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Freddie Mac to seek $312M from Treasury after Q4'17 loss

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Freddie Mac to seek $312M from Treasury after Q4'17 loss

Freddie Mac reported a fourth-quarter 2017 net loss of $2.92 billion, compared to net income of $4.67 billion in the third quarter of 2017.

The comprehensive loss for the fourth quarter was $3.31 billion, compared to comprehensive income of $4.65 billion in the previous quarter. Fourth-quarter 2017 comprehensive loss was driven primarily by a $5.4 billion write-down of the net deferred tax asset and the litigation settlement received in the third quarter of 2017.

Net interest income for the most recent quarter increased sequentially to $3.50 billion from $3.49 billion.

Freddie Mac reported benefit for credit losses of $262 million in the fourth quarter of 2017, compared to provision for credit losses of $716 million in the third quarter of 2017.

For full year 2017, net income was $5.63 billion, down from $7.82 billion in 2016. Comprehensive income declined year over year to $5.56 billion in 2017 from $7.12 billion.

Based on Freddie Mac's net worth deficit of $312 million at Dec. 31, 2017, the Federal Housing Finance Agency, as conservator, will submit a draw request, on the company's behalf, to Treasury under the purchase agreement in the amount of $312 million.

Fellow government-sponsored enterprise Fannie Mae on Feb. 14 disclosed that it too would see a Treasury draw after it was forced to take a $9.9 billion provision for taxes in the fourth quarter of 2017. Fannie Mae's net worth deficit dived to $3.7 billion after taking the one-time tax charge.