Business News

Mortgage lender Fannie Mae posts nearly 19-billion-dollar loss

Nov 6, 2009, 0:48 GMT

Washington - US mortgage lender Fannie Mae said Thursday that it would seek 15 billion dollars in federal aid, after posting its ninth consecutive quarterly loss. Fannie Mae reported a net loss of 18.9 billion dollars in the third quarter of 2009, compared with a loss of 14.8 billion dollars in the second quarter of 2009. It said the latest loss was attributed to 22 billion dollars in credit-related expenses, which also included charges on mortgages it bought out of securities as it modified loans under President Barack Obama's foreclosure prevention plan. 'We are dependent on the continued support of Treasury in order to continue operating our business,' Fannie Mae said in a Securities and Exchange Commission filing Thursday, citing 'trends in the housing and financial markets,' according to Bloomberg news. Fannie Mae said it would also sell 2.6 billion dollars in unused tax credits. The government-backed lender, which together with Freddie Mac owns or guarantees about half of all US mortgages, was struck with massive losses amid the US housing collapse. Both Fannie and Freddie were placed in a government conservatorship last September and lie at the heart of Obama's plans to keep mortgage lending in the United States alive. The government has a 79.9-per-cent stake in both lenders in exchange for 200 billion dollars for conservatorships.

Business News

Mortgage lender Fannie Mae posts nearly 19-billion-dollar loss

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