 billion of liquidity to the mortgage market, helping finance approximately 2.2 million conforming single-family loans and approximately 253,000 units of multifamily rental housing. o Helping more than 272,000 borrowers stay in their homes or sell their properties through the company’s long-standing foreclosure avoidance programs and the Home Affordable Modification program (HAMP), including 129,380 loans that remained in HAMP trial periods as of December 31, 2009 according to information provided by the Making Home Affordable (MHA) program administrator. o Refinancing approximately $379 billion of single-family loans, creating an estimated $4.5 billion in annual interest savings for borrowers nationwide – this includes approximately 169,000 borrowers whose payments were reduced by an average of $2,000 annually under the Freddie Mac Relief Refinance MortgageSM. Freddie Mac (NYSE:FRE) today reported a net loss of $21.6 billion for the full-year 2009, compared to a net loss of $50.1 billion for the full-year 2008. After dividend payments of $4.1 billion during the year on its senior preferred stock to Treasury, Freddie Mac reported a net loss attributable to common stockholders of $25.7 billion, or $7.89 per diluted common share, for the full-year 2009, compared to a net loss attributable to common stockholders of $50.8 billion, or $34.60 per diluted common share, for the full-year 2008. For the quarter ended December 31, 2009, the company reported a net loss of $6.5 billion, compared to a net loss of $5.4 billion for the quarter ended September 30, 2009. After the dividend payment of $1.3 billion on its senior preferred stock to Treasury, Freddie Mac reported a net loss attributable to common stockholders of $7.8 billion, or $2.39 per diluted common share, in the fourth quarter of 2009, compared to a net loss attributable to common stockholders of $6.7 billion, or $2.06 per diluted common share, in the third quarter of 2009. Fourth quarter and full-year 2009 results were negatively impacted by $7.1 billion and $29.8 billion in credit-related expenses, respectively, reflecting the challenging economic conditions during 2009. In addition, fourth quarter and full-year 2009 results were affected by $3.4 billion and $4.2 billion in LIHTC partnerships expense, respectively, primarily due to the write-down of the carrying value of the company's LIHTC partnership investments to zero as of December 31, 2009. These results were partially offset by net interest income of $4.5 billion in the fourth quarter of 2009 and $17.1 billion in the full-year 2009, mainly due to lower funding costs. Freddie Mac had positive net worth of $4.4 billion at December 31, 2009, compared to positive net worth of $9.4 billion at September 30, 2009. As a result of the positive net worth, no additional funding was required from Treasury under the terms of the Purchase Agreement for the fourth quarter. The decline in positive net worth for the fourth quarter of 2009 resulted from the fourth quarter 2009 net loss of $6.5 billion and the dividend payment of $1.3 billion to Treasury on the senior preferred stock, partially offset by a $2.7 billion decrease in unrealized losses recorded in accumulated other comprehensive income (loss) (AOCI) primarily driven by improved values on the company's available-for-sale (AFS) securities. Freddie Mac had a net worth deficit of $30.6 billion at December 31, 2008. "In a trying and turbulent year, Freddie Mac played a critical role in supporting the nation's housing recovery," said Freddie Mac Chief Executive Officer Charles E. Haldeman, Jr. "We provided a constant source of liquidity – purchasing one out of every four home loans originated last year – and our presence in the market helped keep mortgage rates at historic lows. We also helped approximately 1.8 million borrowers lower their mortgage payments, and more than a quarter million families avoid foreclosure. "We start 2010 with some early signs of stabilization in the housing market, with house prices and home sales likely nearing the bottom sometime in 2010. We expect that low mortgage rates, relatively high affordability and the homebuyer tax credit will help continue to fuel the recovery. Still, the housing recovery remains fragile, with significant downside risk posed by high unemployment and a potential large wave of foreclosures. That's why our commitment to help struggling homeowners is steadfast – and we will continue working to find ways to keep families in their homes through both our own programs and the Obama Administration's Making Home Affordable Program."
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#1. To: Nebuchadnezzar (#0)
This is on Owe-Bama and the Democrat controlled Congress.
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