Fannie Mae took a loss of $1.3 billion for the third quarter, up slightly from $1.2 billion in the prior quarter as credit losses increased but revenue was higher.
The bankrupt government-sponsored enterprise will need $2.5 billion in Treasury Department assistance to remain afloat—$1 billion more than it needed in the second quarter.
The third-quarter report shows the GSE's single-family business incurred a loss of $5.5 billion due primarily to credit-related losses of $5.6 billion—almost all of which are attributable to alternative-A credit and other loans purchased or guaranteed from 2005 through 2008.
Single-family losses in the second quarter totaled $5.1 billion.
Net revenue hit $5.1 billion for the company, which is in conservatorship, up 12.8% from the second quarter.
"Our operating results reflect our ongoing efforts to manage the credit-related expenses in our legacy business and build a new profitable book of business," said Fannie president and chief executive Michael Williams.
Fannie said it completed 113,000 loan modifications and other workout plans during the third quarter, along with 21,000 short sales and deeds-in-lieu of foreclosures.
At the same time, the GSE foreclosed on 85,400 defaulted mortgages—up by 24% in the second quarter.
Fannie currently has an REO inventory 166,800 single-family houses.
