Blaming a computer for accounting errors, mortgage financier Freddie Mac announced that it has cut about $220 million in profits from its statements for the first half of 2005. Freddie said that it earned $1.4 billion in the first six months of 2005, not the $1.6 billion it reported on Aug. 31.The company said that the difference "reflects the correction of interest accruals recorded for certain mortgage-related securities stemming from miscalculations since 2001 in a legacy computer system." The company also pointed out that the amended profit represents less than 1 percent of its core capital as of June 30.
Still recovering from a 2003 accounting scandal, Freddie Mac said that it still expects to resume regular financial reporting early next year. The company plans to release fourth-quarter and full-year 2005 results and begin filing monthly capital reports to regulators no later than the end of March 2006.
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