Global News

Fannie Mae reports $6.5B loss for fourth-quarter 2017

Fannie Mae reports $6.5B loss for fourth-quarter 2017

The mortgage-finance company, which reported fourth-quarter and full-year financial results on Wednesday, said it will need to draw $3.7 billion from the U.S. Treasury in March to keep its net worth from going negative. In December, the Treasury Department and the Federal Housing Finance Agency, which controls the companies, agreed to allow Fannie and Freddie to hold capital buffers of $3 billion apiece. Freddie Mac paid $11 billion to the exchequer in 2017. For full-year 2017, Fannie Mae posted a net income of $2.5 billion, down from $12.3 billion in 2016. The mortgage giant added that its annual pre-tax income for 2017 was $18.4 billion, compared with $18.3 billion in 2016 which it said reflects "the strength of the company's underlying business fundamentals". "As it turned out, [that money] was not enough to cover the losses it suffered in the fourth quarter thanks to the Republican tax plan", HousingWire said. "That's why Congress can and should enact comprehensive housing finance reform this year to create a sustainable housing system".

If Fannie Mae receives the cash infusion, it will mark the first time since 2012 that the government has been forced to pour money into the mortgage association. The company said it expects the FHFA to request $312 million from the Treasury. That lower rate, estimated at 20 percent, is expected to benefit Fannie Mae in 2018, officials said in the Wednesday report. "Other factors that may result in volatility in the company's quarterly financial results include developments that affect its loss reserves, such as changes in interest rates, home prices or accounting standards, or events such as natural disasters".




Watt said that although the companies were on much better footing, financially, since the meltdown of 2008, the incremental draw-down of their taxpayer buffer meant there was greater risk of the need for a taxpayer bailout.


  • One million urge Snapchat roll-back

    One million urge Snapchat roll-back

    Influencers need data in order to convince brands to work with them on paid partnership deals. Midha said, however, that he didn't think it likely Snapchat would reverse course.
    Surprise! Amy Schumer Secretly Marries Chef Chris Fischer

    Surprise! Amy Schumer Secretly Marries Chef Chris Fischer

    Fisher once worked at Mario Batali's New York City restaurant, Babbo, after being introduced by his friend, Jake Gyllenhaal . According to Us Weekly , the comedian tied the knot in a secret ceremony with her boyfriend, Chris Fischer , this week.
    Cryptocurrency mining is hampering the search for alien life

    Cryptocurrency mining is hampering the search for alien life

    It needs GPUs to scan radio frequencies in the hope of understanding how the first stars and galaxies formed. Scientists use GPUs due to its vast computing capability especially when working with large amounts of data.
  • VENEZUELA: Lima Group Rejects Call For Elections In The Country

    VENEZUELA: Lima Group Rejects Call For Elections In The Country

    Several members, notably including Colombia, have said they would not recognize the results of the election. Colombia and Venezuela have a long history of diplomatic and territorial disputes.
    Power-sharing talks in Northern Ireland collapse

    Power-sharing talks in Northern Ireland collapse

    Ms McDonald said her party warned the DUP to close the deal "before those opposed to it could unpick" it. The power-sharing talks are believed to have collapsed over a proposed Irish language act.
    Buffett's bumpy ride with IBM draws to a close with stock sales

    Buffett's bumpy ride with IBM draws to a close with stock sales

    The company sold 10 million shares in General Motors , 6 million shares in Wells Fargo and 1 million shares in American Airlines . While Buffett did miss selling at the most recent top, Berkshire has done exceptionally well with its investment in Phillips 66 .
  • Alabama restaurants, 4 chefs among semifinalists for 2018 James Beard Awards

    Alabama restaurants, 4 chefs among semifinalists for 2018 James Beard Awards

    Saffron NOLA , owned by the Vilkhu family and with executive chef Arvinder Vilkhu, opened previous year on Magazine Street. And the one it seemed the entire city was pulling for: Misti Norris, semifinalist in the Rising Star of the Year category.
    Meek Mill Could Have Sentence Overturned Due To Possible Police Corruption

    Meek Mill Could Have Sentence Overturned Due To Possible Police Corruption

    Meek Mill's legal team continues to churn out proof of conduct they hope will lead to the rapper's freedom. Gibson said that Mill took a gun out of his waistband to discard it and didn't aim it at anyone.
    Kiwi official 'got it wrong' in Wales match

    Kiwi official 'got it wrong' in Wales match

    England have lost one No 8 but gained another before the Calcutta Cup match against Scotland in Edinburgh next week. They next meet Scotland at Murrayfield while Wales face unbeaten Ireland in Dublin with both games on February 24.
  • Schumer: Trump is an obstacle to bipartisan consensus on DACA

    Schumer: Trump is an obstacle to bipartisan consensus on DACA

    Republican Senators will introduce a series of amendments this week that would drastically reform immigration policies. The proposal comes from roughly two dozen senators from both sides of the political aisle.
    McDonald's Commits To More Balanced Happy Meals by 2022

    McDonald's Commits To More Balanced Happy Meals by 2022

    Currently, 28 per cent of Happy Meal combinations offered on menu boards in 20 of McDonald's major markets meet the new criteria. Additionally, McDonald's said that it will make cheeseburgers available in Happy Meals only if customers request them.
    USA  reaffirms importance of close partnership with Lebanon

    USA reaffirms importance of close partnership with Lebanon

    Tillerson left the meeting with Aoun without making a statement, but he signed the guest book at the Baabda Presidential Palace. US President Donald Trump has been tough on Hezbollah , imposing new sanctions created to damage Iran and its allies.