Mortgage finance giant Fannie Mae today reported that it generated $4 billion in net revenue and lost $29 billion, or $13 per diluted share, in the quarter ending Sept. 30.
The company, which has been controlled by the Federal Housing Finance Agency since Sept. 6, attributed its results to the difficult mortgage environment and a $21.4 billion write-down on its tax-deferred assets.
Fannie also recorded $9.2 billion in credit-related expense for the quarter, a sharp uptick of near $4 billion on a quarterly basis. Like many lenders, Fannie is dealing with bad loans. The percentage of nonperforming loans in Fannie's portfolio rose to 2.2 percent, an increase of more than half a percentage point compared to the previous quarter. Meanwhile, the number of single-family properties foreclosed upon by Fannie is also growing. As of Sept. 30, Fannie had 67,519 such homes on its books, which grew by nearly 20 percent since the previous quarter.
Alison Rice is senior editor, online, at BUILDER magazine.