Fannie Mae Posts Q4 Loss, Will Seek Additional Gov’t Aid

Washington, D.C., United States (AHN) – Fannie Mae (NYSE: FNM) announced Friday its fourth quarter loss narrowed to $16.8 billion or $2.87 a share, but said it plans to seek aid for a fifth time from the government.

The mortgage firm’s fourth quarter loss compares to a $25.2 billion or $4.47 a share loss incurred the same period a year earlier.

Fannie Mae, which was taken into conservatorship by regulators in September 2008, reported $11.9 billion in credit losses during the quarter.

The company, and its sibling Freddie Mac, still play a vital role in the nation’s housing market, guaranteeing more than 30 million loans valued at $5.5 trillion. In 2009, Fannie Mae said it provided homeowner assistance for more than 3 million borrowers.

“Through this prolonged stress in the housing market, we are helping homeowners across the country, supporting affordable housing, and providing financing to keep the residential markets functioning,” said Fannie Mae President and CEO Mike Williams.

For the full year, Fannie Mae suffered losses topping $74 billion or roughly $13 a share. Those losses include $2.5 billion payout to the government for dividends on the preferred shares it holds.

Fannie Mae said it will seek $15.3 billion in additional funds from the U.S. government. The firm has already received $59.9 billion in aid.

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