Freddie Mac has announced the results of its second quarter numbers, posting a huge $2.1 billion loss for the second quarter of 2011 which ended June 30, 2011, compared to net income of $676 million for the first quarter of 2011 that ended March 31, 2011. The news of this huge loss comes the same day that Standard & Poor’s downgraded the credit ratings of both Freddie Mac and Fannie Mae from AAA status to AA+. “Freddie Mac again played a leading role in the housing finance system and the U.S. economy, providing nearly $180 billion in needed liquidity to the market in the first half of 2011 while helping over 116,000 families avoid foreclosure,” said Freddie Mac Chief Executive Officer Charles E. Haldeman Jr. shedding some positive light on an otherwise dreary quarter-over-quarter loss. “We also continued to make progress in our efforts to strengthen the company and build value for the mortgage industry. One of our biggest priorities has been implementing the Servicing Alignment Initiative, an essential and joint effort with Fannie Mae that will improve the industry’s ability to help borrowers facing foreclosures." Real estate-owned (REO) operations expenses for the second quarter was $27 million, compared to $257 million for the first quarter of 2011. REO operations expenses primarily consist of expenses incurred to maintain foreclosed properties, valuation adjustments on properties, disposition gains or losses, and recoveries. The decrease in REO operations expense was driven by an improvement in both REO holding period write-downs and disposition losses as REO fair values stabilized during Q2. Freddie Mac helped 53,777 struggling borrowers avoid foreclosure and receive loan modifications in the second quarter, as eight out of every 10 borrowers were helped. This number was down nearly 10,000 from the first quarter foreclosure rescues when Freddie Mac assisted 62,641 borrowers.