Taxpayer funds needed for Fannie Mae

Tajikistan News.Net
Thursday 5th November, 2009

US mortgage lender Fannie Mae has posted another multi-billion dollar quarterly loss.

Reporting a net loss of 18.9 billion dollars in the third quarter, the government-controlled lender said it needed an additional 15 billion dollars in taxpayer funds to catch up with its losses.

Fannie Mae said the third-quarter results were largely due to 22 billion dollars of credit-related expenses and the increasing number of loans that were acquired from mortgage-backed securities trusts.

The bailed-out lender has been buying mortgage-backed securities whose value has dropped.

The company has now turned to the Treasury Department to seek more public funds to keep it operating.

Fannie Mae and another state-controlled mortgage lender Freddie Mac have already received hundreds of billions of dollars as part of a government takeover aimed at propping them up.

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