Freddie Mac will not make Treasury draw

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Jeff Clabaugh

A day after Fannie Mae said it would tap the Treasury Department for another $15 billion, Freddie Mac reported another quarterly loss but said it does not currently need more government aid.

The McLean-based mortgage giant reports a $5 billion third-quarter loss, compared to a $25.3 billion loss in the same quarter a year ago. It ended the quarter with a positive net worth of $10.4 billion, driven by improved values on its available-for-sale securities, it said.

As a result of its positive net worth, no additional funding is required from the Treasury Department. So far, Freddie Mac has drawn $50.7 billion from the $200 billion Treasury lifeline set up to keep both Fannie and Freddie afloat.

Freddie Mac’s (NYSE: FRE) smaller year-over-year loss followed a second quarter profit of $768 million.

Fannie Mae’s (NYSE: FNM) third-quarter loss was $19.8 billion. It said Thursday it would remain dependent on Treasury Department support for the foreseeable future.

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