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Freddie Mac Won't Pay Treasury Dividend After $354 Million Loss

  • First-quarter results hurt by $4.6 Billion hit to derivatives
  • Mortgage finance giant doesn't need draw from government

Freddie Mac won’t make a dividend payment to the U.S. Treasury Department after declining interest rates and widening spreads on investments triggered a $354 million first-quarter loss for the mortgage finance giant.

Because the company’s net worth stood at $1 billion as of March 31, it will escape having to draw on its government line of credit, according to a regulatory filing Tuesday. Analysts forecasting the quarterly loss had speculated that it might lead to a request for U.S. aid for the first time since 2012 and rekindle calls to speed reform of the housing finance market.