After another year of meager performance during the course of 2011, Freddie Mac will soon be requesting more financial assistance from the Department of the Treasury.
The government-sponsored enterprise will be asking for an additional $146 million in taxpayer relief funds to help offset the $1.04 billion of losses reported during the fourth quarter last year. While the GSE reportedly took in $1.5 billion in revenue in 2011, this gain was significantly offset by a $1.7 billion divided paid to the Treasury. The company hopes the funds will help to eliminate its growing deficit as it an attempt to privde safety and soundness for the mortgage industry.
"Freddie Mac remained a pillar of support for the nation's housing finance system and a steadfast partner with American homeowners and renters in 2011," said Freddie Mac CEO Charles Haldeman. "We continue to be a vital source of mortgage funding - last year alone we provided over $360 billion of liquidity to the market."
Meanwhile, in order to curb any negative sentiment that this request may create, the Federal Housing Finance Agency announced it will be cutting Freddie's executive pay rates across the board as it works to streamline the company financially.