Executive Perspectives Blog
Ten years ago, Freddie Mac began an aggressive experiment to reach delinquent homeowners who were not responding to loan servicer efforts to work with them. The results exceeded our expectations and prevented 350,000 additional foreclosures from happening.
Today Freddie Mac reported a net loss of $475 million and a comprehensive loss of $501 million for the third quarter of 2015. This $0.5 billion loss was caused mainly by the accounting associated with our use of derivatives, whereby the derivatives are marked-to-market but many of the assets and liabilities being hedged are not. Otherwise, the business had very strong fundamentals with growing volumes of guarantees and continued improving credit quality in the guarantee businesses.
- In the multifamily mortgage market
- In rental demand
- In our business
- In demand for affordable housing
Over the last few years, we have moved on from the early-years conservatorship mindset, which was characterized by us being hesitant to make decisions, by waiting for the government to tell us what to do, or waiting for "imminent" legislation. Now we are a more aggressive company, customer-focused and better at execution than ever before. We're firmly facing the future, not the past. And we're very much working not only to have a better company but also a better housing finance system for all.
Whether a business involves complex financial transactions, like Freddie Mac, or delivers things, like Amazon, customers judge service by processing their experience through four questions: Did you understand what I wanted? Did you have what I wanted? Did you follow-through to make sure I got what I wanted? Did you beat my expectations?