Losses Expected to Continue for Fannie and Freddie Through 2008
SOURCE: Bloomberg
Fannie Mae and Freddie Mac, the biggest U.S. mortgage-finance companies, may report net losses through the first quarter of 2009 as home-loan delinquencies rise to the highest on record, analysts' estimates show.
Freddie, based in McLean, Virginia, may say tomorrow when it releases second-quarter results that it had $1.9 billion in credit-related costs, while Washington-based Fannie on Aug. 8 will report $2.4 billion, according to Credit Suisse analyst Moshe Orenbuch in New York. The companies' regulator said in a July 22 report that Fannie and Freddie may need to write down the value of $217 billion in subprime and other risky securities.
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Fannie Mae and Freddie Mac, the biggest U.S. mortgage-finance companies, may report net losses through the first quarter of 2009 as home-loan delinquencies rise to the highest on record, analysts' estimates show.
Freddie, based in McLean, Virginia, may say tomorrow when it releases second-quarter results that it had $1.9 billion in credit-related costs, while Washington-based Fannie on Aug. 8 will report $2.4 billion, according to Credit Suisse analyst Moshe Orenbuch in New York. The companies' regulator said in a July 22 report that Fannie and Freddie may need to write down the value of $217 billion in subprime and other risky securities.
Read full story »
