Fannie Mae narrows loss, but asks for more aid
15.08.2010 00:00
Fannie Mae narrows loss, but asks for more aid
By , staff writerAugust 6, 2010: 6:55 AM ETNEW YORK (CNNMoney.com) -- Fannie Mae says that its financial condition has vastly improved over previous quarters, but the mortgage finance company still requested more government assistance.
The government-run company said Thursday it lost $1.2 billion in the second quarter, down significantly from an $11.5 billion loss in the prior quarter. Last quarter's loss was the smallest since the government took Fannie Mae and Freddie Mac into conservatorship in September 2008.
Fannie said it continues to suffer credit losses from home loans issued between 2005 and 2008. Although those losses will continue in the future, the company said it believes it has reserved enough "for the substantial majority of these losses."
That didn't stop Fannie from asking for another $1.5 billion in government aid. The Treasury Department has given the company a total of $85 billion over the past two years. But those loans are expensive, carrying a hefty interest rate that forced Fannie to pay $1.9 billion back to the Treasury last quarter.
The company said the loans it is currently purchasing are subject to much higher underwriting standards than the ones of the past several years, carrying the lowest early "serious" delinquency rates in a decade.
"We are focused on sustainable homeownership, and our higher underwriting and eligibility standards reflect that," said Mike Williams, Fannie Mae's chief executive, in a statement. "Across our industry, we are seeing a more realistic approach to housing and lending that bodes well for the future."
#cnnfb_connect {background-color:#f5f5f5;width:auto;height:auto;padding:10px;clear:both;} Right Now
Motorola's second version of its popular Droid phone features a centered keyboard, Wi-Fi hotspot capability and Flash. Google responds to naysayers on its joint policy proposal with Facebook, with a long fact sheet about its ideas on Net neutrality. The velocity of mobile OS debuts is spelling a faster end to the PC era than anyone could have predicted.
| 30 yr fixed mtg | 4.52% |
| 15 yr fixed mtg | 3.95% |
| 30 yr fixed jumbo mtg | 5.37% |
| 5/1 ARM | 3.49% |
| 5/1 jumbo ARM | 4.09% |
Find personalized rates:
Bankrate.com.
Buying shares in a diversified mutual fund, not picking individual stocks, is a safe way to begin investing. Ben Bernanke and the FOMC steered clear of using the word deflation, easing tension in the stock and bond markets. Co-founder Reid Hoffman talks about why he created the social network and the projects he'll be working on in the future.
| Markets | Last | Change | % Change |
|---|---|---|---|
| 10,303.15 | -16.80 | -0.16% | |
| 2,173.48 | -16.79 | -0.77% | |
| 1,079.25 | -4.36 | -0.40% | |
| 2.69 | -0.05 | -1.72% | |
| 1.28 | -0.01 | -0.55% |
| Company | Price | Change | % Change |
|---|---|---|---|
| 3.88 | 0.01 | 0.26% | |
| 13.23 | 0.17 | 1.28% | |
| 21.36 | 0.00 | 0.00% | |
| 19.15 | -0.30 | -1.54% | |
| 9.39 | 0.43 | 4.79% |
Sections
Oracle is charging into unprecedented territory by suing Google over open-source patent infringements -- a battle that will take years to slug out. | A new bill signed by Obama cuts loan guarantees for renewable energy projects by $1.5 billion. When are we going to start putting green money where our mouth is? | Oracle is charging into unprecedented territory by suing Google over open-source patent infringements -- a battle that will take years to slug out. | Runners have flocked to a new cult shoe brand -- and so have counterfeiters. | Sure, it's expensive to buy the toys of the rich and famous. But buying them is just the start - once you have them they cost a small fortune to keep. |
Please create a screen name to access this feature.
Screen name (Select one with 3-12 characters; Numbers and letters only)
Forgot password
Enter your e-mail address below and we will send you an e-mail with a link and code to reset your password.
Password selection
Reset code
New password
Log in & let's get started!
Password
Remember me for two weeksNot a member yet?
Sign up or
Screen name
Select one with 3-12 characters;Numbers and letters only
You will receive an e-mail to validate your account
Password
Make it 6-10 characters, no spacesType what you see in the grey box
If you can't read this,Yes, I would like to receive occasional CNNMoney member updates about new features and special offers.
CNNMoney will use the information you submit in a manner consistent with our . By clicking on "sign up" you agree with and and consent to the collection, storage and use of this information in the U.S. subject to U.S. laws and regulations. ()
For our international users, please be aware that the information you submit when registering for our services is collected in the United States of America. In addition to being subject to our Privacy Policy, the collection, storage, and use of your data will be subject to U.S. laws and regulations, which may be different from the laws and regulations of your home country. By registering for this service, you are consenting to this collection, storage, and use.
We're Sorry!
This service is temporarily unavailable. Please try again soon.
Thanks!
Please check your e-mail and click the link to confirm your membership. Then, you'll be ready to participate in all activities and conversations on our site.
Add comment