Fannie wants $7.8B more in Treasury aid

New York /
Nov.November 09, 2011 09:32 AM

alternate
text
Fannie Mae and CFO Susan McFarland
After reporting $5.1 billion in third-quarter losses Fannie Mae is seeking $7.8 billion more in Treasury Department aid, according to Bloomberg News. The loss is up from $3.5 billion for the prior year quarter and $2.9 billion from the second-quarter of this year.
The request comes shortly after federal regulators found the company to be stabilizing.

The losses are fueled by defaults on loans made before 2009 and plummeting interest rates that have weighed on expected revenue. Still, the company’s revenues have been increasing of late as loans originated since 2009 have higher fees and were given to stronger borrowers. Moreover, the number of homeowners that are 90 days or more delinquent on Fannie Mae loans has decreased every quarter since early 2010. They now comprise just 4 percent of Fannie’s single-family loan portfolio.

When requesting Treasury aid Fannie and Freddie Mac vowed to repay a 10 percent dividend. Thus far the two companies have requested about $185 million and repaid about $32 billion, leaving taxpayers to pay the remaining $153 billion. Fannie’s most recent, $7.8 billion request for more aid includes $2.5 billion that was to be repaid to Treasury in the form of dividends. Last week, Freddie Mac reported losses of $4.4 billion and is seeking $6 billion more of aid. [Bloomberg News]


Related Articles

arrow_forward_ios
President Joe Biden (Getty, iStock)
Treasury to expand reporting on shell companies in real estate deals
Treasury to expand reporting on shell companies in real estate deals
Fannie, Freddie to buy mortgages up to nearly $1M
Fannie, Freddie to buy mortgages up to nearly $1M
Fannie, Freddie to buy mortgages up to nearly $1M
(Getty)
Freddie Mac study of 12 million appraisals shows racial disparity
Freddie Mac study of 12 million appraisals shows racial disparity
FHFA director Sandra Thompson (FHFA, iStock)
Treasury suspends investment property restrictions to boost housing supply
Treasury suspends investment property restrictions to boost housing supply
From left: JPMorganChase CEO Jamie Dimon, Goldman Sachs CEO David Solomon and Morgan Stanley CEO James Gorman (Getty)
Demand for private-label mortgages on the rise
Demand for private-label mortgages on the rise
Fannie Mae CEO Hugh Frater (Fannie Mae, iStock)
Fannie Mae to count rent payments toward mortgage approval process
Fannie Mae to count rent payments toward mortgage approval process
Shares of Rocket Cos and LoanDepot rose while shares Fannie Mae and Freddie Mac plunged after Supreme Court ruling (Unsplash)
For mortgage sector stocks, Fannie and Freddie ruling was positive
For mortgage sector stocks, Fannie and Freddie ruling was positive
Mark Calabria and Sandra Thompson (Getty, FHFA)
Biden ousts Fannie, Freddie overseer, leaving them in government’s hands
Biden ousts Fannie, Freddie overseer, leaving them in government’s hands
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...