Chillin' out till it needs to be funded
Fannie Mae said Monday that it might need more than the $100 billion that the Treasury said it was willing to invest in the giant mortgage company to help it stay in business.
“If we continue to experience substantial losses in future periods or to the extent that we experience a liquidity crisis that prevents us from accessing the unsecured debt markets, this commitment may not be sufficient to keep us in solvent condition or from being placed into receivership,” Fannie Mae said in a filing with the Securities and Exchange Commission.
Fannie Mae reported earlier Monday that it lost $29 billion in the third quarter. It said the number of loans in its portfolio that were in foreclosure or delinquent by more than three months had jumped to 1.72 percent in September.