Fannie Mae Reports a Net Loss of $6.5 Billion for the First Quarter
| Date Published | 5/13/2011 |
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On May, 6, 2011, Fannie Mae reported a net loss of $6.5 billion for the first
quarter. It has posted losses for 14 out of the last 15 quarters. Fannie’s loss was related to the increase in
loan-loss reserves after it revised down its homeprice forecast for 2011 and
took bigger-than-expected losses on the sale of foreclosed properties. Fannie has around $206 billion in delinquent
loans on its books.
Fannie announced that it would ask the US government for a
fresh infusion of capital of $6.2 billion after paying dividends to the
Treasury.
The government has so far provided 86 billion to Fannie (and
$52 billion to /Freddie Mac). It receives preferred shares that pay a 10%
dividend.