Fannie Mae $4.6 Billion
March 1, 2012 by staff
Fannie Mae $4.6 Billion, Fannie Mae , the biggest source of money for U.S. home loans, said on Wednesday it would seek $4.6 billion in additional federal aid after reporting a fourth-quarter loss.
Earlier on Wednesday, the government-controlled mortgage finance company posted a loss of $2.4 billion for the quarter ended December 31. That pushed Fannie Mae’s loss for 2011 to $16.9 billion from $14.0 billion a year earlier, the company said.
Fannie Mae’s pre-2009 book of soured loans and declining home prices continue to make it difficult for the company to turn a profit.
“We think that we have reserved for and recognized substantially all of the credit losses associated with the legacy book,” Chief Financial Officer Susan McFarland said in an interview.
The government seized Fannie Mae and Freddie Mac, which together back roughly half of all outstanding U.S. mortgages, in September 2008 as losses from failing home loans threatened the agencies’ solvency.
Fannie Mae has borrowed more than $116 billion from the government and paid almost $20 billion in the form of dividends.
“We’re very focused on returning to profitability so we don’t have to draw (from Treasury) to cover operating losses,” said McFarland, who is also an executive vice president.
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