Fannie Mae (FNM), In Trouble Again, Begs For $15 Billion

Fannie Mae (NYSE:FNM) recorded a net loss of $18.9 billion for the third quarter of 2009. Including $883 million in dividends on the senior preferred stock, the net loss attributable to common stockholders was $19.8 billion, or $3.47 per diluted share.

For the third quarter of 2008, the net loss was $29.0 billion, and the net loss attributable to common stockholders was $29.4 billion, or $13.00 per diluted share.

The company’s 10-Q said that its serious delinquency rate was 4.72% in the quarter compared to 1.72% in the period a year ago.

The 10-Q said “When Treasury provides the additional $15.0 billion FHFA has already requested on our behalf, the aggregate liquidation preference on the senior preferred stock will be $60.9 billion and will require an annualized dividend of $6.1 billion.This dividend obligation exceeds our reported annual net income for five of the past seven years and will contribute to increasingly negative cash flows in future periods if we continue to pay the dividends in cash.”

FNM shares are down 7% after hours to $1.04. Freddie Mac (NYSE:FRE) is also off 6%.

Douglas A. McIntyre