This week, after assessing the events surrounding the September 7, 2008 appointment of the Federal Housing Finance Agency ("FHFA") as conservator of each of FNMA and FHLMC
, the Company concluded that applicable accounting principles would likely require it to recognize the other-than-temporary impairment of its FNMA and FHLMC
Results for this period also include $34 million in losses, net of tax, recognized as a result of the decline in value of FHLMC
and FNMA preferred stock, which reduced EPS by $1.
Sovereign has held FNMA and FHLMC
investment grade preferred stock in its investment portfolio for several years and has never sold any of these securities at a loss.
Once the regulatory and SEC review of FHLMC
is completed and restated financial information is available, Management believes the market value of these securities will improve.
13 per diluted share, an other-than-temporary impairment to FNMA and FHLMC
securities held in available-for-sale investment portfolio of $.
Noninterest income increased by $1,773,000, primarily due to the gain of $1,966,000 from the sale of $1,998,000 of FHLMC
stock, offset by decreased gain on the sale of loans of $194,000.
With the increase in value of the FHLMC
stock prior to the sale, net worth increased by 11.
Kevin worked at FHLMC
since 2001 as an institutional sales manager.
The Board of Directors gave a sale order with a specified price in April 2000 to sell shares of the FHLMC
stock; that sale order was completed during this quarter.
Winstar now offers Treasuries (Bills, Notes, Bonds, Strips and TIP's), Agencies (Benchmark bullets in FNMA, FHLB, FHLMC
, FFCB, etc.
Fieldstone is licensed to originate first- and second-lien mortgage loans in over 40 states and is approved as a seller/servicer by FNMA, FHLMC
, HUD and VA.