Admitting what the market already knows, Fannie Mae (NYSE: FNM) said in its 10-Q that

Accordingly, there continues to be uncertainty regarding the future of Fannie Mae, including whether we will continue to exist in our current form after conservatorship is terminated. The options for reform of the GSEs include options that would result in a substantial change to our business structure or in Fannie Mae’s
liquidation or dissolution.

The cause of the statement is the $11.5 billion loss that the company posted in its first quarter. Most of the losses were do to the deteriorating housing market. It credit-related deficits consist of provision for loan losses,  provisions for guaranty losses and foreclosed property expense.

The most important figure in the filing may be the average default rates for the quarter were .46% up from .17% in the period a year ago

Douglas A. McIntyre