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Fannie Mae Loses Billions in Q4  

Posted Feb 27, 08 10:48 AM CST in US,  Business    Most Covered

(newser) – Fannie Mae reported huge fourth-quarter losses today, painting an ugly picture both of the economy and the mortgage giant's own future. The company lost $3.56 billion—triple what analysts expected, Bloomberg reports. Derivatives were the big culprit, accounting for $3.33 billion in losses, but the company also reported spikes in late payments and delinquencies.

However, the ability of Fannie Mae and fellow mortgage-financier Freddie Mac to file 2007 statements on time allowed a federal agency to relax a cap on their investment portfolios instituted in the wake of accounting troubles. Fannie Mae remains down on the immediate future, though: "We expect the housing market to continue to deteriorate and home prices to continue to decline," a statement said.

Sources Wall Street Journal, Bloomberg

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Fannie Mae Loses Billions in Q4
The Fannie Mae building in Washington, Wednesday, May 2, 2007, in Washington. (AP Photo/Manuel Balce Ceneta)   (Associated Press)
Fannie Mae Loses Billions in Q4
The Fannie Mae building in Washington, in this May 2, 2007 file photo, in Washington. (AP Photo/Manuel Balce Ceneta, file)   (Associated Press)
Fannie Mae Loses Billions in Q4
Fannie Mae President and Chief Executive Officer Daniel Mudd, makes his remarks during a forum on housing, Monday, Dec. 3, 2007, at the National Press Club in Washington. (AP Photo/Manuel Balce Ceneta)   (Associated Press)
Fannie Mae Loses Billions in Q4
In this Oct. 30, 2007 file photo, an auction sign rests in front of this foreclosed home in Shaker Heights, Ohio. (AP Photo/Tony Dejak)   (Associated Press)
Fannie Mae Loses Billions in Q4
Fannie Mae President and Chief Executive Officer Daniel Mudd, makes his remarks during a forum on housing, Monday, Dec. 3, 2007, at the National Press Club in Washington. (AP Photo/Manuel Balce Ceneta)   (Associated Press)
Fannie Mae Loses Billions in Q4
Signs rest in front of a foreclosed home in Shaker Heights, Ohio, in this Oct. 30, 2007 file photo. (AP Photo/Tony Dejak, file)   (Associated Press)
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subprime crisis  • mortgage  • credit market  • Fannie Mae  • Freddie Mac  • quarterly earnings  • student loans  • Office of Federal Housing Enterprise Oversight


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