Freddie Earnings Plunge 88% on Expected Coronavirus Losses
- Mortgage giant reports first-quarter profit of $173 million
- Results include $1.2 billion provision for credit losses
Photographer: Johnny Milano/Bloomberg
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Freddie Mac’s first-quarter net income plunged 88% to $173 million due to higher expected credit losses on loans amid the coronavirus pandemic.
The mortgage giant booked $1.1 billion of credit-related expenses in the quarter ended March 31, according to a statement released Thursday. Freddie said the earnings decline was also driven by losses on single-family home loans, which took a major hit from the virus.