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Fannie Mae says loan losses will double in 2008

WASHINGTON
Fri Nov 9, 2007 4:03pm EST

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The headquarters of mortgage lender Fannie Mae is shown in northwest Washington October 3, 2006. Mortgage finance company Fannie Mae expects to see its home loan loss rate double in 2008 compared to this year, the company's chief executive said on Friday. REUTERS/Jason Reed

WASHINGTON (Reuters) - Mortgage finance company Fannie Mae (FNM.N) expects to see its home loan loss rate double in 2008 compared to this year, the company's chief executive said on Friday.

"We previously said that our credit loss ratio would be in the range of 4 to 6 basis points this year. That is still what we expect. Going forward, projecting a 4 percent national decline in home prices and a scenario where there is not a nationwide recession, we can see our credit loss ratio move into the range of 8 to 10 basis points next year," Daniel Mudd, the chief executive officer said in a conference call to investors.

(Reporting by Patrick Rucker)


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