Fannie Mae said on Thursday it would draw another $15bn of funds from the US Treasury after reporting a ninth consecutive quarterly loss, of $19.8bn in the third quarter, driving its net worth below zero. The loss was due mainly to $22bn of credit expenses as the state-owned US mortgage giant built its loss reserves against mounting mortgage defaults. Fannie also incurred losses from modifying the terms of mortgages for struggling borrowers under the government’s housing market rescue plan. More details on FT Alphaville.

This entry was posted by Gwen Robinson on Friday, November 6th, 2009 at 4:48 and is filed under Capital markets. Tagged with Fannie Mae. Edit this entry.