Early Briefing: Sunrise Files 2007 Financial Statement
*Sunrise Senior Living said it lost $70.3 million in 2007, as the company's accounting restatement weighed on its finances.
McLean-based Sunrise, the nation's largest senior living provider, also said it has had to pull back expansion plans because of difficult credit markets, cutting the number of new apartments it planned to build in 2008 by as much as half. Sunrise filed its 2007 annual report yesterday, moving closer to ending a difficult chapter. The company's financial restatement has reduced earnings by $185 million over about a decade and spurred a lawsuit, sweeping changes in management and other challenges. Its 2007 loss, equal to $1.41 a share, compared with a 2006 profit of $15.3 million (30 cents).
*James B. Lockhart III, the director of the new agency regulating Fannie Mae and Freddie Mac, told hundreds of his employees Thursday that they face a difficult task in addressing the challenges that have rocked the two housing finance giants and that even more staff may be required to carry out the government's expanded mission.
*Separately, Fannie Mae and Freddie Mac said they would increase the financial incentives they offer to lenders who keep distressed and out-of-touch homeowners from foreclosure.They said the incentives should encourage lenders to do more to help borrowers and thus reduce costs in the long run. Freddie Mac will pay lenders $500, up from $250, to arrange a repayment plan that allows a homeowner to make up missed payments over time. If the lender modifies the loan, reducing the interest rate, for example, they will receive $800, up from $400. The new payment structure goes into effect today.
August 1, 2008; 5:00 AM ET
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