Fannie Mae Asks U.S. Treasury for $15 Billion More in Aid

Fannie Mae reports 2009 annual loss of $74.4 billion as commercial and residential mortgage market lag.
Fannie Mae Asks U.S. Treasury for $15 Billion More in Aid
A for sale sign is displayed outside a home in Miami, Florida. Fannie Mae reported a 2009 annual loss of $74.4 billion. (Joe Raedle/Getty Images)
2/27/2010
Updated:
10/1/2015
<a><img src="https://www.theepochtimes.com/assets/uploads/2015/09/forsale91308642.jpg" alt="A for sale sign is displayed outside a home in Miami, Florida. Fannie Mae reported a 2009 annual loss of $74.4 billion. (Joe Raedle/Getty Images)" title="A for sale sign is displayed outside a home in Miami, Florida. Fannie Mae reported a 2009 annual loss of $74.4 billion. (Joe Raedle/Getty Images)" width="320" class="size-medium wp-image-1822609"/></a>
A for sale sign is displayed outside a home in Miami, Florida. Fannie Mae reported a 2009 annual loss of $74.4 billion. (Joe Raedle/Getty Images)
Fannie Mae, the mortgage finance giant, reported a 2009 annual loss of $74.4 billion as the U.S. commercial and residential mortgage market continues to lag the rest of the economy in emerging from crisis.

The Washington, D.C.-based company was put under federal conservatorship with its sister company Freddie Mac in 2008 after the firm suffered deep losses due to crisis in the real estate market.

Last Friday, Fannie Mae asked the U.S. Treasury for $15.3 billion in additional funding.

Fannie Mae disclosed total non-performing loans, or loans that are in default, of $216.5 billion as of Dec. 31, 2009, up from $119 billion at the end of 2008. The losses suffered in the latest quarter were mostly caused by such loans in default.

“We expect to have a net worth deficit in future periods, and therefore will be required to obtain additional funding from Treasury,” Fannie Mae told Reuters.

In a statement, the company reiterated its mission in sustainable home-ownership for Americans. “We continue to work closely with our industry partners and the government to reach every borrower we can and to address rising foreclosures,” Fannie Mae CEO Mike Williams said in a statement. “Our overriding objective is keeping people in their homes whenever possible.”