Freddie Mac posts $475M loss in 3Q; no dividend payment
WASHINGTON (AP) — Mortgage giant Freddie Mac reported a $475 million net loss for the third quarter, as it sustained losses on the investments it uses to hedge against swings in interest rates.
The government-controlled company said Tuesday the July-through-September loss mainly reflected accounting measures, while its business was strong and continued to improve. The loss compared with net income of $2.1 billion in the same period of 2014. It broke a streak of 15 straight profitable quarters.
The company won't pay a dividend to the U.S. Treasury next month. Freddie previously has paid $96.5 billion in dividends, exceeding its government bailout of $71 billion.
The government rescued Freddie and larger sibling Fannie Mae at the height of the financial crisis in September 2008, after they suffered huge losses from risky mortgages.