Fannie Mae Reports Bigger Than Expected Loss
- By:
- MortgageLoan.com | May 07, 2008
Fannie Mae posted a big first-quarter loss of $2.2 billion Tuesday and said it planned to raise $6 billion through a stock offering to shore up its balance sheet.
It's the third consecutive quarterly loss the mortgage giant has posted as it warned of further drops in home prices over the coming months. In a call with analysts, Fannie Mae's president and CEO, Daniel Mudd said, "I think that right now, we are in the belly of the cycle, but the initial period of disruption in the market place appears to be dissipating. The capital markets are recovering balance and as the market recovers, we will be a prime beneficiary."
Fannie Mae reported $4.4 billion in fair value losses, a reflection of loss of market worth of its various holdings, which compares to a $566 million fair value loss charge 12 months ago.
Plunging property prices and rising foreclosure rates that began with the subprime crisis are now having an impact on loans made by borrowers with better credit profiles. This has now resulted in both government backed players, Fannie Mae and Freddie Mac, which insure and buy only prime loans are now seeing their portfolios hit by mortgage market deterioration.
Fannie Mae's stock initially dropped following its loss announcement, but quickly rebounded and was up to around 9% as of Tuesday afternoon after Moody's affirmed Fannie's debt rating.
Hope Now Gaining in Foreclosure Prevention as Loan Modifications Increase
- By:
- Bill Rice - MortgageLoan.com | December 03, 2008
The Hope Now initiative, a private mortgage lender and servicer alliance, is increasing its effectiveness in preventing foreclosures. In October, Hope Now set a new record in foreclosure prevention modifying 225,000 mortgages. That total exceeds September's loan modifications by 13,000.
Law Firms and Banks Collaborating to Streamline Loan Modifications
- By:
- Bill Rice - MortgageLoan.com | December 02, 2008
Increasingly loan modifications are becoming the preferred mechanism to help defaulting homeowners and troubled bank mortgage asset portfolios. All of the major banks, Bank of America, JP Morgan Chase, and Citigroup have announced streamlined loan modification programs.
US Retailers Hope for a Big Cyber Monday
- By:
- Bill Rice - MortgageLoan.com | December 01, 2008
Retailers got a welcome Holiday gift on Black Friday, with retail sales actually rising 2 percent over last year. Despite the doom and gloom of economic prognosticators consumers lined the sidewalks in the wee-hours of the morning for "door-buster" deals.
Retailers Caught Flat-footed by Rapid Economic Slowdown
- By:
- Bill Rice - MortgageLoan.com | November 28, 2008
It's Black Friday, will they come? Black Friday a term linked to the fact that traditionally all retailers "make their year" by blasting into profitable territory for the entire year on the strength of holiday sales. This year may be a stark contrast.
President-elect Obama Subtlety Taking the Reigns of US Economic Policy
- By:
- Bill Rice - MortgageLoan.com | November 27, 2008
In his regular press conferences behind the very Presidential-looking "Office of the President-Elect" podium Obama quietly is absorbing the Presidency. Despite being 11 weeks away from inauguration and still two weeks away from officially being declared President-elect by the convening of the Electoral College, he is undeniably taking the reigns of US economic policy.
Federal Reserve Starts Printing Money to Jumpstart Lending
- By:
- Bill Rice - MortgageLoan.com | November 26, 2008
The Federal Reserve and US Treasury have announced another bailout, this one theoretically for consumers and small businesses. This plan involves another $800 billion.
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