Fannie Mae Warns of Possible $9 billion Loss

Shares of Fannie Mae slipped Tuesday as the mortgage giant’s outside auditor KPMG refused to sign off on its third-quarter earnings report, causing the company to miss a regulatory deadline for filing it.

The company’s stock fell 80 cents, or 1.1 percent, to close at $69.40 on the New York Stock Exchange.

Fannie Mae, whose accounting is under investigation by the Securities and Exchange Commission, also said Monday that if the agency finds that it has improperly accounted for derivatives — the financial instruments it uses to hedge against interest-rate swings — it would show an estimated net loss of $9 billion for the July-September period. And it acknowledged that some of its accounting policies do not comply with generally accepted accounting principles.

Washington-based Fannie Mae, which finances one of every five home loans in the United States, disclosed the SEC investigation on Sept. 22, stunning investors.

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