Fannie Mae 1Q loss $8.7 billion

by reggielal on May 11, 2011

Fannie Mae reported net loss of $8.7 billion in the first quarter, including a $2.2 billion dividend payment to theTreasury Department. The loss narrowed from $13 billion one year ago.

Fannie said still falling home prices drove losses during the quarter. The government-sponsored enterprise estimated home prices fell 1.8% during the quarter, even though some regions experienced gains.

The mortgage giant’s regulator the Federal Housing Finance Agency requested $8.5 billion from the Treasury to eliminate Fannie’s net worth deficit. Fannie now owes the Treasury $99.7 billion and so far paid $12.4 billion in dividends.

Can you say – “More Bail out” Please !

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