Third-Quarter Loss at Fannie Mae More Than Doubled

, the place mortgage company, said yesterday that its third-quarter loss more than doubled, to $1.39 billion, as a deepening lodging slack increased mortgage delinquencies. Related

The nett loss was caused by a $2.24 billion diminution in the value of derivative contracts and $1.2 billion in recognition losings among the $2.7 trillion of mortgage assets Fannie Mae have or guarantees, the company said in a filing with the Securities and Exchange Commission.

The head executive, Daniel H. Mudd, said he expected the lodging marketplace to worsen, with the norm terms of places falling 2 percentage this twelvemonth and 4 percentage in 2008.

The third-quarter nett loss amounted to $1.56 a share, and compares with a nett loss of $629 million, or 79 cents a share, in the one-fourth a twelvemonth earlier.

Credit-related losings in the time period surged by $1.6 billion, to $2 billion, while losses on securities guaranteed by Fannie Mae rose $857 million, to $1 billion, the company said. Both reverses stem “from place terms failing and recognition marketplace disruption.”

Fannie Mae, which have or warrants about 20 percentage of the place mortgage market, also gave consequences for the first and 2nd quarters, bringing it up to day of the month on its net income reports.

Net income for the first three living quarters of 2007 dropped 57 percent, to $1.51 billion, or $1.17 a share, from $3.46 billion, or $3.16, a twelvemonth earlier, the company said.

The company said the estimated just value of its nett assets, a measurement of its worth tracked by analysts and investors, driblet to $34.2 billion, a drop of $8.7 billion from the start of the year.

Fannie Mae’s mortgage recognition book of concern grew 10 percentage in the first nine months, to $2.8 trillion, the company said. Its share of the marketplace in mortgage chemical bonds rose to 41.2 percentage from 24.3 percentage in the time period in 2006.

“Fannie Mae is getting a batch more loans that ran into their recognition criteria but are at the low end of their range,” said Gary Gordon, an analyst at Portales Partners in New York. “So they will see rising recognition losings at least until 2010.”