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Fannie Mae Asks For Another $8.4 Billion

From CNN’s Money.Com:

Fannie asks for another $8.4 billion

By Annalyn Censky, staff reporter

May 10, 2010

NEW YORK (CNNMoney.com) — Fannie Mae requested another $8.4 billion from the federal government on Monday, saying that it expects its deficits to continue due to trends in the housing and financial markets.

The government-controlled mortgage giant said it lost $13.1 billion applicable to common shareholders in the first quarter of 2010. In the year-earlier quarter, Fannie suffered a $23.2 billion loss, but an accounting change makes comparing the year-over-year losses difficult.

Fannie’s request for more federal funds comes just four days after Fannie’s twin Freddie Mac also asked for a handout – to the tune of $10.6 billion – after posting an $8 billion quarterly loss.

In using Fannie (FNM, Fortune 500) and Freddie (FRE, Fortune 500) to prop up the mortgage market, the government in December lifted a $200 billion limit on their bailouts, essentially giving the twin housing lenders a blank check. Fannie Mae has already received $76.2 billion from the federal government and Freddie has gotten $50.7 billion

For those taxpayers playing along at home, that is $126.9 billion dollars. To put this in perspective, the original European Union bailout of Greece only amounted to $142 billion.

And, lest we forget, neither Fannie nor Freddie are even mentioned in the financial regulation bill currently before the Senate.

Fannie’s bottom line took a greater hit from credit losses, as it saw the single-family delinuqency [sic] rate increase to 5.47%, up from 5.38% in the previous quarter.

So mortgage delinquency is still increasing? Even though we are in the midst of the wonderful Obama recovery?

While the rate increased, the company said the improved employment picture is at least slowing the pace at which the delinquency rate grows. Mortgages that remain "seriously delinquent" continue to do so for extended periods, the company also said.

As for the future, Fannie said it expects to continue to post losses and ask for government handouts in upcoming quarters.

"Due to current trends in the housing and financial markets, we continue to expect to have a net worth deficit in future periods, and therefore will be required to obtain additional funding from Treasury pursuant to the senior preferred stock purchase agreement," the company’s press release said.

In other words there is no ‘hope’ of ‘change.’

Obviously, constant Fannie Mae and Freddie Mac bailouts are going to be another feature of Mr. Obama’s ‘new normal.’

This article was posted by Steve on Monday, May 10th, 2010. Comments are currently closed.

4 Responses to “Fannie Mae Asks For Another $8.4 Billion”

  1. proreason says:

    “the single-family delinuqency [sic] rate increase to 5.47%”


    Drooling Barney and Obamy are thrilled.

    Straight America is getting it’s just due (along with non-straight, minorities, women, seniors….but forget all that….the important thing is that Straight America is being crippled.)

  2. Right of the People says:

    Is it too early to speak of impeachment?

  3. jackal40 says:

    Can we just say no? I mean seriously, just say no to any more bailouts – fire and prosecute those responsible for this fiasco? Please?

    “You can’t fix stupid, but you can vote it out!”

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