WASHINGTON - Fannie Mae , the biggest source of money for U.S. home loans, on Tuesday reported a $5.1 billion third-quarter loss and said it would seek $7.8 billion in additional federal aid to stay afloat.
Fannie Mae, which was seized by the government in September 2008, said the loss was attributed to continued weakness in the housing market and credit-related expenses on home loans made prior to the 2008 financial collapse. In the year-earlier quarter it had a loss of a $1.3 billion.
Fannie Mae has drawn $112.6 billion in bailout funds from the Treasury Department since 2008 and has paid $17.2 billion to the government in the form of dividends.
Fannie Mae and its smaller rival Freddie Mac were seized by the government as losses on subprime mortgages threatened insolvency. The government has pledged unlimited funds to keep the firms afloat through the end of 2012.
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