FANNIE MAE LOSSES BIG IN THE FIRST QUARTER OF 2011-8.687 BILLION!
The Press Release:
WASHINGTON, DC – Fannie Mae (FNMA/OTC) today reported a net loss of $6.5 billion in the first quarter of 2011, compared to net income of $73 million in the fourth quarter of 2010 (which reflected a $1.2 billion reduction to credit-related expenses resulting from the successful resolution of certain outstanding repurchase requests), and a net loss of $11.5 billion in the first quarter of 2010. The change to a net loss in the first quarter of 2011 from net income in the fourth quarter was due to an increase in credit-related expenses, primarily driven by a decline in home prices during the quarter. The company estimates that, although home prices have improved in some geographic regions, home prices on a national basis declined by 1.8 percent in the first quarter of 2011, which had a direct and negative impact on its credit-related expenses. Substantially all of the company’s credit-related expenses in the first quarter were related to the company’s legacy (pre-2009) book of business. While the company continues to work through losses on its legacy book, it expects that the single-family loans it has acquired since January 2009 will be profitable over their lifetime.
Most Notable in the report besides the loss: Foreclosures are UP in 2011
FORECLOSURES AND REO
Fannie Mae acquired 53,549 single-family real-estate owned (REO) properties through foreclosure in the first quarter of 2011, compared with 45,962 in the fourth quarter of 2010. As of March 31, 2011, the company’s inventory of single-family REO properties was 153,224, compared with 162,489 as of December 31, 2010. The carrying value of the company’s single-family REO was $14.1 billion, compared with $15.0 billion as of December 31, 2010.
The company’s single-family foreclosure rate was 1.19 percent on an annualized basis in the first quarter of 2011, compared with 1.03 percent in the fourth quarter of 2010. This reflects the annualized number of single-family properties acquired through foreclosure, as a percentage of the total number of loans in Fannie Mae’s conventional single-family guaranty book of business
8.5 BILLION needed for YOU, the Taxpayer!!
The Acting Director of FHFA has requested $8.5 billion of funds from Treasury on the company’s behalf under the terms of the senior preferred stock purchase agreement between Fannie Mae and Treasury to eliminate the company’s net worth deficit as of March 31, 2011. Fannie Mae’s first-quarter dividend of $2.2 billion on its senior preferred stock held by Treasury was declared by FHFA and paid by the company on March 31, 2011.
you can read the entire press release and see their financial sheets here:
http://www.fanniemae.com/media/pdf/newsreleases/q12011_release.pdf;...
WASHINGTON, DC – Fannie Mae (FNMA/OTC) today reported a net loss of $6.5 billion in the first quarter of 2011, compared to net income of $73 million in the fourth quarter of 2010 (which reflected a $1.2 billion reduction to credit-related expenses resulting from the successful resolution of certain outstanding repurchase requests), and a net loss of $11.5 billion in the first quarter of 2010. The change to a net loss in the first quarter of 2011 from net income in the fourth quarter was due to an increase in credit-related expenses, primarily driven by a decline in home prices during the quarter. The company estimates that, although home prices have improved in some geographic regions, home prices on a national basis declined by 1.8 percent in the first quarter of 2011, which had a direct and negative impact on its credit-related expenses. Substantially all of the company’s credit-related expenses in the first quarter were related to the company’s legacy (pre-2009) book of business. While the company continues to work through losses on its legacy book, it expects that the single-family loans it has acquired since January 2009 will be profitable over their lifetime.
Most Notable in the report besides the loss: Foreclosures are UP in 2011
FORECLOSURES AND REO
Fannie Mae acquired 53,549 single-family real-estate owned (REO) properties through foreclosure in the first quarter of 2011, compared with 45,962 in the fourth quarter of 2010. As of March 31, 2011, the company’s inventory of single-family REO properties was 153,224, compared with 162,489 as of December 31, 2010. The carrying value of the company’s single-family REO was $14.1 billion, compared with $15.0 billion as of December 31, 2010.
The company’s single-family foreclosure rate was 1.19 percent on an annualized basis in the first quarter of 2011, compared with 1.03 percent in the fourth quarter of 2010. This reflects the annualized number of single-family properties acquired through foreclosure, as a percentage of the total number of loans in Fannie Mae’s conventional single-family guaranty book of business
8.5 BILLION needed for YOU, the Taxpayer!!
The Acting Director of FHFA has requested $8.5 billion of funds from Treasury on the company’s behalf under the terms of the senior preferred stock purchase agreement between Fannie Mae and Treasury to eliminate the company’s net worth deficit as of March 31, 2011. Fannie Mae’s first-quarter dividend of $2.2 billion on its senior preferred stock held by Treasury was declared by FHFA and paid by the company on March 31, 2011.
you can read the entire press release and see their financial sheets here:
http://www.fanniemae.com/media/pdf/newsreleases/q12011_release.pdf;...
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