Ouch. How bad is the mortgage finance market. A recent report by the Wall Street Journal shows that Fannie Mae still lost $1.2 billion last quarter, and that is an improvement over recent years. The costs associated with this are unreal. Being that the government, which doesn’t actually have money, is paying for the losses, this financial mess is going to cost us for a very long time. Here are some of the details from Nick Timiraos’s article:
Fannie Mae posted a $1.2 billion net loss for the second quarter, the smallest loss in three years, amid signs that the massive wave of souring loans that brought down the mortgage-finance giant may be easing. But Fannie still asked the U.S. government for an additional $1.5 billion.
The quarterly loss reflects the lingering weaknesses in the housing market, but was an improvement from the $14.8 billion loss for the year-ago quarter. It marked the 12th consecutive loss for the Washington-based firm.
via Fannie Posts Smallest Quarterly Loss in Three Years – WSJ.com.
