This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Mortgage Mess Hammers Fannie Mae

Fannie Mae's (FNM) third-quarter loss more than doubled as the mortgage investor took big hits from the credit crunch and housing market downfall.

Shares were sliding $3.50, or 7%, to $46.30.

The Washington, D.C.-based company reported a loss of $1.4 billion, or $1.56 a share, for the quarter ended Sept. 30. That compared with a year-earlier loss of $629 million, or 79 cents a share.

Revenue slipped to $2.51 billion from $2.85 billion the prior year.

The results reflect how Fannie, the nation's largest buyer and backer of mortgage loans, was hurt by increasing foreclosures and defaults on subprime loans. The company's provision for credit losses soared in the quarter to $1.2 billion from $197 million a year earlier.

Fannie said it expects the U.S. housing downturn will lead to further declines in mortgage originations through next year, and it anticipates continued volatility in its financial results.

The company's report brings it up to date in its financial reporting for the first time since it was rocked by an accounting scandal three years ago. For the first nine months of the year, Fannie's profit fell to $1.51 billion, or $1.17 a share, from $3.46 billion, or $3.16 a share, a year earlier.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.19 -1.04%
FB $118.06 0.54%
GOOG $695.70 0.48%
TSLA $222.56 -4.20%
YHOO $36.00 -0.03%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs