Fannie Mae, the biggest provider of U.S. home mortgage funding, has reported a $14.8 billion quarterly net loss and says it needs U.S. Treasury for third time to stay in business. The company noted a “significant uncertainty” of its long-term financial health in reporting its eighth consecutive quarterly loss, reported Reuters. The government last September seized the Fannie Mae and rival Freddie Mac to ensure that they would continue supporting housing while taking losses. The government promised to inject up to $400 billion of capital. Washington-based Fannie Mae said its regulator requested $10.7 billion from the Treasury to erase a deficit in its net worth, bringing total draws under a senior preferred stock purchase program to $45.9 billion. The $14.8 billion loss compares with a $2.3 billion loss in the same quarter a year ago and a $23.2 billion loss in the first quarter. Current trends mean Fannie Mae will likely seek additional funding from the Treasury via senior preferred stock purchases, it said.
Fannie Mae Reports $14.8 billion loss, Wants to Dip into Treasury Funds Again
Mortgage lender says its regulator requested $10.7 billion to erase a deficit in its net worth.
August 7, 2009