Freddie Mac Reports Big Drop in Net Income; GSE Expects To Meet Affordable Housing Goals, Faces Portfolio Cap
June 1, 2006
Freddie Mac this week reported a sharp drop in net income for 2005 and cautioned the market that it too could be forced into a no-growth posture by its federal regulator. The government-sponsored enterprise reported $2.13 billion in net income for last year, a 27 percent drop from 2004 that was well below Wall Street’s expectation of $3.49 billion. Freddie executives attributed most of the decline in profitability to the cost of settling litigation (about…