Fannie Mae will request another $4.6 billion in US government aid after posting a $2.41 billion loss in the fourth quarter, the mortgage finance company said Wednesday.
The company also warned it could be required to request additional aid stemming from an escalating battle with Bank of America over mortgage-repurchase requests.
Fannie Mae blamed its quarterly loss primarily on pre-2009 loans and declines in home prices, which pushed up the company’s credit-related expenses.
In the fourth quarter of 2010, Fannie Mae posted a slight profit to snap a streak of 13 straight quarterly losses, though the company resumed its place in the red in the following quarter and each since.
Fannie Mae and sister company Freddie Mac do not lend to consumers. Rather, they buy and guarantee home loans that meet their standards and package them into securities.
The two firms were taken over by the government in 2008 at the height of the financial crisis. The companies’ shares began trading on the over-the-counter market in 2010 after regulators ordered them to delist from the New York Stock Exchange.
wHAT???
“Fannie Mae and sister company Freddie Mac do not lend to consumers. Rather, they buy and guarantee home loans that meet their standards and package them into securities.”
But, this isn’t what landed us in hot financial and economic water to begin with…. DO WE EVER LEARN (I mean most sane Americans that is….)
Fannie Mae needs to be flushed down the toilet never to be seen or heard of again…
Sad, the REPUBLICANS could have ended this bottomless pit, yet somehow continue to “feed this monster”.
Isn’t that funny??? I mean the promised to end the corruption, and now are encouraging it!
So funny!