Accounting changes lead to delayed financials
By MortgageDaily.com staff
3/10/2006

Freddie Mac delayed the release of 2005 financial results because of an accounting change.

The McLean, Va.-based company announced today it expects to release quarterly and full-year 2005 financial results in May. Freddie has previously released such results at the first quarter's end, but this year will instead only hold its quarterly market update conference call on March 30.

The secondary lender said the delay will allow management to implement "a significant improvement in its method for determining the estimated fair values of its guarantee assets and guarantee obligations," as it recently decided to make greater use of third-party market information in its valuation methodology.

Freddie does not expect the delay to affect any previously released audited financial statements.

"The valuation improvement we are implementing will further increase the accuracy and transparency of our 2005 results and will help us meet our ultimate financial reporting objectives," said Gene McQuade, Freddie president and chief operating officer, in the announcement.

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