| Fannie Mae could need $16B from government (AP) and Fannie, Freddie may tap U.S. Treasury for $51 bln (Reuters) |
| News - Financial News |
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--(www.FinancialNewsUSA.com)-- 01/28/2009 - Mortgage Investment industry news provided by Financial News USA. WASHINGTON (AP) -- Mortgage finance company Fannie Mae said Monday that it likely needs up to $16 billion from the government as conditions in the U.S. housing market continue to deteriorate.Fannie Mae's disclosure that it expects an injection of $11 billion to $16 billion in taxpayer aid comes after sibling company Freddie Mac disclosed last week that it's likely to require as much as $35 billion in federal support on top of the $13.8 billion it received last year. Fannie, which has yet to receive any government aid, said in a Securities and Exchange Commission filing that the actual amount needed "may differ materially from this estimate" because its fourth-quarter financial statements are still being prepared.Washington-based Fannie and McLean, Virginia-based Freddie were seized by federal regulators last fall after facing mounting losses on loans they backed during the housing boom. [Read the full article] By Al Yoon NEW YORK (Reuters) - Fannie Mae and Freddie Mac could tap the government for up to $51 billion in coming weeks, exceeding some Wall Street estimates, so they can continue to operate as the largest providers of funding for U.S. residential mortgages. The storm of rising delinquencies and falling securities values that led to the government's seizure of the companies in September accelerated in the last quarter, requiring Fannie Mae and Freddie Mac to seek more of the stop-gap measures organized by the U.S. Treasury and their regulator. Analysts predicted more capital needs from Treasury through 2009.Fresh losses in the most recent quarter will probably be the harshest on Freddie Mac, which holds a larger portfolio of risky mortgage securities, including subprime bonds. [Read the full article] About Financial News USA Financial News USA is a Next Generation Financial Communications firm focused on the distribution of market moving news. Financial News USA has developed leading edge e-publishing tools including programming proprietary RSS feeds and enabling open source press release publishing across its network. Financial News USA has been aggressively expanding its news distribution network by targeting direct feeds to financial news and data providers such as FinancialContent, Yahoo (NASDAQ: YHOO), among others. Financial News USA offers a free news feed available online (www.financialnewsusa.com) to websites and financial services looking for content and for individual investors looking to stay informed on the financial markets. Financial News USA and its affiliates charge each client cash for news distribution and may take an equity position in the companies mentioned herein, please visit the disclaimer at www.financialnewsusa.com. 
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