Freddie Mac follies
Freddie Mac (FRE) is trying some damage control. With a wave of foreclosures sweeping American neighborhoods, the government-backed mortgage investor is reaching out to struggling homeowners. The company recently posted a video on YouTube showing how to avoid foreclosure scams, the Washington Post reports. Freddie says it’s trying to flag schemes in which thugs lure borrowers to sign away their home equity.
The move comes as a difficult year at Freddie nears a close. The company’s shares have lost half their value in 2007, as the decline of the housing market has saddled the company with big losses on souring mortgages. Last week, CEO Richard Syron predicted Freddie will repeat its $2 billion third-quarter loss in the fourth quarter.
Billions of dollars in coming credit losses aside, however, the company’s future “looks better and better,” he told investors at a Goldman Sachs conference. Indeed, Freddie’s outlook is so glossy that this weekend the company sprang for what one correspondent terms “a decadent holiday party,” according to Barry Ritholtz. As if shareholders haven’t paid for enough Freddie follies already.
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