NPLs Up but Loss Is Down at Fannie
Washington-Fannie Mae lost $14.8 billion during the second quarter, a smaller loss than the $23 billion it lost during the first quarter.
The conduit also has requested $10.7 billion in additional funds from the U.S. Treasury to compensate for a net-worth deficit of $10.6 billion.
Credit-related expenses, which includes provisions for credit loss plus foreclosure expenses, remained high at $18.8 billion, down slightly from $20.9 billion in the first quarter of 2009.
Revenue at the mortgage agency increased quarter to quarter, from $5.2 billion to $5.6 billion.
Guaranty fee income fell from $1.8 billion to $1.7 billion.
Nonperforming loans on its books increased to $171 billion from $145 billion.
Fannie's book of business increased slightly in the quarter, to $3.19 trillion from $3.14 trillion the previous quarter, and $3.11 trillion at year-end 2008.