Freddie Mac estimated after-tax losses of $150 million to $300 million for the third quarter as a result of Hurricanes Katrina and Rita, the US mortgage finance giant said on October 04.
The company expects the losses to stem from its guarantee of timely payment of principal and interest on mortgage-backed securities, and its holding of loans and securities backed by homes devastated by the two powerful storms that hammered parts of the US Gulf Coast, Freddie Mac said in a statement.
Freddie Mac, which recently brought its income reporting current in the wake of an accounting scandal in 2003, has said it aims to report its third-quarter earnings in November.
Analysts on average were expecting a profit of $1.21 a share for Freddie Mac for the third quarter, according to Reuters Estimates.
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