Fannie Mae holds investor call over credit losses

Source: Exec Digital USA

Date :16/11/2007 09:12:49

Fannie Mae said it plans to hold an investor call on November 16 to answer questions about technical accounting issues.

The U.S. mortgage lender will answer questions relating to its Forms 10-Q for the first, second, and third quarters - filed last week with the Securities and Exchange Commission - after Fortune magazine reported that the lender may be "camouflaging" credit losses.

"Investors and analysts have been calling with follow-up questions and the appropriate way to deal with this was to schedule a call," a Fannie Mae spokeswoman said on Thursday.

Compliance

On Thursday, the regulator, Office of the Federal Housing Enterprise Oversight, or OFHEO, said Fannie Mae is making progress meeting regulatory standards, they are not fully compliant.

"In 2007, Fannie Mae and Freddie Mac continued to make progress, but neither company has completed all of the items identified in their consent orders," the regulator said in its 2007 Performance and Accountability report.

Value downturn

Fannie Mae said last week that its third-quarter net loss doubled from a year earlier to $1.52 billion, as slumping home prices and credit tightening drove down values of mortgage securities.

The stock closed at $43.04 on the New York Stock Exchange. Since the beginning of October, shares have lost about 31 percent of their value.

Friday's call will start at 9:00 a.m. Eastern Time, and Chief Financial Officer Stephen Swad and other executives will take questions, the company said.

November 16, 2007