Wednesday, February 27, 2008

Fannie Mae $2 billion in red for 2007

Fannie Mae (the Federal National Mortgage Association) reports a $2.1 billion loss for 2007, which represents a $6 billion swing from 2006's net income of $4.1 billion.
"We are working through the toughest housing and mortgage markets in a generation," said President and Chief Executive Officer Daniel H. Mudd. "While we are pleased that demand for our mortgage guaranty businesses has surged as we respond to the market’s urgent need for liquidity and stability, this positive trend has been far outweighed by the negative financial impacts of rising mortgage defaults, falling home prices, and extraordinary disruptions in the credit markets."