Fannie Mae shocking fall of $13 a share in Q3

Fannie Mae the largest US residential mortgage provider announced losses of $29 billion in the quarter three, this equates to a loss of $13 per share.

For the same period last year Fannie Mae lost £1.4 billion which works out at $1.56 per share, and the mortgage loan company has warned of major loss for the fourth quarter if the US financial and housing crisis continues.

This is the fifth consecutive quarterly loss for the US mortgage giant who was has been running since September under a US government conservatorship.

Due to property price decline and worsening mortgage credit conditions Fannie Mae credit expenses hit the roof to $9.2 billion in the third quarter.

The government may have to bailout Fannie Mae again with another billion dollar injection of capital to keep the company afloat. However the government has assured shareholders that they will keep a positive level of shareholders equity.

Source: USAtoday