Freddie Mac Posts Net Loss of 475 Million in Q3

first_img Department of Treasury Freddie Mac Net Loss Q3 2015 Earnings Statement 2015-11-03 Seth Welborn in Daily Dose, Data, Government, Headlines, News Freddie Mac Posts Net Loss of $475 Million in Q3 Sharecenter_img Freddie Mac reported a net loss of $475 million for Q3 2015 in its 10-Q filing with the Securities and Exchange Commission on Tuesday, the first time the GSE has reported a quarterly net loss in four years. The good news is that Freddie Mac will not need another draw from the Department of Treasury to continue operations.In the second quarter of 2015, Freddie Mac reported a net income of $4.2 billion. The Enterprise also reported a comprehensive loss in Q3 of $501 million, compared to a comprehensive income of $3.9 billion in the previous quarter. According to Freddie Mac CEO Donald Layton, the dropoff of $4.675 billion in net income from Q2 to Q3 is largely due to changes in interest rates that drove down the value of its derivatives (securities with a price derived from underlying assets—a contract between parties based on the assets, with the value of the contract determined by fluctuations in the underlying assets).“For the first time in four years, Freddie Mac had a net loss in the most recent quarter,” Layton said. “This $0.5 billion loss was caused mainly by the accounting associated with our use of derivatives, whereby the derivatives are marked-to-market but many of the assets and liabilities being hedged are not. The resulting difference between GAAP (generally accepted accounting principles) reporting and the actual underlying economics, which has created significant GAAP income volatility in our quarterly financial statements, reduced the after-tax earnings in the quarter by an estimated $1.5 billion as interest rates declined significantly. In the prior quarter, we had the opposite result with a $1.5 billion positive contribution to earnings as rates rose significantly.”The loss will not cause Freddie Mac to need another draw from Treasury since it was only a fraction of the $1.8 billion net worth reserve the Enterprise has under the Preferred Stock Agreement, according to Layton. The dividends paid into Treasury by Freddie Mac remained unchanged at $96.5 billion, which is about $25 billion more than the $71 billion the Enterprise received in a taxpayer-funded bailout in 2008.Click here to see Freddie Mac’s complete Q3 earnings report.Dallas-based servicer Nationstar Mortgage Holdings on Tuesday reported adjusted earnings of $32 million and a quarterly net loss (for GAAP purposes) of $66 million. Nationstar reported a quarterly net income of $75 million in Q2, which followed a quarterly net loss of $48 million in Q1.The company’s servicing segment achieved an adjusted pretax income of $36 million in Q3, which computes to 3.6 basis points of profitability based on average servicing during the quarter. For Nationstar’s originations segment, revenues increased sequentially during Q3 for the fifth straight quarter, up to $180 million.During Q3, Xome sold more than 4,900 properties and ended the quarter with about 8,000 in its inventory, increasing third-party revenues to 34 percent of total revenue as Xome continues to diversify its revenue streams and client base, according to Nationstar.”Our servicing segment delivered on our profitability goal by improving delinquency levels which resulted in higher base servicing fees and continued to focus on driving down expenses that have the most impact to our profitability,” said Jay Bray, CEO of Nationstar. “Our originations team also met its primary goal to replenish our servicing portfolio in a cost effective manner by funding $5 billion in mortgages, the highest volume since the fourth quarter of 2013. Furthermore, Xome continues to simplify real estate transactions by enabling buyers, sellers, and real estate professionals to successfully operate in the most efficient, transparent manner possible.”Click here to see Nationstar’s Q3 earnings statement. November 3, 2015 572 Views last_img read more

Derrick Hall satisfied with Dbacks buying and se

first_img Derrick Hall satisfied with D-backs’ buying and selling Okafor has missed the past three weeks — sidelined in the wins over Baltimore and Cleveland plus a loss at Pittsburgh — due to a calf injury he suffered in the fourth quarter at Detroit.Initially, Okafor said he was given a four-to-six-week timetable, “but I knew if I pressed it hard the bye week should be the longest it should be, and that’s how it was.  Everything went according to plan, there’s no setbacks and that’s how it was.”Okafor added he was able to practice some Tuesday, when Arians put the rookies and young players through a brief workout; and as it turned out, the only on-field work of the week.The team will reconvene next Tuesday.“I feel good,” Okafor said. “I think I might’ve been able to push the last week to play, but there was no need.  I feel great, though, out here.  I had a couple of reps yesterday and everything felt fine, so it shouldn’t be an issue going along.That’s good news.Okafor is arguably the Cardinals’ best pass rusher.He shares the team lead in both sacks (two) and quarterback pressures (seven) and is tied for second in quarterback hits despite playing only five of the season’s eight games.In 13 games a year ago, Okafor led the team with eight sacks, 20 quarterback pressures and 19 quarterback hits after returning from an early-season injury. “It’s great for us, man,” Okafor said.  “To have that kind of depth in the outside ‘backers room (which also includes LaMarr Woodley, Kareem Martin and Shaq Riddick), it’s truly a blessing just because we know we can leave everything out there on the field every single play and not be afraid for somebody to come back in and there won’t be no drop-off of production.  That’s what we’ve always tried to get towards.”Though frustrated with having to sit and watch, Okafor did enjoy seeing his teammates’ success, specifically Freeney, who recorded a sack in each of the past two weeks, placing him 19th on the NFL’s all-time list with 113.5.Freeney used his patented spin move to help him get to the quarterback.Might Okafor try the technique for himself now?“The thing about the spin move is you got to have it in the toolbox.  You can’t just bring it out of thin air, and I don’t know if I’ve got that yet,” he said.  “I’ll stick to what I do best.” The 5: Takeaways from the Coyotes’ introduction of Alex Meruelo Arizona Cardinals outside linebacker Alex Okafor (57) against Detroit Lions quarterback Dan Orlovsky (8) and Detroit Lions offensive guard Laken Tomlinson (72) during the second half of an NFL football game, Sunday, Oct. 11, 2015, in Detroit. (AP Photo/Duane Burleson) Former Cardinals kicker Phil Dawson retires Grace expects Greinke trade to have emotional impact Rushing the quarterback is one of the few areas of concerns the Cardinals have as they take a step back this week and evaluate their first half.The Cardinals’ 13 sacks ranks 22nd in the league, tied with four other teams; and are the fewest among their fellow competitors in the NFC West.“Everybody was saying trade for a pass rusher,” Arians said, referring to Tuesday’s NFL trade deadline, before turning his attention to Okafor.  “I don’t think there’s a better one on the market. We just had one in the training room. I think he’ll add a lot to our mix.”Told of Arians’ comments moments later in the locker room, Okafor said, “He’s always believed in me, man.  There was never a doubt in that in my mind, so it was just even more encouraging.  Honestly, I’ve just got to go back there and produce and make his words true.”Of course, nothing will be handed back to him.  As Okafor told reporters, he must re-earn his spot.Rookie Markus Golden started the three games Okafor missed, registering seven tackles, including three for loss, and one quarterback hit.The Cardinals also added veteran Dwight Freeney, who was signed shortly after Okafor got hurt.With Okafor’s impending return, the Cardinals like the depth they have at outside linebacker. TEMPE, Ariz. – Following the team picture on Wednesday, Arizona Cardinals head coach Bruce Arians excused his players for the bye week, rewarding them for their effort and performance during a 6-2 start to the season with a five-day break.Just about every player couldn’t wait for the extended rest.The one notable exception was linebacker Alex Okafor.“I’m itching. Everybody is excited about this bye week; I’m itching to get back,” he said. Top Stories Comments   Share   last_img read more