Fannie Loses $16.3 Billion and Asks Treasury for Aid

Fannie Mae, the nation’s largest provider of residential mortgage funds, reported a loss of $16.3 billion for the fourth quarter on Friday and said it had requested $15.3 billion from the Treasury to maintain a positive net worth.

The government-controlled company said it would need additional taxpayer funds in the future to continue operations.

Fannie Mae said rising defaults kept credit-related expenses elevated at $11.9 billion, though expenses were almost half the third-quarter level of $22.0 billion.

Fannie Mae’s quarterly loss was $15.2 billion before a $1.2 billion dividend payment on senior preferred stock owned by the Treasury, putting total 2009 losses at $74.4 billion, compared with $59.8 billion in 2008.

Serious delinquencies on mortgages guaranteed by Fannie Mae on single-family homes rose to 5.38 percent as of Dec. 31, compared with 4.72 percent on Sept. 30, and 2.42 percent at the end of 2008.