The housing market crisis of 2007-2008 continues to bleed money from the U.S. Treasury as mortgage giant Fannie Mae (the Federal National Mortgage Association) takes another bailout from Washington.

 

The government-controlled firm needed another $7.8 billion in federal assistance to stay afloat after it sustained $5.1 billion in losses during the third quarter. Last week, Fannie’s smaller brother, Freddie Mac (the Federal Home Loan Mortgage Corporation), asked for an extra $6 billion in aid.

 

To date, Fannie Mae has received more than $112 billion from the federal government. Along with Freddie Mac, the total bailout so far has reached $169 billion, and it may eventually total $193 billion by the end of 2014.

 

Meanwhile, lawmakers in Congress are unhappy over the news that the executives running Fannie and Freddie earned nearly $13 million in cash awards at the start of this year. Edward DeMarco, acting director of the Federal Housing Finance Agency, which oversees the two companies, told Congress the compensation was necessary in order to retain top talent.

-Noel Brinkerhoff

 

Fannie Mae Taps $7.8 Billion from Treasury, Loss Widens (by Margaret Chadbourn, Reuters)

Fannie Mae Asks Taxpayers for Another Bailout (by Derek Kravitz, Associated Press)

Regulator: Executive Pay at Fannie, Freddie Is Sensible, Necessary (by Alan Zibel, Wall Street Journal)

Taxpayers Spent $132 Million to Defend Fannie Mae and Its Executives (by Noel Brinkerhoff and David Wallechinsky, AllGov)