My most recent post related that HUD was going to be asking for $800 Million to cover potential losses in the FHA Reverse Equity Mortgage Program.
As it turns out timing was great for the HUD story though, as the most recent Fannie Mae financial disclosure puts their losses in the first quarter alone at $23.2 BILLION. Those losses triggered a request for an additional $19 BILLION bail out from the Treasury.
Housing Wire news story is HERE.
The Good News?
Losses in First Quarter Went Down to ONLY $257 Million Per Day
In February I posted HERE that Fannie lost $25.2 BILLION in the 4th quarter 2008, a rate of $276 million per day (I should have said $274 Million per day as there were 92 days in that quarter).
The $2 Billion reduction in losses from prior quarter ($23.2 vs $25.2 Billion) meant that Fannie was now only losing $257 Million per day (90 days in that quarter), a reduction of 6.1%.
Feel better now?
P.S. The $800 Million annual request for FHA amounts to $2.2 Million a day:)