Freddie Mac posts Q3 loss of $5 billion

Freddie Mac, second largest provider of US residential mortgage funding, has posted a loss of $5 billion in the third quarter and predicted it would need more government support amid “prolonged deterioration” in housing.

Increases in value of securities Freddie Mac held over the period helped buoy its net worth, however, erasing its need to tap government funds for second straight quarter to stay solvent while continuing to buy and guarantee home loans. Including a $1.3 billion dividend payment on senior preferred stock bought by the Treasury in previous quarters, Freddie Mac’s third-quarter loss increases to $6.3 billion.

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