FANNIE MAE -- Requests Another $15B From Govt

Fannie Mae 3Q Loss Narrows; Requests Another $15B From Govt

Fannie Mae (FNM) posted a narrower third-quarter loss but reported $22 billion of credit-loss provisions and foreclosed-property costs as it continues to deal with spiking delinquency rates.
The mortgage financier, placed under conservatorship 14 months ago to prevent its potential implosion, requested another $15 billion of aid as part of the $200 billion package extended to it. Fannie has received $44.9 billion so far.
The company admitted in its quarterly report, filed late Thursday with the Securities and Exchange Commission, that it will likely need more money from the Treasury Department in the future and reiterated "we are dependent on the continued support of Treasury in order to continue operating our business."
Fannie shares fell 5 cents to $1.07. The stock through the close was up 47% this year.
Loss reserves jumped 20% during the quarter to $64.72 billion; the prior-year figure was $15.53 billion.
The serious delinquency rate--loans at least three months past due or awaiting foreclosure--rose to 4.72% from 3.94% in the second quarter and 1.72% a year earlier.
Meanwhile, Fannie's loss narrowed to $18.87 billion, or $3.47 a share, from $28.99 billion, or $13 a share, a year earlier. The prior year had a $21.4 billion charge to write down the value of potential offsets to future income taxes.
Revenue jumped 47% to $5.95 billion.
To deal with souring loans, the company said it modified 56,816 loans, nearly double the second-quarter figure. Meanwhile, foreclosed-property acquisitions more than doubled to 98,428.
Looking ahead, Fannie trimmed its 2009 home-price drop forecast to 6% from 7% to 12%.