NEW YORK (
on Thursday reported a fourth-quarter net loss of $113 million, and would need another sip from the government trough.
The loss narrowed from a $2.5 billion net loss during the third quarter. For all of 2010, the government-sponsored mortgage giant lost $14 billion, following a $21.6 billion loss during 2009.
Freddie Mac's net worth was a negative $401 million as of December 31 "due to several contributing factors including its $1.6 billion quarterly dividend payment to Treasury," and the Federal Housing Finance Agency as conservator was set to "submit a $500 million draw request to Treasury," which would increase the government's stake in the company to $64.7 billion.
, Freddie Mac was taken into government conservatorship in September 2008.
CEO Charles Haldeman said that in 2010 the company "not only added strength and stability to the housing market but we also strengthened Freddie Mac itself," and had reduced administrative costs by over $100 million from 2009 by streamlining our operations and efficiently managing our expenses."
Major improvements during the fourth quarter were a continued reduction in the provision for credit losses to $3.1 billion, and derivatives gains of $1.6 billion. However, impairments on available-for-sale securities continued to increase, to $2.3 billion during the fourth quarter.
The company said that its "new single-family business acquired in 2009 and 2010" continued to demonstrate "strong credit quality based on borrower credit scores and loan-to-value ratios," and that its "single-family serious delinquency rate of 3.84 percent at December 31, 2010," was "below industry benchmarks."
Written by Philip van Doorn in Jupiter, Fla.
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Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.