WASHINGTON – Fannie Mae said yesterday it will ask for another $10.7 billion in government aid after posting a second quarter loss of $15.2 billion.
The second quarter loss is on top of a massive $23.2 billion loss for the first quarter, and compared to a $2.6 billion loss for the second quarter last year.
Fannie’s second quarter results were driven by $18.8 billion in credit losses due to the worsening housing market, exacerbated by rising unemployment. Nearly 4% of the loans Fannie Mae owns or guarantees were delinquent as of June 30, up from 1.4% a year earlier.
Non-performing loans guaranteed by Fannie Mae rose to $171 billion in June, from $144.9 billion in March and $119.2 billion in December.
Fannie’s new request will bring the total of bailout funds allotted it and Freddie Mac to a whopping $96 billion. Freddie is expected to report its quarterly results today
The government, which took the two secondary mortgage market giants under conservatorship last September, has pledged to provide as much as $400 billion in aid to the two..
