Fannie Mae posts $18.9 billion Q3 loss, taps Treasury | Reuters

Description

Fannie Mae, the largest provider of funding for U.S. home loans, said on Thursday bad mortgages and a federal foreclosure prevention program left it with a $18.9 billion loss, forcing it to tap the Treasury again to plug a hole in its net worth.

Fannie Mae (FNM.P) (FNM.N) , seized by the government last year, said the quarterly loss stemmed from $22 billion in credit-related expenses. These included charges on mortgages it bought out of securities as it modified loans under President Barack Obama's foreclosure prevention plan.

The company also boosted its provision for credit losses in future quarters, and said it expects those impairments to increase this quarter and through 2010.

The assessment is dire for the housing market that has appeared to post a fragile recovery over the past several months with a rebound in home sales and prices in some regions.

Original URL

http://www.reuters.com/article/ousivMolt/idUSTRE5A464620091105

http://www.reuters.com/article/ousivMolt/idUSTRE5A464620091105