Fannie Mae posts $18.9 billion Q3 loss, taps Treasury
On 5:18 pm EST, Thursday November 5, 2009

Companies:Fannie Mae
NEW YORK (Reuters) - Fannie Mae, the largest provider of funding for U.S. home loans, on Thursday said it would again tap the Treasury to plug a net worth deficit after bad mortgages and foreclosure prevention efforts resulted in a $18.9 billion net loss in the third quarter.

Shares of Fannie Mae tumbled 7.1 percent after it reported results in extended after-hours trade.

Fannie Mae (Pacific:FNM - News; Pacific:FNM - News) , which was seized by the government last year, said the quarterly loss stemmed from $22 billion in credit-related expenses, including charges on impaired loans it bought from mortgage-backed securities as it modified loans under President Barack Obama's foreclosure prevention plan.

The company also boosted its provision for credit losses in future quarters.

Fannie's regulator will request $15 billion from the Treasury under a senior preferred stock agreement, which will increase the total government support to $60.9 billion.