| NEWS ARCHIVES |
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| Fannie Mae posts massive loss as it seeks another US$15bil |
| 6 Nov 2009 |
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US state-controlled mortgage lender Fannie Mae has posted another massive quarterly loss and says it needs 15 billion US dollars more in taxpayer funds.
Fannie Mae reported a net loss of 18.9 billion US dollars in the third quarter, 35 percent smaller than a year ago.
But the figure is sharply higher than its 14.8-billion-US-dollar loss in the second quarter.
Combined losses to date stand at 56.8 billion US dollars.
Fannie Mae said the third-quarter results were largely due to 22 billion US dollars of credit-related expenses.
It attributes the losses to the increasing number of loans that were acquired from mortgage-backed securities trusts in order to pursue loan modifications.
The bailed-out lender has been buying mortgage-backed securities whose value has soured.
It’s part of the government's efforts to support the ailing housing market after a price bubble collapsed in 2006.
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