Fannie Mae Reports $5.1 Billion Quarterly Loss, Asks Government For More Money
Mortgage giant Fannie Mae is asking the Treasury Department for an additional $7.8 billion after a Q3 net loss of $5.1 billion. Last year during the same period the company’s losses were just $1.3 billion.
Fannie Mae has continued to watch losses mount as delinquency issues have risen in mortgages it purchased or guaranteed before 2009.
During their quarterly financial statement the company also revealed an increase in expenses stemming from foreclosed properties along with a declining interest rate which cuts into new and existing home payments as loans are accepted and begin repayment.
The latest request from the company would bring their total government bailout to $112.6 billion and will require an annualized dividend payment of $11.3 billion.
News of the extra cash request comes just one week after Freddie Mac requested an additional $6 billion from the federal government after reporting a quarterly loss of $4.4 billion. Freddie Mac has now borrowed $72.2 billion from the Treasury Department.
While shutting down the two company’s may appear like a smart decision to the casual observer they along with the smaller Ginnie Mae control 80% of the single-family mortgages that have originated since the start of 2009.
In the meantime executives at Fannie Mae recently asked for $13 million in bonuses which would be paid to the board of directors and top level employees, bonuses that would be paid by the American tax paying public. Company’s in the financial market that are under governmental control have argued since the financial collapse that they need bonuses to retain top talent, a loss of $5.3 billion hardly seems like top talent is being utilized at the mortgage giant.
Are you in favor of more payments to Fannie Mae and other mortgage backers that are collapsing under their own weight?