Freddie Mac needs an additional $146M to remain solvent

by 09 Mar 2012

Freddie Mac has asked for $146 million from the U.S. Treasury in order help make interest payments towards government funds used to keep the behemoth mortgage buyer solvent, the company said Friday.

Freddie Mac is obligated to make a $1.7 billion dividend payment to the government for relief funds used to carry the company ever since it was placed under conservatorship.  Although Freddie Mac made $619 million in net income over the fourth quarter of 2011, as well as $887 million in other income, it was not enough to cover the large interest payment of $1.7 billion.
 

The GSE’s (Fannie Mae and Freddie Mac) were both seized by the federal government after the real estate bubble popped and the “great recession” had taken their toll on both the mortgage giants.  In total, Fannie Mae and Freddie Mac have needed $72.2 billion in government aid to remain solvent.

Fannie Mae recently released their quarterly reporting and announced that they would need an additional $4.6 billion.

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