As we all know, 2009 was a year of complete devastation for the housing market as many banks were shut down while others posted major losses throughout the year.
Last week, two of America’s largest mortgage institutions announced a multi-billion dollar loss during the fourth quarter of last year.
Freddi`ac announced a loss of almost $8 billion loss, while it’s bigger brother Fannie Mae posted a loss of more than $16 billion in the fourth quarter of 2009.
However, even with the huge loss Freddie Mac said there is no need for additional funds from the government at this time. But on the other hand, Fannie Mae, the absolute largest residential mortgage provider in the US, is requesting $15.3 billion more from the United States Treasury to recoup last year’s losses.
For the entire year of 2009 Fannie Mae posted a loss of $74.4 billion, compared to 2008 when they posted a loss of $59.8 billion. The last three months marks the tenth straight month in a row of quarterly losses for the institution.
Fannie Mae and Freddie Mac have both been under tight watch by the US government since they were rescued back in 2008, and President Obama is said to be soon announcing a long-term plan for both firms.
My name is Maurice “Moe” Bedard. I am the founder of America’s #1 Mortgage Forum, LoanSafe.org. My online work has been featured in the New York Times, LA Times, Fox Business, and many other media publications.