Freddie Mac CEO resigns

David Moffett has stepped down after six months leaving the US mortgage giant scrambling for an interim replacement. Freddie Mac plans to request more than $30bn in additional capital from the US government after announcing its fourth quarter losses.

David Moffett, chief executive of residential mortgage provider Freddie Mac, has resigned his position after only six months with no successor named.

David Moffatt

Moffett is departing the struggling mortgage giant to return to the financial services sector.

Freddie Mac’s board of directors is working with the government’s Federal Housing Finance Agency to find a replacement. The board expects to appoint an interim chief executive prior to 13 March, the latest date at which Moffett’s resignation will become effective.

In November, Freddie Mac received $13.8 billion from the US government after third quarter losses of $25.3 billion. The company plans to request an addition $30 billion to $35 billion after reporting fourth quarter earnings.

The company’s back-up capital from the government was last month doubled to $200 billion. Along with Fannie Mae, Freddie Mac is one of the US’ providers of residential mortgage capital to lenders. Control of both companies was seized by the government last September and management ousted as an emergency measure to avoid them from spiraling into bankruptcy. Freddie Mac holds 7 percent of the 2.5 million seriously delinquent loans in the US.