Fannie Mae recently reported a net loss of $2.4 billion in the fourth quarter of 2011, compared with a net loss of $5.1 billion in the third quarter of the year. For the full year of 2011, Fannie Mae reported a net loss of $16.9 billion, compared with a loss of $14.0 billion for 2010. The company says the increase in the net loss for the year was due primarily to a $6.1 billion increase in net fair value losses in 2011. “While economic factors such as falling home prices and high unemployment produced strong headwinds for our business again in 2011, we continued to grow a very strong new book of business as we have since 2009. During the year, Fannie Mae funded the market with more than $650 billion in liquidity and maintained its focus on strengthening Fannie Mae’s ability to support and improve the housing industry,” said Michael J. Williams, president and chief executive officer. Williams continues saying the company has recently set industry standards for underwriting that promotes sustainable homeownership and affordable rental housing.
(Image Credit: Eric Miller)