Fannie Mae Sees Up To $550 Million InStorm Losses.
WASHINGTON - (10/10/05) -- Secondary mortgage market giantFannie Mae reported Friday it expects hurricanes Katrina and Ritato lead to as much as $550 million in after-tax losses for thethird quarter. Fannie said storm-related losses on home mortgagesit holds in its portfolio, on mortgage backed securities itguarantees, and on property it owns in the affected areas, couldrange from $250 million to $550 million, based on its assessment ofdamages and exposure in the hurricane-affected areas. Those figurescould be increased or reduced as more or better information emergesabout the extent of the damages in the Gulf Coast, Fannie said. Theloss estimates came a day after Freddie Mac reported itsstorms-related losses were projected at $150 million to as much as$300 million.