The nations largest mortgage agencies have reported their earnings this week. Fannie Mae posted a loss of 3.6 billion for the fourth quarter of 2007. Fredie Mac posted a loss of 2.5 billion for the fourth quarter of 2007. Both lenders have been hurt severely with decling home values and the secondary credit market slowdown. The lenders provided guidance into their 2008 earnings that reflect a continued slow down to the real estate market throught the first three quarters and are predicting the market may bottom out and begin to recover by the fourth quarter. The agencies did receive some welcome news on Wednesday. The office that oversees their operations has allowed them to purchase loans above their pre set caps. This could provide some additional liquidity to the credit markets. © LowRateMortgage.com 2-28-2008

 

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