WASHINGTON (MNI) – Following is the text of the key results from
Fannie Mae’s 4Q11 and Full-Year 2011 sattement released Wednesday:
Key Results from Fannie Mae’s News Release:
Fannie Mae reported a net loss of $2.4 billion in the fourth
quarter of 2011, compared with a net loss of $5.1 billion in the third
quarter of the year.
The company’s net loss in the fourth quarter reflected losses due
to credit-related expenses, the substantial majority of which were
related to its legacy (pre-2009) book of business and due largely to a
decline in home prices.
For the full year of 2011, Fannie Mae reported a net loss of $16.9
billion, compared with a loss of $14.0 billion for 2010.
The increase in net loss for the year was due primarily to a $6.1
billion increase in net fair value losses in 2011 resulting from losses
in our risk management derivatives in 2011, caused by a significant
decline in interest rates during the year.
Fannie Mae’s new single-family book now accounts for more than half
of its overall single-family guaranty book of business. The company
estimates that it has reserved for the substantial majority of the
remaining losses on these loans.
During 2011, Fannie Mae purchased or guaranteed more than $653
billion in loans, which enabled its lender customers to finance
approximately 2,680,000 single-family conventional loans and loans for
approximately 423,000 units in multifamily properties.
During 2011, Fannie Mae completed more than 328,000 single-family
loan workouts, including more than 248,000 home-retention solutions.
The Federal Housing Finance Agency (FHFA) requested $4.571 billion
on Fannie Mae’s behalf from Treasury – more than 50 percent is for
dividend payments to Treasury.
** Market News International Washington Bureau: 202-371-2121 **
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