Fannie Mae Need More Funds from Taxpayers

Washington, DC, Aug. 8, 2011 -- Fannie Mae said it needs an additional $5.1 billion from the government due to continued losses on loans made before to 2009.

Fannie Mae, the largest U.S. residential mortgage funds provider, forecast continued weakness ahead, with high unemployment and foreclosures expected to depress home prices.

The mortgage firm said its second-quarter loss "reflects the continued weakness in the housing and mortgage markets, which remain under pressure from high levels of unemployment, underemployment and the prolonged decline in home prices since their peak in the third quarter of 2006."