DOW JONES NEWSWIRES Freddie Mac (FRE) posted a narrower third-quarter loss, but credit-loss provisions and the delinquency rate continued to rise as the company continues to be hit by the ongoing housing downturn. The year-ago loss was a record for Freddie, as the company's net worth had dipped below zero. The mortgage financier and its larger peer Fannie Mae (FNM) were placed under conservatorship 14 months ago to prevent potential implosions at the height of the credit crisis. The government has invested more than $110 billion in Fannie and Freddie, and it has pledged to invest as much as $200 billion in each company to keep them afloat. On Friday, Freddie said the amount remaining under that $200 billion commitment was $149.3 billion, which doesn't include $1 billion of senior preferred stock issued to the U.S. Treasury as initial consideration for its commitment. The results were in line with those of Fannie Mae, which late Thursday posted a narrower third-quarter loss but reported $22 billion of credit-loss provisions and foreclosed-property costs. For the latest quarter, Freddie Mac posted a loss of $5.01 billion compared with a year-earlier loss of $25.3 billion. After a $1.3 billion dividend payment to the Treasury Department, the loss was $1.94 a share. The prior year's results included about $14.3 billion in write-down of deferred tax assets. Freddie posted positive revenue of $3.38 billion, compared with negative revenue of $9.56 billion amid write-downs and mark-to-market losses. Credit-loss provisions were $7.58 billion, compared with $5.7 billion a year ago and $5.2 billion in the second quarter. Delinquencies of at least 90 days surged to 3.33% from 1.22% a year ago and 2.78% in the second quarter. Chief Executive Charles E. Haldeman Jr. said the company continued to support the recovery in the housing market and, in the latest quarter, helped more than 100,000 borrowers to avoid foreclosure. Shares were flat at $1.23 in after-hours trading. The stock jumped along with the financial sector's summer rally, but has been volatile recently amid questions about the company's future structure. -By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com
