Fannie and Freddie Could Take a Major Hit from Exposure to Hurricane Damage
October 14, 2005
Fannie Mae and Freddie Mac have disclosed their potential losses from property damage in the Gulf Coast area – and the numbers are higher than most mortgage industry observers expected. According to the government-sponsored enterprises, Fannie and Freddie could lose up to a combined $1 billion because of damage wrought by Hurricane Katrina and Hurricane Rita. Fannie told investors last week that it expected after-tax losses of between $250 million and $550 million due to…