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Fannie Mae seeks $15.3 billion in bailout money

Fannie Mae, the country’s largest mortgage financier, says it needs another $15.3 billion to tide over the current housing crisis. The company posted a staggering loss of over $ 70 billion in 2009 compared to $ 58.8 billion losses in 2008. Fannie’s losses were mainly on account of $11.9 billion in credit expenses, which included bad loans and costs incurred in maintaining foreclosed properties. The company also took a $5 billion write-down on low-income tax-credit investments. About 5.38% of Fannie’s single-family loans were more than 90 days delinquent, up from 2.42% a year earlier. Total nonperforming loans of the company were $216.5 billion at year-end, compared with $119.2 billion in the prior year-end. Fannie has so far received over $ 60 billion in bailout money. While the company expects to see an improvement in its performance this year, losses are likely to continue through 2010. Fannie and Freddie Mac have played a key role in implementing the Obama administrati on’s initiatives to stem the rising tide of foreclosures. Michael Williams, Chief Executive of Fannie Mae, said foreclosure prevention was a top priority. “Our overriding objective is keeping people in their homes whenever possible.”