Interest Rate Roundup: Fannie Mae asked $19 Billion in Treasury Capital

With the Interest Rate Roundup, U.S. giant mortgage finance company Freddie Mac once again urge the Government to provide 19 billion U.S. relief dollars funds.

Freddie Mac and Fannie Mae is the US largest two mortgage refinancing agencies, with the total  about 5.5 trillion  mortgage loans in U.S. accounting for nearly half of the total U.S. home mortgages. in September last year, The U.S. government took over the two troubled agencies because of the real estate market bubble burst. has injected about 60 billion U.S. dollars so far. Freddie Mac also get the government 15 billion U.S. dollars relief funds in March this year. 

Freddie Mac said in a routine application,  as the U.S. unemployment rate continues to rise, housing prices down, the risk of further deterioration of the situation of mortgage loans, the company’s long-term financial sustainability of the existence of “deep uncertainty”,  even get more multi-government rescue also might not be sufficient to ensure solvency. 

The Associated Press reported that  the amount of non-performing loans of Freddie Mac has been as high as 145 billion U.S. dollars, which is the last year more than 10 times. Freddie Mac reported the first quarter of this year, the company first quarter net loss of 23.2 billion U.S. dollars. In contrast, a year earlier loss of 2.5 billion U.S. dollars only.

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