Fannie Mae (FNM) lost a net $23.2bn — or $4.09 per share — in Q109. A total $20.9bn in credit-related expenses, $5.7bn in securities impairments, and $1.5bn in fair value losses drove the quarterly losses, Fannie Mae officials said in the earnings statement. The loss, in addition to a decrease in unrealized losses on available-for-sale securities, resulted in a net worth deficit of $18.9 billion as of quarter-end. The Federal Housing Finance Agency, acting as Fannie’s conservator, submitted a request for $19bn from the US Treasury Department in response to the net deficit. The FHFA requested the funds on or prior to June 30, 2009 as part of the senior preferred stock purchase agreement between Fannie and the Treasury. Fannie’s quarter still saw a few bright spots, despite the net deficit. Fannie reported $77bn of refinance in March, the largest volume of refinance activity since 2003, mostly due to its participation in the Obama Administration’s Making Home Affordable modification program. Fannie’s mortgage credit book of business increased to $3.14trn as of quarter-end, from $3.11trn at the end of ’08. It’s market share of new, single-family mortgage-related securities issuance rose to 44.2% in Q109, compared with 41.7% in Q408. At the same time, nonperforming loans on Fannie’s books swelled to $144.9bn as of quarter-end, from $119.2bn at the end of the fourth quarter and from $10.9bn at the end of Q108. Write to Diana Golobay. Disclosure: The author held no relevant investment positions when this story was published. Indirect holdings may exist via mutual fund investments.
Fannie Loses $23.2bn, Needs to Find $19bn
Most Popular Articles
Latest Articles
Selling your home to a family member in 5 easy steps
Selling your home to a family member can be beneficial but requires careful planning and transparent communication. Follow these five steps to ensure a smooth transaction, from agreeing on logistics and assembling a professional team to determining your home’s value and understanding tax implications.
-
FOA reverse stock split goes into effect, appears to have intended impact
-
Senate Aging Committee leaders introduce bill on aging in place
-
HousingWire Pulse: Respondents show cautious optimism about the Q3 housing market
-
US Senate committee approves full funding for Ginnie Mae
-
Connecticut Senator asks HUD for answers on backlog of discrimination complaints