The Associated Press Mortgage financier has Freddie Mac has reported an $821 million second-quarter loss. The AP’s David Melendy reports on that and the rest of Wednesday’s business headlines. The mortgage financier has Freddie Mac has reported an $821 million second-quarter loss. The decrease of one dollar and sixty-three cents per share was more than three-times larger than Wall Street expected. The dismal results come just weeks after the government threw a financial lifeline to Freddie and its sister company Fannie Mae to ward off fears the pair could collapse and take down the U.S. mortgage market.
Connecticut is suing Countrywide Financial, alleging it misled borrowers into taking on risky home loans they could not afford. The state alleges the mortgage giant violated its consumer protection laws and charged unjustified fees to homeowners who defaulted. Many mortgage lenders believe that Countrywide wrote more bad credit mortgages because they were the top originator in the country. People seem to forget that Countrywide also wrote more good loans than any other mortgage company for many years.
