Housing shouldn’t look at any color but the color of money

Housing shouldn’t look at any color but the color of money

People with bad credit and bad habits should be squeezed out of housing

Who is Nat Hardwick?

Former LandCastle Title CEO owns NASCAR team, rubs elbows with PGA pros

Lawsuit alleges former LandCastle Title CEO embezzled $30 million

Nat Hardwick allegedly used funds for private jets, gambling
W S

Fannie Mae loses $3.5 billion in 3Q

/ Print / Reprints /
| Share More
/ Text Size+
Fannie Mae lost $1.3 billion in the third quarter and asked for another $2.5 billion from the Treasury to cure its net worth deficit. The loss attributable to common stockholders was rounded up from $3.455 to be officially listed at $3.5 billion when it includes the $2.1 billion in preferred dividend payments to the Treasury. A year ago, Fannie reported $18.8 billion in losses. As a result of the latest draw, Fannie's total obligation to Treasury for its senior preferred stock will be $88.6 billion. From 2009 through the third quarter of 2010, Fannie set aside or realized $110 billion in losses on single-family mortgage loans. Most of them were purchased or guaranteed from 2005 through 2008. But these loans take up 42% of the company's entire book, down from 63% at the end of 2008. Fannie's serious delinquency rate dropped to 4.56% as of the end of the third quarter, down from 4.99% in the previous quarter and the first yearly drop since 2007. Through the first nine months of 2010, the company purchased or guaranteed $613 billion in mortgage loans as the single largest issuer of mortgage securities in the secondary market. Its market share grew to 44.5% in the third quarter from 39.1% in the second quarter. Fannie said recent foreclosure delays would cost the company further. It has directed mortgage servicers to check foreclosure processes after some reported employees signed affidavits without properly checking documentation. In the first nine months of 2010, 80% of the single-family properties Fannie repossessed through foreclosure had made three or less mortgage payments in the last year. "Although the company expects the foreclosure pause will likely negatively affect its serious delinquency rates, credit- related expenses, credit losses, and foreclosure timelines, it cannot yet predict the extent of the impact," according to Fannie Mae. Write to Jon Prior.

Recent Articles by Jon Prior

Comments powered by Disqus