Yesterday, Fannie Mae released its first quarter financial results, reporting a net loss of $11.5 billion for the quarter, compared to a loss of $15.2 billion in the fourth quarter of 2009. Including $1.5 billion of dividends on senior preferred stock held by Treasury, the net loss attributable to common stockholders was $13.1 billion, or ($2.29) per diluted share, compared with a loss of $16.3 billion, or ($2.87) per diluted share, in the fourth quarter of 2009. The first-quarter loss resulted in a net worth deficit of $8.4 billion as of March 31, 2010, taking into account a $3.3 billion reduction in the company's deficit related to the adoption of new accounting standards, as well as unrealized gains on available-for-sale securities during the first quarter. The new accounting standards require the company to consolidate the substantial majority of its mortgage backed securities (MBS) trusts, resulting in the trusts’ underlying assets (principally mortgage loans) and liabilities held by third parties (principally MBS certificates issued by the trusts) being recorded on its condensed consolidated balance sheets.

The Acting Director of the Federal Housing Finance Agency, as conservator, has asked Treasury to provide Fannie Mae $8.4 billion on or prior to June 30, 2010. If granted, this request will bring the company's cumulative draw to $83.6 billion.

During the first quarter, Fannie Mae completed 94,000 loan modifications, more than half of which were conversions of trial modifications under the Home Affordable Modification Program. The company also purchased or guaranteed an estimated $191.4 billion in loans, measured by unpaid principal balance, including approximately $40 billion in delinquent loans purchased in March from our mortgage backed securities trusts. Not including the delinquent-loan purchases, our purchases and guarantees financed approximately 516,000 conventional single-family loans, and approximately 61,000 multifamily units.