More Money, Please

Fannie Mae had a miserable fourth quarter, losing $25.2 billion. The lender asked its conservator—the Federal Housing Finance Agency—for help. In turn, the FHFA went to Treasury for $15.2 billion under the terms of its senior preferred stock purchase agreement “in order to wipe out our net worth deficit” at the end of last year, according to Fannie. “If current trends in the housing and financial markets continue or worsen, we expect that we also will have net worth deficit in future periods, and therefore will be required to obtain additional funding from Treasury,” the lender states. Good thing Fannie’s getting more goodies from Treasury under the Obama foreclosure plan.