Fannie Mae made a net loss of USD 14.8 billion in the second quarter of the year, the US mortgage provider has revealed.
As a result, it has been forced to seek further funding from the US Treasury, submitting a request to borrow USD 10.7 billion by the end of September.
However, the result is an improvement on that recorded during the same period in 2008, when the firm made a loss of USD 23.2 billion.
Fannie Mae said in a statement that its performance had been partially affected by the recession and rising unemployment in the US.
“Second-quarter results were driven primarily by USD 18.8 billion of credit-related expenses, reflecting the ongoing impact of adverse conditions in the housing market,” it added.
Following the announcement, shares in the mortgage provider dropped by over 12% in after-hours trading on Wall Street, falling to 69c.
Fannie Mae, along with rival Freddie Mac, recently received joint assistance from the US Treasury and the Federal Reserve.
D.C.