The government backed mortgage group Fannie Mae posted its biggest loss of $3.6 billion in the fourth quarter of 2007, which amounts to a loss of $2.1 billion for the 2007 fiscal year. Even with its losses the Office of Federal Housing Enterprise Oversight has removed a restriction which now allows Fannie to buy significantly more mortgages.

Fannie Mae is promoting responsible lending, and is working in local communities throughout the nation to help develop solutions to the problem of predatory lending.

Statement by Daniel H. Mudd President and Chief Executive Officer on August 10