Freddie Mac has reported a Q3 loss of $4.1bn, built largely on bad home loans and dividend payments to the Treasury.
The company, which had to be bailed out by the US federal government in 2008 during the financial crisis, made a loss of $6.7bn during the same period last year while it reported a loss of $6bn in Q2 this year.
While the weak housing market resulted in credit losses of $3.7bn, Freddie Mac also incurred a $1.6bn dividend payment on senior preferred stock purchased by the Treasury since the financial crisis.
Freddie Mac CEO Charles E. Haldeman says: "While we continue to work through credit problems in our 2005 through 2008 books of business, we remain encouraged by the slowing trend of delinquent loan additions in recent periods.
"As we near the end of 2010, the housing market remains fragile, and has recently come under renewed pressure from slowing economic growth, weaker employment and foreclosure uncertainties.
"We believe that it will be a considerable time until the housing market has a sustained recovery."
The company has confirmed it will request a draw of $100m from the Treasury, significantly down from the $1.8bn it required after Q2.
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