Industry News

Freddie Mac delays financial results report

Quarterly, '05 figures will be released 2 months late

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Freddie Mac today said it would delay the release of its quarterly and full-year 2005 financial results by two months to implement an accounting change, but said the change would not affect prior results. Freddie Mac said it would report quarterly and full-year 2005 results in May. The government-sponsored enterprise had previously planned to report those results by the end of March. The second-largest U.S. mortgage funding company's earnings have not been current since a 2003 accounting scandal resulting in a $5 billion earnings restatement and management overhaul. Both Freddie Mac and its fellow government-sponsored enterprise, Fannie Mae, have been rocked by accounting scandals. In December 2004, Fannie Mae replaced Franklin Raines, its chairman and CEO, who announced he was taking early retirement, and Fannie Mae's chief financial officer, Timothy Howard, resigned Dec. 21. In early February of this year, the Bush administration said Congress should create a new regulator for Fann...