Fannie Mae announced yesterday that it will tap into its lifeline of funds from the Treasury Department after reporting $58.7 billion in losses in 2008. The company said it would draw $15.2 billion out of its $200 billion federal line of credit. The government, in return, will receive preferred shares. The value of non-performing loans was $119.2 billion at the end of the year, compared to $27.2 billion at the end of 2007. Fannie Mae said it expects home values to drop 12 to 18 percent this year.
Fannie to tap into funds from Treasury Dept.
February 27, 2009 08:24AM
