Uncategorized

Please assign a category to this article!

Welcome Back, Fannie: Third Quarter Losses Total $1.39 Billion

By: PAUL JACKSON
November 9, 2007

Advertisements

Fannie Mae today said it had become a current filer with the SEC ahead of its February 2008 goal — and promptly reported a $1.39 billion loss for the third quarter, the latest evidence of how far the current housing slump is reaching.

The company said in a press statement that its results reflect “worsening housing market conditions,” with CEO Daniel Mudd saying he expects the housing market to worsen further in the year ahead.

From Bloomberg:

The government-chartered company joins Citigroup Inc., Washington Mutual Inc. and Countrywide Financial Corp. in reporting losses on mortgages as foreclosures last quarter doubled to a record, according to RealtyTrac Inc.

“Fannie Mae is becoming another poster child for the problem you see with Countrywide Financial, Washington Mutual and any of the firms with a good chunk of mortgage business,” said Michael Mullaney, who manages $10 billion at Fiduciary Trust Co. in Boston. “You just don’t know anymore where you’re going to get a negative surprise that comes out of the woodwork.”

The loan loss ratio could at least double to 8 to 10 basis points next year, Mudd said on a conference call with analysts. The ratio was 4 basis points for the nine months ended Sept. 30, and 1.8 basis points in the year-ago period, the filing shows.

A full investor summary is available by clicking here.


Get your HW Fix

Join nearly 10,000 bold subscribers who already get our daily email delivered to their inbox -- it's free, and a great way to ensure you don't miss something.

RESPA Webinar by Wolters Kluwer Financial Services
Advertisement
Distressed Asset Directory Banner

Events

2009 Dec 09 -- 2009 Dec 10

RMBS: Assessing Value and Risk

This two-day course in New York City will equip market participants with the knowledge and skills to evaluate prime, Alt-A and subprime RMBS portfolios in order to assess their value and understand inherent risks. For more information, visit www.fitchratings.com.

2010 Jan 13 -- 2010 Jan 14

2010 Collection Technology Summit

The Collection Technology Summit is the first industry event to focus solely on collections and its associated technologies and continues to draw top executives from the nation's most prominent institutions. The Collection Technology Summit, where innovation happens. For more information, visit www.collectiontechnology.net