Freddie Touts Record '02; To Be Restated

Freddie Mac has reported record unaudited net income of $5.76 billion ($7.95 per share) for 2002, up 39% from $4.15 billion ($5.64 per share) the year before, but the results are preliminary and will be restated.The results are expected to be revised upward after PricewaterhouseCoopers finishes auditing the government-sponsored enterprise's books for 2002 and re-auditing its financial statements for 2001 and possibly 2000, Freddie Mac said. Unaudited net income totaled $1.70 billion ($2.38 per share) for the fourth quarter, up 25% from $1.36 billion ($1.87 per share) a year earlier. "We fully support the re-audit, and we are confident it will have no adverse impact on the company's fundamental strength," said Leland C. Brendsel, chairman and chief executive officer of the GSE. "Last week, all three major rating agencies affirmed our high ratings." Financial highlights cited by the GSE include: total mortgage portfolio growth of $173 billion, or 15%; retained portfolio growth of $76 billion, or 15%; and credit losses representing only 0.7 basis points of its average total mortgage portfolio. Freddie Mac can be found online at http://www.freddiemac.com.