Freddie Mac reports $50 billion loss

March 12, 2009 at 9:39 AM
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WASHINGTON, March 12 (UPI) -- U.S. mortgage giant Federal Home Loan Mortgage Corp. has asked the federal government for an additional $30.8 billion to offset losses.

Freddie Mac said it lost $50.1 billion in 2008, almost half of that in the fourth quarter, The Washington Post reported Thursday.

The government gave Freddie Mac $13.8 billion when it fell into federal conservatorship last fall. The government has said it would cover $200 billion of the firm's losses.

In addition, "we expect the residential mortgage market will continue to deteriorate in 2009," Freddie Mac said in its earnings report.

The government-sponsored enterprise that operates with the dual mission of making a profit and creating housing opportunities for low-income citizens said it had made changes recently "in a manner that serves public policy and other non-financial objects but may not contribute to profitability."

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