Fannie Mae seeks $10.7B in US aid after 2Q loss
Fannie Mae plans to tap $11 billion in new government aid after posting another massive quarterly loss as the taxpayer bill from the housing market bust keeps growing.
The mounting price tag for the rescue of Fannie and its goverment-sponsored sibling, Freddie Mac, is surpassed only by insurer American International Group Inc., which has received $182.5 billion in financial support from the government so far.Fannie Mae’s new request for $10.7 billion from the Treasury Department will bring the total for Fannie and Freddie to nearly $96 billion.
Together, Washington-based Fannie and McLean, Va.-based Freddie own or guarantee almost 31 million home loans worth about $5.4 trillion. That’s about half of all U.S home mortgages.
« We are dependent on the continued support of Treasury in order to continue operating our business, » Fannie Mae said in a Securities and Exchange Commission filing late Thursday.
The two companies lowered their standards for borrowers during the real estate boom and are reeling from the bust. High-risk loans, now defaulting at a record pace, have come back to haunt the companies. Worse still, the recession is causing formerly reliable homeowners with good credit to default.
N.B. Fannie Mae et Freddie Mac sont des compagnies parapubliques contrôlées par le gouvernement américain.