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Fannie Needs $4.6 Billion More in Bailout Money

Fannie Mae announced Wednesday that it will ask for an additional $4.6 billion in federal aid after posting a big loss in the fourth quarter and a disagreement with Bank of America, Reuters News reports. 

Fannie Mae said it had a $2.4 billion loss in the fourth quarter, bringing the government-sponsored enterprise’s total to $16.9 billion in losses for 2011. 

The government took control of Fannie Mae and fellow GSE, Freddie Mac, in September 2008. Both GSEs have faced steep losses from a surge in defaulting loans the last few years. 

Besides the fourth quarter losses, Fannie said in a statement that a disagreement with Bank of America may also prompt the GSE to ask for more aid. Bank of America announced last week that it would no longer be selling certain mortgages to Fannie Mae. 

"If Fannie Mae collects less than the amount it expects from Bank of America, Fannie Mae may be required to seek additional funds from Treasury," the company said in a press release.

To date, Fannie has borrowed more than $116 billion from the government. 

 

 

 

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Comment by Robin Fraser on March 6, 2012 at 5:34pm

Really???? Another bail out?  I think not!  Our country and economy can't afford another one.

Comment by Barbara Rolando on March 2, 2012 at 5:06pm

What does this mean? If Bank of America is not selling certain loans to Fannie Mae how does that translate into "If Fannie Mae collects less than the amount it expects from Bank of America, Fannie Mae may be required to seek additional funds from Treasury," . If Fannie is buying loans from B of A then they are not "collecting" they are "purchasing". And if they are purchasing fewer loans then why do they need MORE money to buy less. This is making my head hurt ;)

Comment by Chuks Odikpo on March 2, 2012 at 3:44pm

Can any one out there PLEASE explain to us what Fannie Mae has done with all the Billions they have borrowed? Is it for "Payroll' purposes only or to save the "Housing Mess".

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