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Fannie loses $23 billion, seeks more U.S. aid
written by By Aaron Smith, CNNMoney.com staff writer
Last Updated: May 8, 2009: 12:03 PM ET
NEW YORK (CNNMoney.com) -- Fannie Mae, the troubled mortgage finance company, reported a first-quarter loss of $23.2 billion on Friday.
The mortgage giant also reported that it submitted a request for $19 billion from the Treasury Department to cover its losses. That followed a request earlier this year for $15.2 billion to cover 2008 losses.
It also said Treasury has DOUBLED its support level to the company to $200 billion, as President Obama had AUTHORIZED.
In its quarterly release, Fannie Mae said its entire mortgage portfolio was experiencing INCREASES in DELINQUENCY and DEFAULT RATES. It blamed the rise in unemployment, falling home prices and the revaluation of homes in the wake of the economic downturn.
The mortgage company's first-quarter net loss was less than its fourth-quarter loss of $25.2 billion, which occurred immediately after the government takeover.
The most recent quarterly loss is more than 10 times the $2.2 billion net loss reported for the first quarter of 2008, before the government takeover.
Fannie Mae said its diluted loss per common share was $4.09.
Going forward, the mortgage giant said that it fully expects to ask for more financial support from the federal government.
Friday morning's stock rally left Fannie Mae behind. Fannie Mae's (FNM, Fortune 500) stock price, currently less than $1 per share, fell about 7% in the first hour of trading.
Government influence: Fannie Mae said it imposed a moratorium on foreclosures for most of the quarter. But that failed to stop foreclosures from increasing, compared to the prior quarter. The company said it acquired 25,374 single-family homes through foreclosure in the first quarter of 2009, compared to 20,998 in the fourth quarter, 2008.
Please click HERE to read the entire article... MUST READ!
Fannie loses $23 billion, seeks more U.S. aid
written by By Aaron Smith, CNNMoney.com staff writer
Last Updated: May 8, 2009: 12:03 PM ET
NEW YORK (CNNMoney.com) -- Fannie Mae, the troubled mortgage finance company, reported a first-quarter loss of $23.2 billion on Friday.
The mortgage giant also reported that it submitted a request for $19 billion from the Treasury Department to cover its losses. That followed a request earlier this year for $15.2 billion to cover 2008 losses.
It also said Treasury has DOUBLED its support level to the company to $200 billion, as President Obama had AUTHORIZED.
In its quarterly release, Fannie Mae said its entire mortgage portfolio was experiencing INCREASES in DELINQUENCY and DEFAULT RATES. It blamed the rise in unemployment, falling home prices and the revaluation of homes in the wake of the economic downturn.
The mortgage company's first-quarter net loss was less than its fourth-quarter loss of $25.2 billion, which occurred immediately after the government takeover.
The most recent quarterly loss is more than 10 times the $2.2 billion net loss reported for the first quarter of 2008, before the government takeover.
Fannie Mae said its diluted loss per common share was $4.09.
Going forward, the mortgage giant said that it fully expects to ask for more financial support from the federal government.
Friday morning's stock rally left Fannie Mae behind. Fannie Mae's (FNM, Fortune 500) stock price, currently less than $1 per share, fell about 7% in the first hour of trading.
Government influence: Fannie Mae said it imposed a moratorium on foreclosures for most of the quarter. But that failed to stop foreclosures from increasing, compared to the prior quarter. The company said it acquired 25,374 single-family homes through foreclosure in the first quarter of 2009, compared to 20,998 in the fourth quarter, 2008.
Please click HERE to read the entire article... MUST READ!
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