Fannie Mae needs another $15 billion Following More Losses

Fannie Mae (NYSE:FNM) the US mortgage finance firm has asked for another $15bn (£9bn) in state aid. This is the fourth time that the firm has requested state aid; this comes after the firm announcing losses of $19bn between July and September.

The losses have come from the increased costs of buying bad mortgage backed loans as part of the government’s efforts to support the housing market. Freddie Mac (NYSE:FRE) was also taken under government control last year as well as Fannie Mae. Both companies request takes the amount that the pair has asked for from the US Treasury to more than $100bn.

Fannie Mae and Freddie Mac buy mortgages from approved lenders then sell them to investors. Both these companies make up half of all US mortgages, worth more than $5 trillion. Next year, the US government will unveil its plans for the two mortgage giants.

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