Fannie Mae Asks for $15 Billion More

Posted on November 5, 2009

From USA Today

Fannie Mae is asking for an additional $15 billion in government aid after posting another big loss in the third quarter as the taxpayer bill from the housing market bust keeps rising.

The government-controlled company continued to see a dramatic surge of borrowers fall behind as the unemployment rate climbs. At the end of last month, about 4.7% of Fannie Mae’s borrowers had missed at least three payments. That’s nearly triple last year’s level.

Seized by federal regulators 14 months ago, the problems at Fannie Mae and sibling company Freddie Mac have proven far worse than most experts had foreseen. Fannie Mae’s request Thursday will bring the tab for rescuing both companies to about $111 billion. The government has promised up to $400 billion in assistance.

And Fannie Mae cautioned: “We do not expect to operate profitably in the foreseeable future.”

More money the taxpayer will never get back.  Pretty soon we’re going to be talking real money./sarc

Posted in: Economy