Freddie Mac losses narrow as
consumers make more mortgage payments
Source:
Informa Research Services
(02/25/2011) One
of the nation's two government-controlled mortgage backing giants saw losses
decrease significantly in the fourth quarter of 2010 as consumers continued to
make on-time payments into their outstanding home loans.
Freddie
Mac lost $113 million in the final three months of last year as fewer delinquent
mortgages allowed it to cut the amount it set aside for losses to just $3.1
billion, according to a report from the Wall Street Journal. That's down from
both $7.1 billion in the same period of 2009, and $3.76 billion from the third
quarter of 2010.
The
data suggests many consumers may be shoring up their delinquencies by putting
more toward their mortgages. These individuals may benefit even further by
refinancing their home loans to obtain a lower rate. Reviewing the latest online
rate tables for the best
local rates can help consumers determine the best time to refinance.
Still,
Freddie's losses for the year were an astronomical $14 billion, though that was
down from $21.6 billion in 2009, the report said. In all, nationwide mortgage
delinquencies at the end of 2010 had dipped to 3.84% from the 3.87% observed at
the end of the same period in 2009.
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