$15 Billion more to Fannie Mae = Total of $110Billion, so far for Fannie and Freddie

Happy Holidays everyone…Fannie Mae are getting an extra $15Billion in errr ‘bailout’ money from the taxpayers.

Last week the Treasury Dept said it was going to pump a extra $15Billion into Fannie Mae.

That brings Fannie’s total bailout to $59.9 billion [2]; together with its sibling Freddie Mac, the toll has risen to $110.6 billion

Fannie lost $18.9 billion in the third quarter and $56.8 billion for the year so far. The company offered a couple of explanations for its continued downward spiral. First and foremost is simply the deterioration of the housing market: Fannie owns or guarantees nearly $3 trillion in mortgages, and borrowers continue to default in rising numbers. But Fannie also said its losses stem from its efforts, as an arm of the government, to modify mortgages for struggling borrowers.

Those costs will only go up in the future, since the government’s foreclosure prevention [5] program still hasn’t resulted in many permanent modifications [6]. Fannie expects to lose money through the program in a number of different ways. First, Fannie will take a loss when mortgages are modified to lower amounts. But Fannie will also be responsible for paying incentive fees (mostly to mortgage servicers) for completed modifications.

Fannie and Freddie’s bailout funds don’t come from the $700 billion TARP, but rather via a housing bill passed in July 2008 [8]. (We track both in our bailout database [4].) Treasury Secretary Tim Geithner has said that Fannie and Freddie could get as much as $200 billion each.

DAYUM!!!!

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