(WASHINGTON, DC) -- Fannie Mae and her corporate brother, Freddie Mac, continue to drown in red ink, both housing-related agencies acknowledge.
DSNews.com reports Fannie Mae is asking for another $15.3 billion bailout from the Treasury, after the agency came up $16.3 billion in the red for the fourth quarter of 2009 and posted a loss of $74.4 billion for all of last year.
Last week, Fannie Mae's sibling government-controlled mortgage company, Freddie Mac, announced it lost $25.7 billion during the 2009 fiscal year, but Freddie said it does not need any money from the Treasury at this time, according to DSNews.com.
Although the housing crisis is showing signs of lessening in some major markets, it continues to take its toll on the nation's largest mortgage financier.
Fannie Mae's 2009 annual losses widened compared to the $59.8 billion deficit recorded for 2008, and its Q4 results marked the agency's 10th consecutive quarterly shortfall.
Since the government stepped in to take over the faltering mortgage giant in September 2008, Fannie has drawn a total of $59.9 billion in taxpayer dollars from the Treasury to stay afloat.
That amount doesn't include the more than $16 billion the company is now requesting.
Fannie Mae's supervisor, the Federal Housing Finance Agency (FHFA), has requested Treasury provide the additional funding by March 31, 2010.
According to Fannie Mae's latest financial report, a staggering increase in mortgage defaults continues to threaten its financial stability.
Fannie said 5.38 percent of its single-family loans were at least 90 days past due at the end of last year, up from 2.42 percent the previous year.
Non-performing loans within the firm's portfolio totaled $216.5 billion at year-end, compared with $198.3 billion in the prior quarter and $119.2 billion in 2008.
DSNews.com reports Fannie Mae did point to one bright spot in its delinquency figures, noting the number of loans turning seriously delinquent stabilized in fourth quarter 2009.
The company also said its loss severities, which represent the unpaid principal balances of loans that Fannie Mae believes, will not be recovered, improved in the fourth quarter due to stabilizing home prices.
In addition, Fannie Mae said while it expects credit-related expenses to remain high in the near term due to high unemployment and negative equity prompting many borrowers to default, the company predicts that credit-related expenses in 2010 will be lower than in 2009, DSNews.com reports.
Fannie Mae says it is also working to minimize its credit losses by helping borrowers avoid foreclosure.
During 2009, the company completed 200,339 loan workouts and initiated 333,300 trial modifications under the administration's Home Affordable Modification Program (HAMP).
Timothy Geithner
The government's plan for the GSEs is still unknown, and Treasury Secretary Timothy Geithner says not to expect a new blueprint for the two mortgage companies until 2011, according to DSNews.com.
Members of the House are criticizing the administration for the delay, and are urging their Committee on Oversight and Government Reform to hold a public hearing to investigate the bailout of Fannie Mae and Freddie Mac.
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