Freddie Mac Sees First Half Net Of $2.7 Billion
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
Freddie Mac, the buyer of residential mortgages and mortgage-related securities, estimates first-half net income was $2.7 billion, as it benefited significantly from mark-to-market gains recorded for its guarantee asset and derivatives, as interest rates increased during the first half of the year.
Given the reversal of interest rates of around a half percentage point since June 30, management expects to report a significant reversal of these mark-to-market gains in the company’s third quarter results.
Through August 2006, its credit guarantee portfolio rose 11% to about $1.4 trillion.
The company added it is continuing on a plan to strengthen its controls and systems.
