Mortgage giant Fannie Mae has reported a third quarter loss of $19 billion and has requested the Treasury for $15 billion more as aid for its survival. Fannie Mae and Freddie Mac were taken by the federal government under its control in September last year.
Fannie Mae has suffered losses of $111 billion since then, and with this $15 billion aid it has added almost one third of the $45 billion aid it had requested for earlier. Freddie Mac, meanwhile, has taken total aid equaling $51 billion.
Fannie Mae has said that it is likely to report losses and seek for Treasury aid in the time to come as well. It also said that certain activities like changing mortgages to help homeowners in avoiding foreclosure, which it has undertaken at the Treasury’s behest, were increasing its losses even further.
It has also said that a group of investors had approached it showing interest in purchasing 50 percent of its tax credits at a premium.
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