FirstFed Reports Mortgage-Related 2Q Loss

FirstFed Financial Corp., Los Angeles, has reported a net loss of $35.5 million ($2.60 per share) for the second quarter, citing a $90.2 million provision for loan losses linked to chargeoffs, modifications, and nonaccrual of single-family mortgage loans. FirstFed noted that the loss and the loan-loss provision were down from those of the first quarter, which were $69.8 million ($5.11 per share) and $150.3 million, respectively. A year earlier, FirstFed recorded net income of $29.1 million ($1.74 per share) and a loan-loss provision of $3.1 million. The bank said its higher levels of single-family nonaccrual loans (those more than 90 days delinquent or in foreclosure) "are the result of the large numbers of adjustable-rate mortgages that faced a recast of their payment amount in the latter part of 2007 and early 2008."