11 May 2010

More federal funding needed by Fannie Mae

3:33 pm on 11 May 2010

US mortgage finance firm Fannie Mae has asked for another $US8.4 billion in federal aid after announcing further big losses.

The agency lost more than $US13 billion in the first three months of the year as it continues to suffer the effects of the financial crisis.

That is than the $US16.3 billion reported last quarter, but Fannie Mae says the continued fragility of the US economy and mortgage market means it still needs government support.

Since taking control of Fannie May in 2008, the US government has contributed $US84 billion to it.

Fannie Mae says it sees no end in sight for federal financial assistance, as the housing market remains fragile.