Freddie Mac posts $211 million 1Q loss

MCLEAN, Va., June 14 (UPI) -- Freddie Mac, the No. 2 mortgage finance company in the United States, Thursday reported a first quarter net loss of $211 million, or 46 cents per share.

Its fair value of net assets fell $300 million during the first quarter reporting period ending March 31, Freddie Mac reported in a news release.

For the same period in 2006, Freddie Mac reported net income of $2 billion, or $2.80 per share.

The drops in net income and fair value mainly were due to losses on market-to-market items, the McLean, Va., company said.

Total revenue fell to $424 million in the first quarter of 2007 from $2.48 billion for the same period a year earlier.

On an annualized basis, its credit guarantee portfolio volumes, however, showed growth by finishing the quarter up 16 percent and its retained portfolio grew 6 percent, Freddie Mac said.

"While the full impact of the housing downturn has not been felt, our credit position has remained strong relative to our historical levels and the market as a whole," Richard F. Syron, Freddie Mac chairman and chief executive officer, said.