Posts by Donald H. Layton
Donald H. Layton is chief executive officer of Freddie Mac, a publicly traded company that is one of the largest sources of mortgage financing in the United States and a leader in the nation's efforts to keep families in their homes and stabilize the housing market.
Today Freddie Mac reported its fourth consecutive year of profitability, reporting net income of $6.4 billion and comprehensive income of $5.8 billion for the full-year 2015. Our solid performance last year was driven by our progress in building a better Freddie Mac, as evidenced by continued growth in purchase volumes in the guarantee businesses, including a multifamily record. We’re also building a better housing finance system by expanding credit risk transfer and efficiently disposing of legacy assets, thereby reducing taxpayer exposure to risk.
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.
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.