Fannie, Freddie Bailout Breaks Into The Black
WASHINGTON – The federal government, which has been operating Fannie Mae and Freddie Mac under conservatorship since September 2008, reported Friday that the two mortgage giants lost another $7.8 billion in the third quarter and will need another $2.6 billion in financial aid–but paid the government $3.7 billion in dividends–the first time the payouts have exceeded the company’s financial aid.
Still, it was the 13th straight quarter Fannie Mae lost money, this time $3.5 billion, bringing its total losses for the first three quarters of the year to $19.7 billion. In addition, home foreclosures and mortgage defaults are continuing to mount, boding ill for the future.
Fannie’s report came two days after Freddie Mac announced a $4.3 billion loss for the third quarter and an additional request of $100 million in government bailout assistance.
The two companies have absorbed almost $153 billion in government bailout money over the past two years and paid $16.5 billion in dividends on preferred shares owned by the U.S. Treasury in both.
Republicans in Congress say they will make a resolution of the two housing giants one of their top priorities when they take over the House in January.