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