Industry News

Freddie Mac on track for quarterly reporting next year

Mortgage giant offers preliminary year-to-date stats

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Mortgage giant Freddie Mac announced on Monday that it is on track to report full-year financial results by the end of March 2005 and will return to quarterly reporting for the second quarter of next year. The company has not been current in its financial reporting since a 2003 accounting scandal resulted in a $5 billion earnings restatement, a $125 million civil penalty and the removal of five executives. The company said in a statement that significant systems revisions are still required because of new accounting rules and its adoption of revised accounting policies from the 2002 restatement. "While we have made substantial progress, we face continuing challenges because of the prior deficiencies in our accounting infrastructure and the operational complexities caused by the enormous volume of revised and new accounting policies that we have adopted," the company said in a statement. But returning Freddie Mac to timely financial reporting remains one of the company's top goals...