WASHINGTON – Fannie Mae requested an additional $4.6 billion in federal bailout funds this morning after announcing a $2.4 billion loss for the fourth quarter of 2011 and a $16.9 billion loss for the year.
The additional assistance will bring to more than $117 billion to amount of government aid poured into the mortgage giant since its September 2008 takeover by the federal government—making it the biggest government bailout in U.S. history. Freddie Mac, which is also expected to request additional assistance, has consumed more than $72 billion in bailout funds since then.
The two companies are critical to the mortgage business of credit unions because they buy an estimated two-thirds of all single family mortgages originated by credit unions.
Fannie Mae said the company’s fourth quarter loss reflected $5.5 billion in credit-related expenses, the substantial majority of which were related to its legacy (pre-2009) book of business and due largely to a decline in home prices.
The secondary mortgage giant’s $16.9 billion fiscal year loss is up from the $14 billion loss it reported for 2010, due primarily due primarily to a decline of $6.1 billion in the market value of its huge mortgage portfolio.
