Chief
02-27-2008, 04:40 PM
http://www.breitbart.com/article.php?id=080227144926.xiv8ofg7&show_article=1
Fannie Mae, a leading US financing provider for mortgages, said Wednesday it swung into a loss of 2.1 billion dollars in 2007 amid a deepening housing downturn and warned of "another tough year."
Fannie Mae said the net loss of 2.05 billion dollars, or 2.63 dollars a share, was mainly due to the weakness in the housing market and the disruption in the mortgage and credit markets in the second half of the year.
For the full-year 2006, the government-chartered company earned 4.06 billion dollars, or 3.65 dollars a share.
The company said that the housing and credit problems had affected earnings in a number of ways, including an increase of 2.8 billion dollars in its provision for credit losses, an increase of 5.1 billion dollars in market-based valuation losses and a decrease of 2.2 billion dollars in net interest income for the year.
It said its loss for the second half of the year totaled five billion dollars, reflecting "significant increases in serious delinquency rates and foreclosures, home price declines, widening credit spreads, shifts in interest rates and illiquidity in the capital markets."
"We are working through the toughest housing and mortgage markets in a generation," said Fannie Mae president and chief executive Daniel Mudd.
"Our strategy for moving through another tough year is to protect and conserve our capital base, and control credit losses," he said.
In3evitable I suppose, soncidering how many mortgages they handle; but this is nowhere near as bad as WAMU, Citi, et al...
Could be much, much worse..
Fannie Mae, a leading US financing provider for mortgages, said Wednesday it swung into a loss of 2.1 billion dollars in 2007 amid a deepening housing downturn and warned of "another tough year."
Fannie Mae said the net loss of 2.05 billion dollars, or 2.63 dollars a share, was mainly due to the weakness in the housing market and the disruption in the mortgage and credit markets in the second half of the year.
For the full-year 2006, the government-chartered company earned 4.06 billion dollars, or 3.65 dollars a share.
The company said that the housing and credit problems had affected earnings in a number of ways, including an increase of 2.8 billion dollars in its provision for credit losses, an increase of 5.1 billion dollars in market-based valuation losses and a decrease of 2.2 billion dollars in net interest income for the year.
It said its loss for the second half of the year totaled five billion dollars, reflecting "significant increases in serious delinquency rates and foreclosures, home price declines, widening credit spreads, shifts in interest rates and illiquidity in the capital markets."
"We are working through the toughest housing and mortgage markets in a generation," said Fannie Mae president and chief executive Daniel Mudd.
"Our strategy for moving through another tough year is to protect and conserve our capital base, and control credit losses," he said.
In3evitable I suppose, soncidering how many mortgages they handle; but this is nowhere near as bad as WAMU, Citi, et al...
Could be much, much worse..