Freddie Mac’s $2.5 Billion Loss

As the nation’s second largest provider of residential mortgages, Freddie Mac recently announced a record loss of $2.5 billion as a result of the continually worsening housing market. Freddie Mac plans to take a cautious approach in 2008 until it becomes clearer what direction the credit market will be headed. According to The New York Times, Freddie Mac is struggling to balance growing business with efforts to protect itself from further loss by tighten underwriting guidelines.

To read the complete article on Freddie Mac, please visit: http://www.nytimes.com/reuters/business/business-freddiemac-results.html?ref=business