Freddie Mac (FMCC:US), the mortgage-finance company operating under U.S. conservatorship, will seek $19 million in Treasury Department aid after a first-quarter profit of $577 million failed to offset a dividend payment owed on the government’s nearly 80 percent stake.
The company had a net-worth deficit of $19 million at the close of the three-month period ended March 31, reflecting total income of $1.79 billion before accounting for the $1.81 billion payment on Treasury’s stake, the McLean, Virginia-based company said today in a Securities and Exchange Commission filing.
“In the first quarter, Freddie Mac sharpened its focus on building value for the industry, homeowners and taxpayers by aligning its resources and internal business plans to meet the goals and objectives laid out in our new Conservatorship Scorecard and Strategic Plan,” Chief Executive Officer Charles E. Haldeman Jr. said in a statement. “Today, we are executing against that plan, working with our regulator to build a new infrastructure for the housing finance system and establish a path for shifting risk to private investors.”
The company and its larger rival Fannie Mae own or guarantee almost half of U.S. home loans. They have been sustained by Treasury Department aid since they were seized in September 2008 amid losses tied to defaults and foreclosures.
Freddie Mac reported a $619 million profit for the fourth quarter of last year, and a full-year net loss of $5.3 billion for 2011.
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