WASHINGTON — Fannie Mae on Monday posted a $29 billion loss in the third quarter as it took a massive tax-related charge, and said it may have to tap the government’s $100 billion lifeline in the coming months.
The mortgage-finance company, seized by federal regulators more than two months ago, posted a loss of $13 per share for the July-September quarter, mainly because of a $21.4 billion noncash charge to reduce the value of tax assets. That compares with a loss of $1.4 billion, or $1.56 a share, in the year-ago period.
Analysts surveyed by Thomson Reuters had expected a loss of $1.60 per share.
Washington-based Fannie Mae’s net worth — the value of its assets minus the value of its liabilities — fell to $9.4 billion at the end of September, down from $44.1 billion at the end of last year. If that number turns negative, Fannie Mae would be forced to obtain funding from the Treasury Department.
The ultimate bill for taxpayers remains unclear. Jim Vogel, a debt analyst with FTN Financial in Memphis, Tenn., said total aid for Fannie and its sibling company Freddie Mac is unlikely to exceed the $200 billion initially pledged by the government.
Despite worsening housing- market conditions, Fannie Mae is “still setting aside way more for future losses than they’re absorbing today,” Vogel said.
Others aren’t so sure. Barclays Capital analyst Rajiv Setia said the government’s arrangement with Fannie and Freddie “may need to be amended” next year. Many analysts consider Freddie Mac, which is expected to report earnings later this week, to be in worse financial shape.
