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Financial Planning News, Government Loans Needed

Written By: admin on January 27, 2009 No Comment

Fannie Mae Need Another Financial Aid

Monday, January 26, 2009. Another Government Loans needed to help mortgage company. Mortgage finance company Fannie Mae says it’s likely to need up to $16 billion from the government as conditions in the U.S. housing market continue to deteriorate.

Fannie Mae’s need for $11 billion to $16 billion in taxpayer aid comes after sibling company Freddie Mac told last week that it’s likely to need 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, is still preparing its fourth-quarter financial statements and says the actual amount needed “may differ materially from this estimate.”

Fannie and Freddie were seized by federal regulators last fall. An agreement with the Treasury Department allows the government to invest up to $100 billion in each company.