Fannie Mae has asked for another $10.7bn
August 7th 2009 00:53
US mortgage finance firm Fannie Mae has asked the Treasury for another $10.7bn, as it announced a loss for the second three months of 2009.
Fannie Mae reported a loss of $15.2bn, but it was smaller than the $23.2bn it lost in the previous quarter. It is the third time that Fannie Mae has requested government aid in recent months. It received $15.2bn in March.
The Treasury has made available funds of $200bn each to Fannie Mae and fellow mortgage giant Freddie Mac. The results were driven by $18.8bn in losses on loans due to the weakening housing market conditions, made worse by rising unemployment.
Fannie Mae and Freddie Mac buy mortgages from approved lenders then sell them to investors. Together they underwrite more than half of all US mortgages, worth about $5.4 trillion.
The firms hit difficulty after lowering their criteria for borrowers during the housing boom.
Next year, the US government will unveil its plans for Fannie and Freddie. It may keep the companies private, wind them up, or merge them into a government agency
read more: http://news.bbc.co.uk
Read other blog about Politics: Really Long Link
Fannie Mae reported a loss of $15.2bn, but it was smaller than the $23.2bn it lost in the previous quarter. It is the third time that Fannie Mae has requested government aid in recent months. It received $15.2bn in March.
The Treasury has made available funds of $200bn each to Fannie Mae and fellow mortgage giant Freddie Mac. The results were driven by $18.8bn in losses on loans due to the weakening housing market conditions, made worse by rising unemployment.
Fannie Mae and Freddie Mac buy mortgages from approved lenders then sell them to investors. Together they underwrite more than half of all US mortgages, worth about $5.4 trillion.
The firms hit difficulty after lowering their criteria for borrowers during the housing boom.
Next year, the US government will unveil its plans for Fannie and Freddie. It may keep the companies private, wind them up, or merge them into a government agency
read more: http://news.bbc.co.uk
Read other blog about Politics: Really Long Link
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