Fannie to tap into funds from Treasury Dept.

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.