Industry News

Freddie Mac gives preliminary hurricane loss estimate

Katrina, Rita losses in $150-$300M range

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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...