Wednesday, February 27, 2008
US – “toughest housing and mortgage markets in a generation”
US mortgage giant Fannie Mae has posted a $3.55bn (£1.8bn) loss for the three months to the end of December. It blamed rising home loan defaults and set aside $2bn to cover further bad loans, warning the US housing slump could still get worse. The quarterly loss cut into full-year earnings and the firm reported a loss for 2007 of $2.05bn, compared with a profit of $4bn for the year before. It said it expects US house prices to fall between 5% and 7% in 2008.