Freddie Mac has reported that its net income fell 27% to $2.1 billion last year, from $2.9 billion in 2004, primarily because of $600 million in costs associated with settling securities litigation, charges related to Hurricane Katrina, and certain accounting changes.Freddie Mac also warned that its earnings would likely show increased volatility in the future due to "asymmetric mark-to-market accounting treatment" of certain assets and liabilities. Those accounting changes affect another measure of Freddie Mac's performance, the value of net assets, before capital transactions, attributable to common shareholders. The net value declined slightly last year, to $26.7 billion at the end of 2005. In a conference call with investors and analysts, Freddie Mac executive vice president Patricia Cook said wider mortgage-to-debt option-adjusted spreads reduced the fair value of net assets, but that the wider spreads will actually benefit Freddie Mac in the long term. Freddie Mac chairman and chief executive Richard Syron and chief operating officer Eugene McQuade said the fundamentals of the business remain good, stressing that Freddie Mac gained market share last year and exceeded a 30% surplus capital target by some $3.5 billion.
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A federal judge in Texas dismissed the Consumer Financial Protection Bureau's medical debt rule and prohibited states from passing their own laws prohibiting medical debt on credit reports.
5h ago -
Dr. Mark Calabria takes on the additional role of chief statistician of the United States; retired Ally Bank executive Diane Morais has joined First Citizens Bancshares' board of directors; MainStreet Bank has promoted Alex Vari to chief financial officer; and more in this week's banking news roundup.
8h ago -
While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
10h ago -
The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
10h ago -
Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
11h ago -
The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
11h ago