Freddie Mac Looking for $1.8B More in Aid

Freddie Mac is asking the government for an additional $1.8 billion in aid following another big loss in the second quarter of the year. From April to June, Freddie reported a loss of $1.3 billion, up from $840 million at the same time last year. Freddie is losing money from bad loans it backed, many before the housing market went bust. It owned more than 62,000 foreclosed properties in June. Meanwhile, Fannie Mae requested $1.5 billion after posted its own second quarter loss. The new requests mean that together, Freddie and Fannie have needed $148.2 billion to stay alive. No doubt, the two will be a hot topic of conversation during the Treasury’s conference on the mortgage system on August 17. Freddie Mac is taking a guarded approach to their future. "We recognize that high unemployment and other factors still pose very real challenges for the housing market," CEO Charles Haldeman said in a statement. "With that in mind, we continue to focus on the quality of the new business we are adding to our book to be responsible stewards of taxpayer funds."

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