Fannie Mae Reports 2.3 Billion Loss

Fannie Mae reported a 2.3 Billion dollar loss for the 2nd quarter of 2008 which ended June 30, 2008. The loss was $2.54 a share, which was way more than analyst predicated at 68 cents a share. The news caused the stock price to drop 9.1 percent.

The big loss was attributed to rise in default on loans. Fannie Mae has announced some big changes to combat this loss that will send shockwaves throughout the industry. Fannie said it will eliminate loans for solid credit borrowers with no or little proof of income. This means no more stated loans for Fannie Mae. It said it will also be eliminating no or small down payment loans. We will have to see if that means they will cut loan limits below the 97% that is maximum right now.

Fannie Mae is also raising its mortgage fees which will be passed on to consumers in the form of higher rates or higher closing costs.

If you need advice on obtaining a mortgage for the purchase of a new home or for refinancing a current home, then feel free to contact me at 888-287-3278 or send me an e-mail to DelawareMortgaes@yahoo.com.

John R. Thomas - Certified Mortgage Planner - Primary Residential Mortgage, Inc.

www.DelawareMortgageLoans.net