Fannie Mae to Miss 2004 Filing Deadline

Mortgage giant Fannie Mae, previously accused by regulators of manipulating earnings, disclosed Thursday that it will miss the regulatory deadline for filing its financial report for 2004 and may have to record an additional loss of some $2.4 billion. The discovery of falsified signatures raised the possibility of criminal activity by company employees.

Fannie Mae, which is the largest U.S. buyer of home mortgages, recently was ordered by the Securities and Exchange Commission to restate its earnings back to 2001, a correction that could reach an estimated $8.4 billion. That would erase nearly one-third of the company’s reported profit since 2001. The newly disclosed potential loss would bring the restatement to nearly $11 billion.

In a filing with the SEC Thursday, the government-sponsored company said it would not be able to meet a March 31 deadline to file the annual report and was unable to provide “a reasonable estimate” of its earnings for 2003 and 2004.

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