Yesterday, Freddie Mac released its fourth quarter financial results, reporting a net loss of $6.5 billion for the quarter, an increase over its third quarter loss of $5 billion. The company made a $1.3 billion dividend payment to Treasury on its senior preferred stock, resulting in a net loss attributable to common stockholders of $7.8 billion, or $2.39 per diluted common share.
Freddie Mac's net worth at December 31, 2009 was $4.4 billion, compared to positive net worth of $9.4 billion at September 30, 2009. This decline resulted from the fourth quarter 2009 net loss of $6.5 billion and the dividend payment of $1.3 billion to Treasury on the senior preferred stock, partially offset by a $2.7 billion decrease in unrealized losses recorded in accumulated other comprehensive income (loss) (AOCI) primarily driven by improved values on the company's available-for-sale (AFS) securities. Freddie Mac had a net worth deficit of $30.6 billion at December 31, 2008. As a result, no additional funding from Treasury was required under the terms of the Senior Preferred Stock Purchase Agreement for the fourth quarter. However, the full-year net loss for 2009 was $21.6 billion. After paying a total of $4.1 billion in dividends to Treasury on the senior preferred stock, net loss attributable to common stockholders was $25.7 billion ($7.89 per diluted common share) for all of 2009. The net loss attributable to common stockholders for 2008 was $50.8 billion, or $34.60 per diluted common share.
Both fourth quarter and full-year 2009 results were negatively affected by $7.1 billion and $29.8 billion in credit-related expenses, respectively, due to the challenging economic conditions during 2009. LIHTC partnerships expense of $3.4 billion and $4.2 billion impacted the fourth quarter and full-year results, primarily due to the write-down of the carrying value of the company's LIHTC partnership investments to zero as of December 31, 2009. These results were partially offset by net interest income of $4.5 billion in the fourth quarter of 2009 and $17.1 billion in the full-year 2009, mainly due to lower funding costs.
Freddie Mac also reported that it had refinanced approximately $379 billion of single-family loans during 2009, resulting in approximately $4.5 billion in annual interest savings for borrowers nationwide. More than 272,000 borrowers were able to stay in their homes or sell their properties through the company’s foreclosure avoidance programs and the Home Affordable Modification program (HAMP), including 129,380 loans that remained in HAMP trial periods as of December 31, 2009.