| Fannie Mae Q3 loss at $19.7 bn; seeks $15 bn Fed funds | |
| Press Trust of India / New York November 6, 2009, 16:30 IST | |
Bailed out mortgage lender Fannie Mae has reported losses of $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 $15 billion.
Fannie Mae's losses for the latest quarter under review were mainly on account of credit-related expenses to the tune of $22 billion. In comparison to the second quarter of this year, losses has widened from $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 $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 $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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