Mortgage giant Freddie Mac has asked for $1.8bn in assistance from the US Government after it suffered its fourth consecutive quarterly loss on continued bad home loans.
The second-largest mortgage finance company in the US, Freddie says it would call on the US Treasury for funding after a $4.7bn net loss in the second quarter.
It follows larger agency Fannie Mae last week asking for an additional $1.5bn in aid from the Treasury after reporting a $1.2bn Q2 net loss. In total, the two companies have sought almost $150bn in Government funding.
Freddie and Fannie Mae were bailed out by the US Government during the height of the sub-prime mortgage crisis in 2008. Together the groups own or guarantee more than half of the $11trn US residential debt market.
"We recognise that high unemployment and other factors still pose very real challenges for the housing market, and with that in mind, we continue to focus on the quality of the new business we are adding to our book to be responsible stewards of taxpayer funds as we support the nation's housing market," Freddie chief executive Charles Haldeman says.
"Freddie Mac continues to support the still-fragile housing market by providing America's families with access to affordable home financing and foreclosure alternatives."
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From 6 April 2019