Yikes.
From the Fannie Mae Press Release:
Fannie Mae (FNM/NYSE) reported a net loss of $15.2 billion in the fourth quarter of 2009,
compared with a net loss of $18.9 billion in the third quarter of 2009.…
For the full year of 2009, Fannie Mae reported a net loss of $72.0 billion, compared with a loss of $58.7 billion for 2008.
…
“Through this prolonged stress in the housing market, we are helping homeowners across the country, supporting
affordable housing, and providing financing to keep the residential markets functioning,” said Fannie Mae President and
CEO Mike Williams. “Our homeownership assistance initiatives grew significantly in 2009, reaching more than 3 million
borrowers. We continue to work closely with our industry partners and the government to reach every borrower we can
and to address rising foreclosures. Our overriding objective is keeping people in their homes whenever possible.”
On HAMP:
Because of the unprecedented nature of the circumstances that led to the Making Home Affordable Program, we cannot
quantify what the impact would have been on Fannie Mae if the Making Home Affordable Program had not been
introduced. We do not know how many loans we would have modified under alternative programs, what the terms or
costs of those modifications would have been, or how many foreclosures would have resulted nationwide, and at what
pace, and the impact on housing prices if the program had not been put in place.
On Foreclosures:
Although there have been signs of stabilization in the housing market and economy, we expect that our credit-related expenses will remain high in the near term due in large part to the stress of high unemployment and underemployment on borrowers and the fact that many borrowers who owe more on their mortgages than their houses are worth are defaulting.
….
Although we have expanded our initiatives to keep borrowers in their homes, we expect our foreclosures to increase in
2010 as a result of the weak economy and high unemployment and their effect on the financial condition of borrowers.
