Executive Perspectives Blog
Let's talk about the spring homebuying season.
I know, I know – you haven't even set your holiday dinner table yet. Why on earth would anyone want to be thinking about the spring homebuying season NOW?
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