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| Freddie Mac said its quarterly earnings were ravaged by the recent hurricanes.
Third quarter after tax losses are expected to be between $150 million and $300 million, the McLean, Va.-based company announced Tuesday. The bad news was attributed to participation certificates backed by properties impacted by Hurricanes Katrina and Rita and guaranteed by the secondary lender. Freddie, which last year bought nearly $0.5 trillion dollars in mortgages, said its careful estimates of the impact from the hurricanes are inherently imprecise even though they involve evaluations, model results and prior experience with natural disasters. But it expects Tuesday’s projection represents the bulk of losses from storm-related damage. “We’re doing everything we can to keep mortgage money flowing to the Gulf region and help folks hardest hit by these catastrophic storms,” Chairman and CEO Richard F. Syron said in the statement. |
