Fannie Provides Timetable for Restated 2005, 2006 Results
Fannie Mae CFO Robert Blakely said Thursday that the company expects to provide its restated 2005 and 2006 financial results to the Securities and Exchange Commission before the end of this year. In remarks made of the Credit Suisse Financial Services Forum in Naples, Florida, Blakely said the secondary market giant plans to file its 2005 10-K in August, with the 2006 10-K beng filed sometime after that. Commenting on Fannie Mae's portfolio and funding activities, Blakely said, "The reclassification of our mortgage portfolio to available for sale, from hold to maturity, allowed us to enhance our portfolio strategy. We now both buy and sell based on pricing dynamics in the market, with a focus on maximizing total return over time -- subject to our risk constraints." "Bottom line, we want to run our business as efficiently as possible," he said. "We're focused on both identifying tactical, immediate opportunities to capture cost-saves, and on longer-term initiatives to help reduce normalized expenses going forward." Blakely reiterated the company's commitment to reduce planned operating expenses by $200 million in 2007 and indicated that normalized operating expenses are expected to approximate $2 billion per year. Fannie Mae also provided a positive outlook for its single family mortgage business. "We also see very solid growth opportunities for our single-family business this year, next year and for the long term," said Thomas Lund, executive vice president. "We expect growth in our MBS to be slightly higher than the growth of the mortgage market." For more information, visit http://www.fanniemae.com.