ABJ - August 9 - Freddie Mac today reported a net loss of $2.1 billion for the quarter ended June 30, compared to a net income of $676 million for the quarter ended March 31. The company also reported a total comprehensive loss of $1.1 billion in the second quarter of 2011, compared to total comprehensive income of $2.7 billion in the first quarter of 2011.

The company’s net income and total comprehensive income can vary significantly from quarter to quarter due to changes in fair values as a result of changes in interest rates and mortgage spreads. Conditions in the U.S. housing and mortgage markets can also have a significant impact on the company’s financial results from period to period.

The report indicates the shift from net income for the first quarter of 2011 to a net loss for the second quarter of 2011 primarily reflects the impact of declines in long-term interest rates on the fair value of derivatives.

Additionally, the report also indicates the change from total comprehensive income for the first quarter of 2011 to a total comprehensive loss for the second quarter of 2011 primarily reflects the net loss for the second quarter and the adverse impact of widening spreads on the fair value of the company’s non-agency available-for-sale securities.

Freddie Mac continues to see modest improvement in single-family credit performance. However, credit losses and credit-related expenses remain at elevated levels, and various factors, such as continued high unemployment rates and/or further declines in home prices, result in continued downside risk.