Fannie Mae has posted net loss attributable to common stockholders of $3.12bn, or $0.55 per diluted share, in the second quarter of 2010, compared to a net loss attributable to common stockholders of $15.16bn, or $2.67, in the same quarter last year.
The company posted net interest loss after provision for loan losses for the second quarter of 2010 of $88m compared to a net interest income after provision for loan losses of $1.1bn in 2009.
The fair value of the company’s net assets increased by $7.2bn from March 31, 2010, which resulted in a fair value net deficit of $138bn as of June 30, 2010.
Net loss attributable to common stockholders for the first half of 2010 was $16.18bn, or $2.84 per diluted share, compared to $38.36bn, or $6.76 per diluted share, in the same half of 2009.
Net interest loss after provision for loan losses for the first six months of 2010 were $9.24bn compared to a net interest income after provision for loan losses of $1.85bn in the same period a year ago.
The company said it expects that its financial results will continue to be negatively affected by losses primarily on a subset of loans it acquired between 2005 and 2008. The company expects that its credit-related expenses will remain high in 2010.
Mike Williams, president and CEO of Fannie Mae, said: “We are focused on sustainable home ownership, and our higher underwriting and eligibility standards reflect that. Across our industry, we are seeing a more realistic approach to housing and lending that bodes well for the future.
“At Fannie Mae, we are committed to maintaining appropriate standards while also supporting affordable housing for low- and middle-income families. We will also continue to support a variety of programs to reach borrowers who need help, so that whenever possible, they can avoid foreclosure and stay in their homes.”