Page last updated at 14:11 GMT, Friday, 8 May 2009 15:11 UK

Fannie Mae asks Treasury for aid

Fannie Mae building
Fannie Mae has a key role in the US housing sector

US mortgage finance firm Fannie Mae has asked the Treasury for another $19bn (£12.6bn), as it announced a loss for the first three months of 2009.

It is the second time that Fannie Mae has requested government aid in recent months. It received $15.2bn in March.

The Treasury has made available funds of $200bn each to Fannie Mae and fellow mortgage giant Freddie Mac.

Fannie Mae reported a loss of $23.2bn, but it was smaller than the $25.2bn loss it made in the previous quarter.

The firm said the loss was driven by credit-related expenses of $20.9bn.

It also took a $5.7bn loss on mortgage securities.

"Persistent deterioration in housing, mortgage, financial and credit markets continued to adversely affect our financial results," the company said.

Fannie Mae and Freddie Mac buy mortgages from approved lenders then sell them to investors. Together they underwrite more than half of all US mortgages.

Freddie asked the Treasury for another $31bn in March after receiving $13.8bn in aid last year.

Fannie Mae has asked the Treasury to provide the latest tranche on or before 30 June.



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