Under pressure from regulators, Freddie Mac has voluntarily agreed to limit the growth of its portfolio until it can return to reporting its quarterly financial results -- possibly sometime next year.The agreement with the Office of Federal Housing Enterprise Oversight limits the growth of Freddie's $722.2 billion portfolio to 2% a year. The government-sponsored enterprise, which is still recovering from a $5 billion accounting scandal, expects to return to regular quarterly reporting after the release of its full-year 2006 results. "We believe a constructive working relationship with our regulator is necessary to our ability to meet our mission and generate long-term shareholder value," Freddie Mac chairman and chief executive Richard Syron said in announcing the agreement. In May, Fannie Mae agreed to freeze the size of its $730 billion portfolio as part of a consent agreement with OFHEO and a $400 million settlement for alleged accounting fraud. OFHEO Director James Lockhart said the latest agreement shows Freddie's commitment to fixing its internal control and accounting systems and reducing operational risks. "I concur with the decision by Freddie Mac to limit retained mortgage portfolio growth, as recommended by OFHEO," Mr. Lockhart said.
