Fannie Mae expects $5B charge due to tax credit

Fannie Mae plans to take a $5 billion charge when its reports its fourth quarter results later this week because the government blocked its plan to sell tax credits.

The Treasury Department last year prevented the mortgage giant from selling about half of its low-income housing tax credits worth about $2.6 billion to investors including Goldman Sachs Group Inc.

Fannie Mae said in a regulatory filing Wednesday that change would cause it to ask for more money from the government, which has already provided $61 billion to keep the company afloat. Read the full article]

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From March 1, dealers will have to report trades of mortgage-backed securities sold by government-backed mortgage agencies Fannie Mae and Freddie Mac, of which there are between 15,000 and 18,000.

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From March 1, dealers will have to report trades of mortgage-backed securities sold by government-backed mortgage agencies Fannie Mae and Freddie Mac, of which there are between 15,000 and 18,000.

You have viewed your allowance of free articles. If you wish to view more, click the button below. [Read the full article]

Freddie Mac lost almost $26 billion last year, ominous news for taxpayers who are footing the bill to rescue the mortgage finance company and its sibling Fannie Mae.

Freddie Mac, which has lost a total of almost $80 billion since the housing crisis started in 2007, is bracing for more pain. The McLean, Va.-based company said a record 4 percent of its borrowers are at least three months behind on their payments and facing foreclosure.

Its chief executive, Charles Haldeman, warned Wednesday of a “potential large wave of foreclosures” still to come.

This is a major problem for the federal government, which seized control of Freddie and Fannie in September 2008. The two companies have already siphoned $111 billion from the government to stay afloat. That number is expected to hit $188 billion by fall 2011. [Read the full article]

LOSSES CONTINUE: Mortgage finance company Freddie Mac said Wednesday that it lost $7.8 billion, or $2.39 a share, in the fourth quarter of last year. That was down from $23.9 billion, or $7.37 a share, in the same quarter a year ago.

UNCLE SAM DODGES A BULLET: Freddie Mac has already received $51 billion in taxpayer aid since it nearly collapsed in September 2008. But it didn’t need more money this time.

TROUBLE AHEAD: Freddie Mac’s chief executive, Charles Haldeman, warned of a “potential large wave of foreclosures” still to come.

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Quotes and other information supplied by independent providers identified on the Yahoo! Finance partner page. Quotes are updated automatically, but will be turned off after 25 minutes of inactivity. [Read the full article]

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