Despite net income of $73 million in the previous quarter, Fannie Mae fell back into losing territory in the first quarter on 2011, according to the Wall Street Journal. Fannie reported a $6.5 billion net loss after it increased its loan-loss reserves, revised down its home price forecast for 2011 and took large hits on foreclosure properties. Fannie also racked up $11 billion in credit-related expenditures, a jump from $4.3 billion last quarter.
This past Friday, the government-sponsored Fannie said it would request a fresh taxpayer infusion of $6.2 billion from the government after paying dividends to the treasury.
The increase in losses came despite a drop in the share of single family delinquencies. Those fell to 4.27 percent at the close of March, down from 4.48 percent at the end of last year. Fannie has about $206 billion in delinquent loans on its books, according to the Journal. [WSJ]