Last week, Government-controlled mortgage buyers Fannie Mae and Freddie Mac posted smaller quarterly losses. Despite the improved results, both companies asked the government for more federal aid in anticipation of further losses. The Bedford Report examines the outlook for companies in the Mortgage Investment Industry and provides research reports on Fannie Mae (OTC:FNMA) and Freddie Mac (OTC:FMCC). As I write, shares of Freddie Mac are down more than 15 percent at $0.49 per share on heavy volume of 15 million shares. As I write, shares of Fannie Mae are down nearly 15 percent at $0.48 per share on heavy volume of 29.2 million shares.Access to the full company reports can be found at:
www.bedfordreport.com/2011-02-FNMA
www.bedfordreport.com/2011-02-FMCC
Combined, Fannie Mae and Freddie Mac have requested another $3.1 billion draw from the Treasury Department -- which has owned more than 79 percent of both companies since they were seized and placed under U.S. conservatorship -- as both companies reported negative net worth after making dividend payments to the government. Fannie may is seeking $2.6 billion from Treasury to help eliminate its $2.5 billion net-worth deficit, while Freddie Mac reported a net-worth deficit of $401 million in its fourth-quarter. The Treasury said Fannie Mae and Freddie Mac paid a combined $3.8 billion in the fourth quarter, reducing the net cost to taxpayers to $133.7 billion.
Fannie Mae reported a Q4 loss of $2.1B and a full-year loss of $21.7B last week. Freddie Mac's quarterly loss narrowed to $113 million from $6.5 billion in the same period a year earlier.
Freddie Mac's Executive Vice President Don Bisenius received a "wells notice" from the SEC for allegedly violating securities laws in the years leading up to the housing bust. Freddie Mac and Fannie Mae have been under investigation since September 2008 for their role in the mortgage crisis.
No comments:
Post a Comment