Mortgage giant Freddie Mac said Tuesday that its after-tax losses from Hurricanes Katrina and Rita to be recorded in the third quarter of 2005 are expected to be in a range of $150 million to $300 million.

“Our primary concern continues to be ensuring that affected borrowers and lenders are obtaining the relief needed to rebuild their lives and get back on their feet financially,” said Richard F. Syron, Freddie Mac chairman and chief executive officer, in a statement.

“We’re doing everything we can to keep mortgage money flowing to the Gulf region and help folks hardest hit by these catastrophic storms,” Syron said.

Freddie Mac will continue to assess the impact of Hurricanes Katrina and Rita on its financial position and results of operations for the third quarter and subsequent periods, the company said Tuesday.

The government-sponsored enterprise said it expects that this estimate represents most of the losses from storm-related damage.

Freddie Mac’s exposure to losses as a result of these storms primarily arises from the company’s guarantee of principal and interest on the Participation Certificates and Structured Securities the company issues, as well as the company’s portfolio holdings of mortgages and mortgage-related securities with underlying collateral in the affected areas.

The company’s estimates of the financial impact of Hurricanes Katrina and Rita reflects a combination of evaluations, model results and prior experience with natural disasters, Freddie Mac said.

Syron said in a statement that these estimates are “inherently imprecise” because of a variety of factors, including the unprecedented nature of the disaster, the inability to access portions of the affected areas and the preliminary nature of the information used to prepare these estimates.

“There can be no assurance that the company’s ultimate losses associated with these events will be within the range described above,” the company said.

***

Send tips or a Letter to the Editor to janis@inman.com or call (510) 658-9252, ext. 140.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription