Fannie asks gov’t for almost $4.6B after 4Q loss

Derek Kravitzz, GOPUSA

2/29/2012

Mortgage giant Fannie Mae said Wednesday that it lost money in the fourth quarter and is asking the federal government for nearly $4.6 billion in aid to cover its deficit.

Washington, D.C.-based Fannie said it lost roughly $2.4 billion in the October-December quarter, stung by declining home prices. Revenue was about $4.5 billion.

The government rescued Fannie and sibling company Freddie Macin September 2008 to cover their losses on soured mortgage loans. Since then, a federal regulator — the Federal Housing Finance Agency — has controlled their financial decisions.

Taxpayers have spent more than $150 billion to prop up Fannie and Freddie, the most expensive bailout of the 2008 financial crisis. The government estimates that figure could top $259 billion to support the companies through 2014 after subtracting dividend payments.

Fannie has received more than $116 billion so far from the Treasury Department, the most expensive bailout of a single company.

Fannie’s bailout money totaled roughly $16.4 billion in 2011 after accounting for dividend payments. That’s up from about $7.3 billion in 2010 but down from about $32.5 billion in 2009.

Fannie officials say losses have increased in recent quarters for two reasons: Some homeowners are paying less interest after refinancing at historically low mortgage rates; others are defaulting on their mortgages.

And now… the rest of the story. …..