Freddie Mac Says 2008 Results Will Be Better

McLean, Va.–Freddie Mac’s 2008 financial results will be stronger than its 2007 numbers, according to chief executive officer Richard Syron.Declining home prices and credit market issues have caused big losses at McLean, Va.-headquartered Freddie Mac, but guarantee-fee income growth and stronger mortgage pricing will help counteract deficits, The Wall Street Journal said Monday.”The revenue engine is showing more horsepower, thanks to volume and appropriate changes in credit terms and prices,” Syron said in a speech to stockholders Friday. “We are quite confident that the positive changes will offset the negative.”However, Freddie Mac said its 2008 loss provision may grow by $5 billion to $6 billion because of weak credit circumstances and sinking home prices.”Our provision is growing,” Syron said. “We are keeping an eye on falling house prices on a daily basis.”