Fannie seeks $15bn in aid after 3Q loss; plans to sell Tax Credits

Beleaguered mortgage lender Fannie Mae said on Thursday that it would draw additional $15 billion in taxpayer funds as it had to suffer a net loss of $18.9 billion in the third quarter.

Fannie Mae said at the end of the third quarter the difference between assets and liabilities, was negative $15 billion and as a result of that it had to turn to the Treasury Department for aid to keep itself operating.

The mortgage lender said in a statement, “We are dependent on the continued support of Treasury in order to continue operating our business.”

Fannie Mae has also planned to sell around $2.6 billion in unused low-income-housing tax credits and is waiting US Treasury’s approval for the transaction.

Fannie Mae has already received $44.9 billion in federal aid since April as it is one of the lenders hit hard by recession. 

In the recent NYSE composite trading, shares in Fannie Mae closed at $1.12 as compared with its peak $87.81 in December 2000.