Fannie Mae looking for More Government Assistance
August 10, 2010
Author: Support Services, e-PRO
The $1.2 billion loss shown on the Financial statement of mortgage giant, Fannie Mae during the 2nd quarter is the smallest loss shown since the September of 2008! The quarter before showed a $11.8 billion loss! Although the financial condition of the government run company is improving, $1.5 billion in government assistance was still requested by the company. To date Fannie Mae has borrowed $85 billion from the Treasury Department at a hefty interest rate.
The company claims to still be suffering from credit losses from home loans that were issued between 2005-2008. According to Mike Williams, CEO of Fannie Mae, "We are focused on sustainable homeownership, and our higher underwriting and eligibility standards reflect that, across our industry, we are seeing a more realistic approach to housing and lending that bodes well for the future."