Freddie Might Need $35B More From Government

Freddie Mac may need to make a second draw on the U.S. Treasury Department line of credit - this time for $30 billion to $35 billion - to maintain a positive net worth as it closes its books on the fourth quarter, according to a securities filing by the company. "This estimate is preliminary and based on unaudited information," Freddie spokesman Michael Cosgrove said. 'The actual amount of the draw may differ materially from this estimate as we go through our internal and external process for preparing and finalizing our financial results," he said. Treasury granted Freddie and Fannie Mae each a $100 billion line of credit under a senior preferred stock purchase agreement when the mortgage giants were placed in conservatorships. Freddie secured a $13.8 billion draw after reporting its third quarter results. In the same filing, Freddie said it has reached an agreement with JPMorgan Chase on the servicing of Freddie-guaranteed loans at Washington Mutual, which the New York bank recently acquired. "JPMorgan Chase has agreed to make a one-time payment to Freddie Mac with respect to obligations of Washington Mutual to repurchase any of such mortgages that are inconsistent with certain representations and warranties," Freddie said in its filing with the Securities and Exchange Commission.