On the same day it announced staggering first-quarter losses, mortgage backer Freddie Mac requested an additional $10.6 billion in aid from the U.S. government, according to a press release Wednesday.

Freddie Mac lost $6.7 billion in the first quarter of 2010, bringing its net worth to a deficit of $10.5 billion, according to the release.

“As a result of the net worth deficit, FHFA, as Conservator, will submit a request for $10.6 billion in additional funding to Treasury,” said the release. “Freddie Mac expects to receive these funds by June 30, 2010.”

Freddie Mac

More Federal Assistance Could Be Coming To Freddie Mac

The company said it expected to request additional funding in the future from the government. The amount and timing of the requests would be based on “a variety of factors that could adversely affect the company’s net worth.”

During the first quarter of 2009, Freddie Mac lost $9.98 billion, and the continued struggles of the housing market kept it in the red in early 2010.

“Our first quarter 2010 financial results were driven significantly by the required adoption of new accounting standards, along with continued weakness in the housing market,” Freddie Mac CFO Ross J. Kari said in the release.

Despite the company’s suggestion it would need more federal assistance in the future, Freddie Mac CEO Charles E. Haldeman Jr. said, “we are seeing some signs of stabilization in the housing market, including house prices and sales in some key geographic areas.”

Pending home sales rose by 5.3% in March, and are up 21.1% from March 2009 levels. The housing market in the southern U.S. fared the best, as pending sales went up 12.3%.

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  • No matter what the cost, the government cannot afford to let the housing market fail. That's why the $200 billion cap was removed.

  • No matter what the cost, the government cannot afford to let the housing market fail. That's why the $200 billion cap was removed.

  • highinterest

    If you have to mail in future payments, spend a little and send them via US Mail certified, return receipt requested. This not only establishes that you mailed it on time, it also annoys the heck out of them when they have to SIGN for it and put a live human being’s name in writing as having received it on their end.

    Another good alternative is to send them multiple checks totaling the amount of your monthly payment. Use very odd amounts to reach that total. For example, if your payment is $232.83, send in your coupon with checks for $37.92, $51.04, $21.57, etc. This drives up their cost of doing business and is in no way illegal.

    Use your imagination. If you can’t get your money back, at least you can have fun and irritate the heck out of them.