Fannie Mae suffers $23.2 bln loss

By AFP

July 15, 2010 Updated May 8, 2009 at 10:02 AM CDT

Troubled US mortgage finance giant Fannie Mae on Friday reported a loss of 23.2 billion dollars in the first quarter of 2009 as it reeled from a home mortgage meltdown that triggered global crisis.

Following the setback, the company which was effectively take over by the government after a meltdown last years, said it had asked the US Treasury for an additional 19 billion dollars to help it weather the extended crisis.

Fannie Mae said the weak first quarter results stemmed from "credit-related expenses, securities impairments and fair value losses" as "persistent deterioration in housing, mortgage, financial and credit markets continued to adversely affect our financial results."

The first quarter loss compared with a loss of 25.2 billion dollars in the fourth quarter of 2008.

The company and its troubled twin, government-controlled Freddie Mac, finance more than 40 percent of US home mortgage and were taken over by the government in September last year in a bid to avert their collapse and a further meltdown of the mortgage market.

"Fannie Mae is continuing its efforts to support the housing market both by working with lenders, loan servicers and the government to help homeowners avoid foreclosure and by providing liquidity to the mortgage market," a statement said.

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