WASHINGTON – The mortgage market got some more bad news this morning with Fannie Mae announcing a huge $2.3 billion loss for the second quarter.
The loss, equivalent to $2.54 a share, compares to a second quarter profit of $1.9 billion for the same period last year.
The announcement comes just two days after Fannie’s secondary mortgage market sister Freddie Mac reported an $821 million second quarter loss.
For the first half of the year, Fannie Mae reported a loss of $5.1 billion, or $5.11 a share, compared to a profit of $2.7 billion for the first half last year.
During the second quarter, the company recorded $5.3 billion in credit-related expenses, including $3.7 billion added to combined loss reserves. The company expects that 2008 would be peak year for credit-related expenses.
The increasing red ink by the two mortgage giants comes just two weeks after Congress approved a new oversight scheme and bailout plan for Fannie and Freddie.
