Fannie Mae posts $19.7 bn Q3 loss; seeks $15 bn Federal funds
New York: Bailed out mortgage lender Fannie
Mae has reported losses of USD 19.76 billion for the September
quarter, bogged down by staggering credit-related expenses.
The ailing entity, which is surviving on billions of
dollars-worth Federal funds, has requested the US government
for another USD 15 billion.
Fannie Mae`s losses for the latest quarter under review
were mainly on account of credit-related expenses to the tune
of USD 22 billion. In comparison to the second quarter of this
year, losses has widened from USD 15.17 billion.
In a statement on Thursday, the mortgage lender said the
third quarter results were hit by credit-related expenses,
reflecting the losses associated with increasing number of
loans that were acquired from mortgage-backed securities
trusts in order to pursue loan modifications.
The Federal Housing Finance Agency (FHFA), which is
acting as the caretaker of Fannie Mae, has requested the US
Treasury for USD 15 billion in extra funds. In addition, the ,
agency has asked the government to make the amount available
"on or prior to December 31, 2009".
For the September 2009 quarter, the mortgage lender raked
in revenues to the tune of USD 5.95 billion.
"We expect that our credit losses and credit loss ratio
will continue to increase for the remainder of 2009 and during
2010," the statement noted.
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